How do you deliver a construction project?

Who is Involved in the Process?

The project delivery system involves the following key actors:

1. Project Owner. They are the ones who commission and fund—directly or indirectly—a construction project. They also have the final say in choosing a contractor, delivery method, and other important decisions.
2. Designer. Typically an architect or an engineer, they are the primary figure in the design process. They plan the design and look after the construction of the building.
3. Contractor. They take care of the daily operations on the construction site. They also hire subcontractors for specific tasks.
4. Construction Project Manager. They function as a consultant for the project owner. They manage the schedule and budget for the entire project on behalf of the owner.

Project Delivery Phases

Whether it involves a small-scale facility or a large-scale residential subdivision, every project goes through four phases. Here’s a walkthrough of the stages in delivering a construction project.

Planning

Every successful project starts with a solid plan. This project delivery phase involves developing and organizing a strategy for carrying out the project. In this phase, the owner also decides on how the project will proceed from beginning to end.
A comprehensive project plan includes the following elements:

• Goals and objectives
• Project scope
• Stakeholder analysis
• Work plan and breakdown structure
• Communications and reporting structure
• Schedule plan and management
• Risk assessment and management

Design

Once the plan is complete, the process moves to the design phase. The design team develops the blueprint and foundations according to the objectives and requirements of the project. They also present their business case, which includes the following aspects:

• Design specifications (drawings, exhibits, etc.)
• Deliverables (technical, project management, etc.)
• Estimated budget and timetable

Implementation

After the design phase, the project is on its way toward completion. In other words, the implementation phase is where the bulk of the work occurs.

Construction and monitoring often take place during this phase. The contractors work on the job site and realize the design provided in the previous phase. The pace of implementation will depend on different factors, such as the project goals, timetable, and any changes that the owner requires. Project teams can efficiently carry out their tasks and complete their deliverables using a project execution plan template.

Delivery Close-Out

Project delivery doesn’t end when the facility is built or when remodeling or renovation work is finished. This is where the close-out phase or project closure comes in, as the culmination of the entire process. This phase wraps up all the tasks and activities related to project delivery, such as the following:

• Assessing performance against the goals and objects in the planning phase
• Accomplishing all administrative requirements
• Evaluating the performance of project teams
• Taking note of the lessons learned throughout the process

5 Project Delivery Methods

Design-Bid-Build (DBB)

The design-bid-build model is the most popular method of project delivery. In this method, the owner hires a designer and a contractor separately. It follows a traditional sequence, and the roles don’t overlap. Here’s an overview of the process:

1. The designer creates the drawings and specifications according to the goals and vision of the owner.
2. Once the design is complete, the project is open for bidding. General contractors submit their bids, and the owner selects the best one in the bidding pool.
3. The selected contractor starts working on the project.

Pros: This method provides owners with more control over the project. It’s also simpler to manage because it’s a method familiar to most designers and contractors. Moreover, the competitive bidding process lets owners secure the lowest price and save money.

Cons: It takes a lot of time because one phase needs to be complete before proceeding to the next one. For example, construction only starts when the design is finalized. Moreover, there’s little collaboration between the designer and the contractor.

Best for: This method works best for less complex, budget-sensitive projects.

Design-Build (DB)

The design-build has become a popular alternative to the traditional DBB process. Instead of having a separate designer and contractor, this method combines both functions in one called the design-builder. It reduces the lengthy time frame from the traditional method, making it great for fast-tracking projects.

Pros: The process becomes more efficient since only one team handles the design and construction phases. The turnaround time becomes shorter too, resulting in less cost and minimal risk.

Cons: There’s less control from the owner, as contractors make the most decisions in designing and building the project. The challenge for owners, in this case, is selecting the right firm to do the job.

Best for: This method is ideal for time-sensitive projects that require an accelerated timeline.

Construction Manager-at-Risk (CMR)

This method resembles the DBB model but with a stark difference. In the CMR model, the owner hires a Construction Manager (CM) to oversee the entire project and help meet their goals. This method is ideal for those who want the help of a professional with specific expertise in completing projects.

In this method, the owner provides the initial design and leaves the management details to the CM. For the rest of the process, the CM is responsible for:

• Consulting designers for their design plans
• Creating the process timeline
• Calculating the Greatest Maximum Price (GMP)
• Tracking the budget and not exceeding the GMP
• Selecting contractors that meet the owner’s needs
• Overseeing the quality of work during construction
• Coordinating any changes required by the owner

Pros: By setting a maximum fixed price, this method helps lower construction costs. Moreover, owners can utilize the expertise of a construction manager in selecting the most efficient means and delivering projects with fewer costs and better quality.

Cons: If the costs go beyond the set threshold, the construction manager must shoulder them, leading to lower profits on their side. Moreover, any disagreement between the CM and the owner can delay schedules.

Best for: This method works best for projects with limited management resources.

Multi-Prime (MP)

This method stands out from the rest, for the owner functions as the general contractor. They contract directly with the firms for the design and construction phases. For example, owners will reach out to an architecture firm for designing the project and to specialty contractors for specific needs.

Pros: Experienced project owners can exercise greater control over the budget. They handle the budget, timeline, and other aspects of the entire project. They can also cut costs by procuring materials directly from suppliers.

Cons: The owner becomes solely responsible for coordinating multiple contractors at once. Poor coordination can then cause delays in schedule and cost valuable resources.

Best for: This method is best for speeding up operations in times of emergency.

Integrated Project Delivery (IPD)

The integrated project delivery method places collaboration and teamwork at the heart of its operations. This emerging method integrates the functions of designers, contractors, and other team members in optimizing project delivery.

Instead of working separately, the team joins forces even in the early stages of the process. Each of them plays a role in the entire process, from design to construction. Everything is shared across all teams—from information and responsibilities to liabilities and accomplishments.

Pros: This method streamlines the delivery process by coordinating all teams throughout the process. It also improves efficiency when combined with the Lean method and other tools. Moreover, it maximizes the expertise of the team members in planning and management.

Cons: The owner needs to engage with everyone involved in the project. It also requires rigorous metrics for design, engineering, costs, and other factors. Since it’s a relatively new method, not all stakeholders are familiar with this.

Best for: This method works best for complex projects that require coordination among different stakeholders.

How to Choose the Right Method

Selecting a project delivery method is crucial for the success of any project. After all, it will set the tone for how the process will go for the entire team.

Thus, project owners need to carefully consider the following aspects when choosing the method that will work best for their project:

• Type. What kind of project does the owner envision?
• Scope. What parameters will the project encompass?
• Budget. How much is the owner willing to spend?
• Timeline. Will the project proceed in a linear or accelerated fashion? Will there be overlaps in the phases?
• Design. What will the final project look like when it’s done? How will it function?
• Risks. What factors can put the stakeholders in danger upon doing the project?
• Owner’s expertise. Does the company have experience in similar projects?
• Owner’s control. How much control does the owner want to have over the project?

Create Your Own Project Delivery Template

Eliminate manual tasks and streamline your operations.

Challenges in Carrying Out Projects

Delivering projects is anything but easy. Project owners can rise to the challenge by anticipating any issues and proactively thinking of solutions. Here are the most common challenges in project delivery and ways to resolve them:

• Delays in the schedule. Keep track of the progress on a single platform. Report problems immediately to adjust the time as needed.
• Budget constraints. Make an accurate estimate of costs using analytics from previous projects. Monitor expenses in one platform to make sure all spending is within budget.
• Labor inefficiencies. Create a clear, defined work plan and a technical-use specifications document in the first phase. Enforce these protocols with the help of digital, easy-to-use checklists from SafetyCulture (formerly iAuditor).
• Abrupt changes during construction. Make sure the project delivery plan is flexible enough to accommodate changes.
• Lack of collaboration among stakeholders. Establish a clear communication line between project managers, designers, and contractors.

Deliver Projects on Time with SafetyCulture

Use SafetyCulture to improve your project delivery system. It combines the tools you need to complete your projects safely on one platform. Meet your project delivery goals and objectives with the following SafetyCulture features:

• Select and customize checklists from the Public Library.
• Designate roles and responsibilities for each job to foster accountability and train workers effectively.
• Streamline project workflows by conducting inspections.
• Act on hazards during the construction phase by raising actions.
• Generate custom reports in Web, PDF, or Word format instantly.
• Find all the information you need in a centralized cloud-based dashboard.
• Utilize the power of data to spot and fix weaknesses in the earlier phases.
• Collaborate with teams on-site using Heads Up.
• Ensure safe and efficient asset management in your organization for timely project delivery.

August 30, 2023

Undertaking a construction project is a complex endeavor that requires careful planning, strategic decision-making, and effective execution. One of the critical decisions in the early stages of a construction project is selecting the most suitable project delivery method. The project delivery method plays a pivotal role in determining how the project will be organized, managed, and executed. This article aims to provide a comprehensive guide to choosing the best construction project delivery method, considering various factors and options available to project owners and stakeholders.

Understanding Project Delivery Methods:

Project delivery methods are frameworks that define the roles, responsibilities, and relationships among the key parties involved in a construction project. They influence the project’s timeline, budget, risk allocation, and overall success. There are several project delivery methods to choose from, each with its own advantages and disadvantages. The four primary categories of project delivery methods are:

1. Design-Bid-Build (DBB): In this method, the project is divided into separate phases – design, bidding, and construction. The owner first hires an architect or designer to create project plans, which are then put out to bid. Contractors submit bids, and the lowest qualified bidder is awarded the contract.
2. Design-Build (DB): Here, the design and construction phases are combined into a single contract. The owner hires a design-build team, usually consisting of a design firm and a construction company, to handle the entire project from inception to completion.
3. Construction Manager at Risk (CMAR): The owner hires a construction manager during the design phase to provide input on constructability, cost estimation, and scheduling. The construction manager then takes on the role of the general contractor during the construction phase, assuming responsibility for project delivery and managing risks.
4. Integrated Project Delivery (IPD): IPD is a collaborative approach that involves all key stakeholders – owner, architect, contractors, and suppliers – working together from the early design stages to project completion. This method promotes open communication, shared risk, and joint decision-making.

Factors to Consider When Choosing a Method:

Selecting the best project delivery method requires a thorough evaluation of various factors to align with the project’s goals, complexities, and constraints:

1. Project Complexity: The complexity of the project, including design intricacies and technical challenges, can influence the choice of method. More complex projects may benefit from collaborative methods like Design-Build or IPD.
2. Budget and Cost Control: Different methods have varying cost implications. Design-Bid-Build can lead to lower initial costs, but Design-Build and CMAR may offer better cost control due to early contractor involvement.
3. Timeline and Speed: If time is of the essence, methods like Design-Build and CMAR can expedite the construction process due to their overlapping design and construction phases.
4. Risk Allocation: Consider how risks are distributed among the parties involved. Design-Build and CMAR methods allow for risk sharing between the owner and the contractor, while DBB places more risk on the contractor.
5. Quality Control: Methods that promote collaboration and early involvement of contractors can lead to better quality control and fewer change orders.
6. Owner’s Involvement: Owner’s Involvement: Some owners prefer a more hands-on approach, while others seek a more streamlined and collaborative process.
7. Experience and Expertise: The familiarity of the project team with a particular method can impact its successful implementation.
8. Legal and Regulatory Considerations: Different delivery methods may have varying legal and contractual requirements.

Conclusion:

Choosing the best construction project delivery method is a critical decision that directly impacts the project’s success. Each method has its own merits and challenges, and the optimal choice depends on the project’s unique characteristics and goals. By thoroughly evaluating factors such as project complexity, budget, timeline, risk allocation, and stakeholder preferences, project owners and stakeholders can make informed decisions that lead to efficient, cost-effective, and successful construction projects. Whether opting for a traditional approach like Design-Bid-Build or embracing more collaborative methods like Design-Build or Integrated Project Delivery, a well-chosen project delivery method sets the stage for a smoother and more successful construction journey.

AIA Contract Documents has provided this article for general informational purposes only. The information provided is not legal opinion or legal advice and does not create an attorney-client relationship of any kind. This article is also not intended to provide guidance as to how project parties should interpret their specific contracts or resolve contract disputes, as those decisions will need to be made in consultation with legal counsel, insurance counsel, and other professionals, and based upon a multitude of factors.