Choosing The Best Delivery Method For Your Project
An Owner embarking on a construction project must make an important decision regarding the method
by which the project is designed and constructed—the project delivery method. This decision has
become more difficult in recent years as several “alternative delivery methods” have been developed to
address weaknesses in the traditional design-bid-build scenario. A method that has gained in
popularity is construction management. This delivery method promises improvements over the
traditional system in terms of cost, project control and reduction in disputes.
Construction Management (CM) is a discipline uniquely tailored to the planning, design and
construction process of capital projects. Indeed, CM has been used successfully by Owners who do not
continuously maintain the staff expertise or numbers necessary to deal with the complex
responsibilities involved in the management of major projects. The following is a discussion of some of
the important points an Owner should consider in choosing a delivery method.
Owner’s Requirements:
An Owner has several areas of concern when embarking on a construction program. The following
highlights some of the key considerations in developing a construction program:
Budget:
The Owner has an obvious need to determine a realistic budget before design to evaluate project
feasibility, to secure financing, and as a tool to choose from among alternative designs or site locations.
Once the budget is determined, the Owner requires that the project be completed at or near the
established figure without excessive overruns.
Design:
Of foremost importance to the Owner is that the desired facilities function as envisioned, that the
design program successfully fulfills the needs of the Owner and users. Therefore, an Owner requires
that its design team be well qualified in the type of facility being designed. In addition, the Owner must
ensure that the Owner’s and users’ program needs are clearly conveyed to the design team. Since the
design of the facility actually must be buildable and properly communicated in order to be useful, the
Owner requires that the design documents are constructible, complete, and coordinated. The
documents should properly incorporate unique features of the site to include subsurface conditions,
interface with adjoining properties, access, and other characteristics.
Schedule:
The Owner has similar needs in the area of scheduling. The date of completion of a new facility can be
critical, either in terms of generating revenue from the facility, or in terms of providing needed
functional space by a particular deadline. Therefore, a realistic assessment of project duration and
sequencing needs to be performed early in the planning process. The schedule should then be monitored
throughout design and construction.
Risk Assessment:
The development of any facility involves many risks. In construction, issues of risk are closely tied to
schedule and budget issues. The Owner requires an understanding of the risks involved in
construction, and should make a conscientious decision regarding allocation of these risks among
project participants, so that all areas of exposure are properly understood. In considering risk
allocation, the Owner should strive to assign risks to those parties that exercise control over those
aspects. For example, it would typically be problematic to require that the contractor correct problems
due to design errors at no extra cost since a contractor generally has little control over the cause or
magnitude of such errors.
Owner’s Level of Expertise:
The Owner’s familiarity with the building process and level of in-house management capability will
have a large influence over the amount of outside assistance required during the process and may guide
the Owner in determining the appropriate project delivery system.