COST ESTABLISHMENT TIMELINE OF CONSTRUCTION DELIVERY METHODS

 

 

CONSTRUCTION DELIVERY METHODS

DESIGN-BUILD

 
Design and construction services are contracted between the Owner and a single entity.


  

BENEFITS:

  • The Owner has a high level of trust with the Design-Builder 
  • Design-Builder serves as the single point of contact for project responsibilities to the Owner throughout design and construction
  • Decreased project delivery timeline; “Fast-Track” delivery is an option
  • Cost is established in the early development stages
  • Cost feedback is provided throughout the entire design and construction process which allows for the best cost/benefit decisions to be made
  • Collaboration between the Owner and Design-Builder begins on day 1, minimizing change orders
  • The Owner and Design-Builder share project risk
  • Controlled competitive subcontractor bid process, leading to improved quality
  • Opportunity for cost savings sharing

DESIGN-ASSIST/CMAR

 
Contractor is hired by the Owner early in the design phase to collaborate with the Architect and provide pre-construction services.

 

BENEFITS:

  • Cost is established in the early development stages
  • Cost feedback is provided throughout the entire design and construction process which allows for the best cost/benefit decisions to be made
  • RFI’s are vetted during design phase leading to fewer change orders
  • Shortened project delivery timeline; “Fast-Track” delivery is an option
  • Opportunity for sharing of cost savings
  • Competitive subcontractor bid process, leading to improved quality

GENERAL CONTRACTOR
(DESIGN-BID-BUILD)

General Contractor is employed by the Owner to perform construction work only. The Owner hires the design and pre-construction work through third parties separately.

BENEFITS:

  • Increased competition on initial bid pricing
  • May allow more construction firms to bid that don’t have Design-Build or Design-Assist /CMAR qualifications, capabilities or experience
  • Traditional and familiar project delivery process with defined roles and responsibilities
CONCERNS
DESIGN-BUILD
 

  • Owner to establish detailed Design-Builder criteria
  • Third party checks and balances
DESIGN-ASSIST/CMAR
 

  • Design team may not incorporate input from the CM into design
  • Greater potential for limited price competition
  • The Owner becomes the resolution agent and becomes responsible for design documents and construction conflicts
  • Selection of the CMAR needs to be involved early in design phase to be effective

GENERAL CONTRACTOR
(DESIGN-BID-BUILD)

  • Longest project delivery timeline; no “Fast-Track” delivery option
  • Project cost established late in the project development timeline
  • Little or no builder collaboration or input during project design
  • Creates “low bid” mentality which can impact quality
  • RFI’s are vetted during construction which could lead to more change orders
  • The Owner assumes the majority of project risk
  • Low bidder may not understand the Owner’s project goals, objectives and criteria
  • Cost savings sharing is not available


CONSTRUCTION DELIVERY METHODS