Lecture 2: AEC Industry Business Models Flashcards
Project Participants (4)
- Owner
- Design team
- Construction team
- Professional construction manager
Owner
Pays for the facility and might own it after construction is completed.
Owner’s Organization (5)
- Capital project officer (CPO)
- Financial officer
- Owner’s project manager
- Owner’s inspector
- End users
Types of owners (2)
Public and private
Public owners
Government level, usually large infrastructure projects with well-defined procedures.
Private owners
Ranges from real estate developers to one‐time projects, usually smaller projects with informal procedures. More innovative, cost‐efficient and flexible.
Public-Private Partnership (PPP or P3)
Partnership between public and private owners to deliver large projects traditionally provided by public organizations.
Advantages of PPP (3)
- Financed by the private entity.
- New infrastructure without tax increases.
- Good for developing countries with a backlog of projects.
Design Team
Architecture and engineering firm that holds a contract with the owner and collaborates with companies through consulting/subcontracting agreements.
Construction team
Holds a contract with the owner and collaborates with specialty contractors through subcontract agreements
Professional Construction Manager (CM)
Oversees entire project construction on behalf of the owner with no direct relationship to architects, engineers, or contractors. Many general contractor companies have construction manager services.
Project delivery systems
The characteristics of how a construction project is designed and built and the responsibilities of the parties involved.
Design-Bid-Build (DBB)
Owner contracts designers and builders separately. The design firm delivers completed design documents, then the owner solicits bids from contractors to perform the work.
Cost estimate
A detailed calculation or assessment of the anticipated construction costs.
Request for information (RFI)
Formal process for gathering information from other entities (clarification in designs, addressing constructability issues, etc…)