L13: Project Delivery Methods Flashcards by Karishma Patel

What are they typical project stages?

A. Planning and definition
B. Design
C. Procurement and Construction
D. Commissioning

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What happens during stage A. planning and definition?

Need for new building, project defined, budget, conceptual design

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What happens during stage B. design?

Arch/Eng design of project; working drawings and specs

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What happens during stage C. procurement and construction?

Got materials and equipment and erection of building

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What happens during stage D. commissioning?

Fine tune building services

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Which parties are involved in project delivery?

Owner
Architect-Engineer
General Contractor
Construction Manager
Project Manager

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Who is the owner?

Instigating party behind the project

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Who is the Architect-Engineer?

Typically a third party who design and produce compliance documents (simple projects have civil and MEP; more complex also have structural and geotech)

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Who is the general contractor?

Firm in contract for construction (majority of construction done by subcontractors)

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Who is the construction manager?

Professional rep of owner with construction expertise - manages design and construction to achieve quality/cost

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Who is the project manager?

Organises, plans, schedules and controls construction and responsible for completing project on time/budget

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What is the hierarchy from project manager?

Project manager
Superintendent
Foreman
Labourers

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What are they types of project delivery methods?

Traditional:
DBB - single prime, multiple primes, DNB

Alternatives:
CMA
CMR
DB

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What is DBB?

Design-Bid-Build
Architect prepares design and construction documents and is responsible for keeping project on schedule/budget; contractors bid on work and build

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What are the advantages of DBB?

Proven method
Single point of responsibility (single)
Competition
Owners have more control

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What are the disadvantages of DBB?

Time consuming; whole design must be done before bidding (no overlap)
Designers have limited skill in keeping budget/time
Owner faces contractor claims over design and constructibility
More adversarial relationships

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What are the types and variation of DBB?

Single prime - owner contracts with arch and GC only
Multiple primes - owner contracts with arch, GC and subs
Design/Negotiate-Build

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What is design/negotiate-build?

Pre-selected GC works with owner and arch to advise them (private sector projects)

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What are the advantages of DNB?

More constructible

More able to meet time/budget

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What are the disadvantages of DNB?

May be higher cost because not competitively bid

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What is CMA?

Construction Manager as Advisor
Owner contracts with CM, arch and subs
CM has contractual obligation to advise and prepare cost/schedule and bid packages; received fixed fee
No GC - numerous contractors

What are the advantages of CMA?

Competition
More constructibility and ability to meet time/budget
Non adversarial relationships
Can fast track

What are the disadvantages of CMA?

Numerous contracts - more complex

No single point of contractual responsibility

What is CMR?

Construction Manager at risk

Same as CMA but CM contracts with subcontractors and acts as GC after advising

Advantages of CMR?

Single point of responsibility Strong, early interaction between arch and builder Construction can begin before the design is completed

Disadvantages of CMR?

Adversarial relationships can develop as CMR shifts to GC (GC trying to make own profit)

What is DB?

Design-Build | Newest method where owner contracts with contract to provide design and construction

What are the advantages of DB?

Simplicity of having one contract | Save most time/cost

What are the disadvantages of DB?

Owner has low control Limited design as architect works for constructor Often requires bridging No checks and balances system

What is bridging?

Another architect is hired before the design-build company, to produce program and prelim design

What did the Penn State US study find about project delivery methods?

DB (significant benefits) DBB CMR

What is the % of improvement on delivery speed from DBB to DB?

33%

What does the UK The Forum study show?

That the evidence from Penn State is international (nearly identical findings)

What is Fast and Flash Tracking?

Phased construction where elements are built before design is completed; all methods except DBB

What are turnkey projects?

Design and construction of project made from set of owner requirements; financing done by fee developer (received fixed payment)

What is BOT

Build-Operate-Transfer (version of turnkey projects for revenue-producing facilities) Builder finances and receives return on investment through collecting profits over long operational period

What are four common commercial construction contract types?

Fixed price Cost reimbursable Guaranteed maximum price Unit rate

What is the fixed price contract type?

Most info, latest start, highest contractor risk, lowest client risk Used in DBB (not fast track) Suitable for projects with well-defined scopes and minimal changes

What is the cost reimbursable contract type?

Least info, earliest start, lowest contractor risk, highest client risk Contractor reimbursed for actual costs plus given fixed/percentage fee Common for small projects with early contractor involvement Typically converts to fixed sum contract once scope is defined

What is the GMP contract type?

Cost reimbursable but with a maximum ceiling price | Typically converts to fixed sum

What is the unit rate contract type?

Contract quotes based on area of product used | Uncommon; more suitable for civil works

What do bonds do?

Mitigate some of owner's exposure to risk from high-risk nature of construction industry

What are the bonds commonly referred to and why?

Surety bonds - three party agreement where surety company guarantees to second party the performance of first party

What are the three basic types of bonds?

Bid Payment Performance

What are bid bonds?

Aim to ensure lowest bidder is able and willing to enter into contract Typically 10% of bid amount

What are payment bonds?

Aim to ensure contractors pay subcontractors and suppliers (within 90 days) to avoid worker's lien; bond used to pay workers; bond used to cover losses and award contract to other bidder Typically contract amount

What is the workers' lien?

Remedy for workers not being paid; undesirable as can impact saleability

What are performance bonds?

Aim to ensure contractor will promptly perform contract; bond used to employ new contractor Typically contract amount

Who typically holds construction policies and who do they cover?

General contractors covering all of their subs

What are the various insurance policies?

Builder's Risk Insurance - covers accidental damage to building (not builder's equipment) General Liability Insurance - covers accidental damage to adjoining property caused by negligence Workers Compensation Insurance - covers costs related to physical injuries to construction workers (NOT in NZ because of ACC)