Project Delivery Methods Flashcards
construction manager as advisor
serves as an independent adviser to the owner throughout all phases of construction, consults on constructability early on, does not actually build the building
- Benefit is lower risk for owner
construction manager as agent
manages and administers the contracts b/w architect & contractor, hires the architect and contractor, is an expert at being on schedule and on budget
- Good for inexperienced client who doesn’t want to be super involved, low risk for owner
construction manager as constructor (cm at risk)
Takes place of contractor in the triangle diagram
Owner engages architect and construction manager at the same time
- Fast schedule and low risk for owner, most risky for CM
- However, inherent conflict that the CM is incentivized to drive up cost or drive down quality because that translates to higher profit for CM
- Final price (GMP) is known by end of SD
- Architect must maintain a stricter process of quality control
traditional design bid build
Architect creates contract docs, contractors bid a fixed price, usually the lowest competent bidder wins
- Takes longer, costs less, less likely to be corruption in contractor selection, so almost always used in public projects
design build
Architects and contractor are one business entity, fewer conflicts between them, but less oversight of building quality by architects, construction cost determined before design is complete, one contract for owner
- Less risk for owner
- Quicker because no bid process
- Quality can suffer
negotiated select team project
Subcategory of design/bid/build
Bring in contractor early in design process, give them a contract that guarantees the contractor a profit and covers contractor overhead
Portions of project that are difficult to fabricate can begin earlier
- Better quality, faster
- More expensive because there is no low bidder
Cost plus fixed fee: regardless of scope of final project
Contractor is selected after construction documents and promised a fixed profit, regardless of building cost
- Disincentivizes contractor from allowing construction costs to balloon
- Gives lots of flexibility for change of program or issues come up on site
bridged design build
Design architect hired to create 35% of design, then the drawings are handed off to a besign build firm. More oversight than design build because the bridging consultant (design architect) is independent of design build firm
- Low risk for owner, more expensive, takes longer
integrated project delivery
All 3 join together as a single entity that shares risks and profits
Share info with eachother without fear of litigation
Share benefits and risks of the project
Everyone profits if the project comes out ahead
More collaborative, more transparent, less lawsuits, less clarity on who is responsible for what, whose insurance is responsible, and who owns IP
3 types:
- Single purpose entity - creates a temporary legal agreement to create a new company, share losses and profits, high risk
- Project alliance - agreement to work together as partners and not sue eachother, less risky
- Relational contract - 3 entities form a team but they can sue eachother and owner retains authority to make the final call
unit cost
paying per housing unit
cost plus fixed fee
the estimated cost of the project plus a fixed profit for the contractor
- no limit on change orders, which can net contractor additional profit
- lower risk for contractors
- project price is initially unknown
guaranteed maximum price (GMP)
like a cost plus fixed fee, but if the project is delayed or the price of materials goes up beyond a total project cost, the contractor has to complete the project and eat the extra cost
- allows contractor to give the owner a price early on in the process using design development drawings
- requires additional cost risks if the contractor uses incomplete drawings to set the price
- reserved for projects with known scope and challenges
reduces risk for owners
stipulated (lump) sum
owner pays contractor one price to build everything in the contract
- best for projects with a well defined scope of work
time & materials
Contractors bill for all material costs and labor at an hourly rate.
- Helpful for projects with uncertain scope.
- tracking costs is burdensome
- increases risk for owners (unless there is a not to exceed clause)
what would be a good contract method if the scope of work is well defined?
lump sum
