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Project Delivery Systems
Project Delivery Systems
INTRODUCTION
Owners, designers, and contractors make the decisions, provide the services, and perform the work to deliver constructed projects. These activities are known collectively as project delivery. The generic term project delivery system describes how the participants are organized to interact, transforming the owners project goals and objectives into a finished facility.
INTRODUCTION (CONT.)
The owner usually considers the following factors to decide how project resources are to be organized:
Past practices, traditions, and experience; The advice of consultants; Funding sources and constraints; The effective use of staff and working capital; The interests of other project stakeholders.
OWNER-PROVIDED DELIVERY
Mostly applicable to projects where the scope of the work is within the owners range of skills, experience, and resources. Owners perform some or all of the design services and construction work themselves. E.g. simple modifications to an existing facility, projects with limited cost or complexity, repetitive projects.
CONSTRUCTION MANAGEMENT
Many owners engage construction managers (CMs) to assist in developing bid documents and overseeing project construction. CM:
Is a professional or a firm trained in the management of construction processes. Is generally interposed between the owner and some or all of the other participants.
DESIGN-BUILD
The owner contracts with a single entity to provide the design and to construct the project according to that design. The contract might be negotiated with a single design-builder or result from competitive proposals. The selection can be based on low price or on a set of value criteria (experience, staff, bonding capacity, etc.).
DESIGN-BUILD (cont.)
Design-build provides the owner with a single point of contact for project responsibilities, eliminating the need to assist in resolving designer-contractor disputes. With the contractor playing a major role in design, costs are typically defined and maintained to a greater degree, and the coordination of fast-track management to achieve early completion is greatly simplified. The design-builder makes many decisions that owner would make under DBB, due to delegation of greatly increased authority.
DESIGN-BUILD (cont.)
For many owners, delegation of responsibilities leads to satisfactory projects. However, if the parties are inexperienced and do not cooperate, the transfer of control and risk can be disappointing. The owner may need to restructure his/her internal procedures to accommodate design-build approach. Compared to DBB, this involves a significantly different set of requirements and expectations for process, timelines and communications. A clear understanding and documentation of designbuild processes enhances the quality of design-build projects.
DESIGN-BUILD VARIATIONS
Funding Option Variations Turnkey Developer Financed Projects Turnkey Variations
Turnkey
Turnkey adds to the design-builders responsibilities the operation and/or maintenance of the completed project. Turnkey delivery has the potential for bringing a new project on line more quickly. Three forms of turnkey project delivery:
Design-build-operate-transfer Design-build-operate-maintain Design-build-own-operate-transfer
Developer-Financed Projects
For highly specialized projects and circumstances, financing from a private or public developer or other third parties can offer additional variations on design-build and turnkey project delivery, each with new roles for owners, designers, and contractors.
Turnkey Variations
Variations on turnkey add financing as a key component. While financing arrangements are unique for each project, developer financed projects generally resemble one of the turnkey delivery methods:
FDBT (Finance, design, build, transfer) FDBOT (Finance, design, build, operate, transfer) FDBOOT (Finance, design, build ,own, operate, transfer)
In each case, the transfer of the project occurs only after the developers interests and financial obligations have been satisfied.
FAST-TRACKING
Fast-track approach compresses the schedule by sequencing the start of construction on underlying project elements (e.g. foundation, basic supporting structures) before final design is complete for interior or adjacent elements. Fast-tracking is not a method of delivery, rather, its a management strategy within delivery methods. While often successful in achieving schedule reductions, problems on fast-track contracts can create a domino effect on follow-on contracts for the project. Fast-track is more successful on projects that are straightforward and have a high level of predictability.