CSM 104

ALTERNATIVE METHODS OF PROJECT DELIVERY

 What are Traditional methods of project delivery?

DBB!!!!!!!

1
 TRADITIONAL METHODS OF PROJECT DELIVERY

DESIGN BID BUILD

 What is Design Bid Build

 Characteristics of DBB
 Advantages of DBB
 Disadvantages of DBB
 Owner Responsibilities
 Role of the Contactor/Builder
 CCDC 2 - 2008 Stipulated Price Contract,
 CCDC 20, A Guide to the Use of CCDC 2 contract form
 CCDC 18 - 2001 Civil Works Contract

2
 Lump Sum -Stipulated Price
(CCDC-2)
Method USED BY OWNERs TO DELIVER PROJECTS

 Most Common Type of contract and one of the safest ---

Because the cost is known up front

 It assumes the plans and specifications are complete and

accurate.

 Any errors, omissions in the plans and specs or changes in

scope will result in a Change Order.

 Cost over-runs must be absorbed by the GC.

 Cost savings due to superior performance go to the GC

METHODS OF PROJECT DELIVERY
DBB

4
 Traditional Methods of Project Delivery
Design Bid Build

Design-Bid-Build is characterized by:

 Two independent contracts between:

 the architect and the client/owner
 the contractor and the client/owner

 Three distinct phases

 DESIGN > BID > BUILD

 the linear sequencing of the work. DESIGN> BID> BUILD

 Traditional Methods of Project Delivery
Design Bid Build
 MORE THAN ONE CONTRACT TO DELIVER PROJECT

 CONTRACTS ARE PER THE PROJECT PHASES

 DESIGN/BID
 BUILD

 CCDC 2 - 2008 Stipulated Price Contract

6
 Design Bid Build
CCDC 2

 CCDC 2 - 2008 Stipulated Price Contract –

 Lump-Sum -Fixed Price

 Most Common Type of contract and one of the safest because

the cost is known up front.

 Standard prime contract between Owner and prime Contractor

to perform the required work for
 a single, pre-determined fixed price or lump sum,
 regardless of the Contractor's actual costs
7
 BDD Project Delivery Method
Two Contracts

Owner

Architect Contractor

Consultants Sub contractors

8
 The Canadian Construction Documents Committee
(CCDC)

(CCDC) is a national joint committee composed of representatives of the

Association of Consulting Engineers of Canada, the Canadian
Construction Association (CCA), Construction Specifications Canada
(CSC), and the Royal Architectural Institute of Canada (RAIC).

CCDC currently publishes the standard form contract documents:

 CCDC 2- 1994 Stipulated Price Contract - DBB

 CCDC 3-1998 Cost Plus Contract
 CCDC 4-1982 Unit Price contract
 CCDC 18-2001 Civil Works Contract
 CCA/RAIC/CSC Document 14-2000 Design Build stipulated price
contract
 CCA/RAIC/ Document 15- 2000 Design-Builder/Consultant Contract
9
 Design Bid Build
CCDC 2

 It assumes the plans and specs are complete and accurate.

 Any errors, omissions in the plans and specs or changes in

scope will result in a Change Order.

 Cost over-runs must be absorbed by the GC

 Cost savings due to superior performance go to the GC

10
 Design Bid Build
CCDC 18

 CCDC 18 - 2001 Civil Works Contract

 Standard prime contract between Owner and Contractor for

civil works construction, e.g. roads, bridges, dams,
underground utilities, etc.

11
Design Bid Build
CCDC 2 Contract form

12
Design Bid Build CCDC 2 Contract form

13
 Design Bid Build
CCDC 20 A Guide to the Use of CCDC 2 Contract form

14
15
 Building Projects uses Design-Bid-Build

 Most building projects follow this traditional method of

project delivery

 the owner engages an architect to prepare the design,

drawings, and specifications;

 the owner hires a contractor by competitive bidding to

build the facility under a construction contract (usually
CCDC 2, Stipulated Price Contract);

 the architect administers the contract, and reviews and

16
certifies the construction.
 Traditional Methods of Project Delivery
Design Bid Build

 The traditional delivery system requires

 the project to be fully designed before Construction

work begins,

 then makes use of a single general contractor who

assumes responsibility for constructing the entire
project

 lump- sum contract with the owner/contractor.

17
CCDC 2 - Stipulated Price Contract
Figure per CCA

18
DBB- Stage Diagram flow

19
DBB - LINEAR SEQUENCING OF PROJECT ACTIVITIES

20
 DBB ADVANTAGES

 It is simple to understand

 Familiar to all owner/ users

 Owners are able to provide their inputs into the

process in a significant manner during the design
phase

 Widespread use and familiarity

21
 DBB ADVANTAGES

 Owner is able to compare the bids to reach the best

price for its project

 Clear roles assigned to each party

 Thorough resolution of design prior to construction

 Usually has a known price before construction begins.

22
 DBB DISADAVANTAGES

 Without complete and good plans and specification, the

owner has no really good concept of the final cost

 Linear scheduling, a delay in the early stages has a

domino effect on later stages

 Sequential process can be lengthy

23
 DBB DISADAVANTAGES

 Separation of design and construction restricts useful

communication

 The contractor is unknown when the construction

documents are prepared

 Owners are subject to inflationary considerations of

construction costs, interest rates and delays that
increase costs

24
 CONSIDERATIONS
When selecting the
Design-Bid-Build Delivery Method

 Design-bid-Build (DBB) is the most familiar project

delivery system and can be used on virtually any project

 It is characterized by its linear and logical sequence of

steps.

 The process requires a long lead time to prepare plans

and specification to permit the contractor to complete a
bid.

 The plans and specifications are completed prior to

construction 25
 When should Design Bid Build be used

 Can be used

 Anywhere

 Anytime

 On any project by any owner, private or public

26
 DBB Owner’s Responsibilities

The primary task of the owner in design-bid-build is:

 acquiring the site and obtaining commitments for

adequate financing for the project

 Owners must have a clear understanding of the nature

of the project

 The owner must have the ability to direct the architect

and the contractor

27
 DBB -- Contractor Expectation of Owner

The primary consideration is:

 adequate financing of the project

 The decision making process and how the owner is

involved

 Work Scope Change Process

28
 Owners' Expectation of Contractors

 The adequate experience the contractor will have in the type

construction

 Deliver project on time and budget to the stated quality

 The builder should ascertain the quality and expertise on the in-
house construction staff

29
DB RESPONSIBILITY
Flow Diagram

1
DB PROCESS FLOW DIAGRAM

2
DBB– COMPARE
CCDC 2, Stipulated Price Contract

3
4
 DESIGN BUILD- INTRODUCTION

 Design-build is a construction project delivery system

where the design and construction aspects are contracted
with a single entity known as the design-builder or design-
build contractor.

 Design-build is more streamlined than the traditional

method, often referred to as design-bid-build, where
design and construction were clearly separated

5
 INTRODUCTION -ORIGIN

 The concept of a master builder as a single source

Between the design and construction has existed long time
ago.

 The concept of a master builder was a common place in

the middle ages.

 During the renaissance this began to change as architects

and artists desired to separate themselves from the
common trades people. With this change, the role of the
master builder slowly began to disappear.
6
 DESIGN-BUILD
PROJECT PHASES FOR BUILDINGS
PHASE 1

 The Design-Builder provides

 architectural design services and, throughout the
design process,
 monitors costs to ensure the building remains within
the owner’s budget.

 Based on the design developed in the first phase, the

Design-Builder usually proposes a stipulated
maximum price, which includes a fee for managing the
construction.
7
 DESIGN-BUILD PROJECT PHASES FOR BUILDINGS
PHASE 1

 Phase 2: The parties enter into a stipulated price

contract for the completion of the building.----

 Refer to Document 14, Design-Build Stipulated Price

Contract

8
 )
DESIGN BUILD

Design Build IS A Stipulated Price Contract--- CCDC-14

The design-builder is usually the general contractor, but can also be the architect or
engineer.

SINGLE CONTRACT TO DELIVER THE PROJECT –

Owner contracts with Design-Build company-- that in turn hires the design
Consultant (Contractor driven/lead)

By incorporating the designer and contractor, design-build

 minimizes the project risk for an owner and

 reduces the delivery schedule by overlapping the design phase and

construction phase of a project
 THE CANADIAN CONSTRUCTION DOCUMENTS COMMITTEE
(CCDC)

 CCA/RAIC/CSC Document 14-2000 Design Build - Stipulated Price

Contract

 CCA/RAIC/ Document 15- 2000 Design-Builder/Consultant Contract

10
CCA 14– Sample OF CONTRACT

12
CONSIDERATIONS WHEN SELECTING THE
DESIGN-BUILD PROCESS

13
 CONSIDERATIONS-
PRIOR 1/2
 Before considering a design-build approach, be sure that
your state/COUNTRY allows it and that whatever funding
source you use endorses it, too.

 The most common objection to design-build is the fear that

the owner will lose control by delegating too much or suffer
from compromises between design and construction.

14
 CONSIDERATIONS- PRIOR 2/2

 The owner’s role simply changes from one of

mediating problems between disciplines (design
engineer and contractor) to exploring and analyzing
options to improve value for the user.

 Ultimately, with good performance specifications, the

design-build team (instead of the owner) becomes
responsible for the success of the project.

15
 THE INTEGRATED DESIGN BUILD PROJECT DELIVERY

 Separation of design and construction is not the standard

in other industries.

 HOWEVER, the airline industry, combines design and

production. Similarly in the automobile industry, the
computer industry, the heavy industry.

16
 DB-
POTENTIAL BENEFITS
Some key aspects of design-build include:

Singular responsibility—one entity is accountable for cost,

schedule, and performance;

Faster delivery—collaborative project management completes

work faster with potentially fewer problems;

Reducing change orders—design changes that occur because

the design did not account for certain obstacles or situations

Potential better quality—a design-build meets performance

17
needs rather than minimum design requirements;
 OWNER’S CONSIDERATIONS

 Starting point: where an owner planning the project

must be able to define their needs and expectations. =
PERFORERMANCE SPECIFICATION

 The owner must determine if they have qualified staff

on board to begin to extract and define their program or
whether they will require outside consultants.

18
LIFE CYCLE OF A DESIGN-BUILD PROCESS

 Life Cycle Depends upon whether the project is

in the public or private sector and

 the type of contract being considered, decisions

will be made that influence the design-build life
cycle

19
DD PROJECT CYCLE

20
OWNERS UNDERTARKING

21
Risk Sharing is part of the
Design-Build process.

Risk identification

Invites discussions involving

insurance, what limits are
required

How risk be shared between

Owner and Design-Builder
22
 Performance Specifications – Phase

Performance specification focuses on methods by which the

Owner will solicit and contract for design-build

WHAT ARE THE METHODS?

This performance phase in some cases may precede the risk-

allocation phase

23
If a design-build team is
brought in at this early
stage, they will begin to
work with the owner’s
staff to develop the

conceptual design

and associated costs

24
 Contract Award &
Construction Administration
Prior to final contract review and execution, the owner
and the design-build team should consider several
activities related to the construction process and form a
construction administration exhibit to that contract.

25
 Close-Out & Commissioning
Prior to construction, thoughts must be given to
the project’s close-out and commissioning

26
 DBB/DB
USER BY COST/SIZE

27
 Differences between
Design-Bid-Build and Design-Build

 With the traditional design-bid-build method, the owner

would hire a design firm while also lining up project
funding.

 With DB, the design and construction done concurrently

28
 DB ADVANTAGES

 Owner contracts with Design-Build company that in turn hires

the Design Consultant (Contractor driven/lead)

 Attractive: design and construction under one roof

 Construction can begin before the plans and specs are 100%
complete.

 Can save time because early start enables fast tracking

 Design can evolve with more cost savings due to early

29
contractor input
 BENEFITS OF DB

 Reduced Owner’s risk—a design-builder assumes the risk to

deliver

 Decreased administrative burden—the focus is on the project

as a whole, rather than on separate functions

 Potential cost savings—an integrated team executes efficient

and innovative solutions; and

 Fewer litigation claims—owners can reduce and even

eliminate litigation claims by closing warranty gaps.
30
 DB DISADAVANTAGES

 MISSING SCOPE/ADDED SCOPE

 Owner may not have same degree of control over

design and quality.

 MISSING SCOPE

31
Owner’s Responsibilities

 Work Scope definition

 Performance specification
 Budget
 Land/site
 Permits
 Other stakeholders inputs/risk

32
Contractor Expectation of Owner

 Budget
 Scope definition

33
 OWNERS' EXPECTATION OF CONTRACTORS

 The REQUIRED experience, the contractor will have in

the type construction

 Delivery of project on budget and time and quality

34
DB PROCESS FLOW

35
DESIGN BUILD SCHDULE- OVERLAP

36
DBB----- COMPARISON WITH DB

37
 COMPARISION OF DB AND DBB

38
39
40
COMPARISON OF DDB AND DB DIAGRAMS
RESPONIBLITIES

41
COMPARISION OF DBB VS DB

42
QUESTIONS?

43
 Interim Assignment 3:

Research a current major project in the GTA that has

spiraled out of control

Report on possible causes and solutions

Present to class for discussion.

1 WEEK FOR SUBMISSION

44
DBB PROCESS FLOW

45
46