Project Delivery Systems
- A project delivery system (a contracting method) is a
framework that an owner uses to communicate with other
partakers to have a project completed.
The Project Management Institute (PMI)
- As per the PMI a project delivery system is “the structure of
the relationships of the parties, the roles and responsibilities
of the parties, and the general sequence of activities
required to deliver the project.”
- Project delivery systems exist in different types. Each
follows a particular process (planning, design, and
construction) to execute and complete the project.
- Each project delivery method is defined by a unique
combination of contract type and selection method.
- Parties involved in each system expose different amounts of
risk and uncertainty.
- To lower the project cost, the party who has the most ability
to control risks should take more responsibilities and risks.
- If an owner with no or low ability to control risks delegates
risks, the cost of project will skyrocket since overall project
uncertainty increases.
Parties involved in a project:
- Owner
- Designer
- General Contractor/Construction Manager
- Subcontractors
Types of project delivery systems
Owner select one of the following project delivery systems:
1. Design-Bid-Build - traditional project delivery system
2. (a) Design Build - a turnkey project delivery system
(b) Design Manage - a turnkey project delivery system
3. Owner Builder (Multi-Prime - MP)
4. (a) Professional Construction Management: Construction
Manager
(b) Professional Construction Management: Construction
Manager at Risk
5. Integrated Project Delivery (IPD) systems
Design-Bid-Build (DBB)
- Traditional project delivery/most common project delivery
method
- Involves a designer and a general contractor
Who is the designer in this case?
A single professional engineer or an engineering company
- Both parties work for the owner under separate contracts
- This system has three phases:
1) Design phase
2) Bid phase
3) Build phase
- Designer develops all contract documents ( drawing,
specifications, etc) for biding
- Documents are then sent out to one or more general
contractor for biding on the project
- After receiving all proposals, the owner and designer select
on general contractor to enter into contract with.
- Selected contractor is responsible for constructing or
fabricating product
- General contractor uses his own workforce and may enter
into contracts with subcontractors
- Designer oversees the work of the general contractor and
subcontractors
- Although there is no contract between the designer and the
general contractor, the general contractor must
communicate with the designer during the construction
- Contract between the owner and the designer is usually a
negotiated professional fee contract.
- Contract between the owner and general contractor may be
lump sum (fixed price), unit price, or cost-plus fixed fee
contract
Types of Payment and Definition (no need to know by heart)
Construction Manager at Risk (CRM)
·
represents
construction
the owner during both design a
phase
·
system is suitable where the constructibility
issues arise
design process.
during the
to this is the case for very large projects such
as
olympic Games stadium facilities. a
system is delivery method.
similar to DBB But
Instead of the designer theConstruction ,
Manager (cm) oversees the entire project
(Design process + construction quality)
·
Both contracts for designer a construction
manager
are
usually negociated professional fee contracts.
Contract
· between the owner + subcontractors are
lost -
plus .
Design-Build (DB)
a
Design-Build (Turnkey) Delivery System
into
is a
method in which the owner enters contract
with a single entity for both
design -
construction
- firm that is liable for
entire
project is
usually a
large speciality
construction
contractor
capabilities
with both design
>
-
This system is more efficient and less
costly
suitable for nuclear
power plant projects , petrochemical
etc ..
Contract
>
-
between C
owner the firm may be lump
Sum .
owner - Builder (Multi-prime mp) ,
·
Owner handles both design + construction
·
system sustainable for large organizations such
is
as oil and
gas companies, ....
Contract between < subcontractors be
owner
may
·
lump Sum
(fixed price) or unit
price.
Integrated project Delivery CIPD) system
·
relatively new
·
Only 1contract make all projecttrom members
Involved and connected
·
Each member plays a role fromthe
beginning of
design to the end of construction
members share risk
equally
·
·
If members are
experienced Method - is Very
efficient and Shorten
significantly project timeline
.
