Professional Documents
Culture Documents
FIDIC Presentation
FIDIC Presentation
RISKS OR REWARDS
for the
Consulting Engineer?
Presented at the
FIDIC Annual Conference
September 7, 2005
Gregs G. Thomopulos, P.E., FACEC
“Many of the old rules for
project delivery that held sway
in the industry no longer have the
same potency as they once did…
“Design-bid-build still has its many
followers among owners who believe that
they can obtain the very best design and
the most cost-effective construction by
holding both sides separate…
“Advocates of design-build believe that the
sole-source method of procurement forces
the team to iron out many of the project
wrinkles on their own because the entire
team will be held accountable…
“Still others believe that construction
management for fee is the best way of
ensuring that the owner gets the best of all
worlds because there is an agent inspecting,
measuring, observing and protecting the
owner’s interest…
“Fans of CM At-Risk believe that the words
‘at-risk’ say it all and force the CM firm to
deliver what it promised on time and on
budget or face the consequences. ”
OWNER
CE CONTRACTORS
Design-Bid-Build
Contractual Relationship
Project Time Line
SELECT
CE
DESIGN
BIDDING/
AWARD
CONSTRUCTION
PROJECT PROJECT
START COMPLETION
Construction Management At-Risk
Contractual Relationship
OWNER
CE CM / GC
Construction Management At-Risk
Contractual Relationship
Project Time Line
SELECT
CE
DESIGN
SELECT PRE-
CM/GC CONSTRUCTION
CONSTRUCTION
PROJECT PROJECT
START COMPLETION
Design-Build
Contractual Relationship
OWNER
OWNER’S CE
OR IN-HOUSE CE
DESIGN-BUILDER
Design-Build
Contractual Relationship
Project Time Line
OWNER’S
CE
OR IN- SELECT
HOUSE DESIGN
BUILDER
DESIGN
PRE-CONSTRUCTION CONSTRUCTION
PROJECT PROJECT
START COMPLETION
Why Owners Prefer Design-Build
Shorter Project Schedule
Better Cost/Budget Management
Efficiency and Innovation
(Contractors’ Means & Methods)
Single Source Responsibility
(Avoids Pointing of Fingers)
Risk Sharing
(More Risks Passed Down to Design-Builder)
Fewer Claims and Litigations
Fewer Contract Modifications
Opportunity to Package Larger Contracts
How Owners Procure
Design-Build Services In the U.S.
Negotiated Procurement
• Sole Source Selection (Strategic Alliance)
• Qualifications Based Selection (QBS)
• Best Value (Price and Technical)
Competitive Procurement
• Low Bid (Lowest Price Technically Acceptable)
• Adjusted Low Bid (Mix of Price, Schedule, etc.)
• Fixed Budget/Best Technical Proposal
• Best and Final Offer
• Weighted Matrix
Organization of the
Design-Build Team In the U.S.
Integrated Firm
(Design and Construction Capability in Same Firm)
Contractor As Prime
CE As Prime
Joint Venture Between the Contractor and CE
Design-Build Risks and Rewards
RISKS OR REWARDS
for the
Consulting Engineer?
Risky Business
Has Its Rewards
Thank You