One of the most important factors in a successful project is the choice of Project Delivery Model for Construction.
Why is the delivery model important? It outlines the roles, responsibilities, timeline, and project workflow to ensure project goals are met.
These models define how construction projects are structured, managed, and delivered from start to finish.
DBB: A Traditional Project Delivery Model in Construction
Design-Bid-Build (DBB) is the most common and more traditional delivery model. In this model, the architect or engineer completes the design documents as the first step. Based on these documents, subcontractors will then bid for the job. The client will then choose which bid will get the project. Once this has been finalized, the subcontractor will begin building.
Key characteristics of DBB include:
- Sequential phases: This model has a clear order of events, which need to be followed: design creation, followed by bidding, then construction.
- Separate contracts: The owner has separate contracts with the designer and the contractor.
- Owner's responsibility for design adequacy: The owner bears the risk for the completeness and accuracy of the design documents.
Potential advantages of DBB:
- Clear roles and responsibilities: The distinct phases and separate contracts lead to well-defined roles.
- Price competition: The bidding process can potentially result in a lower construction cost.
- Familiarity: Many owners and contractors are familiar with this traditional approach.
Potential disadvantages of DBB:
- Lack of early contractor involvement: The contractor is not involved during the design phase, potentially missing opportunities for cost savings or constructability improvements, which may also lead to designs needing to be adjusted or redone.
- Potential for adversarial relationships: Separate contracts can sometimes lead to conflicts and finger-pointing if issues arise.
- Longer project duration: The sequential nature can extend the overall project timeline.
Design-Build: A Modern Project Delivery Model in Construction
In contrast to DBB, Design-Build (D&C) offers a more integrated approach where the owner contracts with a single entity (the design-builder) to provide both design and construction services. This single-source responsibility streamlines the project delivery process.
Key characteristics of D&C include:
- Integrated phases: Design and construction are often overlapped or closely coordinated, meaning the planning and execution phases are often integrated.
- Single contract: The owner has a single contract with the design-build entity.
- Design-builder's responsibility for design and construction: The design-builder is responsible for both the design and the construction of the project.
Potential advantages of D&C:
- Single point of accountability: The owner deals with only one entity, simplifying communication and responsibility.
- Faster project delivery: Overlapping design and construction phases can shorten the overall schedule.
- Early contractor involvement: The contractor's input during the design phase can lead to more cost-effective and constructible designs.
- Reduced owner risk: The design-builder assumes more responsibility for both design and construction performance.
Potential disadvantages of D&C:
- Less owner control over design: The owner may have less direct control over the detailed design compared to DBB.
- Potentially higher initial cost: Without competitive bidding for the entire project, the initial cost might be higher, although overall savings can be achieved through efficiency.
- Importance of qualifications: Selecting a highly qualified and reputable design-build entity is crucial. The owner will need to be familiar with the credentials and skills required when making the hire.
Construction Management (CM): Owner-Led Flexibility
The Construction Management (CM) delivery model involves a third party, the Construction Manager, who acts as an agent of the owner (CM Agency) or takes on the risk of construction (CM at Risk). The CM is typically involved early in the project, often during the design phase.
There are two main types of CM:
- CM Agency (CMA): The CMA acts purely as a professional advisor to the owner, managing the design and construction processes. They do not perform the actual construction work but rather coordinate and oversee separate contractors who are contracted directly with the owner.
- CM at Risk (CMR): The CMR is involved early in the design phase to provide constructability advice and cost estimating. As the design progresses, the CMR commits to a guaranteed maximum price (GMP) or a similar cost control mechanism and then manages the construction, contracting directly with trade contractors. In this model, the CMR takes on the risk for staying within the agreed-upon price.
Key characteristics of CM include:
- Early involvement of a construction professional: The CM provides expertise during the design phase.
- Collaboration: CM fosters collaboration between the owner, designer, and contractor (especially in CMR).
- Flexibility: CM can be adapted to various project complexities and owner needs.
Potential advantages of CM:
- Expertise during design: The CM provides valuable input on constructability, cost, and scheduling early in the project.
- Improved communication and coordination: The CM acts as a central point of contact and facilitates communication.
- Potential for cost savings and schedule reduction: Early involvement and proactive management can lead to efficiencies.
- Increased owner control (in CMA): The owner retains direct contracts with trade contractors in CMA.
Potential disadvantages of CM:
- Added layer of management: The CM adds another party to the project team, requiring effective communication and coordination.
- Potential for increased fees: The CM's services come at a cost.
- Risk allocation can be complex: Understanding the specific risk allocation in CMA versus CMR is crucial.
Integrated Project Delivery (IPD): Driving Team Collaboration
Integrated Project Delivery (IPD) represents a highly collaborative approach that integrates people, systems, business structures, and practices into a process. This process optimizes the talents and insights of all participants to maximize efficiency through the project lifecycle.
For more information on how IPD works in practice, check out the Autodesk guide to Integrated Project Delivery.
Key characteristics of IPD include:
- Early and deep collaboration: All key participants are involved from the early stages of the project.
- Shared risk and reward: Stakeholders agree to share both the potential gains and losses of the project.
- Joint decision-making: Decisions are made collaboratively, often through consensus-based processes.
- BIM (Building Information Modeling) utilization: BIM is often a key technology for information sharing and collaboration in IPD.
- Waiver of liability: Stakeholders may agree to limit liability among themselves to foster a more collaborative environment.
Potential advantages of IPD:
- Enhanced collaboration and communication: Deep integration fosters better understanding and problem-solving.
- Improved project outcomes: Shared goals and responsibilities can lead to higher quality, lower cost, and faster schedules.
- Reduced waste and increased efficiency: Collaborative optimization minimizes inefficiencies.
- Innovation: The integrated team can collectively develop innovative solutions.
Potential disadvantages of IPD:
- Requires a high level of trust and commitment: All parties must be willing to collaborate and share risks.
- More complex contractual agreements: IPD contracts can be more intricate than traditional contracts.
- Cultural shift: Implementing IPD requires a shift in mindset and traditional roles.
- Not suitable for all projects: IPD may be best suited for complex projects where the benefits of deep collaboration outweigh the complexities.
Conclusion
As you can see, the choice of project delivery model can change the trajectory of a construction project significantly. Therefore, understanding the different types of models is vital to making these decisions.
When faced with choosing the right model for the project, you can look at factors such as project complexity, the owner’s experience, risk tolerance, and budget constrained. These considerations will help you determine the project delivery model that best fits with your project, and it will provide you with a framework with which to begin.
OE Partners can help you with a better understanding of Lean Construction, reduce building costs, manage time, and increase site productivity. Contact us to help you with your project management.
