Construction Project Delivery Methods: Choosing the Best Method for Your Project

When selecting a project delivery method, project owners consider factors such as the type of project, control over the project, risk tolerance, timeline, and budget. There are several different project delivery methods, each with its own advantages as well as risks. A good fit for your project is is one that maximizes the advantages given your unique requirements, but also one where you can plan to effectively minimize the inherent risks that come with a particular delivery method.

Design-Bid-Build (DBB)

• "Traditional project delivery" involving a design team and a general contractor working directly for the owner under separate contracts.

• 3-stage process: design, bidding, construction.

• Advantages: clear separation of roles, competitive bidding, well-defined responsibilities

• Risks: limited collaboration during design, potential adversarial relationships

Design-Build (DB)

• Owner provides contract to a single firm that handles both the design and construction aspects of the project.

• The design and construction phases overlap, leading to faster project completion

• Advantages: streamlined communication, single point of responsibility, potential time savings.

• Risks: limited owner involvement during design, potential conflicts of interest.

Construction Manager at Risk (CMAR)

• The construction manager (CM) acts as a representative for the owner during both design and construction.

• The CM assumes project risk (usually with a contract that has a guaranteed maximum price).

• Advantages: Early involvement of the CM, risk-sharing, and cost control.

• Risks: Complexity in managing multiple contracts, potential disputes.

Construction Management Multi-Prime (CMMP)

• The owner acts as the general contractor (GC) and establishes contracts with the design team and major subcontractors.

• Each prime contractor manages their specific trade.

• Advantages: Direct control over subcontractors, flexibility, and specialized expertise.

• Risks: Coordination challenges, potential delays.
  

Public-Private Partnerships (PPP or P3)

• A private company and a government entity collaborate on a project, typically funded by the government and managed by the private company.

• Advantages: Efficient use of private sector resources, risk-sharing, and innovation

• Risks: Complex negotiations, long-term commitments.

Integrated Project Delivery (IPD)

• All project stakeholders (owners, designers, contractors) are on a single contract pre-determined before the design phase begins.

• Risk and responsibility are shared equally among all parties

• Advantages: Collaborative environment, early input from all stakeholders, and shared goals.

• Risks: Requires strong teamwork and trust.

Ultimately, the method chosen can significantly impact how stakeholders collaborate during the planning, design, and construction phases, so careful consideration of the right method for your project is important.