pathways to procurement
project delivery methods
DESIGN-BID-BUILD DESIGN-BUILD CM@RISK
Franklin’s Coffee Shop // Savannah, GA
Several delivery methods exist for selecting a contractor to build any project. These include Design-Bid-Build,
LS3P is experienced in all of these of
Design-Build (both contractor-led and
delivery methods and can assist you
designer-led), Construction Manager as
with a comprehensive analysis and the
Constructor (Construction Manager at
decision for which delivery method is
Risk or CM@R). Invited Bid, Negotiated
most appropriate for your project based
Bid, and Multiple Prime (Multi-Prime).
on your priorities, schedule, and budget.
The three most frequently utilized
We have successfully delivered projects
project delivery methods are Design-Bid-
using each of these delivery methods,
Build, Design-Build, and CM@R. Each
and are very familiar with the pros, cons,
comes with pros and cons, and all can
and complexities of each.
work quite well for the right situation if all team members are aware of the inherent challenges and opportunities.
top image: MUSC - Brain Health NewCo; Modern Minds // Charleston, SC bottom image: Artillery Bar // Savannah, GA
design-bid-build Often referred to as “competitive bidding,” the Design-Bid-Build delivery method is organized into three discrete phases: the design phase, the bidding or procurement phase, and the construction phase. These phases are typically completed sequentially; the design phase (including preparation of construction documents) is completed before the bidding process begins, and once a bid has been awarded to a general contractor, the construction phase begins.
RELATIONSHIPS
The owner typically selects an architect based on qualifications. At the end of the design process and when construction documents are complete, the owner advertises to all prospective bidders the opportunity to submit a bid, at a predetermined time and location, to construct the project. The project is awarded to the lowest responsible bidder. The architect will be an owner’s representative during the construction phase and will administer the contract for construction between owner and contractor. Wilson Center at Cape Fear Community College // Wilmington, NC // design-bid-build
design-bid-build
International Culinary Institute of Myrtle Beach; HGTC Culinary Institute of Myrtle Beach // Myrtle Beach, SC // design-bid-build
PROS
Owner Risk //
Budget //
Owner is intimately involved in design
Construction cost is a fixed sum at
and construction decisions
contract award.
Clear chain of command streamlines
Process encourages low bid cost with
communication
maximum competition, and is perceived as the most “competitive” means for
Owners, architects, and contractors
selecting a contractor
are familiar with and understand this frequently utilized delivery method
Process usually “begins” with the lowest cost of the work
Architecture team works directly for the client and is heavily involved in design through construction Process can utilize an invited bidder list or be open to all “responsible” bidders. Owner has one construction contract with one entity to deal with for the entire project
Schedule // Linear process makes planning and scheduling straightforward
Quality // Bidding procedures promote equity in the selection process
Clemson University Energy Innovation Center // North Chareston, SC // design-bid-build
CONS
Owner Risk //
Schedule //
Owner risk is high
Linear process can lead to delays if any step of the process is off schedule
Process requires significant owner expertise
Potential for longer schedule
Communication issues can arise between architects and contractor due to separate contracts with owner
Quality //
Contractor selection based on cost NOT
Contractor involvement begins at
qualifications
bidding, and contractor does not offer advice on constructibility during design
Budget // Cost submitted on bid day is starting cost, but frequently NOT final cost. Process may require value engineering and redesign if lowest responsible bid exceeds owner’s budget Change orders are guaranteed with this delivery method
Pressure to achieve a low bid may encourage economy over quality Contractor may be required to work with unfamiliar subcontractors based on lowest cost model
design-build Design-Build is a delivery method in which an owner signs a single contract, usually with a design-builder/contractor, that covers all aspects of design and construction.
RELATIONSHIPS
Design-Build is a collaboration between the design and construction teams. The owner selects this team based on Design-Builder experience/qualifications to provide a building satisfying an owner-specific program, and the work is typically completed for a lump sum. The architect/design team usually works for and is managed by the design-builder/contractor and therefore has limited involvement during the construction phase.
Duke Institute for Brain Science // Durham, NC // design-build
Richland School District Two ES #20; Jackson Creek Elementary // Columbia, SC // design-build
design-build
PROS
Owner Risk // Owner’s risk is reduced Single entity is responsible for design and construction
Construction can begin before design is complete Design/build eliminates the bidding process Delivery can move more quickly through early construction packages and reduced
Budget //
submittal review times.
Cost estimates are more reliable with contractor involved early Early communication between architects and contractor can help control cost and minimize conflicts
Quality // Architect/contractor selection is typically made on qualifications Subcontractor involvement during the design phase can reduce conflicts during
Schedule //
the construction phase.
Overall construction duration can be reduced due to subcontractor involvement during design phase
CONS
Owner Risk //
Quality //
Limited owner control of design and
Design-builder/contractor makes
construction
decisions on products incorporated to satisfy owner program based on Lump Sum approved
Budget // Design changes after construction begins are costly Costs can be higher without competitive bidding May be difficult to compare fees up front
Architects have little-to-no involvement during the construction phase
construction manager as constructor (CM @ Risk) Construction Manager as Constructor, also known as Construction Manager at Risk (CM@R), is a delivery method in which the basis of payment is the cost of the work plus a fee with a Guaranteed Maximum Price (GMP).
RELATIONSHIPS
In the CM@R delivery method, the owner selects the architect and constructor based on qualifications and experience. The owner executes an agreement with the architect and a separate agreement with the constructor. The constructor is involved during the design phases, providing preconstruction services such as cost estimating, constructability reviews, project, and construction scheduling. The CM@R is responsible for engaging qualified subcontractors and performing the work for a Guaranteed Maximum Price (GMP).
CU ICAR Research One // Greenville, SC // CM@Risk
CM@Risk
CU ICAR Research One // Greenville, SC // CM@Risk
PROS
Owner Risk //
Schedule //
Potential for higher initial cost
Project schedule is shorter
Less risk associated with cost and
Transition from design to construction
constructability for the owner
is streamlined, as the constructor is involved during design phases
Owner still has control of design
Quality // Budget // Known cost control throughout the design process Overall cost shall NOT exceed GMP No change orders per contract if original scope is NOT altered after the GMP is accepted The total cost may be less than the GMP The CM@R fee can be negotiated prior to execution of GMP
Contractor selection is based on experience and qualifications, NOT lowest cost Contractor and architect work together throughout the entire project Contractor is knowledgeable of owner’s aesthetic and performance desires from contractor involvement during design and construction document preparation phases Involvement of CM@R construction team and subcontractors during design phases results in fewer conflicts during construction phase
NC State University Wolf Ridge Apartments at Centennial Campus // Raleigh, NC // CM@Risk
CONS
Owner Risk // Owner control during construction is reduced
Quality // Preconstruction services can be ineffective if not specifically identified in the Owner-CM@R agreement
Budget // Design changes after GMP is accepted results in increased GMP Difficulty of reducing costs from the original CM@R cost estimate as construction document preparation progresses. Separate independent cost estimator is recommended, to be employed by owner as a CM@R cost estimate verification tool
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