The Primer

What are the Different

Construction Delivery Types
and Advantages of Each?
Project Delivery System* - The process selected to execute a construction
project for the purpose of assigning responsibilities and risk to the project team.
Common delivery systems include:
Design/Bid/Build
Design-Build
Construction Management-Agency
Construction Management-At Risk

Since each construction project is different, the project delivery system should be
tailored to the individual requirements of that unique project. Typically the owner chooses
the project delivery system that will be employed, but may rely on the professional input
of design and construction consultants to determine which project delivery system will
best fit the project. With public funded projects, the method of construction delivery may
be specified by the local or state jurisdiction.
Selection of a delivery method is typically based upon how your organization
operates, internal resources available and their level of expertise or knowledge, funding
requirements, and overall schedule for delivery.
+
Design/Bid/Build
Design/Bid/Build
(General Contracting)
Design-Build

Two
Four Project Delivery Systems

Three
Construction
Management
Agency
Four
Construction
Management-
At Risk

Construction
Design-Build Management-Agency
Construction
Management-At Risk

* Source: Construction Management Association of America (www.cmaanet.org)

 Design-Build Owner

Design/Bid/Build
In Design/Bid/Build, also known as the
general contracting project delivery method,
the process is linear, where one phase is
completed before another phase is begun.
Under the design/bid/build example, the
architect is selected under a separate
contract that is based on a negotiated
professional fee. The construction firm is
most often selected based on the lowest bid,
and there may be many subcontractors
under his contract/direction.
Owner
The hallmark of a Design-Build project is that
one organization, either the architect or the
construction firm, is soley responsible to the owner Design-Builder
for both design and construction of the facility. In the
design/build project delivery method, a single point
of contact has been proven to foster better
communication, reduce adversarial roles between
design and construction, and accelerate project
delivery. Architect/Engineer
Perhaps the biggest advantage of the
Architect/ design/build process is speed of delivery.
Engineer General Because construction is occurring concurrent with
Contractor design phases, the delivery of the project can be
Contractor is competitively sped up by 25 percent or more as compared to
bid per the Public Bid Laws.

the design/bid/build method. In addition to
providing the owner with one source of

Subcontractors
Subcontractors are competitively bid to General Contractors.






accountability for the entire project development
process and speed of delivery, using design/build
fosters a team effort to achieve cost and schedule Subcontractors
savings and to enhance overall value to the owner.
The two most essential considerations in
selecting a design/build team to construct your
facility are their depth of experience in working
together and proven record of performance in
Subcontractors are competitively bid or negotiated with the Design-Builder.
similar projects.

26 Months 20 Months Time Savings

Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Phase 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

Select Project Design Team Select Project Design Team

Programming Programming

Schematic Design Schematic Design

Design Development Design Development

Construction Documents Constructability Review

Bidding Select Prime Contractor Construction Documents

Construction Construction

Occupancy
Occupancy

+ +
Advantages
Architect serves as owners advocate
with extensive owner interaction
One bid package for construction
Traditional method
Understood by all parties - owners,
architect designer, contractor
Often easier to manage the linear
process
Disadvantages
Contractor in potential adversarial role
with architect and engineer
Restricted owner control due to
separation of roles and responsibilities
Accurate cost estimating during design
phase from architect requires
knowledge of latest construction
techniques and market
No opportunity for contractor input
prior to construction
Advantages
Low bid method increases probability Early and continued architect-
of costly change orders contractor collaboration leads to
reduced litigation
Requires owner resources to manage
Active owner participation contributes
Owner may have to act as referee to to a better end product
resolve disagreements
Single point of accountability, one-stop
Linear or sequential process, in which shopping for both design and
phases or tasks dont overlap construction services
If a project is over budget on bid day, it Accuracy of estimates enhanced
causes delays and additional costs for through early involvement of
redrawing and re-bidding construction arm
Disadvantages
Less detail required to begin Less owner control over final design and
construction possibly less design influence by architect
Fewer change orders saves time and Possibly reduced architect-end user interaction
expense
Fewer checks and balances
Speeds up entire design and
construction process - saving months Requires owners expertise
on schedule
Care must be taken to balance quality with
Owner can select team based on profit
qualifications or through bid process

The Primer
Construction Management Methods
The Construction Management (CM) method of project
delivery provides the owner with flexibility in selecting a
contractor based on several factors other than solely on price.
Those qualifications include project-specific expertise, history
of performance and stability.
Under a CM method of delivery, the owner selects the
CM-At Risk
Owner
The CM - At Risk (CMc) method of project delivery is increasingly being utilized by private and public sector clients,
since it blends assessment of pricing, scheduling and qualifications while limiting the owners risk. This method features a
+
Architect/Engineer
cohesive three-party team of owner, separate architect-designer, and the construction firm serving as construction manager.
Under separate contracts, both the architect-designer and construction manager are chosen via the qualifications-based
selection process.
Advantages
GMP assures owner that project will
be constructed for amount signed and
within a set duration in the contract
Non-adversarial effort reduces risks for
owner, architect-designer, and
Disadvantages
Potential for less competition because of lack
of qualified CMs
The CMc firm enters into a GMP contract with the owner, which assures the project will be constructed for no more construction manager
includes CM in the mix, the transition from design to CM is extension of owners staff, to a point,
than the amount designated in the signed contract, and no longer than the agreed completion date. Utilizing a GMP Selection based on construction firms Saves time and money by reducing because they still have an at risk contract
construction is also more apt to be a smooth one. Within the provides peace of mind to the owner, since any budget overruns on the contracted scope of work in excess of the GMP is qualifications change orders
overall label of construction management there are two Construction manager holds all subcontracts
Construction assumed by the CMc. If the project is delivered below the GMP, cost savings are typically shared between the owner and Pre-construction services are provided
different project delivery systems, with variances related Option to fast-track by phasing bid
Manager the CMc. by qualified individuals that are current packages allows quicker facility usage
primarily to pricing and contractual obligations: with construction costs and trends
Getting past budget concerns allows the project to proceed with regular open communication and the knowledge that
* CM At-Risk The CM holds the subcontractor and Allows for more owner control in

contractor based on qualifications and then the contractors
fee is negotiated. The owner has open book access to all
project costs. This includes participation in the bidding and
selection of subcontractors and vendors, which represents
the most costly component of development. Throughout the
course of construction, the construction manager basically
serves as an extension of the owners staff.
Many owners select CM knowing that the lowest initial
price derived through the design/bid/build bidding process
does not always ultimately turn out to be the lowest price nor
the best value by the end of construction. When a project






the CM always has the owners best interests in mind. A previously established scope of work designates pre-construction Produces more predictable and selecting CMc staff and
vendor contracts, taking on the financial risk of the project by manageable results through a subcontractors
services, such as estimating, scheduling, constructability reviews, value analysis, specification review, and quality control collaborative effort
providing the owner with a guaranteed maximum price (GMP) review, that save the owner both time and money.
for construction and a set date for completion, along with a Subcontractors
Vendors and subcontractors can be pre-qualified based on bonding, experience and performance requirements. In the Increases opportunity for local
negotiated professional fee (typically a percentage of the cost participation of vendors, materials
case of public sector projects, this exercise can greatly enhance the participation by local suppliers and subcontractors who suppliers, and subcontractors
of construction) for the CM services. This GMP is best will be included in the competitive bidding. Contracts with the subcontractors and vendors are then held with the CM firm,
provided at the completion of the construction documents. who assumes responsibility for their performance.
* CM Agency Under this form of CM, the owner holds
Subcontractors are competitively bid to the Construction Manager.
all subcontractor and vendor contracts and the CM serves as
an extension of their staff, managing all the contracts, but
holding no financial risk. The risk is contracted with each
prime contractor/subcontractor.

Construction Management Process Time

Savings Owner
24 Months

{
Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

Select Design Professional

Select Construction Management
Professional
CM-Agency +
Programming*
In the CM-Agency (CMa) project delivery method, also known as Pure CM, the construction manager acts as an Disadvantages
Schematic Designs Advantages
extension of the owners staff and the general contractor role is eliminated. In this scenario the owner, rather than the
general contractor or construction manager-at risk, holds all subcontracts. Essentially, each subcontractor becomes a Architect/Engineer CM-Agency is truly on the owners side Non-adversarial effort reduces risks for Multiple contracts held by owner can create
Pre-Construction Services as the risk is contracted to the prime owner, architect-designer, and administrative challenges
Estimating prime contractor and is responsible for cost, schedule, quality, and safety on the project. The construction manager contractor construction manager
Value Analysis oversees these tasks in the role as a consultant. The construction manager competitively bids the different elements of Potential challenge to determine who is at
Quality Control Review Selection based on construction firms Saves time and money by reducing fault if project is delivered late with multiple
Spec Review
construction to trade contractors (or subcontractors), such as electrical, mechanical, plumbing, framing, etc. Construction qualifications change orders prime contracts
Manager
Pre-construction services are provided Owner holds all subcontracts

Design Development
by qualified individuals that are current
with construction costs and trends Option to fast-track by phasing bid
Construction Documents packages allows quicker facility usage
Produces more predictable and
Phased Bid Packages Subcontractors Allows for more owner control in
manageable results through a
collaborative effort of entire team selecting CMa staff and
Construction subcontractors
Increases opportunity for local
Balance of Phased Bid Packages participation of vendors, materials
Occupancy
Subcontractors are competitively bid to the Construction Manager.
suppliers, and subcontractors

*Owners, Architect and CM Involvement Owner Review and Involvement Project Completion

The Primer
Construction Management Methods
The Construction Management (CM) method of project
delivery provides the owner with flexibility in selecting a
contractor based on several factors other than solely on price.
Those qualifications include project-specific expertise, history
of performance and stability.
Under a CM method of delivery, the owner selects the
CM-At Risk
Owner
The CM - At Risk (CMc) method of project delivery is increasingly being utilized by private and public sector clients,
since it blends assessment of pricing, scheduling and qualifications while limiting the owners risk. This method features a
+
Architect/Engineer
cohesive three-party team of owner, separate architect-designer, and the construction firm serving as construction manager.
Under separate contracts, both the architect-designer and construction manager are chosen via the qualifications-based
selection process.
Advantages
GMP assures owner that project will
be constructed for amount signed and
within a set duration in the contract
Non-adversarial effort reduces risks for
owner, architect-designer, and
Disadvantages
Potential for less competition because of lack
of qualified CMs
The CMc firm enters into a GMP contract with the owner, which assures the project will be constructed for no more construction manager
includes CM in the mix, the transition from design to CM is extension of owners staff, to a point,
than the amount designated in the signed contract, and no longer than the agreed completion date. Utilizing a GMP Selection based on construction firms Saves time and money by reducing because they still have an at risk contract
construction is also more apt to be a smooth one. Within the provides peace of mind to the owner, since any budget overruns on the contracted scope of work in excess of the GMP is qualifications change orders
overall label of construction management there are two Construction manager holds all subcontracts
Construction assumed by the CMc. If the project is delivered below the GMP, cost savings are typically shared between the owner and Pre-construction services are provided
different project delivery systems, with variances related Option to fast-track by phasing bid
Manager the CMc. by qualified individuals that are current packages allows quicker facility usage
primarily to pricing and contractual obligations: with construction costs and trends
Getting past budget concerns allows the project to proceed with regular open communication and the knowledge that
* CM At-Risk The CM holds the subcontractor and Allows for more owner control in

contractor based on qualifications and then the contractors
fee is negotiated. The owner has open book access to all
project costs. This includes participation in the bidding and
selection of subcontractors and vendors, which represents
the most costly component of development. Throughout the
course of construction, the construction manager basically
serves as an extension of the owners staff.
Many owners select CM knowing that the lowest initial
price derived through the design/bid/build bidding process
does not always ultimately turn out to be the lowest price nor
the best value by the end of construction. When a project






the CM always has the owners best interests in mind. A previously established scope of work designates pre-construction Produces more predictable and selecting CMc staff and
vendor contracts, taking on the financial risk of the project by manageable results through a subcontractors
services, such as estimating, scheduling, constructability reviews, value analysis, specification review, and quality control collaborative effort
providing the owner with a guaranteed maximum price (GMP) review, that save the owner both time and money.
for construction and a set date for completion, along with a Subcontractors
Vendors and subcontractors can be pre-qualified based on bonding, experience and performance requirements. In the Increases opportunity for local
negotiated professional fee (typically a percentage of the cost participation of vendors, materials
case of public sector projects, this exercise can greatly enhance the participation by local suppliers and subcontractors who suppliers, and subcontractors
of construction) for the CM services. This GMP is best will be included in the competitive bidding. Contracts with the subcontractors and vendors are then held with the CM firm,
provided at the completion of the construction documents. who assumes responsibility for their performance.
* CM Agency Under this form of CM, the owner holds
Subcontractors are competitively bid to the Construction Manager.
all subcontractor and vendor contracts and the CM serves as
an extension of their staff, managing all the contracts, but
holding no financial risk. The risk is contracted with each
prime contractor/subcontractor.

Construction Management Process Time

Savings Owner
24 Months

{
Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

Select Design Professional

Select Construction Management
Professional
CM-Agency +
Programming*
In the CM-Agency (CMa) project delivery method, also known as Pure CM, the construction manager acts as an Disadvantages
Schematic Designs Advantages
extension of the owners staff and the general contractor role is eliminated. In this scenario the owner, rather than the
general contractor or construction manager-at risk, holds all subcontracts. Essentially, each subcontractor becomes a Architect/Engineer CM-Agency is truly on the owners side Non-adversarial effort reduces risks for Multiple contracts held by owner can create
Pre-Construction Services as the risk is contracted to the prime owner, architect-designer, and administrative challenges
Estimating prime contractor and is responsible for cost, schedule, quality, and safety on the project. The construction manager contractor construction manager
Value Analysis oversees these tasks in the role as a consultant. The construction manager competitively bids the different elements of Potential challenge to determine who is at
Quality Control Review Selection based on construction firms Saves time and money by reducing fault if project is delivered late with multiple
Spec Review
construction to trade contractors (or subcontractors), such as electrical, mechanical, plumbing, framing, etc. Construction qualifications change orders prime contracts
Manager
Pre-construction services are provided Owner holds all subcontracts

Design Development
by qualified individuals that are current
with construction costs and trends Option to fast-track by phasing bid
Construction Documents packages allows quicker facility usage
Produces more predictable and
Phased Bid Packages Subcontractors Allows for more owner control in
manageable results through a
collaborative effort of entire team selecting CMa staff and
Construction subcontractors
Increases opportunity for local
Balance of Phased Bid Packages participation of vendors, materials
Occupancy
Subcontractors are competitively bid to the Construction Manager.
suppliers, and subcontractors

*Owners, Architect and CM Involvement Owner Review and Involvement Project Completion