CONSTRUCTION

PROJECT MANAGEMENT
PROJECT DELIVERY METHODS
Project Delivery Methods
A project delivery method is a system designed to
achieve the satisfactory completion of a
construction project from conception to
occupancy.
A project delivery method may employ any one or
more contracting formats to achieve the
delivery.
In vertical construction market, the breakdown is
approximately as follows:
• Design-Bid-Build (DBB) 60%
• Construction Management at Risk (CMAR) 25%
• Design-Build (DB) 15%
• Integrated Project Delivery (IPD) <1%

Top four methods…..

In Horizontal construction market, the breakdown
1. Design – Bid – Build (DBB) is approximately as follows:
2. Design Build (DB) • Design-Bid-Build (DBB) 90%
3. Construction PM and PM Services • Construction Management at Risk (CMAR) < 1%
4. Integrated Project Delivery (IPD) • Design-Build (DB) 9-10%
There are other types but are used seldom. • Integrated Project Delivery (IPD) - 0%
Terms used
Owner: GC:
An individual General Contractor
Realtor Builder
A company or a group of companies Sub-Contractor:
An industry MEP Service providers
A public/Govt. Organization Material merchants
A/E : Masons, Painters, Carpenters etc.,
Architect Drafters, 3D modeling personnel or
Architect Engineer companies

Structural Engineer Licensed Surveyors

Or a group of architects and engineers Equipment lenders

Design Bid Build
This method typically involves,
 design phase
 bid phase
 build or construction phase.
This sequence usually leads to the
completed design, sealed bid, fixed
price contract.
The Designers and GC typically have
their own contracts with various
sub-consultants and subcontractors.
Design Bid Build
Advantages: Disadvantages:
1. Widely applicable and understood 1. Process is longer than other delivery methods
method 2. Owner accepts liability for design in its contract
2. Clearly defined roles for the involved with GC.
parties 3. Coordination between parties is a challenge
3. Construction cost is known beforehand 4. Requires increased oversight and QC by owner
4. In general, govt. and organization level based on contract type
bodies are owners. 5. Construction inputs are missed in design phase
5. Owner has a significant control over
the end product
* These disadvantages holds good in the absence of
a Construction PM.
Design - Build
The owner executes a single contract with an
organization that becomes responsible for both the
design and the construction of the project
Advantages:
1. Singular Responsibility
2. Quality
3. Cost and Time savings
4. Reduced Administrative burden for owner
5. Risk management rests with the organization
not owner
6. The design-builder is responsible for performing
the project Quality Assurance (QA) and Quality
Control (QC)
Design - Build
Disadvantages:
1. Lack of clarity in project brief
2. Agile method (Parallel activities) of designing
and constructing
3. Owner has less control over sub-contractor
and consultants.
4. Owner will have limited view over the
project reports, statuses and money spent
5. Owner shall rely upon the organization’s
reputation
Construction Manager (CM) Services
Owner hires a CM for project management services
CM acts as an advisor to owner either on a portion or
all activities in construction
CM involves in the construction activity at a very early
stage (sometimes even before Design phase)
There are 2 types in this kind of project method
1. Agency CM
 Acts as advisor to Owner for a fee while owner employs
separate design and GC services
 Less Risk
1. At Risk CM – Assumes the position of GC
 Takes responsibilities of GC in addition to advising and
monitoring services
 A CM may outsource major work to sub contractors
Construction Manager (CM) Services
Advantages:
1. A CM is engaged early in the process
2. A project is achieved with near optimal balance
of time, cost and quality features, due to the
opportunities for review of design alternatives as
they are developed.
3. Materials and equipment with long delivery
times can be identified and ordered early in the
process.
4. There may be less exposure to contract claims
and litigation.
Disadvantages:
1. Lack of consistency in contractual
arrangements among different projects.
2. the “agent” construction manager may tend
to emphasize the traditional contractors’ interests
in cost and time savings, to the loss of high-quality
construction.
3. Sometimes the ‘at-risk’ construction manager
enters into contracts with subcontractors, these
contracts are often in the name of the owner;
thus, these subcontractors may look to the owner
for payment, unlike in the DBB method where the
SC’s look to GC for payment.
PM Services
Sometimes the owner decides to turn the entire
project over to an independent manager.
E.g. A large school district or a small town
When a large temporary staff employment is
needed to over see all aspect of projects this
method is used.
Thus the PM manages the project on the Owner’s
behalf.
PM may engage a Construction PM under him to
oversee a portion or entire construction process
Integrated Project Delivery (IPD)
A project delivery method that attempts to spread
the risk, responsibility and liability for project
delivery equally among the primary parties—
the owner - the designer - the builder/GC/PM
whether through partnership agreements or multi-
party contracts.
Compensations in this type comprised of 3
components:
1. Cost Reimbursements to cover costs
2. Incentives for achieving scheduled targets
3. Rewards for achieving defined goals
Advantages:
 The owner gains all the advantages of DB or
CMAR
 The entire team’s interests are aligned with
the project goals making the chance of
success, once underway, extremely high.
Disadvantages:
 Collateral damage if any one of the
participating teams is inefficient
 Being relatively a new concept, outcomes are
not predictable
PDM usage of Contracting Methods
PDM DBB DB CM/PM IPD
Contracting
Methods

Lump-sum Common Common Common Rare

Guaranteed Rare Common Common Rare

Maximum Price

Rare Varies between Varies between Common

Reimbursable firms firms
Architects’ role
Role of an architect in any project method: An A/E design firm shall
1. Plays a major role in facilities construction 1. Take up projects that it is capable of doing
projects 2. Be aware of what kind of project method it is
2. Takes lead responsibility at design phase signing up into
3. QC inspections & built as planned surveys in 3. Have clarity in its roles and relationship with
execution phase participating parties
4. Efficient documentation of drawings at all 4. A healthy relation with all parties to avoid any
levels and CR’s at all levels claims resulting from lack of design-
5. In the service, transport and industrial sectors construction coordination
an Architect role is limited 5. Stick to the deadlines. Except DBB, every
other method demands interim deliverables.
6. Adhere to ethics and code of conduct at all
levels