Your Deliver Method''' Pick it Early

1
Your Deliver Method... Pick it
Early

• Doug Evans
• Vice President
• Vanir Construction Management

2
Introduction

• Fredric Sherman, AIA
• Principal
• HGA Architects
• Lou Shikany
• Construction Program Manager
• Technical Services Division
• County of Alameda
• Tim Murchison
• Project Director
• Vanir Construction Management

3
Overview

• Project Delivery Methods
• DesignBidBuild
• CM At-Risk
• Multi-Prime (Trade Contracting)
• Design-Build
• Contractual Relationships
• Scope, Cost Time Impacts
• Risk
• Pros Cons

4
Project Elements
SCOPE
Project Success
TIME
COST
5
Project Delivery Methods

• Design-Bid-Build
• CM At-Risk (CM/GC)
• Trade Contracting/Multiple Prime
• Design-Build

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Traditional Design-Bid-Build
Contracts
Communication
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Traditional Design-Bid-Build
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Traditional Design-Bid-Build

• Three sequential phases
• Four prime players
• Owner
• Construction Manager
• Architect
• Contractor
• Three separate prime contracts

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Traditional Design-Bid-Build

• Process
• Owner selects CM Architect
• Architect designs project
• CM provides management support
• Owner, CM Architect publicly bid a single prime
  contract
• Contract awarded to low bidder
• General Contractor constructs project
• General Contractor manages sub-contractors
• CM Architect provide oversight

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CM at Risk (CM/GC)
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CM at Risk (CM/GC)

• Three sequential phases
• Three prime players
• Owner
• Architect
• At-Risk CM (General Contractor)
• Two separate prime contracts
• Price Guarantee Point Varies

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CM at Risk (CM/GC)

• Process
• Owner selects Architect CM_at_R
• Architect designs project
• CM_at_R provides support
• At some point GMP defined
• (At-Risk relationship established)
• Owner CM_at_R publicly bid multiple trade
  contracts (sub-contractors)
• Contracts awarded to lowest bidders
• Owner assigns contracts to CM_at_R
• CM_at_R manages construction
• Architect provides oversight

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Multiple Prime (Trade Contracting)
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Multiple Prime (Trade Contracting)

• Three sequential phases
• Three prime players
• Owner
• Architect
• Construction Manager
• Multiple Prime Contracts
• Architect Construction Manager
• Prime Trade Contracts (Sub-Contractors)
• All contracts with Owner

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Multiple Prime (Trade Contracting)

• Process
• Owner selects CM Architect
• Architect designs project
• CM provides management support
• Owner CM publicly bid multiple trade contracts
  (sub-contractors)
• Contracts awarded to lowest bidders
• CM manages construction
• CM Architect provide oversight

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Design-Build
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Design-Build

• Three continuous phases
• Four prime players
• Owner
• Construction Manager
• Scoping Architect
• Design- Build Contractor
• Three separate prime contracts

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Design-Build

• Process
• Owner selects CM Scoping Architect
• Owner, CM Architect develop scoping documents
  (Bridging Documents)
• Selection of Design-Build Entity
• D/B completes design of project
• Owner approves design and authorizes construction
• D/B secures sub-contractors
• D/B manages construction
• CM provides oversight

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Items for Consideration

• Change Orders
• Price Confirmation
• Risk for
• Cost
• Time
• Quality
• Control of
• Cost
• Time
• Quality

20
Questions?
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Traditional Design-Bid-Build

• Pros
• Most common method
• Best understood
• Most well-established law
• Considered best design quality
• Considered lowest initial cost
• Fairest to bidders, level playing field
• Cons
• Low Bid Contractor
• Generally slowest method
• High change order costs
• High litigation

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CM at Risk (CM/GC)

• Pros
• GC selected (as CM) on qualifications
• Design assistance reduces EO
• GMP approach reduces COs
• Reduces claims
• Owner knows costs up front
• Cons
• Not time tested in Public projects
• Some jurisdictions not authorized
• CM has normal GC conflict of interest
• No CM advise during construction

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Multiple Prime (Trade Contracting)

• Pros
• CM remains in fiduciary role
• More project control
• Fast track by major trades
• Clearly identifies sub costs
• Encourages small local contractors
• Reduces bid claim potential
• Cons
• Multiple contracts are burdensome
• Lacks a single point of responsibility
• More control more liability

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Design/Build

• Pros
• Single point responsibility
• Tends to be fastest method
• Avoids EO liability issues
• Maximum transfer of risk
• Cons
• Requires increased owner sophistication
• No normal architect advocacy
• Design quality may be compromised
• Reduces design input by Owner

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Your Deliver Method... Pick it
Early

• Doug Evans
• Vice President
• Vanir Construction Management