Delivery Methods
Historically, public and private entities have opted for the competitive "hard bid" or negotiated bid as their construction delivery method. However, changes in the construction industry have created alternative methods that allow for greater cooperation between owners, design consultants and contractors as well as lower, more defined final costs.
Perhaps the greatest advantage to the owner is that by using these newer methods, they can select their contractors based on performance and reputation instead of costs alone. The charts below highlight some of the differences between each of the methods:
1. Traditional Bid
- Lowest initial price
- Potential for change orders and claims very high
- No contractor involvement in design phase
- Litigation potential very high
- Final price unknown
2. Design/Build Approach
- Selection based on best qualified proposed design
- Single point of responsibility
- Eliminates "finger pointing" between GC and A/E
- Time and growth costs minimized
- Shorter design/ construction phase
3. Program Management Approach
- Staff Extension of Owner
- PM can be involved in operations, design, construction and maintenance
- PM has no liability for cost and schedule control
- PM has no control over trade contractors
4. Construction Manager At-Risk Approach
- Selection based on reputation, quality of work and past performance
- CM works with architect to evaluate materials, building systems, costs and schedules during design phase to keep costs low
- CM reviews drawings early in process to minimize conflicts and change orders during construction phase
- Allows "open book" approach to cost which allows owner to participate in analyzing & selecting subcontractors
- CM provides a bonded, guaranteed price for work
- Lowest long-term cost
