Project Delivery MethodsBy: Stacy Abernathy

ThreeDelivery Methods

Design-Bid-BuildDesign-BuildIntegrated Project Delivery

Design-Bid-Build

Owner

GCA/E

Advocating for Progress

While studies show that alternative delivery systems routinely result in safer, faster, lower cost and higher quality projects, the vast majority of projects are still delivered in the traditional Design-Bid-Build lump sum manner with the designers and the builders operating in separate silos and often pitted against each other. Why? Political expediency! (p. 22)

Kenig, M., Allison, M., Black, B., Burdi, L., Colella, C., Davis, H., & Williams, M. (2010). Integrated project delivery for public and private owners. National Association of State Facilities Administrators (NASFA), Construction Owners Association of America (COAA), The Association of Higher Education Facilities Officers (APPA), Associated General Contractors of America (AGC) and American Institute of Architects (AIA).

lowest possible initial price as highest priority

bidders look for future change orders in contract document errors and ambiguities

utilize lowest price subcontractors to increase profit

look for every opportunity to increase profit during the project

SolvingD-B-BDisadvantages

Design-Build Owner C/A/E

Integrated Project Delivery

Owner

ConstructorsA/E

The rest of the team

Owner

TectonA/E

Constructors

Constructors

Constructors

Constructors

Constructors

Constructors

I-P-DAdvantages

clarify errors and ambiguity to eliminate surprise change orders

cover the entire scope at a fair priceuse lowest price qualified contractors to protect owners

look for every opportunity to create cost savings

I-P-DEarly-inTeam

I-P-DEarly-inTeam

The Advantage

Community Schools of Frankfort

Compare

Design-Bid-Build Integrated

Project Delivery

2400 SF800 SF Drive Thru

$700,000$300/SF

3888 SF900SF Drive Thru

$930,000$240/SF

I-P-D Mark-upReduction

CM

GC - 13%

GC Project Management

13%13%13%13%13%13%13%13%13%13%13%13%A/E

Subcontractsor

Prime Contracts

RiskD-B-B vs. I-P-D

Design-Bid-Build

buys all risk at the outset

Integrated Project Delivery

eliminates risk where possible

and micromanages

unavoidable risk

Risk Management

Design Scope creep Budget Schedule Site conditions Weather Bid document clarity Contractor qualifications Safety Labor Economy

Risk Management Ri

sk M

anag

ed

Risk

Shi

ftin

g

Savi

ngs

Proj

ect

Cos

t

I-P-DRiskManagement

Example

Cold Weather Budget

$50,000

Excavation $7,899Blankets-Aggregate $2,271Blankets-Concrete $3,648Concrete Mix $959Bottled Gas $2,928Heaters $4,781Electric hookup $795Enclosures $10,286Actual $33,567

I-P-D is the Tecton Way

The American Institute of Architects AIA defines IPD as “a project delivery approach that integrates people, systems, business structures, and practices into a process that collaboratively harnesses the talents and insights of all project participants to optimize project results, increase value to the owner, reduce waste, and maximize efficiency through all phases of design, fabrication, and construction” AIA California Council 2007. (p. 816)

Kent, D. C., & Becerik-Gerber, B. (2010). Understanding construction industry experience and attitudes toward integrated project delivery. Journal of construction engineering and management.

Always on time . . .

. . . always under budget