BUILDING YOUR TEAM
Options For Delivering Construction Projects
TERMS TO KNOW
Construction Management at Risk (CM@R)
Early in the process, the Owner hires both an Architect and a Construction Manager to plan, design, and build the structure together.
Construction Manager
Firm hired by the Owner early in the planning/design phase to act as the Owner’s advocate during both the preconstruction and construction phases of the project. In many cases, the CM also acts as the Contractor during the construction phase of the project.
Contractor
A builder who enters into a contract with the Owner for the construction phase of a project, and who takes full responsibility for the successful completion of construction. A Contractor may also enter into subcontracts with others to perform specific parts or phases of the project.
Delivery Method
The type of relationship, or team, chosen by the Owner to design and build a construction project.
Design-Bid-Build
The Owner hires an Architect to design the building, then invites General Contractors to bid on building it exactly as drawn, then hires the lowest bidder.
Design-Build
The Owner chooses a General Contractor who then selects an Architect to partner during design/construction.
Designers
Architects and/or Engineers responsible for planning and ultimately producing drawings and specifications for buildings.
Guaranteed Maximum Price (GMP)
The total cost that the General Contractor promises not to exceed without authorization from the Owner.
Preconstruction
The stage of planning a construction project prior to starting construction which includes constructability, cost, and schedule reviews. At this stage, challenges are identified, solutions offered, and predictability and success are improved.
Scope
The complete range of construction drawings and specifications that will be considered in the process of calculating the construction costs and schedule.
Subcontractor
A specialized contractor who enters into a contract with the General Contractor to perform specific parts or phases of the construction project.
Construction Management at Risk
Best Suited For
More unique or challenging new construction or renovation projects that are schedule sensitive, subject to change, require preconstruction services, or require a high level of coordination, such as tight sites, occupied sites, ongoing business operations, unusual products, LEED® certification, or regulatory agency compliance.
Schedule
Advantages
• Open book estimating and accounting
• Guaranteed Maximum Price can be established earlier in the process than Design-Bid-Build
• Early involvement in the design process reduces the possibility of change orders
• Preconstruction constructability review, logistics planning, scheduling and budgeting by the Construction Manager will reduce document errors and produce the lowest first and final project costs
• All phases of the work are competitively bid among qualified Subcontractors
• Faster project delivery time frame than Design-Bid-Build
• Fast-track construction possible
• Owner controls the quality of Contractors and Subcontractors
• Selection of Construction Manager based on qualifications and fees
• Both Architect and Construction Manager are accountable to the Owner
• Financial strength of subcontractors is monitored prior to, and during, construction to assess the subcontractors’ abilities to complete the project and honor warranties after completion
• Greater ability to increase HUB participation due to more meaningful outreach efforts
• Open book processes are in place to process scope changes in a timely manner for lower costs
• An advocate relationship decreases possibility of disputes
Structure
Subcontractors and Suppliers
Disadvantages
• Longer project delivery time frame than Design-Build
• Construction Manager must have strong preconstruction abilities
• Architect must be open to collaborative design
• Guaranteed Maximum Price established later in process than Design-Build
• Details not included in construction documents could increase costs
• Owner must trust that the Construction Manager’s pricing is thorough and competitive
Design-Build
Best Suited For
Simple new construction projects that are highly schedule sensitive and are not subject to scope changes
Structure
Owner
Contractor
Designers
Subcontractors and Suppliers
Schedule
Advantages
• Shortest project delivery time frame
• Fast-track construction possible
• Selection of Contractor based on qualifications, fees, and general conditions
• Contractor is single point of contact for the Owner during preconstruction and construction
• Preconstruction input from Contractor on budget, planning, or constructability
• Lowest design costs
• No Change Orders for design errors or omissions
• Guaranteed Maximum Price established very early in process
• Open book estimating and accounting
Disadvantages
• Must have well-defined budget and performance requirements
• Only Contractor is accountable to the Owner
• No ability for Owner to control the quality of Architect
• No ability for Owner to control the quality of Subcontractors
• Fully-defined construction scope may not be established during design
• Over emphasis on costs may compromise quality
• Reduced time frame for user group reviews
• Typically has the least ability to handle changes in scope
• Often has no construction administration performed by the Architect
Design-Bid-Build
Best Suited For
Simple new construction projects that are not schedule sensitive or subject to scope changes
Schedule
Advantages
• Both Architect and Contractor are accountable to the Owner
• Architect is single point of contact for the Owner during preconstruction
• Fully-defined construction scope established during design
• Simple Contractor selection process
• Competitive bidding by Contractors produces a defensible, low first cost
Structure
Subcontractors and Suppliers
Disadvantages
• Longest project delivery time frame
• Often higher design costs
• No preconstruction input from Contractor on constructability, logistics planning, scheduling, or budget
• Owner warrants to the contractor that the drawings are error-free
• No ability for Owner to control the quality of Contractors or Subcontractors
• More potential for redesign time and increased costs if bids don’t meet budget
• Often higher project costs due to Change Orders
• Adversarial relationships increase disputes and possibilities of litigation
EXCEPTIONAL EXPERIENCE
