your deliver method... …pick it early 20delivery%20menthods%20rev%203.ppt
TRANSCRIPT
Your Deliver Method...
…Pick it Early
http://www.caccfc.org/Events/Annual_Conference_03/Your%20Delivery%20Menthods%20Rev%203.ppt
Owner and General Contractor
Responsible for ESH compliance
Owner and Multiple Primesoption 1
A/E-Architect/EngineerCM- Construction Management CoPD-Project Development
Each responsible for ESH compliance
Owner and Multiple Primesoption 2
A/E-Architect/EngineerCM- Construction Management CoPD-Project Development
Make 1 Prime contractor responsible
for site ESH (lead)
Owner and Construction Mgmt
Construction Manager
Construction Manager
Construction Mgmt
CM is responsible for overall site ESH compliance
What is an Owner ControllerInsurance Program or OCIP
A centralized and controlled:• Insurance• Loss Control/Safety• Claims Management• program purchased by
Owner covering all contractors and subcontractors of every tier
Owner purchases the insurance for a specific construction project, as opposed to traditional method of contractors purchasing their ownCoverage for that single project. Coverage includes: Project Professional Liability, General Liability, ExcessLiability, Environmental Liability, Builder’s RiskWho’s covered? Owner, construction managers,general contractors, all subcontractors
Benefits include: Reduced insurance costs Broader and tailored coverage Uniformity and adequacy of coverage for allcontractors and subcontractors Remove barriers of insurance for smaller, DBE firms Higher limits of liability Insurance costs fixed for the term of the project
Overview
• Project Delivery Methods• Design–Bid–Build• CM At-Risk• Multi-Prime (Trade Contracting)• Design-Build
• Contractual Relationships• Scope, Cost & Time Impacts• Risk• Pros & Cons
Project Elements
SCOPE
TIMECOST
Project Success
Project Delivery Methods
• Design-Bid-Build
• CM At-Risk (CM/GC)
• Trade Contracting/Multiple Prime
• Design-Build
Traditional: Design-Bid-Build
Ownership
Management
Primes
Subs
OWNER
Designer Contractor
Subcontractors
Contracts Communication
Traditional: Design-Bid-Build
Ownership
Management
Primes
Subs
OWNER
Designer Contractor
Subcontractors
CM
Contracts Communication
Traditional: Design-Bid-Build
• Three sequential phases
• Four prime players• Owner • Construction Manager• Architect• Contractor
• Three separate prime contracts
Design Bid Build
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
CM at Risk (CM/GC)
Ownership
Management
Primes
Subs
OWNER
Designer
Subcontractors
CM@R
Contracts Communication
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
Design Bid Build
CM at Risk (CM/GC)
• Process• Owner selects Architect & CM@R• Architect designs project• CM@R provides support• At some point GMP defined
(At-Risk relationship established)• Owner & CM@R publicly bid multiple
trade contracts (sub-contractors)• Contracts awarded to lowest bidders• Owner assigns contracts to CM@R• CM@R manages construction• Architect provides oversight
Multiple Prime (Trade Contracting)
Ownership
Management
Primes
Subs
Designer
CM
Trade/Multiple Prime Contractors
OWNER
Contracts Communication
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
Design Bid Build
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
Design-Build
Ownership
Management
Primes
Subs
OWNER
ScopingArchitect
CM
Designer Builder
DesignBuildEntity
Contracts Communication
Design-Build
• Three continuous phases
• Four prime players• Owner• Construction Manager• Scoping Architect• Design- Build Contractor
• Three separate prime contracts
Scoping Documents
Select D/B Design Build
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
Items for Consideration
• Change Orders• Price Confirmation• Risk for:
• Cost• Time• Quality
• Control of • Cost• Time• Quality
Questions?
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
CM at Risk (CM/GC)
• Pros• GC selected (as CM) on qualifications• Design assistance reduces E&O• 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
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
Design/Build
• Pros• Single point responsibility• Tends to be fastest method• Avoids E&O 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
Your Deliver Method...
…Pick it Early
Doug Evans Vice President
Vanir Construction Management