The Rest of the Story…Part 1

In our last e-Bits we told you about our client that hired PDMi to manage his capital project. At our kick-off meeting we reviewed the following standard Delivery Methods to determine which one best fit his project.

Design-Bid-Build.  With this method, the Owner enters into a contract with a Professional Architectural/Engineering firm for the design. After a competitive bidding process, bids are analyzed and a contract is executed with the low bidder. The following are true about this method:

  • Cost: Known after the design is complete
  • Schedule: Linear/Sequential
  • Relationships: Based on lowest Bidder

Construction Management. With this method, the Owner enters into two agreements for services. One with a Professional Architectural/Engineering firm for design based on using multiple Prime Contractors. The other is with the Construction Manager to manage the Prime Contractor process. The CM agreement can be “as agent” (Owner has contracts directly with Prime Contractors and assumes risk & rewards) or “at risk” (CM has contracts directly with Prime Contractors and assumes risk & rewards). The following are true about this method:

  • Cost: Known after the design is complete
  • Schedule: Simultaneously/Overlapping
  • Relationships: Negotiated team

Design/Build. With this method the Owner enters into one contract to provide both design and construction. The following are true about this method:

  • Cost: Established during the design process
  • Schedule: Versatile/Fast Tracked
  • Relationships: Trust but verify

Our client chose the Construction Management “as agent” method. His project was on a very fast track and he felt like this method gave him the best chance of completing the work on time and within budget. Different methods work for different projects and there is not a one size fits all. Give me a call and we can talk more about the truths of each method and see which method would best fit your next capital project.

In our next e-Bits I will unpack Contract Methods and the one after that we will look at the sequencing of Planning, Designing, and Implementing a project, in the meantime- Stay Tuned for the Rest of the Story…

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