Choosing the Right Path: Construction Delivery Methods Explained
Key Construction Delivery Methods
Navigating construction can be complex, especially when choosing the best delivery method. At Icon Structures, we are not scared to hard bid work. We pride ourselves on being competitive on all construction delivery methods.
This guide covers various construction delivery methods to help you decide.
Design-Bid-Build
The Design-Bid-Build method involves separate contracts for design and construction. It starts with design, followed by contractor bidding, and then construction.
Pros: Clear project scope and design before construction starts. Competitive bidding can potentially lower costs.
Cons: Longer project timeline due to sequential phases.Potential for disputes between designer and contractor.
Best For: Projects with well-defined requirements where time is less of a constraint and the owner prefers a straightforward approach.
Design-Build Process
The Design-Build method streamlines projects by having one entity handle both design and construction, fostering better collaboration and cohesive execution.
Pros: Streamlined communication between design and construction teams. Faster project completion due to overlapping design and construction phases.
Cons: Less owner control over design specifics. Potential for increased costs if changes are needed during construction.
Best For: Projects requiring fast-tracking and a high degree of collaboration between the design and construction teams.
Construction Manager At Risk (CMAR)
The CMAR method involves an early-engaged construction manager who assumes project cost risks, allowing for input during the design phase to identify issues early.
Pros: Early cost certainty with a guaranteed maximum price. Enhanced collaboration during the design phase.
Cons: Potential for increased costs if the project scope changes. Requires close management to ensure the budget is maintained.
Best For: Projects where cost certainty and early input from a construction manager are critical.
Integrated Project Delivery (IPD)
IPD is a collaborative approach involving the owner, designer, and contractor from the start, aiming to optimize outcomes by aligning interests through shared risks and rewards.
Pros: Improved collaboration and communication among stakeholders. Enhanced efficiency and reduced waste through a collective approach.
Cons: Complex coordination and negotiation among multiple parties. Requires a high level of trust and commitment from all involved.
Best For: Complex projects where collaboration and shared goals can significantly impact success.
Factors to Consider When Choosing a Method
Choosing the right construction delivery method is crucial. Evaluating complexity, budget, timeline, risk, and stakeholder preferences aids decisions and ensures smoother progress.
Project Complexity: Complex projects with intricate designs and technical challenges may benefit from collaborative methods like Design-Build or IPD.
Budget and Cost Control: Methods like Design-Bid-Build can lower initial costs, while Design-Build and CMAR offer better cost control through early contractor involvement.
Timeline and Speed: If time is a critical factor, methods like Design-Build and CMAR can expedite the process by overlapping design and construction phases.
Risk Allocation: Consider how risks are distributed. Design-Build and CMAR allow for shared risk between the owner and contractor, whereas DBB places more risk on the contractor.
Quality Control: Collaborative methods with early contractor involvement can lead to better quality control and fewer change orders.
Owner’s Involvement: Some owners prefer a hands-on approach, while others may seek a more streamlined process.
Experience and Expertise: The project team’s familiarity with a particular method can impact its successful implementation.
Legal and Regulatory: Different delivery methods may have varying legal and contractual requirements.