Are Your Project Delivery Methods Driving Success For Your Firm?
A TEDIOUS BUT IMPORTANT ARTICLE
Project delivery methods are critical to the success of any A/E firm. They determine how projects are executed, how they're managed, and how they're completed. Ultimately, they are enormously important in determining the overall success of both the client and your firm. While there are five project delivery methods available, most firms rely on the most traditional method without carefully considering the alternatives. Taking time to visit this topic, and appreciating the impact and value each method can have on your firm, is today’s task. I will also be including case studies of successes and failures for each project delivery method discussed.
Understanding Project Delivery Methods
Each project delivery method has its own advantages and disadvantages in terms of cost, time, quality, and risk management. The most common types of project delivery methods in the A/E industry include:
Design/Bid/Build (DBB)
Construction Management at Risk (CMaR)
Design/Build at-Risk (DBaR)
Design/Build Not-at-Risk (CBNaR)
Integrated Project Delivery (IPD)
Design/Bid/Build (DBB):
This is a project delivery method in which the owner contracts with an architect to design the project, and then contracts with a contractor to build it. The architect and contractor work separately, and there is typically a bidding process for the construction contract. This is the traditional project delivery method in the United States, commonly employed for public projects. It is also a suitable choice for projects where the owner desires a high degree of control over the design process.
Here are some of the advantages of DBB:
Owner has a high degree of control: The owner has a high degree of control over the design process because they are directly contracting with the architect. This can be particularly helpful for projects where the owner has specific requirements or wants to ensure that the design meets their needs.
Competitive bidding: The contractor is selected through a competitive bidding process, which helps to ensure that the owner gets the best possible price.
Well-established process: DBB is a well-established process with clear roles and responsibilities. This can help to reduce risk and uncertainty for the owner.
Here are some of the disadvantages of DBB:
Can be slow: The design and bidding process can take several months or even years, which can delay the start of construction.
Can be disruptive: The design and bidding process can disrupt the flow of work on the project site.
Can be more expensive: DBB can be more expensive than other project delivery methods because there are two separate contracts.
Construction Management at Risk (CMaR):
This is a project delivery method in which the construction manager (CM) is hired by the owner to oversee the entire project, from design to construction. The CM is typically responsible for developing the project schedule and budget, as well as coordinating the work of the architect and contractor. The CM also assumes some or all of the risk for cost overruns.
With CMaR, the CM is hired under a separate contract from the architect. This allows the CM to focus on the construction aspects of the project, while the architect can focus on the design. The CM and architect work together to develop a project that meets the owner's needs and budget.
Here are some of the advantages of CMaR:
Reduced risk for the owner: The CM assumes some or all of the risk for cost overruns, which can help to protect the owner's budget.
Increased efficiency: The CM can help to streamline the construction process by coordinating the work of the architect and contractor.
Improved communication: The CM serves as a single point of contact for the owner, which can help enhance communication and coordination throughout the project.
Here are some disadvantages of CMaR:
Increased cost: The CM typically charges a fee for their services, which can increase the overall cost of the project.
Reduced flexibility: The CM is typically involved in the project from the outset, which can limit the owner's ability to make changes to the design or scope of work.
Increased risk: The CM assumes some or all of the risk for cost overruns, which can shift risk from the owner to the CM.
Here are some additional things to consider when choosing CMaR:
The size and complexity of the project: CMAR is typically more expensive for small projects, but it can be a cost-effective option for large or complex projects.
The owner's experience with construction: CMAR is a more complex project delivery method, making it a good choice for owners with experience in construction.
The availability of qualified CMs: Not all CMs have experience with CMAR, so it is important to select a CM who has the experience and expertise to manage your project.
Design/Build At-Risk (DBaR):
The owner hires a single firm to both design and build the project. This can be a more efficient and streamlined process, but it is important that your firm be eminently qualified in both design and construction. In this situation, a single legal entity has full responsibility for the design and construction (means and methods). This method can be faster and more efficient, but it can also be more expensive and (by definition), places the professional at a higher degree of risk.
Design/Build Not-At-Risk (DBNaR):
The owner hires a single firm to both design and build the project. However, the design firm will legally separate itself from the construction entity while still having a responsibility to deliver the full project to the owner. The AE professional will hold a separate contract with the builder (a company they have developed a strong relationship with) and will become the prime subcontractor.
Integrated Project Delivery (IPD):
This is a collaborative approach to project delivery that integrates the design, construction, and ownership teams into a single team. This approach is designed to enhance communication, coordination, and decision-making throughout the project lifecycle, ultimately leading to improved project outcomes.
Here are some of the benefits of using IPD:
Improved communication and collaboration: IPD breaks down the traditional silos between design and construction, leading to enhanced communication and collaboration between the teams. This can lead to a more efficient and streamlined project process.
Increased innovation: IPD encourages collaboration and innovation among the team members. This can lead to more creative and innovative solutions to project challenges.
Reduced risk: IPD can help to reduce risk for all parties involved in the project. This is because the team members are working together to identify and mitigate risks early on in the project.
Improved quality: IPD can help enhance the project's quality. This is because the team members are working together to ensure that the project meets the owner's needs and expectations.
Increased value: IPD can help improve the project's value for the owner. This is because the team members are collaborating to identify ways to enhance the project's functionality, efficiency, and sustainability.
The Impact of Project Delivery Methods on Success
As an A/E professional, you know that project delivery methods can make or break your firm's success. Different project delivery methods have their own unique advantages and disadvantages, which can impact a firm's success in terms of cost, schedule, quality, and risk management.
Design-bid-build (DBB) is a traditional project delivery method that can be efficient and cost-effective, but it can be slow and disruptive.
Construction Management at Risk (CMaR) is a collaborative project delivery method that can reduce risk and improve communication; however, it may be more expensive.
Design/Build at Risk (DBaR) is a single-point-of-contact project delivery method that streamlines the process and improves communication, but it can be more expensive.
Design/Build Not-at-Risk (DBNaR) is a cost-effective project delivery method that gives the owner more control over the design, but it can be more disruptive.
Integrated Project Delivery (IPD) is a collaborative project delivery method that can enhance communication, innovation, and quality; however, it can also be more complex and time-consuming.
To illustrate the impact of project delivery methods on success in the A/E industry, let's look at some case studies.
DESIGN/BUILD CASE STUDIES
DBB Success
The Burj Khalifa in Dubai is a successful example of a DBB project. The project was completed on time and on budget, and the Burj Khalifa is now the tallest building in the world. The project was delivered by a team of architects, engineers, and contractors who worked together collaboratively to create a world-class landmark.
DBB Fail
The Millennium Dome in London is an example of a DBB project that failed. The project was plagued by delays, cost overruns, and design flaws. The Dome was eventually opened, but it proved to be a financial failure and was closed after only a few years. The project was delivered by a team of contractors who were not able to work together effectively.
Here are some tips for success when using the DBB project delivery method:
Choose a team of experienced and qualified professionals.
Carefully plan the project and develop a realistic schedule and budget.
Communicate effectively with all stakeholders throughout the project.
Be prepared to address unexpected challenges and delays.
CONSTRUCTION MANAGEMENT AT RISK CASE STUDIES
CMaR Success
The new University of California, San Francisco (UCSF) Mission Bay campus is a successful example of a CMaR project. The project was completed on time and on budget, and the new campus has been praised for its innovative design and its sustainability features. The project was delivered by a team of architects, engineers, and contractors who worked together collaboratively to create a world-class academic environment.
CMaR Fail
The new Los Angeles Rams and Chargers stadium in Inglewood, California, is an example of a CMaR project that failed. The project was plagued by delays, cost overruns, and quality control issues. The stadium was eventually completed, but it was far more expensive and disruptive than originally planned. The project was delivered by a team of contractors who were not able to work together effectively.
Here are some tips for success when using the CMaR project delivery method:
Choose a team of experienced and qualified professionals.
Carefully plan the project and develop a realistic schedule and budget.
Communicate effectively with all stakeholders throughout the project.
Be prepared to address unexpected challenges and delays.
DESIGN/BUILD AT RISK CASE STUDIES
DBaR Success:
The new San Francisco Museum of Modern Art (SFMOMA) is a successful example of a DBaR project. The project was completed on time and on budget, and the museum has been praised for its innovative design and its sustainability features. The project was delivered by a team of architects, engineers, and contractors who worked together collaboratively to create a world-class museum.
DBaR Fail:
The Big Dig, a massive public works project in Boston, is an example of a DBaR project that failed. The project was plagued by delays, cost overruns, and environmental problems. The project was eventually completed, but it proved to be far more expensive and disruptive than originally planned. The project was delivered by a team of contractors who were not able to work together effectively.
Here are some tips for success when using the DBaR project delivery method:
Choose a team of experienced and qualified professionals.
Carefully plan the project and develop a realistic schedule and budget.
Communicate effectively with all stakeholders throughout the project.
Be prepared to address unexpected challenges and delays.
DESIGN/BUILD NOT-AT-RISK CASE STUDIES
DBNaR Success:
The new Googleplex in Mountain View, California, is a successful example of a DBNaR project. The project was completed on time and on budget, and the new headquarters has been praised for its innovative design and its sustainability features. The project was delivered by a team of architects, engineers, and contractors who collaborated to create a world-class workplace.
DBNaR Fail:
The new Los Angeles Rams and Chargers stadium in Inglewood, California, is an example of a DBNaR project that failed. The project was plagued by delays, cost overruns, and quality control issues. The stadium was eventually completed, but it was far more expensive and disruptive than originally planned. The project was delivered by a team of contractors who were not able to work together effectively.
Here are some tips for success when using the DBNaR project delivery method:
Choose a team of experienced and qualified professionals.
Carefully plan the project and develop a realistic schedule and budget.
Communicate effectively with all stakeholders throughout the project.
Be prepared to address unexpected challenges and delays.
INTEGRATED PROJECT DELIVERY CASE STUDIES
IPD Success
The new Apple Campus 2 in Cupertino, California, is a successful example of an IPD project. The project was completed on time and on budget, and the new campus has been praised for its innovative design and its sustainability features. The project was delivered by a team of architects, engineers, contractors, and suppliers who collaborated to create a world-class workplace.
IPD Fail
The new WeWork headquarters in New York City is an example of an IPD project that failed. The project was plagued by delays, cost overruns, and quality control issues. The building was eventually completed, but it was far more expensive and disruptive than originally planned. The project was delivered by a team of contractors who were not able to work together effectively.
Here are some tips for success when using the IPD project delivery method:
Choose a team of experienced and qualified professionals.
Carefully plan the project and develop a realistic schedule and budget.
Communicate effectively with all stakeholders throughout the project.
Be prepared to address unexpected challenges and delays.
Choosing the Right Project Delivery Method
Choosing the right project delivery method can be a daunting task for A/E firms, but it's a critical decision that can make or break a project's success.
So, what factors should you consider when making this decision?
First and foremost, you need to consider your project's scope, complexity, budget, and client preferences.
A complex project may require more collaboration and communication between the design and construction teams, making design-build a better option.
A project with a tight budget may require a more cost-effective approach, such as the design-bid-build method.
And a client with a preference for greater control may lean towards construction management.
Once you've identified the factors that matter most for your project, it's time to evaluate the different project delivery methods and make the right decision.
Some strategies for doing this include:
Researching the pros and cons of each method
Examining case studies and examples of successful and unsuccessful projects
Consulting with industry experts and peers
Conducting a risk analysis for each method
It's also important to evaluate the success of the project delivery method being used on your projects.
One way to achieve this is by establishing metrics that track project performance, including cost, schedule, quality, and client satisfaction.
By regularly analyzing these metrics, you can identify areas for improvement and make incremental changes to your project delivery methods.
Remember, there's no one-size-fits-all solution when it comes to project delivery methods. Each project is unique, and it's important to tailor the approach to fit the specific needs and goals of the project.
In fact, hybrid approaches that combine different project delivery methods can often provide the best of both worlds - greater control, communication, and cost-effectiveness.
By carefully evaluating your options, considering the factors that matter most, and continually improving your project delivery methods, you can choose the right project delivery method for your project and increase your chances of success in the A/E industry.
Best Practices for Implementing Project Delivery Methods
Now that you've chosen the perfect project delivery method for your project, it's time to put it into action! It can be a daunting task, but with the right strategies and best practices, you'll be well on your way to a successful outcome.
First things first - communication is key! You need to be transparent with all the stakeholders, from the client to the design and construction teams. Regular check-ins and progress updates can keep everyone informed and help address any potential issues promptly.
Managing the project effectively is also important. You don't want to be caught unprepared or with a mess on your hands. You'll need a clear plan in place to monitor progress regularly and to mitigate risks proactively. Keep your eyes open and stay alert for any issues that might crop up. And remember, there's always a solution! It might not be the perfect one, but it will work.
Conflicts can arise, but remember - to stay cool, calm, and collected (even if you have to fake it). Empathy and professionalism can go a long way in resolving conflicts and advancing the project.
Technology can also be your friend, especially when it comes to project delivery. BQE CORE is an excellent all-in-one firm management software that can streamline communication, enhance productivity, and increase efficiency. Use this tool to your advantage and take full advantage of all of its project management features.
Finally, remember that implementing project delivery methods is a continuous process. Keep an eye on project performance and identify areas for improvement. By continuously refining your approach and adjusting as needed, you'll keep things on track and ensure you're always delivering the best possible outcomes.
So, keep these best practices in mind, stay positive, and don't forget to have a little fun along the way! You got this.
