Capabilities Delivery Methods

Complete Service, with Consistent Quality

Construction delivery methods refer to the way in which a construction project is organized and managed. There are several different delivery methods that can be used, and each delivery method has its own advantages and disadvantages, and the best method for a particular project will depend on the specific needs and goals of the client. Whether your project is $500,000 or $300 million, we can tailor our approach to fit your project’s needs and work with you to find the best approach within your budget.

Construction Management at Risk

Construction management at risk is a type of project delivery method in which a construction manager is hired to provide pre-construction services and assume the risk of delivering a project within a guaranteed maximum price (GMP).

In this arrangement, the construction manager works with the owner to develop the project’s design and budget, and then provides a GMP to the owner. The construction manager is then responsible for delivering the project within the agreed upon GMP, and assumes the risk for any cost overruns. This delivery method allows the owner to have a greater degree of control over the project’s budget and schedule, and it also allows the construction manager to get involved in the project at an early stage and provide value-added services.

The Daxton Hotel
Birmingham, MI

Pros

  • Collaborative effort from project inception
  • Open book competitive pricing
  • Early project involvement guarantees constructability input
  • Involves value analysis during design
  • Improved time of delivery
  • Well defined scope not required to establish contract
  • Owner retains control of Design
  • CM & A/E work as a team in Owner’s interests to establish project scope
  • CM assists during design process with budgeting and schedule
  • Non-adversarial effort reduces risks for Owner
  • CM takes on risk of trade contracts
  • Qualification based selection
  • Owner benefits from cost savings

CONS

  • GMP not established until design is complete, or when mutually agreed upon
  • There is a delicate balance between establishing the proper amount of contingency while establishing the GMP.
  • The more risk that is injected into the CM’s GMP results in higher soft cost/contingencies which can impact the amount of scope programmed into the project.

Construction Management Agency

Construction management agency is a type of project delivery method in which a construction manager is hired by the owner to provide construction management services on a fee basis.

In this arrangement, the construction manager acts as the owner’s agent and is responsible for overseeing the construction process, including the selection of subcontractors, procurement of materials, and management of the construction budget and schedule. The construction manager is typically not responsible for providing any design services or assuming any risk for cost overruns. This delivery method is often used when the owner has already engaged an architect or engineer to design the project and is looking for someone to manage the construction process.

Pros

  • Bond Cost Savings
  • Selected collaborative team from project inception
  • Open book competitive pricing from specialty subcontractors
  • Breaks projects into smaller bid packages allowing for more local participation
  • Involves value analysis during design
  • Improved time of delivery
  • CMa manages change order pricing
  • Well defined scope not required to establish contract
  • Owner retains control of Design
  • CM & A/E work as a team in Owner’s interests to establish project scope
  • CM assists during design process with budgeting and schedule
  • Non-adversarial effort reduces risks for Owner
  • Qualification based selection
  • Owner benefits from cost savings

CONS

  • There is no GMP
  • Design must be complete prior to construction starting
  • CMa is not at risk, and has no contractual relationship, with subcontractors
  • Increased potential for change orders due to multiple prime contracts
  • Owner accounts for multiple prime subcontractor payments
  • Potentially complex management of warranty services

General
Contracting

General contracting is a type of project delivery method in which a general contractor is hired by the owner to oversee the construction of a project. In this delivery method, the general contractor is usually the one who assumes the most risk for any cost overruns or delays.

PROS

  • Simple decision process
  • Competitive pricing through GC Bids
  • Clarity of Scope of Work

CONS

  • Your biggest Risk is not in a contractual relationship that acts as your advocate
  • Lack of cost control & value analysis during design
  • It is a fallacy that this is the lowest cost delivery method.
  • Increased potential for change orders
  • Increased overall risk for the owner

Design Build

In a design-build construction delivery method, a single entity (the design-build team) is responsible for both the design and construction of a project.

Novonix Anode Materials Big Blue Project

PROS

  • Single point of contract responsibility (Design Builder)
  • Lump sum cost identified up-front
  • Design and Construction can overlap for fast delivery

CONS

  • A well-defined scope of work is required up-front to establish contract – Bridging Documents
  • Owner responsible for changes due to gaps in desired scope versus bridging documents.
  • Owner potentially loses some control in design.
  • Can be difficult to implement for complicated design.

Integrated Product Delivery

Integrated project delivery (IPD) is a construction delivery method that involves a collaborative approach to the design, construction, and operation of a project.

PROS

  • TRUE collaborative TEAM
  • Create the best outcome
  • Eliminate waste in project design
  • Establish the correct point of contact for each project task
  • Improve job productivity
  • Increase project value
  • Improve construction methods
  • Establish innovative tactics for approaching field work
  • Create cost savings through change order reductions
  • Produce innovative ways to reach goals
  • Improve production techniques that will in turn improve the client’s bottom line project costs

CONS

  • Requires TEAM members that buy into the idea (project first, not me first mentality)
  • Heavy pre-construction effort
  • Major owner involvement during pre-construction and construction phases
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