FEATURE: Weighing the Options

Abstract

The risks involved in any construction project can vary greatly and can include economic and market conditions, governmental regulations and zoning, and environmental requirements. The decision that will most affect the relationships and risk allocation on a construction project is the choice of project delivery method. Choosing the right project delivery method is the first protection against surprises. The traditional project delivery sequence is a triangular system of design/award/build in three separate phases. Under this relationship, the owner must determine whether the contract should be negotiated or bid and, if it is to be bid, what type of qualification or screening of bidders should be used. If the contract is to be negotiated, the owner should consider engaging the contractor in two separate roles: to serve as a consultant to the owner and architect early in the design phase, and to provide a guaranteed maximum price and guaranteed schedule and accomplish construction. To save time, some degree of fast-tracking may also be included in the project, allowing the owner to enter into separate, prime contracts for discrete jobs early in the project. For owners who want to transfer responsibility for both design and construction to one organization, the design/build project delivery approach may work. This delivery method can also save time on a project. In the typical design/build method, where a single contractor provides both the design and the construction of the project, the owner obtains a single source of responsibility. Whatever project-delivery method the owner chooses, the traditional roles and attitudes of owners, architects, contractors, and subcontractors should not be ignored. While innovation can bring improvements, change for the sake of change can create needless complications.