Role of Project Delivery Systems in Infrastructure Improvement

Abstract

Despite a recent resurgence of alternative project delivery methods, many within the construction industry continue to misunderstand the characteristics and implications of each system. Until misperceptions are clarified, project delivery systems will remain underutilized as a tool to improve the efficiency and to reduce the cost of delivering public infrastructure facilities and services. Project delivery systems offer owners choice in their search for value in infrastructure cost, quality, service and technology, but they cannot provide this choice if they continue to be misunderstood. Accordingly, the intent of this paper is to clarify each delivery system's characteristics and its potential role in infrastructure improvement by contrasting: design-bid-build, design-build, design-build-operate, build-operate-transfer and contracted operations & maintenance; specific case examples are included to highlight key considerations and elements of each system. In addition, the paper describes an ongoing research initiative to develop case studies that examine procurement strategies and practices where alternative delivery methods are utilized. These cases will underpin the formation of procurement and contract models designed to preserve public interests and to attract private sector participation in the public procurement process. By systematically reviewing solicitation processes, analyzing contract conditions and monitoring long-term performance, this research will increase the ability of owners, engineers and planners to think logically about project configuration and procurement by elucidating successful strategies for insuring transparency, promoting competition, allocating risks and aligning incentives.