Universiti Teknologi Mara

Assignment 3

Project Delivery Method

Mohammad Al Nizar Khan Bin Ahmad Khan

2012212932

EC775- MSc. Civil Engineering (Construction)

Assoc. Prof. Dr. Ahmad Ruslan Mohd. Ridzuan

ECM752- Construction Site and Safety Management

 CONTENTS

Contents..................................................................................................................... ......i

Abbreviations...................................................................................................................ii

Introduction................................................................................................................. ......1

Traditional Method.............................................................................................................3

Design-Build Method..........................................................................................................3

Profesional Construction Management................................................................................4

Integrated Project Delivery.................................................................................................5

Conclusion.........................................................................................................................5

References................................................................................................................... ......a
Introduction

Since early 1980s, the owners of construction projects have been putting greater pressure on
the architecture/engineering/construction (A/E/C) industry to improve quality, reduce cost, and more
importantly compress the period it takes from concept to completion for all manner of public and
private facilities. As a result, both owners and industry have experimented with various forms of
project delivery with varying degrees of success. The adoption of alternative project
delivery methods has added to the challenge of selecting the method most appropriate to the owner’s
needs and desires as well as the project’s technical requirements. (TCRP,2008)1 .

Project Delivery Method (PDM) is defined as the process by which a construction project is
comprehensively designed and constructed for an owner including project scope definition,
organization of designers, constructors and various consultants, sequencing of design and construction
operations, execution of design and construction, and closeout and start-up (TCRP,2008). Project
delivery method clearly defines the structure of the relationship of each parties and the roles and
responsibilities of each parties, and the defines the sequence of activities required to deliver the
project(BCCA,2012)2 .As much concerned there a possibly three major types of Project Delivery
Method that has been used throughout the construction industry scenario, namely Traditional or
known as Design-Bid-Build(DBB) or Design-Award-Build(DAB), Construction Management (CM)
and Design and Build (DB). Each project must be examined individually to determine how it aligns
with the attributes of each available delivery method(TPF-5(260))3 . Each of this Project Delivery
Method are unique and gives different approach in order to complete the project.

As the construction industry scenario has changed a lot globally throughout the years, and
with the world is fast evolving, there is a need to have more alternative method in delivering the
project with the means of having more time reduction, more cost effective and thus giving t he best
quality standards that can be achieved even though the current available delivery project are proven to
give the best results.One of the future project delivery method is Integrated Project Delivery (IPD).
Integrated Project Delivery is the general term applied to a new project delivery system that utilizes
highly collaborative, cross functional teams composed of all project lifecycle stakeholders including
the owner, architect, general contractor, engineers, suppliers and security. Keys to success require the

1. T CRP, Web Document Only 41; Evaluation of Project Delivery Methods; T ransit Cooperative Research Program;2008; Ali
Touran, Northeastern University, Boston, MA; Douglas D. Gransberg, University of Oklahoma, Norman, OK; Keith R.
Molenaar, University of Colorado,Boulder CO; Kamran Ghavamifar, Northeastern University, Boston, MA; D.J.
Mason,Keville Enterprises, Marshfield, MA; Lee A. Fithian, Fithian Architects, Norman, OK; Contractor’s Final Report for
T CRP Project G-08; Transit Cooperative Reasearch Program.
2. British Columbia Construction Association(BCCA); Recommended Guidelines For The Selection Of A Construction Project
Delivery Method.
3. Guidebook For Selecting Project Delivery Methods And Alternative Contracting StrategiesTechnical Memorandum #1;
Prepared for:Next-Generation Transportation Construction Management;Transportation Pooled Fund Program Study TPF-
5(260); 2012;Keith Molenaar, Ph.D; Chris Harper; Daniel Tran; University of Colorado Boulder; Bo ulder, Colorado.
team to be assembled early in the process, that all team members have open and equal access to
information, and that they share equally in the risks and rewards of a given project. Relying on
technical advances in BIM (Building Information Modeling) software and information sharing
through the World Wide Web, empowered teams, often at great geographical distances, work together
to create designs, solve problems and complete projects faster and less expensively (IPD FAQ,
2006)4 . The difference between the traditional method and Integrated Delivery Method is shown as in
the Figure 1 below:

Figure 1: Difference between Traditional Method and Integrated Project Delivery (IPD FAQ, 2006)

From the figure shown it could be deduced that both delivery method are being worked on
different ways. Traditional method is taking much longer time due to the arrangement of relationship
between the stakeholders involved. As on the other hand the integrated project delivery is intended to
much reduce the time needed to complete the project as it allows all the stakeholders to work together
on the same time needed.

The next chapter will explain more on each of the available project delivery method, namely
traditional method, design and build method and the construction management method, as we ll as the
factor governing the selection of appropriate project delivery method to complete the project. The
integrated project delivery also will be explained much as the issue of new available project delivery
method.

4. Integrated Project Delivery, Frequently Asked Question; 2006; AIA California Council.
Traditional Method

Figure 2 shows the basic traditional method process flow.

Figure 2: Traditional Method (TCRP, 2008)

From the figure shown, the designer and builder are connceted through communication
whereelse the owner or developer are situated in between th two parties and relates to them through
both contracts and communications. In traditional method , the owner “owns” the details of design
during construction and as a result, is financially liable for the cost of any design errors or omissions
encountered in construction, called the “Spearin Doctrine” (Mitchell, 1999) 5 . Always, the lowest bid
of tenderer has been the basis of awarding the construction phase of this traditional method. The
construction phase of DBB projects is generally awarded on a low bid basis. One author states that the
defining The characteristics of DBB as being described by Bearup et al, 2007 6 are that the contacts for
design and construction are separated, cost is being the main factor to the selection of contractor and
the design documents are 100% complete.

Design And Build

The basic diagram of Design and Build is best represented in Figure 3 as shown below. As
described by Bearup et al, the basic characteristics of this type of project delivery method is that the
responsibility is only on single point, overlapping design and construction is allowed by the
scheduling, as well as the preconstruction services can be furnished simultaneously as the project
commencing and the design- builder is expected to provide a firm fixed price and to commit to
commandable delivry schedule by the owner or developer.

5. The Applicability of the Spearin Doctrine:Do Owners Warrant Plans And Specifications; Brendan P. Mitchell; 1999; Hease,
LLC.
6. Evaluation and Selection of Airport Capital Project Delivery Method; Bearup et al,2007.
 Figure 3: Design Build Diagram (TRCP,2008)

Basically in this method, the owner would made contract directly with single entity that
consist both the design and construction parties. Variations to this method include: the level of pre-
design, payment type, and a hybrid design build of only certain work packages, for example the
mechanical systems(Bender,2007)7 . The advantages of using this method are that it is generally have
faster period and somehow the owner only has to contact one party that respectively bears sole
responsibility for both design and construction. Elsewhere, the disadvantages will come should the
owner feels that they are losing power in authorizing the design and construction part due to lack of
understanding of construction system. Payment for this delivery method is generally based on a lump
sum low bid when it is priced and awarded based on a percentage (25-35%) of the design completed.

Profesional Construction Manager (CM)

Quoting on Bender (2007), project constuction management be described as existing with
variations with the owner contracts with several subcontractors,to be linked with agency (the CM acts
as the owners agent), or at risk (the CM actively bids the work). This much aggresive responsiveness
is much to be fulfilled by the management in order to ease owner responsibility. In each method the
CM may be brought on board early in the construction process, sometimes even before a designer is
selected. Usually the fixed fee method is being used as the way to pay for CM services, which is
base steadily on a certain percentage of the total construction cost. Figure 4 shows the typical
Construction Management flow diagram.

7. Case Study of Construction Project Delivery Types; William J. Bender; 2007; PhD, PE, M.ASCE; Construction Management
Professor, IET Department, 400 East 8 th Avenue, Ellensburg.
 Figure 4: Professional Construction Manager/Construction Management on Risk (TCRP, 2008)

Integrated Project Delivery (IPD)

As being explained earlier, the integrated project delivery method is a new approach to further
complying with the demanding needs from owner and meets the globalization needs as well utilizing
the Information Technology (IT) to its optimum usage. Relatively new to those three method
mentioned above, integrated project delivery offers the new solution in reducing time needed and cost
estimation as all parties are required to work under one roof (refer Figure 1). All party could give their
ideas and together brainstorming the most efficient design in terms of feasibility, workability and
constructability. As much been observed the integrated project delivery method would surely give
more profitable amount to its implementor, but yet there is still more owner are not use to this system
and ought to seek the traditional method to deliver this project (IPD FAQ,2006).

Conclusion
As what has been discussed on this topic, there is a need for us to make shift on the global
construction industry to comply with the fast growing environment. But then, still more
research,effort and time needed for the new approach to be accepted by the key players and
stakeholders of the construction industry. As what have been quoted by Kimon G. Onuma, from AIA,
that is ”Evolve or dissolve.”.
 REFERENCES

1. TCRP, Web Document Only 41; Evaluation of Project Delivery Methods; Transit
Cooperative Research Program; 2008; Ali Touran, Northeastern University, Boston, MA;
Douglas D. Gransberg, University of Oklahoma, Norman, OK; Keith R. Molenaar,
University of Colorado,Boulder CO; Kamran Ghavamifar, Northeastern University, Boston,
MA; D.J. Mason,Keville Enterprises, Marshfield, MA; Lee A. Fithian, Fithian Architects,
Norman, OK; Contractor’s Final Report for TCRP Project G-08; Trasit Cooperative
Reasearch Program.

2. British Columbia Construction Association(BCCA); Recommended Guidelines For The

Selection Of A Construction Project Delivery Method.

3. Guidebook For Selecting Project Delivery Methods And Alternative Contracting

StrategiesTechnical Memorandum #1; Prepared for:Next-Generation Transportation
Construction Management;Transportation Pooled Fund Program Study TPF-5(260); 2012
Keith Molenaar, Ph.D; Chris Harper; Daniel Tran; University of Colorado Boulder;
Boulder, Colorado.

4. Integrated Project Delivery, Frequently Asked Question; 2006; AIA California Council.

5. The Applicability of the Spearin Doctrine:Do Owners Warrant Plans And Specifications;
Brendan P. Mitchell; 1999; Hease, LLC.

6. Evaluation and Selection of Airport Capital Project Delivery Method; Bearup et al,2007.

7. Case Study of Construction Project Delivery Types; William J. Bender; 2007; PhD, PE,
M.ASCE; Construction Management Professor, IET Department, 400 East 8th Avenue,
Ellensburg.