What’s the best delivery method for your next project?
Choosing from the menu of alternative delivery choices is a complex task, but finding innovative ways to obtain better value for your infrastructure investment becomes easier as you build more projects in your portfolio. Each alternative delivery method offers a different set of benefits when compared to traditional design-bid-build. To help you better understand your options, we’ve developed this guide to the three most common forms of alternative delivery.
Construction Manager-at-Risk (CMAR)
How it works: The owner contracts separately with the designer and construction manager (CM). The CM acts as a consultant during design and as a general contractor during construction. The CM’s responsibilities include procuring equipment and subcontracts and delivering the project within a fixed, negotiated price. In most states, the CM must be a licensed general contractor.
Why it works: The CM is incentivized to provide valuable constructability insight during design that can avoid major costs and delays. All subcontracting tasks are competitively bid in an open and transparent fashion, which can result in major cost savings. The CMAR approach helps expedite project schedule through designer-contractor collaboration, and gives owners the ability to choose preferred equipment without sole-sourcing.
What you need to know: If you are putting your toe into the waters of alternative delivery with a CMAR project, it is best to start with a medium-sized project and choose an experienced team that can help you through the process. Also, while the transparent bidding process is a strength of CMAR, having to bid everything out is labor-intensive for the owner’s staff and the engineer. Moreover, the owner may miss out on some efficiencies that might otherwise have been achieved by linking some of the subcontracted tasks together in a single bid.
Lump Sum Design-Build (Lump Sum DB)
How it works: One contract is held with the design-builder, who prepares plans and specifications for permitting and construction, hires and manages subcontractors, reviews submittals and shop drawings, procures equipment and builds the project. The owner develops the project with an advisor or bridging consultant up to a 30-percent design level, at which time design-build teams compete to offer the lowest qualified bid. The design-builder then carries out the project to completion according to the specified terms.
Progressive Design-Build (Progressive DB)
How it works: Progressive DB projects involve selection of a DB team after the design is developed to an intermediate stage by the owner. The design-build team works collaboratively with the owner’s staff to prepare final plans, specifications and designs and carry out the construction phase.