Our clients often ask us, “What is the best delivery method for my construction project?” We spoke with V3’s Vice President of Construction Mike Famiglietti to talk through the available contract options and why certain projects see significant benefits from the Design/Build approach.
Matching the method to the need
When it comes to construction, there’s no one-size-fits-all solution. Every project comes with a unique set of goals and challenges. The key to selecting the best project delivery system is to understand the specific project needs and determine which delivery best addresses those needs.
There are three common delivery methods for construction:
- General Contracting: Also referred to as the “Traditional” or “Design/Bid/Build” approach, General Contracting starts with the owner finalizing project plans and specifications with an architect or engineer. Those completed documents are then bid out for a general contractor to execute by assembling a team of trade contractors.
- Construction Management: This method involves the owner hiring a construction entity to act on their behalf, addressing all steps involved with the construction contract process, including bidding, contractor selection, administration, and management. The CM can execute through a variety of contract structures from lump sum to cost-plus-fee to a guaranteed maximum price, all of which will have different implications to the final project delivery.
- Design/Build: Occasionally referred to as a “Turnkey” method, the Design/Build approach enlists one multidisciplinary team to handle the project planning, design, and construction. This is commonly done by joint venture or partnership between architects/engineers and construction professionals. However, whenever design and construction work can be kept in house with a single entity it allows for deep project understanding and agility from beginning to end.
Choosing the right method or combination of methods will depend on several key factors, including the level of risk, complexity, and project involvement the owner requires. The type of project can also influence the best delivery method. For example, a straightforward project with defined scope needs a different service level than those with more fluid variables and undefined methods of construction.
The benefits of Design/Build for green infrastructure projects
Design/Build has proven to be an exceptional construction delivery method for green infrastructure and sustainability projects due to its inherently adaptable approach.
Environment-driven work such as streambank restoration and wetland mitigation sees many changes over the course of the project, as erosion, flooding, and other natural factors can dramatically alter site variables between design and execution. Site access and water management become increasingly important variables to control during the execution of these projects and are difficult to define in the design process.
The Design/Build approach factors in flexibility to adjust as needed; the team develops a limited design that is advanced enough to define the goals of the project and captures the project’s intent, while acknowledging undefined variables that will be up to the design-builder to control during construction.
The Design/Build delivery can provide accelerated completion of a project through early starts, reduce overall project costs by expediting field changes with trade-specific professionals, and generally minimize owner risk as compared to the traditional Design/Bid/Build approach due to less cost exposure from changed conditions.
The Design/Build method helps owners save:
- Time: Traditional methods spend significant time in full design and bidding effort to secure a contractor, which adds months to project timelines. These efforts are often wasted on green infrastructure projects since the design will likely change alongside the environment.
- Money: Field changes are expedited that directly saves potential expense of crew down-time waiting for answers. The design/builder either executes work with its own forces or deals directly with trade-specific firms to eliminate additional layers of management compared to traditional general contracting.
- Reduced Risk: With the project parameters defined, the design-builder can execute the work to meet the project success criteria and owner goals. A general contract delivery creates hard lines of “in scope” or “out of scope” and can be very difficult to define which can then lead to disagreements. The Design/Build delivery acknowledges these gray areas and provides a fair and equitable contract to deliver results.
“We recommend the Design/Build delivery method for sustainability projects. It acknowledges what can’t be defined in a set of plans and specifications and places the responsibility to execute the work in the hands of trusted professionals. Beyond that, by hiring a design/builder through a qualifications-based criteria, specifically for these environmentally sustainable types of projects, you get passionate experts on the job providing a tremendous benefit to the community.”
Mike Famiglietti, VP of Construction
Understanding how delivery methods affect construction project success is crucial. At V3, our Construction experts work with owners to define goals and determine the best approach for success. Connect with us to learn more.