Alternative Delivery Methods for Construction Projects

Alternative delivery in construction projects started becoming popular in the 1980s
throughout the world. Today about 40% of Non-Residential construction is
through alternative delivery.

There is a lot to think about when considering alternative delivery methods and “project
delivery methods have evolved to deal with the many ways in which contracting
parties wish to allocate their risk, from the traditional stipulated price/
general contract to the development of alternative financing and procurement
methods including P3 models.” Not every model is for every project. First the
project needs to be assessed for pros and cons and possible risks. Some risks
to consider are environmental, technical criteria, design, construction, and
operations and maintenance. When all of possibilities are evaluated you can
then make a proper decision.

Before we look at alternative delivery methods for constructions projects, it would probably be best if we saw how a traditional project is structured. “The traditional
stipulated price or general contract project structure relies upon the owner
first contracting with the consultant, who is responsible for the project’s
design, including detailed drawings and specifications, preparation of the bid
package or Request for Proposals (where appropriate). The consultant’s contract
is most often a fixed price and dates certain contracts. Through the consulting
agreement, the owner gains the benefit of the consultant’s experience and
expertise. Once the design has been completed and the work offered for tender
or proposal, the owner will retain the general contractor, who is wholly
responsible for the construction of the project in accordance with the
consultant’s design. The contractor under this procurement method accepts the
responsibility and risks for the construction means and methods and for the
performance of the various subcontractors that it retains.” This method is
more of a chain of command ordeal, but the commander, “the owner”
relies on its lower ranks to make judgment calls in the project as well.

Now that we know how a traditional project is delivered we can now digress to the other forms of delivery. The next to discuss is the construction management framework. This is
very similar to the traditional delivery, but it now introduces the
construction manager. The manager is not there to do a lot and in a, “’pure’
construction management structure, the owner again contracts with a consultant
to prepare a design and contract documents. Simultaneously, or subsequent to
the completion of the design the owner will also contract with a construction
manager as its agent for the management of the project. The construction
manager’s role is predominantly one of advisor and administrator.” This allows
the owner to have a lot more control in the work of the project. The manager is
just there to oversee the project and make sure everything is done on schedule.

Next is Design – Build. In design-build, “the owner typically seeks competitive bids based upon a set of project performance requirements or specifications. The owner then
retains a single entity that is responsible for both design and construction. From
a practical perspective, the design and construction companies will be
integrated from the very early stages of the project. This integration will
provide the opportunity for considerable interaction and discourse between the architect
or engineer and the contractor during the design phase of the project. As a
result, the project may be expedited. The contractor will be able to commence
construction with the understanding of how the design has progressed and how it
is proceeding with the potential to save both time and cost.” This a prime
example of how certain deliveries have different pros and cons. This method
will not work for every project or for every owner or manager and that’s when
you need to make a personal call on the type of delivery you choose.

The last form of delivery that I am going to mention is Engineering, Procurement and Construction Contracts, which is another form of Design-Build. “The major advantage of the EPC contract over the other possible approaches is that it provides for a
single point of responsibility and a single point of contact between the
project developer and the contractor. As opposed to a more traditional delivery
method and the construction management systems described above, EPC delivery
systems rely on a single entity that contracts with the owner to design, build
and procure the key elements of the project.” In this delivery it allows more
people to be involved. Everybody knows what’s happening at each step in the
process and they have a chance to establish their own ideas in the project.

As you can see there are many steps in construction. There are many ways to approach the
process and in today’s world there is a fair amount of people that have decided
to follow the alternative delivery route. We have determined though that whatever
route they choose they will all have the same outcome; an idea that was once on
paper to a 3D structure.

Becker, Jody, and Tim Murphy. “Alternative Construction Delivery Methods.” N.p., n.d.     Web.  17 Oct. 2012.             <http://www.mcmillan.ca/Files/AlternativeConstructionDeliveryMethods.pdf>.