According to industry experts, a project delivery system refers to the related structures of the parties involved, which includes their roles and responsibilities, and the standard sequence of activities needed to deliver the project.
Factors to Consider Before Picking a Project Delivery Model
Contents
Before you pick a project delivery model, you need to understand why and what you are creating. A firm’s thorough understanding of your project’s foundations will ensure that your final decision is effective and produces long-term benefits. Here’s what you need to consider:
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Budget
Try your best to set a budget ASAP. Next, arrange discussions with potential project and design team members to determine whether the figure is correct. In this process, determine how much room is needed for change orders. While determining a budget, know that your contractor and architect will have to add project software expenses to their budgets. Bear in mind that although it’s an upfront cost to finance these tools, costs will be minimized and delivery speed improves.
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Design
You might have gained a basic overview of your project’s look, but it’s essential to visualize your building’s functionality and design. How is your floor plan going to flow? Are you prioritizing creative and sophisticated designs over form and function? Buildability varies as per the type of project and design team you select. In addition, consider the unique functionalities of your project site, which includes existing landscaping and the entire look of adjacent properties.
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Risks
When the project risks reach a certain point, they can lead to increased costs and failure. Hence, before the project starts, conduct an in-depth risk evaluation. One important question to respond is to decide who is going to be liable for design issues that cause dangers in the midst of the project. Moreover, if you are assessing a project delivery method that will keep your in-house team significantly involved in the project administration, you are responsible to reduce gaps in the project stages and services.
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Schedule
Proper estimation of a project schedule plays a pivotal role in project performance. Bear in mind that schedule and cost are interlinked, which speeds up project processes and increases costs. So, how to know what is the right timing to meet your schedule? Get in touch with us, so we can guide you in this regard.
In some cases, owners need to speed up the project before the completion of engineering documents, such as drawings and support plans. Moreover, too much ambition can also influence estimation.
Project Delivery Models
The design and the overall industry is yet to find the right answer to the question: which project delivery system is ideal?
Well, the answer is that it varies. The choice for a project delivery model depends on specific project characteristics, requirements, the existing circumstances of the owner, and the proper arrangement of the project team. The popular delivery models are listed below:
Design-Bid-Build
DBD is the most conventional of the delivery models. In this approach, a design professional firm lets the owner sign a contract, creating the base of project design. Low bid procurement is the hallmark of DBB. This is why the design envisioned for the project plans and specifications is put out for bid. Next, the construction contact goes to the general contractor who has submitted the lowest-priced bid – where the owner approves the bidder for carrying out the project and the bid is responsive enough.
The general contractor mainly offers job site supervision and specialty trade work in this model. They are not required to provide programming, design or any ancillary services.
Construction Management at-Risk
Project Management at risk is a project delivery model that became popular after the 1970s. CMR comprises preconstruction services, indicating that the owner doesn’t have to wait for the design’s completion before choosing the contractor. Hence, the CM or at-risk project manager is chosen at the same time as the designer.
Project managers are selected based on their experience and skill-set in offering preconstruction services like conceptual estimating.
There’s a significant change between the BDD and CMR in terms of dynamics that are established between the owner and contractor. The CM gets to collaborate with the A/E (architect/engineer) professionals to some degree in the midst of the design phase. It focuses on building a strong relationship with the owner and the owner’s trusted A/E to boost the likelihood of getting selected for the next time.
Design-Build
The design-build model is symbolized by accountability to the owner for both the project and design services. The DB has a single contract between the design-builder and owner. The design-builder has to build a team from scratch that can deliver services to the owner.
The design-build model’s main services entail all those which exist in CMR, including the design. The formation of a DB team varies as per the project requirements.
Integrated Project Delivery
Integrated project delivery is the newest approach out there. It focuses on improving collaboration between the core project participants – the owner, the lead contractor, the A/E professionals, and the key specialty trades. What makes this delivery model different is that all the participants sign a multi-party type of agreement. This agreement serves as a basis for shared financial incentives, lean construction methods, and collaborative decision-making. In IPD, the contractor takes on a significant role in shaping the design phase, especially in comparison to CMR.
Final Thoughts
The project delivery model feasible for your project relies on the project complexity and preferences – suggested by the project team and the owner. Eventually, the onus is on you to pick a project delivery model – one that provides maximum control and ensures that you complete the project without going over the schedule and budget.
Now that you have a clear insight on project delivery, you need to contact us for smart project delivery. Our AI-powered tool can streamline your project delivery services, and improve outcomes.
