Choosing the Right Project Delivery Method: A Journey Approach

When it comes to any project, a crucial step in the pre-construction phase is determining your project delivery method.

In a simple sense, a project delivery method is a relationship between the Owner, designer, and contractor that stipulates how and when project milestones will occur as well as the responsibilities each one is to oversee.

And though standard definition is enough to fill you in, there are also many types of project delivery methods to consider.

Construction Manager at Risk

The CMAR delivery method is becoming more common and is used in instances where the project is more complex and needs a cohesive project team that works together from the pre-construction phase through completion. Most often, the Owner hires the Architect and a separate Construction Manager. Once the team is assembled, the Construction Manager manages the critical path - this involves planning, design, schedule, construction methods, and financing/cash flow.

The “At-Risk” part transfers most of the risk to the Construction Manager by establishing a Guaranteed Maximum Price, which is an agreed-upon construction price and schedule. Teamwork, trust, and transparency are all highly valued in this method.

Design-Build (D-B)

This method is common when certain, important factors are at play – schedule and quality. In this process, the Owner hires a one-stop-shop (most frequently a General Contractor) who then hires the Architect to work directly under them. They could also go through a consultant agreement with an independent Architect/Engineer (A/E), or through an in-house design capability that some General Contractors have on staff. In this delivery method, project organizational simplicity is the focus, with the Owner hiring the Design-Builder, who is then responsible for design and construction.

Design-Bid-Build (DBB)

Perhaps the most traditional type of method, DBB consists of three parties (Owner, Architect, and General Contractor) and follows these steps:

• The Owner hires an Architect, who prepares the plans and specifications.
• The plans are then sent out to public forums for bidding.
• The General Contractors can then bid on the project.

Most often, the lowest bidder is the successful contractor.

Design-Build (D-B)

This method is common when certain, important factors are at play – schedule and quality. In this process, the Owner hires a one-stop-shop (most frequently a General Contractor) who then hires the Architect to work directly under them. They could also go through a consultant agreement with an independent Architect/Engineer (A/E), or through an in-house design capability that some General Contractors have on staff. In this delivery method, project organizational simplicity is the focus, with the Owner hiring the Design-Builder, who is then responsible for design and construction.

Construction Manager at Risk

The CMAR delivery method is becoming more common and is used in instances where the project is more complex and needs a cohesive project team that works together from the pre-construction phase through completion. Most often, the Owner hires the Architect and a separate Construction Manager. Once the team is assembled, the Construction Manager manages the critical path - this involves planning, design, schedule, construction methods, and financing/cash flow.

The “At-Risk” part transfers most of the risk to the Construction Manager by establishing a Guaranteed Maximum Price, which is an agreed-upon construction price and schedule. Teamwork, trust, and transparency are all highly valued in this method.

Construction Manager Agency (CMA)

CMA is like the CMAR method with one major difference – in CMA, the Construction Manager is an advisor agent of the Owner. The Owner instead holds multiple individual contracts with each of the subcontractors and suppliers on the project in lieu of them being held by the Construction Manager. Additionally, there is no Guaranteed Maximum Price, and the CMA holds little leverage over each individual sub/supplier.

Negotiated General Contractor

Like CMAR, this method includes the General Contractor early in the process, during the design phases. However, the owner still holds the contract separately with the Architect. Oftentimes, the negotiated General Contractor is selected based on availability, experience, fee – and sometimes even transparency.

Integrated Project Delivery (IDP)

Though not frequently used in our region, this method is used when a project is highly specialized, complex, and has a need to be streamlined. Frequently, design responsibility is shifted from the Architect/Engineer to the supplier or subcontractor, thus eliminating some steps from design through shop drawings and approvals, to speed up long lead-time items.

At Journey, our guiding principles attract us to the CMAR method most often, because it aligns so closely with our core values, which consist of:

• Our Customer – Exceeding expectations by going above and beyond.
• Our People – We help each other be our best.
• Integrity – Doing the right thing, always!
• Fiscal Stewardship – Investing in our future and community.
• Relationships and Teamwork – We are in this together.

In short, Journey wants to be your trusted partner through ALL steps of the project delivery method you choose. We will guide you through difficult decisions, mitigate risks for teams, and build relationships based on honesty, fairness, and teamwork.

We know no two projects are ever the same. So your considerations for the factors surrounding project delivery will indeed be different from anyone else.

Questions? See the below Q&A!

Q) Am I truly familiar with construction or am I a novice?

A) If you’ve built before and understand what to expect, then Design-Bid-Build or Design-Build might be your first choice.

Q) Do I value the lowest cost above all other factors?

A) Achieving the lowest cost with little regard to other complex factors leads you toward the Design- Bid-Build method most often.

Q) How much time and involvement are expected of me?

A) If your time focus needs to run your business, then CMAR or Design-Build should rise to the top.

Q) Is my project relatively simple or complex?

A) Complex projects requiring high levels of experience and expertise usually follow the Construction Manager At Risk or Design-Build methods.

Q) Is schedule one of the most important factors for my project?

A) Schedules are usually parallel to complexity. Seek out CMAR or Design-Build and avoid Design- Bid-Build.

Q) Do I trust my partners or do I want a high level of transparency?

A) Trust is integral in the CMAR system because trust is most often based on transparency and teamwork. Design-Build can also fit this, but your Design-Builder must be open and transparent in order for the trust within the partnership to work.

Q) Is a Team approach highly valuable to me?

A) Teamwork is integral in the CMAR method.

Q) How much risk am I able to tolerate?

A) The CMAR method shifts a lot of the risk in construction over to the Construction Manager. Risks can include things like cost over-runs, supply chain issues, and schedule delays.

Our best advice?

• Take your time.
• Explore your options.
• Have open conversations.
• Seek out references.
• Find a trusted partner for the long haul.

For a PDF version of this whitepaper, please click here to download.

To learn more information about Journey’s project delivery approach, please visit the Journey website or call 605-332-5968.