General Contracting/ Design, Bid, Build

This delivery method is where the owner contracts with a General Contractor and an A/E.

Advantages:

1. Competitive bids based on original architectural plans & specs
2. Scope of work is usually well defined
3. Conforms with most public bid requirements

Disadvantages:

1. Complete drawings & specs needed for competitive bids
2. No value engineering at design phase
3. Bids may be over budget
4. Increased potential for change orders
5. Not necessarily best value or overall lowest project cost
6. Time delays if over budget/ redesign &rebid required
7. Inability to “fast track” construction schedule

Construction Manager (CM) "At Risk"

This delivery method is where the Owner contracts with CM "At Risk" and the Architect/Engineer.

Advantages:

1. Competitive bids based on original architectural plans & specs
2. Scope of work usually well defined
3. Guaranteed maximum price negotiated with CM "At Risk"
4. Reduced potential for overall project cost overruns

Disadvantages:

1. Complete Drawings & Specs needed for competitive bids
2. No value engineering at design phase
3. Increased potential for change orders
4. Inability to "fast track" construction schedule

Construction Manager (CM) "As Agent"

This delivery method is where the Owner contracts with individual contractors, a CM "As Agent", and Architect/Engineer.

Advantages:

1. Competitive bids based on original architectural plans & specs
2. Scope of work usually well defined
3. Fixed fee negotiated for CM to manage project
4. CM acts as Owners independent representative
5. Ability to fast track schedule

Disadvantages:

1. Complete Drawings & Specs needed for competitive bids
2. No value engineering at design phase
3. Bids may be over budget
4. Increased potential for change orders
5. Not necessarily best value or overall lowest project cost
6. Potential for overall project cost overruns
7. Multiple contracts & division of responsibilities
8. Direct Owner involvement in contractor disputes

Design-Build Contracting

This delivery method is where the Owner contracts only with the Design/Builder.

Advantages:

1. Quickest contracting option
2. Single source responsibility between Owner & Design/Builder
3. Incorporates value engineering at initial design phase
4. Better value due to reduced design costs
5. Ability to determine accurate budgets quicker than formal bid process
6. Competitive bids from pre-qualified sub-contractors
7. Ability to fast track schedule
8. Direct communication with Owner and A/E
9. Reduced potential for change orders

Disadvantages:

1. No independent Owners representative
2. Relies on trust worthiness of Design Builder
3. May not be cheapest overall project cost