Lecture 1: Project Delivery Systems

Front 1

What is Project Delivery Systems?

Back 1

~A framework for the relationships between the owner and other project participants.

~Referred to as: contracting method, contract strategy, procurement strategy

Front 2

What is the use of Project Delivery Systems?

Back 2

~Provides an opportunity for the owner totransfer risks to project participantsthat are best capable of dealing with those risks

~The project’s cost should be lowest when risks are transferred and allocated correctly

Front 3

What are the Types of Project Delivery Systems?

Back 3

~Traditional: Design-Bid-Build

~Turnkey: Design-Build, Design-Manage

~Owner: Builder

~Professional Construction Management: General Contractor, Construction Manager

Front 4

What is Traditional: Design-Bid-Build?

Back 4

~The owner enters into two separatecontracts:

a single designer, a single general contractor

~The single general contractor usually uses his own workforce and enters into contracts with numerous subcontractors

~Contract types can be lump sum, unit price and cost plus fixed fee

Front 5

What is Turnkey: Design-Build?

Back 5

~The owner enters into a single contract a firm Engineer Contractor)

~The Engineer Contractor gets into contracts for the design and own workforce for construction

~Can subcontract work

~The contract types can be lump sum, cost plus a fee

Front 6

What is Turnkey: Design-Manage?

Back 6

~Owner enters into a contract with a single entity for both design and construction

~The entity enters into contracts with independent contractors

~The entity manages many independent general contractors

~The contract types can be lump sum, cost plus a fee, design-construction contract

Front 7

What is Owner: Builder?

Back 7

~The owner is responsible for both the design and execution of the work

~May own subsidiary companies or have design and construction departments

~The construction department or construction subsidiary has its own work forces or enters into contracts

~The contract types can be lump sum, unit price, or negotiated contracts

Front 8

What is Professional Construction Management: General Contractor?

Back 8

~The owner enters into contract with two separate entities, Designer and Contractor

~The contractor uses both his own forces but most is done by managed subcontractors

~Construction management at risk: The general contractor assumes the risks and is responsible for the performance of the subcontractors. If project is delayed or there be unjustifiable cost overruns, the General contractor will be liable

Front 9

What is Professional Construction Management: Construction Manager?

Back 9

~The owner enters into three contracts, one with a designer, an independent contractors and a construction manager

~The construction manager acts as an agent for the owner and manages and coordinates the work of the other two entities

~The construction manager provides input during the design phase of the project, he is not liable for poor performance

~Negotiated professional fees for construction management services and for design services

Front 10

Work Breakdown Structure (WBS)

Back 10

~A deliverable-oriented groupingof project elements that organizes and defines the total scope of the project.