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Managing the Project: The Supervisor’s Role Session 1: Understanding Project Delivery Systems Project Delivery Systems and Contracting Methods General Contracting Design-bid-build (Hard bid) Negotiated Construction Management At risk Agent (not at risk) Design/Build (and Assist)

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managing the project the supervisor s role session 1 understanding project delivery systems

Managing the Project: The Supervisor’s RoleSession 1: Understanding Project Delivery Systems

An AGC Construction Learning Tool

project delivery systems and contracting methods
Project Delivery Systems and Contracting Methods
  • General Contracting
    • Design-bid-build (Hard bid)
    • Negotiated
  • Construction Management
    • At risk
    • Agent (not at risk)
  • Design/Build (and Assist)

An AGC Construction Learning Tool

special note regarding public government construction projects
Special note regarding public (government) construction projects:
  • Statutes, rules and regulations vary from state to state and from type of public agency to type of public agency within a state
  • The following slides are intended to provide a general overview and do not pretend to cover every variation possible

An AGC Construction Learning Tool

general contracting overview
General Contracting Overview
  • Also known as design-bid-build
  • Most traditional method
  • Currently 45% of non-residential construction
  • Owner contracts separately with design firm and general contractor
  • Construction contract may be bid or negotiated

An AGC Construction Learning Tool

general contracting
General Contracting
  • Advantages:
    • If not negotiated, low bid is often sole selection factor
    • If not negotiated, owner receives best market price
    • Owner can know fixed price prior to start of work
    • Scope is defined prior to contractor pricing
    • Private sector owners can shortlist bidders list
    • Private sector owners can select a negotiated contractor based upon factors other than price
    • If negotiated, it is easier to pre-order long-lead items

An AGC Construction Learning Tool

general contracting6
General Contracting
  • Disadvantages:
    • Owner (and possibly designers) are responsible for change orders
    • Owner often has little power to select contractor on criteria other than price
    • No input from contractor during design phase
    • Difficult to pre-order long-lead-time items
    • Fosters conflict amongst project team members
    • Overall project schedule is extended

An AGC Construction Learning Tool

construction management cm overview
Construction Management (CM) Overview
  • Can have two forms:
    • CM at risk (CM may self-perform)
    • CM as agent (CM typically will not self-perform)
  • Currently 10% of non-residential construction
  • Owner contracts separately with design firm, CM and one or more prime contractors
  • CM contract may be negotiated or selected under Quality-Based Selection (QBS)
  • CM contract is never bid in the purest sense of the word

An AGC Construction Learning Tool

construction management
Construction Management
  • Advantages:
    • Allows for fast-track construction
    • Owner avoids general contractor markup on major subcontracts
    • CM input to the design process
    • Cooperation between design and construction teams promotes value engineering
    • If CM as agent form, the owner receives all of the benefits of competitive bidding of subcontracts
    • Change-order management is smoother for owner

An AGC Construction Learning Tool

construction management9
Construction Management
  • Disadvantages:
    • Owner has multiple contracts to administer, with three the absolute minimum
    • Some argue that the owner pays double markup for little extra value, particularly if few prime contracts are awarded
    • Success depends largely upon cooperation and mutual respect of various parties to the project
    • High level of owner involvement often required

An AGC Construction Learning Tool

design build and assist d b overview
Design/Build (and Assist) (D/B) Overview
  • Owner contracts with one company for single-point responsibility for both design and construction services
  • Currently 45% of non-residential construction
  • D/B contract can be negotiated, selected with QBS or quasi-competitively bid
  • D/B assist is a variant of D/B in which the owner has a separate contract with the design firm
  • Architect and/or engineer (A/E) is a consultant to design/builder (contractor-led) unless the A/E is the design/builder (designer-led) or a partner in a joint venture

An AGC Construction Learning Tool

design build and assist
Design/Build (and Assist)
  • Advantages
    • Owner often knows the complete project price before detailed design work begins
    • Owner benefits from constructor input and management of design phase
    • Much faster overall project cycle time, as foundation work is often begun before anything else has been finalized in the design
    • Owner is responsible only for major scope change orders
    • Owner may still benefit from bidding of subcontractor work

An AGC Construction Learning Tool

design build and assist12
Design/Build (and Assist)
  • Disadvantages
    • Owner does not receive competitive bids at the general contractor level
    • Some argue that quality can be compromised due to lack of checks and balances
    • Complex procurement process for public (government) agencies may not be a legal option for many
    • Scope must be well-defined very early in project

An AGC Construction Learning Tool

basis for understanding roles and responsibilities of the project supervisor
Basis for Understanding: Roles and Responsibilities of the Project Supervisor
  • In a broad sense, the project supervisor has three responsibilities on a project:
    • Manage tasks (scheduling, planning, etc.)
    • Manage relationships (motivate, lead, etc.)
    • Manage risk (safety, documentation, etc.)
  • How much time and effort is spent in each of these areas is largely a function of project delivery system and team characteristics

An AGC Construction Learning Tool

basis for understanding roles and responsibilities of the project supervisor14

Relationships

Tasks

Risk

Basis for Understanding: Roles and Responsibilities of the Project Supervisor
  • The Performance Profile: The supervisor’s role, or his/her expected performance for managing relationships, tasks and risks, will change on almost every project

PROJECT 1

PROJECT 2

Relationships

Tasks

Risk

An AGC Construction Learning Tool

basis for understanding roles and responsibilities of the project supervisor15
Basis for Understanding:Roles and Responsibilities of the Project Supervisor
  • In the previous slide, the project supervisor’s role is very different for Project 1 than for Project 2
    • Project 1 could be a negotiated design-build job with a repeat client and a very experienced project manager and a field engineer assigned to the team
    • Project 2 could be a “hard bid” project with a public agency and an inexperienced project manager and limited field support due to tight budgets

An AGC Construction Learning Tool