CSM 104
ALTERNATIVE METHODS OF PROJECT DELIVERY
What are Traditional methods of project delivery?
DBB!!!!!!!
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TRADITIONAL METHODS OF PROJECT DELIVERY
DESIGN BID BUILD
What is Design Bid Build
Characteristics of DBB
Advantages of DBB
Disadvantages of DBB
Owner Responsibilities
Role of the Contactor/Builder
CCDC 2 - 2008 Stipulated Price Contract,
CCDC 20, A Guide to the Use of CCDC 2 contract form
CCDC 18 - 2001 Civil Works Contract
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Lump Sum -Stipulated Price
(CCDC-2)
Method USED BY OWNERs TO DELIVER PROJECTS
Most Common Type of contract and one of the safest ---
Because the cost is known up front
It assumes the plans and specifications are complete and
accurate.
Any errors, omissions in the plans and specs or changes in
scope will result in a Change Order.
Cost over-runs must be absorbed by the GC.
Cost savings due to superior performance go to the GC
METHODS OF PROJECT DELIVERY
DBB
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Traditional Methods of Project Delivery
Design Bid Build
Design-Bid-Build is characterized by:
Two independent contracts between:
the architect and the client/owner
the contractor and the client/owner
Three distinct phases
DESIGN > BID > BUILD
the linear sequencing of the work. DESIGN> BID> BUILD
Traditional Methods of Project Delivery
Design Bid Build
MORE THAN ONE CONTRACT TO DELIVER PROJECT
CONTRACTS ARE PER THE PROJECT PHASES
DESIGN/BID
BUILD
CCDC 2 - 2008 Stipulated Price Contract
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Design Bid Build
CCDC 2
CCDC 2 - 2008 Stipulated Price Contract –
Lump-Sum -Fixed Price
Most Common Type of contract and one of the safest because
the cost is known up front.
Standard prime contract between Owner and prime Contractor
to perform the required work for
a single, pre-determined fixed price or lump sum,
regardless of the Contractor's actual costs
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BDD Project Delivery Method
Two Contracts
Owner
Architect Contractor
Consultants Sub contractors
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The Canadian Construction Documents Committee
(CCDC)
(CCDC) is a national joint committee composed of representatives of the
Association of Consulting Engineers of Canada, the Canadian
Construction Association (CCA), Construction Specifications Canada
(CSC), and the Royal Architectural Institute of Canada (RAIC).
CCDC currently publishes the standard form contract documents:
CCDC 2- 1994 Stipulated Price Contract - DBB
CCDC 3-1998 Cost Plus Contract
CCDC 4-1982 Unit Price contract
CCDC 18-2001 Civil Works Contract
CCA/RAIC/CSC Document 14-2000 Design Build stipulated price
contract
CCA/RAIC/ Document 15- 2000 Design-Builder/Consultant Contract
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Design Bid Build
CCDC 2
It assumes the plans and specs are complete and accurate.
Any errors, omissions in the plans and specs or changes in
scope will result in a Change Order.
Cost over-runs must be absorbed by the GC
Cost savings due to superior performance go to the GC
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Design Bid Build
CCDC 18
CCDC 18 - 2001 Civil Works Contract
Standard prime contract between Owner and Contractor for
civil works construction, e.g. roads, bridges, dams,
underground utilities, etc.
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Design Bid Build
CCDC 2 Contract form
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Design Bid Build CCDC 2 Contract form
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Design Bid Build
CCDC 20 A Guide to the Use of CCDC 2 Contract form
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Building Projects uses Design-Bid-Build
Most building projects follow this traditional method of
project delivery
the owner engages an architect to prepare the design,
drawings, and specifications;
the owner hires a contractor by competitive bidding to
build the facility under a construction contract (usually
CCDC 2, Stipulated Price Contract);
the architect administers the contract, and reviews and
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certifies the construction.
Traditional Methods of Project Delivery
Design Bid Build
The traditional delivery system requires
the project to be fully designed before Construction
work begins,
then makes use of a single general contractor who
assumes responsibility for constructing the entire
project
lump- sum contract with the owner/contractor.
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CCDC 2 - Stipulated Price Contract
Figure per CCA
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DBB- Stage Diagram flow
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DBB - LINEAR SEQUENCING OF PROJECT ACTIVITIES
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DBB ADVANTAGES
It is simple to understand
Familiar to all owner/ users
Owners are able to provide their inputs into the
process in a significant manner during the design
phase
Widespread use and familiarity
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DBB ADVANTAGES
Owner is able to compare the bids to reach the best
price for its project
Clear roles assigned to each party
Thorough resolution of design prior to construction
Usually has a known price before construction begins.
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DBB DISADAVANTAGES
Without complete and good plans and specification, the
owner has no really good concept of the final cost
Linear scheduling, a delay in the early stages has a
domino effect on later stages
Sequential process can be lengthy
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DBB DISADAVANTAGES
Separation of design and construction restricts useful
communication
The contractor is unknown when the construction
documents are prepared
Owners are subject to inflationary considerations of
construction costs, interest rates and delays that
increase costs
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CONSIDERATIONS
When selecting the
Design-Bid-Build Delivery Method
Design-bid-Build (DBB) is the most familiar project
delivery system and can be used on virtually any project
It is characterized by its linear and logical sequence of
steps.
The process requires a long lead time to prepare plans
and specification to permit the contractor to complete a
bid.
The plans and specifications are completed prior to
construction 25
When should Design Bid Build be used
Can be used
Anywhere
Anytime
On any project by any owner, private or public
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DBB Owner’s Responsibilities
The primary task of the owner in design-bid-build is:
acquiring the site and obtaining commitments for
adequate financing for the project
Owners must have a clear understanding of the nature
of the project
The owner must have the ability to direct the architect
and the contractor
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DBB -- Contractor Expectation of Owner
The primary consideration is:
adequate financing of the project
The decision making process and how the owner is
involved
Work Scope Change Process
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Owners' Expectation of Contractors
The adequate experience the contractor will have in the type
construction
Deliver project on time and budget to the stated quality
The builder should ascertain the quality and expertise on the in-
house construction staff
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DB RESPONSIBILITY
Flow Diagram
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DB PROCESS FLOW DIAGRAM
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DBB– COMPARE
CCDC 2, Stipulated Price Contract
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DESIGN BUILD- INTRODUCTION
Design-build is a construction project delivery system
where the design and construction aspects are contracted
with a single entity known as the design-builder or design-
build contractor.
Design-build is more streamlined than the traditional
method, often referred to as design-bid-build, where
design and construction were clearly separated
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INTRODUCTION -ORIGIN
The concept of a master builder as a single source
Between the design and construction has existed long time
ago.
The concept of a master builder was a common place in
the middle ages.
During the renaissance this began to change as architects
and artists desired to separate themselves from the
common trades people. With this change, the role of the
master builder slowly began to disappear.
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DESIGN-BUILD
PROJECT PHASES FOR BUILDINGS
PHASE 1
The Design-Builder provides
architectural design services and, throughout the
design process,
monitors costs to ensure the building remains within
the owner’s budget.
Based on the design developed in the first phase, the
Design-Builder usually proposes a stipulated
maximum price, which includes a fee for managing the
construction.
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DESIGN-BUILD PROJECT PHASES FOR BUILDINGS
PHASE 1
Phase 2: The parties enter into a stipulated price
contract for the completion of the building.----
Refer to Document 14, Design-Build Stipulated Price
Contract
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)
DESIGN BUILD
Design Build IS A Stipulated Price Contract--- CCDC-14
The design-builder is usually the general contractor, but can also be the architect or
engineer.
SINGLE CONTRACT TO DELIVER THE PROJECT –
Owner contracts with Design-Build company-- that in turn hires the design
Consultant (Contractor driven/lead)
By incorporating the designer and contractor, design-build
minimizes the project risk for an owner and
reduces the delivery schedule by overlapping the design phase and
construction phase of a project
THE CANADIAN CONSTRUCTION DOCUMENTS COMMITTEE
(CCDC)
CCA/RAIC/CSC Document 14-2000 Design Build - Stipulated Price
Contract
CCA/RAIC/ Document 15- 2000 Design-Builder/Consultant Contract
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CCA 14– Sample OF CONTRACT
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CONSIDERATIONS WHEN SELECTING THE
DESIGN-BUILD PROCESS
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CONSIDERATIONS-
PRIOR 1/2
Before considering a design-build approach, be sure that
your state/COUNTRY allows it and that whatever funding
source you use endorses it, too.
The most common objection to design-build is the fear that
the owner will lose control by delegating too much or suffer
from compromises between design and construction.
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CONSIDERATIONS- PRIOR 2/2
The owner’s role simply changes from one of
mediating problems between disciplines (design
engineer and contractor) to exploring and analyzing
options to improve value for the user.
Ultimately, with good performance specifications, the
design-build team (instead of the owner) becomes
responsible for the success of the project.
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THE INTEGRATED DESIGN BUILD PROJECT DELIVERY
Separation of design and construction is not the standard
in other industries.
HOWEVER, the airline industry, combines design and
production. Similarly in the automobile industry, the
computer industry, the heavy industry.
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DB-
POTENTIAL BENEFITS
Some key aspects of design-build include:
Singular responsibility—one entity is accountable for cost,
schedule, and performance;
Faster delivery—collaborative project management completes
work faster with potentially fewer problems;
Reducing change orders—design changes that occur because
the design did not account for certain obstacles or situations
Potential better quality—a design-build meets performance
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needs rather than minimum design requirements;
OWNER’S CONSIDERATIONS
Starting point: where an owner planning the project
must be able to define their needs and expectations. =
PERFORERMANCE SPECIFICATION
The owner must determine if they have qualified staff
on board to begin to extract and define their program or
whether they will require outside consultants.
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LIFE CYCLE OF A DESIGN-BUILD PROCESS
Life Cycle Depends upon whether the project is
in the public or private sector and
the type of contract being considered, decisions
will be made that influence the design-build life
cycle
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DD PROJECT CYCLE
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OWNERS UNDERTARKING
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Risk Sharing is part of the
Design-Build process.
Risk identification
Invites discussions involving
insurance, what limits are
required
How risk be shared between
Owner and Design-Builder
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Performance Specifications – Phase
Performance specification focuses on methods by which the
Owner will solicit and contract for design-build
WHAT ARE THE METHODS?
This performance phase in some cases may precede the risk-
allocation phase
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If a design-build team is
brought in at this early
stage, they will begin to
work with the owner’s
staff to develop the
conceptual design
and associated costs
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Contract Award &
Construction Administration
Prior to final contract review and execution, the owner
and the design-build team should consider several
activities related to the construction process and form a
construction administration exhibit to that contract.
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Close-Out & Commissioning
Prior to construction, thoughts must be given to
the project’s close-out and commissioning
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DBB/DB
USER BY COST/SIZE
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Differences between
Design-Bid-Build and Design-Build
With the traditional design-bid-build method, the owner
would hire a design firm while also lining up project
funding.
With DB, the design and construction done concurrently
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DB ADVANTAGES
Owner contracts with Design-Build company that in turn hires
the Design Consultant (Contractor driven/lead)
Attractive: design and construction under one roof
Construction can begin before the plans and specs are 100%
complete.
Can save time because early start enables fast tracking
Design can evolve with more cost savings due to early
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contractor input
BENEFITS OF DB
Reduced Owner’s risk—a design-builder assumes the risk to
deliver
Decreased administrative burden—the focus is on the project
as a whole, rather than on separate functions
Potential cost savings—an integrated team executes efficient
and innovative solutions; and
Fewer litigation claims—owners can reduce and even
eliminate litigation claims by closing warranty gaps.
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DB DISADAVANTAGES
MISSING SCOPE/ADDED SCOPE
Owner may not have same degree of control over
design and quality.
MISSING SCOPE
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Owner’s Responsibilities
Work Scope definition
Performance specification
Budget
Land/site
Permits
Other stakeholders inputs/risk
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Contractor Expectation of Owner
Budget
Scope definition
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OWNERS' EXPECTATION OF CONTRACTORS
The REQUIRED experience, the contractor will have in
the type construction
Delivery of project on budget and time and quality
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DB PROCESS FLOW
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DESIGN BUILD SCHDULE- OVERLAP
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DBB----- COMPARISON WITH DB
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COMPARISION OF DB AND DBB
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COMPARISON OF DDB AND DB DIAGRAMS
RESPONIBLITIES
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COMPARISION OF DBB VS DB
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QUESTIONS?
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Interim Assignment 3:
Research a current major project in the GTA that has
spiraled out of control
Report on possible causes and solutions
Present to class for discussion.
1 WEEK FOR SUBMISSION
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DBB PROCESS FLOW
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