Project Delivery Method Report

PROJECT
DELIVERY
METHOD
Common Construction Project
Delivery Methods: A Breakdown
A project delivery method is a system used by an
agency or owner for organizing and financing design,
construction, operations, and maintenance services
for a structure or facility by entering into legal
agreements with one or more entities or parties.

All construction projects require a mixture of
services, including planning, design,
and construction. Construction project delivery
methods provide different ways to organize those
services contractually in order to execute a project.
While each project team generally consists of an
owner, a designer, and a builder, how each project is
executed differs. Choosing the right project delivery
method is a crucial step before design begins, as it
sets the tone for how the team will communicate
and how payments will be distributed.
What does project delivery mean?
The Project Delivery Institute defines a construction

project delivery system as “the structure of the
relationships of the parties, the roles and
responsibilities of the parties, and the general sequence
of activities required to deliver the project.” It defines
how the parties are related to each other contractually
throughout the progress of the project.
It may seem like the relationships between the project
owner, designer, and contractor are easy to define and
quantify, but many projects require these relationships
to be adapted or changed to meet the project
objectives.
Construction project delivery methods
Before choosing a project delivery method, there

are a few things you should consider. This
includes the owner’s budget, the scope of the
project, the risks involved, the schedule, and the
owner’s experience with similar projects.
The following will be a breakdown of six of the
most common types of project delivery methods.
• Design-Bid-Build (DBB)
• Design-Build (DB)
• Construction Management-at-Risk (CMAR)
• Construction Management Multi-Prime (CMMP)
• Public-Private Partnership (PPP or P3)
• Integrated Project Delivery (IPD)
1. Design-Bid-Build (DBB)
DESIGN-BID-BUILD — also called hard bid — is the most popular project

delivery method, and it is thought to result in the lowest construction price. The
designer/architect and general contractor work directly for the owner under
separate contracts, so this method provides a lot of opportunities for the
owner’s input on the project.
The design team works with the owner to develop the contract
documents: drawings, specifications, and other exhibits. Once the design
is finished, it is sent out for general contractors to provide a bid on the
project. The designer needs to finalize every detail of the project before
the project is put out for bids. It can take two to four weeks for
contractors and subcontractors to price a project . Then, the design
team and owner evaluate the proposals from the GCs and select the one
the owner wants to go to contract with. Once the contract is signed,
construction can begin, and materials and equipment can be ordered.
2. Design-Build (DB)
Design-build is becoming more popular in recent years — a recent report

claims that this delivery method is now used on up to 40% of the US-based
construction projects. DB creates a very straightforward process for owners, as
they are only contracted with one firm. In this method, both the design and
construction phases are covered under one contract with one company.
The entire project is handled by either the architect or the contractor
from start to finish – drawing a stark contrast to the above design-bid-
build project. In theory, when the design team and build team are rolled
into one operation, the project becomes more efficient.
DB projects can be architect-led or contractor-led, depending on who
the contract is with.
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Architect-led agreements are generally used on projects that have a

high difficulty of design, like new buildings, remodels, etc. Contractor-
led projects usually don’t rely on complex design, and involve
repeatable work, like infrastructure or road projects.
No matter which way the contract is written, the architect and
contractor are usually contractually connected between themselves,
and one of them is connected to the owner and takes point on the
project.
DB projects allow contractors and subcontractors to have a say in the
design, which can be beneficial when they have extensive experience.
The process from start of design to completion of construction is usually
shorter too, so it is often used for fast-track projects.
3. Construction Manager at Risk (CMAR)
With the Construction Manager at Risk method, a construction manager, similar to

a general contractor, acts as the owner’s representative during both the design and
construction phases.
Like the DBB method, the CMAR method separates the design
and building processes. The construction manager is involved from
the beginning with the design process, mainly as a cost controller,
and also oversees construction like a general contractor would. The
difference is that the CMAR accepts the risk for meeting the project
deadline and owner’s cost requirements, which are usually
expressed as a guaranteed maximum price.
If construction costs come in higher than expected, the CMAR is

expected to absorb those costs, which reduces their overhead and
profit. Of course, on the other hand, if costs are lower than
expected, the CMAR will increase their profit, unless the contract
calls for sharing the savings. Either way, the CMAR is invested in
reducing costs and keeping the project on schedule, which helps the
owner meet their project goals.
4. Construction Management Multi-Prime (CMMP
In Construction Management Multi-Prime projects — also called multi-

prime (MP) — the owner acts as a general contractor and goes to contract
with each of the design team members and major trade contractors. This
method is best for owners who have a lot of experience managing
construction projects and want more control.
One advantage of this method is that subcontractors have a
direct contractual relationship to the owner, and don’t have to
wait for payments to filter through the tiers. This can lead to
speedier payments and less paperwork for subs and suppliers.
5. Public-Private Partnerships (PPP or P3)
Public-private projects— also known as P3 projects — get to reap the benefits of

both public and private projects. As their name suggests, the project is the result
of a partnership between a private and a public entity.
It is a project delivery method that combines architectural and engineering
design services with construction performance under one contract. A private
entity or a group of investors provides some or all the needed capital with a
commitment and assurance to deliver a completed project for a public sector
owner in exchange for profit that the completed facility is anticipated to generate
Projects like affordable housing and infrastructure are
often the result of these types of agreements. Like private
projects, they are controlled by a private company which
helps create efficiency and add expertise. Like public projects,
there’s a steady project owner, decreased payment risks, and
a project that will greatly benefit the general public.
When it comes to payment protection, mechanics
liens can be used on projects where the property is owned by
a private entity, but bond claims are needed to collect on
publicly owned projects.
Under a PPP scheme, the private sector can build,
operate and maintain public infrastructure facilities and
provide services traditionally delivered by government.
Examples of these are roads, airports, bridges, hospitals,
schools, prisons, railways, and water and sanitation
projects.
6. Integrated Project Delivery (IPD)
Integrated project delivery (IPD) is the most recent

addition to the project delivery palette. In these projects, all
the project team members are contractually connected
with only one contract. All team members are selected
before design begins, and they each play a role in the whole
process, from design to construction.
IPD is gaining popularity because everyone shares
the risk on the project equally. Also, this method creates
the most innovative and collaborative approaches to
projects. When combined with other construction
methods, such as lean construction, they can greatly
improve the efficiency of construction methods and
shorten project timelines significantly.
IPD as a Delivery Method is a delivery methodology
that fully integrates project teams in order to take
advantage of the knowledge of all team members to
maximize the project outcome. Integrated Project Delivery
is the highest form of collaboration because all three
parties (Owner, Architect, Constructor) are aligned by a
single contract.
Choose the best project delivery method for your project
Deciding which project delivery method is best for a project

relies a lot on the type of project, how much control over the
project the owner wants, the project timeline, and the budget.
Each method provides a different amount of control and ties the
parties together contractually in a different way. Every project is
different, so you’ll need to choose the right method on a case-by-
case basis.

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PROJECT

The Project Delivery Institute defines a construction

Before choosing a project delivery method, there

DESIGN-BID-BUILD — also called hard bid — is the most popular project

Design-build is becoming more popular in recent years — a recent report

Architect-led agreements are generally used on projects that have a

With the Construction Manager at Risk method, a construction manager, similar to

If construction costs come in higher than expected, the CMAR is

In Construction Management Multi-Prime projects — also called multi-

Public-private projects— also known as P3 projects — get to reap the benefits of

Integrated project delivery (IPD) is the most recent

Deciding which project delivery method is best for a project

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