The Engineer’s Project Delivery Method Primer: Uniform Definitions and Case Studies

503 Pages·2022·14.124 MB·English

by  Douglas D. Gransberg, Michael C. Loulakis, Ghada M. Gad

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Douglas D. Gransberg, Ph.D. P.E.
Michael C. Loulakis, Esq.
Ghada M. Gad, Ph.D.
’
The Engineer s
Project Delivery
Method Primer
Other Titles of Interest
Project Administration for Design-Build Contracts: A Primer for Owners, Engi-
neers, and Contractors, by James E. Koch, Douglas D. Gransberg, and Keith R.
Molenaar.(ASCEPress2010).Koch,Gransberg,andMolenaarexplainthebasicsof
administering a design-build project after the contract has been awarded. (978-0-
7844-1075-2)
Preparing for Design-Build Projects: A Primer for Owners, Engineers, and Con-
tractors, byDouglas D. Gransberg, James E.Koch, and Keith R.Molenaar. (ASCE
Press2006).Gransberg,Koch,andMolenaarofferaprofessionalreferencethatcovers
the basics of developing design-build requests for qualification and requests for
proposals. (978-0-7844-7139-5)
PreparingRequestsforProposalsandSpecificationsforDesign-BuildProjects,by
theCommitteeonSpecifications.(ASCE/CI2008).Thisreportexplainsindetailthe
key steps in writing a request for proposal (RFP) or specifications document for
constructionprojectsusingdesign-buildastheprojectdeliverymethod.(978-0-7844-
0987-9)
AlternativeProjectDelivery,Procurement,andContractingMethodsforHighways,
by Keith R. Molenaar and Gerald Yakowenko. (ASCE/CI 2007). The report is a
comprehensiveandobjectivepresentationofmethodsthatgovernmentagenciescan
usetoimprovetheefficiencyandeffectivenessofpublic-sectorprojectdelivery.(978-
0-7844-0886-5)
Public-Private Partnerships: Case Studies on Infrastructure Development, by Sid-
neyM.Levy.(ASCEPress2011).Levydemystifiespublic-privatepartnershipsasan
innovativesolutiontothechallengesofdesigning,financing,building,andoperating
major infrastructure projects. (978-0-7844-1013-4)
Managing Gigaprojects: Advice from Those Who’ve Been There, Done That, by
Patricia D. Galloway, Kris R. Nielsen, and Jack L. Dignum. (ASCE Press 2012).
Galloway, Nielsen, and Dignum assemble a stellar group of financial, legal, and
constructionprofessionals whosharelessonslearnedandbest practicesdeveloped
from working on the world’s biggest infrastructure construction projects. (978-0-
7844-1238-1)
’
The Engineer s
Project Delivery
Method Primer
Uniform Definitions and Case Studies
Douglas D. Gransberg, Ph.D., P.E.
Michael C. Loulakis, Esq.
Ghada M. Gad, Ph.D.
LibraryofCongressCataloging-in-Publication Data
Names: Gransberg, Douglas D., author. | Loulakis, Michael C., author. | Gad, Ghada
Moustafa,author.
Title:Theengineer’sprojectdeliverymethodprimer:uniformdefinitionsandcasestudies/
DouglasD.Gransberg,MichaelC.Loulakis,andGhadaM.Gad.
Description: Reston, Virginia : American Society of Civil Engineers, [2022] | Includes bib-
liographical references and index. | Summary: “Authors Gransberg, Loulakis, and Gad
defineprevalenttermsintheUSdesignandconstructionindustryandprovidediagrams
thatexplaintheBigThreefundamentalprojectdeliverymethods,visuallydisplayingeach
method’scontractualrelationshipsbetweentheowner,design,andcontractor"–Providedby
publisher.
Identifiers:LCCN2021053646|ISBN9780784416013(paperback)|ISBN9780784483930(pdf)
Subjects:LCSH:Engineering–Management.|Projectmanagement.
Classification:LCCTA190.G742022|DDC658.4/04–dc23/eng/20211208
LCrecordavailableathttps://lccn.loc.gov/2021053646
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27 26 25 24 23 22 1 2 3 4 5
Contents
Case Studies List xv
Foreword xvi
Chapter 1 Introduction to Project Delivery Methods . . . . . . . . . . .1
Introduction 1
A Glimpse of Project Delivery Methods History 2
Framework for Defining Project Delivery Methods 4
Project Delivery Methods: The Big Three 5
Design-Bid-Build 7
Construction Manager-at-Risk 7
Design-Build 8
Role of the Project Team under the
Big Three Project Delivery Methods 8
What is not Project Design Method? 9
Professional Construction Manager/Construction
Manager as Agent 10
Program Management 10
Partnering 10
Alternative Technical Concepts 12
Prevalent Concepts for a Project Delivery
Method Strategy Development 12
Scope Development 14
Procurement Procedure 14
Contract Payment Provisions 15
Collaboration and Integration 17
Collaboration 17
Integration 18
v
vi Contents
Overview of Legal Principles Affecting Project
Delivery Methods 20
Public Procurement Law 21
Performance Standards for Contractors and
Designers 22
Owner Responsibility for Defective Design
Documents (Spearin Doctrine) 23
Differing Site Conditions 24
Summary 25
References 26
Chapter 2 Design-Bid-Build Project Delivery . . . . . . . . . . . . . . . . 29
Introduction 29
Design-Bid-Build from a Historical Perspective 29
Distinguishing Attributes of Design-Bid-Build 31
Contract Structure 31
Design Contract 33
Construction Contract 34
Design-Bid-Build Project Characteristics 35
Comparison with Other Delivery Methods 38
Procurement 39
Design-Bid-Build Legal Principles 40
Design-Bid-Build Contract Forms and Key Issues 41
Designer’s Potential Liability to Construction
Contractors 43
Designer’s Liability for Jobsite Safety 44
Subcontractor Bids 46
Summary 47
References 49
Chapter 3 Variations on Design-Bid-Build Project Delivery . . . . . 53
Introduction 53
Terminology Differences 55
Design-Bid-Build with Prequalification 57
Design-Bid-Build Best Value 60
Design-Bid-Build Cost-Plus 62
Design-Sequencing 64
Design-Bid-Build Multi-Prime 66
Contents vii
Design-Bid-Build with Alternative Technical
Concepts 68
Design-Bid-Build Variation Legal Issues 72
Procurement Authority 73
Legal Issues with Multiple Prime Contracts 74
Legal Issues with Alternative Technical Concepts 75
Design-Bid-Build Variations Summary 76
References 78
Chapter 4 Construction Manager-at-Risk Project Delivery . . . . . . 79
Introduction 79
Construction Manager-at-Risk Historical Perspective 81
Construction Manager-at-Risk Distinguishing
Attributes 83
Factors Driving the Selection of Construction
Manager-at-Risk 86
Defining Construction Manager-at-Risk
Preconstruction Services Scope 88
Comparison with Other Delivery Methods 92
Construction Manager-at-Risk in Comparison to
Design-Bid-Build 92
Construction Manager-at-Risk in Comparison to
Design-Build 94
Construction Manager-at-Risk in Comparison to
Professional Construction Manager 95
Industry Use of Construction Manager-at-Risk 97
Private Sector 97
Public Sector Generally 98
Public Sector Water/Wastewater 99
Public Sector Transportation 100
Public Sector Buildings 104
Procurement 106
One-Step Qualifications-Based Construction
Manager-at-Risk Selection 106
One-Step Best Value Construction Manager-at-Risk
Selection Model 109
Two-Step Best Value Construction Manager-at-Risk
Selection Model 111
viii Contents
Construction Manager-at-Risk Contractor Payment
Approaches 113
Guaranteed Maximum Price Pricing Provisions 117
Progressive Guaranteed Maximum Price
Provisions and the Reduction of
Contingency 117
Use of Independent Cost Estimator 118
Risk Distribution in Construction Manager-at-Risk 120
Special Issues 123
Construction Manager-at-Risk Legal Principles 124
Construction Manager-at-Risk Contracts and
Key Preconstruction Contracting Issues 125
Application of Spearin Doctrine to Construction
Manager-at-Risk and Responsibility for
Design Defects 127
Issues Associated with Contracting under a
Cost-Plus Guaranteed Maximum Price
Relationship 130
Failure to Reach an Acceptable Guaranteed
Maximum Price 131
Summary 132
References 132
Chapter 5 Variations on Construction Manager-at-Risk
Project Delivery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
Introduction 135
Variations 135
Construction Manager/General Contractor with
Independent Cost Estimator 136
Construction Manager-at-Risk with Public Bidding 143
Oklahoma Department of Central Services
Construction Manager-at-Risk with Public
Bidding 143
Associated General Contractors of America
Construction Manager-at-Risk with
Design-Build Subcontractors 145
Construction Manager as Constructor 147
Early Contractor Involvement 148
Integrated Design-Bid-Build 152
Contents ix
Owner-Facilitated Design-Build 153
Project Characteristics Associated with the Variation 153
Variation Pricing Provision Options 156
Federal Target Pricing Provisions 157
State-Level Targeting Pricing 157
Summary 161
References 161
Chapter 6 Design-Build Project Delivery . . . . . . . . . . . . . . . . . . 165
Introduction 165
Design-Build from a Historical Perspective 167
Distinguishing Attributes of Design-Build 172
Traditional Design-Build 173
Progressive Design-Build 176
Defining Design-Build Project Scope 182
Factors Driving the Selection of Design-Build 183
Comparison with Other Delivery Methods 188
Design-Build in Comparison to Design-Bid-Build 188
Design-Build in Comparison to Construction
Manager-at-Risk 190
Design-Build in Comparison to Public–Private
Partnership 192
Industry Usage 192
Architectural Building Sector 193
Commercial Buildings 194
Public Buildings 196
Transportation Sector 197
Highway Projects 198
Bridge Projects 201
Aviation 204
Public Sector Rail Projects 206
Water and Wastewater Sector 209
Federal Sector 212
Procurement 213
Unique Issues 220
Use of Lowest Price Technically Acceptable 220
Alternative Technical Concepts 222
Making the Mental Shift to Design-Build 224
Design-Build Legal Principles 225