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OCR for page 38
38 A Guidebook for the Evaluation of Project Delivery Methods
Issue 22: Sustainable Construction Goals
Sustainable construction is an important vehicle for achieving sustainability goals for new
projects. The disconnect between designer and builder in some delivery methods can restrict the
means and methods available for a project. The effect of various delivery methods on facilitat-
ing sustainable construction is the focus of this discussion.
DBB
With DBB, an experienced constructor does not have the opportunity to give sustainable
design features as inputs during the design phase. Sustainable materials and practices relevant to
regional procurement and construction methodology may be unavailable to designers unfamil-
iar with the project location.
CMR
With CMR, the owner has a unique opportunity to realize the economic returns for sustain-
able systems performance as well as using sustainability as an evaluation factor for the selection
of a builder. Sustainable construction features are more likely to be implemented considering
the cooperative nature of the owner/constructor contracts in this delivery method.
DB
This project delivery method can result in an inherent coordination of design and perfor-
mance with potential for accelerated economic returns for sustainable systems performance. The
owner has an opportunity to use sustainability to evaluate potential design-builders although
innovation with sustainable criteria related to more advanced technology could be limited due
to a lack of previous installations.
DBOM
In DBOM, because designer, builder, and operator are contractually united, there is an inher-
ent coordination of design and performance with the requisite guaranteed ability to implement
sustainable construction and operational features. DBOM can realize accelerated economic
returns for sustainable systems performance since DBOM contractors have an inherent bias
toward minimizing operations and maintenance lifecycle costs. Added benefits can include par-
ticipation in the development of evaluation criteria for new technologies as part of an ongoing
review of installed systems and lifecycle costs.
Other Issues
This category includes issues that are important to project success that have not been previ-
ously categorized in this chapter.
Issue 23: Construction Claims
The focus of this discussion is how each delivery method exposes the agency to potential con-
flicts and claims. If a delivery method can reduce exposure to construction claims, that delivery
method is a favorable choice, and if it increases the possibility of construction claims, it is an
unfavorable choice.
DBB
This method typically has the highest occurrence of claims and disputes. Disputes often arise
over authority, responsibility, and quality (Walewski, Gibson, and Jasper 2001). Furthermore,
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Advantages/Disadvantages of Each Project Delivery Method 39
as the owner is responsible for design completeness, errors and omissions claims are common
in DBB projects. Some contractors may bid low to win a job and try to enhance their final profit
margin through claims and change orders, especially if design errors or ambiguities are present
in the construction documents. Studies have shown that this delivery method results in the high-
est rate of cost growth, which could be an indication of a large number of claims (Konchar and
Sanvido 1998).
CMR
Assuming a well-structured contract, there is less possibility of claims and disputes in CMR
projects once a GMP is agreed upon and the contract is signed. Because the CMR is present dur-
ing the design process, there is less need for information and clarification of the design docu-
ments. Some professionals think that this approach will result in very few construction claims,
which is a major advantage of the CMR approach [Weber County Commuter Rail]. The
qualifications-based selection methodology creates an effective deterrent to initiating claims by
requiring the CMR to be "successful" on the current contract in order to be competitive for
future projects. The qualifications-based selection process may reduce the possibility of hiring
litigious contractors.
DB
Some research shows that the size and frequency of change orders are less in DB than in other
project delivery methods (Riley, Diller, and Kerr 2005). This delivery method is less prone to
claims and disputes, assuming a well-structured contract. For example, claims for design errors,
a major source of DBB contractors' complaints, are reduced considerably in DB. At the same
time, early pricing leaves the owner vulnerable to claims for scope that was missing in the RFP.
The qualifications-based selection methodology creates an effective deterrent to initiating claims
by requiring the design-builder to be "successful" on the current contract in order to be com-
petitive for future projects.
DBOM
An advantage of DBOM is that at the time of the agreement among all the parties, the maxi-
mum level of contractual obligation is signed. In other words, all parties have obligated themselves
not only for the construction phase but also for several years of operation and maintenance. This
will minimize the challenges of start-up claims and system integration in complex projects
(Kessler 2005). On the other hand, if the DBOM contractor does not have the competencies and
characteristics expected by the owner, or, if the owner has not defined the scope of work ade-
quately, the project will face difficulties during the design, construction, and operation phases.
Issue 24: Adversarial Relationship
Transit projects can be hampered by conflicts between parties to the design and construction
contracts. The higher the level of adversarial relationships in a project, the more likely the proj-
ect will suffer from cost, schedule, and quality problems. Delivery methods define the relation-
ships among all project parties. If the project delivery method encourages project parties to work
together as a team to achieve the project goals and characteristics, it is considered a benefit. Con-
versely, if the project delivery method increases the possibility of adversarial relationships, it is
considered a detriment.
DBB
This delivery method can create an adversarial relationship among the parties to the contract--
mainly between the owner and the construction contractor (Walewski, Gibson, and Jasper 2001;
Irwin 2003; Mahdi and Al-Reshaid 2005). Furthermore, the engineer and the contractor may
