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50 A Guidebook for the Evaluation of Project Delivery Methods Table 4.4. Go/no-go summary form. Issues DBB CMR DB DBOM Project Schedule Constraints Federal/State/Local Laws Third-Party Agreements Labor Unions Note. Shaded areas do not need to be considered by the user. = Applicable for further study X = Not applicable (discontinue evaluation of this method) Comments _____________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ Labor Unions In the states where public sector labor unions are dominant, this issue may affect the choice of delivery methods. It primarily affects DBOM delivery in cases where public unions control the operation and maintenance of the transit project. Public labor unions can also affect DB deliv- ery in places where transit agencies traditionally complete design with public-sector designers. In both of these cases, agency maintenance employees or designers may not allow a delivery method that can outsource jobs to the private sector. In these cases, DBOM or DB may be elim- inated from the list of available options. Upon reviewing these four go/no-go issues, agencies will have a list of viable delivery methods to further consider. Additionally, they should document the reasons for excluding any methods from further consideration. Table 4.4 provides a form for summarizing this go/no-go analysis. Step 4. Review Project Delivery Method Advantages and Disadvantages Step 4 of the project delivery decision involves a critical examination of the advantages and disadvantages of each remaining delivery method. There is no single project delivery method that is appropriate for every project. The objective of this critical examination of the advantages and disadvantages of the delivery methods is to determine how well each method aligns with project goals, project characteristics, agency characteristics, policy/regulatory issues, and lifecycle requirements. In Step 4, agencies examine 24 separate issues that affect project delivery method selection (see Chapter 3 for a discussion of these issues) and rate the appropriateness of each delivery method in relation to each issue. For each issue, an Advantages/Disadvantages Form listing the general advantages/disadvantages of each project delivery method for that issue and an Issue Summary Table are provided. To determine the appropriateness of each project delivery method in rela- tion to a particular issue, agencies should understand the issue, analyze the delivery methods, and complete the Issue Summary Table. These three actions are described in more detail in the following: Understand the issue. Read the brief description of each issue. Refer to Chapter 3 for an expanded description of the issue if needed. Analyze the delivery methods. Using the Advantages/Disadvantages Form provided, review the advantages and/or disadvantages of each delivery method in relation to the issue. Please

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Tier 1--Analytical Delivery Decision Approach 51 note that the advantages and disadvantages listed in the Advantages/Disadvantages Form are based on general experience with that issue; a specific project may have characteristics that will affect how knowledge gained from general experience applies. Users are urged to consider these general advantages and disadvantages as they apply to the specific project in question. Refer to Chapter 3 for an expanded description of the issue if needed. Complete the Issue Summary Table. Upon reviewing the advantages and disadvantages of each delivery method in relation to the issue and analyzing the implications for the specific project in question, rate the appropriateness of each delivery method in the Issue Summary Table using the following symbols: Most appropriate Appropriate Least appropriate X Not applicable The 24 issues to be considered are presented below grouped into the five categories in which they were introduced in Chapter 3: Project-level issues, Agency-level issues, Public policy/regulatory issues, Lifecycle issues, and Other issues. Project-Level Issues Issue 1: Project Size Project size reflects the dollar value and physical dimensions of the transit corridor. Advantages/Disadvantages Form--Project Size Design-Bid-Build (DBB) Advantages Disadvantages DBB has been shown to work on projects of all As projects grow in size, the amount of owner sizes. staffing required to oversee DBB can become very large. Construction Manager at Risk (CMR) Advantages Disadvantages CMR has been shown to work on projects If not managed well, the use of multiple bid of all sizes. packages to facilitate CMR can be difficult. Design-Build (DB) Advantages Disadvantages DB has been shown to work on projects of all As projects grow in size, there can be large sizes. peaks in owner staffing requirements with DB Some owners have noted that DB can facilitate (e.g., during RFP development, during design better management of large projects due to the review, etc.). single source of responsibility. Design-Build-Operate-Maintain (DBOM) Advantages Disadvantages DBOM is appropriate for large projects. DBOM is not appropriate for smaller projects Similar to DB, DBOM can facilitate better due to the overhead costs (e.g., for management of large projects due to the single maintenance etc.) source of responsibility. Similar to DB, DBOM can necessitate large peaks in owner staffing requirements.

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52 A Guidebook for the Evaluation of Project Delivery Methods Table 4.5. Project size advantages/disadvantages summary. Issue DBB CMR DB DBOM 1. Project Size Key: Most appropriate delivery method Appropriate delivery method Least appropriate delivery method X Not applicable (discontinue evaluation of this method) Comments _____________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ Issue 2: Cost This issue includes several aspects of project cost, such as ability to handle budget restrictions, early and precise cost estimation, and consistent control of project costs. Advantages/Disadvantages Form--Cost Design-Bid-Build (DBB) Advantages Disadvantages Costs are known at bid time, before Construction costs are not fixed (or locked in) construction begins. until design is 100% complete. Project can benefit from low bid procurement. Constructability advice and contractor Project can benefit from unit price bidding innovations are not available to lower cost until because quantities are defined prior to post bid. procurement. The DBB process is prone to change orders and cost growth after award. Construction Manager at Risk (CMR) Advantages Disadvantages CMR can be used in conjunction with a GMP If multiple bid packages are used, the overall pricing structure, which can be useful in project cost could grow if later bid packages negotiating and controlling costs. cost more than estimated. If open book pricing can be used, all costs will If a GMP pricing structure is used, owners may be known by the owner. have some difficulty in negotiation. Costs will be known earlier when compared to DBB. Early constructor involvement or construction advice can lead to cost savings through value engineering and constructability reviews. Design-Build (DB) Advantages Disadvantages If a lump sum pricing structure is used, costs If a lump sum pricing structure is used, will be fixed early in the project development constructors must develop prices before plans process. are 100% complete and therefore must assume DB has been shown to have lower average some risk in pricing. cost growth than DBB or CMR.

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Tier 1--Analytical Delivery Decision Approach 53 Design-Build-Operate-Maintain (DBOM) Advantages Disadvantages Owner is provided with fixed cost for design, Due to the large amount of risk being taken by construction, and maintenance very early in the the DBOM provider, costs may be higher if the process. providers are not given opportunities to find efficiencies. DBOM pricing may be hard to negotiate due to the complexity and timeframe of maintenance contracts. Table 4.6. Cost advantages/disadvantages summary. Issue DBB CMR DB DBOM 2. Cost Key: Most appropriate delivery method Appropriate delivery method Least appropriate delivery method X Not applicable (discontinue evaluation of this method) Comments _____________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ Issue 3: Schedule This issue includes two aspects of project schedule--the ability to shorten the schedule and the opportunity to control and prevent time growth. Advantages/Disadvantages Form--Schedule Design-Bid-Build (DBB) Advantages Disadvantages None. Likely to yield longest delivery schedule. Likely to yield the largest schedule growth. There is no opportunity to compress schedule due to the linear nature of DBB. Construction Manager at Risk (CMR) Advantages Disadvantages Facilitates fast-tracking, or the ability to bid Risk that overlapping design and construction multiple design packages. packages may create delays if not properly Studies have shown that CMR is faster on coordinated. average than DBB, but slower than DB. Fast-tracking schedule will require owner effort in design and construction reviews. Design-Build (DB) Advantages Disadvantages Provides a single point of responsibility (DB Owner will sacrifice the checks and balances of contractor) for schedule control. having a 100%-complete design prior to start of Provides early schedule certainty. construction. Historically, provides the least schedule Rapid schedule will require owner effort in growth. design and construction reviews. Provides opportunities for flexibility in schedule compression. Studies have shown that DB is faster on average than DBB or CMR.

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54 A Guidebook for the Evaluation of Project Delivery Methods Design-Build-Operate-Maintain (DBOM) Advantages Disadvantages Provides a single point of responsibility (DB Owner will sacrifice the advantage of having contractor) for schedule control. complete design prior to start of construction. Provides early schedule certainty. Rapid schedule will require owner effort in Historically provides the least schedule growth. design and construction reviews. Provides opportunities for flexibility in schedule compression. Will facilitate start-up process due to a single point of responsibility for design, construction, and operation. Historically faster than DBB or CMR. Table 4.7. Schedule advantages/disadvantage summary. Issue DBB CMR DB DBOM 3. Schedule Key: Most appropriate delivery method Appropriate delivery method Least appropriate delivery method X Not applicable (discontinue evaluation of this method) Comments _____________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ Issue 4: Risk Management This issue involves methods for coping with project uncertainties that are inherent in each delivery method. For more detailed guidance, please see Tier 3 for a risk-based approach to selecting project delivery methods. Advantages/Disadvantages Form--Risk Management Design-Bid-Build (DBB) Advantages Disadvantages Provides historically well-defined and well- Constructor cannot participate in risk understood risk-management processes. management during design. Prescriptive designs and specifications allow Constructor's ability to manage risk is for greater detail in risk allocation. constrained by low-bid procurement. Construction Manager at Risk (CMR) Advantages Disadvantages Construction manager understands and Risk-management process can be more participates in risk-management process during complex due to separate design, construction, design. and construction management contracts. Design-Build (DB) Advantages Disadvantages Single point of responsibility for risk Owner may lose some ability to participate in management in design and construction. the risk-management process.

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Tier 1--Analytical Delivery Decision Approach 55 Design-Build-Operate-Maintain (DBOM) Advantages Disadvantages Single point of responsibility for risk allocation Owner may lose some ability to participate in in design, construction, operation, and the risk-management process for design, maintenance. construction, operation, and maintenance. Table 4.8. Risk-management advantages/disadvantages summary. Issue DBB CMR DB DBOM 4. Risk Management Key: Most appropriate delivery method Appropriate delivery method Least appropriate delivery method X Not applicable (discontinue evaluation of this method) Comments _____________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ Issue 5: Risk Allocation Each project delivery method has characteristics that affect risk allocation. The overarching goal should be to select the project delivery method that assigns project risks to the parties in the best position to manage them. Advantages/Disadvantages Form--Risk Allocation Design-Bid-Build (DBB) Advantages Disadvantages A clear risk allocation has been established Constructor cannot participate in risk-allocation due to history of use and statutory case law. discussions during design. Conflicts can exist in risk allocation between separate design and construction contracts. Construction Manager at Risk (CMR) Advantages Disadvantages Construction manager understands and Conflicts can exist in risk allocation among the participates in risk allocation during design. separate design, construction, and construction Prescriptive designs and specifications allow management contracts. for greater detail in risk allocation. Design-Build (DB) Advantages Disadvantages Provides a single party for risk allocation in Risks must be allocated through conceptual both design and construction. design and performance specifications. Design-builder owns risk for design errors and omissions. Design-Build-Operate-Maintain (DBOM) Advantages Disadvantages Provides single-party risk allocation in design, Risks must be allocated through conceptual construction, and maintenance. design and performance specifications for Constructor owns risk for design errors and design, construction, operation, and omissions in construction, operations, and maintenance. maintenance.

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56 A Guidebook for the Evaluation of Project Delivery Methods Table 4.9. Risk-allocation advantages/disadvantages summary. Issue DBB CMR DB DBOM 5. Risk Allocation Key: Most appropriate delivery method Appropriate delivery method Least appropriate delivery method X Not applicable (discontinue evaluation of this method) Comments _____________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ Issue 6: LEED Certification This issue concerns obtaining LEED certification for a project. Each project delivery method needs to be examined to discover its ability to include features that will facilitate obtaining LEED certification in accordance with the owner's needs. Advantages/Disadvantages Form--LEED Certification Design-Bid-Build (DBB) Advantages Disadvantages LEED certification can be established in more Provides the least opportunity for constructor to detail during design period. participate in LEED process during design. Separate design packages can create difficulty in coordinating LEED elements in construction. Construction Manager at Risk (CMR) Advantages Disadvantages Construction manager can offer its construction Separate design packages can create difficulty expertise during design decisions that involve in coordinating LEED elements in construction. LEED issues. Design-Build (DB) Advantages Disadvantages Owner can use some LEED certification Owner may not be involved in all LEED elements to select constructor. decisions. Single point of responsibility is provided for LEED certification in design and construction. Design-Build-Operate-Maintain (DBOM) Advantages Disadvantages Owner can use some LEED certification Owner may not be involved in all LEED elements to select constructor. decisions. In addition to having a single point of responsibility provided for LEED certification in design and construction, many LEED principles are in alignment with the constructor's motivation to minimize operating costs.

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Tier 1--Analytical Delivery Decision Approach 57 Table 4.10. LEED Certification Advantages/Disadvantages Summary. Issue DBB CMR DB DBOM 6. LEED Certification Key: Most appropriate delivery method Appropriate delivery method Least appropriate delivery method X Not applicable (discontinue evaluation of this method) Comments _____________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ Agency-Level Issues Issue 7: Agency Experience The level of experience of an owner's staff can affect the success of an alternative project delivery method application. Advantages/Disadvantages Form--Agency Experience Design-Bid-Build (DBB) Advantages Disadvantages Since this is the traditional method of project None. delivery, owners will likely have the most experience with this method. Construction Manager at Risk (CMR) Advantages Disadvantages CMR is similar to DBB in many key aspects Agencies may not have experience with GMP where agencies have experience (e.g., pricing or the negotiation that can be involved. separation of design and construction). Agencies may not have experience in the use of multiple bid packages to facilitate fast-track construction. Design-Build (DB) Advantages Disadvantages Agencies can take advantage of the sole point Agencies may not have experience authoring of responsibility for design and construction to DB RFPs and conducting procurements. leverage their experience. Agencies may not have experience administering DB contracts, particularly in the area of design review and administration. DB necessitates experienced staff to manage design and construction under one contract. Design-Build-Operate-Maintain (DBOM) Advantages Disadvantages Similar to DB, agencies can take advantage of Agencies may not have experience authoring the sole point of contact for design, DBOM RFPs and conducting procurements. construction, and maintenance to leverage Agencies may not have experience their experience. administering DBOM contracts, particularly in the area of design review and administration. DBOM necessitates the most experienced staff to manage design, construction, and maintenance under one contract.

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58 A Guidebook for the Evaluation of Project Delivery Methods Table 4.11. Agency experience advantages/disadvantages summary. Issue DBB CMR DB DBOM 7. Agency Experience Key: Most appropriate delivery method Appropriate delivery method Least appropriate delivery method X Not applicable (discontinue evaluation of this method) Comments _____________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ Issue 8: Staffing Required This issue ultimately concerns the amount of owner involvement required by each delivery method. The total number of owner employees is one measure of the extent of owner involve- ment. Another important measure for the owners is the variation in the number of staff required throughout the project development process. Advantages/Disadvantages Form--Staffing Required Design-Bid-Build (DBB) Advantages Disadvantages The separation of design and construction DBB typically requires a larger owner staff than phases provides less variation in owner staffing the other delivery methods. levels. DBB typically requires a higher level of owner involvement. Construction Manager at Risk (CMR) Advantages Disadvantages The CMR alternative can use the least number The owner will need to have a number of staff of owner employees if the CMR is allowed to members with the ability to oversee and take on the traditional owner tasks. negotiate with the CMR during the process. Design-Build (DB) Advantages Disadvantages DB can greatly reduce the number of required DB creates peaks in owner staffing needs, owner employees particularly during procurement and design Design and construction reviews can be done review periods. in shorter periods of time. While fewer owner staff members are needed, more experienced staff members are required. Design-Build-Operate-Maintain (DBOM) Advantages Disadvantages Similar to DB, DBOM can greatly reduce the DBOM can create larger peaks in owner staffing number of required owner staff members. needs during procurement and design review Design and construction reviews can be done due to the inclusion of maintenance and finance in shorter periods of time. issues in the process. While fewer owner staff members are needed, more experienced staff members are required.

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Tier 1--Analytical Delivery Decision Approach 59 Table 4.12. Staff required advantages/disadvantages summary. Issue DBB CMR DB DBOM 8. Staff Required Key: Most appropriate delivery method Appropriate delivery method Least appropriate delivery method X Not applicable (discontinue evaluation of this method) Comments _____________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ Issue 9: Staff Capability This issue regards the owner's requirement to furnish a highly capable staff to complete the duties it must undertake in each delivery method. Advantages/Disadvantages Form--Staff Capability Design-Bid-Build (DBB) Advantages Disadvantages DBB is traditionally aligned with owner staff As projects grow in size, a more experienced capabilities. staff is required. Owners typically have different staff members to oversee design and construction processes. Construction Manager at Risk (CMR) Advantages Disadvantages The CMR can augment an owner's capabilities Owners must have experienced staff to oversee with his own staff. the CMR. Owners may lack some capability in negotiating prices, developing designs, and managing the constructor's inputs during the design phase. Design-Build (DB) Advantages Disadvantages One entity will be responsible for both design Similar to CMR, DB is an alternative delivery and construction. method, and it is advisable to have staff members with DB oversight experience. Owners will need staff capabilities in developing procurement documents and performance criteria. Owners will need staff capabilities in reviewing design under a DB contract. Design-Build-Operate-Maintain (DBOM) Advantages Disadvantages One entity will be responsible for design, Similar to DB, DBOM is an alternative delivery construction, operations, and maintenance. method, and it is advisable to have staff members with DBOM oversight experience. Owners will need staff capabilities in developing procurement documents and performance criteria. Owners will need staff capabilities in analyzing complex financial proposals. Owners will need staff capabilities in reviewing design under a DB contract.

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60 A Guidebook for the Evaluation of Project Delivery Methods Table 4.13. Staff capability advantages/disadvantages summary. Issue DBB CMR DB DBOM 9. Staff Capability Key: Most appropriate delivery method Appropriate delivery method Least appropriate delivery method X Not applicable (discontinue evaluation of this method) Comments _____________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ Issue 10: Agency Goals and Objectives Agency goals define project success. The extent to which these goals align with the inherent attributes of each project delivery method has a significant bearing on delivery method selection. Advantages/Disadvantages Form--Agency Goals and Objectives Design-Bid-Build (DBB) Advantages Disadvantages The DBB process allows for goals to be Separate design and construction contracts can defined through the design process. make goals more difficult to align and manage. If not developed correctly, detailed designs and prescriptive specifications can conflict with agency goals. Construction Manager at Risk (CMR) Advantages Disadvantages Agency can involve the CMR in refinement of The agency must have the goals substantially goals while working together to refine the developed when the construction manager scope and the GMP. contract is awarded. Qualifications-based construction manager The negotiation of a GMP may inhibit the selection can align the team with the project alignment of project goals between the agency goals. and the construction manager. Design-Build (DB) Advantages Disadvantages Best-value design-builder selection can align To ensure success, agencies must completely the team with the project goals. understand goals prior to awarding the DB Properly written procurement performance contract. criteria can help design-builders innovate to achieve project goals. Design-Build-Operate-Maintain (DBOM) Advantages Disadvantages In addition to the DB advantages, DBOM Similar to DB, agencies must completely allows owners to include lifecycle and understand goals prior to awarding the DBOM maintenance goals in the contract. contract.

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64 A Guidebook for the Evaluation of Project Delivery Methods Design-Build-Operate-Maintain (DBOM) Advantages Disadvantages Qualifications-based selection factors can be Proposal package size and bid preparation applied to select only the most highly qualified costs can decrease the number of qualified design-builders. bidders. Lengthy contract duration and extra competencies required for the operation and maintenance part of the contract decrease the number of bidders. Opposition from public-sector employees, unions, or other interested parties can exclude the DBOM method from consideration (see Step 3-Review Go/No-Go Decision Points). Table 4.17. Competition advantages/disadvantages summary. Issue DBB CMR DB DBOM 13. Competition Key: Most appropriate delivery method Appropriate delivery method Least appropriate delivery method X Not applicable (discontinue evaluation of this method) Comments _____________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ Issue 14: DBE Impacts The extent to which the delivery methods can be used to promote participation of disadvan- taged businesses forms the advantages and disadvantages of this issue. Advantages/Disadvantages Form--DBE Impacts Design-Bid-Build (DBB) Advantages Disadvantages Agencies can include DBE requirements in Low-bidding environment may harm future both design and construction requirements. viability of DBE companies. DBE involvement is known at time of award for design and construction. Construction Manager at Risk (CMR) Advantages Disadvantages Agencies can include DBE requirements in Due to the phased nature of CMR contracts, the both design and construction requirements. final DBE involvement may not be known until DBE involvement is known at time of award for the project is ultimately completed. design and construction. Design-Build (DB) Advantages Disadvantages Agencies can include DBE requirements in the Owners can set DBE requirements, but because RFP for design and construction requirements. all subcontractors are not known at the time of award, there is a risk that design-builders may not achieve the DBE goals that they specify in their proposals.

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Tier 1--Analytical Delivery Decision Approach 65 Design-Build-Operate-Maintain (DBOM) Advantages Disadvantages Agencies can include DBE requirements in the Owners can set DBE requirements, but because RFP for design, construction, and maintenance all subcontractors are not known at the time of requirements. award, there is a risk that design-builders may not achieve the DBE goals that they specify in their proposals. Table 4.18. DBE impacts advantages/disadvantages summary. Issue DBB CMR DB DBOM 14. DBE Impacts Key: Most appropriate delivery method Appropriate delivery method Least appropriate delivery method X Not applicable (discontinue evaluation of this method) Comments _____________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ Issue 15: Labor Unions The choice of delivery method may have an impact on labor usage and hence labor union issues. These issues can be both internal to the transit agency as well as external with its contractors. Advantages/Disadvantages Form--Labor Unions Design-Bid-Build (DBB) Advantages Disadvantages The DBB process is well established, so there None. is generally no fundamental opposition from unions. Construction Manager at Risk (CMR) Advantages Disadvantages Similar to DBB, there is generally no Construction managers do not generally fundamental opposition from unions. guarantee prices if there are issues with labor unions. Design-Build (DB) Advantages Disadvantages None. Opposition from public design unions can exclude the DB method from consideration (see Step 3-Review Go/No-Go Decision Points). Design-builders do not generally guarantee prices if there are issues with labor unions.

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66 A Guidebook for the Evaluation of Project Delivery Methods Design-Build-Operate-Maintain (DBOM) Advantages Disadvantages None Opposition from public design unions can exclude the DBOM method from consideration (see Step 3-Review Go/No-Go Decision Points). Opposition from public maintenance unions can exclude the DB method from consideration (see Step 3-Review Go/No-Go Decision Points). Design-builders do not generally guarantee prices if there are issues with labor unions. Table 4.19. Labor unions advantages/disadvantages summary. Issue DBB CMR DB DBOM 15. Labor Unions Key: Most appropriate delivery method Appropriate delivery method Least appropriate delivery method X Not applicable (discontinue evaluation of this method) Comments _____________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ Issue 16: Federal/State/Local Laws Transit agencies many not be able to use some delivery methods due to state or local laws. Some of the states require that transit agencies go through several steps before being allowed to use an alternative delivery method. The advantages and disadvantages of each project delivery method for this issue reflect the level of difficulty of using a delivery method from a legal standpoint. Advantages/Disadvantages Form--Federal/State/Local Laws Design-Bid-Build (DBB) Advantages Disadvantages All states are authorized to use DBB. None. Construction Manager at Risk (CMR) Advantages Disadvantages Some states allow more flexible procurement Some state agencies are not authorized to use regulations with CMR, which can be CMR or need to get extra approvals (see Step advantageous in appropriate situations to 3-Review Go/No-Go Decision Points). expedite project development. Design-Build (DB) Advantages Disadvantages Some states allow more flexible procurement Some state agencies are not authorized to use regulations with DB, which can be DB or need to get extra approvals (see Step 3- advantageous in appropriate situations to Review Go/No-Go Decision Points). expedite project development.

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Tier 1--Analytical Delivery Decision Approach 67 Design-Build-Operate-Maintain (DBOM) Advantages Disadvantages Some states allow more flexible procurement State laws and regulations for DBOM are similar regulations with DBOM, which can be to DB (see Step 3-Review Go/No-Go Decision advantageous in appropriate situations to Points). expedite project development. Table 4.20. Federal/state/local laws advantages/disadvantages summary. Issue DBB CMR DB DBOM 16. Federal/State/Local Laws Key: Most appropriate delivery method Appropriate delivery method Least appropriate delivery method X Not applicable (discontinue evaluation of this method) Comments _____________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ Issue 17: FTA/EPA Regulations The extent to which the various delivery methods can accommodate FTA requirements and EPA regulations given the unique project characteristics constitutes the advantages and dis- advantages of this issue. Advantages/Disadvantages Form--FTA/EPA Regulations Design-Bid-Build (DBB) Advantages Disadvantages Familiarity of agencies with this method The final cost and schedule are established long facilitates permit and funding process. after the Full Funding Grant Authorization (FFGA), which can be problematic if FFGA cost and schedule estimates are not met. Construction Manager at Risk (CMR) Advantages Disadvantages Construction managers can help facilitate the The use of a GMP with separate design and environmental process. construction packages can result in a final cost and schedule confirmation long after the FFGA. Design-Build (DB) Advantages Disadvantages FTA has gained some experience and has The design required to acquire environmental modified its procedures to use DB. permits before hiring a design-builder may Cost and schedule are fixed near the FFGA. cause delays and negate some of the advantages of the DB method. Design-Build-Operate-Maintain (DBOM) Advantages Disadvantages FTA has gained some experience and has The design required to acquire environmental modified its procedures. permits before hiring a design-builder may Cost and schedule are fixed near the FFGA. cause delays and negate some of the advantages of the DB method.

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68 A Guidebook for the Evaluation of Project Delivery Methods Table 4.21. FTA/EPA regulations advantages/disadvantages summary. Issue DBB CMR DB DBOM 17. FTA/EPA Regulations Key: Most appropriate delivery method Appropriate delivery method Least appropriate delivery method X Not applicable (discontinue evaluation of this method) Comments _____________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ Issue 18: Stakeholder/Community Input This issue addresses the opportunity for stakeholder involvement afforded by each delivery method. Advantages/Disadvantages Form--Stakeholder/Community Input Design-Bid-Build (DBB) Advantages Disadvantages Separate design and construction phases The opportunity for stakeholder changes in provide an opportunity to get stakeholders' design can cause delay in the project and add inputs before the commencement of to the costs in the form of change orders. construction. Construction Manager at Risk (CMR) Advantages Disadvantages The construction experience of the construction Stakeholder input can make GMP negotiation manager can help facilitate stakeholder input. troublesome if not managed correctly. Design-Build (DB) Advantages Disadvantages The owner can require the DB contractor to Any change because of community inputs after include a public information and outreach the issuance of an RFP can be costly. program to facilitate communities' inputs. Design-builders can be innovative in helping gain community involvement. Design-Build-Operate-Maintain (DBOM) Advantages Disadvantages The owner can require the DB contractor to Any change because of community inputs after include a public information and outreach the issuance of an RFP can be costly. program to facilitate communities' inputs. Design-builders can be innovative in helping gain community involvement.

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Tier 1--Analytical Delivery Decision Approach 69 Table 4.22. Stakeholder/community input advantages/disadvantages summary. Issue DBB CMR DB DBOM 18. Stakeholder/Community Input Key: Most appropriate delivery method Appropriate delivery method Least appropriate delivery method X Not applicable (discontinue evaluation of this method) Comments _____________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ Lifecycle Issues Issue 19: Lifecycle Costs Delivery methods can influence costs in the operation and maintenance phase. This issue concerns the opportunities or challenges that each delivery method provides with regard to life- cycle costs. Advantages/Disadvantages Form--Lifecycle Costs Design-Bid-Build (DBB) Advantages Disadvantages The agency can control lifecycle costs through The DBB system allows for little constructor completed design and performance input into lifecycle costs. specifications. Construction Manager at Risk (CMR) Advantages Disadvantages CMR has all benefits of DBB, plus the agency If lifecycle performance criteria are not well can leverage the construction manager's input understood during the development of the GMP, into lifecycle costs. lifecycle issues may be difficult to incorporate into the final product. Design-Build (DB) Advantages Disadvantages The agency can use performance criteria to set If lifecycle performance criteria are not well lifecycle performance standards and rely on understood at the procurement stage, they will design-builder innovation to achieve these not be incorporated into the DB contract. standards. Design-Build-Operate-Maintain (DBOM) Advantages Disadvantages The design-builder is responsible for The agency will not have complete control over maintenance in the DBOM contract and will be all lifecycle issues that are not included as highly motivated to provide optimal lifecycle performance criteria in the contract. designs. The agency can use performance criteria to set lifecycle performance standards and rely on design-builder innovation to achieve these standards.

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70 A Guidebook for the Evaluation of Project Delivery Methods Table 4.23. Lifecycle costs advantages/disadvantages summary. Issue DBB CMR DB DBOM 19. Lifecycle Costs Key: Most appropriate delivery method Appropriate delivery method Least appropriate delivery method X Not applicable (discontinue evaluation of this method) Comments _____________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ Issue 20: Maintainability The issue of maintainability involves the owner's ability to specify quality and ease of mainte- nance. There are advantages and disadvantages to each delivery method with regard to how maintainability is achieved. Advantages/Disadvantages Form--Maintainability Design-Bid-Build (DBB) Advantages Disadvantages The opportunity to view completed plans before There is little opportunity for constructors to award allows agencies to review maintenance have input into maintenance issues. issues in designs. Construction Manager at Risk (CMR) Advantages Disadvantages CMR has all the benefits of DBB, plus the If maintainability issues are not well understood agency can leverage a construction manager's during the development of the GMP, they may input into maintenance issues. be difficult to incorporate into the final product. Design-Build (DB) Advantages Disadvantages The agency can emphasize maintainability If maintainability issues are not well understood issues through performance criteria and best- at the procurement stage, they will not be value award factors. incorporated into the DB contract. Design-Build-Operate-Maintain (DBOM) Advantages Disadvantages The design-builder is responsible for The agency will not have complete control over maintenance in the DBOM contract and will be all maintainability issues that are not included as highly motivated to provide optimal lifecycle performance criteria in the contract. designs. The agency can emphasize maintainability issues through performance criteria and best- value award factors.

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Tier 1--Analytical Delivery Decision Approach 71 Table 4.24. Maintainability advantages/disadvantages summary. Issue DBB CMR DB DBOM 20. Maintainability Key: Most appropriate delivery method Appropriate delivery method Least appropriate delivery method X Not applicable (discontinue evaluation of this method) Comments _____________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ Issue 21: Sustainable Design Goals Sustainable design is becoming ever more important in achieving overall sustainability goals for projects. There are advantages and disadvantages to each delivery method in terms of addressing sustainability issues and incorporating sustainable design in a project. Advantages/Disadvantages Form--Sustainable Design Goals Design-Bid-Build (DBB) Advantages Disadvantages Agencies can work with designers to The process provides little opportunity for incorporate sustainable designs into complete constructability reviews to ensure that designs. sustainable designs can be constructed efficiently and are not cost prohibitive. Construction Manager at Risk (CMR) Advantages Disadvantages CMR has all the benefits of DBB, plus the The use of separate bid packages can create agency can leverage the construction barriers in the integration of sustainable manager's input into sustainable design issues. solutions if not approached correctly. Design-Build (DB) Advantages Disadvantages The agency can emphasize sustainable design If sustainable design issues are not well issues through performance criteria and best- understood at the procurement stage, they will value award factors. not be incorporated into the DB contract. Integration of the design and construction team can enhance constructability of designs. Design-Build-Operate-Maintain (DBOM) Advantages Disadvantages The agency can emphasize sustainable design If sustainable design issues are not well issues through performance criteria and best- understood at the procurement stage, they will value award factors. not be incorporated into the DB contract. Integration of the design and construction team can enhance constructability of designs. DBOM contractors can realize economic returns for sustainable designs since they have an inherent bias toward minimizing operations and maintenance lifecycle costs.

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72 A Guidebook for the Evaluation of Project Delivery Methods Table 4.25. Sustainable design goals advantages/disadvantages summary. Issue DBB CMR DB DBOM 21. Sustainable Design Goals Key: Most appropriate delivery method Appropriate delivery method Least appropriate delivery method X Not applicable (discontinue evaluation of this method) Comments _____________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ Issue 22: Sustainable Construction Goals In addition to sustainable design, sustainable construction is an important vehicle for achiev- ing overall sustainability goals. There are advantages and disadvantages to each project delivery method with regard to facilitating sustainable construction. Advantages/Disadvantages Form--Sustainable Construction Goals Design-Bid-Build (DBB) Advantages Disadvantages Prescriptive specifications can be used to There is little opportunity or incentive for define sustainable construction practices prior constructor to do more than what is specified in to construction. terms of sustainable construction practices. Agencies can assume liability when prescribing construction methods. Construction Manager at Risk (CMR) Advantages Disadvantages The agency can leverage the construction The use of separate bid packages can create manager's input into sustainable construction barriers in the integration of sustainable issues. solutions if not approached correctly. Design-Build (DB) Advantages Disadvantages The agency can emphasize sustainable If sustainable construction issues are not well construction issues through performance understood at the procurement stage, they will criteria and best-value award factors. not be incorporated into the DB contract. Integration of the design and construction team can enhance the use of sustainable construction practices. Design-Build-Operate-Maintain (DBOM) Advantages Disadvantages DBOM contractors can realize economic If sustainable construction issues are not well returns for sustainable designs since they have understood at the procurement stage, they will an inherent bias toward minimizing operations not be incorporated into the DBOM contract. and maintenance lifecycle costs.

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Tier 1--Analytical Delivery Decision Approach 73 Table 4.26. Sustainable construction goals advantages/disadvantages summary. Issue DBB CMR DB DBOM 22. Sustainable Construction Goals Key: Most appropriate delivery method Appropriate delivery method Least appropriate delivery method X Not applicable (discontinue evaluation of this method) Comments _____________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ Other Issues Issue 23: Construction Claims The effect of each delivery method on exposing the agency to potential conflicts and claims is addressed under this issue. Advantages/Disadvantages Form--Construction Claims Design-Bid-Build (DBB) Advantages Disadvantages DBB has a well-understood legal precedent for DBB historically has the highest occurrence of construction claims. claims and disputes, which often occur in the areas of authority, responsibility and quality. The low-bid environment can provide incentives for a constructor to file claims--particularly if there is any ambiguity in the plans. Construction Manager At Risk (CMR) Advantages Disadvantages Having the constructor on the team early Since design and construction contracts are during design can lessen the likelihood for separate, the potential for disputes and claims disputes and claims regarding designs. regarding design still exist. If multiple bid packages are not managed correctly, the coordination of these bid packages can result in claims. Design-Build (DB) Advantages Disadvantages The single source for design and construction There is potential for claims with regard to eliminates claims for design errors or scope definition if the form of the DB contract is omissions from the agency's perspective. not well understood. Design-Build-Operate-Maintain (DBOM) Advantages Disadvantages DBOM has similar advantages to DB and There is potential for claims with regard to additionally eliminates claims regarding scope definition if the form of the DBOM operating performance due to the integration of contract is not well understood. the operator.

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74 A Guidebook for the Evaluation of Project Delivery Methods Table 4.27. Construction claims advantages/disadvantages summary. Issue DBB CMR DB DBOM 23. Construction Claims Key: Most appropriate delivery method Appropriate delivery method Least appropriate delivery method X Not applicable (discontinue evaluation of this method) Comments _____________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ Issue 24: Adversarial Relationship There are advantages and disadvantages to each project delivery method with regard to avoiding adversarial relationships on the project team. These advantages and disadvantages will vary depending on the nature of the project and the owner's experience with the delivery methods. Advantages/Disadvantages Form--Adversarial Relationship Design-Bid-Build (DBB) Advantages Disadvantages Roles and responsibilities in DBB contract are DBB can create an adversarial relationship very well understood in the industry. between the parties; primarily between the owner and construction contractor. Construction Manager at Risk (CMR) Advantages Disadvantages Inclusion of the construction manager in the Negotiation of GMP can create an adversarial design process can align team members and situation if the process is not well understood. lessen adversarial relationships. Design-Build (DB) Advantages Disadvantages Inclusion of the designer and constructor on Due to the loss of control over the details of the same team can lessen adversarial design, DB requires a high level of trust relationships. between the owner and design-builder. Without this trust, design-build can become adversarial. Design-Build-Operate-Maintain (DBOM) Advantages Disadvantages Inclusion of the designer, constructor, and Similar to DB, a DBOM delivery requires a high maintenance contractor on the same team can level of trust to succeed. lessen adversarial relationships.