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6 A Guidebook for the Evaluation of Project Delivery Methods
parameters that affect the choice of project delivery method, assigns appropriate weights to each
parameter, and calculates a score for each competing delivery method. The user can use the
material presented in Appendix F for guidance in assigning weights to each parameter.
The Tier 3--Optimal Risk-Based Approach (Tier 3 approach) leverages the current, risk-based,
cost-estimating methods that have emerged in transit and highway agencies in the past few years.
Most project delivery method decisions will be made through completion of the Tier 1 and Tier
2 approaches. The Tier 3 approach will be applied only when a decision has not been made after
completing the Tier 1 and Tier 2 approaches and when a formal risk management process for
the project is already in place. It is important to note that the level of effort involved in using the
Tier 3 approach (especially the quantitative approach) is considerably greater than the effort
required to use the Tier 1 or Tier 2 approaches.
Organization of the Guidebook
This guidebook includes seven chapters and Appendices A and B. Appendices C through H
are available on the TRB website at http://trb.org/news/blurb_detail.asp?id=10054. This first
chapter provides an overview of the work accomplished and a road map for the user of the
guidebook. Chapter 2 describes the characteristics of transit projects, presents the results of
the literature search, and provides clear definitions of various project delivery methods. Dis-
tinguishing characteristics of each delivery method, its advantages and disadvantages, and
legal precedence in project delivery method use are described in Chapter 2. Also, a summary
is provided of the existing methodologies for selection of appropriate project delivery methods.
In addition, recommendations are made for the appropriate point in the project lifecycle to
adopt various delivery methods.
Chapter 3 describes pertinent issues affecting the choice of project delivery method and the
advantages and disadvantages of each project delivery method in relation to these issues. There
are numerous issues that transit agencies need to consider when selecting a project delivery
method. In this research, issues were identified through a literature search, personal experience,
case studies, and interviews with project directors of case study transit projects. Pertinent issues
are categorized as follows:
· Project-level issues,
· Agency-level issues,
· Public policy/regulatory issues,
· Lifecycle issues, and
· Other issues.
These issues and their interactions with different project delivery methods are presented in the
form of a descriptive pro/con analysis. The analysis is based on the trends found in the research
team's interviews with construction directors at various transit agencies and is supported by quo-
tations from relevant literature.
Chapters 4, 5, and 6 describe the Tier 1, 2, and 3 approaches of the project delivery selection
framework, respectively. In order to facilitate and streamline the application of the approaches in
these tiers, blank versions of the tables from these chapters are reproduced in Appendices C, D, E,
and G, which are all available on the TRB website at http://trb.org/news/blurb_detail.asp?id=10054.
The idea is that the user will download/print these blank tables and use them to go through the
three tiers in sequential order. Other appendices contain support material for the guidebook.
Appendix A contains a list of sources referenced in this guidebook. Appendix B contains a glossary
of important terms used in the guidebook. Appendix F describes various methods of assigning
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Overview 7
numerical weights to competing parameters. This material will be useful to the guidebook user in
applying the Tier 2 approach. Appendix H contains the application of the project delivery selec-
tion system to a hypothetical project.
It is the authors' belief that this guidebook is a comprehensive resource for a transit agency
trying to select the most appropriate project delivery method and to document the selection
process and ultimate decision in a concise and easy-to-understand format. It is recommended
that transit agencies use industry professionals from outside the agency to facilitate the imple-
mentation of the methodology contained in this guidebook. These professionals should have a
thorough understanding of and experience with the type of project that the agency is evaluating,
the various project delivery methods that the agency is considering, the potential risks associated
with the type of project the agency is evaluating, and the various project delivery methods being
considered. The use of such professionals will ensure that the appropriate expertise and experi-
ence is incorporated into the process. Facilitation of the process by outside professionals should
also foster an objective selection of the most appropriate project delivery method, thereby min-
imizing the likelihood of a predetermined outcome.
