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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 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 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.