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OCR for page 48
48 A Guidebook for Selecting Airport Capital Project Delivery Methods
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 the critical examination is to determine how
well each project delivery method aligns with project goals, project characteristics, airport char-
acteristics, policy/regulatory issues, and lifecycle requirements.
In Step 4, airports examine 19 pertinent issues that affect project delivery method selection (the
19 issues are described in detail in Chapter 3 of this guidebook) and rate the appropriateness of each
delivery method in relation to each issue. For each issue, an Advantages/Disadvantages Form and
an Advantages/Disadvantages Summary Table are provided. To determine the appropriateness of
each project delivery method in relation to a particular issue, airports should understand the issue,
analyze the issue as it relates to the delivery methods, and complete the Issue Advantages/Disadvan-
tages 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 issue as it relates to the delivery methods. Using the Advantages/Disadvantages
Form provided, read the issue statements listed for each pertinent issue for each delivery
method. After reading the issue statements, determine whether the issue statement is an advan-
tage or disadvantage as it applies to the particular project in question. Please note that an issue
statement may be either an advantage or a disadvantage depending on the characteristics of the
project, the owner, or the market. Again, refer to Chapter 3 for an expanded description of the
issue if needed. Analyze each issue statement, determine whether the issue statement is an advan-
tage or disadvantage, and document the determination in the Advantages/Disadvantages Form
with any relevant notes. Note: it is not necessary to label each issue statement as an advantage or
disadvantage, focus only on the important issue statements under each pertinent issue for the proj-
ect in question.
Also note that one can add to the columns in Tables 4-4 through 4-22. This happens if, in a
project, the decision-maker decides to include more than one type of DB procurement method.
Refer to the section in Chapter 2 titled "Definitions of the Delivery Methods" for procurement
options. DB procurement options considered in the Tier 1 approach are primarily Best-Value
Procurement with Fixed Price and Qualifications-Based Procurement with Negotiated Price. DB
Low Bid is an option, but it is not recommended in this guidebook for the majority of DB proj-
ects. Note that for each pertinent issue, the same issue statements will be considered for any DB
procurement option. The user will respond to only those issue statements that are relevant to his
choice of DB procurement option. If, for whatever reason, the decision-maker decides to con-
sider more than one type of DB, he can copy the sections on DB and fill in each copy with one DB
procurement option in mind. Also, a new column can be added to Tables 4-4 through 4-22 to
allow a comparison of those DB options with other project delivery methods. Note that if any of
the summary tables (Tables 4-4 through 4-22) include more than one DB option, this will need
to be carried over to Table 4-23, in which the summary ratings from each issue analysis are
recorded.
· Complete the Issue Advantages/Disadvantages Summary Table. Review the advantages and
disadvantages associated with each delivery method and analyze their implications. In the
Issue Advantages/Disadvantages Summary Table, rate the appropriateness of each project
delivery method using the following system:
Most appropriate delivery method
Appropriate delivery method
Least appropriate delivery method
X Not applicable (discontinue evaluation of this method)
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Tier 1--Analytical Delivery Decision Approach 49
Project-Level Issues
Issue 1: Project Size/Complexity
This issue concerns the airport project's dollar value and complexity based on the type of
project.
Advantages/Disadvantages Form--Project Size/Complexity
Design-Bid-Build (DBB)
Issue Statements Advantage Disadvantage
DBB has been shown to work on projects
of all sizes and levels of complexity, but
the research case studies found that
airports tend to select DBB on smaller
projects.
As projects grow in size and complexity,
the amount of owner staffing required to
oversee DBB can become very large.
Construction Manager at Risk (CMR)
Issue Statements Advantage Disadvantage
CMR has been shown to work on
projects of all sizes and levels of
complexity, but the research case studies
found that airports tend to select CMR on
larger and more complex projects.
On projects of large size and complexity,
CMR can use multiple bid packages to
optimize responses from proposers, but
this approach results in more complexity
in management.
Design-Build (DB)
Please specify procurement system: (____________________________________)
Issue Statements Advantage Disadvantage
DB has been shown to work on projects
of all sizes and levels of complexity, but
the research case studies found that
airports tend to select DB on larger and
more complex projects.
Some owners have noted that DB can
facilitate better management of large
projects due to the single source of
responsibility.
As projects grow in size and complexity,
there can be large peaks in owner
staffing requirements with DB (e.g.,
during RFP development, during design
review, etc.).
As projects grow in size and complexity,
best-value procurement will require
design-builders to assume more risk, and
QBS procurement will make it more
challenging to negotiate prices.
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50 A Guidebook for Selecting Airport Capital Project Delivery Methods
Table 4-4. Project size/complexity advantages/
disadvantages summary.
Issue DBB CMR DB
1. Project Size/Complexity
Key: Most appropriate delivery method
Appropriate delivery method
Least appropriate delivery method
X Not applicable (discontinue evaluation of this method)
Comments ____________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
Issue 2: Schedule Compression
From the owner's viewpoint, a delivery method can affect project schedule in two different
ways: (1) shortening the schedule and (2) controlling schedule growth.
Advantages/Disadvantages Form--Schedule Compression
Design-Bid-Build (DBB)
Issue Statements Advantage Disadvantage
DBB is the base case and will take the
longest of the three delivery methods.
If an airport is willing to take on
coordination responsibility, DBB projects
can be awarded to multiple prime
contractors to speed the process.
Studies have shown that, on average,
DBB is slower than CMR and DB.
Construction Manager at Risk (CMR)
Issue Statements Advantage Disadvantage
CMR can be used to facilitate fast-
tracking or the ability to bid multiple
design packages.
There is a risk that overlapping design
and construction packages may create
delays if not properly coordinated.
Fast-tracking schedules require owner
effort in design and construction reviews
and do not guarantee time savings.
Studies have shown that, on average,
CMR is faster than DBB, but slower than
DB.
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Tier 1--Analytical Delivery Decision Approach 51
Design-Build (DB)
Please specify procurement system: (____________________________________)
Issue Statements Advantage Disadvantage
Provides a single point of responsibility
(DB contractor) for schedule
compression.
All case studies showed that airports
selected DB with the primary goal of
compressing the schedule.
A compressed schedule will require
airport effort in design and construction
reviews.
Studies have shown that, on average,
DB is faster than both CMR and DBB.
DB procurement methods do not
significantly affect schedule
compression.
Table 4-5. Schedule compression advantages/
disadvantages summary.
Issue DBB CMR DB
2. Schedule Compression
Key: Most appropriate delivery method
Appropriate delivery method
Least appropriate delivery method
X Not applicable (discontinue evaluation of this method)
Comments ____________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
Issue 3: Schedule Growth Control
This issue concerns the ability of each delivery method to control and prevent growth in a
project's schedule.
Advantages/Disadvantages Form--Schedule Growth Control
Design-Bid-Build (DBB)
Issue Statements Advantage Disadvantage
Research on project delivery methods
suggests that DBB is likely to yield the
highest schedule growth due to change
orders
There is a lack of opportunity to
compress a project schedule if problems
occur due to the linear nature of DBB.
Studies have shown that, on average,
DBB has more schedule growth than
CMR and DB.
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52 A Guidebook for Selecting Airport Capital Project Delivery Methods
Construction Manager at Risk (CMR)
Issue Statements Advantage Disadvantage
CMR facilitates fast-tracking, or the
ability to bid multiple design packages,
which can be helpful in limiting schedule
growth if problems occur during project
development.
There are risks that overlapping design
and construction packages may create
schedule growth if not properly
coordinated.
Studies have shown that, on average,
CMR has less schedule growth than
DBB, but more than DB.
Design-Build (DB)
Please specify procurement system: (____________________________________)
Issue Statements Advantage Disadvantage
Provides a single point of responsibility
(DB contractor) to combat schedule
growth.
DB projects using a lump sum contract
typically fix project end dates early in the
project development process when
compared to DBB or CMR.
Unlike DBB and CMR, owners will be
shielded from schedule-related change
orders stemming from errors and
omissions in plans.
A compressed schedule will require
airport effort in design and construction
reviews.
Studies have shown that, on average,
DB has less schedule growth than both
CMR and DBB.
DB procurement methods do not
significantly affect schedule growth
control.
Table 4-6. Schedule growth control advantages/
disadvantages summary.
Issue DBB CMR DB
3. Schedule Growth Control
Key: Most appropriate delivery method
Appropriate delivery method
Least appropriate delivery method
X Not applicable (discontinue evaluation of this method)
Comments ____________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
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Issue 4: Early Cost Precision
Early and precise project cost estimation is always sought by airports. This issue concerns the
effect of each delivery method on accurately predicting a cost estimate.
Advantages/Disadvantages Form--Early Cost Precision
Design-Bid-Build (DBB)
Issue Statements Advantage Disadvantage
Construction costs are not fixed (or
locked in) until design is 100% complete,
but costs are known at bid time, before
construction begins.
Constructability advice and contractor
innovations are not available to save cost
until post bid.
The DBB process is prone to change
orders and cost growth after award.
Construction Manager at Risk (CMR)
Issue Statements Advantage Disadvantage
CMR can be used in conjunction with a
GMP pricing structure, which can be
useful in negotiating and controlling
costs.
Costs will be known earlier than with
DBB, but perhaps not as early as with
DB.
CMRs generally have experienced
estimating and construction staff that can
help to develop reliable estimates earlier
in the process.
If a GMP pricing structure is used,
owners should have experience in
estimating and negotiating prices.
If the airport/funding agency requires that
the subcontractors be selected through
low-bid procurement, the construction
manager may be unwilling to agree to
GMP before all subcontractors' bids have
been received.
Design-Build (DB)
Please specify procurement system: (____________________________________)
Issue Statements Advantage Disadvantage
Costs will be known earlier in the project
delivery process when compared to DBB
or CMR.
If a lump sum pricing structure is used,
costs will be fixed early in the project
development process, but constructors
must develop prices before plans are
100% complete and therefore must
assume some risk in pricing.
If a GMP pricing structure is used,
owners should have experience in
estimating and negotiating prices.
If the airport/funding agency requires that
the subcontractors be selected through
low-bid procurement, the construction
manager may be unwilling to agree to
GMP before all subcontractors' bids have
been received.
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54 A Guidebook for Selecting Airport Capital Project Delivery Methods
Table 4-7. Early cost precision advantages/
disadvantages summary.
Issue DBB CMR DB
4. Early Cost Precision
Key: Most appropriate delivery method
Appropriate delivery method
Least appropriate delivery method
X Not applicable (discontinue evaluation of this method)
Comments ____________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
Issue 5: Cost Control
Cost control is a project performance criterion and can drive owners to select a particular
delivery method according to its ability to (1) reduce total project costs and (2) minimize proj-
ect cost overruns.
Advantages/Disadvantages Form--Cost Control
Design-Bid-Build (DBB)
Issue Statements Advantage Disadvantage
With the exception of change orders,
costs are known at bid time, before
construction begins.
Research suggests that, on average,
DBB is likely to yield the highest cost
growth due to change orders.
Construction Manager at Risk (CMR)
Issue Statements Advantage Disadvantage
CMR can be used in conjunction with a
GMP pricing structure, which can be
useful in negotiating and controlling
costs.
If open book pricing can be used, all
costs will be known by the owner.
If multiple bid packages are used, the
overall project cost could grow if later bid
packages cost more than estimated.
Early constructor involvement or
construction advice can lead to cost
savings through value engineering and
constructability reviews.
If a GMP pricing structure is used,
owners should have experience in
estimating and negotiating prices.
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Tier 1--Analytical Delivery Decision Approach 55
Design-Build (DB)
Please specify procurement system: (____________________________________)
Issue Statements Advantage Disadvantage
Studies have shown that, on average,
DB has been shown to have lower
average cost growth than DBB or CMR.
Unlike DBB and CMR, owners will be
shielded from cost-related change orders
stemming from errors and omissions in
plans.
If open book pricing can be used, all
costs will be known by the owner.
The integrated nature of DB teams can
lead to cost savings through inherent
value engineering and constructability
reviews.
If a GMP pricing structure is used,
owners should have experience in
estimating and negotiating prices.
Table 4-8. Cost control advantages/disadvantages summary.
Issue DBB CMR DB
5. Cost Control
Key: Most appropriate delivery method
Appropriate delivery method
Least appropriate delivery method
X Not applicable (discontinue evaluation of this method)
Comments ____________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
Issue 6: Risk Management/Allocation
This issue concerns methods for coping with the uncertainties that are inherent in each proj-
ect delivery method. The overarching goal should be to select the project delivery method that
does the best job of allocating project risks to the parties in the best position to manage them.
Advantages/Disadvantages Form--Risk Management/Allocation
Design-Bid-Build (DBB)
Issue Statements Advantage Disadvantage
DBB provides historically well-defined
and well-understood risk allocation.
Prescriptive designs and specifications
allow for greater detail in risk allocation.
Constructor cannot participate in risk
management or risk allocation decisions
during design.
Conflicts can exist in risk allocation
between separate design and
construction contracts.
Constructor's ability to manage risk is
constrained by low-bid procurement.
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56 A Guidebook for Selecting Airport Capital Project Delivery Methods
Construction Manager at Risk (CMR)
Issue Statements Advantage Disadvantage
Construction manager understands and
participates in risk allocation and the
management process during design.
Prescriptive designs and specifications
allow for greater detail in risk allocation.
Risk management process can be more
complex due to separate design,
construction, and construction
management contracts.
Risks for costs can be shared by the
construction manager and the airport
through the use of a GMP structure.
Design-Build (DB)
Please specify procurement system: (____________________________________)
Issue Statements Advantage Disadvantage
Single point of responsibility for risk
management in design and construction.
Design-builder owns risk for design
errors and omissions.
Risks must be allocated through
conceptual design and performance
specifications, so the owner may lose
some ability to participate in the risk
management process.
Risks for costs can be shared by the
construction manager and the airport
through the use of a GMP structure.
Airport risks for scope creep and cost
growth can be transferred to the design-
builder through best-value, fixed-price
procurement.
Table 4-9. Risk management/allocation advantages/
disadvantages summary.
Issue DBB CMR DB
6. Risk Management/Allocation
Key: Most appropriate delivery method
Appropriate delivery method
Least appropriate delivery method
X Not applicable (discontinue evaluation of this method)
Comments ____________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
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Tier 1--Analytical Delivery Decision Approach 57
Issue 7: Lifecycle Costs
Delivery methods can influence costs in the operation and maintenance phase. This issue
focuses on the opportunities or barriers that each delivery method provides with regard to life-
cycle costs.
Advantages/Disadvantages Form--Lifecycle Costs
Design-Bid-Build (DBB)
Issue Statements Advantage Disadvantage
The airport can control lifecycle costs
through completed design and
performance specifications.
There is little opportunity for constructor
input into lifecycle costs.
Construction Manager at Risk (CMR)
Issue Statements Advantage Disadvantage
CMR has all the benefits of DBB, plus
the airport can leverage the construction
manager's input into lifecycle costs.
If CMR is employing a fast-track
schedule, lifecycle costs may be difficult
to address in detail.
If lifecycle performance criteria are not
well understood during the development
of the GMP, lifecycle issues may be
difficult to incorporate into the final
product.
Design-Build (DB)
Please specify procurement system: (____________________________________)
Issue Statements Advantage Disadvantage
The airport can use performance criteria
to set lifecycle performance standards
and rely on design-builder innovation to
achieve these standards.
If lifecycle issues are difficult to define
through performance criteria, a GMP
pricing structure could allow for more
owner input than a fixed-price option.
Table 4-10. Lifecycle costs advantages/disadvantages summary.
Issue DBB CMR DB
7. Lifecycle Costs
Key: Most appropriate delivery method
Appropriate delivery method
Least appropriate delivery method
X Not applicable (discontinue evaluation of this method)
Comments ____________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
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58 A Guidebook for Selecting Airport Capital Project Delivery Methods
Issue 8: Maintainability
As with lifecycle issues, there can be advantages and disadvantages to each delivery method
with regard to how maintainability is achieved. This issue concerns these advantages and dis-
advantages as they relate to the owner's ability to specify quality and ease of maintenance.
Advantages/Disadvantages Form--Maintainability
Design-Bid-Build (DBB)
Issue Statements Advantage Disadvantage
The opportunity to view completed plans
before award allows airports to review
maintenance issues in designs.
There is little opportunity for constructors
to have input into maintenance issues.
Construction Manager at Risk (CMR)
Issue Statements Advantage Disadvantage
CMR has all the benefits of DBB, plus
the airport can leverage the construction
manager's input into maintenance
issues.
If CMR is employing a fast-track
schedule, maintenance issues may be
difficult to address in detail.
If maintainability issues are not well
understood during the development of
the GMP, they may be difficult to
incorporate into the final product.
Design-Build (DB)
Please specify procurement system: (____________________________________)
Issue Statements Advantage Disadvantage
The airport can use performance criteria
to set maintainability performance
standards and rely on design-builder
innovation to achieve these standards.
The airport can emphasize
maintainability issues through
performance criteria and best-value
award factors.
If maintainability issues are not well
understood at the procurement stage,
they will not be incorporated into the DB
contract.
Some DB contracts can incorporate
maintenance warranties from the design-
builder.
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Tier 1--Analytical Delivery Decision Approach 61
Issue 10: Airport Control of Project
An airport's ability to control the details of design and construction varies with each project
delivery method. (Note that cost control and time control are described in other issues.)
Advantages/Disadvantages Form--Airport Control of Project
Design-Bid-Build (DBB)
Issue Statements Advantage Disadvantage
The use of prescriptive specifications and
complete designs at the time of award
provides airports with the most control
over the project.
Separate design and construction
contracts provide clear checks and
balances.
With additional control can come added
activities and responsibility for airport
staff.
Construction Manager at Risk (CMR)
Issue Statements Advantage Disadvantage
The CMR method benefits from early
constructor involvement and also has the
benefit of separate design and
construction contracts that give an owner
control over design details.
Airport control of CMR delivery requires
more effort due to the use of multiple
design packages and the need for a
GMP pricing structure.
Design-Build (DB)
Please specify procurement system: (____________________________________)
Issue Statements Advantage Disadvantage
The transfer of design liability lessens the
need for airport control over design.
Award at a conceptual design level may
mean that the airport will lose control
over the details of the final design
depending on the owner involvement
program.
Use of QBS and a GMP pricing structure
can give the airport more control if it is
willing to fix the GMP in the later stages
of design development.
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62 A Guidebook for Selecting Airport Capital Project Delivery Methods
Table 4-13. Airport control of project advantages/
disadvantages summary.
Issue DBB CMR DB
10. Airport Control of Project
Key: Most appropriate delivery method
Appropriate delivery method
Least appropriate delivery method
X Not applicable (discontinue evaluation of this method)
Comments ____________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
Issue 11: Security
Security imposes another level of technical complexity and a potentially high level of liability
on all airport projects. Airport security affects both the design phase and the construction phase.
This issue concerns the multiple effects of security requirements on airport projects and how
each project delivery method is impacted by and impacts security requirements.
Advantages/Disadvantages Form--Security
Design-Bid-Build (DBB)
Issue Statements Advantage Disadvantage
DBB offers the highest level of flexibility
to the owner during the design phase.
The low-bid award can make security-
related changes difficult to negotiate
during construction.
Construction Manager at Risk (CMR)
Issue Statements Advantage Disadvantage
The ability of the CMR to work with the
designer can allow for efficiency and
flexibility in addressing security issues.
The point at which the GMP is negotiated
can influence efficiency and flexibility.
Design-Build (DB)
Please specify procurement system: (____________________________________)
Issue Statements Advantage Disadvantage
The integration of designer and
constructor can allow for efficiency and
flexibility in addressing security issues.
In a fixed-price DB process, security-
related changes may be difficult to
negotiate during construction.
If a GMP is used, the point at which the
GMP is negotiated can influence
efficiency and flexibility.
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Tier 1--Analytical Delivery Decision Approach 63
Table 4-14. Security advantages/disadvantages summary.
Issue DBB CMR DB
11. Security
Key: Most appropriate delivery method
Appropriate delivery method
Least appropriate delivery method
X Not applicable (discontinue evaluation of this method)
Comments ____________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
Issue 12: Control of Impact on Passengers and Operations
This issue concerns the ability of each delivery method to allow the coordination of construc-
tion activities with airport operations management in order to minimize construction impacts.
Advantages/Disadvantages Form--Control of Impact on Passengers and Operations
Design-Bid-Build (DBB)
Issue Statements Advantage Disadvantage
The airport's control over the design and
construction packaging can help to
minimize impacts on operation and
passenger flow.
Post-award changes in the construction
schedule due to airport operations may
be difficult to negotiate.
Construction Manager at Risk (CMR)
Issue Statements Advantage Disadvantage
Additional CMR experience in design can
help minimize impacts on operation and
passenger flow.
Having one CMR contract to oversee
multiple bid packages may assist the
airport in appropriately phasing the
project to minimize impact.
The airport and the CMR must have a
clear understanding of roles and
responsibilities with regard to these
controls.
Design-Build (DB)
Please specify procurement system: (____________________________________)
Issue Statements Advantage Disadvantage
DB provides a single source of
responsibility for controlling the impact of
the project on airport operations that can
be tied to performance criteria in both the
project's design and construction
schedules.
The airport will have less control over the
constructor than in the other methods.
If a GMP is used, the point at which the
GMP is negotiated can influence the
airport's input into operations.
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64 A Guidebook for Selecting Airport Capital Project Delivery Methods
Table 4-15. Control of impact on passengers and operations
advantages/disadvantages summary.
Issue DBB CMR DB
12. Control of Impact on Passengers
and Operations.
Key: Most appropriate delivery method
Appropriate delivery method
Least appropriate delivery method
X Not applicable (discontinue evaluation of this method)
Comments ____________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
Issue 13: Third-Party Stakeholder Input to Design and Construction
This issue concerns each project delivery method's ability to promote coordination and project-
specific agreements with third parties involved in the project or affected by it--political entities,
utilities, adjacent communities, and so forth. This issue also concerns the opportunities afforded
by the delivery method to the owner for coping with community input.
Advantages/Disadvantages Form--Third-Party Stakeholder
Input to Design and Construction
Design-Bid-Build (DBB)
Issue Statements Advantage Disadvantage
Separate design and construction
phases provide an opportunity to get
stakeholders' inputs before the
commencement of construction.
The use of complete plans and
prescriptive specifications facilitates
third-party agreements.
The opportunity for stakeholder changes
in design can cause delay in the project
and add to the costs in the form of
change orders.
Expediting third-party agreements in the
DBB process can be cumbersome if it is
required.
Construction Manager at Risk (CMR)
Issue Statements Advantage Disadvantage
The construction experience of the
construction manager can help facilitate
stakeholder input.
Construction managers can help facilitate
third-party agreements.
Stakeholder input can make GMP
negotiation troublesome if not managed
correctly.
Construction managers typically do not
guarantee costs that stem from problems
with third-party agreements.
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Tier 1--Analytical Delivery Decision Approach 65
Design-Build (DB)
Please specify procurement system: (____________________________________)
Issue Statements Advantage Disadvantage
The owner can require the DB contractor
to include a public information and
outreach program to facilitate
communities' inputs.
Design-builders can be innovative in
helping gain community involvement.
Any third-party change after the award of
a fixed price or the negotiation of a GMP
can be costly or difficult to negotiate.
Design-builders can use innovative
methods to assist in obtaining third-party
agreements.
Table 4-16. Third-party stakeholder input to design and
construction advantages/disadvantages summary.
Issue DBB CMR DB
13. Third-Party Stakeholder Input to
Design and Construction
Key: Most appropriate delivery method
Appropriate delivery method
Least appropriate delivery method
X Not Applicable (discontinue evaluation of this method)
Comments ____________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
Public Policy/Regulatory Issues
Issue 14: Competition and Local Talent
This issue concerns how each project delivery method affects the level of competition among
potential bidders, especially whether or not a project delivery method leverages local competition.
Advantages/Disadvantages Form--Competition and Local Talent
Design-Bid-Build (DBB)
Issue Statements Advantage Disadvantage
The airport benefits from a large pool of
potential bidders and high level of
competition.
There may be issues that follow low-bid
procurement such as a higher probability
of request for change orders, disputes,
and claims.
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66 A Guidebook for Selecting Airport Capital Project Delivery Methods
Construction Manager at Risk (CMR)
Issue Statements Advantage Disadvantage
QBS factors can be applied to select only
the most highly qualified construction
managers.
The presence of a constructor early in
the project may give the owner less
competitive leverage when pricing
construction.
Design-Build (DB)
Please specify procurement system: (____________________________________)
Issue Statements Advantage Disadvantage
QBS factors can be applied to select only
the most qualified design-builders.
Proposal package size and bid
preparation costs can decrease the
number of qualified bidders.
Opposition from public-sector
employees, unions, or other interested
parties can exclude the DB method from
consideration (see Step 3. Review
Go/No-Go Decision Points).
Table 4-17. Competition and local talent advantages/
disadvantages summary.
Issue DBB CMR DB
14. Competition and Local Talent
Key: Most appropriate delivery method
Appropriate delivery method
Least appropriate delivery method
X Not applicable (discontinue evaluation of this method)
Comments ____________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
Issue 15: DBE/Small Business Impacts
Delivery methods may facilitate fair competition for DBEs for airport contracts and reduce
burdens on small businesses. The effect of each delivery method on promoting participation by
DBEs and small businesses is evaluated under this issue.
Advantages/Disadvantages Form--DBE/Small Business Impacts
Design-Bid-Build (DBB)
Issue Statements Advantage Disadvantage
Airports can include DBE requirements in
both design and construction
requirements.
DBE involvement is known at the time of
award for design and construction.
The low-bidding environment may harm
the future viability of DBE companies.
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Tier 1--Analytical Delivery Decision Approach 67
Construction Manager at Risk (CMR)
Issue Statements Advantage Disadvantage
Airports can include DBE requirements in
both design and construction
requirements.
DBE involvement is known at the time of
award for design and construction.
Due to the phased nature of CMR
contracts, final DBE involvement may not
be known until the project is ultimately
completed.
Design-Build (DB)
Please specify procurement system: (____________________________________)
Issue Statements Advantage Disadvantage
Airports can include DBE requirements in
the procurement selection factors for
design and construction requirements.
Owners can set DBE requirements, but
because all subcontractors are not
known at the time of award, there is a
risk that design-builders may not achieve
the DBE goals they specify in their
proposals.
The use of a fixed-price procurement
process early in the project development
process, as well as the use of a GMP
negotiation later in the process, will not
facilitate the identification of a DBE.
Table 4-18. DBE/small business impacts advantages/
disadvantages summary.
Issue DBB CMR DB
15. DBE/Small Business Impacts
Key: Most appropriate delivery method
Appropriate delivery method
Least appropriate delivery method
X Not applicable (discontinue evaluation of this method)
Comments ____________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
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68 A Guidebook for Selecting Airport Capital Project Delivery Methods
Issue 16: Legal and Statutory Constraints
This issue concerns the interactions between each delivery method and governing regulations.
Due to constant changes in state and local laws, airports should check all the relevant codes in
order to determine the legality of each delivery method at the time when possible delivery meth-
ods are studied for a project.
Advantages/Disadvantages Form--Legal and Statutory Constraints
Design-Bid-Build (DBB)
Issue Statements Advantage Disadvantage
All states are authorized to use DBB.
Labor agreements are generally not an
issue.
Open bidding procedures are typically
not constrained by public law.
Construction Manager at Risk (CMR)
Issue Statements Advantage Disadvantage
Some states allow more flexible
procurement regulations with CMR,
which can be advantageous in
appropriate situations to expedite project
development.
Some state airports are not authorized to
use CMR or need to get extra approvals
(see Step 3. Review Go/No-Go Decision
Points).
Design-Build (DB)
Please specify procurement system: (____________________________________)
Issue Statements Advantage Disadvantage
Some states allow more flexible
procurement regulations with DB, which
can be advantageous in appropriate
situations to expedite project
development.
Some state airports are not authorized to
use DB or need to get extra approvals
(see Step 3. Review Go/No-Go Decision
Points).
Table 4-19. Legal and statutory constraints advantages/
disadvantages summary.
Issue DBB CMR DB
16. Legal and Statutory Constraints
Key: Most appropriate delivery method
Appropriate delivery method
Least appropriate delivery method
X Not applicable (discontinue evaluation of this method)
Comments ____________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
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Tier 1--Analytical Delivery Decision Approach 69
Issue 17: Sustainability and LEED Certification
Sustainable design is becoming ever more important in achieving overall sustainability goals
for projects. This issue concerns project delivery method effects on achieving sustainable design
goals (and, if the owner desires, LEED certification).
Advantages/Disadvantages Form--Sustainability and LEED Certification
Design-Bid-Build (DBB)
Issue Statements Advantage Disadvantage
Airports can work with designers to
incorporate sustainable designs into
complete designs through prescriptive
specifications.
Airports can assume liability when
prescribing construction methods.
The process provides little opportunity for
constructability reviews to ensure that
sustainable designs can be constructed
efficiently and are not cost prohibitive.
There is little opportunity or incentive for
the constructor to do more than what is
specified in terms of sustainable
construction practices.
Construction Manager at Risk (CMR)
Issue Statements Advantage Disadvantage
CMR has all the benefits of DBB, plus
the airport can leverage the construction
manager's input into sustainable design
issues.
The use of separate bid packages can
create barriers in the integration of
sustainable solutions if not approached
correctly.
Design-Build (DB)
Please specify procurement system: (____________________________________)
Issue Statements Advantage Disadvantage
The airport can emphasize sustainable
design issues through performance
criteria and best-value or QBS award
factors.
Integration of the design and construction
team can enhance the constructability of
designs.
If sustainable design issues are not well
understood at the procurement stage,
they will not be incorporated into the DB
contract.
The airport may not be involved in all
design decisions.
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70 A Guidebook for Selecting Airport Capital Project Delivery Methods
Table 4-20. Sustainability and LEED certification advantages/
disadvantages summary.
Issue DBB CMR DB
17. Sustainability and LEED
Certification
Key: Most appropriate delivery method
Appropriate delivery method
Least appropriate delivery method
X Not applicable (discontinue evaluation of this method)
Comments ____________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
Other Issues
Issue 18: Adversarial Relationships
The extent to which a delivery method can minimize adversarial relationships on a project team
varies depending on the nature of the project and the owner's experience with the delivery method.
Advantages/Disadvantages Form--Adversarial Relationships
Design-Bid-Build (DBB)
Issue Statements Advantage Disadvantage
Roles and responsibilities in a DBB
contract are well understood in the
industry.
DBB can create an adversarial
relationship between parties, primarily
between the owner and the construction
contractor.
Construction Manager at Risk (CMR)
Issue Statements Advantage Disadvantage
Inclusion of the construction manager in
the design process can align team
members and lessen adversarial
relationships.
Negotiation of GMP can create an
adversarial situation if the process is not
well understood and well managed.
Design-Build (DB)
Please specify procurement system: (____________________________________)
Issue Statements Advantage Disadvantage
Inclusion of the designer and constructor
on the same team can lessen adversarial
relationships.
Due to the loss of control over the details
of design, DB requires a high level of
trust between the owner and design-
builder. Without this trust, DB can
become adversarial.
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Tier 1--Analytical Delivery Decision Approach 71
Table 4-21. Adversarial relationships advantages/
disadvantages summary.
Issue DBB CMR DB
18. Adversarial Relationships
Key: Most appropriate delivery method
Appropriate delivery method
Least appropriate delivery method
X Not applicable (discontinue evaluation of this method)
Comments ____________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
____________________________________________________________
Issue 19: Construction Claims
The effect of each delivery method on airport exposure to potential conflicts and claims is
addressed under this issue.
Advantages/Disadvantages Form--Construction Claims
Design-Bid-Build (DBB)
Issue Statements Advantage Disadvantage
DBB has well-understood legal
precedents for construction claims.
DBB historically has the highest
occurrence of 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)
Issue Statements Advantage Disadvantage
Having the constructor on the team early
during design can lessen the likelihood of
disputes and claims regarding design.
Since design and construction contracts
are separate, the potential for disputes
and claims regarding design still exist.
If multiple bid packages are not managed
correctly, the coordination of these bid
packages can result in claims.
