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A Guidebook for Selecting Airport Capital Project Delivery Methods (2009)

Chapter: Chapter 4 - Tier 1 Analytical Delivery Decision Approach

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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
×
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
×
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
×
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
×
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
×
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
×
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
×
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
×
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
×
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Suggested Citation:"Chapter 4 - Tier 1 Analytical Delivery Decision Approach." National Academies of Sciences, Engineering, and Medicine. 2009. A Guidebook for Selecting Airport Capital Project Delivery Methods. Washington, DC: The National Academies Press. doi: 10.17226/14312.
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40 Introduction No single project delivery method is appropriate for every project. Each project must be exam- ined individually to determine how it aligns with the attributes of each available delivery method. The Tier 1—Analytical Delivery Decision Approach (Tier 1 approach) provides airports with a structured approach to choosing the most appropriate project delivery method for an individ- ual project. The Tier 1 approach has three primary objectives: • Present a structured framework to assist airports in examining 19 pertinent issues involved in the project delivery decision, • Assist airports in determining whether there is a dominant or obvious choice of project deliv- ery method, and • Provide a structure for documenting the project delivery decision in the form of a Project Delivery Decision Report. The Tier 1 approach provides a framework for airports to use in defining project goals and examining the advantages and disadvantages of each delivery method within the context of these goals. The aim of this approach is to help airports understand project delivery method attributes and determine whether their specific project goals align with the attributes of a particular deliv- ery method. The Tier 1 approach also provides a go/no go review to determine whether one or more project delivery methods should be excluded from the examination. At the completion of the Tier 1 approach, there is a possibility that an airport may not have one clear and logical choice for a project delivery method. If this is the case, the airport is advised to move on to the Tier 2 approach with the best delivery method options yielded from the appli- cation of the Tier 1 approach and create a more detailed analysis to select the final project deliv- ery method. The Tier 1 approach includes six distinct steps listed below and shown in Figure 4-1: Step 1. Create Project Description Step 2. Define Project Goals Step 3. Review Go/No-Go Decision Points Step 4. Review Project Delivery Method Advantages and Disadvantages Step 5. Choose Most Appropriate Project Delivery Method Step 6. Document Results The objective of Step 1 is to create a project description in sufficient detail for documenting the project delivery decision. A template is provided to assist airports in describing the appropri- ate level of detail (please see Appendix C, available on the TRB website. Go to www.trb.org and search for “ACRP Report 21”). The description is provided to summarize only the key variables C H A P T E R 4 Tier 1—Analytical Delivery Decision Approach

PR OJ EC T DE LI VE RY ME TH OD AD VA NT AG E/ DI SA DV AN TA GE SU MM AR Y Step 5. Choose Most Appropriate Project Delivery Method Step 4. Review Project Delivery Method Advantages/Disadvantages Advantages and Disadvantages Deliver y Methods Considered Step 6. Document Results Project Goals Project Description PROJECT DELIVERY DECISION REPORT DB B Ad v 1 Ad v 2 …. Disadv 1 Disadv 2 …. Adv antag e CM R DB Disadvantag e Ad v 1 Ad v 2 …. Disadv 1 Disadv 2 …. Adv antage Disadvantag e Ad v 1 Ad v 2 …. Disadv 1 Disadv 2 …. Adv antage Disadvantag e Step1. Create Project Description Name: _______________ Si ze : _______________ Locati on: _______________ Ty pe: _______________ … : _______________ … : _______________ … Step 2. Define Project Goals Ti me: _______________ Cost: _______________ Qualit y: _______________ … : _______________ … : _______________ … Step 3. Review Go/No-Go Decision Points Go/No-Go Critical Issues DBB CMR DB Project-Level Issues Rating 1. Project Size/Complexity 2. Schedule Compression 3. Schedule Growth Control 4. Early Cost Precision 5. Cost Control 6. Risk Management/Allocation 7. Lifecycle Costs 8. Maintainability Airport-Level Issues Rating 9. Airport Experience/Staff Capability 10. Airport Control of Project 11. Security 12. Control of Impact on Passengers and Operations 13. Third-Party Stakeholder Input to Design and Construction Public Policy /Regulatory Issues Rating 14. Competition and Local Talent 15. DBE/Small Business Impacts 16. Legal and Statutory Constraints 17. Sustainability and LEED Certification Other Issues Rating 18. Adversarial Relationships 19. Construction Claims Other Key: Most appropriate delivery method Appropriate delivery method Least appropriate delivery method X Not Applicable (discontinue evaluation of this method) Figure 4-1. Overview of Tier 1 approach.

and provide a “snapshot” of the project scope at the time when the project delivery decision was made. Research and practical experience have shown that the definition of project goals is a key suc- cess factor in the project delivery decision. The objective of Step 2 is to provide guidance to airports on how to write and rank their project goals. The guidance provides general categories for goals. The objective of Step 3 is to exclude those project delivery methods from consideration that are not viable options. A legal review of project delivery and procurement laws in the United States revealed that some alternative delivery methods are not allowed in all states. There are additional schedule and third-party issues that could exclude a delivery method from consideration. Step 3 describes a quick go/no-go decision process to determine whether a delivery method should be excluded from consideration. Step 4’s primary objective is to present a comprehensive listing of generic potential advantages and disadvantages of each delivery method in relation to 19 pertinent issues. These potential advan- tages and disadvantages must be examined in the context of each individual project. Variations in the project characteristics, the people involved, and the processes used by an airport will determine whether the potential advantages or disadvantages are actual advantages or disadvantages for a par- ticular project. In Step 4, airports are asked to consider actual advantages and disadvantages and rate each project delivery method as one of the following: “most appropriate,” “appropriate,” “least appropriate,” or “not applicable” for each of the 19 issues. A form for this rating and a structure for documenting comments are provided. The objective of Step 5 is to make the final project delivery choice, if a dominant or obvious choice exists. Upon transferring the 19 individual ratings from Step 4 into an overall summary table, airports are asked to determine whether there is a dominant choice. Step 5 asks the airports to consider the significant benefits of what appears to be the most appropriate delivery method as well as any risks or fatal flaws of that delivery method. If a dominant method is not apparent, the user will document the results of the Tier 1 approach and move on to the Tier 2 approach for fur- ther analysis of the most applicable methods emerging from the Tier 1 analysis. The objective of the final step, Step 6, is to clearly document the Tier 1 decision in the form of a Project Delivery Decision Report. The report will provide an archival record for the project delivery decision. It will serve to communicate the decision to interested stakeholders and to jus- tify the decision if issues arise, even years later. The report is organized into sections that follow the five previous steps in the Tier 1 approach—project description, definition of project goals, go/no-go decision points, advantages and disadvantages, delivery method decision, and any rel- evant appendices. Application of the Project Delivery Selection System While the project delivery selection system outlined in this guidebook provides a structured approach, selecting a project delivery system is a complex task. The time it takes to make a sound and justifiable decision should not be underestimated. On simple projects with knowledgeable personnel, the process may take only a few hours. However, on more complex projects, a proj- ect team would be more likely to take multiple days to complete and document the decision. The research team would like to offer a few tips for using the system to help ensure success: • Apply the system in a group setting. Conducting a project delivery decision with this guide- book is intended to be an interactive process. Although a single person could answer all of the questions, it is advisable to adopt a team approach due to the wide range of critical issues that need to be analyzed and stakeholders who will be impacted by the decision. The team 42 A Guidebook for Selecting Airport Capital Project Delivery Methods

approach, in addition to being required to obtain accurate answers, will also facilitate a mean- ingful dialogue and common understanding of the reasoning behind the project delivery deci- sion. In some cases, it may be helpful to have the delivery decision facilitated by a consultant who is familiar with the airport and the local design and construction market. • Select a diverse decision team. The pertinent issues requiring analysis include funding con- straints, schedule constraints, federal/state/local laws, third-party agreements, project-level issues, airport-level issues, and public policy/regulatory issues. A diverse group of individuals should be assembled to address all of these separate items. Decision team members will vary with each project and the airport’s available staff, but typical functions that should be repre- sented include upper management, legal staff, planners, engineers, construction administra- tors, maintenance staff, and possibly any impacted external stakeholder representatives. • Prepare for the meeting. It is suggested that the entire decision team review the project deliv- ery selection system format prior to meeting as a group. At a minimum, each member should read the pertinent issues prior to the meeting. Include an agenda for the meeting and use the forms provided in Appendix C for documenting the meeting. Step 1: Create Project Descrip- tion can be completed prior to the meeting. Step 2: Define Project Goals can be created prior to the meeting as well, but it is advisable to come to a common understanding of the goals in the group setting. • Plan for review of the Project Delivery Decision Report. Applying the project delivery system described in this guidebook will result in a Project Delivery Decision Report. It is advisable to plan time for all participants in the decision process to review and comment on this report once it is complete. Step 1. Create Project Description The first step in the Tier 1 approach involves the creation of a concise project description that serves to communicate the important project characteristics to the decision-makers and also to document the project scope for the Project Delivery Decision Report. Projects differ in scope of work and major elements (e.g., people involved, physical project characteristics, project dura- tion, project budget, and so forth). These distinguishing parameters affect project delivery method selection. Airports should choose the most appropriate delivery method on the basis of the project requirements and the opportunities that each delivery method can provide for them. Please see Appendix C for a typical template for project description and goals. The objective of creating a project description is to explain the project in sufficient detail to doc- ument the project delivery decision. The project description should be concise and also compre- hensive. It should include necessary information about the project and address all aspects of the project that may influence project delivery method selection. The intent of the project descrip- tion is to provide a “snapshot” of the project scope at the time in which the project delivery deci- sion was made. The project description will serve to communicate the decision to interested stakeholders and to justify the decision if issues arise years later. Below is a checklist of the impor- tant project characteristics that should be covered in the project description: • Project Name • Location • Major Features of Work – Runway – Apron – Terminal – Other • Estimated Project Budget • Estimated Project Delivery Period Tier 1—Analytical Delivery Decision Approach 43

• Required Delivery Date (if applicable) • Source(s) of Project Funding • Project Site Dimensions or Project Limits • Security Issues or Concerns • Rate of Return on Capital Investment/Payback Period (if applicable) • Major Schedule Milestones • Major Project Stakeholders • Labor Union Status • Major Challenges (as applicable) – With Permitting and/or Environmental Approvals – During Construction Phase – During Operation and Maintenance • Main Identified Sources of Risk • Sustainable Design and Construction Requirements Step 2. Define Project Goals Defining and communicating a concise set of project goals is perhaps the most important element in selecting an appropriate project delivery method. The importance of project goals in delivery method selection cannot be overemphasized. The definition of project goals is a key success factor not only in the project delivery decision, but also in the development of pro- curement documents and the administration of a project. The project will have technical goals that must be met (e.g., anticipated passenger/cargo throughput, design standards, safety stan- dards, and so forth) and will also have performance goals that must be met regarding time, cost, quality, maintainability, and sustainability. Performance goals typically drive the project delivery decision. At project inception, the airport must identify the various performance factors of the project to meet its requirements. Generally, these performance factors will fall into the categories of cost, schedule, and quality as defined by the technical design. Of these three factors, a project will nor- mally have one that is the most important for the project’s ultimate success—the preeminent fac- tor. In order to achieve goals related to this factor, an airport would be willing to sacrifice pieces of the other two factors. A clear and concise definition of project goals not only assists with selecting an appropriate project delivery method, it also provides a clear measure for project success and clear directions for the construction manager or design-builder in completing the project. Project goals set the stage for decision-makers throughout the project lifecycle and keep project priorities before decision-makers as they analyze different alternatives. Project goals influence choice of procure- ment method, risk-allocation strategies, contracting, monitoring progress, and, at the end of the project, evaluating project performance. To define project goals, thinking in terms of performance categories can be helpful. Time, cost, quality, and suitability are common categories. Table 4-1 provides some generic goals in these categories. Choosing the goals that apply to a specific project is a first critical step in an airport’s selection of a delivery method. The second, and equally important step, is the ranking of the goals. On every project, there are tradeoffs among schedule, cost, and quality. It is to the project’s benefit if the air- port, designers, and constructors are aware of, understand, and are in agreement with these proj- ect goals. For example, if a goal to accelerate the start of project revenue is ranked first and a goal of completing the project on budget is ranked third, the ranking of these goals provides the team 44 A Guidebook for Selecting Airport Capital Project Delivery Methods

with a clear direction: an increase in budget may be acceptable if it can accelerate the start of proj- ect revenue. As previously stated, understanding and communicating a concise set of project goals is per- haps the most important element in selecting an appropriate project delivery method. Airports should take the time to identify project goals and achieve consensus on their relative impor- tance. This time will be well spent as it will make the project delivery decision clearer. Defining and ranking project goals will also help to define and communicate the criteria for determin- ing overall project success, thereby informing designers and constructors of the airport’s proj- ect performance measures. Please see Appendix C for a typical template for project description and goals. Step 3. Review Go/No-Go Decision Points Among the pertinent issues that affect the project delivery decision, there are certain issues that render one or more delivery methods inappropriate. These issues involve project sched- ule constraints; federal, state, and local laws; and third-party agreements. These issues and their relation to the three primary delivery methods are shown in Table 4-2. The airport needs to review these issues to determine whether they eliminate any of the delivery methods. In other words, the airport should make a go/no-go decision based on these pertinent issues. The result of this go/no-go study is a listing of delivery methods available to the airport and a documentation of those that are not available for further consideration. The flowchart in Figure 4-2 depicts a step-by-step approach to the decision; a description of the approach follows. As depicted in the flowchart in Figure 4-2, the airport should first conduct research into the pertinent issues of project schedule constraints; federal, state, and local laws; and third-party agreements. The airport should review any major milestones that could create schedule con- straints that would prohibit a traditional DBB delivery (e.g., an aggressive fixed end date, fund- ing availability windows, and so forth). Next, federal, state, and local laws can be researched by the airport’s general counsel to identify any constraints that must be met during the project Tier 1—Analytical Delivery Decision Approach 45 Table 4-1. Examples of generic project goals. Schedule Minimize project delivery time Complete the project on schedule Accelerate start of project revenue Cost Minimize project cost Maximize project budget Complete the project on budget Quality Meet or exceed project requirements Select the best team Sustainability Minimize impact on the environment Achieve LEED Certification Table 4-2. Go/no-go issue summary. Issues DBB CMR DB Project Schedule Constraints / X Federal/State/Local Laws / X / X Third-Party Agreements / X Others / X / X / X / X = Go/no-go decision point. Shaded areas do not need to be considered by the user.

delivery method selection process. For example, a jurisdiction with a law that requires award of construction contracts to the low bidder may have to adopt the low-bid DB award method in order to use DB project delivery (this constraint may rule out the use of DB in such circum- stances). The airport then needs to determine the third-party agreements that will be required (e.g., local municipalities, utilities, permitting, and so forth). The airport’s next step is to analyze the documents and information in relation to the con- straints of each delivery method. As depicted in Table 4-2, each of the issues may exclude one or two of the delivery methods from further consideration. For example, if an airport project is located in a state where the law does not authorize CMR and the project is using state funding, this airport can eliminate CMR from the list of available options. Details follow for each of the go/no-go issues. Project Schedule Constraints The traditional DBB delivery method is a linear process that requires the longest delivery period of all three methods. If a DBB project delivery will not yield a finish date within the project’s constraints, DBB need not be considered further. As mentioned in the previous sec- tion on project goals, project schedule can be a preeminent factor in project success. Airports frequently give schedule first priority among competing project goals. Airports most fre- 46 A Guidebook for Selecting Airport Capital Project Delivery Methods Figure 4-2. Go/no-go decision points. 3) Are any PDMs eliminated? 4) Document the reasons for excluding the PDM(s). Yes No 1) Collect pertinent information : - Relevant fed/state/local laws, and - Schedule constraints, - Potential third-party issues. 5) Continue with Step 4. Review PDM Adv/Disadv . 2) Review project delivery methods (PDMs) regarding law, schedule constraints, and third-party issues.

quently cite shortening of project duration as the reason for using alternative project deliv- ery methods. An example of another kind of schedule constraint would be an airport that would like to award construction before the design is complete. The DBB method will not accommodate this con- straint. This kind of schedule constraint may occur when an airport has a fiscal year budget for con- struction and needs to award the project before the design is finished or when the airport has an opportunity to complete a portion of the project during an early work window before the design is complete (e.g., beginning construction before the end of the construction season). Federal/State/Local Laws When a project is funded with federal, state, or local money, it will need to follow the applicable procurement and construction laws. While some states have fully authorized airports to use CMR and DB, there are still some states that prohibit the use of one or all alternative methods. In the spectrum between states that allow full use of alternative methods and those that prohibit them entirely, there are some states that allow alternative project delivery methods with certain condi- tions (e.g., requiring extra approvals, putting dollar value limits on the volume of DB or CMR con- tracts, or putting limits on the number of projects using an alternative delivery method each year). It should also be noted that these laws change frequently, and each airport is responsible for check- ing the relevant state and local laws. Third-Party Agreements All major airport projects affect third parties and require agreements to manage the impacts. Some third parties require a completed set of construction documents to execute an agreement. In this case, the requirement for a complete design renders DB inappropriate. For example, if the proj- ect’s physical boundaries are adjacent to a local municipality, a full set of drawings may be required by the municipality prior to signing an agreement or a memorandum of understanding (MOU). In such a project, depending on the circumstances and the rigidity of the third party, DB might be eliminated from the list of available options. Upon reviewing these three go/no-go issues, airports 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 4-3 provides a form for summarizing this go/no-go analysis. Tier 1—Analytical Delivery Decision Approach 47 Table 4-3. Go/no-go summary form. Issues DBB CMR DB Project Schedule Constraints Federal/State/Local Laws Third-Party Agreements Other = Applicable for further study. X = Not applicable (discontinue evaluation of this method). Shaded areas do not need to be considered by the user. Comments __________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________

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) 48 A Guidebook for Selecting Airport Capital Project Delivery Methods

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 Tier 1—Analytical Delivery Decision Approach 49 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. Design-Bid-Build (DBB) Issue Statements Advantage Disadvantage

50 A Guidebook for Selecting Airport Capital Project Delivery Methods 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 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 ____________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ 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.

Tier 1—Analytical Delivery Decision Approach 51 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 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 ____________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ 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. 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.

52 A Guidebook for Selecting Airport Capital Project Delivery Methods Table 4-6. Schedule growth control advantages/ disadvantages summary. 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. 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 ____________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________

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 Issue Statements Advantage Disadvantag e 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. T he DBB process is prone to change orders and cost growth after award. Construction Manager at Risk (CMR) Issue Statements Advantage Disadvantag e 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-Bid-Build (DBB) 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.

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 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 ____________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ 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. Design-Bid-Build (DBB) Issue Statements Advantage Disadvantage

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 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. Design-Bid-Build (DBB) Issue Statements Advantage Disadvantage

56 A Guidebook for Selecting Airport Capital Project Delivery Methods Table 4-9. Risk management/allocation advantages/ disadvantages summary. 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. 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 ____________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________

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 Tier 1—Analytical Delivery Decision Approach 57 Table 4-10. Lifecycle costs advantages/disadvantages summary. 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. Design-Bid-Build (DBB) Issue Statements Advantage Disadvantage 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 ____________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________

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 58 A Guidebook for Selecting Airport Capital Project Delivery Methods 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.

Airport-Level Issues Issue 9: Airport Experience/Staff Capability This issue mainly concerns the airport’s experience, its staffing requirements, and its ability to properly administer alternative delivery methods. Advantages/Disadvantages Form—Airport Experience/Staff Capability Tier 1—Analytical Delivery Decision Approach 59 Table 4-11. Maintainability advantages/ disadvantages summary. Issue DBB CMR DB 8. Maintainability Key: Most appropriate delivery method Appropriate delivery method Least appropriate delivery method X Not applicable (discontinue evaluation of this method) Comments ____________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ Since this is the traditional method of project delivery, owners will likely have the most experience with this method. As projects grow in size, more experienced staff is required. Owners typically have different staff to oversee design and construction processes. DBB typically requires a larger owner staff than CMR or DBB. Construction Manager at Risk (CMR) Issue Statements Advantage Disadvantage CMR is similar to DBB in many key areas in which airports have experience (e.g., separation of design and construction). The CMR can augment an owner’s capabilities with his own staff. Airport experience is needed with GMP pricing or when negotiation is difficult. Airport experience is needed in the use of multiple bid packages to facilitate fast-track construction. The CMR alternative can use fewer owner staff than DBB if the CMR is allowed to take on the traditional owner tasks. Design-Bid-Build (DBB) Issue Statements Advantage Disadvantage

60 A Guidebook for Selecting Airport Capital Project Delivery Methods Design-Build (DB) Please specify procurement system: (____________________________________) Issue Statements Advantage Disadvantage Airports can take advantage of the sole point of responsibility for design and construction to leverage their experience. DB can reduce the overall number of required owner staff when compared to DBB or CMR. DB can create peaks in owner staffing needs, particularly during procurement and design review periods. While fewer owner staff is needed, more experienced staff is required. Airport experience is needed in the area of developing procurement documents and performance criteria. If a GMP is used, airport experience is needed with GMP pricing or when negotiation is difficult. Airport experience is needed in the area of administering DB contracts, particularly in the area of design review and administration. DB necessitates experienced staff to manage design and construction under one contract. Table 4-12. Airport experience/staff capability advantages/ disadvantages summary. Issue DBB CMR DB 9. Airport Experience/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: 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 Tier 1—Analytical Delivery Decision Approach 61 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.

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 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 ____________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ 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.

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 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 ____________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ 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.

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 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 ____________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ 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.

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 Tier 1—Analytical Delivery Decision Approach 65 Table 4-16. Third-party stakeholder input to design and construction advantages/disadvantages summary. 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. 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 ____________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ T he airport benefits from a large pool of potential bidders and high level of competition. T here may be issues that follow low-bid procurement such as a higher probability of request for change orders, disputes, and claims. Design-Bid-Build (DBB) Issue Statements Advantage Disadvantag e

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 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 ____________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ 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.

Tier 1—Analytical Delivery Decision Approach 67 Table 4-18. DBE/small business impacts advantages/ disadvantages summary. 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. 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 ____________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________

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 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). Design-Bid-Build (DBB) Issue Statements Advantage Disadvantage 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 ____________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________

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 Tier 1—Analytical Delivery Decision Approach 69 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.

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 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 ____________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ 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. Design-Bid-Build (DBB) Issue Statements Advantage Disadvantage

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 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 ____________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ 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.

Step 5. Choose the Most Appropriate Project Delivery Method Steps 1 through 4 of the selection process provide all the individual pieces of information to make a project delivery decision. The final step involves combining this information into a final comprehensive format that will aid in making the decision. Table 4-23 presents a form in which to summarize the advantages and disadvantages of each project delivery method with regard to each of the issues. Step 5 requires the following actions: • Review project goals. Review the project goals documented in Step 2 to be certain that any project delivery method selection is in alignment with these goals. • Transfer issue summary ratings. Transfer each of the 19 individual issue summary ratings (documented in the Issue Summary Table at the end of each issue analysis) to Table 4-23 to provide a complete picture of the analysis. • Review Table 4-23 to determine the dominant delivery method. Upon completion of Table 4-23, a delivery method may emerge as dominant. A dominant delivery method will contain a large number of “most appropriate” ratings in areas that align with the project goals. A dominant method will also have few or no “least appropriate” ratings. Counting or trans- lating the ratings should be avoided. If needed, review any comments from the pertinent issue analysis (see Chapter 3) to help with the delivery decision. Note: If a dominant method exists, make a project delivery choice and move to Step 6. 72 A Guidebook for Selecting Airport Capital Project Delivery Methods Table 4-22. Construction claims advantages/ disadvantages summary. Issue DBB CMR DB 19. Construction Claims Key: Most appropriate delivery method Appropriate delivery method Least appropriate delivery method X Not applicable (discontinue evaluation of this method) Comments ____________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ Design-Build (DB) Please specify procurement system: (____________________________________) Issue Statements Advantage Disadvantage The single source for design and construction eliminates claims for design errors or omissions from the airport’s perspective. There is a potential for claims with regard to scope definition if the form of the DB contract is not well understood. The size and frequency of change orders are smaller in DB.

• Review “least appropriate” ratings. Review any “least appropriate” ratings to determine whether any of the issues raised red flags or problems that would make a delivery method sig- nificantly less desirable. • Choose the delivery methods to Study in Tier 2. If a dominant method is not apparent, remove any inappropriate methods, document the decision as described in Step 6, and move to Tier 2 for a more detailed analysis. Step 6. Document Results The final step in the Tier 1 approach is to document the results in a Project Delivery Decision Report. Whether one delivery method emerges as the dominant choice or none of the three deliv- ery methods are eliminated from consideration in the process, documentation is a vital step. Documentation will assist in developing procurement and contracting strategies for the ultimate project delivery method. It will also serve to communicate the project delivery choice to inter- ested stakeholders. Tier 1—Analytical Delivery Decision Approach 73 Table 4-23. Project delivery method advantage/ disadvantage summary. DBB CMR DB Project-Level Issues Rating 1. Project Size/Complexity 2. Schedule Compression 3. Schedule Growth Control 4. Early Cost Precision 5. Cost Control 6. Risk Management/Allocation 7. Lifecycle Costs 8. Maintainability Airport-Level Issues Rating 9. Airport Experience/Staff Capability 10. Airport Control of Project 11. Security 12. Control of Impact on Passengers and Operations 13. Third-Party Stakeholder Input to Design and Construction Public Policy/Regulatory Issues Rating 14. Competition and Local Talent 15. DBE/Small Business Impacts 16. Legal and Statutory Constraints 17. Sustainability and LEED Certification Other Issues Rating 18. Adversarial Relationships 19. Construction Claims Other Key: Most appropriate delivery method Appropriate delivery method Least appropriate delivery method X Not Applicable (discontinue evaluation of this method) Project Delivery Advantages and Disadvantages Summary ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________

The six-step process forms the basis for the Project Delivery Decision Report. Steps 1 through 5 can be combined for a complete report. The advantage/disadvantage checklist and the related comments will be important to documentation. An executive summary should be added to the beginning of the report to summarize the decision. Any pertinent data or research (e.g., sched- ule constraint calculations, delivery code research, and so forth) should be added as appendices. A suggested Project Delivery Decision Report outline is offered below: 1. Executive Summary 2. Project Description 3. Project Goals 4. Delivery Methods Considered 5. Advantages and Disadvantages 6. Delivery Method Decision 7. Appendices Conclusion The Tier 1—Analytical Delivery Decision Approach provides airports with a structured approach to choosing the most appropriate project delivery method for each individual project. At the end of Step 5, there may be a single, clear, and logical choice for a project delivery method. If this is the case, that delivery method should be selected and the decision documented in a Proj- ect Delivery Decision Report. If, at the end of this stage, a dominant choice has not emerged, the airport should document the results and move to the Tier 2 approach for a more detailed analy- sis of the remaining delivery methods. 74 A Guidebook for Selecting Airport Capital Project Delivery Methods

Next: Chapter 5 - Tier 2 Weighted-Matrix Delivery Decision Approach »
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TRB’s Airport Cooperative Research Program (ACRP) Report 21: A Guidebook for Selecting Airport Capital Project Delivery Methods explores various project delivery methods for major airport capital projects. The guidebook also examines the impacts, advantages, and disadvantages of various project delivery methods including design-bid-build, construction manager at risk, and design-build.

A companion publication to this report, ACRP Web-Only Document 6: Evaluation and Selection of Airport Capital Project Delivery Methods, reviews pertinent literature and research findings related to various project delivery methods for airport projects. It contains definitions of project delivery methods and discusses the existing selection approaches commonly used by airports.

Appendixes C to F for ACRP Report 21 are available online. Electronic versions of the forms contained in Appendixes C–E are also available.

Appendix C: Forms for Project Description and Goals

Appendix D: Forms for Analytical Delivery Decision Approach (Tier 1)

Appendix E: Forms for Weighted-Matrix Delivery Decision Approach (Tier 2)

Appendix F: Case Study Example: Logan International Airport Central Parking Garage

Electronic forms

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