Evaluation of Project Delivery Methods (2009)

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TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach Northeastern University The Research Report 107 CHAPTER 6 – TIER 1 – ANALYTICAL DELIVERY DECISION APPROACH Introduction No single project delivery method is appropriate for every project. Each project must be examined individually to determine how it aligns with the attributes of each available delivery method. The Tier 1 – Analytical Delivery Decision Approach provides transit agencies with a structured approach to choosing the most appropriate project delivery method for each individual project. The Tier 1 approach has three primary objectives: • Present a structured framework to assist agencies in examining 24 critical issues involved in the project delivery decision; • Assist agencies in determining if there is a dominant or obvious choice of project delivery methods; 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 agencies to define project goals and examine the advantages and disadvantages of each delivery method within the context of these goals. The motivation for this approach is to help agencies understand project delivery method attributes and to determine if their specific project goals align with the attributes of a particular delivery method. The Tier 1 approach also provides a “go/no go” review to determine if one or more project delivery methods should be excluded from the examination. At the completion of Tier 1, there is a possibility that the agency may not have a single, clear and logical choice for a project delivery method. If this is the case, the agency will be advised to move to the Tier 2 or Tier 3 selection processes with the best delivery method options and create a more detailed analysis to select the final project delivery method. The Tier 1 approach is comprised of six distinct steps listed below and shown in Figure 6.1 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

TCRP G-08 – Project Delivery Methods Chapter 6- Analytical Decision Approach Step1. Create Project Description Name: _______________ Size: _______________ Location: _______________ Type: _______________ … : _______________ … : _______________ … Step 2. Define Project Goals Time: _______________ Cost: _______________ Quality: _______________ … : _______________ … : _______________ … Step 3. Go/No-Go Decision Point Go/No Go Critical Issues Step 4. Review Project Delivery Method Advantages/Disadvantages DBB Northeastern University The Research Report 108 Figure 6-1 - Tier 1 Selection Process Overview Step 5. Choose Most Appropriate Project Delivery Decision Disadvantage Adv 1 Advantage ˆ Disadv 1 ˆ ˆ …. CMR Disadv 2 ˆ ˆ Adv 2 ˆ …. Step 6. Document Results …. ˆ Disadvantage Disadv 1 Disadv 2 ˆ ˆ DB Adv 1 Advantage ˆ ˆ Advantages and Disadvantages Project Description PROJECT DELIVERY DECISION REPORT Project Goals Delivery Methods Considered Adv 2 ˆ …. DBOM ˆ Adv 1 ˆ Adv 2 ˆ …. ˆ Disadv 1 Disadv 2ˆ ˆ …. Advantage Disadvantage …. ˆ …. ˆ Disadvantage Disadv 1 Disadv 2 ˆ ˆAdv 1 Advantage ˆ ˆ Adv 2

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach 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 agencies in describing the appropriate level of detail. The description is provided to summarize only the key variables and provide a “snapshot” of the project scope at the time in which the project delivery decision was determined. Research and practical experience have shown that the definition of project goals is a key success factor in the project delivery decision. The objective of Step 2 is to provide guidance to agencies on how to write and rank their project goals. The guidance provides general categories for goals. The section also provides a sample of goals from transit projects across the country as an illustration of how agencies have defined their project goals on a variety of project delivery methods. 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 if certain delivery methods should be excluded from consideration. Step 4’s primary objective is to present a comprehensive listing of generic potential advantages and disadvantages for each delivery method in 24 critical areas. These potential advantages and disadvantages must be examined in the context of each individual project. Variations in the project characteristics, the people involved, and the processes in use by the agencies (the “three Ps”) will determine if these potential issues are actual advantages or disadvantages for a particular project. Step 4 asks the agencies to consider these actual advantages and disadvantages and rate each project delivery method as “most appropriate, appropriate, least appropriate, or not applicable” for each of the 24 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, given that a dominant or obvious choice exists. Upon transferring the 24 individual ratings from Step 4 into an overall summary, the process asks agencies to determine whether there is a dominant choice. Step 5 asks the agencies to consider the significant benefit as well as any risks or fatal flaws that might negate a delivery method even though the benefits make it a clear winner. If a dominant method is not apparent, the user will document the Tier 1 analysis and move to Tier 2 with the most applicable methods for further analysis. The objective of the final step, Step 6, is to provide a framework for documenting 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 justify the decision if issues arise years later as the project is completed. The process organizes the report into sections that follow the five previous steps in the Tier 1 process – project description, project goals, delivery methods considered, advantages and disadvantages, delivery method decision, and any relevant appendices. Step 1. Create Project Description The first step in the delivery selection involves the creation of a concise project description that serves to communicate the important project characteristics to the decision makers and also to Northeastern University The Research Report 109

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach document the project scope for the delivery decision report. Projects differ in their scope of work and their major elements (e.g., people involved, physical project characteristics, project duration, project budget, etc.). These distinguishing parameters affect the project delivery method selection. Agencies 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. The objective of creating a project description is to explain the project in sufficient details to document the project delivery decision. The project description should be concise and also comprehensive. It should include the necessary information about the project and address all aspects of the project that may be influenced by the selected delivery method. The intent of the project description is to provide a “snapshot” of the project scope at the time in which the project delivery decision was determined. It will serve to communicate the decision to interested stakeholders and to justify the decision if issues arise years later as the project is completed. Listed below is a checklist of the important project characteristics that should be covered in the project description. Project Description ˆ Project Name ˆ Location ˆ Mode of Transportation ˆ Estimated Budget ˆ Estimated Project Delivery Period ˆ Required Delivery Date (if applicable) ˆ Source(s) of Project Funding ˆ Project Type (In Street, Rail Corridor, etc.) ˆ Project Corridor or Site Dimensions ˆ Major Features of Work – track, stations, parking structures, platforms, etc. ˆ Ridership Forecast ˆ Rate of Return on Capital Investment/Payback Period (if applicable) ˆ Major Schedule Milestones ˆ Major Project Stakeholders ˆ Labor Union Status ˆ Major Challenges (as applicable) o With Right of Way, Utilities, and/or Environmental Approvals o During Construction Phase o During Operation and Maintenance ˆ Main Identified Sources of Risk ˆ Sustainable Design and Construction Requirements Northeastern University The Research Report 110

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach Project Name: Weber County to Salt Lake City Commuter Rail Project Location: Utah Mode of Transportation: Commuter Rail Estimated Budget: $196 Million for the main contract (total program is estimated at $611 million) Estimated Project Period: 6 years (including design phase) Required Delivery Date: September 2008 Source(s) of Project Funding: FTA and Local Sales Tax Project Corridor: from Pleasant View through the new Ogden Transit Center at 2349 Wall Street in Downtown Ogden, and terminating in the Salt Lake City Intermodal Center at 600 West 200 South Street, just west of the central business district. Project Corridor Dimensions: 43 miles with 8 stations starting from Pleasant View, Ogden, Roy, Clearfield, Layton, Farmington, Woods Cross, North Temple in Salt Lake City (Future), and finishing at the Salt Lake Intermodal Center. Additionally, project has 6 parking lots in its design. Major Features of Work: track, at grade stations, platforms, and parking lots. Ridership Forecast: 11,800 average weekday boarding. Major Schedule Milestones: Project completion date – September 2008 Major Project Stakeholders: Utah Transit Authority, Union Pacific-Santa Fe Railroad, FTA, and local jurisdictions. Labor Unions Status: No labor union issues anticipated. Major Challenges: • UTA entered into an inter-local agreement to build in the existing freight rail corridor with the jurisdictions that it passed through to be able to build without the need to procure building permits from every single local entity. • The entire project requires working within 25 feet of the active mainline UPRR corridor from Salt Lake City to Ogden which has up to 35 trains a day passing through at speeds up to 70 mph. The project runs through 14 different municipalities and intersects at 42 road crossings. Main Identified Sources of Risk: Storm drainage system, safety of construction (narrow corridor), coordination with Union Pacific for the work that UP has to do, unsuitable soil conditions, incomplete design on some aspects of the work such as station design. Sustainable Design and Construction Requirements: Enhance the environment through less traffic congestion and pollution. Figure 6-2 - Project Description Example Step 2. Define Project Goals Understanding 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 Northeastern University The Research Report 111

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach delivery method selection cannot be overemphasized in the guide. The definition of project goals is a key success factor in not only the project delivery decision, but also the development of procurement documents and the administration of a project. The project will have technical goals that must be met (e.g., meeting anticipated ridership, meeting design standards, meeting safety standards, etc.) and will also have performance goals regarding time, cost, quality, maintainability, and sustainability. It is the performance goals that typically drive the project delivery decision. At project inception, the agency must identify the various performance aspects of the project to meet its requirements. Generally, these will fall into the categories of cost, schedule, and quality as defined by the technical design. Of these three factors, the project will normally have one which is the most important for this project’s ultimate success – the preeminent factor. This preeminent factor is the factor for which the agency will sacrifice pieces of the other two to achieve the goal relating to this factor. A prime example of this comes from the University Line that was constructed for the Utah Transit Agency in Salt Lake City, Utah. While the Utah Transit Agency obviously had a fixed budget and certain standards to maintain with regard to quality, schedule was the preeminent factor because the project had to be finished prior to the start of the 2002 Winter Olympics and that factor was a primary reason why the Utah Transit Agency selected DB project delivery. In this case, the owner could not complete the necessary work using the traditional process in time to meet the deadline. A clear and concise definition of project goals not only assists with selecting an appropriate project delivery method, but also provides the clear measure for project success and clear direction for the construction manager or design-builder to complete the project. These project goals set the stage for decision makers throughout the project life cycle and show them the priorities while analyzing different alternatives. Project goals provide input for choosing procurement method, risk allocation strategies, contracting, monitoring progress and at the end evaluating the project success. To define project goals, thinking in terms of performance categories can be helpful. Time, cost, quality, and suitability are common categories. Table 6.1 below provides some generic goals in these categories. Table 6-1 - Examples of Generic Project Goals 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 Choosing the goals that apply to a specific project is a first critical step in an agency’s selection of delivery method. The second, and equally important step, is the ranking of the goals. Table 6.2 provides examples of goals from transit projects where alternative delivery methods were used. Northeastern University The Research Report 112

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach Northeastern University The Research Report 113 Table 6-2 - Examples of Project Goals Project Delivery Method Project Goals 7 Portland Mall Project, Oregon CMR 1. Work with builder to minimize disruption to businesses along ROW; 2. Minimize traffic control issues during construction; 3. Add auto and bike access routes in multi-modal approach; and 4. Enhance commitment to public art program furnishing space for expanded sculpture. Weber County to Salt Lake City Commuter Rail, Utah CMR 1. Maximize cost effectiveness by the use of a ‘bare bones/no frills approach to design in order to meet the project budget and qualify for federal New Starts funding; 2. Deliver ridership by developing a system that delivers short trip duration and on-time performance; 3. Solicit federal funding 4. Develop means for outside local match dollars to be incorporated into the project; 5. Encourage the involvement in the project development process by including internal and external stakeholders; and 6. Build a sense of project ownership with the public and community stakeholders. Transportation Expansion Project (TREX), Colorado DB 1. Minimize inconvenience to the community, motorists, and public; 2. Meet or beat the total program budget; 3. Provide for a quality project; and 4. Meet or beat the schedule of June 30, 2008. Rail Runner Phase 2, New Mexico DB 1. Cost not to exceed project budget established at $140,000,000; 2. High quality, safe, environmentally responsible, durable and maintainable project, that meets or exceeds all performance specifications and design criteria; 3. Minimum disruption to the traveling public during construction; 4. Contract awarded and Notice to Proceed (NTP) issued by August 31, 2007; 5. Completion of the entire Project by October 31, 2008, the Mandatory Completion Date, as specified in Contract Documents Part 1, Special Provision 108, Subsection 108.4.1; and 6. Valid basis for continued evaluation of D/B delivery system. Hudson Bergen Light Rail DBOM 1. Increase project delivery speed from lengthy planning and slow design pace; 2. Seek innovation in cost savings throughout the lifecycle; 3. Seek innovative financing if possible; and 4. Maximize owner staffing capabilities. The project goals in Table 6.2 vary in style and emphasis due to the unique project needs, but they all clearly link to the benefits of the project’s delivery method. Take for example the Portland Mall project in Oregon, CMR was selected because there was a project goal of minimizing disruption to 7 The project goals from the TREX and Rail Runner projects were published in the Request for Proposals. The project goals for the Portland Mall project were published in the Tri-Metropolitan County Transportation District fact sheet. The Weber County to Salt Lake City Commuter Rail goals were published in internal project development documents. The Hudson Bergen Light Rail goals were stated in research interviews.

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach business and minimizing traffic control issues during construction. Construction Manager at Risk helps with both of the goals through early contractor involvement in design (something that is absent from the DBB method). Likewise in the TREX project, the design-builder’s involvement in design helped to meet the agency’s first goal of minimizing inconvenience. Additionally, the DB method’s ability to confirm a fixed price and schedule early in design facilitates the goals of meeting or beating the total program budget and scheduled. Although not all the goals in Table 6.2 are ranked, ranking of the project goals is important. On every project there are tradeoffs between schedule, cost, and quality. It is to the project’s benefit if the agency, designers, and constructors are in alignment with these project goals. For example, the Rail Runner’s first project goal is not to exceed the program budget and the third is to minimize inconvenience to the public. This ranking provides clear direction to the design-builders that maintenance of traffic is important, but not at the expense of exceeding the program budget. As previously stated, understanding and communicating a concise set of project goals is perhaps the most important element in selecting an appropriate project delivery method. Agencies should take the time to identify project goals and achieve consensus on their relative importance. This time will be well spent as it will make the project delivery decision more clear. It will also help to define and communicate overall project success, thereby aligning the designers and constructors with the agency’s project performance measures. 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 schedule constraints; federal, state, and local laws; third party agreements; and labor unions agreement. These issues and how they relate to the four primary delivery methods are shown in Table 6.3. The transit agency needs to review these issues to determine if they eliminate any of the delivery methods. In other words, the agency 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 agency and a documentation of those which are not available for further consideration. The flowchart in Figure 6.3 depicts a step-by-step approach to the decision; a description of the approach follows. Table 6-3 - Go/No-Go Issue Summary DBB CMR DB DBOM Project Schedule Constraints 3 / X Fed/State/Local Laws 3 / X 3 / X 3 / X Third Party Agreements 3 / X 3 / X Labor Unions 3 / X Key: 3 / X = Go/No-Go decision point Northeastern University The Research Report 114

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach Figure 6-3 - Go/No-Go Decision Points As depicted in the flowchart in Figure 6.3, the agency should first conduct research into the pertinent issues of project schedule constraints, federal, state, and local laws, third party agreements, and labor unions agreement. The agency should first review any major milestones that could create schedule constraints which would prohibit a traditional DBB delivery (e.g., an aggressive fixed end date, funding availability windows, etc.). Next, federal, state and local laws can be researched by the agency’s general counsel to identify any constraints that must be met during the project delivery method selection process. For example, a jurisdiction that has 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. The agency then needs to determine the third party agreements that will be required (e.g., railroad, utility, permitting, etc.). Last, the owner should collect any union agreements that deal with operations and maintenance issues of the transit system. Northeastern University The Research Report 115

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach The agency’s next step is to analyze the documents and information in relation to the constraints of each delivery method. As depicted in Table 6.3, each of the issues may exclude one or two of the delivery methods from further consideration. For example, if the project is located in a state where the law does not authorize CMR, this agency 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 four 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 section on project goals, project schedule can be a preeminent factor in project success. Agencies frequently give schedule the first priority of the competing project goals. Shortening of duration is the reason that agencies most frequently cite for using alternative methods. Another case of schedule constraints involves an agency that would like to award construction before the design is complete, which the DBB method will not accommodate. This may occur when the agency has a fiscal year budget for construction and needs to award the project before the design is finished or if the agency has a window of 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 The TCRP G08 research project conducted a comprehensive survey of federal and state laws as they pertain to alternative delivery methods. While some states have explicitly given full authorization to transit agencies to use CMR, DB and DBOM, there are still some states that prohibit the use of one or all alternative methods. In the spectrum between full use and prohibition, some states allow alternative project delivery methods with certain conditions (e.g., requiring extra approvals, putting dollar value limits on the volume of DB or CMR contracts, or putting limits on the number of projects using alternative delivery method in each year). Although the results of this search (based on state laws in December 2006) are included in the research report for reference, these laws often change and each transit agency is responsible to check the relevant state and local laws because of continuous change and evolution of these laws. If the federal, state or local laws prohibit an agency from using an alternative delivery method, it should not be considered further. However, some agencies have determined that the use of an alternative delivery method was essential for project success and have been successful in drafting legislation to permit alternative delivery methods for a particular project or for general use. For example, DB was not permitted in the State of Colorado when the TREX project was envisioned. The Regional Transportation District in concert with the Colorado Department of Transportation was successful in helping to have legislation to permit design-build approved. These agencies pursued this approval as they developed the project scope. If an agency decides to take this path, it is wise to have a contingency plan for a traditional delivery in case the legislation is not approved. This contingency plan should be developed with an awareness of the duration of the process, the likelihood of achieving approval and also the benefits of using the alternative delivery method. Local laws may also put barrier on the use of a specific delivery method, so they should be checked along with the state laws. Northeastern University The Research Report 116

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach Third Party Agreement All major transit 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 and DBOM inappropriate. For example, if the right of way is shared between the project and a railroad company, a full set of drawings may be required by the railroad company 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 and DBOM might be eliminated from the list of available options. Labor Unions In the states where public sector labor unions are dominant, this issue may affect the choice of delivery methods. It primarily affects DBOM delivery in cases where public unions control the operation and maintenance of the transit project. Public labor unions can also affect DB delivery where transit agencies traditionally complete design with public sector designers. In both of these cases, agency maintenance employees or designers may not allow a delivery method that can outsource jobs to the public sector. In these cases, DBOM or DB may be eliminated from the list of available options. Upon reviewing these four go/no-go issues, agencies will have a list of viable delivery methods to further consider. Additionally, they should document the reasons for excluding any methods from further consideration. Table 6.4 provides a form for summarizing this go/no-go analysis. Table 6-4 - Go/No-Go Summary Form DBB CMR DB DBOM Project Schedule Constraints Fed/State/Local Laws Third Party Agreements Labor Unions Key: 3 Applicable for further study X Not Applicable (discontinue evaluation of this method) 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 this section is to determine how each project delivery method aligns with the project’s goals, project characteristics, agency characteristics, policy/regulatory issues and life cycle requirements. Northeastern University The Research Report 117

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach The process involves an examination of 24 separate issues relating to each delivery method. Upon examining each issue, the process asks users to relatively rate the delivery methods in terms of their appropriateness for each issue. The process can be summarized in the following steps. a. Understand the Issue: Read the brief description of each issue. Refer to Chapter three for an expanded description of the issue if needed. b. Analyze the Delivery Methods: Check the advantages and/or disadvantages of each delivery method as they apply to the particular project in question. Please note that these advantages and disadvantages are project dependent and may change with each new project analyzed. Again, refer to Chapter 3 for an expanded description of the issue if needed. Analyze each check box and decide whether that check box is relevant or not. Do not attempt to check every box! c. Complete the Issue Summary Table: Review the advantages and disadvantages that apply to each delivery method and analyze their implications. Complete the summary advantage/disadvantage table at the end of each section. A key is provided to rate each delivery method: z - most appropriate } - appropriate { - least appropriate X - not applicable Northeastern University The Research Report 118

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach Project Level Issues 1) Project Size Project size reflects the dollar value and physical dimensions of the transit corridor. DESIGN-BID-BUILD Advantages Disadvantages ˆ DBB has been shown to work on projects of all sizes. ˆ As projects grow in size, the amount of owner staffing required to oversee DBB can become very large. CONSTRUCTION MANAGEMENT AT RISK Advantages Disadvantages ˆ CMR has been shown to work on projects of all sizes. ˆ If not managed well, the use of multiple bid packages to facilitate CMR can be difficult. DESIGN-BUILD Advantages Disadvantages ˆ DB has been shown to work on projects of all sizes. ˆ Some owners have noted that DB can facilitate better management of large projects due to the single source of responsibility. ˆ As projects grow in size, there can be large peaks in owner staffing requirements with DB (e.g., during RFP development, during design review, etc.). DESIGN-BUILD-OPERATE-MAINTAIN Advantages Disadvantages ˆ DBOM is appropriate for large projects. ˆ Similarly to DB, DBOM can facilitate better management of large projects due to the single source of responsibility. ˆ DBOM is not appropriate for smaller project due to the overhead costs (e.g., for maintenance. etc.) ˆ Similarly to DB, DBOM can necessitate large peaks in owner staffing requirements. Table 6-5 - Project Size Advantages/Disadvantage Summary DBB CMR DB DBOM 1. Project Size Key: z Most appropriate delivery method } Appropriate delivery method { Least appropriate delivery method X Not Applicable (discontinue evaluation of this method) Comments_______________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ Northeastern University The Research Report 119

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach 2) Cost This issue represents several aspects of project cost like ability to handle budget restrictions, early and precise cost estimation, and consistent control of project costs. DESIGN-BID-BUILD Advantages Disadvantages ˆ Costs are known at bid time, before construction begins. ˆ Project can benefit from low bid procurement. ˆ Project can benefit from unit price bidding because quantities are defined prior to procurement. ˆ Construction costs are not fixed (or locked in) until design is 100% complete. ˆ Constructability advice and contractor innovations are not available to save cost until post bid. ˆ The DBB process is prone to change orders and cost growth after award. CONSTRUCTION MANAGEMENT AT RISK Advantages Disadvantages ˆ CMR can be used in conjunction with a GMP pricing structure, which can be useful in negotiating and controlling costs. ˆ If open book pricing can be used, all costs will be known by the owner. ˆ Costs will be known earlier when compared to DBB. ˆ Early constructor involvement or construction advice can lead to cost savings through value engineering and constructability reviews. ˆ If multiple bid packages are used, the overall project cost could grow if later bid packages cost more than estimated. ˆ If a GMP pricing structure is used, owners may have some difficulty in negotiation. DESIGN-BUILD Advantages Disadvantages ˆ If a lump sum pricing structure is used, costs will be fixed early in the project development process. ˆ DB has been shown to have lower average cost growth than DBB or CMR. ˆ If a lump sum pricing structure is used, constructors must develop prices before plans are 100% complete and therefore must assume some risk in pricing. DESIGN-BUILD-OPERATE-MAINTAIN Advantages Disadvantages ˆ Owner is provided with fixed cost for design, construction, and maintenance very early in the process. ˆ Due to the large amount of risk being taken by the DBOM provider, costs may be higher if the providers are not given opportunities to find efficiencies. ˆ DBOM pricing may be hard to negotiate due to the complexity and time frame of maintenance contracts. Northeastern University The Research Report 120

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach Table 6-6 - Cost Advantages/Disadvantage Summary DBB CMR DB DBOM 2. Cost Key: z Most appropriate delivery method } Appropriate delivery method { Least appropriate delivery method X Not Applicable (discontinue evaluation of this method) Comments_______________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 3) Schedule This factor shows two aspects of project schedule and includes both the ability to shorten the schedule and the opportunity to control and prevent time growth. DESIGN-BID-BUILD Advantages Disadvantages ˆ None. ˆ Likely to yield longest delivery schedule. ˆ Likely to yield the highest schedule growth. ˆ There is a lack of opportunity to compress schedule due to the linear nature of DBB. CONSTRUCTION MANAGEMENT AT RISK Advantages Disadvantages ˆ Facilitates fast-tracking, or the ability to bid multiple design packages. ˆ Studies have shown that CMR is faster on average than DBB, but slower than DB. ˆ Risk that overlapping design and construction packages may create delays if not properly coordinated. ˆ Fast-tracking schedule will require owner effort in design and construction reviews. DESIGN-BUILD Advantages Disadvantages ˆ Provides a single point of responsibility (DB contractor) for schedule control. ˆ Provides early scheduled certainty. ˆ Historically, provides the least schedule growth. ˆ Provides opportunities for flexibility in schedule compression. ˆ Studies have shown that DB is faster on average than DBB or CMR. ˆ Owner will sacrifice the checks and balances of having complete design prior to start of construction. ˆ Rapid schedule will require owner effort in design and construction reviews. Northeastern University The Research Report 121

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach DESIGN-BUILD-OPERATE-MAINTAIN Advantages Disadvantages ˆ Provides a single point of responsibility (DB contractor) for schedule control. ˆ Provides early scheduled certainty. ˆ Historically, provides the least schedule growth. ˆ Provides opportunities for flexibility in schedule compression. ˆ Will facilitate start-up process due to a single point of responsibility for design, construction and operation. ˆ Historically faster than DBB or CMR. ˆ Owner will sacrifice the advantage of having complete design prior to start of construction. ˆ Rapid schedule will require owner effort in design and construction reviews. Table 6-7 - Schedule Advantages/Disadvantage Summary DBB CMR DB DBOM 3. Schedule Key: z Most appropriate delivery method } Appropriate delivery method { Least appropriate delivery method X Not Applicable (discontinue evaluation of this method) Comments_______________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 4) Risk Management The issue details methods to cope with project uncertainties that are inherent to each delivery method. For more detailed guidance, please see Tier 3 for a risk-based approach to selecting project delivery methods. DESIGN-BID-BUILD Advantages Disadvantages ˆ Provides historically well defined and well understood risk management processes. ˆ Prescriptive designs and specifications allow for greater detail in risk allocation. ˆ Constructor cannot participate in risk management during design. ˆ Constructor’s ability to manage risk is constrained by low-bid procurement. Northeastern University The Research Report 122

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach CONSTRUCTION MANAGEMENT AT RISK Advantages Disadvantages ˆ Construction manager understands and participates in risk management process during design. ˆ Risk management process can be more complex due to separate design, construction, and construction management contracts. DESIGN-BUILD Advantages Disadvantages ˆ Single point of responsibility for risk management in design and construction. ˆ Owner may lose some ability to participate in the risk management process. DESIGN-BUILD-OPERATE-MAINTAIN Advantages Disadvantages ˆ Single point of responsibility for risk allocation in design, construction, operation and maintenance. ˆ Owner may lose some ability to participate in the risk management process for design, construction, operation, and maintenance. Table 6-8 - Risk Management Advantages/Disadvantages Summary DBB CMR DB DBOM 4. Risk Management Key: z Most appropriate delivery method } Appropriate delivery method { Least appropriate delivery method X Not Applicable (discontinue evaluation of this method) Comments_______________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 5) Risk Allocation Each project delivery method has inherent risk allocation characteristics. The overarching goal should be to select the project delivery method with the best ability to assign project risks to the parties in best position to manage them. DESIGN-BID-BUILD Advantages Disadvantages ˆ A clear risk allocation has been established due to history of use and statutory case law. ˆ Constructor cannot participate in risk allocation discussions during design. ˆ Conflicts can exist in risk allocation between separate design and construction contracts. Northeastern University The Research Report 123

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach CONSTRUCTION MANAGEMENT AT RISK Advantages Disadvantages ˆ Construction manager understands and participates in risk allocation during design. ˆ Prescriptive designs and specifications allow for greater detail in risk allocation. ˆ Conflicts can exist in risk allocation between separate design, construction, and construction management contracts. DESIGN-BUILD Advantages Disadvantages ˆ Provides a single party for risk allocation in both design and construction. ˆ Design-builder owns risk for design errors and omissions. ˆ Risks must be allocated through conceptual design and performance specifications. DESIGN-BUILD-OPERATE-MAINTAIN Advantages Disadvantages ˆ Provides a single party risk allocation in design, construction and maintenance. ˆ Constructor owns risk for design errors and omissions in construction, operations, and maintenance. ˆ Risks must be allocated through conceptual design and performance specifications for design, construction, operation, and maintenance. Table 6-9 - Risk Allocation Advantages/Disadvantages Summary DBB CMR DB DBOM 5. Risk Allocation Key: z Most appropriate delivery method } Appropriate delivery method { Least appropriate delivery method X Not Applicable (discontinue evaluation of this method) Comments_______________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ Northeastern University The Research Report 124

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach 6) LEED Certification Each project delivery method has some inherent abilities to include features that will help in obtaining LEED Certification in accordance with the owner’s needs. DESIGN-BID-BUILD Advantages Disadvantages ˆ LEED certification can be established in more detail during design period. ˆ Provides the least opportunity for constructor to participate in LEED process during design. ˆ Separate design packages can create difficulty in coordinating LEED elements in construction. CONSTRUCTION MANAGEMENT AT RISK Advantages Disadvantages ˆ Construction manager can offer its construction expertise during design decisions that involve LEED issues. ˆ Separate design packages can create difficulty in coordinating LEED elements in construction. DESIGN-BUILD Advantages Disadvantages ˆ Owner can use some LEED certification elements to select constructor. ˆ Single point of responsibility is provided for LEED certification in design and construction. ˆ Owner may not be involved in all LEED decisions. DESIGN-BUILD-OPERATE-MAINTAIN Advantages Disadvantages ˆ Owner can use some LEED certification elements to select constructor. ˆ In addition to having a single point of responsibility provided for LEED certification in design and construction, many LEED principles are in alignment with the constructor’s motivation to minimize operating costs. ˆ Owner may not be involved in all LEED decisions. Table 6-10 - LEED Certification Advantages/Disadvantages Summary DBB CMR DB DBOM 6. LEED Certification Key: z Most appropriate delivery method } Appropriate delivery method { Least appropriate delivery method X Not Applicable (discontinue evaluation of this method) Northeastern University The Research Report 125

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach Comments_______________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ Agency Level Issues 7) Agency Experience The level of experience of an owner’s staff can affect the success of an alternative delivery methods application. DESIGN-BID-BUILD Advantages Disadvantages ˆ Since this is the traditional method of project delivery, owners will likely have the most experience with this method. ˆ None. CONSTRUCTION MANAGEMENT AT RISK Advantages Disadvantages ˆ CMR is similar to DBB in many key aspects where agencies have experience (e.g., separation of design and construction). ˆ Agencies may not have experience with GMP pricing or the negotiation that can be involved. ˆ Agencies may not have experience in the use of multiple bid packages to facilitate fast-track construction. DESIGN-BUILD Advantages Disadvantages ˆ Agencies can take advantage of the sole point of responsibility for design and construction to leverage their experience. ˆ Agencies may not have experience authoring DB RFPs and conducting procurements. ˆ Agencies may not have experience administering DB contracts, particularly in the area of design review and administration. ˆ DB necessitates experienced staff to manage design and construction under one contract. DESIGN-BUILD-OPERATE-MAINTAIN Advantages Disadvantages ˆ Similar to DB, agencies can take advantage of the sole point of contact for design, construction and maintenance to leverage their experience. ˆ Agencies may not have experience authoring DBOM RFPs and conducting procurements. ˆ Agencies may not have experience administering DBOM contracts, particularly in the area of design review and administration. ˆ DBOM necessitates the most experienced staff to manage design, construction and maintenance under one contract. Northeastern University The Research Report 126

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach Table 6-11 - Agency Experience Advantages/Disadvantages Summary DBB CMR DB DBOM 7. Agency Experience Key: z Most appropriate delivery method } Appropriate delivery method { Least appropriate delivery method X Not Applicable (discontinue evaluation of this method) Comments_______________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 8) Staffing Required The total number of required owner’s employees for each delivery method is one measure of the extent of owner involvement. Another important measure for the owners is the variation in the number of staff required throughout the project development process. DESIGN-BID-BUILD Advantages Disadvantages ˆ The separation of design and construction phases provides less variation in owner staffing levels. ˆ DBB typically requires a larger owner staff than the other delivery methods. ˆ DBB typically requires a higher level of owner involvement. CONSTRUCTION MANAGEMENT AT RISK Advantages Disadvantages ˆ The CMR alternative can use the least number of owner staff if the CMR is allowed to take on the traditional owner tasks. ˆ The owner will need to have a number of staff with the ability to oversee and negotiate with the CMR during the process. DESIGN-BUILD Advantages Disadvantages ˆ DB can greatly reduce the number of required owner staff. ˆ Design and construction reviews can be done in shorter periods of time. ˆ DB creates peaks in owner staffing needs, particularly during procurement and design review periods. ˆ While fewer owner staff is needed, more experienced staff is required. Northeastern University The Research Report 127

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach DESIGN-BUILD-OPERATE-MAINTAIN Advantages Disadvantages ˆ Similarly to DB, DBOM can greatly reduce the number of required owner staff. ˆ Design and construction reviews can be done is shorter periods of time. ˆ DBOM can create larger peaks in owner staffing needs during procurement and design review due to the inclusion of maintenance and finance issues involved in the process. ˆ While fewer owner staff is needed, more experienced staff is required. Table 6-12 - Staff Required Advantages/Disadvantages Summary DBB CMR DB DBOM 8. Staff Required Key: z Most appropriate delivery method } Appropriate delivery method { Least appropriate delivery method X Not Applicable (discontinue evaluation of this method) Comments_______________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 9) Staff Capability This issue regards owner’s requirement to furnish a highly capable staff to complete the duties it must undertake in each delivery method. DESIGN-BID-BUILD Advantages Disadvantages ˆ DBB is traditionally aligned with owner staff capabilities. ˆ As projects grow in size, more experienced staff is required. ˆ Owner’s typically have different staff to oversee design and construction processes. CONSTRUCTION MANAGEMENT AT RISK Advantages Disadvantages ˆ The CMR can augment an owner’s capabilities with his own staff. ˆ Owners must have experienced staff to oversee the CMR. ˆ Owners may lack some capabilities in negotiating prices developing designs and managing the constructor’s inputs during the design phase. Northeastern University The Research Report 128

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach DESIGN-BUILD Advantages Disadvantages ˆ The owners will be able to rely on one source of responsibility for both design and construction. ˆ Similarly to CMR, DB is an alternative delivery method and it is advisable to have staff members with DB oversight experience. ˆ Owners will need capabilities to develop procurement documents and performance criteria. ˆ Owners will need to have capabilities of reviewing design under a DB contract. DESIGN-BUILD-OPERATE-MAINTAIN Advantages Disadvantages ˆ The owners will be able to rely on one source of responsibility for design, construction, operations and maintenance. ˆ Similarly to DB, DBOM is an alternative delivery method and it is advisable to have staff members with DBOM oversight experience. ˆ Owners will need capabilities to develop procurement documents and performance criteria. ˆ Owners will need capabilities to analyze complex financial proposals. ˆ Owners will need to have capabilities of reviewing design under a DB contract. Table 6-13 - Staff Capability Advantages/Disadvantages Summary DBB CMR DB DBOM 9. Staff Capability Key: z Most appropriate delivery method } Appropriate delivery method { Least appropriate delivery method X Not Applicable (discontinue evaluation of this method) Comments_______________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 10) Agency Goals and Objectives Agency goals define project success. The extent to which these goals align with the inherent attributes of each project delivery method has a significant bearing on delivery method selection. Northeastern University The Research Report 129

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach DESIGN-BID-BUILD Advantages Disadvantages ˆ The DBB process allows for goals to be defined through the design process. ˆ Separate design and construction contracts can make goals more difficult to align and manage. ˆ If not developed correctly, detailed designs and prescriptive specifications can conflict with agency goals. CONSTRUCTION MANAGEMENT AT RISK Advantages Disadvantages ˆ Agency can involve the CMR in refinement of goals while working together to refine the scope and the GMP. ˆ Qualifications-based construction manager selection can align the team with the project goals. ˆ The agency must have the goals substantially developed when the construction manager contract is awarded. ˆ The negotiation of a GMP may inhibit the alignment of project goals between the agency and the construction manager. DESIGN-BUILD Advantages Disadvantages ˆ Best-value design-builder selection can align the team with the project goals. ˆ Properly written procurement performance criteria can help design-builders innovation to achieve project goals. ˆ To ensure success, agencies must completely understand goals prior to awarding the DB contract. DESIGN-BUILD-OPERATE-MAINTAIN Advantages Disadvantages ˆ In addition to the DB advantages, DBOM allows owners to include life-cycle and maintenance goals into the contract. ˆ Similar to DB, agencies must completely understand goals prior to awarding the DBOM contract. Table 6-14 - Agency Goals and Objectives Advantages/Disadvantages Summary DBB CMR DB DBOM 10. Agency Goals and Objectives Key: z Most appropriate delivery method } Appropriate delivery method { Least appropriate delivery method X Not Applicable (discontinue evaluation of this method) Comments_______________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ Northeastern University The Research Report 130

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach 11) Agency Control of Project The owner’s ability to control the detail of design and construction varies with each project delivery method. (Note that cost control and time control are described in other issues). DESIGN-BID-BUILD Advantages Disadvantages ˆ The use of prescriptive specifications and complete designs at the time of award provides agencies with the most control over the project. ˆ Separate design and construction contracts provide clear checks and balances. ˆ With additional control come added activities and responsibility for agency staff. ˆ The DBB method can be prone to change orders if any design conflicts or constructability issues are found. CONSTRUCTION MANAGEMENT AT RISK Advantages Disadvantages ˆ The CMR method benefits from early constructor involvement, but still has the benefit of separate design and construction contracts. ˆ Agency 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 Advantages Disadvantages ˆ The transfer of design liability lessens the need for agency control over design. ˆ Award at a conceptual design level means that the agency will loose control over the details of the final design. DESIGN-BUILD-OPERATE-MAINTAIN Advantages Disadvantages ˆ The transfer of design liability lessens the need for agency control over design and maintenance decisions. ˆ Award at a conceptual design level means that the agency will lose control over the details of the final design. ˆ Since the DBOM will be responsible for maintaining the project, the agency could lose control over the detail of some maintenance decisions. Table 6-15 - Agency Control of Project Advantages/Disadvantages Summary DBB CMR DB DBOM 11. Agency Control of Project Key: z Most appropriate delivery method } Appropriate delivery method { Least appropriate delivery method X Not Applicable (discontinue evaluation of this method) Northeastern University The Research Report 131

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach Comments_______________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 12) Third Party Agreement Each delivery method can facilitate agreements with third parties, such as political entities, utilities, railroads, etc. in a different manner. The extent to which designers or constructors can facilitate third party agreements is the basis for the advantage and disadvantage of each delivery method. DESIGN-BID-BUILD Advantages Disadvantages ˆ The use of complete plans and prescriptive specifications facilitates third party agreements. ˆ Expediting third party agreements in the DBB process can be cumbersome if it is required. CONSTRUCTION MANAGEMENT AT RISK Advantages Disadvantages ˆ Construction managers can help facilitate third party agreements. ˆ Construction managers typically do not guarantee costs involved with obtaining or which stem from problems with third party agreements. DESIGN-BUILD Advantages Disadvantages ˆ Design-builders can use innovative methods to assist in obtaining third party agreements. ˆ Some third party agencies can have codes that negate the use of DB thereby excluding the DB method from consideration (see Step 3 Review Go/No-Go Decision Points). ˆ Design-builders typically do not guarantee costs involved with obtaining or which stem from problems with third party agreements. DESIGN-BUILD-OPERATE-MAINTAIN Advantages Disadvantages ˆ Design-builders can use innovative methods to assist in obtaining third party agreements. ˆ Some third party agencies can have codes that negate the use of DBOM thereby excluding the DBOM method from consideration (see Step 3 Review Go/No-Go Decision Points). ˆ Design-builders typically do not guarantee costs involved with obtaining or which stem from problems with third party agreements. Northeastern University The Research Report 132

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach Table 6-16 - Third Party Agreement Advantages/Disadvantages Summary DBB CMR DB DBOM 12. Third Party Agreement Key: z Most appropriate delivery method } Appropriate delivery method { Least appropriate delivery method X Not Applicable (discontinue evaluation of this method) Comments_______________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ Public Policy/Regulatory Issues 13) Competition Each delivery method may affect the level of competition. This concerns the evaluation of facilitating effects of each method on competition. Alternative project delivery methods allow agencies to package projects in sizes that can effectively enhance or reduce competition. DESIGN-BID-BUILD Advantages Disadvantages ˆ Owner benefits from large pool of potential bidders and high level of competition. ˆ There are issues that follow low bid procurement such as a higher probability of request for change orders, disputes and claims. CONSTRUCTION MANAGEMENT AT RISK Advantages Disadvantages ˆ Qualifications-based selection factors can be applied to select only the most highly qualified construction managers. ˆ Presence of a constructor early in the project may give the owner less competitive leverage when pricing the construction. DESIGN-BUILD Advantages Disadvantages ˆ Qualifications-based selection factors can be applied to select only the most highly qualified design-builders. ˆ Proposal package size and bid preparation costs can decrease the number of qualified bidders. ˆ 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). Northeastern University The Research Report 133

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach DESIGN-BUILD-OPERATE-MAINTAIN Advantages Disadvantages ˆ Qualifications-based selection factors can be applied to select only the most highly qualified design-builders. ˆ Proposal package size and bid preparation costs can decrease the number of qualified bidders. ˆ Lengthy contract duration and extra competencies required for O&M part of the contract decrease the number of bidders. ˆ Opposition from public sector employees, unions or other interested parties can exclude the DBOM method from consideration (see Step 3 Review Go/No-Go Decision Points). Table 6-17 - Competition Advantages/ Disadvantages Summary DBB CMR DB DBOM 13. Competition Key: z Most appropriate delivery method } Appropriate delivery method { Least appropriate delivery method X Not Applicable (discontinue evaluation of this method) Comments_______________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 14) Disadvantaged Business Enterprise Impacts The extent to which the delivery methods can be used to promote participation of disadvantaged businesses forms the advantages and disadvantages of this issue. DESIGN-BID-BUILD Advantages Disadvantages ˆ Agencies can include DBE requirements in both design and construction requirements. ˆ DBE involvement is known at time of award for design and construction. ˆ Low bidding environment may harm future viability of DBE companies. CONSTRUCTION MANAGEMENT AT RISK Advantages Disadvantages ˆ Agencies can include DBE requirements in both design and construction requirements. ˆ DBE involvement is known at time of award for design and construction. ˆ Due to the phased nature of CMR contracts, the final DBE involvement may not be known until the project is ultimately completed. Northeastern University The Research Report 134

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach DESIGN-BUILD Advantages Disadvantages ˆ Agencies can include DBE requirements in the RFP for design and construction requirements. ˆ 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. DESIGN-BUILD-OPERATE-MAINTAIN Advantages Disadvantages ˆ Agencies can include DBE requirements in the RFP for design, construction, and maintenance requirements. ˆ 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. Table 6-18 - DBE Impacts Advantages/Disadvantages Summary DBB CMR DB DBOM 14. DBE Impacts Key: z Most appropriate delivery method } Appropriate delivery method { Least appropriate delivery method X Not Applicable (discontinue evaluation of this method) Comments_______________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 15) Labor Unions The choice of delivery method may have an impact on labor usage and hence labor union issues. These issues can be both internal to the transit agency as well as external with its contractors. DESIGN-BID-BUILD Advantages Disadvantages ˆ The DBB process is well established, so there is generally no fundamental opposition from unions. ˆ None. CONSTRUCTION MANAGEMENT AT RISK Advantages Disadvantages ˆ Similar to DBB, there is generally no fundamental opposition from unions. ˆ Construction managers do not generally guarantee prices if there are issues with labor unions. Northeastern University The Research Report 135

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach DESIGN-BUILD Advantages Disadvantages ˆ None. ˆ Opposition from public design unions can exclude the DB method from consideration (see Step 3 Review Go/No-Go Decision Points). ˆ Design-builders do not generally guarantee prices if there are issues with labor unions. DESIGN-BUILD-OPERATE-MAINTAIN Advantages Disadvantages ˆ None ˆ Opposition from public design unions can exclude the DBOM method from consideration (see Step 3 Review Go/No-Go Decision Points). ˆ Opposition from public maintenance unions can exclude the DB method from consideration (see Step 3 Review Go/No-Go Decision Points). ˆ Design-builders do not generally guarantee prices if there are issues with labor unions. Table 6-19 - Labor Unions Advantages/Disadvantages Summary DBB CMR DB DBOM 15. Labor Unions Key: z Most appropriate delivery method } Appropriate delivery method { Least appropriate delivery method X Not Applicable (discontinue evaluation of this method) Comments_______________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 16) Fed/State/Local Laws Use of some delivery methods may not be allowed for transit agencies due to state or local laws. Some of the states mandate that the transit agencies go through several steps before being allowed to use an alternative delivery method. The level of difficulty of using a delivery method from a legal standpoint constitutes the advantages and disadvantages of this issue. DESIGN-BID-BUILD Advantages Disadvantages ˆ All states are authorized to use DBB. ˆ None. Northeastern University The Research Report 136

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach CONSTRUCTION MANAGEMENT AT RISK Advantages Disadvantages ˆ Some states allow more flexible procurement regulations with CMR, which can be advantageous in appropriate situations to expedite project development. ˆ Some state agencies are not authorized to use CMR or need to get extra approvals (see Step 3 Review Go/No-Go Decision Points). DESIGN-BUILD Advantages Disadvantages ˆ Some states allow more flexible procurement regulations with DB, which can be advantageous in appropriate situations to expedite project development. ˆ Some state agencies are not authorized to use DB or need to get extra approvals (see Step 3 Review Go/No-Go Decision Points). DESIGN-BUILD-OPERATE-MAINTAIN Advantages Disadvantages ˆ Some states allow more flexible procurement regulations with DBOM, which can be advantageous in appropriate situations to expedite project development. ˆ State laws and regulations for DBOM are similar to DB (see Step 3 Review Go/No-Go Decision Points). Table 6-20 - Fed/State/Local Laws Advantages/ Disadvantages Summary DBB CMR DB DBOM 16. Fed/State/Local Laws Key: z Most appropriate delivery method } Appropriate delivery method { Least appropriate delivery method X Not Applicable (discontinue evaluation of this method) Comments_______________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 17) FTA/EPA Regulations The extent to which the various delivery methods can facilitate FTA requirements and EPA regulations given the unique project characteristics constitutes the advantages and disadvantages of this issue. Northeastern University The Research Report 137

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach DESIGN-BID-BUILD Advantages Disadvantages ˆ Familiarity of agencies with this method facilitates permit and funding process. ˆ The final cost and schedule are established long after the Full Funding Grant Authorization (FFGA) which can be problematic if FFGA cost and schedule estimates are not met. CONSTRUCTION MANAGEMENT AT RISK Advantages Disadvantages ˆ Construction managers can help facilitate the environmental process. ˆ The use of a GMP with separate design and construction packages can result in a final cost and schedule confirmation long after the FFGA. DESIGN-BUILD Advantages Disadvantages ˆ FTA has gained some experience and has modified its procedures to use DB. ˆ Cost and schedule are fixed near the FFGA. ˆ The design required to acquire environmental permits before hiring a design-builder may cause delays and negate some of the advantages of the DB method. DESIGN-BUILD-OPERATE-MAINTAIN Advantages Disadvantages ˆ FTA has gained some experience and has modified its procedures. ˆ Cost and schedule are fixed near the FFGA. ˆ The design required to acquire environmental permits before hiring a design-builder may cause delays and negate some of the advantages of the DB method. Table 6-21 - FTA/EPA Regulations Advantages/Disadvantages Summary DBB CMR DB DBOM 17. FTA/EPA Regulations Key: z Most appropriate delivery method } Appropriate delivery method { Least appropriate delivery method X Not Applicable (discontinue evaluation of this method) Comments_______________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ Northeastern University The Research Report 138

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach 18) Stakeholder/Community Input This issue addresses the opportunity for stakeholder involvement afforded by the delivery methods. DESIGN-BID-BUILD Advantages Disadvantages ˆ Separate design and construction phase gives opportunity to get stakeholders’ inputs before the commencement of construction. ˆ The opportunity for stakeholder changes in design can cause delay in the project. CONSTRUCTION MANAGEMENT AT RISK Advantages Disadvantages ˆ The construction experience of the construction manager can help facilitate stakeholder input. ˆ Stakeholder input can make GMP negotiation troublesome if not managed correctly. DESIGN-BUILD Advantages Disadvantages ˆ The owner can require the DB contractor to include a public information and outreach program to facilitate communities’ inputs. ˆ Design-builders can be innovative in helping gain community involvement. ˆ Any change because of community inputs after the issuance of RFP can be costly. DESIGN-BUILD-OPERATE-MAINTAIN Advantages Disadvantages ˆ The owner can require the DB contractor to include a public information and outreach program to facilitate communities’ inputs. ˆ Design-builders can be innovative in helping gain community involvement. ˆ Any change because of community inputs after the issuance of RFP can be costly. Table 6-22 - Stakeholder/Community Input Advantages/Disadvantages Summary DBB CMR DB DBOM 18. Stakeholder/Community Input Key: z Most appropriate delivery method } Appropriate delivery method { Least appropriate delivery method X Not Applicable (discontinue evaluation of this method) Comments_______________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ Northeastern University The Research Report 139

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach Life-Cycle Issue 19) Life-Cycle 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 in regards to life-cycle costs. DESIGN-BID-BUILD Advantages Disadvantages ˆ The agency can controls life-cycle costs through completed design and performance specifications. ˆ The DBB system allows for little constructor input into life-cycle costs. CONSTRUCTION MANAGEMENT AT RISK Advantages Disadvantages ˆ CMR has all benefits of DBB, plus the agency can leverage construction manager’s input into life-cycle costs. ˆ If life-cycle performance criteria are not well understood during the development of the GMP, life-cycle issues may be difficult to incorporate into the final product. DESIGN-BUILD Advantages Disadvantages ˆ The agency can use performance criteria to set life-cycle performance standards and rely on design-builder innovation to achieve these standards. ˆ If life-cycle performance criteria are not well understood at the procurement stage, they will not be incorporated into the DB contract. DESIGN-BUILD-OPERATE-MAINTAIN Advantages Disadvantages ˆ The design-builder is responsible for maintenance in the DBOM contract and will be highly motivated to provide optimal life-cycle designs. ˆ The agency can use performance criteria to set life-cycle performance standards and rely on design-builder innovation to achieve these standards. ˆ The agency will not have complete control over all life-cycle issues that are not included as performance criteria in the contract. Table 6-23 - Life-Cycle Costs Advantages/Disadvantages Summary DBB CMR DB DBOM 19. Life-Cycle Costs Key: z Most appropriate delivery method } Appropriate delivery method { Least appropriate delivery method X Not Applicable (discontinue evaluation of this method) Comments_______________________________________________________________ Northeastern University The Research Report 140

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 20) Maintainability There can be advantages and disadvantages to each delivery method in regards to how maintainability is achieved. This issue describes these advantages and disadvantage as it relates to the owner’s ability to specific quality and ease of maintenance. DESIGN-BID-BUILD Advantages Disadvantages ˆ The opportunity to view completed plans before award allows agencies to review maintenance issues in designs. ˆ There is little opportunity for constructors to have input into maintenance issues. CONSTRUCTION MANAGEMENT AT RISK Advantages Disadvantages ˆ CMR has all benefits of DBB, plus the agency can leverage construction manager’s input into maintenance issues. ˆ 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 Advantages Disadvantages ˆ The agency can emphasize maintainability issues through performance criteria and best- value award factors. ˆ If maintainability issues are not well understood at the procurement stage, they will not be incorporated into the DB contract. DESIGN-BUILD-OPERATE-MAINTAIN Advantages Disadvantages ˆ The design-builder is responsible for maintenance in the DBOM contract and will be highly motivated to provide optimal life-cycle designs. ˆ The agency can emphasize maintainability issues through performance criteria and best- value award factors. ˆ The agency will not have complete control over all maintainability issues that are not included as performance criteria in the contract. Table 6-24 - Maintainability Advantages/Disadvantages Summary DBB CMR DB DBOM 20. Maintainability Northeastern University The Research Report 141

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach Key: z Most appropriate delivery method } Appropriate delivery method { Least appropriate delivery method X Not Applicable (discontinue evaluation of this method) Comments_______________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 21) Sustainable Design Goals Sustainable design is becoming ever more important in achieving overall sustainability goals for the projects. The effect of delivery method in facilitating the process of implementing sustainability issues in the design is the focus of this issue. DESIGN-BID-BUILD Advantages Disadvantages ˆ Agencies can work with designers to incorporate sustainable designs into complete designs. ˆ The process provides little opportunity for constructability reviews to ensure that sustainable designs can be constructed efficiently and are not cost prohibitive. CONSTRUCTION MANAGEMENT AT RISK Advantages Disadvantages ˆ CMR has all benefits of DBB, plus the agency can leverage construction manager’s input into sustainable design issues. ˆ The use of separate bid packages can create barriers in the integration of sustainable solutions if not approached correctly. DESIGN-BUILD Advantages Disadvantages ˆ The agency can emphasize sustainable design issues through performance criteria and best- value award factors. ˆ Integration of the design and construction team can enhance constructability of designs. ˆ If sustainable design issues are not well understood at the procurement stage, they will not be incorporated into the DB contract. DESIGN-BUILD-OPERATE-MAINTAIN Advantages Disadvantages ˆ The agency can emphasize sustainable design issues through performance criteria and best- value award factors. ˆ Integration of the design and construction team can enhance constructability of designs. ˆ DBOM contractors can realize economic returns for sustainable designs since they have an inherent bias toward minimizing operations and maintenance life cycle costs. ˆ If sustainable design issues are not well understood at the procurement stage, they will not be incorporated into the DB contract. Northeastern University The Research Report 142

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach Table 6-25 - Sustainable Design Goals Advantages/Disadvantages Summary DBB CMR DB DBOM 21. Sustainable Design Goals Key: z Most appropriate delivery method } Appropriate delivery method { Least appropriate delivery method X Not Applicable (discontinue evaluation of this method) Comments_______________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 22) Sustainable Construction Goals Sustainable construction is an important vehicle for achieving overall sustainability goals as well. The effect of delivery method in facilitating the process of sustainable construction is the focus of this issue. DESIGN-BID-BUILD Advantages Disadvantages ˆ Prescriptive specifications can be used to define sustainable construction practices prior to construction. ˆ There is little opportunity or incentive for constructor to do more than what is specified in terms of sustainable construction practices. ˆ Agencies can assume liability when prescribing construction methods. CONSTRUCTION MANAGEMENT AT RISK Advantages Disadvantages ˆ The agency can leverage construction manager’s input into sustainable construction issues. ˆ The use of separate bid packages can create barriers in the integration of sustainable solutions if not approached correctly. DESIGN-BUILD Advantages Disadvantages ˆ The agency can emphasize sustainable construction issues through performance criteria and best-value award factors. ˆ Integration of the design and construction team can enhance the use of sustainable construction practices. ˆ If sustainable construction issues are not well understood at the procurement stage, they will not be incorporated into the DB contract. Northeastern University The Research Report 143

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach DESIGN-BUILD-OPERATE-MAINTAIN Advantages Disadvantages ˆ DBOM contractors can realize economic returns for sustainable designs since they have an inherent bias toward minimizing operations and maintenance life cycle costs. ˆ If sustainable construction issues are not well understood at the procurement stage, they will not be incorporated into the DBOM contract. Table 6-26 - Sustainable Construction Goals Advantages/Disadvantages Summary DBB CMR DB DBOM 22. Sustainable Construction Goals Key: z Most appropriate delivery method } Appropriate delivery method { Least appropriate delivery method X Not Applicable (discontinue evaluation of this method) Comments_______________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ Other Issues 23) Construction Claims The effect of each delivery method in exposing the agency to potential conflicts and claims is addressed under this issue. DESIGN-BID-BUILD Advantages Disadvantages ˆ DBB has well understood legal precedent for construction claims. ˆ DBB historically has the highest occurrence of claims and disputes, which often occur in the areas of authority, responsibility and quality. ˆ The low bid environment can provide incentives for constructor to file claims – particularly if any ambiguity in plans exist. CONSTRUCTION MANAGEMENT AT RISK Advantages Disadvantages ˆ Having the constructor on the team early during design can lessen the likelihood for disputes and claims regarding designs. ˆ Since design and construction contracts are separate, the potential for disputes and claims regarding design still exist. ˆ If multiple bid packages are not managed correctly, the coordination of these bid packages can result in claims. Northeastern University The Research Report 144

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach DESIGN-BUILD Advantages Disadvantages ˆ The single source for design and construction eliminates claims for design errors or omissions from the agency’s perspective. ˆ There is potential for claims in regards to scope definition if the form of the DB contract is not well understood. DESIGN-BUILD-OPERATE-MAINTAIN Advantages Disadvantages ˆ DBOM has similar advantages to DB and additionally eliminates claims regarding operating performance due to the integration of the operator. ˆ There is potential for claims in regards to scope definition if the form of the DBOM contract is not well understood. Table 6-27 - Construction Claims Advantages/Disadvantages Summary DBB CMR DB DBOM 23. Construction Claims Key: z Most appropriate delivery method } Appropriate delivery method { Least appropriate delivery method X Not Applicable (discontinue evaluation of this method) Comments_______________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ 24) Adversarial Relationship The extent to which a delivery method can avoid adversarial relationships on the project team varies depending upon the nature of the project and the owner’s experience with the delivery methods. DESIGN-BID-BUILD Advantages Disadvantages ˆ Roles and responsibilities in DBB contract are very well understood in the industry. ˆ DBB can create an adversarial relationship between the parties; primarily between the owner and construction contractor. CONSTRUCTION MANAGEMENT AT RISK Advantages Disadvantages ˆ Inclusion of the construction manager in the design process can align team members and lessen adversarial relationships. ˆ Negotiation of GMP can create an adversarial situation if the process is not well understood. Northeastern University The Research Report 145

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach DESIGN-BUILD Advantages Disadvantages ˆ Inclusion of the designer and constructor on the same team can lesson adversarial relationships. ˆ 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, design-build can become adversarial. DESIGN-BUILD-OPERATE-MAINTAIN Advantages Disadvantages ˆ Inclusion of the designer, constructor and maintenance contractor on the same team can lesson adversarial relationships. ˆ Similar to DB, a DBOM delivery requires a high level of trust to succeed. Table 6-28 - Adversarial Relationship Advantages/Disadvantages Summary DBB CMR DB DBOM 24. Adversarial Relationship Key: z Most appropriate delivery method } Appropriate delivery method { Least appropriate delivery method X Not Applicable (discontinue evaluation of this method) Comments_______________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ Step 5. Choose the Most Appropriate Project Delivery Method Steps 1-4 of the process provide all the individual pieces of the information to make a project delivery decision. The final step involves combining this information into a final comprehensive format that will aid in the decision. Table 6.29 presents a table to summarize the advantages and disadvantages. Following the table is an outline for documenting the final decision. Step 5 requires the following steps: a. Review Project Goals: Review the project goals documented in Step 2 to be certain that any project delivery method selection is in alignment with the goals. b. Transfer Issue Summary Ratings: Transfer the summary ratings from end of each issue analysis to Table 6-29 to provide a complete picture of the analysis. c. Review Table 6-29 for Dominant Delivery Method: Upon completing Table 6.29, a delivery method may rise to be 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 translating the ratings should be avoided. If needed, review any comments from the previous issue analysis to help with the delivery decision. Northeastern University The Research Report 146

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach Note: If dominant method exists, make delivery choice and move to Step 6. d. Review “Least Appropriate” Ratings: Review any “Least Appropriate” ratings to determine if any of the issues create red flags or problems that would make a delivery method significantly less desirable. e. Choose 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. Northeastern University The Research Report 147

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach Table 6-29 - Project Delivery Method Advantage/Disadvantage Summary PROJECT DELIVERY METHOD ADVANTAGE/DISADVANTAGE SUMMARY DBB CMR DB DBOM Project Level Issues Rating 1. Project Size 2. Cost 3. Schedule 4. Risk Management 5. Risk Allocation 6. LEED Certification Agency Level Issues Rating 7. Agency Experience 8. Staffing Required 9. Staff Capability 10. Agency Goals and Objectives 11. Agency Control of Project 12. Third Party Agreement Public Policy/Regulatory Issues Rating 13. Competition 14. DBE Impacts 15. Labor Unions 16. Fed/State/Local Laws 17. FTA/EPA Regulations 18. Stakeholder/Community Input Life Cycle Issues Rating 19. Life-Cycle Costs 20. Maintainability 21. Sustainable Design Goals 22. Sustainable Construction Goals Other Issues Rating 23. Construction Claims 24. Adversarial Relationships Other Other Other Key: z Most appropriate delivery method } Appropriate delivery method { Least appropriate delivery method X Not Applicable (discontinue evaluation of this method) Project Goals and Pertinent Issue Comments ________________________________________________________________________ Northeastern University The Research Report 148

TCRP G-08 – Project Delivery Methods Chapter 6 - Analytical Decision Approach Northeastern University The Research Report 149 ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ Step 6. Document Results The final step in the Tier 1 decision process is to document the results in a Project Delivery Selection Report. Whether one delivery method rises to be the dominant choice or none of the four delivery 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 interested stakeholders. The six-step process forms the basis for the Project Delivery Selection Report. Steps 1 to 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., schedule constraint calculations, delivery code research, etc.) should be added as appendices. A report outline is offered below. • Project Delivery Decision Report Outline o Executive Summary o Project Description o Project Goals o Delivery Methods Considered o Advantages and Disadvantages o Delivery Method Decision o Appendices Conclusions The Tier 1 Analytical Delivery Decision Approach provides transit agencies 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, choose that delivery method and document the decision through a Project Delivery Decision Report. If at the end of this stage, a dominant choice does not appear, the agency should document the results and move to the Tier 2 selection process for a more detailed analysis of the remaining delivery methods.