Evaluation of Project Delivery Methods (2009)

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TABLE OF CONTENTS LIST OF FIGURES ....................................................................................................................... vi LIST OF TABLES........................................................................................................................ vii AUTHOR ACKNOWLEDGMENTS............................................................................................ ix EXECUTIVE SUMMARY ............................................................................................................ 1 CHAPTER 1 - OVERVIEW........................................................................................................... 3 Introduction................................................................................................................................. 3 Research Plan and the Work Accomplished ................................................................................... 3 Organization of the Report .......................................................................................................... 9 CHAPTER 2 – BACKGROUND AND DEFINITIONS.............................................................. 10 Distinguishing Characteristics of Transit Projects....................................................................... 10 Evolution of Current Alternative Delivery Methods in Transit Projects .......................................... 11 Definitions of the Delivery Methods ........................................................................................... 12 Statutory Authorization of Delivery Methods in Various States.................................................. 19 Existing Selection Approaches of Project Delivery Methods ...................................................... 19 Timing of Project Delivery Method Selection............................................................................. 21 CHAPTER 3 – CASE STUDY PROJECTS................................................................................. 23 Background................................................................................................................................ 23 Case Study Collection Methodology ........................................................................................... 24 Case Study Matrix ...................................................................................................................... 25 Case 1 — TREX ........................................................................................................................ 27 Case 2 — Weber County Commuter Rail ................................................................................... 32 Case 3 — University Line........................................................................................................... 37 Case 4 — Medical Center Extension .......................................................................................... 41 Case 5 — Greenbush Commuter Rail ........................................................................................ 46 Case 6 — Hudson Bergen Light Rail.......................................................................................... 51 Case 7 — Silver Line Project...................................................................................................... 56 Case 8 — Portland Mall Light Rail ............................................................................................. 61 Case 9 — I-205 Light Rail Extension ......................................................................................... 66 CHAPTER 4 – FINDINGS AND LESSONS LEARNED........................................................... 71 Introduction............................................................................................................................... 71 Project Identification Data ......................................................................................................... 71 Project Scope Data..................................................................................................................... 71 Project Financial and Schedule Data .......................................................................................... 71 Project Delivery Method Decision Rationale .............................................................................. 73 Project Issue Data ...................................................................................................................... 75 Project Risk Analysis Process Data............................................................................................. 77 Project Procurement Process Data ............................................................................................. 78 Project Quality Management Data.............................................................................................. 82

MAJOR FINDINGS ................................................................................................................. 82 LESSONS LEARNED.............................................................................................................. 83 RECOMMENDATION FOR IMPLEMENTATION ............................................................. 83 CHAPTER 5 – ADVANTAGES/DISADVANTAGES OF EACH DELIVERY METHOD...... 85 Introduction............................................................................................................................... 85 Purpose...................................................................................................................................... 85 Project-Level Issues ................................................................................................................... 85 Agency-Level Issues ................................................................................................................... 91 Public Policy/Regulatory Issues ................................................................................................. 97 Life-Cycle Issues ...................................................................................................................... 101 Other Issues............................................................................................................................. 104 Conclusion ............................................................................................................................... 106 CHAPTER 6 – TIER 1 – ANALYTICAL DELIVERY DECISION APPROACH................... 107 Introduction............................................................................................................................. 107 Step 1. Create Project Description............................................................................................ 109 Step 2. Define Project Goals .................................................................................................... 111 Step 3. Review Go/No-Go Decision Points ............................................................................ 114 Step 4. Review Project Delivery Method Advantages and Disadvantages ................................. 117 Step 5. Choose the Most Appropriate Project Delivery Method ............................................... 146 Step 6. Document Results ........................................................................................................ 149 Conclusions ............................................................................................................................. 149 CHAPTER 7 – TIER 2 – WEIGHTED-MATRIX DELIVERY DECISION APPROACH ...... 150 Introduction............................................................................................................................. 150 Step 1. Define Selection Factors............................................................................................... 152 Step 2. Weight Selection Factors .............................................................................................. 154 Step 3. Score Project Delivery Methods ................................................................................... 155 Step 4. Choose the Most Appropriate Project Delivery Method ............................................... 159 Step 5. Document Results ........................................................................................................ 159 Conclusions ............................................................................................................................. 160 CHAPTER 8 – TIER 3 – RISK-BASED APPROACH.............................................................. 161 Introduction............................................................................................................................. 161 Qualitative Approach ............................................................................................................... 163 Quantitative Approach ............................................................................................................. 165 Summary .................................................................................................................................. 168 CHAPTER 9 – EVALUATION OF PROJECT DELIVERY METHOD DECISION TOOL... 169 Final Validation of PDM Multi-Tier Decision Tool.................................................................. 170 CHAPTER 10 – SUMMARY..................................................................................................... 173 APPENDIX A - REFERENCES ................................................................................................ 175 APPENDIX B – ANNOTATED BIBLIOGRAPHY.................................................................. 181 APPENDIX C – LEGALITY OF ALTERNATIVE DELIVERY METHODS ......................... 198 APPENDIX D – INTERVIEW BLANK FORM........................................................................ 207 APPENDIX E – PROJECT DELIVERY METHOD SELECTION SYSTEM ASSESSMENT QUESTIONNAIRE .................................................................................................................... 230

LIST OF FIGURES Figure 1-1 - Overview of the Research Plan................................................................................... 4 Figure 2-1 - Design-Bid-Build...................................................................................................... 14 Figure 2-2 - Construction Manager-at-Risk.................................................................................. 16 Figure 2-3 - Design-Build............................................................................................................. 18 Figure 6-1 - Tier 1 Selection Process Overview......................................................................... 108 Figure 6-2 - Project Description Example .................................................................................. 111 Figure 6-3 - Go/No-Go Decision Points ..................................................................................... 115 Figure 7-1 - Tier 2 Selection Process Overview......................................................................... 151 Figure 7-2 - Tier 2 Selection Factor Development ..................................................................... 153 Figure 7-3 – Example Listing of Selection Factors .................................................................... 154 Figure 7-4 - Example of Weighted Ranking for Selection Factors ............................................ 155 Figure 7-5 - Example of Weighted Ranking for Project Goals and Critical Issues.................... 159 Figure 8-1 - Overview of the Risk-based Qualitative and Quantitative Approaches ................. 162 Figure 8-2 - Distribution of Project Costs................................................................................... 162 Figure 8-4 - Risk Analysis Outcome as an Input to PDM Selection .......................................... 165 Figure 8-5 - Overview of the Quantitative Approach................................................................. 167 Figure 9-1 - Project Delivery Decision Tool Final Internal and External Validation Flow Chart ..................................................................................................................................................... 170

LIST OF TABLES Table 1-1 - Transit Projects Interviewed ........................................................................................ 5 Table 1-2 - Pertinent Issue Critique Matrix .................................................................................... 6 Table 2-1 – The Timing of PDM Selection .................................................................................. 22 Table 3-1 - Summary of Case Study Projects............................................................................... 24 Table 3-2 - Case Study Project Issues........................................................................................... 28 Table 3-3 - Procurement Phase Summary .................................................................................... 29 Table 3-4 - Design Phase Summary.............................................................................................. 30 Table 3-5 - Construction Phase Summary .................................................................................... 30 Table 3-6 - Case Study Project Issues........................................................................................... 33 Table 3-7 - Procurement Phase Summary .................................................................................... 34 Table 3-8 - Design Phase Summary.............................................................................................. 35 Table 3-9 - Construction Phase Summary .................................................................................... 35 Table 3-10 - Case Study Project Issues......................................................................................... 38 Table 3-11 - Procurement Phase Summary .................................................................................. 39 Table 3-12 - Design Phase Summary............................................................................................ 39 Table 3-13 - Construction Phase Summary .................................................................................. 40 Table 3-14 - Case Study Project Issues......................................................................................... 42 Table 3-15 - Procurement Phase Summary .................................................................................. 43 Table 3-16 - Design Phase Summary............................................................................................ 44 Table 3-17 - Construction Phase Summary .................................................................................. 44 Table 3-18 - Case Study Project Issues......................................................................................... 48 Table 3-19 - Procurement Phase Summary .................................................................................. 49 Table 3-20 - Design Phase Summary............................................................................................ 49 Table 3-21 - Construction Phase Summary .................................................................................. 49 Table 3-22 - Case Study Project Issues......................................................................................... 52 Table 3-23 - Procurement Phase Summary .................................................................................. 54 Table 3-24 - Design Phase Summary............................................................................................ 54 Table 3-25 - Construction Phase Summary .................................................................................. 55 Table 3-26 - Case Study Project Issues......................................................................................... 57 Table 3-27 - Procurement Phase Summary .................................................................................. 58 Table 3-28 - Design Phase Summary............................................................................................ 59 Table 3-29 - Construction Phase Summary .................................................................................. 59 Table 3-30 - Case Study Project Issues......................................................................................... 62 Table 3-31 - Procurement Phase Summary .................................................................................. 63 Table 3-32 - Design Phase Summary............................................................................................ 64 Table 3-33 - Construction Phase Summary .................................................................................. 64 Table 3-34 - Case Study Project Issues......................................................................................... 67 Table 3-35 - Procurement Phase Summary .................................................................................. 68 Table 3-36 - Design Phase Summary............................................................................................ 69 Table 3-37 - Construction Phase Summary .................................................................................. 69 Table 4-1 - Procurement Phase Solicitation Document Content .................................................. 78 Table 4-2 - Procurement Phase Proposal Information.................................................................. 78 Table 4-3 - Design Phase Responsibilities.................................................................................... 79 Table 4-4 - Construction Phase Responsibilities .......................................................................... 80

Table 6-1 - Examples of Generic Project Goals ......................................................................... 112 Table 6-2 - Examples of Project Goals ....................................................................................... 113 Table 6-3 - Go/No-Go Issue Summary....................................................................................... 114 Table 6-4 - Go/No-Go Summary Form ...................................................................................... 117 Table 6-5 - Project Size Advantages/Disadvantage Summary ................................................... 119 Table 6-6 - Cost Advantages/Disadvantage Summary ............................................................... 121 Table 6-7 - Schedule Advantages/Disadvantage Summary........................................................ 122 Table 6-8 - Risk Management Advantages/Disadvantages Summary........................................ 123 Table 6-9 - Risk Allocation Advantages/Disadvantages Summary............................................ 124 Table 6-10 - LEED Certification Advantages/Disadvantages Summary ................................... 125 Table 6-11 - Agency Experience Advantages/Disadvantages Summary ................................... 127 Table 6-12 - Staff Required Advantages/Disadvantages Summary ........................................... 128 Table 6-13 - Staff Capability Advantages/Disadvantages Summary ......................................... 129 Table 6-14 - Agency Goals and Objectives Advantages/Disadvantages Summary ................... 130 Table 6-15 - Agency Control of Project Advantages/Disadvantages Summary......................... 131 Table 6-16 - Third Party Agreement Advantages/Disadvantages Summary.............................. 133 Table 6-17 - Competition Advantages/ Disadvantages Summary.............................................. 134 Table 6-18 - DBE Impacts Advantages/Disadvantages Summary ............................................. 135 Table 6-19 - Labor Unions Advantages/Disadvantages Summary............................................. 136 Table 6-20 - Fed/State/Local Laws Advantages/ Disadvantages Summary............................... 137 Table 6-21 - FTA/EPA Regulations Advantages/Disadvantages Summary............................... 138 Table 6-22 - Stakeholder/Community Input Advantages/Disadvantages Summary .................. 139 Table 6-23 - Life-Cycle Costs Advantages/Disadvantages Summary........................................ 140 Table 6-24 - Maintainability Advantages/Disadvantages Summary .......................................... 141 Table 6-25 - Sustainable Design Goals Advantages/Disadvantages Summary.......................... 143 Table 6-26 - Sustainable Construction Goals Advantages/Disadvantages Summary ................ 144 Table 6-27 - Construction Claims Advantages/Disadvantages Summary.................................. 145 Table 6-28 - Adversarial Relationship Advantages/Disadvantages Summary ........................... 146 Table 6-29 - Project Delivery Method Advantage/Disadvantage Summary .............................. 148 Table 7-1 - Project Delivery Scoring Scale (adapted from Saaty 1990)..................................... 156 Table 7-2 - Weighted-Matrix Template...................................................................................... 157 Table 8-1 - Example of Risk Allocation Matrix ......................................................................... 164