A definitive guide to project delivery

The project delivery method, also known as the construction delivery method, defines how key players in a building project—owners, architects, contractors, and others—are organized. It determines the hierarchy of responsibilities, outlines who carries risks, and specifies when each party becomes involved.

Since every project is unique, the way it’s executed should align with its specific needs. The choice of delivery method shapes the entire project’s success, making it one of the most crucial decisions in the planning phase.

Overview of Common Delivery Methods

There are five primary project delivery methods, though variations exist for each. Typically, the project owner decides which method to use. However, as a professional, you can suggest alternatives if you believe a different approach would better suit the project. Communicate how your recommendation aligns with the owner’s goals to position yourself as a valuable partner.

The five key methods include:

1. Design-Bid-Build (Traditional Approach)
2. Design-Build
3. Construction Management at Risk (CM at Risk)
4. Multi-Prime Contracting
5. Integrated Project Delivery (IPD)

Before diving into these methods, it’s essential to understand the distinction between two key roles: agents and vendors.

Agents vs. Vendors: Defining Responsibilities

Agents (Consultants)

An agent—such as an architect, engineer, or construction manager—works in the owner’s best interest. They provide professional services, including advice and oversight, to ensure the owner’s goals are met throughout the project.

Vendors

In contrast, a vendor delivers a specific product or service for an agreed price. Once they fulfill their contract—whether it’s constructing a building or installing equipment—their role ends. Vendors follow instructions rather than guiding the project’s direction.

In some projects, professionals like architects may switch between being agents and vendors, depending on the delivery method. Understanding these roles helps owners choose the most suitable method and clarify responsibilities from the start.

Public Sector Considerations

For public sector projects, U.S. law mandates a competitive bidding process. This requirement can limit which delivery methods are feasible. If you’re working on a government-funded project, ensure your proposal includes a bidding phase to comply with regulations.

1. Design-Bid-Build: The Traditional Model

How It Works

Design-Bid-Build is the most widely used delivery method. It involves three sequential phases: design, bidding, and construction. The owner first contracts with an architect to create the design. Once the design is complete, contractors bid on the project. The selected contractor then builds the project under a separate contract with the owner.

Pros and Cons

• Advantages: This method is well-established and easy to understand. Costs are predictable, as the design is finalized before construction begins.
• Disadvantages: The process can be time-consuming, as design and construction cannot overlap. Collaboration between architects and contractors is limited during the design phase, potentially leading to costly changes later.

Best Use Cases

This method is ideal for straightforward projects with limited budgets and flexible schedules. Its predictability makes it the go-to choice for many projects.

2. Design-Build: A Collaborative Approach

How It Works

In the Design-Build model, a single entity handles both design and construction, streamlining the process. This could be a single firm or a partnership between an architect and a construction company. Contracts are consolidated, simplifying communication and project management.

Pros and Cons

• Advantages: Faster timelines, reduced costs from fewer change orders, and seamless collaboration between design and construction teams.
• Disadvantages: Owners have less oversight during construction and may need to hire third-party representatives, which can offset some benefits.

Best Use Cases

This method works well for projects with tight schedules or where early coordination between design and construction is critical. Trust between team members is essential for success.

3. Construction Management at Risk: Sharing Responsibilities

How It Works

With CM at Risk, the owner hires a Construction Manager (CM) who acts as an agent during design and a vendor during construction. The CM assumes responsibility for the project’s budget and timeline, reducing the owner’s risk.

Pros and Cons

• Advantages: Early contractor involvement improves design efficiency, minimizing costly changes later.
• Disadvantages: Adding another decision-maker can lead to disagreements and delays.

Best Use Cases

CM at Risk is ideal for projects where guaranteed completion dates and fixed budgets are critical. However, owners must ensure the design is complete and accurate.

4. Multi-Prime Contracting: Full Owner Control

How It Works

In this method, the owner serves as the general contractor, managing separate contracts with the architect, contractors, and subcontractors. Each contractor is a “prime,” working directly with the owner.

Pros and Cons

• Advantages: Maximum control for the owner and direct oversight of contractors.
• Disadvantages: Increased complexity, with higher risks of mismanagement and cost overruns.

Best Use Cases

This method is suitable for experienced owners who want full control. It’s also often required for public projects that demand maximum owner involvement.

5. Integrated Project Delivery (IPD): Collaborative Innovation

How It Works

IPD involves the owner, architect, and contractor signing a joint contract and collaborating from the start. All parties share risks and responsibilities, fostering a highly coordinated process.

Pros and Cons

• Advantages: Early collaboration reduces delays and improves efficiency. Owners remain involved throughout the project.
• Disadvantages: As a newer method, it lacks widespread familiarity. Trust is critical, as poor partnerships can lead to delays.

Best Use Cases

IPD works well for complex, undefined projects requiring tight collaboration. It’s limited to private projects due to the lack of competitive bidding.

Choosing the Right Delivery Method

Selecting the best delivery method is a strategic decision that sets the tone for the entire project. To make the right choice, consider these questions:

• What are the project’s goals, constraints, and budget?
• Who will oversee the project, and do they have relevant experience?
• How important is collaboration between design and construction teams?
• Are there regulatory or site-specific challenges to address?

By understanding the nuances of each delivery method and aligning them with the project’s unique needs, you can ensure a smoother, more successful process. Whether you’re an owner or a professional advisor, the right delivery method is your first step toward achieving project excellence.