Common Project Delivery Methods
Exploring Different Methods
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Key Takeaways
- Design-Bid-Build (DBB): Traditional, sequential, owner bears design risk.
- Design-Build (DB): Fast-tracking, single point of responsibility.
- CMAR: Early contractor involvement, Guaranteed Maximum Price (GMP).
Public-Private Partnerships (PPP)
Example
Real World Application: NLEX and SLEX
Many of the major expressways in the Philippines, such as the North Luzon Expressway (NLEX) and South Luzon Expressway (SLEX), operate under a Build-Operate-Transfer (BOT) or similar PPP arrangement. A private consortium finances and builds the expansion or rehabilitation of the road. In return, the government grants them a concession to operate the tollway and collect fees from motorists for a set number of decades (e.g., 30 years) to recover their investment and make a profit. Once the concession period expires, the ownership and operation of the expressway revert to the Philippine government.
Interactive Delivery Method Simulator
Delivery Method Explorer
Compare risk, time, and flow.
Design-Bid-Build (DBB)
The traditional linear approach with separate contracts for design and construction.
Project Flow
Design
Architect/Engineer
Bid
Contractors
Build
General Contractor
Pros
- Clear scope before bidding
- Owner has high control over design
- Transparent competitive pricing
Cons
- Longer overall schedule (sequential)
- Adversarial relationship potential
- Owner bears risk for design errors
Performance Profile
Speed of Delivery40%
Cost Certainty (Early)70%
Owner Control90%
Design-Bid-Build (DBB) Analysis
Example
Scenario: When DBB Fails
An owner wants a high-tech manufacturing facility built as fast as possible to beat a competitor to market. The owner chooses the traditional Design-Bid-Build method.
Application: This is a poor choice. DBB requires the design to be 100% complete before bidding begins, making it the slowest delivery method overall. A fast-track method like Design-Build or Construction Management at Risk would be much more appropriate to meet the tight schedule.
Construction Management (CM) Analysis
Example
Scenario: The Agency CM
A public school district wants to build three new schools simultaneously. They lack in-house construction expertise. They hire a Construction Manager as an Agent (CMa) for a fixed fee to oversee the design and coordinate multiple prime contractors.
Application: This is an excellent use of Agency CM. The CMa acts as an extension of the owner's staff, providing expertise without taking on the financial risk of construction, allowing the owner to maintain control over multiple prime contracts.