Project Delivery Methods: Worked Decisions

All costs, schedules, assumptions, and bid comparisons are illustrative classroom inputs, not Philippine award rules. Check the actual contract and procurement authority before applying a recommendation.

Roles, scope and interfaces

Identify the contracting interface under DBB

A private clinic signs a design services contract with an engineer and a separate construction contract with a builder. A site detail conflicts with the issued drawing. Identify the first contractual interface to resolve.

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Identify the accountable delivery party under design–build

A privately financed logistics warehouse is procured under one integrated design–build contract. The design-builder's consultant draws a drainage slope inconsistent with the employer's requirements. Who receives the owner's contractual correction notice?

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Choose EPC for equipment and performance interfaces

A private company needs a process facility with civil works, pumps, control equipment, testing and commissioning. Compare a separate civil contractor plus five equipment vendors against an integrated EPC arrangement.

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Agency CM versus CM-at-risk responsibility

A school owner hires a CM consultant for ₱1.5 million to coordinate four owner-held trade contracts. An electrical trade package exceeds its budget by ₱600,000. Does the CM's advisory fee constitute a guaranteed construction price?

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Commercial comparisons and scheduling

Distinguish tender price from final outturn cost

For a private DBB project, Tender A is ₱240 million with authorized changes later totaling ₱18 million; Tender B, for a directly comparable hypothetical scope, is ₱252 million with ₱3 million in changes. Which has the lower final expenditure?

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Compute an illustrative design–construction overlap

A project has 9 months of design, 2 months of procurement and 16 months of construction under sequential DBB. Under a hypothetical integrated DB arrangement, construction starts 6 months after design begins and takes 16 months from that start. Compare calendar durations, ignoring holidays and permitting delays.

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Interpret a CM-at-risk guaranteed maximum price

A private owner negotiates a ₱90 million GMP that expressly includes ₱3 million contractor contingency. A later owner-approved scope addition is valued at ₱5 million and, by the signed change mechanism, increases the GMP. What is the adjusted limit for covered work?

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Compare whole-life operating costs

Two compliant private-project alternatives have initial prices of ₱120 million and ₱132 million. Over an assumed ten-year period, estimated O&M costs are ₱4.0 million/year and ₱2.0 million/year, respectively. Ignore discounting solely for this screening exercise.

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Public-sector legal screening

Screen an ordinary publicly funded classroom project

An LGU plans a classroom with government funds and no long-term private operation, finance or concession arrangement. A bidder calls its integrated tender a “PPP” because it provides both design and construction.

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Screen a legacy BOT proposal across the PPP Code transition

A government implementing agency's hypothetical privately financed toll-road proposal was approved before 23 December 2023 but competitive procurement had not begun by that date. May the reviewer simply apply the old BOT law to everything?

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Test the revenue sensitivity of a concession scenario

For an illustrative PPP concept, annual user-charge revenue is projected at ₱130 million and annual O&M plus financing cash requirements at ₱105 million. A downside demand case lowers revenue by 25%, while expenses remain unchanged. Compute the annual difference; do not infer legal concession eligibility from it.

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