If you are a land owner preparing to launch a new construction project, you need to evaluate several factors regarding conventional structures and Houston metal buildings. These include budgetary restrictions, the size and kind of project, the building’s design, your schedule, local market considerations and how involved you want to be on a daily basis. You must also consider legislative and regulatory requirements and how familiar you are with the construction process and in-house management capabilities before you can make a sound decision on the method of project delivery.
Common Types of Construction Project Delivery Methods
There are four main project delivery methods, including design bid build, design build, construction management and construction management at risk. Each delivery system has its own advantages.
- The design-bid-build delivery method is most common across the United States. The risk is minimized due to the owner’s complete control throughout the project. It usually has three phases, including the design phase, the bid phase and the construction phase. It differs from other delivery methods because the project owner holds separate design and construction contracts. A Houston concrete contractor or Houston foundation contractor is selected based on the lowest total construction cost. Most owners prefer this method because they believe that it will generate the most competitive pricing, which is not always true. The cost of construction depends on how many bids have been placed and the market prices on the day of the bids. The project’s design is completed before the bidding process begins. The contractor is selected with the input of the design professionals.
- The design-build delivery method combines the architectural and engineering design services in one contract with the construction services. The owner chooses the design-build team based on their experience, their combined teams and their track-record. The advantage to this method is that it offers a “one-shop” option for the design and construction phases. Other obvious advantages of using a design-build contractor are better cost management, a single focus of responsibility for the design and construction phases, faster project completion, owner-generated change orders and the involvement of the owner from beginning to end.
- Sometimes, an owner will hire a construction management company because the project is very large and the owner does not have the in-house experience or the time to tend to the project. This differs from other delivery methods in that the owner has several contracts with different companies that each have the responsibility for a single aspect of the construction project. The owner usually relies on a construction manager for hiring and managing the contract with the design team and general contractor. The construction manager’s ability to oversee the process and act on behalf of the owner determines the project’s delivery time.
- Owners can also choose a construction company based on the management-at-risk delivery method. In this case, the construction manager guarantees the cost of the project by quoting a Guaranteed Maximum Price or GMP. Under this method, the construction manager considers the best interests of the owner for managing and controlling construction costs so that they do not exceed the GMP. With construction management at risk, the construction manager acts as the owner’s consultant during both the pre-construction and construction phases of the project. This is popular with owners since they have lower cost risks throughout the project’s duration, and they can maintain input as the project progresses.
The success of the project is the result of selecting the best project delivery method and a general contractor who is a good fit for the project. Most construction companies have experience in all of these delivery methods, and other companies specialize in only one.