How to decide whether or not t o accept a project

How to decide on the type of project delivery method to use

How to implement each of the possible project delivery methods

How to determine what types of practice methodologies will best meet the needs of the client and the selected project delivery method

The firm's current workload

How well the project matches the type of work the firm is qualified to do or wants to do

The feasibility of the project

If the client's budget is sufficient enough to cover construction and professional fees

The reliability and reputation of the client

The client's project management team

If the client has a history of litigation with professionals, consultants, & contractors

If the client wants to use a nonstandard contract

If the client is using bidding as a method of selecting design professionals

If the client has made unreasonable requests or shown unreasonably high expectations

Firm's current workload

How well the project matches the type of work the firm is qualified to do or wants to do

The feasibility of the project

If the client's budget is sufficient to cover construction and professional fees

The reliability & reputation of the client

If the client wants to use a nonstandard contract

If the client is using bidding as a method of selecting design professionals

If the client has a history of litigation with professionals, consultants, & contractors

If the client makes unreasonable requests or shown unreasonable high expectations

The architect may decide to accept a lower profit margin on the project, because it will give the firm experience in a project type that the architect wants to pursue

The architect may negotiate with the client to reduce the scope of the project, the scope of services or both

Decline the request

Accept the project but tell the client to increase their budget

The client's ability to fund the project

The client's history with building projects

The client's history working with design professionals

The client's project management team

The location of the client

Research via internet

Reviewing trade journal indexes in the client's line of business

Doing a credit check

Contacting other professionals who have worked with the client

Talking with the client's business associates, vendors, & customers

Requesting the client to fill out a survey

Looking at employee & customer reviews online

The client wants to use a nonstandard contract

The client has a history of litigation with design professionals

The client's budget will not cover construction or professional fees and he or she is not open to negotiation

The client is using bidding as a method of selecting design professionals

The client has unreasonably high expectations

Complete a client background check

Determine the Scope of Work

Determine Fees Required

Check the client's credit

Develop a preliminary design

Develop a construction schedule

Do a charette

Have a visioning session

Determine whether any formal or informal agreement currently exists between the owner and the other design professional

Reject the request from the owner unless the agreement with the other architect or design professional has been dissolved

None, no precautions are needed prior to accepting the project

Create a joint-venture with the other architect or design professional

The entire sequence of events that is needed to provide an owner with a completed building

The selection of people who will design & construct the project

The establishment of contractual relationships

Some method of organizing contractors to perform the work

Project proposals in response to a client's RFP

Cost

Schedule

Project Scope

Building Quality

Risk

Project Location

Different delivery methods will demand different levels of design & detailing effort from the architect

Different delivery methods will determine the extent of the architect's involvement in the project beyond the design phase

Different delivery methods will determine the construction budget

Different delivery methods will determine the feasibility of the project

The contractor is put in a role of adversary to the owner & architect

To achieve a low bid to win the project, the contractor will underestimate the requirements of the project or base the bid on low-quality materials & labor & then make up costs with change orders

The contract may take advantage of discrepancies or ambiguities in the construction documents to force change orders that could be considered errors or omissions & may be charged to the architect

Fraught with risks for both the owner & the architect

Multiple prime contracts

Construction Manager as Constructor

Permit Expediter

Construction Manager as Advisor

Design-Bid-Build

Design-Build

Integrated Project Delivery

Multiple Prime

Fast-Track Project Delivery

Construction Manage who organizes multiple contracts

Any of the project delivery methods may be employed using a cost-plus-fixed-fee price from the contractor with or without a GMP

Design-Bid-Build

Integrated Project Delivery

Construction-Manager-as-Constructor

Design-Bid-Build

Construction-Manager-as-Constructor

Integrated Project Delivery

Help the owner select the best delivery method for the project

Refer to advice of someone with construction expertise, as in using a Design-Build Team

Refer to advice of someone with construction expertise, as in hiring a Construction Manager (as either advisor or constructor)

Refer to advice of someone with construction expertise, as in creating an Integrated Project Delivery arrangement

Use the Design-Bid-Build project delivery method

Design-Bid-Build (DBB)

Construction Manager as Adviser (CMa)

Construction Manager as Constructor (CMc)

Design-Build (DB)

Design-Assist Contracting

Integrated Project Delivery (IPD)

Single Prime

Multiple Prime

Fast Track Delivery Method

Simple & straightforward roles that are well defined

Contractual relationships are straightforward

The owner can be quoted a fixed price before proceeding with construction

Proceeds in a linear fashion from selection of the architect to final build-out

Coordination problems are minimized

The design phase must be completely finished before the construction phase proceeds

The design phase must be completely finished before the construction phase proceeds

If not selected by negotiation, the contractor is often put in an adversarial relationships between the architect & the contractor

The final cost of the project may result in being greater than the lowest bid in the contractor bidding process due to change orders

The owner can be quoted a fixed price before proceeding with construction

Acts as the owner's agent without any financial interest in the project

Advises on the constructability of the design as it is developed

Provides early cost estimating & value analysis

Completes project scheduling

Assists with contract negotiations

Manages multiple construction contracts & fast track construction

Makes early material purchases

In some cases, gives a guaranteed price & completion date

The CM is hired before the design work is finished

Simple management structure

The CM is hired before the design work is finished so there is no competitive bidding on the cost of building the project, which may mean higher costs for the owner

More complicated management structure

Hired by the owner, outside of the architect's contract

Acts as the owner's agent without any financial interest in the project

Fixed-Price Method (aka Stipulated Sum or Lump Sum Method)

Cost-Plus-Fee method with a Guaranteed Maximum Price (GMP)

Cost-Plus-Fee method without a GMP

Unit costs

Percentage of construction costs

Stipulated Sum Method

Lump Sum Method

The contractor gives the owner a set price for completing the project

The owner knows the final cost before construction begins & is not responsible for cost over runs

The owner does not share any savings the contractor may realize

Encourages the contractor to be efficient

Is a common method for establishing the total fee when the CM acts as an Adviser

The owner and contractor share any savings

The owner knows the final cost before construction begins but is responsible for any cost over runs that may occur

The owner pays the actual cost of construction (direct plus indirect costs) plus a fee that is agreed on before construction beings & the CM guarantees a maximum price

If the project is completed for less than this amount the client receives the cost savings

If the project is completed for less than this amount only the contractor receives the cost savings

Is a common method for establishing total construction fees when the CM acts as an Adviser

The construction process can begin before the design process is completed

The architectural & engineering documents are issued in stages called Bid Packages

Requires many prime contracts & a great deal of coordination

Can reduce not only the time but also the cost of a project substaintially

Can be used with any project delivery method

Most commonly used when a CM is involved

The design process must be completed before construction can begin

Can reduce the time of a project but not the cost

Joint Construction Administration Services in regards to visiting the site

Certifying applications for payment

Rejecting work

Reviewing Submittals

Investigating concealed & unknown conditions

Determining dates of substantial completion & final completion, as well sa issuing certificates of substantial completion

Deciding patters of performance

Reviewing requests for information from the contractor

Scheduling & coordinating the activities of the contractor & other multiple prime contractors

Preparing change orders & construction change directives

Scheduling & Coordinating the activities of the contractor & other multiple prime contractors

Facilitating communication between the owner & contractor

Preparing change orders & construction change directives

Certifying applications for payment

Reviewing submittals

Rejecting work

Investigating concealed & unknown conditions

Determining dates of substantial completion & final completion & issuing certificates of substantial completion

Deciding matters of performance

Reviewing request for information from the contractor

The architect must advise & consult with both the owner & CM

The architect must report to both the client & the CM any known deviations from the contract documents & the most recent construction schedule as well as any observed defects & deficiencies in the work

The architect's decisions on matters relating to aesthetic effect are final if consistent with the intent n the contract documents

Schedules and coordinates the activities of the contractor & other multiple prime contractors

Facilitates communication between the owner & contractor

Prepares change orders & construction change directives

Provide advice to the owner on constructability of the design

Cost estimating value analysis

Scheduling Contract Negotiations

Early Material Purchasing

Reviewing submittals

reviewing requests for information from the contractor

Advise the architect on the cost implications of the architect's work as drawings are finalized

Cost of the work Plus Fee with a GMP (aka CM@Risk)

Cost of the work Plus Fee without a GMP

Stipulated Sum

Lump Sum

Cost estimates & GMP are based on partially completed documents, typically after the design development phase is complete

A GMP is established before all details, specifications, & drawings are complete

The owner & the CMc can monitor cost through periodic review of the original estimate as the project proceeds and the fee to the construction manager can be adjusted accordingly if the scope of work changes

The CMc can also advise the architect on the cost implications of the architect's work as drawings are finalized

The owner & CMc can monitor cost through periodic review of the original estimate as the project proceeds, & the fee to the construction manager can be adjusted accordingly if the scope of work changes

The CMc can advise the architect on the cost implications of the architect's work as drawings are finalized

The client collects savings if a project is completed under budget

The Owner Accepts the CMc's GMP

The Owner approves the CMc's control estimate

The Owner issues a notice to proceed to the CMc

The CMc signs a contract with the architect

= (CM's estimate of the cost of work) + (The CM's fee)

Establishes the expected date of substantial completion

Includes a list of drawings & specifications as well as other items used by the CMc in the preparation of the control estimate

Establishes the expected date of final completetion

= (CM's estimate of the cost of work) / (The CM's fee) x 100

Typically the design-build entity is led by a construction contractor, while an independent architect & engineer act as consultants

The architect & engineer would have agreements with the contractor, not with the owner in a contractor led design-build

A design manager from the construction contractor led design-build entity, works with the consulting architect to coordinate the efforts of the 2 firms

The architect & engineer would have agreements with the owner, not with the contractor in a contractor led design-build

The design & construction firms are under one contract so there is a single source of responsibility & all the parties work together to give the owner the best value

A skilled constructor gives advice early in the design stages of the project when time & cost-saving measures can be implemented

The owner receives a fixed price early in the process; this price is generally lower than with other project delivery methods

The total time of design & construction is usually less than it would be with more traditional approaches

It is an integrated process: overlapping design & construction - typically fast tracked

Cost efficiencies can be achieved since the contractor & designer are working together through the entire process

This method is widely applicable, well understood, & has well-established & clearly defined roles for the parties involved

The absence of construction input into the project design may limit the effectiveness & construct ability of the design

Cost efficiencies

Fewer changes, fewer claims, & less litigation

Earlier knowledge of firm costs

Change orders are typically limited to owner changes

Ability to reduce project claims

The roles & responsibilities are clearly defined

The client has less control of design & construction than with other project delivery methods. There may be disagreements about what should have been included in the design

The client must be experienced with building projects & familiar with the procedures in order to develop a set of performance requirements that will act as a program for the designers & constructors. Must be able to define & state their needs clearly & precisely

The design-build entity has control over the quality of the materials & construction methods used, & may substitute lower-quality or less expensive materials or finishes to stay within the project budget

Construction cannot begin until after all drawings are completed

Since the roles are not as clearly defined, it is riddled with risk & liabilities

Contracted Sum

Lump Sum

GMP

Target Cost

Cost-plus-fee with or without GMP

Unit Price

Percentage of construction

Stipulated Sum

Can be used for small or large projects

Can be used for private works

Can be used for public works

Can be used for public works but local or state laws & regulations may limit or otherwise control how a public project is completed

The owner must be educated in the unique aspects of the design-build method or have experience working with the method

The owner's project criteria must be clearly & completely stated and must include building program, objectives for cost, time & design excellence, performance specifications, sustainable criteria, & other project specific requirements

Key contractors such as the structural & mechanical engineers should be selected early and should be involved in the design process

The contract must allow for adjustments in cost & time as the project proceeds, even when a GMP contract is used based on the owner's original criteria

The contract must provide for a method of dispute resolution to solve problems quickly

Forms of communication that allow for close working relationships between the parties should be established

There must be trust among the parties & willingness to work together

It is best if the owner hires a consultant to analyze project needs & develop a building program & statement of performance requirements as well as a request for proposal

Competitive bidding should be used to solicit pricing for many parts of the project even though it would delay key contractor selection

The contract must allow for adjustments in cost & time as the project proceeds, unless a GMP contract is used based on the owner's original criteria

Building program

Objectives for cost & time

Objectives for design excellence & performance specifications

Sustainable Criteria

Any other project specific requirements

Client's insurance coverage

Code requirements specific to the project location

Proposal & cost analysis

Proposal

Analyze Costs

Design the building

Project specific requirements

Sustainable criteria

Performance specifications

Objectives for cost, time, & design execellence

Building program

Analyze project specific requirements / needs

Develop a building program

Statement of performance requirements

Develop & Issue a request for proposal (RFP)

Evaluating, interviewing, & selecting a design-build entity

Building Design

Cost analysis

Reviewing & approving submittals

Approving changes submitted by the design-builder

Visiting the site

Rejecting nonconforming work

Consultant coordination

Must certify substantial completion

Reviewing & approving submittals

Approving changes submitted by the design-builder

Visiting the site

Rejecting nonconforming work

Normal design administration services

Design Scheduling

Consultant coordination

Design presentations

Assistance with submissions to governmental authorities

Evaluation of the client's project criteria

Normal design of the project based on the owner's project criteria

Providing construction documents including specifications

Leading the design-build entity

Providing the project criteria including the project program

The type of agreement used between the architect and contractor

The guaranteed maximum price

Rejection of nonconforming work

Adequate design staff

Communication and coordination of documentation with the contractor's staff

Certificate of substantial completion

A variation of the design-build approach

Based on the idea that the Design-Build firm is in the best position to work with manufacturers, subcontractors, & other suppliers to determine the best way to construct the project at the lowest possible cost while meeting the requirements of the owner

Combines an important advantage of design-build (someone to represent the owner's interests throughout the process) with the advantages of competitive bidding, a fixed cost, & a single source responsibility for construction

The architect designs the project & prepares the construction drawings & specifications. These documents are used as the basis for pricing the project & awarding a construction contract, either through competitive bidding or through negotiation with one contractor

The traditional method of project delivery in which one of the contractors on the project is awarded the contract

Documents developed by the criteria architect as pm / adviser are used by the owner to make the project available for bidding by design-build firms

Serves as the project manager (hired by the owner)

Acts as an adviser & relieves the owner of the responsibility to develop the project criteria by working with the owner to develop the project requirements that will be used by the selected design-build entity

Reviews the final construction documents, produced by the design-build entity, on the owner's behalf to ensure that the owner's design goals have been achieved but the AE is not legally responsibility for them

Works with public & private groups to gain the needed approvals for the project

Develops preliminary scope drawings & specifications so that the design-build entities interested in bidding for the project can understand the extent of the project & the owner's design intent

Produces the final, detailed construction documents

Uses the final documents to secure the necessary permits, review submittals, & construct the project

Takes over the AE's responsibilities & produces the final, detailed construction documents

Uses the final documents it has prepared to secure the necessary permits, review submittals, & construct the project

Is in the best position to work with manufacturers, subcontractors, & other suppliers to determine the best way to construct the project at the lowest possible cost while meeting the requirements of the owner

Acts as an adviser & works with the owner to develop the project requirements that will be used by the selected design-build firm

Relieves the owner of the responsibility to develop the project criteria

Works with public & private groups to gain the needed approvals for the project, & develops preliminary scope drawings & specifications

Specialty subcontractors or trades are included early in the design & construction document phases to help with the development of complex or unique portions of the building

A construction manager is hired as either adviser or constructor early in the project process to assist with construct ability, feasibility, & costs

Combines the advantages of the traditional design-bid-build process & the design build-approach

The owner contracts with one entity to provide both design & construction services

Takes some additional work to make it effective

The owner has to develop a clear statement & scope of work, along with a budget & schedule

Can potentially raise project costs

May delay the project schedule

Must help with developing the requirements of the work & then with the selection of the best subcontractor to meet the design, budget, & schedule requirements

Incorporate the shop drawings & specifications of the specialty subcontractor or supplier into the architect's construction documents

Design, detail, & develop specifications for the specialty system

Develop a clear statement & scope of work, along with a budget & schedule

All participants collaborate closely from the project's earliest conceptualization to move-in

In theory, the best design & most efficient & cost-effective building will be produced when everyone works together throughout the process, without the adversarial positions that sometimes develop in other project delivery mehtods

The owner often has multiple agreements with independent design & construction firms

Depends heavily on technology, communication, & integrated building information modeling (BIM)

Places more design effort earlier in project development when there is a great ability to affect costs & the functional aspects of the building

The owner contracts with one entity to provide both design & construction services

Specialty subcontractors or trades are included early in the design & construction document phases to help with the development of complex or unique portions of the building

A construction manager is hired as either adviser or constructor early in the project process to assist with construct ability, feasibility, & costs

Combines the advantages of the traditional design-bid-build process & the design build-approach

Technology

Communication

Shared Building Information Modeling (BIM)

A construction manager representing the client

The design-assist consultant or specialty supplier / sub contractor

Conceptualization

Criteria Design

Detailed Design

Implementation Documents

Agency Review Buyout

Construction

Closeout

Schematic Design

Design Development

Construction Documents

Conceptuatlization

Criteria Design

Detailed Design

Implementation Documents

Agency Review Buyout

Construction

Closeout

Has multiple unique considerations such as compensation, legal responsibilities, & technology standards

Because more participants are involved the early design phases may take slightly longer than with traditional approaches

Because more participants are involved the later design phases may take slightly longer than with traditional approaches

Has multiple unique considerations such as compensation, legal responsibilities, & construction standards

Transitional Forms

Multi-Party Agreement

Single-Purpose Entity (SPE)

Bridging

Design Assist Contracting

A201

A type of agreement used with AIA Documents for the Integrated Project Delivery Method

Are modeled after existing CM agreements

A single agreement executed by the owner, architect, contractor, & other key project participants for the design, construction, & commissioning of a project

Outlines a collaborative working relationship that encourages the parties to meet the cost & performance goals they jointly established

An independent limited liability company newly created for the sole purpose of planning, designing, & constructing a particular project

A single agreement executed by the owner, architect, contractor, & other key project participants for the design, construction, & commissioning of a project

Outlines a collaborative working relationship that encourages the parties to meet the cost & performance goals they jointly established

The IPD project is managed by a project management team as well as a project executive team that provides a second level of project oversight & conflict resolution - each team consists of one representative from each major party to the agreement

An independent limited liability company newly created for the sole purpose of planning, designing, & constructing a particular project

Provides a complete sharing of risk & reward in a fully integrated collaborative process

an independent limited liability company newly created for the sole purpose of planning, designing, & constructing a particular project

Provides for a complete sharing of risk & reward in a fully integrated collaborative process

Required by AIA Documents to contract with an architect who will become a member of the SPE - for planning, design, construction contract administration, & other services as necessary

Normally used for large & complex projects

A single agreement executed by the owner, architect, contractor, & other key project participants for the design, construction, & commissioning of a project

Outlines a collaborative working relationship that encourages the parties to meet the cost & performance goals they jointly established

The implementation documents, agency review, & buyout phases will take less time & the total project delivery time will be shorter overall because there are more participants earlier in the project and the method places more design effort earlier in project development when there is a greater ability to affect costs & the functional aspects of the building

Better Design

Shorter project delivery time

Lower project cost

Quality construction

Fewer problems during construction

Can potentially improve how projects are designed & built

A familiar, mainstream, & straightforward project delivery method

The owner contracts with a single entity

Clear and well defined roles & responsibilities

The expertise & size of the staff

The overall philosophy of the firm

How the firm is organized as a business

The techniques used to develop designs

How the firm produces the drawings & specifications

The project type

The office location

Design

Documentation

Consultant Coordination

Closeout Coordination

Construction Administration

Design-Based

Specialty Based

Generalist

International

Domestic

Focuses on developing solutions to problems that are unique & easily identifiable with the firm

Typically headed by a well-known architect / principal who has a distinctive style & is sought after by clients who want signature buildings

The initial conceptual design is developed mainly by the principal & is left to the project managers & production team to develop & implement the concept

The time & fees required by this type of practice methodology can be considerable

Specializes in complex building types such as hospitals, airports or laboratories

Looks for projects that demand expertise in the firm's area of specialization

Becomes skilled at delivering one kind of project quickly & inexpensively

Efficiencies in design & production can be found, solutions can be repeated, & most of the staff can be less experienced & less costly, though some senior staff are needed to manage projects well

May specialize in complex building types such as hospitals, airports, or laboratories

Looks for projects that demand expertise in the firm's area of specialization

May focus on less complicated buildings types such as residential, retail, or religious buildings

Becomes skilled at delivering one kind of project quickly & inexpensively

Efficiencies in design & production can be found, solutions can be repeated

Most of the staff can be less experienced & less costly, though some senior staff are needed to manage projects well

May pursue projects on its won, or it may team with another more generalist architectural firm that can provide the work force needed for full development of a design concept

Needs principals & support staff with a broad range of experience

Often use studio organization

Often use departmental organization

Completes a variety of project types

Needs principals & support staff with a broad range of experience

Is more likely to see wide swings in staff employment due to changes in the marketplace

Tends to be better equipped to move quickly from one market to another because its staff is more flexible & less locked into a particular building "formula"

Often uses studio organization

Sometimes has studios that specialize in certain building types, combining the advantages of expertise with the advantages of close communication & group problem solving

Typically wants to maximize efficiency so this firm type often sues departmental office structure

Becomes skilled at delivering one kind of project quickly & inexpensively

CAD or BIM, preferred set of software & hardware tools

In-house staff to complete CDs renderings & 3D modeling (typically done by junior-level employees)

Outsource labor to complete CDs, renderings, & 3D modeling (typically done by junior-level employees)

Hire the services of a specification-writing firm

Subscribe to a master specification system & use the system software to produce the documents in-house

Have an in-house specification writer & a master set of specifications

An economical way to produce construction drawings

Helps manage a firm's fluctuating workloads

Reduces production time

Allows a firm to take on more work

Requires additional management & coordination by the firm

The consultant who will be involved in a project should be brought in as early as possible

The services that are expected form each consultant must be determined with the advice of the consultant & approval of the client

Having the consultant create a contract directly to the client rather than through the architect so that the architect may better direct the consultant

Pay the consultant regardless of whether the architect has been payed by the client

Structural Engineers

Mechanical Engineers

Electrical Engineers

Plumbing Engineers

Geotechnical Engineers

Civil Engineers

Fire protection engineers

Permit Expediters

Historic Preservation Specialists

Security Consultants

The client assumes all responsibility for coordinating the architect's work with the consultant's work

The architect avoids any issues with contract provisions & payment

The architect gains better ability to direct the consultant

The architect may lose some ability to direct the consultant

May compromise the architects opportunity to comment on any portions of the consultant's design that affect the aesthetic objectives for the project

The architect is responsible for the work of the consultant

The architect is responsible for the consultant's payment

It is more time consuming & it lessens the control & immediate contact that management would have if the work were being done in house

It takes extra time

Lessens the architect's control over a project

Reduces the amount of immediate contact among all team members

The architect becomes responsible for informing consultants about the applicable code requirements & about any design decisions that may have code implications

The architect is responsible for understanding any design decisions that consultants make that will affect portions of the architect's work

Means more work of the architect

The architect is responsible for the consultant's payment

The architect is responsible for coordination between the architectural work & the consultants work

The architect make lose some opportunity to comment on all consultant work that may affect the aesthetic of the design

Proper working procedures

Clearly defined agreements

Good coordination

Include a "pay when paid" clause in the architect's contract with the consultant stating that the consultant will be paid when payments are received from the owner

Develop a list of reliable people in the area who can be called on when needed

Be sure to include costs for this work in the initial project budget

Research & interview consultants before an immediate need arises so that there will be time to choose the most appropriate one & develop necessary agreements

Check references & past work before hiring a consultant

Establish a lump sum contract price for the work that is to be outsources; this is usually possible for tasks like creating drawings & specifications; this makes it possible to develop a budget for the project

Be explicit in the written agreement about the extent of the work to be done & its quality

Set up a strict schedule of progress meetings, methods of communication, & reviews; this is the only way tot catch problems before they become serious & to ensure that deadlines will be met

Do not assume that all work is being completed as contracted; the architect must still control overall coordination & review all the work the consultant does

Plan & outline the work needed before giving it to the consultant

Arbitration

Mediation

Partnering

Negotiation

Litigation

Single Purpose Entity

Multi-Party Agreement

Transitional Documents

The Indemnification Clause is a clause in contract documents in which one party holds harmless the other party where as Lack of privity is the dismissal of liability to parties that have no direct or contractual relationship

The Privity is a clause in contract documents in which one party holds harmless the other party where as Indemnification Clause is the dismissal of liability to parties that have no direct or contractual relationship