Question

Setting:

Since the preliminary estimate and further investigations indicated that Claire's project is feasible, it is now time to move from the initial concept to final design. In order to do so, Claire will need to consult an architect and an engineer. Thankfully, Claire had an old friend, Tony Tect, who owned a local architecture firm and was willing to help. Claire explained her ideas to Tony and he said he would be happy to produce some drawings for Claire within a few weeks.

Meanwhile, Claire asked Bob Builder if he could advise her about the selection of a design engineer. Bob recommended she talk to Angie Neer from Eager Engineers & Partners. The engineering firm was in Charleston, WV, as was Tony’s office. Tony and Angie had completed several projects together before and knew the value of working hand in hand during the design phase.

Two weeks passed before Claire, Tony, and Angie met to discuss Tony's drawings. After Tony presented his design, Claire made some minor suggestions, but in general was very pleased. Angie then commented on the design, which started a discussion that went on for another hour. Claire wasn't initially comfortable, but later she realized that such discussion is necessary in order to increase the constructability of a structure. Thus, it was advantageous to have structural decisions made early in the design phase and not when the building was already under construction.

After the meeting, Tony sat down on his desk and began to incorporate all the changes into the design. Angie returned to her office to get started on the design for the site preparation. Since Tony agreed to arrange the necessary permitting, Claire had the chance to concentrate fully on preparing the marketing information for the project. However, she realized that she needed to know more about construction project delivery. She had no idea what type of Construction Firm she should utilize for this project. She decided to get some advice from the developer, Bob Builder.

Bob replied to her with the following memo:

In construction Claire, you have several options for your delivery strategy, including: Design-Bid-Build (DBB), Design-Build (DB), and Construction Management (CM). DBB is a very common way to deliver a construction project using a traditional organization. DBB calls for a complete design before site work begins and then a single general contractor assumes all the responsibility for constructing the entire project usually on the terms of a lump-sum contract.

This answer did not really help Claire to understand which type of project delivery method would be most appropriate for her situation. Also, the methods of awarding a contract and the type of contract were confusing to Claire, as she has no prior experience being an owner. Before she could consider making a final decision, she needed more information and recommendations. Claire sent Bob an e-mail asking for a more detailed analysis. This is where you come in to help Claire make an informed decision.

Write a professional memo for Claire including the following information:

• List the pros and cons of each of the three-project delivery methods Bob mentioned, while applying them specifically to Claire's situation.
• Within the memo, draw a diagram to illustrate the organization of the management and contracting relationships for DBB, DB, and CM.
• Which project delivery method do you recommend to Claire? Why?
• Based on the delivery method you recommended, should Claire use a contract that is awarded competitively or a contract that is awarded by negotiation? Why?

In addition to the main contract for the entire project, Bob informs you, the intern, that there will definitely be a sub-contract with a specialty contractor for the site-work on the project.

• Should the agreement with the site sub-contractor be a lump sum or a unit-price contract? Why?
• Should this contract with the site sub-contractor be awarded competitively or negotiated?

Keep in mind that you like working for Big Builders and you are considering applying for a job at this company once you have your bachelor's degree. Therefore, you want to impress Bob with a professional report.

Answer 1

• Design Bid Build is interlinked between the Owner, Architect, Construction Managment and Contractors and not overlooped any critical paths in Constructability and its completion can be achieved in target schedule.
• Design bid is interlinked within the Owner & Designer.
• Constrcution Management will be interlinked with Owner and Construction Manager and Engineering or Architect.

Which project delivery method do you recommend to Claire? Why?

Based on the above three methods Clarie should go with Constrcution Management as Engineering Proposal for Pre Bid already completed by Clarie after consulting with Engineering and Constrcutability proposal made with Tony Techt and Angie Neer. So, Construction Management (CM) method is suitable for the same.

Should the agreement with the site sub-contractor be a lump sum or a unit-price contract? Why?

It should be Item Rate Contract as Engineering completed and Estimation and Costing Complete so Clarie should go with Unit Price Contract.

Based on the delivery method you recommended, should Claire use a contract that is awarded competitively or a contract that is awarded by negotiation? Why?

Contract should be awarded competitively as because Engineering Completed,all the technical data ready for bidding and Aprox Cost and Time delivery will also scheduled earlier so, it will be better.