• Traditional Design-Bid-Build (DBB)
• Design and build
• Construction Management
• Agency-CM
• CM at-Risk

• reduce conflicts on construction projects
• medium to share the risks between the project participants-
• Impact the risk profile for different participants
• impact the risk profile for different participants
• provide the mechanism or framework for
• participants to interact and work
• successfully deliver the construction project

• Owner (in consultation with consultant) is responsible to chose the type of delivery system
• Following factors will impact the choice of delivery system:
• Type, magnitude and complexity of project: How?
• Project definitio/design: How?
• Project completion delivery: How?
• Funding sources and constraints: How?
• Risk sharing strategy: How?
• Previous experience of client with the different delivery systems

• The designer (in-house or contractor) prepares the construction bid documents and issue for tender (or bidding)
• Prospective contractors (by selective of open bidding) prepare and submit the bid in response to "Call to bid"
• The bidders submit their proposals to the owner, who determines the most compliant (typically the lowest) bid meeting project requirements
• In certain circumstances, owner may engage with the selected bidder to negotiate the terms and conditions of the contract (if allowed in T&Cs)

• requires the project to be fully designed
• involves single contractor (or Prime contractor)
• Follow sequential method of construction (and estimating)
• Consultant's role is seen as independent
• Many owners may use internal resources to control the project

• Owner needs both professional design services and construction services
• designer does not require detailed knowledge of the means and methods of construction

• alternative to traditional DBB: aimed to expedite the projects construction
• divided into WP (work packages)
• WP is designed, tendered and constructed individually
• while one (or more) WPs are under construction, work on next WP is started
• Construction Manager is hired to coordinate the work between different WPs
• Quality conceptual estimates are needed as final price is not available (as in traditional DBB where project can be cancelled or modified if bids are higher than budget)

• CM acts as project coordinator and general contractor
• Single point of accountability: CM at Risk signs contracts with all subcontractors
• typically contracts with owner in two stage.

1. manages and undertakes services during conceptual & preliminary design phases with design professional (pre-construction stage)
2. When design is complete, owner and CM-at-risk then agree on a price and schedule for the completion of the construction work. (construction stage)

• It is popular for owners of private projects (generally not preferred for public contract)
• Large complex projects and multi-phase projects that are time critical

• acts in an advisory role: constructability, value engineering, construction estimates, and other construction-related inputs
• during the design process the CM and the agency negotiate a Guaranteed Maximum Price (GMP)
• GMP is typically based on a partially completed design
• includes the general conditions, a CM fee, and construction contingency

• Acts as an advisor to the owner:
• Fee based service
• Level of service performed by CM can range from on-call advice or full project management
• Responsibilities may include:
• adviice during design stage
• evaluation of bids
• overseeing construction
• manage cost and schedule of projects
• Architect and contractor maintain the conventional role

• Single entity is responsible to design and construct the project
• design, construction engineering, and construction based on established design parameters, performance criteria, and other requirements
• Delivery system of choice for infrastructure projects (requiring high capital)
• Multiple variations depending upon risk sharing
• contract might be negotiated with a sole design-builder or as a result of competitive bidding
• The selection can be based on low price or on a set of value criteria (experience, DB team, financial capacity, quality, safety record etc.)
• Early cost commitment is made by contractor based on preliminary design
• Owner outlines some parameters of facility e.g. location, size, design and desired time of occupancy
• Owner may have some preliminary design work ready
• Occasionally owner may ask the contractor to develop on the preliminary design started by the owner design professional
• Competition may be introduced by the client using pre-qualification

• Owner completes a significat portion of the design before selecting the contractor
• design-builder completes rest of the design and constructs the project under a single contract
• Preferred where law prohibits the procurement of construction services other than low bid or before the design is substantially complete

Design-Build-Warranty

• DB warramts specified components over a prescribed time period (e.g. 5, 10, 15 or 20 years)
• Free the owner to inspect and maintain the facility during its service life

 Design-Build-Maintain

• Payment after construction is typically tied to Performance Standards for maintenance period

Design-Build-Operate 

• is a form of the DB method
• developer takes part in financing
• bid process can span over 2 years- hence typically suited to large projects (to justify these efforts and costs on bidding)

Step 1: Owner identify the need of the facility

Step 2: Owner identify the operational requirements, identify the building site and generate the preliminary design

Step 3: Request for Qualifications are asked (Private owner may approach the design builder directly for negotiation via closed bidding

Step 4: Design builders are asked to provide Request for Proposals from selected builders (design with the costs)

Step 5: Owner names the successful design builder and enter into contract negotiations

Step 6: Design builder delivers the facility on agreed terms

Step 7: Builder maintain and operates the facility for agreed upon period and fees

Step 8: Facility is transferred to owner after lease period

• Pooling of resources and technical know-hows
• Parent firms remain separate entities
• Shared risks, profits and decision making

• Traditional risks and responsibilities are allocated to different parties; JV all participants assume collective responsibility for delivering project
• Traditional failure to manage the risks will attract legal consequences; JV all participants take collective ownership of risk and opportunities
• JV all participants share profit/loss based on pre-agreed terms

• each member should recognize that JV is stand alone company, and hence be given the space to work and achieve it's objectives. Undue influence from anyone of the members can jeopardize the achievement of the goals-It's all about collaboration
• A well written legal agreement is the backbone of a successful JV
• Legal agreement should clearly identify the goals, roles, and responsibilities, and business processes
• Typically governed by management committee with formal procedures around constitution of committee, power and authority, calling the meetings etc.
• A business and project execution plan should cover and address strategy around all the main components of a project

• set up either for one time use (project specific) or for various projects
• shared participation in decision-making
• parent firms remain separate entities
• a combination, as opposed to an exchange, of assets
• a pre-determined assignment of human resources (staff), financial resources (working capital, bonding etc.), and physical resources (office space, equipment, etc.)

• General (or trade) contractor/general (or trade) contractor
• General (or trade) contractor/architect-engineer
• General contractor/trade contractor or supplier
• General contractor/investor, lender or financial party
• A consortium with multiple entities

Three basic coverage areas:

1. General Liability Insurance:
• It is utmost importance that each JV member add the JV entity to their liability policy
• Effective way is to set up another liability policy for the JV, rather than changing the existing general liability policy
• Policy should be carried forward for 5-6 years after termination of contract
2. Builder's Risk Insurance: An "All Risk" policy should be in place
3. Professional Liability Insurance:
• Either each professional can provide individual PL policy, or JV can have a project specific PL policy
• Project specific policies reduce the paper work and eliminate the chances of oversight 

1. All the members are liable to perform to agreed terms and conditions
1. If one member defaults on the terms and conditions, all members will be held liable
2. Surety companies underwrite each JV member as if they are responsible for entire project
3. Surety companies review the financial information of all the members before offering the support, especially if strongest member can perform the project by itself

1. Pre-bid phase may be covered under MoU but a formal agreement in place prior to submitting RFP
2. Following issues should be agreed upon:
1. Establishing the project team,
2. roles and responsibilties
3. gouvernance of JV,
4. choices of legal vehicle to be used for JV (e.g. Limited companies, partnerships, etc)
5. project and business execution strategy,
6. financial contributions,
7. external funding requirements and sources,
8. distribution of risks and profits in the parties,
9. regulatory issues related to safety,
10. quality, certifications,
11. unions,
12. foreign worker and foreign investment etc.

• Where risks are high for single party (specially in large projects)
• Opportunities can be harnessed well in collaboration
• Pooling the financial resources
• Exploring the opportunities in other geographical areas or markets
• JV is not business as usual. Require trust between all the partners. Each partner has to focus on the interest of the Venture, rather than individual interest
• Require full financial disclosure
• Need much more legal counsel and due diligence due to complexity of relationships between JV teams