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ConstructionContracts(CN-323)Dr. Nida Azhar

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Design-Bid-Build (DBB)-Project Delivery ethod

Design-Bid-Build (!raditional) Process

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!y"ical #rganization o$DBB

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%alient &eatures o$ DBB 'ole o$ each "arty clearly de ned 'igid and $or al "rocedures are usually $ollo*ed in

$or ing contract !his is the only ethod in *hich o*ner has r idea o$

the nal cost o$ the "roject "rior to construction "hase. Bro+erage is *hen general contracts all the *or+ on

"roject DBB o$ten e,tends the "roject duration #*ner doesn t have agent or $riendly "arty involved in

the contractual agree ent. ess e "hasis on /uality to aintain lo* cost Adversarial relationshi" 0et*een di1erent "arties. ,"oses o*ner to a greater "ro0a0ility o$ clai s

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%alient &eatures o$ DBB As design is develo"ed *ith contractor s in"ut there

are $e*er changes due to design error. Dis"utes arising 0et*een design and construction

r s are essentially eli inated 4t is "ossi0le to start construction to 0egin 0e$ore

co "letion o$ design 4t is acco "lished 0y designing the $oundation rst and

then develo"ing the design as construction co ences !here are $e*er chec+s and 0alances 0uilt into this

"rocess #*ner has lesser control a*s and regulations ay "lace serious restrictions

on the "rocess.

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%el$-Per$or ance ethod

#*ner

5or+er 5or+er 5or+er 5or+er 5or+er

Architect

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Design-Build (DB) Deliveryethod

%ingle r designs and constructs the 0uilding(design- constructor or turn+ey construction

cost "lus lu " su

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%alient &eatures DB 6tilizes the construction r s e,"erience in the

design "hase 7igher degree o$ constructa0ility Contract can 0e a*arded through co "etitive

a""roach (i$ sco"e is *ell de ned). Contract is generally esta0lished as a target cost

or guaranteed a,i u "rice (8 P). 4t is co on to 0e *ritten as a cost "lus $ee *ith

a 8 P. 4n "u0lic sector9 o*ners "re$er to +ee" all the

savings *hen the cost is 0elo* 8 P. #n a "rivate "roject9 di1erent echanis s $or

sharing the savings ight 0e e,"lored

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Construction anager as the#*ner s Agent : C AA

ethod Also +no*n as Pro$essional Construction

anage ent ethod

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%alient &eatures C AA #*ner hires a r *ith construction e,"ertise to

"er$or construction anage ent During design "hase9 C "eriodically revie*s the

design to see ho* the cost and ti e o$ the "roject

can 0e reduced. ;alue ngineering is ost cost e1ective during

design "hase 0e$ore any onetary co it entshave 0een ade to construction.

C "ay ent ay 0e 0ased on

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Construction anager at 'is+ : C A' ethod

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%alient &eatures- C AA C is an inde"endent contractor C is at ris+ and res"onsi0le to o*ner to

co "lete the "roject 0y the esta0lishedsu0stantial co "letion date and *ithin the agree

0udget. C e,"ertise can 0e utilized during early "hases

o$ construction. ;alue ngineering can 0e e1ective.

Contract is generally esta0lished as a cost "lus$ee *ith a 8 P.

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&ast-!rac+ Project%cheduling

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4n an 4PD ethod9all sta+eholders inthe "roject9 such as

the o*ner9 architect9architect sconsultants9 generalcontractor9 and

su0contractorscontri0ute inconstructing thevirtual odel.

!echnology $or 4PD : Building 4n$or ation odeling(B4 )

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Conventional vs. 4PD