What Are Your Project Delivery Options?
Owners and contractors should have a clear understanding of the delivery methods best suited for their project. A Lakeland construction attorney can help you understand all options as you consider risks and the overall success of your project. Here we address your project delivery methods for commercial construction projects.
Design-Bid-Build (“DBB”) is the most used method in commercial construction. In this method, the owner typically reaches out to an architect and gets the design drawings and specs for the project. Once the design documents have been prepared, interested contractors submit a bid. The owner often selects the contractor that submits the lowest bid that complies with all bid documents.
Design-Build (“DB”) is a project delivery method that combines construction and design work under one contract. In most situations, the contractor performs all design services or subcontracts services. This is easier to manage and has less liability for the owner.
Construction Manager (At Risk)
The Construction Manager at risk (CMR) project delivery method involves the CMR (the contractor) being held responsible for the contract performance, the subcontracts, and payment for the subcontractors. This puts the construction manager “at risk” because of their long list of responsibilities. Construction managers may also work on projects “not at risk,” however, this arrangement is more of an advisory role to the owner.
In the Multiple Prime project delivery method, the owner contracts with contractors and subcontractors separately. The owner typically contracts with a design team and will require bids for the various parts of work. Under a multiple prime delivery method, it is unclear who is responsible for delays so this forces contractors to resolve disputes among themselves without the involvement of the owner.
Integrated Project Delivery
Integrated Project Delivery (IPD) involves the use of a multi-party contract among the owner, designer, and contractor. This multi-party contract builds the project team and details each party’s responsibility for a collaborative, team-based approach.
Public Private Partnerships
Public Private Partnerships (P3s or PPPs) involve a public entity and a private enterprise on the development of a public project. The public entity can make payments for the project or provide some other basis for compensation. For example, in the case of roads, the public entity compensates the private by receiving a percentage of the tolls collected from the users of the road. Because of this, P3s are attractive for both the private local and state governments as means to fund the project.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.