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Understanding Product Delivery Systems

Project Delivery System:

the comprehensive process by which a building/project is designed and constructed including:
  • Definition of scope and requirements of a project
  • Procedures, actions and sequences of events
  • Contractual requirements, obligations and responsibilities of the parties
  • Interrelationships among the parties
  • Mechanisms for managing time, cost, safety and quality
  • Forms of agreement and documentation of activity
  • Actual execution of design and construction
  • Closeout of the project and start-up of the new facility

This guide will provide you with an overview of each of the major Project Delivery Systems available to you as a public official. It will describe the players involved in each system, the relationship that exists between these parties, responsibilities of each party, and what criteria are best satisfied by that system.

  • Project Delivery Systems addressed include:
  • Traditional Lump-Sum General Contracting
  • Construction Management
  • Build-Operate-Transfer (Lease-Back)

Key Project Criteria to be Considered When Selecting a Project Delivery System

  • Time available for the entire project, including design and construction
  • Overall scope and complexity of the project
  • Possibility of phased (or fast-track) construction
  • Availability of qualified contractors, subcontractors, supplier and tradespersons
  • Legal requirements
  • Financial strength
  • Budget and cash flow capabilities
  • Design expectations
  • Level of desire for integration of the design and construction processes, including preconstruction services by subcontractors
  • Special needs of the users
  • Special employment preference program requirements
  • Desired risk distribution