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The
successful completion of a project is referred to as its
"delivery." The "delivery method" describes the structure
of the working relationships among the owner, engineer,
and contractor(s), in other words, their roles and responsibilities
as well as the overall project risk sharing. It is essential
that all parties involved combine in a form (delivery
method) that allows each to manage the risks for individual
and project success.
In addition to the general contractor and prime contractors,
other participants can include:
Construction Management
When a project owner uses a number of separate, or "prime"
contractors to construct a facility rather than hire a
general contractor, and does not have sufficient resources
to manage the work, the project owner may hire a construction
manager to assist in obtaining bids, manage the construction,
and interface with the A/E. This is referred to as the
design/bid/build delivery option.
Design/Build
This is an individual or organization that has the capability
to both design and construct the facility that the project
owner requires, and turn over a facility ready to be operated.
A Design/Build Contractor can be referred to as a "Turnkey"
contractor or an Engineer/Procure/Construct (EPC) contractor.
Often this type of approach is sought in order to accelerate
completion of an ambiguous project.
Both reimbursable and "at risk" (fixed price) services
are utilized, depending upon the adequacy of scope definition.
As scope becomes defined, a reimbursable contract may
be converted from reimbursable to fixed price (convertible
contract) or guaranteed maximum price. In the design/build
method, scope is often presented in terms of facility
performance standards, such that further design detail
is necessary.
A variation of the above is a Design/Build/Operate contract
where the contractor also operates the facility for the
owner.
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