Comparison of Project Delivery Methods

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The assignment requires a comparative analysis of two project delivery methods: design-bid-build and integrated project delivery. It involves evaluating the strengths and weaknesses of each method, considering factors such as cost, time, and quality management. The document should provide a detailed comparison of these methods, including case studies and examples, to help readers understand their differences and choose the best approach for specific projects.

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Running head: PROJECT EXECUTIONS PLANNING AND MANAGEMENT
Project Executions Planning and Management
Name of the Student
Name of the University
Author Note

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PROJECT EXECUTIONS PLANNING AND MANAGEMENT
Table of Contents
Introduction..........................................................................................................................2
1. Project Delivery System for M4 widening Project..........................................................2
2. The Financial Contract type.............................................................................................8
Conclusion.........................................................................................................................11
References..........................................................................................................................11
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PROJECT EXECUTIONS PLANNING AND MANAGEMENT
Introduction
The existing Sydney motorway network project is undertaken by APIC CONSULT,
which is an organization that works as a general contractor and project consultant for both the
government and the private agencies. The project deals with the widening of the existing M4
Motorway as the current roads are insufficient for the growing demands. The new and the
improved highway system that is proposed is expected to enhance the traffic management system
by removing an estimated 4000 trucks a day from Parramatta road. These trucks will be routed
underground that will in turn trigger the opportunity for the neighbourhood revitalization. As a
consultant, EPIC CONSULT has taken up the project to advise the client about the best project
delivery method and the financial contract type that will be suitable for this project. Since the
project size is particularly huge, the project was undertaken by a joint venture company of all the
three prime contractors associated with the project. The project is expected to be delivered by
2023. Since the size of the project is particularly huge, there are certain challenges associated
with the project as well. . The following paragraphs discusses in detail, financial contract type,
procurement method, the delivery method for the project (Akintoye, Goulding & Zawdie, 2012).
1. Project Delivery System for M4 widening Project
Since M4 widening is a construction project and is particularly complex, it is necessary to
choose the proper project delivery system in order to ensure that the project is not delayed
further. Choosing an accurate project delivery method is crucial as this method is used by the
project or the contractor manager to organize and manage the different operations and services
associated with the delivery of a project. The proposed project delivery method for the M$
widening projects includes Design Bid Built delivery system, Design build delivery system and
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PROJECT EXECUTIONS PLANNING AND MANAGEMENT
CM at Risk project delivery system (Bilbo et al., 2015). In order understand which project
delivery method will be suitable for the M4 Motorway Widening project, the characteristics of
all the three project delivery methods and the evaluation criteria of the three project delivery
method is represented in the following matrix.
The project Delivery System Matrix
Criteria/
Goals
Criteria
Weight
Project
delivery
system
Method
1: Design
Build
Method
2:
Design
bid
Build
Method
3: CM at
Risk
Score Weighted
Score
Score Weighted
Score
Score Weighted
Score
1. The Project
is needed to be
completed
within 2023
20
3 60 4 80 8 160
2. More than
140000
vehicles
should be kept
moving
30 5 150 6 240 3 180

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PROJECT EXECUTIONS PLANNING AND MANAGEMENT
through the
project
corridor during
project
implementatio
n
3. A first track
schedule is to
be maintained
20 4 80 6 120 8 160
4. The project
is to be
implemented
in a controlling
cost
environment
30 7 210 8 240 4 120
100 --- 500 ----- 680 -- 620
Table 1: Representing the Project delivery matrix
By analysing the results of the project delivery matrix mentioned above, it is found out that the
design bid build method will be appropriate for successful implementation of the project within
the allocated time. The assumptions associated with the selection of the design bid contract are as
follows-
Assumptions:
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PROJECT EXECUTIONS PLANNING AND MANAGEMENT
1. In design bid build project delivery system, different entities are responsible for designing and
building the project, which is similar to the case of M4 motorway development. Therefore, it is
assumed that this contract will be appropriate to consider for the project (Xia et al., 2014).
2. It is assumed that the separate phase of designing and bidding will not take more than the
expected time.
3. It is assumed that the project progress report will be regularly communicated to the two
consulting companies, which are Larson and Sons and McCartney Inc (Porwal & Hewage,
2013).
4. Since WestLINK has somehow became fairly detached from the project and is responsible for
performing only the brief reviews associated with the project, it is assumed that the separate
designer and the builder in the design bid build project delivery method will look after the
quality of the project.
Justification for the Criteria Chosen and the criterion weight allocated:-
In order to evaluate the best project delivery method for M4 Motorway Widening project,
a project delivery matrix is prepared, where each of the three project delivery methods is
evaluated on basis of certain criteria (Pishdad-Bozorgi & de la Garza, 2012). The importance and
the significance of each of the project delivery methods is analysed on basis of the weight and
importance of the criteria on basis of which is judged.
There are certain challenges associated with the project, which needs to be eliminated in
order to successfully implement the project. The criteria for choosing the best project delivery
method have been set on basis of the challenges that the project might encounter (Minchin Jr et
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PROJECT EXECUTIONS PLANNING AND MANAGEMENT
al., 2013). The project delivery method that will be able to eliminate those risk and limitation
associated with the project will be chosen.
The first criterion of choosing the best project delivery method is that the Project is
needed to be completed within 2023. This criterion is assigned a weight of 20 as it is fairly
important to finish the project in the given time and the motorway cannot be kept engaed for
long time.
The second criterion of choosing the best project delivery method is that More than
140000 vehicles should be kept moving through the project corridor during project
implementation. This is one of the most important criteria for selection of the project delivery
method and is assigned a weight of 30. This criterion is important and has been assigned a higher
weight since the project cannot disrupt the normal operation of the motorway. In the table the
design bid build contract gets a score of 6 against this criterion as in the bid phase, WestLink can
easily choose the builder who will assure normal operation of the motorway in the project
implementation stage (Kerzner & Kerzner, 2017).
The third Criterion of choosing the best project delivery method is that a first track
schedule is to be maintained. This is again a major criterion of evaluation of the project as the
project work will be performed in one of the vital parts of the city and is therefore expected to
disrupt the normal operation of the project site to a great extent (Ilozor & Kelly, 2012).
Therefore, this criterion is allocated a weight of 20 and the design bid build project delivery
method gets a score of 6 in this as in this project delivery method, the builder aims at finishing
the project in the time allocated for a particular project.

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PROJECT EXECUTIONS PLANNING AND MANAGEMENT
The last criterion, on basis of which the project delivery method is evaluated is that the
project is to be implemented in a controlling cost environment. This is one of the most
significant criteria for evaluating the best project delivery method and therefore is allocated a
weight of 30. The design bid build contract gets a score of 8 against this criterion as separate
contractors are responsible for managing the designing and the building phase of the project,
which indicates that a proper control and monitoring procedure of the project will be
implemented during the project execution.
Justification for choosing Design Bid Build Contract
Table 1 represents the allocated score of design bid build contract against the criteria
selected for evaluation of the best project delivery method. The design bid build project delivery
system on an average gets a higher score in all the categories in comparison to design build and
CM at risk Contract type and therefore, design bid build contract is chosen for the project. In
criterion 1, the design bid built contract gets a considerably lower score than CM at risk since
CM at risk type of project delivery system has the highest rate of timely completion of the
project (Park et al., 2015). In criterion two, the design bid build type of project delivery system
gets a greater score in comparison to the other two methods as in the bidding phase, the project
owner can easily choose the builder that satisfies this project criteria. Similar is the case of the
last two criteria since in the design bid build project delivery system, the project owner has the
option to choose the best builder and project implementation technique for the project.
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PROJECT EXECUTIONS PLANNING AND MANAGEMENT
2. The Financial Contract type
Financial Contract type Matrix
Criteria/
Goals
Criteria
Weight
Financia
l
Contract
Type
Method
1: Lump
Sum
Contract
Method 2:
Guarantee
d
Maximum
Price
Contract
Method
3: Cost
Plus
Free
Contrac
t
Score Weighte
d Score
Score Weighte
d Score
Score Weighte
d Score
1. The project
needs to be
completed
within the
allocated
budget. There
should be no
or very little
30 8 240 7 210 4 120
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PROJECT EXECUTIONS PLANNING AND MANAGEMENT
scope of
budget
revision or
cost revision in
the
implementatio
n of the
project.
2. Ensuring
proper safety
is included in
the budget
20 5 100 6 120 7 140
3. A
concessional
funding is
committed to
the project so
that
WestLINK can
deliver the
project in 2
stages. This
funding cannot
be revised in
the later stage
20 6 120 7 140 4 80

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PROJECT EXECUTIONS PLANNING AND MANAGEMENT
of the project
4. The project
is to be
implemented
in a cost
controlled
environment
30 6 180 8 240 5 150
100 ---- 640 ----- 710 490
Table 2: Representing Financial Contract Type
By analysing the data obtained from the financial contract type matrix, it is found out that
the guaranteed maximum price contract will be best financial contract type for the Widening of
the M4 Motorway project. The assumptions for choosing this type of financial contract is
represented below-
1. The financial contract type aligns with the chosen project delivery method.
2. The financial contract chosen at the beginning of the project cannot be change in the
later stages of the project.
3. The project is expected to undergo no budget revision.
Justification for the Criteria Chosen and the criterion weight allocated:-
The best financial contract type chosen for the M4 Motorway widening project is based
on the certain criteria that are identified for the project (Gransberg, 2013). The first criterion that
is chosen for evaluating the best financial contract type associated with the project is that the
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PROJECT EXECUTIONS PLANNING AND MANAGEMENT
project needs to be completed within the allocated budget. There should be no or very little scope
of budget revision or cost revision in the implementation of the project. This is an important
criterion associated with the project and is therefore allocated a weight of 30. The second
criterion that is chosen for evaluating the best financial contract type associated with the project
is that workers safety is to be ensured and the safety requirements should be an important
criterion for the contract. Therefore, this criterion is allocated a weight of 20 for identifying the
best financial contract for the project. The third criterion, criterion that is chosen for evaluating
the best financial contract type associated with the project is that the funding cannot be revised in
the later stage of the project. This criterion is allocated a weight of 20 as financial contract to be
chosen largely depends on the budget allocated. The last criterion is equally important and
therefore allocated a weight of 30.
Justification for choosing Guaranteed Maximum Price Contract
In table 2, the guaranteed maximum price contract on an average gets higher score than
the other two contract methods as in guaranteed maximum price contract; a contractor is
responsible for the actual cost incurred for the project. Therefore, the contractor while taking the
contract can be made to abide by the important criteria that are set for the project (Brook, 2012).
Therefore, the guaranteed maximum price contract will be the accurate financial contract for the
M4 motorway widening project.
Conclusion
Therefore, from the above the discussion it can be concluded that the M4 motorway
widening project can be implemented within the time allocated by following a design bid build
project delivery system. The delivery system is chosen for the project by evaluating certain
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PROJECT EXECUTIONS PLANNING AND MANAGEMENT
important criteria for selection of the project delivery method. In order to choose the adequate
financial contract type, certain important project criteria are evaluated. Use of a proper project
delivery system and financial contract type is essential in order to ensure project success.
References
Akintoye, A., Goulding, J. S., & Zawdie, G. (2012). Construction innovation and process
improvement (pp. 1-17). Wiley‐Blackwell.
Bilbo, D., Bigelow, B., Escamilla, E., & Lockwood, C. (2015). Comparison of construction
manager at risk and integrated project delivery performance on healthcare projects: A
comparative case study. International Journal of Construction Education and Research,
11(1), 40-53.
Brook, M. (2012). Estimating and tendering for construction work. Routledge.
Gransberg, D. (2013). Early Contractor Design Involvement to Expedite Delivery of Emergency
Highway Projects: Case Studies from Six States. Transportation Research Record:
Journal of the Transportation Research Board, (2347), 19-26.
Ilozor, B. D., & Kelly, D. J. (2012). Building information modeling and integrated project
delivery in the commercial construction industry: A conceptual study. Journal of
Engineering, Project, and Production Management, 2(1), 23.
Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
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