SBM1204 Project Delivery Systems: Model Analysis & Implementation

This report provides a detailed analysis of various project delivery models commonly used in construction projects, including design-bid-build, construction management multi-prime, construction management at risk, design-build, and integrated project delivery. It compares these models based on their strengths, weaknesses, risks, and opportunities, focusing on factors like project objectives, scope, constraints, and contractual packages. The report also discusses a methodology for selecting the most appropriate delivery model for a specific project, such as the construction of a children's hospital, emphasizing the importance of aligning the chosen model with the project's business case and risk assessment. Ultimately, the report suggests that an integrated project delivery approach can be advantageous for managing project constraints and ensuring timely and cost-effective completion.

Contents
Research Methodology..........................................................................................................................2
Research Design................................................................................................................................2
Business Case....................................................................................................................................2
Delivery Models comparison.............................................................................................................3
Project Scope.................................................................................................................................3
Contractual Packages.........................................................................................................................8
References.............................................................................................................................................9

Research Methodology
Project delivery involves development of a project plan, designing, construction and
management of a construction project. Common delivery systems that were identified in the
literature review included design bid build, construction management at risk, design build
operate, design build maintain, and integrated project management. The research
methodology can be used to identify the right delivery model for a construction project
(Fischer, Reed, Khanzode, & Ashcraft, 2012).
Research Design
The first step is to identify project objectives that are used to develop a business case and
identifying constraints. Based on the analysis of the business case, scope of the project can be
developed. A SWOT analysis or risk analysis is used on possible delivery models so that mot
appropriate delivery model can be identified and selected as the preferred system. The system
is selected based on certain project criterias that have to be met. These include project
objectives, project constraints, project feasibility, business case and project risks. Once a
delivery system is selected, a detailed plan for the delivery system is created which would
include development of contractual packages for different contractors involved on the project.
Each contract package would identify some terms and conditions for the contract including
objectives, constraints, risks, project scope, roles and responsibilities, quality management
and other special conditions. Risks and strategies identified in the contractual agreements
must be able to meet the project criteria to be able to approve a contractual package. Once
ideal contract packages are identified based on the selection criteria’s, the selected delivery
system containing desired packages can then be implemented (Chong, Brandt, & and Martin,
2010)..
Business Case
A business case of a project justifies the reason why a project must be executed. A business
case acts as a reference for the entire project and involves identification of the key
expectations of project stakeholders and setting of the project goals that can be justified with
given resources. A business case makes estimations of project benefits, deliverables,
constrains, and the project environment. In the current research project, a business case is
first prepared for the a project that involves development and construction of a children
hospital in Auburn.

Delivery Models comparison
To arrive at a conclusion on which delivery model should be opted for the construction
project of children hospital, a number of available models would be compared on the basis of
objectives, scope, and constraints. The objectives of the current project include:
 Construction of the hospital within the given time schedule and the approved budget
 Ensuring construction of all required facilities in the children hospital constructed
Project Scope
The activities that would be within the project would be selected by the chosen delivery
model. A traditional design bid build model would involve creation of separate contracts for
separate contractors participating in the project. This type of delivery method involves a
linear sequence of development including designing, bidding, contractor selection,
construction, and project completion.
The responsibilities of the project owner in the traditional construction project management
project delivery model would include
 Selection of the contractor who would be providing the development guidance to the
project team
 Selection of the architect who would be involved in developing the design for the
project
 Selection of subcontractors and the engineer and their hiring to assign them project
work
 Monitoring of the project subcontractors to ensure that project is completed as per
defined timeline and within budget.
The scope of the project after it is being assigned to an architect and multiple subcontractors
would be
 Designing of the construction project
 Selection of engineers for the project work
 Execution of deliverables defined in the project contracts
 Communicating of project plan to engineer and subcontractors to follow the project
needs
 Monitor project progress by overlooking the work of engineers The project has
constraints in terms of the financial and human resources available and the project

schedule which cannot be exceeded. The project should get delivered within the
budgeted amount. Use of a linear process of the construction project management can
increase the cost of execution.
In the construction management multiprime project delivery method, different contracts are
made for contractors and engineers just as in the traditional method but the design of the
project is retained control of by the construction project organisation. As the company would
have the control over designing processes, project owner would be able to maintain control
over some of the construction project work. Thus, the company would be required to monitor
activities which would get added to the project scope.
The responsibilities of the project owner in multiprime project delivery method would
include
 Selection of the contractor who would be providing the development guidance to the
project team
 Selection of the architect who would be involved in developing the design for the
project
 Selection of subcontractors and their hiring to assign them project work
 Monitoring of the project subcontractors to ensure that project is completed as per
defined timeline and within budget (Rawlins & Godwin, 2015).
The scope of the project after it is being assigned to an architect and multiple subcontractors
would be
 Designing of the construction project
 Selection of engineers or the project work
 Execution of deliverables defined in the project contracts
 Communicating of project plan to engineer and subcontractors to follow the project
needs
 Monitor project progress by overlooking the work of engineers
Construction management at risk is another delivery method that involves development of
multiple contractors for architect and a main contractor with the project owner. These in turn
wold have their contracts made with engineers and subcontractors. In this case, the project
owner only selects the project contractor while all other activities in the project scope would
be the responsibility of the contractor (LEVELSET, 2019).

The responsibilities of the project owner in a construction management at risk project
delivery model would include
 Selection of the project sub-contractors based on the guidance taken from the
consulting contractor
 Selection of the architect who would be involved in developing the design for the
project
The scope of the project after it is being assigned to the group of architect and contractor
would include the following activities:
 Designing of the construction project
 Selection of engineers or the project work
 Selection of right contractors to be the part of the project development
 Communicating of project plan to engineer and subcontractors to follow the project
needs
 Monitor project progress by overlooking the work of engineers and contractors
In this model, the project manager would have to hire both contractors and architects which
may not be possible within the allotted budget.
Design-build model of delivery is another model in which an architect is hired to take care of
designing work and of engineers. A chief contractor is also hired to select and manage sub-
contractors of the project. In this type of delivery model, the responsibilities of the project
owner would include (Molenaar, Harper, & Yugar-Arias, 2014)
 Selection of the project contractor who would then be taking care of hiring and
management of subcontractors
 Selection of the architect who would be involved in developing the design for the
project
The scope of the project after it is being assigned to the group of architect and contractor
would include the following activities:
 Designing of the construction project
 Selection of engineers or the project work
 Selection of right sub-contractors to be the part of the project development

 Communicating of project plan to engineer and subcontractors to follow the project
needs
 Monitor project progress by overlooking the work of engineers and contractors
The integrated project delivery is the method in which the owner hires an organisation with a
capability of both engineer and contractor which further manages selection, hiring, execution
and monitoring of the subcontractors involved in designing and construction work.
In this type of delivery model, the responsibilities of the project owner would include
selection of the project contractor who would take care of both the design and construction of
the project (Beck group, 2015).
The scope of the project after it is being assigned to the integrated project contractor would
include the following activities:
 Designing of the construction project
 Selection of engineers or the project work
 Selection of right sub-contractors to be the part of the project development
 Communicating of project plan to engineer and subcontractors to follow the project
needs
 Monitor project progress by overlooking the work of engineers and contractors
With the use of a single contractor taking care of all the project operations, the costs can be
minimized. However, this project delivery method can also have certain risks that must be
assessed and compared with the other delivery method to be able to select the right method
for project delivery. The table below gives the comparison of the different project delivery
methods that can help in selection of the appropriate method (Walewski, G. Edward Gibson,
& Jasper, 2001)..
Project delivery
method
Strength weaknesses Risks Opportunities
Design bid build It is a linear
and simple
method to use
It can be very
long and thus,
can cost more
Any delays in
one process can
result into
delays on the
entire project
The DBB
arrangement
presents an
opportunity for the
project owner to
give responsibility

to contractors
CM MP In this method
the owner
takes
assistance
from the
contractor but
hires
subcontractor
s and thus,
has more
control over
project
execution
Hiring and
managing
contractors on
the own could
be
complicated
for the project
organization
If there are
conflicts
arising between
subcontractors
then it could
affect the
performance of
the project.
The arrangement
presents an
opportunity for the
project owner to
establish greater
control over the
project
CMAR In this method
the owner
takes
assistance
from the
contractor but
hires
subcontractor
s and thus,
has more
control over
project
execution
As this
involves
giving away
responsibilities
to contractors,
it can be fast
to deliver and
less
complicated
Any delays in
one process can
result into
delays on the
entire project
The arrangement
presents an
opportunity for the
project owner to
give responsibility
of development to
the project
contractors
DB It is a linear
and simple
method to use
It can be very
long and thus,
can cost more
Any delays in
one process can
result into
delays on the
entire project
The DBB
arrangement
presents an
opportunity for the
project owner to
establish full
control over the

project
IPD A single
contractor
would take
care of both
the design and
construction
thus, making
project least
complicated
The company
can lose
control over
the project
deliverables
and would
have to depend
on the
contractors for
monitoring
and reporting
progress
If the
contractor is
not efficient, it
can put the
whole project
at risk and thus,
it is important
that the key
contractor has
all needed
capabilities
The arrangement
presents an
opportunity for the
project owner to
delegate full
responsibility to
experts and ensure
best performance
within budget
Based on the analysis conducted for the alternatives available , an integrated project delivery
can be selected as it would take care of project constraints as well as provide the company an
opportunity to complete project on time within approved cost.
Contractual Packages
Based on the IPD method of delivery, the contract packages have to be built between the
project sponsor and the main contractor as well as between the contractor and engineers and
subcontractors who would be working on its completion. As an integrated delivery
framework has been chosen on the project, it is essential that contractual packages developed
are not entirely independent but are influenced by the relationship of individual works with
the other components of the project. The responsibilities would be defined for the parties to
contract in all contract packages. For the project owner, the responsibilities as per the contact
between the main contractor and the project owner would be
 Selection of right construction and design contractor
 Monitoring of the project progress as reported by the main contractor
 Helping contractor resolve if there are any issues faced during the project
The contractual packages that would be between the main contractor and the subcontractors
including architects and construction sub-contractors, the responsibilities of the main
contractor would include the following:
 Selection of right construction and design contractor

 Monitoring of the project progress as reported by the sub-contractors
 Helping sub-contractor resolve if there are any issues faced during the project
 Reporting the whole project performance to the project owner
The responsibilities of the sub-contractors would include
 Development of the design for the project
 Managing raw materials needed for the construction work
 Execution of the planned construction activities
 Monitoring and reporting routine activities to the main contractor
References
Beck group. (2015). An Analysis of Design/Build vs. Design-Bid-Build. Beck group.
Chong, G. H., Brandt, R., & and Martin, W. M. (2010). Design Informed: Driving Innovation
with Evidence-Based Design. . Wiley.
Fischer, M., Reed, D., Khanzode, A., & Ashcraft, H. (2012). A simple framework for
integrated project delivery. Stanford University.
LEVELSET. (2019). Common Construction Project Delivery Methods: A Breakdown.
LEVELSET.
Molenaar, K., Harper, C., & Yugar-Arias, I. (2014). Guidebook for Selecting Alternative
Contracting Methodsfor Roadway Projects:Project Delivery Methods, Procurement
Procedures,and Payment Provisions. Boulder, Colorado : University of Colorado .
Rawlins, D. D., & Godwin, B. (2015). CHoosing a Project Delivery Method. Design-Build
Institute of America.
Walewski, J., G. Edward Gibson, J., & Jasper, J. (2001). Project Delivery Methods and
COntracting Approaches Available for Implementation . Austin, TX : The University
of Texas at Austin .