Criteria

Traditional Design/Bid/
Build Competitive Hard Bid

Design/Construction Delivery Methods

Contracts Held By

Separate contract for GC and architect. Owner may hold some prime contracts.

db constructors, inc./Design Team

Who provides GMP and When

No guarantee of maximum cost. Initial cost us in the form of a lump sum bid.

db constructors, inc. typically provides Guaranteed Maximum Price (GMP) during design phase.

Cost Management

Low upfront cost, but high potential for expensive change orders if bid documents are incomplete or inaccurate.

Lower overall project costs. Provides opportunity to manage costs starting early in the design phase.

Savings to Contract Accrue to

100% to General Contractor.

100% to owner or shared.

Potential for Cost Savings

Based on market conditions and accuracy of drawings

Greater due to involvement during design. (minimum 10% savings)

Management Report Systems

Limited focus on construction activities only.  Lump sum cost accounting methods utilized.

Typically open book process.

Risk Absorption

Owner is exposed to highest risk of cost overruns and delays.

db is responsible for overall design, schedule and cost.

Communication Tools And Capabilities

Limited, most contractors will not provide under lump sum approach.

Systems will be in place for communication with project team.

Ability to Work Within Owner’s System

High owner staff time involvement required.

Least impact to owner’s staff. Owner is involved throughout entire process.

Project Schedule Management

Owner has responsibility with limited control of actual project schedule.

Provides best opportunity to fast-track project resulting in earlier completion.

Team Work Potential

Limited teamwork between owner, architect and contractor.

Complete team collaboration.

Value Engineering & Constructability

Contractor has little or no input into design and engineering. Changes are expensive to implement and will extend schedule.

Value engineering review are used during the design to reduce risk and costs. Changes are easier/faster to implement.