Selecting the appropriate project delivery method: interim recommended guidelines

SELECTING THE APPROPRIATE PROJECT DELIVERY METHOD
Interim Recommended Guidelines
Georgia State Financing and Investment Commission
Version 1.0
August 1, 2001

Preface:
This edition of the Project Delivery Selection Guidelines is intended to assist the Using Agency during the development of their Implementation Plan during the Predesign Phase. This document is the product of several months of discussion and consideration by the parties listed below, but it is not intended to be the final edition. It is anticipated that, once the principles stated herein have been tested, changes to the Guidelines will be necessary. Any comments or suggestions on how to improve this document to make it easier to understand and use would be greatly appreciated.
Acknowledgements:
The Georgia State Financing and Investment Commission, and, particularly, the editors, wish to take this opportunity to express our sincere appreciation to our industry partners and those state employees who donated their time and effort to the development and production of this document. Without their assistance, not only would the quality of the document have suffered, it would not have existed at all.
Art Brook, Nottingham, Brook & Pennington, Inc. Peter Finsen, Jacobs Facilities, Inc. Rett Gunn, Barton Malow Company Mike Kenig, Holder Construction Gillis MacKinnon, Sizemore Floyd, LLC Rob Mauldin, 2KM Architects, Inc. Kurt Mueller, Beers Construction Company Tom Nesmith, Putzel Electrical Contractors, Inc. Chip Patrick, J.M. Wilkerson Construction Co. Wayne Robertson, Brookwood Group Herb Saunders, Lakeside Project Services Mark Woodall, Georgia Branch of Associated General Contractors of America
Gena Abraham, Georgia Building Authority David Clark, Dept. of Juvenile Justice Joe Davis, Governor's Office of Planning and Budget Ron Nawrocki, Governor's Office of Planning & Budget Mike Plumb, Georgia Department of Technical and Adult Education George Zier, State Law Department
Editors:
Lamar Holland, Georgia State Financing and Investment Commission Mike Kenig, Holder Construction

Selecting the Appropriate Project Delivery Method

Table of Contents
1. Executive Summary 2. Background Project Delivery in the State of Georgia 3. Establishing a Common Vocabulary
a. What is a "Project Delivery Method"? b. The List of Methods c. Understanding the Options d. Defining the Project Delivery Methods 4. Selecting an Appropriate Delivery Method The Major Factors a. Project Related Factors b. External Factors c. Contributing Factors 5. Selection Decision Tree (Future)

Page 4 4 5
16
22

Appendices

A. Georgia Code, Section 50-5-67

A-1

B. Establishing the List of Methods

B-1

C. Other Issues Related to Project Delivery

C-1

D. Project Delivery Translator (Full Size)

D-1

E. Major Factors Worksheet (Detailed Version)

E-1

F. Major Factors (One Page Summary)

F-1

Future sections of the State Construction Manual will address Selection Process Guidelines and Sample Documents for each of the Project Delivery Methods. Agencies seeking assistance in the meantime should contact GSFIC.

Latest Version of this document can be found at the following website: http://www.ganet.org/gsfic/

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1. EXECUTIVE SUMMARY
Goal The goal of this section of the manual is to assist the Using Agency in establishing a common vocabulary, understanding the project delivery options and then determining an appropriate project delivery method for each particular project.
The purpose of this section is to assist the Using Agency during the preparation of a Predesign Study. More specifically, assisting in identifying the proposed project delivery method as part of the "Method of Accomplishment" discussed in the Project Implementation Plan section of the Predesign Guidelines.
This section objectively describes the various project delivery methods for construction procurement, focusing on the most commonly used. A basic overview of each method is provided along with guidance to assist in selecting an appropriate method. The application of each method is briefly addressed, but rather than having detailed "how to" instructions, this section provides the reader with some guidelines to help determine the appropriate project delivery method of choice. If the most appropriate method is one in which the Using Agency has limited experience, they should consider getting external assistance before proceeding.
Depending on the applicable legal requirements, there are limited project delivery methods with unlimited hybrids and variations. The decision of which to use should be made early in the life of the project and, preferably, during the Predesign phase.
No decision should be made, however, until the parties have agreed on what delivery methods are available and what they are called. Once this initial discussion has been completed, the unique requirements of the project should be considered and tested against the attributes of each of the delivery methods. When the most appropriate delivery method has been determined, then all external factors, such as legal requirements and funding availability, should be considered.
Without providing all of the answers, this section hopes to help the Using Agency answer the following questions:
What is the list of project delivery methods? Do we have consistent definitions for each method? Which method is more appropriate for a particular project? Why is a particular method more appropriate? If the reader, by applying the major factors outlined in Section 4 is able to answer the last question, "Why do I think a particular method is most appropriate?", the goal of this section will be accomplished.
2. BACKGROUND PROJECT DELIVERY IN THE STATE OF GEORGIA
Honoring the Public Trust The State of Georgia strongly supports full and open competition among general and specialty contractors and their suppliers and service providers. The construction industry's health and integrity depends on every qualified firm having an equal opportunity to compete. Public owners must be diligent in honoring the public trust while searching for more innovative and flexible approaches to construction. The public owners who choose alternative project delivery methods must ensure the method chosen is properly and fairly used to serve the public interest with quality, cost effective and timely construction. Whatever method is utilized, the selection process for both design services and construction procurement should be consistent, open, and competitive.
Given current State policy and statutory requirements (see Appendix A Georgia Code, Section 50-5-67), the "traditional" method of Design/Bid/Build will continue to be the method by which most construction will be performed in State government, but none of the methods discussed in this Manual are prohibited by State law. This section of the manual suggests that alternative project delivery methods are appropriate for the public sector if the selection process is as open, fair, objective, cost-effective, and free of political influence as the "traditional" competitive bid (Design/Bid/Build) method. Specific approval may be required for the use of the alternative methods. For instructions on how to get the necessary approvals, contact your agency procurement professionals or the GSFIC.

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Getting Started Early The State's "Predesign Guidelines", issued jointly by the Office of Planning and Budget and the Georgia State Finance and Investment Commission, indicate that a recommendation on the project delivery method should be made during the predesign phase because of the impact the method chosen has on all facets of the project, particularly the funding availability schedule to support design and construction activities.

If a Using Agency determines that their project's requirements suggest the use of an alternative delivery method, that recommendation should be included in the predesign study. The development of the construction documents is directly affected and strongly influenced by the choice of the construction delivery method.

If the Using Agency determines that the use of an alternative project delivery method is in the best interest of the project and has determined that the use of an alternative delivery is allowed by the laws, rules, regulations and polices governing that State entity, the guidelines for selection (included in Appendix F) should be reviewed. Any necessary approvals for using that method should be obtained.

3. ESTABLISHING A COMMON VOCABULARY

The purpose of this section is to establish a framework for discussions on selecting the appropriate project method. The number one lesson learned in preparing this part of the Statewide Construction Manual was not underestimating the importance of having a consensus on a list and having a consensus on the definitions of each method on the list. Taking the time to establish a list and ensuring that everyone's basic defining characteristics of each method are consistent is critical among any group trying to move to the next step... selecting the appropriate project delivery method.

a. What is a "Project Delivery Method? This manual uses the definition of a "project delivery method" as a method for procurement by which the Owner's assignment of "delivery" risk and performance for design and construction has been transferred to another party (or parties). These parties typically are a Design entity who takes responsibility for the design, and a Contractor who takes responsibility for the performance of the construction.

A note about "Related Issues" A major source of confusion and misunderstanding concerning the topic of project delivery methods is a series of topics that are actually not germane to the discussion of project delivery methods. These issues (referred to as "Related Issues"), while very important and sometimes critical in the proper application of a particular method, are not unique to any one project delivery method. Therefore, we have separated these related issues from the discussion of project delivery.

Excellent examples of the concept of a Related Issue are Program Management and Agency Construction Management. Based on the definition of a "project delivery method" used in this manual referring to the assignment of "delivery" risk for design and construction, Agency Construction Management and Program Management are addressed as management methods rather than project delivery methods. They can both be used in conjunction with any of the five delivery methods. A further discussion of these and "Other Issues Related to Project Delivery" are included in Appendix C.

What is "Price"?

To appreciate the following explanation of the difference between Competitive Sealed Bids, and the two types

of Competitive Sealed Proposals, Cost and Qualifications, it is helpful to have an understanding of the Total

Project Cost (TPC). It is recommended that caution is used anytime the word "price" is used and further clarification be offered to better determine which element(s) of the Total Project Cost is being referred to when the word price is mentioned.

Understanding the differences in the selection processes with alternative project delivery methods requires an understanding of how total construction costs are categorized. The three categories are 1) Construction Cost of the Work, 2) General Conditions, and 3) Contractor's Fee. Depending on the delivery method chosen one or more of these may be part of the "price" portion of the competition

Definition of "Construction Cost of Work": Generally defined as the direct costs of labor, materials, equipment, and associated costs incorporated into the completion of a project. Construction Cost of Work is defined in contracts where Contractor's Fees and General Conditions Costs are identified and separated from the direct cost of the project.

Construction Cost of Work General Conditions + Contractor's Fee
TOTAL "CONSTRUCTION" COST (TCC)
+Design Fees
TOTAL "DESIGN AND CONSTRUCTION" COST
+Balance of Project Costs
TOTAL "PROJECT" COST (TPC)

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b. The List of Methods The "Perfect" Project Delivery Method While no project delivery method is perfect, one method may be better suited than another based on the unique requirements for a particular project. This manual does not assume that there is only one acceptable method for project delivery. The requirements for each project should be evaluated to determine which of the various methods would most likely produce the best outcome for the State.

For the purposes of this manual, there are five primary delivery methods. The five typical project delivery methods identified for the purposes of this manual are:
1. Design/Bid/Build Competitive Bid (D/B/B) 2. Construction Management/General Contractor - Competitive Cost Proposal (CM/GC CC) 3. Construction Management/General Contractor - Competitive Qualifications Proposal (CM/GC CQ) 4. Design/Build Competitive Cost Proposal (D/B CC) 5. Design/Build Competitive Qualifications Proposal (D/B CQ) The next section provides the reader with an understanding of how this list was determined. For a more extensive explanation, including a "Project Delivery Method Translator", see Appendix D, Establishing the List of Methods.

c. Understanding the Options To better understand the project delivery method options, an appreciation of the difference between competitive sealed bids and competitive sealed proposals is essential. Language included in O.C.G.A. 3691-1 et seq., passed by the Georgia Legislature in 2000, introduced two types of solicitations, competitive sealed bids and competitive sealed proposals. This section of the manual builds on the language of O.C.G.A. 36-91-1 et seq. and further defines two types of competitive sealed proposals, cost and qualifications. Combining these solicitation types with the typical delivery methods results in the list of five methods.

The following matrix highlights the typical project delivery systems and the types of solicitations, Competitive Sealed Bids or Competitive Sealed Proposals. Notice that both CM/GC and Design/Build can be done with either type of Competitive Sealed Proposals. Each of these five variations is available to the Using Agency.

Delivery Method
Design-Bid-Build CM/GC Design/Build

Competitive Sealed Bid
X

Competitive Sealed Proposal Competitive Cost (CC) Competitive Qualifications (CQ)

X

X

X

X

Local Government Construction Methods The 2000 Georgia General Assembly enacted landmark legislation governing construction delivery methods applicable counties and local governments. While O.C.G.A. 36-91-1 et seq. does not apply to state agencies, it does provide definitions of common terms used in the design and construction industry, and more importantly, provides a useful reference for discussion.

(For State agencies not exempt from DOAS requirements, see Appendix A, an extract from the Georgia Code, Section 50-5-67, for the applicable statute governing the award of contracts.)

O.C.G.A. 36-91-4 defined two types of competitive solicitations:

1.

Competitive Sealed Bids

2.

Competitive Sealed Proposals. 1

Two Types of Competitive Sealed Proposals The following section illustrates the types of solicitations and introduces the two types of Competitive Sealed Proposals, Competitive "Cost" Proposals and Competitive "Qualifications" Proposals:

1 A third type of proposal process, a pure Qualifications Based Selection, with no element of price competition at all, is rarely, if

ever, recommended, and then only in very special circumstances and coordination with GSFIC and the Attorney General.

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Types of Solicitations (Per Georgia O.C.G.A. 36-91-1 et seq.):
Competitive Sealed Bids:
"A method of soliciting public works construction contracts whereby the award is based upon the lowest responsive, responsible bid..."
COMPETITIVE SEALED BID
Pricing of the Total Construction Cost (TCC), including the Construction Cost of Work, is the selection criteria. Qualifications are not a selection criteria2
Competitive Sealed Proposals:
"A method of soliciting public works construction contracts whereby the award is based upon criteria identified in a request for proposal..." There are two types of Competitive Sealed Proposals:
COMPETITIVE COST PROPOSALS
Qualifications are weighted selection criteria Pricing of the Total Construction Cost (TCC), including the Construction Cost of Work, is a selection criterion
COMPETITIVE QUALIFICATIONS PROPOSALS
Qualifications are weighted selection criteria Construction Cost of Work is not a selection criterion Amount of Fee and/or General Conditions are typically factors
Relating O.C.G.A. 36-91-1 et seq. to the List of Methods The following graphic illustrates how the O.C.G.A. 36-91-1 et seq. language (Competitive Sealed Cost and Competitive Sealed Proposal) relates to the list of methods included in this manual:
How O.C.G.A. 36-91-1 Relates to the List of Methods
O.C.G.A. 36-91-1

Competitive Sealed Bids

Competitive Sealed
Proposals

Competitive Cost
Proposals

Competitive Qualifications
Proposals

Design/Bid/Build
Competitive Bid

CM/GC Competitive
Cost Proposal

Design/Build Competitive
Cost Proposal

CM/GC Competitive Qualifications
Proposal

Design/Build Competitive Qualifications
Proposal

2 However, Prequalification of contractors is possible for determining which contractors are eligible to compete for a particular project or

groups of projects, and is not excluded by this method.

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Construction Selection Criteria The influence that the selection method has on the ultimate outcome of a project is significant enough to essentially create different delivery methods. Thus, the following graphic is a look at how the contractor selection criteria differ with each method.
If construction cost of work is weighted 100%, then you are on the left side of the Contractor Selection Criteria graphic and you are using traditional Design/Bid/Build. If construction cost of work is a factor in your selection (weighted anywhere between 0% and 100%), then you are in the center of the graphic.
If construction cost of work is not a factor in your contractor selection, then you are on the right side of this graphic. The contractor's fee, general conditions, experience, or experience of the team might all be criteria, but on the right side, construction cost of work is not. The center and the right side basically represent the two types of competitive sealed proposals.

Contractor Selection Criteria

Competitive Sealed Bids

Competitive Sealed Proposals

D/B/B
Competitive Sealed Bids
Total Construction
Cost (TCC)

Design/Build or CM/GC
Competitive Cost
Proposals
Construction Cost of Work is a Factor in Contractor Selection
Qualifications

Design/Build or
CM/GC
Competitive Qualifications
Proposal
Construction Cost of Work
not a Selection Criteria

Construction Cost of Work

Summary The following graphic is a summary of the Delivery Methods and the types of solicitations:

Delivery Method

Design/Bid/ Build

CM/GC

Design/Build

Type of Solicitation
O.C.G.A. 36-91-1 terminology

Competitive Sealed Bid

Competitive Cost Proposal

Competitive Sealed Proposals

Competitive Qualifications
Proposal

Competitive Cost Proposal

Competitive Qualifications
Proposal

Designer Basis of Award
(Typically Selected by:)

Total Construction Cost (TCC) is the Selection Criteria

Construction Cost of Work is a Selection
Criteria

Qualifications
Separate Contract
(Owner)

Total Construction
Cost and Other Factors
Qualifications
Separate Contract
(Owner)

Construction Cost of Work is not a Selection Criteria
Qualifications
May include fee and general conditions

Construction Cost of Work is a
Selection Criteria (design included)
Total Construction Cost (plus design) and Other Factors

Construction Cost of Work is not a Selection Criteria
Qualifications
May include fee and general conditions

Qualifications Separate Contract

Competition on Cost and/or Design
Single Contract

(Owner)

(Design/Builder)

Qualifications
Single Contract
(Design/Builder or Owner)

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The above section provided some insight into how and why this list of delivery methods was settled on for this manual. In Appendix B, "Establishing the List of Methods", a more extensive explanation is offered. In addition, a "Project Delivery Method Translator" is provided in Appendix D.
Since there are no industry standard definitions for each of the project delivery methods, different characteristics have been used to uniquely define each project delivery method. Given the lack of a standard set of definitions, the State has started by sharing their list of methods and the corresponding definitions used for each method. Each method is defined by a set of unique characteristics that was identified for purposes of establishing a common vocabulary for this document.
The intent is not to say that this information is "right", but rather to share the characteristics that the State has chosen. Readers can use the Translator included in the appendix to align their own defining characteristics and list of methods with the methods described herein. The next section shares these unique characteristics and show how they are applied to each of the delivery methods.
d. Defining the Project Delivery Methods The following section provides the definitions chosen for each of the project delivery methods. In order to have a definition that works in as many situations as possible, the State limited the number of characteristics used to define each method to three characteristics. By having a "unique" combination of these three characteristics, each method is "uniquely" defined.
There are many "other" characteristics that apply to each of these methods. Some of these "other" characteristics are typical characteristics of a particular delivery method, but are not used in this manual as a "unique" defining characteristic. The following example explains why.
Preconstruction services, for example, are typically provided with the CM/GC project delivery method. Are preconstruction services essential to the definition of this method? Could one use CM/GC, hiring a contractor based on criteria other than low price, after the design is already complete and the need for preconstruction services no longer required? Would this still be CM/GC? Based on the definition used in this manual, the answer is yes.
If preconstruction services were a "unique" characteristic, then you would have to have two types of CM/GC, one with and one without preconstruction services. This would not be wrong or right. The challenge would be where to stop? The more characteristics used to define a delivery method, the more "unique" combinations and thus, more delivery methods you would end up with on your list.
The goal was to keep the definitions used in the manual as broad as possible so they will work with most industry accepted definitions. Therefore, for purposes of this manual, characteristics such as preconstruction services are considered one of the "other" characteristics (though typical) of CM/GC, but not a "unique" defining characteristic of CM/GC.
The three characteristics chosen to define each method through the unique combinations they create are:
1. Are the Design and Construction Contracts Combined or Separate? 2. Is Construction Cost of Work a selection criterion? 3. Is Total Construction Cost the sole selection criterion?
The unique combination of characteristics is listed for each method below. Some "other" characteristics that are typical of each method are provided, as well as an overview of the typical Phases of each delivery method.

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Defining Design/Bid/Build - Unique Characteristics of D/B/B

Design-Bid-Build

Design/Bid/Build (D/B/B) is the most common project delivery method. It is often

(Two Separate Contracts for referred to as the "traditional" method. There are three prime players: owner, designer

Design & Construction) (architect) and builder (general contractor)

State of Georgia

Number of Contracts? Two independent contracts (owner-architect and ownergeneral contractor)

Cost of Work a Factor in Contractor Selection? Yes

Design Professional

General Contractor

Total Construction Cost (TCC) the sole basis of selection? Yes - Contractor selection: Based on Total Construction Cost with the award going to the lowest responsible and responsive bidder.

Other Characteristics of Design/Bid/Build

Relationship of Phases: linear sequencing of each of the project phases
Ability to Bring Contractor on Board During Design: No
Risk Allocation: Design Risk (quality) allocated to Designer; Construction Risk (cost and schedule) allocated to Contractor after design is complete and completion of Bid & Award Phase; Owner is responsible for adequacy and completeness of design.

Design/Bid/Build

PHASES DESIGN/BID/BUILD
Predesign The scope of the project and expectations of quality are established by the Using Agency and its consultants. A delivery method is selected and corresponding budget and schedule are also established.

NEED
Predesign Design Award Construction Occupancy

Design - When the Predesign has been completed, the owner selects and engages the design team for the design and preparation of construction documents.
Award When design documents are complete, they are used for construction bidding. A contractor is selected based on the lowest responsible and responsive price, and construction cost commitments are made.

Construction The owner contracts for construction with the general contractor and the project is built.

Occupancy After the construction of the entire project has been completed, the Contractor leaves the site to allow for move-in (installation of owner-furnished equipment and furnishings) and occupancy. If arrangements are made in advance, certain areas of the project (partial occupancy) can be occupied prior to the completion of the entire project.

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Defining CM/GC Competitive Cost Unique Characteristics of CM/GC CC

CM/GC

(also referred to as CM At-Risk, Competitive Cost)

(Two Separate Contracts for Design & Construction) There are three prime players: owner, designer (architect) and builder (CM/general contractor)

State of Georgia

Number of Contracts? Two independent contracts (owner-architect and owner-cm/gc)

Cost of Work a Factor in Contractor Selection? Yes

Design Professional

CM/ GC

Total Construction Cost (TCC) the sole basis of selection? No - CM/GC selection: Based on some weighting of Total Construction Cost with the award going to the CM/GC that best meets the predefined selection criteria. Designer selection: Qualifications based.

Other Characteristics of CM/GC Competitive Cost Proposal Relationship of Phases: Can accommodate overlapping of each of the project phases
Ability to Bring Contractor on Board During Design: Yes
Risk Allocation: Design Risk (quality) allocated to Designer; Construction Risk (cost and schedule) allocated to CM/GC at the time of selection based on design at the point in time of the selection. Owner is responsible for adequacy and completeness of design.

CM/ GC

PHASES CM/GC Competitive Cost Proposal
Predesign The scope of the project and expectations of quality are established by the Using Agency and its consultants. A delivery method is selected and a corresponding budget and schedule are established.

NEED
Predesign Design Award Construction Occupancy

Design - When the Predesign has been completed, the owner selects and engages the design team for the design and preparation of construction documents.
Award Generally prior to the completion of the design documents, a CM/GC is selected based on the lowest responsible and responsive price, and a Guaranteed Maximum Price for construction is established.
Construction The owner contracts for construction with the CM/GC who then contracts with the various trade contractors using cost as the primary selection criteria. The CM/GC can be available during the final design phase to assist in constructability and budget reviews. Work can begin as soon as phased construction documents are completed.

Occupancy After the construction of the entire project has been completed, the Contractor leaves the site to allow for move-in (installation of owner-furnished equipment and furnishings) and occupancy. If arrangements are made in advance, certain areas of the project (partial occupancy) can be occupied prior to the completion of the entire project.

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Defining CM/GC Competitive Qualifications Unique Characteristics of CM/GC CQ

CM/GC

(also referred to as CM At-Risk, Competitive Qualifications)

(Two Separate Contracts for Design & Construction) There are three prime players: owner, designer (architect) and builder (CM/general contractor)

State of Georgia

Number of Contracts? Two independent contracts (owner-architect and owner-cm/gc)

Cost of Work a Factor in Contractor Selection? No

Design Professional

CM/ GC

Total Construction Cost (TCC) the sole basis of selection? No - CM/GC Selection: Qualification Based and not base on any weighting of the Construction Cost of the Work. Rather selection is based on weighting of predefined criteria, with the award going to the CM/GC that best meets the predefined selection criteria. Designer Selection: Qualifications Based.

Other Characteristics of CM/GC Competitive Qualifications Proposal

Relationship of Phases: Can accommodate overlapping of each of the project phases
Ability to Bring Contractor on Board During Design: Yes
Risk Allocation: Design Risk (quality) allocated to Designer; Construction Risk (cost and schedule) allocated to CM/GC after design is complete enough to allow all parties to mutually agree; Owner is responsible for adequacy and completeness of design.

PHASES CM/GC Competitive Qualifications Proposal

CM / GC
NEED
Predesign Design Award Construction Occupancy

Predesign The scope of the project and expectations of quality are established by the Using Agency and its consultants. A delivery method is selected and a corresponding budget and schedule are also established . Design - When the Predesign has been completed, the owner engages the design team for the design and preparation of construction documents for the project.
Award Generally prior to the completion of the design documents, a CM/GC is selected based on the qualifications of the CM/GC. The cost of the CM/GC's Fee and General Conditions may also be a consideration.
Construction The owner contracts for construction with the CM/GC who then contracts with the various trade contractors based on selection criteria agreed upon by the Owner. The CM/GC can be available during the final design phase to assist in constructability and budget reviews. Work can begin as soon as phased construction documents are completed. The establishment of the Guaranteed Maximum Price can be postponed until more complete design and cost information is available.
Occupancy After the construction of the entire project has been completed, the Contractor leaves the site to allow for move-in (installation of owner-furnished equipment and furnishings) and occupancy. If arrangements are made in advance, certain areas of the project (partial occupancy) can be occupied prior to the completion of the entire project.

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Defining DESIGN/BUILD Competitive Cost Unique Characteristics of D/B CC Design/Build (Competitive Cost) (Single Contract for Design & Construction) The designer (architect) and the builder (general contractor) are combined into one
entity.

Owner

A/E Bridging
Consultant
(optional)

Number of Contracts? One contract (owner-design/builder) There are two prime players: Owner, and Design/Builder.
Cost of Work a Factor in Contractor Selection? Yes

Design/Build Entity

Total Construction Cost (TCC) the sole basis of selection? No - Design/Builder selection is based on some weighting of Total Construction Cost including Construction Cost of the Work with the award going to the Design/Builder that best meets the predefined selection criteria.

Other Characteristics of Design/Build Competitive Cost Proposal (D/B CC)
Relationship of Phases: Can accommodate overlapping of each of the project phases
Ability to Bring Contractor on Board During Design: Yes
Risk Allocation: Design Risk (quality) and Construction Risk (cost and schedule) allocated to Design Builder at the time of selection based on design at the point in time of the selection. Design/Builder is responsible for adequacy and completeness of design and subsequently the entire project.

PHASES Design/Build Competitive Cost Proposal (D/B CC)

Design/Build
NEED
Predesign Award Design Construction Occupancy

Predesign The scope of the project and expectations of quality are established by the Using Agency and its consultants. A delivery method is selected and a corresponding budget and schedule are also established.
Design Based on a set of design criteria provided by the Owner, Design/Builder prepares phased construction documents. Contractor is available during this period for constructability and budget reviews.
Award Concurrent award of both the design and construction phases. Guaranteed Maximum Price is usually established at selection.
Construction Design/Builder selects trade contractors, usually with cost as the primary selection criteria. Construction can begin as soon as phased construction documents are available.
Occupancy After the construction of the entire project has been completed, the Contractor leaves the site to allow for move-in (installation of owner-furnished equipment and furnishings) and occupancy. If arrangements are made in advance, certain areas of the project (partial occupancy) can be occupied prior to the completion of the entire project.

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Defining DESIGN/BUILD Competitive Qualifications Unique Characteristics of D/B CQ

Design/Build (Competitive Qualifications) (Single Contract for Design &
Construction)

Owner

A/E Bridging
Consultant
(optional)

Design/Build Entity

The designer (architect) and the builder (general contractor) are combined into one entity.
Number of Contracts? One contract (owner-design/builder) There are two prime players: Owner, and Design/Builder.
Cost of Work a Factor in design/builder selection? No
Total Construction Cost (TCC) the sole basis of selection? No - Design Builder selection is not based on any weighting of the Construction Cost of the Work. Rather selection is based on weighting of predefined criteria, with the award going to the Design/Builder that best meets the predefined selection criteria.

Other Characteristics of Design/Build Competitive Qualifications Proposal (D/B CQ)
Relationship of Phases: Can accommodate overlapping of each of the project phases
Ability to Bring Contractor on Board During Design: Yes
Risk Allocation: Design Risk (quality) and Construction Risk (cost and schedule) allocated to Design/Builder after design is complete enough to allow all parties to mutually agree. Design/Builder is responsible for adequacy and completeness of design and subsequently the entire project.

Design/Build

PHASES Design/Build Competitive Qualifications Proposal (D/B CQ)
Predesign The scope of the project and expectations of quality are established by the Using Agency and its consultants. A corresponding budget and schedule are also established.

NEED
Predesign Award Design Construction Occupancy

Design Based on a set of design criteria provided by the Owner, Design/Builder prepares phased construction documents. Contractor is available during this period for constructability and budget reviews. Owner and Using Agency can participate in the process.
Award Concurrent award of both the design and construction phases. Establishment of Guaranteed Maximum Price can be postponed until more accurate scope and cost information are available.

Construction Design/Builder selects trade contractors, usually with Owner input. Construction can begin as soon as phased construction documents are available.

Occupancy After the construction of the entire project has been completed, the Contractor leaves the site to allow for move-in (installation of owner-furnished equipment and furnishings) and occupancy. If arrangements are made in advance, certain areas of the project (partial occupancy) can be occupied prior to the completion of the entire project.

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4. SELECTING AN APPROPRIATE PROJECT DELIVERY METHOD - THE MAJOR FACTORS

The Major Factors Having established a delivery method vocabulary, the next step is to determine which is most appropriate for a particular project. The Using Agency should consider the major factors influencing the project in question and then consider the requirements of the project in light of the unique characteristics of each of the various project delivery methods. By applying these factors, the Using Agency should be able to not only recommend a delivery method, but also, be able to answer the question, "Why am I recommending a particular delivery method?"

Just selecting the "right" delivery method is not enough. There are numerous details to be addressed to ensure the desired results are achieved. Requests for Proposals that clearly spell out expectations and matching the right selection criteria with the right project delivery method are examples of the type of issues that must be addressed when selecting and implementing any project delivery method. Agencies looking for assistance with these should contact the GSFIC.

Though there are many factors, by the time a few "major" factors are applied, it becomes apparent which method is most appropriate. These Major Factors are divided into three categories, "Project Related Factors", "External Factors, and Contributing Factors".

Project Related Factors
Project Complexity and Scope Definition Need/Desire for Contractor Input Schedule Potential for Changes during Construction Quality Definition and Verification Desired Contractor Relationship

External Factors
State Budget and Funding Cycle Availability/Capability of In-house Resources Regulatory and Statutory Requirements

Contributing Factors
Owner Control and Risk Allocation Recommendations/Experience of Others

These are certainly not all that need to be considered, but addressing these major factors will guide the selection of the most appropriate delivery method. Furthermore, addressing these early in the project cycle will increase its chances for success.

Project Related Factors should be considered first. Then, if there are external factors that prevent use of the desired method, the external factors may be challenged. If no single delivery method can be selected by applying the Project Related Factors and the External Factors, the Contributing Factors should be considered.

Applying the Major Factors

Project Related Factors

Most Appropriate Delivery Method

External Factors
If More Than One?

If One?
Contributing Factors

For each factor, there is a "critical question" that should be considered. With each factor below, this critical question is identified in brackets. The amount of control an Owner will have throughout the process, and how and when the Owner allocates and manages the project risks, may both be affected by how each of the factors is addressed.
As a tool to assist the Using Agency, a one-page summary of these Major Factors is attached as Appendix F The Major Factors (One Page Overview).

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a. PROJECT RELATED FACTORS (WITH DISCUSSION)
Project Complexity and Scope Definition
[Critical Question: Is the scope of work difficult to define?]
Each Using Agency is unique and will have special requirements that could have a major impact on determining the proper method of delivery. Similarly, the complexity of the project and the ability to fully define the scope, early in the process, could also have an impact on determination of the appropriate project delivery method.
The three critical points in the project relative to the need to fully define the scope are: 1. Prior to selection 2. After selection, prior to establishing quality, cost, and schedule 3. After establishing quality, cost, and schedule
Each delivery method will require different levels of scope definition at each of these critical points.
The inability to fully define scope early in the process will have a direct impact upon the Using Agency's ability to manage scope and cost increases later in the project.
Ramifications: If it would be difficult or impossible to produce a set of drawings and specifications which will fully describe the work in question (e.g. a renovation of an existing building), then one of the qualifications based selection methods should be considered.
Need/Desire for Contractor Input
[Critical Question: Is Contractor input such as design, schedule, budget and constructability reviews, during design required or desired?]
There are many times when the demands of the project are unique or difficult to quantify. In these instances, having the contractor on board during the design phase can be of great value. The contractor can assist in schedule development and monitoring, in constructability and budget reviews, in factoring in current market conditions and in locating and procuring long lead equipment items and trade contractors necessary for the work, but in high demand. If this need or desire exists, then one of the alternative delivery methods should be used.
Throughout a project, the Using Agency will make decisions based on their definition of value. What varies from one project delivery method to another is who (which team member) is providing the information and when during the project sequence.
This manual looks at two broad types of information provided, 1) Design Solution, and 2) Constructability (including cost and schedule review of design solutions). What differs with each delivery method is who is providing the information and when are they brought on board. Also, when the information is being provided, and whether the information is intended to be provided at specific points in time or continuously throughout the process will depend on which delivery method is chosen.
Ramifications: If the assistance of the contractor is desired during the design phase to assist in defining the scope, constructability reviews, schedule determination, or budget confirmation, then one of the alternative delivery methods should be considered.
If there are significant schedule, budget or constructability issues, it can be helpful for the decision maker to review these issues during the design phase. Many times the designer does not have the range of experience in the actual construction of a project to adequately address these issues.

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Changes During the Construction Phase
[Critical Question: Is there a significant potential for changes during the construction phase?]
Whenever the scope is difficult to define or other issues tend to indicate that there is a high potential for changes during the construction phase, careful consideration should given on how this will be handled. If one of the competitive cost delivery methods (D/B/B, CM/GC CC, D/B CC) is used, as much of the work as possible should be quantified before a lump sum cost is agreed upon. If possible, one of the competitive qualifications methods (CM/GC CC, D/B CC) should be considered.
Ramifications: If the scope of the project is likely to change during construction (e. g., as a result of changing technology or personnel), then one of the qualifications based delivery methods should be considered. An example might be a project that is intended to have state-of-the-art technology, that either does not exist yet or is likely to change. In this example, the non-existent or changing technology may be an almost certain cause of required changes throughout all phases of the project including during the Construction phase.
Schedule
[Critical Question: Is overlap of design and construction phases necessary to meet schedule requirements?]
Schedule is always a consideration on construction projects and is usually one of the primary reasons for the selection of an alternative delivery method. During the Predesign Phase, a preliminary master schedule should be developed. This master schedule will include an estimated duration for each phase of the project: need identification, project identification and planning, predesign, design, award, construction, and occupancy.
Simultaneously, the State entity should evaluate their required date for occupancy. Comparing this date to the date generated from early versions of the preliminary master schedule will indicate whether any acceleration or overlapping of any of the phases may be required. "Traditional" Design/Bid/Build is inherently a linear, sequential process as opposed to Design/Build or CM/GC, each of which is capable of overlapping of the phases in the design and construction process.
Ramifications: If the project requires a schedule that can only be maintained by overlapping of the design and construction phases, then one of the alternative delivery methods should be considered.
Quality Definition and Verification
[Critical Question: Will the Owner utilize outside resources to verify quality?]
The Owner's assurance that there is a responsible person designated to verify quality during construction will directly relate to the Owner's in-house resource availability, and to what party the Owner assigns the role of project management on each specific project. How much direct influence an Owner has on how the quality is defined and verified will be affected by the decision of which method is chosen.
The Owner's definition of quality must be identified and communicated for the record early in the process. The quality of a construction project can be characterized by the following:
Functional quality the ability of the facility space to meet the Using Agency's program requirements (as well as code and safety requirements)
Systems quality the ability of the various building systems to meet the Using Agency's defined needs
Aesthetic (scope) quality the level of design and finish as defined in the design documents Workmanship quality the physical execution of the design
All are closely related and how they are defined and verified should be considered when determining which project delivery method to use.

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In the standard Design/Bid/Build delivery method, the definition of quality is solely dependent upon the architect's ability to understand and translate the owner's needs. In the CM/GC delivery methods, this task is still assigned to the architect though with assistance from the contractor. In design/build the contractor/architect assumes these duties. Production of quality during the construction phase is, in every method, the primary responsibility of the contractor, but the verification of that quality will vary between the methods. The architect, as the owner's representative, is responsible in Design/Bid/Build and construction management. The Owner assumes this role in design/build.
Ramifications: If in-house resources are not available, then extra caution should be taken when using design-build. If design/build is desired and in-house resources are not available, outside resources should be engaged to assist in verifying that the quality desired by the owner is incorporated.
Desired Contractual Relationship
[Critical Question: Does the Owner wish the Contractor to have a fiduciary responsibility?]
How the Owner selects the construction entity and the resulting contractual relationship created will affect what information is required to be provided and when. For example, whether or not the State agency and their consultants are participants in the specialty contractor and vendor selection process and the information shared during this process, will be a direct result of the contractual relationship created. Access to all available information may or may not be necessary or desired. The Using Agency should be aware that the selection of a project delivery method and the resulting contractual relationship would likely affect the manner in which information may be required to be provided.
Legally, the fiduciary relationship arises automatically in several situations, however the specific form of fiduciary relationship contemplated in this document is the one arising when a person or firm has a duty to act for another on matters falling within a contractual relationship. More specifically, a person or entity acting in a fiduciary relationship to the owner owes the owner the duties of good faith, trust, confidence and candor, and must exercise a high standard of care in managing money and property. It is a standard of care defined by Judge Cardozo in a landmark decision as being much higher than the standards of the marketplace; but, as used in the relationship envisioned here, the standard is not so high as the "highest standard" (which is reserved for trustees, attorney- client, and the like). Instead, as between the owner and the contractor in contracts with a "cost-plus" relationship (regardless of whether or not there is a guaranteed maximum price), it is a relationship of good faith, trust, and candor that requires a the contractor to act in the best interests of the owner even if that action is detrimental to the contractor.
A Competitive Cost Proposal selection based on Total Construction Cost will generally result in a contractual relationship that is not a fiduciary one. This will affect the timing of the availability of information and the ability of the Owner to make use of that information. If the construction entity is not on board during the design (typical in Design/Bid/Build when cost is the only consideration), collaboration at this stage is not an issue. If the project scope is well understood, easily defined and easily priced without a collaborative process involving the construction entity, then a "traditional" lump sum (i.e., Design/Bid/Build) delivery method may be most appropriate. If, however, some contractor involvement during the design phase is needed, a Competitive Cost Proposal, that includes considerations other than Total Construction Cost, can be used in selecting the Construction Manager/GC or the Design/Builder. Nonetheless, the contractual relationship developed is generally very similar to Design/Bid/Build concerning access to information.
A Competitive Qualifications Proposal (the Construction Cost of Work not a factor at the time of selection) will create a fiduciary relationship. This also allows complete and timely access to the contractor's information. If the project scope is difficult to define, or matching the scope to the project budget is anticipated to be difficult, then having a collaborative process could prove to be advantageous. In such situations, a qualificationsbased selection might be more appropriate.
Ramifications: If the project necessitates an open collaborative relationship among the parties, then a Competitive Qualifications selection should be considered.

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b. EXTERNAL FACTORS
State Budget and Funding Cycle
[Critical Question: Is funding available for construction at initiation of design?]
The State's budget and funding cycle could have an impact on the timing, sequencing and a subsequent recommendation of a project delivery method. There are three funding combinations for design and construction addressed by this manual. One is "Complete Project Funding" which would include design and construction funding all at one time. The second is "Phased Project Funding" which is one funding for design, and a second separate funding for construction. The third, is "Phased Construction Funding" which is one funding for design and then funding of multiple components of construction each funded separately.
Ramifications: While any of the methods will work with Complete Project Funding, any phasing of the funding can have a major impact on the decision of which method to select. For example, without Complete Project Funding, Design/Build is not feasible.
Capability of Agency In-House Resources
[Critical Question: Is agency in-house personnel experienced in alternative delivery methods or, if not, will in-house personnel be augmented by other agency or contracted personnel?]
The responsibility for success on every State construction project ultimately rests with the Agency requesting the funds for the project. Thus, the responsibility for overseeing and managing the entire process resides with the Using Agency. The process is typically handled by a "project manager", whether formalized or not. For a typical State project, this responsibility can be fulfilled in one of several ways including:
1) In-house resources 2) Another state agency 3) A third-party consultant
One factor to consider is the level of expertise and experience of the Using Agency embarking on the construction project. In deciding which of the various project delivery methods to use, the availability of Using Agency staff resources and experience should be a major consideration. Some agencies perform construction routinely and have capable and available staff to manage all phases of the project. Others seldom involve themselves in any construction and thus need to better leverage in-house resources.
Support from other State agencies is available, as an option, such as through the Construction Division of the Georgia State Finance and Investment Commission. Other agencies may also have resources to be shared.
Obtaining assistance for the Using Agency from a third party project or program manager in certain circumstances may be considered. There are unique requirements for the State construction process. This should be taken into consideration when evaluating the use of third-party resources.
Ramifications: Regardless of the delivery method selected, if the Using Agency is inexperienced in management of a capital outlay program, assistance should be obtained by contract with an experienced professional or by making arrangements for assistance from another state agency that has that experience. This is particularly true if an alternative delivery method is desired.
Regulatory & Statutory Requirements
[Critical Question: Do laws rules, regulations, etc., permit the use of an alternative project delivery method?]
Included as Appendix A is an extract from the Georgia Code, Section 50-5-67, which governs the award of contracts by the Department of Administrative Services and, with a few exceptions (i.e., the Department of Transportation, the Board of Regents, the Georgia State Financing & Investment Commission, and the various State authorities), all other State agencies. Of those agencies not covered by Section 50-5-67, most, if not all, have adopted policies and procedures that are generally similar to these requirements.

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The statutory requirements, under which a State entity undertaking a project operates, may ultimately be the deciding factor in selecting the project delivery method. The law, rules, regulations and policies of the Department of Administrative Services (DOAS) govern the procurement process for most State agencies. Others have their own laws, rules, regulations, and policies. While it is generally safe to say that the "standard" method of Design/Bid/Build is an acceptable method for all State entities, a review of the pertinent laws, rules, regulations, and policies early in the life of the project is strongly recommended in order to allow time to obtain approval for use of an alternative project delivery method. Regulations within a given agency may also determine which project delivery method can be used.
For example, the bylaws of the Georgia State Financing and Investment Commission require that all contracts be awarded based on competitive sealed bids unless an alternative delivery method is approved by the Executive Secretary of the Commission (who also serves as the Director of the Construction Division). The Director will base his decision on the rationale provided by the requesting agency and the factors discussed in this section of the Manual.
Ramifications: The decision on what delivery method is most appropriate must be made early in the predesign phase of the project and properly documented so that sufficient time and justification can be prepared to gain approval for an alternative delivery method if that method is most appropriate.
c. CONTRIBUTING FACTORS (TO BE CONSIDERED FOLLOWING PROJECT RELATED AND EXTERNAL FACTORS)
Owner Control and Risk Allocation
[Critical Question: Does the proposed delivery method allocate the risks in an acceptable manner?]
Risk is the potential for failure where the liability and consequence exist for failing to achieve cost, schedule and quality objectives.
The risks associated with the design and construction process are generally not affected by the chosen project delivery method. However, the timing and the allocation of the risk do vary depending on the project delivery method. Therefore, each delivery method provides a different approach to allocating the risks and typically will result in timing differences in transferring the various risks. Any first time user of any project delivery method is cautioned to be sure they understand these differences.
Because of legal requirements, tradition and the inherent conservatism of most public agencies, the State tends to accept as little risk as possible. Nonetheless, the degree of risk assumed by the design and/or construction party should be directly proportional to the cost associated with the project. Generally speaking, the risk associated with a construction project should be allocated to the party with the best ability to control and manage that risk. The purchase and the requirement for purchase of insurance coverage is just one way in which Owners, designers, and contractors try to allocate and control some of the risk.
Ramifications: In selecting the appropriate delivery method, a thorough review of the potential risks and their allocation should be performed. Then, the Using Agency should evaluate its ability and willingness to assume the risk inherent to the method selected. To accomplish this, each of the project related factors should be reviewed and considered.
Recommendations and Experience of Others
[Critical Question: Has the proposed delivery system been recommended by other State Agencies?]
Everyone has a tendency to be biased based upon his or her own personal previous experiences.
It is valuable to consider the prior experience and recommendations of other State agencies that have been involved in construction programs. This does not mean that a project should be performed in a particular manner because "that's the way we've always done it", nor does it mean that a new method should be tried because of someone's reported good experience with it. The special requirements of each particular project should govern the selection of the method of project delivery, but experience is always a useful factor in making these determinations.

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Because the majority of projects constructed for State entities are generally routine projects that can be successfully undertaken by most competent general and specialty contractors, prequalification may not be necessary. However, on some projects prequalification of contractors and specialty contractors should be considered. Prequalification can be used with any of the delivery methods, but some are more appropriate for prequalification than others. Ramifications: If more than one delivery method is deemed appropriate for use after consideration of all the other factors, the Using Agency should select that method with which they and others have had the most experience and the greatest degree of success. 5. SELECTION DECISION TREE (FUTURE) A selection decision tree based on the questions listed above, as well as other factors, is under production and will be included as an aid in future editions of this section.
[End of Selecting Appropriate Project Delivery Method - Recommended Guidelines]

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APPENDIX A - GEORGIA CODE, SECTION 50-5-67

50-5-67.

(a) Except as otherwise provided in this Code section, contracts exceeding $100,000.00 shall be awarded by competitive sealed bidding. If the total requirement of any given commodity will involve an expenditure in excess of $250,000.00, sealed bids shall be solicited by advertisement in the Georgia Procurement Registry established under subsection (b) of Code Section 50-5-69 and in addition may be solicited by advertisement in a newspaper of state-wide circulation at least once and at least 15 calendar days, except for construction projects which shall have 30 calendar days allowed, prior to the date fixed for opening of the bids and awarding of the contract. Other methods of advertisement, however, may be adopted by the Department of Administrative Services when such other methods are deemed more advantageous for the particular item to be purchased. In any event, it shall be the duty of the Department of Administrative Services to solicit sealed bids from reputable owners of supplies in all cases where the total requirement will exceed $100,000.00. When it appears that the use of competitive sealed bidding is either not practicable or not advantageous to the state, a contract may be entered into by competitive sealed proposals, subject to the following conditions:

(1) This method of solicitation shall only be used after a written determination by the Department of Administrative Services that the use of competitive sealed bidding is not practicable or is not advantageous to the state;

(2) Proposals shall be solicited through a request for proposals;

(3) Adequate public notice of the request for proposals shall be given in the same manner as provided for competitive sealed bidding;

(4) Proposals shall be opened in the same manner as competitive sealed bids. A register of proposals shall be prepared and made available for public inspection;

(5) The request for proposals shall state the relative importance of price and other evaluation factors;

(6) As provided in the request for proposals and under regulations to be developed by the Department of Administrative Services, discussions may be conducted with reasonable offerors who submit proposals determined to be reasonably susceptible of being selected for award, for the purpose of clarification to assure full understanding of and responsiveness to the solicitation requirements. Offerors shall be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals; and such revisions may be permitted after submissions and prior to award for the purpose of obtaining best and final offers. In conducting discussions there shall be no disclosure of any information derived from proposals submitted by competing offerors; and

(7) The award shall be made to the responsible offeror whose proposal is determined in writing to be the most advantageous to the state, taking into consideration price and the evaluation factors set forth in the request for proposals. No other factors or criteria shall be used in the evaluation. The contract file shall contain the basis on which the award is made.

(b) Except as otherwise provided for in this part, all contracts for the purchases of supplies, materials, or equipment made under this part shall, wherever possible, be based upon competitive bids and shall be awarded to the lowest responsible bidder, taking into consideration the quality of the articles to be supplied and conformity with the standard specifications which have been established and prescribed, the purposes for which the articles are required, the discount allowed for prompt payment, the transportation charges, and the date or dates of delivery specified in the bid. Competitive bids on such contracts shall be received in accordance with rules and regulations to be adopted by the commissioner of administrative services, which rules and regulations shall prescribe, among other things, the manner, time, and places for proper advertisement for the bids, indicating the time and place when the bids will be received; the article for which the bid shall be submitted and the standard specification prescribed for the article; the amount or number of the articles desired and for which the bids are to be made; and the amount, if any, of bonds or certified checks to accompany the bids. Any and all bids so received may be rejected.

(c) When bids received pursuant to this part are unreasonable or unacceptable as to terms and conditions, are noncompetitive, or the low bid exceeds available funds and it is determined in writing by the Department of Administrative Services that time or other circumstances will not permit the delay required to resolicit

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competitive bids, a contract may be negotiated pursuant to this Code section, provided that each responsible bidder who submitted such a bid under the original solicitation is notified of the determination and is given a reasonable opportunity to negotiate. In cases where the bids received are noncompetitive or the low bid exceeds available funds, the negotiated price shall be lower than the lowest rejected bid of any responsible bidder under the original solicitation.
(d) Every bid conforming to the terms of the advertisement provided for in this Code section, together with the name of the bidder, shall be recorded, and all such records with the name of the successful bidder indicated thereon shall, after award or letting of the contract, be subject to public inspection upon request. The Department of Administrative Services shall also, within five days after the award or letting of the contract, publish the name of the successful bidder on public display in a conspicuous place in the department's office so that it may be easily seen by the public. The public notice on public display shall also show the price or the amount for which the contract was let and the commodities covered by the contract. The Department of Administrative Services shall also, within five days after the award or letting of the contract, publish on public display the names of all persons whose bids were rejected by it, together with a statement giving the reasons for such rejection. All the information required to be placed on public display in a conspicuous place at the office of the Department of Administrative Services shall also be recorded in a permanent book to be kept by the Department of Administrative Services, which record shall always be subject to public inspection upon request. Bids shall be opened in public by the Department of Administrative Services, which shall canvass the bids and award the contract according to the terms of this part. A proper bond for the faithful performance of any contract shall be required of the successful bidder in the discretion of the Department of Administrative Services. After the contracts have been awarded, the Department of Administrative Services shall certify to the various departments, institutions, and agencies of the state government the sources of the supplies and the contract price of the various supplies, materials, and equipment so contracted for.
(e) On all sealed bids received or solicited by the Department of Administrative Services, by any department, agency, board, or bureau of the state, or by any person in behalf of any department, agency, board, or bureau of the state, except in cases provided for in Code Section 50-5-58, the following certificate of independent price determination shall be used:
"I certify that this bid is made without prior understanding, agreement, or connection with any corporation, firm, or person submitting a bid for the same materials, supplies, or equipment and is in all respects fair and without collusion or fraud. I understand collusive bidding is a violation of state and federal law and can result in fines, prison sentences, and civil damage awards. I agree to abide by all conditions of this bid and certify that I am authorized to sign this bid for the bidder."

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APPENDIX B - ESTABLISHING THE LIST OF METHODS

Importance of Having a List To successfully choose the appropriate project delivery method, one should first have an understanding of what the delivery methods are and their defining characteristics. There are three steps in the process of Project Delivery Education:

First

Reach Consensus on a List of Delivery Methods

Second

Select an Appropriate Delivery Method

Third

Understand How to Implement the chosen Delivery Method3

A common error made by many project teams is to skip step one believing that all stakeholders have the same list in mind. To have a truly productive conversation on this subject, one needs to first reach a consensus on a list of delivery methods among any group trying to select the most appropriate method. After much review and consideration, the drafting committee developed a list of five methods. Again, those methods are

Design/Bid/Build Construction Management/GC Competitive Cost Design/Build Competitive Cost Construction Management/GC Competitive Qualifications Design/Build Competitive Qualifications

The five basic methods sometimes go under different names, so it is important to reach a full understanding of the various methods. Then, when presented with differing nomenclature, one can recognize the method being described. (See "Translator" below) This list is not proposed as the "right" or the perfect list. It is proposed as a framework that others can use as a basis for beginning a discussion.

Many who are primarily familiar with Design/Bid/Build, think of Design/Build as the only "alternative" delivery method. Several states' attempts at legislating alternative project delivery have been very successful at adding one or two of the methods to the traditional list of one (Design/Bid/Build). Few, however, it seems have included all five project delivery methods very clearly.

Terminology Again, since there are no industry standard definitions, everyone has chosen a slightly different set of characteristics to define each delivery method. This Project Delivery Method Translator takes this to it its simplest form, and identifies the characteristics that this manual uses to uniquely define each method. Each individual can take any delivery method, test it against these criteria, insert their own names and they will be able to align the name of their method with the names chosen here. If a delivery method cannot be categorized as a version of one of the five basic methods, the reader is encouraged to contact GSFIC for clarification and assistance.

Project Delivery Method Translator

Unique Set of Defining Characteristics of Each Method:

Design &

Construction

Contracts Combined?

No

No

Yes

No

Yes

Cost of Work a Selection Criteria?

Yes

Yes

Yes

No

No

Total Construction Cost Sole Selection

Yes

No

No

No

No

Criteria?

Insert Your Own Name
for Each Method

Names Chosen for
State of Georgia

Design-BidBuild
Competitive Bid

CM/GC
Competitive Cost
Proposal

Design/Build
Competitive Cost
Proposal

CM/GC
Competitive Qualifications
Proposal

Design/Build
Competitive Qualifications
Proposal

3 Note: This section of the manual only focuses on steps 1 and 2. For assistance with step 3, the reader should seek guidance from consultants experienced with the chosen delivery method. Suggestions on how to implement each method (step 3) will be addressed in future sections of this manual.

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APPENDIX C - OTHER ISSUES RELATED TO PROJECT DELIVERY
Since there are no standard industry definitions for each project delivery method, many different issues are often combined with the discussion of project delivery methods.
This situation has contributed to the confusion and misunderstanding concerning the topic of project delivery methods. Issues that are not unique to the discussion of project delivery methods, and in fact, could apply to almost all of the delivery methods are referred to here as "Related Issues". Prequalification for example is often mentioned as part of the description of a project delivery method, when in fact, you can prequalify with any delivery method.
These Related Issues, while very important and sometimes critical in the proper application of a particular method, are not unique to any one project delivery method. Therefore, we have separated these related issues from the discussion of project delivery. The following is a sample listing of many common "related issues" along with a brief explanation of the definition of the term as it is used in this manual:
1. Best Value Factoring criteria other than just the lowest total construction cost into the selection criteria is often called a "best value" selection process. Best value competitions typically fall into one of the two following categories: 1. Qualifications/ Price (including cost of work) 2. Price (including cost of work)/ Qualifications/ Design Element (if Design/Build) In each of these scenarios, the amount of weight placed on each of these criteria varies anywhere between zero and one hundred percent. These scenarios are typically procured with a "Two Step" Process, all with a similar Step One, RFQ process. Each, however, has slightly different Step Two, RFP and Evaluation processes. The information requested, the timing of the information requested and the evaluation of the information requested varies under each of these selection criteria combinations.
2. Bridging Hiring a designer to take the design to some point without completing the final design, and then allowing another firm, usually a design/build entity, to complete the design is referred to as bridging. The initial design firm is often referred to as the "bridging architect" and the firm completing the design is the architect of record and assumes the liability for the design.
Bridging, a common practice with design/build, can be used with either type of competitive sealed proposal, competitive cost or competitive qualifications. In fact, since a competitive cost proposal includes a weighting of the pricing of the construction cost of work, having as much design information as possible is encouraged when using a design/build competitive cost proposal. If, in this situation, in-house resources are not available to develop the design criteria then the use of a bridging architect is recommended.
3. Contract Type / Basis of Reimbursement The basis of reimbursement and the type of contractual relationship, Lump Sum, Cost-Plus, or Guaranteed Maximum, are often mentioned not only as part of the discussion on project delivery methods, but as actual project delivery methods. Indeed, there are typical contractual relationships created with each delivery method. Design-Bid-Build contracts are usually Lump Sum. Competitive Sealed Qualifications Proposal contracts, either Design/Build or CM/GC, are usually performed with Guaranteed Maximums.
However, Design-Bid-Build can be bid and then awarded as a Guaranteed Maximum, and Competitive Qualification contracts can be awarded as Lump Sum contracts. This highlights that though the basis of reimbursement and contract type (LS or GMAX) is a typical characteristic of a delivery method, it is not a defining characteristic. Therefore, the contract type is a "related issue".
4. Design Percentage of Completion The actual amount of design information available at the time of the selection process is often tied to the project delivery method. As an example, the Design-Bid-Build (D-B-B) process works best when the design information is as complete and coordinated as possible. Ideally, the design is 100% complete.
It is possible, however, to use a Design-Bid-Build process with less than complete design information. Of course, there are risks associated with this, but having a complete design is not a requirement of D-B-B. Therefore, the percentage of design is a typical characteristic of D-B-B, but not a defining characteristic, thus, making the design percentage of completion a "related issue".

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5. Fast Track Construction The term "fast-track" refers to the overlapping of two or more phases of a project. It is most commonly referred to as the overlapping of the design and construction phases. When a project is "fast-tracked", the designer provides design information to the contractor in a manner to support the sequence of construction. The contractor, in turn, starts with the construction work while the designer continues to complete the design.
Often used in reference to the Design/Build Method exclusively, fast-tracking of a project can actually occur with CM/GC as well.
6. Job Order/Task Order Contracts A Job Order/Task Order contract is a contracting method that refers to a method of reimbursement most often used when a scope of work is difficult to define. Used in lieu of a stipulated sum or guaranteed maximum, it is also often referred to as "time and material" and typically has contractual language stipulating how actual costs will be tracked and determined.
This contracting method can be used with any type of project delivery method as defined herein.
7. Management Methods Program Management and Agency Construction Management. Based on the definition of a "project delivery method" used in this manual referring to the assignment of "delivery" risk for performance of the design and construction, Agency Construction Management and Program Management are addressed as management methods rather than project delivery methods.
Since any of the Management Methods can be used in conjunction with any of the Project Delivery Methods, the subject of Management Methods is separated as a related issue and not combined with the subject of project delivery methods.
8. Past Performance The prior performance or measurement of any firm's ability to perform is that firm's Past Performance. This track record can include many different types of data, both documented and anecdotal. The information can include both objective as well as subjective evaluations.
For the purposes of this discussion on Project Delivery, past performance is generally used in one of two ways: 1) for Prequalification purposes or 2) as part of the Qualifications criteria during the selection process.
If Past Performance is used as part of the Prequalification process, it is not unique to any one Project Delivery Method. In fact, as discussed below, one can prequalify with any delivery method.
If Past Performance is used as part of the Qualifications criteria during the selection process, the weighting of the past performance can vary. All types of Competitive Sealed Proposals, Cost and Qualifications, can and usually do include some weighting of a firm's Past Performances.
9. Performance Based Selection Similar to Past Performance, Performance Based Selection is a term with several different applications. Generally, there are two typical uses of the term: 1) Performance Based Selection where the term is used interchangeably with a Qualification Based Selection (where a variety of criteria other than price are weighted into the selection); and 2) A specific type of procurement where in addition to specific selection criteria, the ultimate reimbursement for the project is tied to the actual performance of the project after it is complete, and operational.
10. Pre-qualification Prequalification is the process by which qualifications of prospective competitors are examined, prior to a formal procurement. A Using Agency may prequalify with any Project Delivery Method.

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APPENDIX D PROJECT DELIVERY TRANSLATOR (FULL SIZE)
In order to have a definition that works in as many situations as possible, the State limited the number of characteristics used to define each method to three characteristics. By having a "unique" combination of these three characteristics, each method is "uniquely" defined. There are many "other" characteristics that apply to each of these methods. Some of these "other" characteristics are typical characteristics of a particular delivery method, but are not used in this manual as a "unique" defining characteristic.
The goal was to keep the definitions used in the manual as broad as possible so they will work with most industry accepted definitions. Therefore, for purposes of this manual, characteristics such as preconstruction services are considered one of the "other" characteristics (though typical) of CM/GC, but not a "unique" defining characteristic of CM/GC. The three characteristics and their unique combinations chosen to define each method are:
1. Are the Design and Construction Contracts Combined or Separate? 2. Is Construction Cost of Work a selection criterion? 3. Is Total Construction Cost the sole selection criterion? The unique combination of characteristics is listed for each method below:

Project Delivery Method Translator

Unique Set of Defining Characteristics of Each M ethod:

Design &

C o n s tru ctio n

C o n tra c ts Com bined?

No

No

Yes

No

Yes

Cost of W ork a Selection Criteria?

Yes

Yes

Yes

No

No

Total C onstruction Cost Sole Selection

Yes

No

No

No

No

C rite ria ?

Insert Your Own Name
for Each M ethod

N am es Chosen for
State of G e o rg ia

D e s ig n -B id B u ild
Com petitive B id

CM /GC
Com petitive Cost
Proposal

D e s ig n /B u ild
Com petitive Cost
Proposal

CM /GC
Com petitive Q u a lifica tio n s
Proposal

D e s ig n /B u ild
Com petitive Q u a lific a tio n s
Proposal

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APPENDIX E - MAJOR FACTORS WORKSHEET (DETAILED VERSION) The following worksheet is a detailed analysis of the recommended Major Factors to be used to assist in the selection of a delivery method. The summary of this section is included in the Recommended Guidelines. This worksheet used during the early development of this section is offered to the reader who is interested in the expanded thought process used to refine the list of factors and verify which were indeed "major".

Delivery Method Design/Bid/Build

CM/GC

Design/Build

Contractor Selection Type of Proposal

Construction Cost of Work is a
Selection Criteria (Single Prime Contract)
(Competitive Bid)

Construction Cost of Work is a
Selection Criteria
(Competitive Cost Proposal)

Construction Cost of Work is not a Selection Criteria
(Competitive Qualifications
Proposal)

Construction Cost of Work is a Selection
Criteria (design included)
(Competitive Cost Proposal)

Construction Cost of Work is not a Selection Criteria
(Competitive Qualifications
Proposal)

"Major Factors"

1. Project Complexity Scope Definition (Design Intent) vs. (Level of Detail)
A. Prior to Selection
B. After Selection, Prior to establishing Quality, Cost, & Schedule GMP
C. After Establishing Quality, Cost & Schedule (GMP) (Who is
approving Changes?)

Requires both definition of scope design intent and a high level of design detail development prior to selection of Contractor

Requires both definition of scope design intent and a high level of design detail development prior to selection of CM/GC

Does not require a high level of design detail development prior to selection of CM/GC

Requires both definition of scope design intent and a high level of design detail development prior to selection of Design/Builder

Not applicable because this period of time does not exist with this method

Not applicable because this period of time does not exist with this method

Requires definition of scope design intent and a high level of design detail development prior to establishing quality, cost & schedule (GMP)

Not applicable because this period of time does not exist with this method

Design Professional assisting the Owner in approving scope changes

Design Professional assisting the Owner in approving scope changes

Design Professional assisting the Owner in approving scope changes

Owner approving scope changes without Design Professional

Does not require a high level of design detail development prior to selection of Design/Builder
Requires definition of scope design intent and a high level of design detail development prior to establishing quality, cost & schedule (GMP)
Owner approving scope changes without Design Professional

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Delivery Method Design/Bid/Build

CM/GC

Design/Build

Contractor Selection
Type of Proposal
2. Need/Desire For Contractor Input Information regarding: 1) Design Solutions 2) Constructabiltiy

Construction Cost of Work is a
Selection Criteria (Single Prime Contract)
(Competitive Bid)
Design professional is responsible for providing design solutions (1) and constructability (2)
Information is typically provided at specific milestones and is usually limited to specifically requested information

Construction Cost of Work is a
Selection Criteria
(Competitive Cost Proposal)
Prior to CM/GC bid/award, design professional is responsible for design solutions (1) and constructability (2)
After selection, CM/GC and Design Professional will share responsibility for constructability (2)
After selection, the Using Agency's ability to participate in the refining of the detailed scope is limited

Construction Cost of Work is not a Selection Criteria
(Competitive Qualifications
Proposal)
Prior to CM/GC bid/award, design professional is responsible for design solutions (1) and constructability (2)
After selection, CM/GC and Design Professional will share responsibility for review of design solutions (1) and for constructability (2)

Construction Cost of Work is a Selection
Criteria (design included)
(Competitive Cost Proposal)
Prior to Design/Builder award, Using Agency is responsible for design solutions (1) and constructability (2)
After selection, Design/Builder will provide review of design solutions (1) and constructability (2) After selection, the Using Agency's ability to participate in the refining of the detailed scope is limited

Construction Cost of Work is not a Selection Criteria
(Competitive Qualifications
Proposal)
Prior to award, design solutions (1) and constructability (2) are not an issue
After selection, Design/Builder will provide review of design solutions (1) and constructability (2)

3. Potential for changes during construction

No fiduciary relationship created by contract

Once selected, information is continuously available
No fiduciary relationship created by contract

Once selected, information is continuously available
Fiduciary relationship is contractually created

Once selected, information is continuously available
No fiduciary relationship created by contract

Once selected, information is continuously available
Fiduciary relationship is contractually created

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Delivery Method Design/Bid/Build

CM/GC

Design/Build

Contractor Selection Type of Proposal
4. Schedule
5. Quality definition and verification

Construction Cost of Work is a
Selection Criteria (Single Prime Contract)
(Competitive Bid)
Sequential linear process of the five phases inhibits overlapping of the design and construction phases
The quality is defined by architect through the plans and specs without input from the contractor
Design Professional is responsible for quality verification
Contractor is responsible for workmanship quality
Because total construction cost is not defined prior to final design, Agency is less likely to sacrifice quality to

Construction Cost of Work is a
Selection Criteria (Competitive Cost
Proposal)
Overlapping of the design and construction phases can be achieved
The quality is defined by the architect through the plans and specs prior to bid/award to CM/GC, but then reviewed by the contractor
Design Professional is responsible for quality verification
CM/GC is responsible for workmanship quality
Because total construction cost is defined prior to final design, quality may be sacrificed in order

Construction Cost of Work is not a Selection Criteria
(Competitive Qualifications
Proposal)
Overlapping of the design and construction phases can be achieved
Facilitates compression of predesign and design phases by allowing early selection
The quality is defined by architect through the plans and specs with input from the contractor
Design Professional is responsible for quality verification
CM/GC is responsible for workmanship quality
Because total construction cost is not defined prior to final design, Agency is less likely to sacrifice quality to

Construction Cost of Work is a Selection
Criteria (design included)
(Competitive Cost Proposal)
Overlapping of the design and construction phases can be achieved
Requires some level of scope definition prior to selection, inhibits compression advantage of predesign and design
The quality is defined by the Owner through the plans and specs prior to bid/award to Design/Builder, but then reviewed by the design/builder
Owner is responsible for quality verification
Design/Builder is responsible for workmanship quality
Because total construction cost is defined prior to final design. Quality may be sacrificed in order to

Construction Cost of Work is not a Selection Criteria
(Competitive Qualifications
Proposal)
Overlapping of the design and construction phases can be achieved
Facilitates compression of predesign and design phases by allowing early selection The quality is defined by the Owner through the plans and specs with input from the design/builder
Owner is responsible for quality verification
Design/Builder is responsible for workmanship quality
Because total construction cost is not defined prior to final design, Agency is less likely to sacrifice quality

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Delivery Method Design/Bid/Build

CM/GC

Design/Build

Contractor Selection Type of Proposal

Construction Cost of Work is a
Selection Criteria (Single Prime Contract)
(Competitive Bid)
meet scope and budget requirements

Construction Cost of Work is a
Selection Criteria (Competitive Cost
Proposal)
to meet scope and budget requirements

Construction Cost of Work is not a Selection Criteria
(Competitive Qualifications
Proposal)
meet scope and budget requirements

Construction Cost of Work is a Selection
Criteria (design included)
(Competitive Cost Proposal)
meet scope and budget requirements

Construction Cost of Work is not a Selection Criteria
(Competitive Qualifications
Proposal)
to meet scope and budget requirements

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Delivery Method Design/Bid/Build

CM/GC

Design/Build

Contractor Selection
Type of Proposal
6. Desired Contractual Relationship Owner's Ability to share in Project Cost Savings(COW) after selection
Owner's Ability to Separate Fee from Cost or Work

Construction Cost of Work is a
Selection Criteria (Single Prime Contract)
(Competitive Bid)
Owner not able to share in contractor's savings during construction
Separating Contractor's Fee from Construction Cost of Work is not applicable

Construction Cost of Work is a
Selection Criteria (Competitive Cost
Proposal)
Owner not able to share in contractor's savings
Difficult to Separate Contractor's Fee from Construction Cost of Work

Construction Cost of Work is not a Selection Criteria (Competitive Qualifications Proposal)
Owner able to participate in contractor's savings
Can Separate Contractor's Fee from Construction Cost of Work

Construction Cost of Work is a Selection
Criteria (design included)
(Competitive Cost Proposal)
Owner not able to share in contractor's savings
Difficult to Separate Contractor's Fee from Construction Cost of Work

Construction Cost of Work is not a Selection Criteria (Competitive Qualifications Proposal)
Owner able to participate in contractor's savings
Can Separate Contractor's Fee from Construction Cost of Work

Incentive to Minimize Cost Impacts to Owner

Incentive is to

Incentive is to

Can provide

Incentive is to

Can provide

maximize cost impact maximize cost impact incentive to minimize maximize cost impact to incentive to minimize

to Owner

to Owner

cost impact to Owner Owner

cost impact to Owner

Contractual Motivation to Share Ideas or "Value Added" Suggestions

There is no contractual incentive to bring value added suggestions

Owner's Ability to Factor in More than Construction Cost of Work into Selection Criteria

Not able to consider anything other than Total Construction Cost

There is no contractual incentive to bring value added suggestions

Contract requires sharing of valued added suggestions and will be basis of CM/GC's Performance Evaluation

Contractual incentive to bring value added suggestions

Able to Consider Other Factors with the Construction Cost of Work

Able to Consider Other Factors without Construction Cost of Work

Able to Consider Other Factors with the Construction Cost of Work

Contract requires sharing of valued added suggestions and will be basis of CM/GC's Performance Evaluation
Able to Consider Other Factors without Construction Cost of Work

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Delivery Method Design/Bid/Build

CM/GC

Design/Build

Contractor Selection Type of Proposal

Construction Cost of Work is a
Selection Criteria (Single Prime Contract)
(Competitive Bid)

Construction Cost of Work is a
Selection Criteria
(Competitive Cost Proposal)

Construction Cost of Work is not a Selection Criteria
(Competitive Qualifications
Proposal)

Construction Cost of Work is a Selection
Criteria (design included)
(Competitive Cost Proposal)

Construction Cost of Work is not a Selection Criteria
(Competitive Qualifications
Proposal)

7. State Budget and Funding Cycle

3 funding Scenarios:
1) Complete Project Design and Construction

Works with complete project funding (1) and phased design and construction funding (2)

Works with all types of phased funding (1,2, and 3) scenarios

Works with all types of phased funding (1,2, and 3) scenarios

Works with

Works with

complete project funding complete project

(1)

funding

2) Phased Design & Construction Funding
3) Phased Construction Funding (Design then Phased Construction Funding)

Does not work with phased construction funding (3) (construction funding split into multiple fundings)

Does not work well when Design and Construction are phased (2 and 3) (funded separately)

Does not work well when design and construction are phased (2 and 3) and funded separately. Could work but must identify design phase costs separately

8. Capability of Agency In-house Resources
Two Stages: Prior to Selection/ After Selection

Two Contracts to manage: design and construction

Two Contracts to manage: design and construction

Two Contracts to manage: design and construction

One Contract to manage: design and construction

Requires ability to administer design and construction contracts

Requires ability to coordinate design and construction efforts earlier in the process

Requires ability to coordinate design and construction efforts earlier in the process

Requires ability to clearly define scope prior to selection of Design/Builder
Requires ability to

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One Contract to manage: design and construction
Requires ability to manage the design and construction after selection
Requires ability to
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Delivery Method Design/Bid/Build

CM/GC

Design/Build

Contractor Selection Type of Proposal

Construction Cost of Work is a
Selection Criteria (Single Prime Contract)
(Competitive Bid)

Construction Cost of Work is a
Selection Criteria
(Competitive Cost Proposal)
Requires ability to administer design and the CM/GC Contracts

Construction Cost of Work is not a Selection Criteria
(Competitive Qualifications
Proposal)
Requires ability to administer design and the CM/GC Contracts

Construction Cost of Work is a Selection
Criteria (design included)
(Competitive Cost Proposal)
manage the design and construction after selection

Construction Cost of Work is not a Selection Criteria
(Competitive Qualifications
Proposal)
define scope after selection, prior to establishing a GMP.

Design Professional may supervise and inspect construction

Can be used to supplement in-house resources
Design Professional may supervise and inspect construction

Can be used to supplement in-house resources
Design Professional may supervise and inspect construction

Owner must supervise and inspect construction in-lieu of Design Professional

Can be used to supplement in-house resources
Owner must supervise and inspect construction in-lieu of Design Professional

9. Regulatory and Statutory

Meets all Regulatory Requirements

May be permitted May be permitted May be permitted

based on Agency law based on Agency law based on Agency law

and regulation

and regulation

and regulation

May be permitted based on Agency law and regulation

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Delivery Method Design/Bid/Build

CM/GC

Design/Build

Contractor Selection Type of Proposal
10. Owner Control & Risk Allocation

Construction Cost of Work is a
Selection Criteria (Single Prime Contract)
(Competitive Bid)
No risk of cost overrun after selection Fixed price at time of selection

Construction Cost of Work is a
Selection Criteria
(Competitive Cost Proposal)
No risk of cost overrun after selection Fixed price at time of selection

Construction Cost of Work is not a Selection Criteria
(Competitive Qualifications
Proposal)
There is cost risk after selection, prior to final establishment of GMP

Construction Cost of Work is a Selection
Criteria (design included)
(Competitive Cost Proposal)
No risk of cost overrun after selection Fixed price at time of selection

Construction Cost of Work is not a Selection Criteria
(Competitive Qualifications
Proposal)
There is cost risk after selection, prior to final establishment of GMP

Ability for Contractor to Carry and Control Contingency during:
Design
Construction

Not Applicable
Process penalizes carrying any Construction Contingency

Depending on Weighting of Construction Cost of Work as a Selection Criteria, Process may penalize any attempt to carry Design or Construction Contingency

CM/GC able to recommend appropriate Design and Construction Contingencies without Penalty

Depending on Weighting of Construction Cost of Work as a Selection Criteria, Process may penalize any attempt to carry Design or Construction Contingency

Process penalizes carrying any Construction Contingency

Process penalizes carrying any Construction Contingency

Design/Builder able to recommend appropriate Design and Construction Contingencies without Penalty

11. Recommendations & Experience of Others

Depends on specific project
situation

Depends on specific project
situation

Depends on specific project
situation

Depends on specific project
situation

Depends on specific project
situation

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APPENDIX F THE MAJOR FACTORS (ONE PAGE OVERVIEW)
This is a one-page summary of the Major Factors that typically affects the delivery method determination. For further information on these factors and discussion on how they might be applied to a specific project, see the next section.
a. PROJECT RELATED FACTORS Project Complexity and Scope Definition [Critical Question: Is the scope of work difficult to define?]
Ramifications: If it would be difficult or impossible to produce a set of drawings and specifications which will fully describe the work in question (e.g. a renovation of an existing building), then one of the qualifications based selection methods should be considered. Need/Desire for Contractor Input [Critical Question: Is Contractor input such as design, schedule, budget and constructability reviews, during design required or desired?]
Ramifications: If the assistance of the contractor is desired during the design phase to assist in defining the scope, constructability reviews, schedule determination, or budget confirmation, then one of the alternative delivery methods should be considered.
If there are significant schedule, budget or constructability issues, it can be helpful for the decision-maker to review these issues during the design phase. Many times the designer does not have the range of experience in the actual construction of a project to adequately address these issues. Changes During the Construction Phase [Critical Question: Is there a significant potential for changes during the construction phase?]
Ramifications: If the scope of the project is likely to change during construction (e. g., as a result of changing technology or personnel), then one of the qualifications based delivery methods should be considered. An example might be a project that is intended to have state-of-the-art technology, that either does not exist yet or is likely to change. In this example, the non-existent or changing technology may be an almost certain cause of required changes throughout all phases of the project including during the Construction phase. Schedule [Critical Question: Is overlap of design and construction phases necessary to meet schedule requirements?]
Ramifications: If the project requires a schedule that can only be maintained by overlapping of the design and construction phases, then one of the alternative delivery methods should be considered. Quality Definition and Verification [Critical Question: Will the Owner utilize outside resources to verify quality?]
Ramifications: If in-house resources are not available, then extra caution should be taken when using design-build. If design/build is desired and in-house resources are not available, outside resources should be engaged to assist in verifying that the quality desired by the owner is incorporated. Desired Contractual Relationship [Critical Question: Does the Owner wish the Contractor to have a fiduciary responsibility?]
Ramifications: If the project necessitates an open collaborative relationship among the parties, then a Competitive Qualifications selection should be considered.
b. EXTERNAL FACTORS State Budget and Funding Cycle [Critical Question: Is funding available for construction at initiation of design?]
Ramifications: While any of the methods will work with Complete Project Funding, any phasing of the funding can have a major impact on the decision of which method to select. For example, without Complete Project Funding, Design/Build is not feasible. Capability of Agency In-House Resources [Critical Question: Is agency in-house personnel experienced in alternative delivery methods or, if not, will in-house personnel be augmented by other agency or contracted personnel?]
Ramifications: Regardless of the delivery method selected, if the Using Agency is inexperienced in management of a capital outlay program, assistance should be obtained by contract with an experienced professional or by making arrangements for assistance from another state agency that has that experience. This is particularly true if an alternative delivery method is desired. Regulatory & Statutory Requirements [Critical Question: Do laws rules, regulations, etc., permit the use of an alternative project delivery method?]
Ramifications: The decision on what delivery method is most appropriate must be made early in the predesign phase of the project and properly documented so that sufficient time and justification can be prepared to gain approval for an alternative delivery method if that method is most appropriate.
c. CONTRIBUTING FACTORS (TO BE CONSIDERED FOLLOWING PROJECT RELATED AND EXTERNAL FACTORS) Owner Control and Risk Allocation [Critical Question: Does the proposed delivery method allocate the risks in an acceptable manner?]
Ramifications: In selecting the appropriate delivery method, a thorough review of the potential risks and their allocation should be performed. Then, the Using Agency should evaluate its ability and willingness to assume the risk inherent to the method selected. To accomplish this, each of the project related factors should be reviewed and considered. Recommendations and Experience of Others [Critical Question: Has the proposed delivery system been recommended by other State Agencies?]
Ramifications: If more than one delivery method is deemed appropriate for use after consideration of all the other factors, the Using Agency should select that method with which they and others have had the most experience and the greatest degree of success.

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Locations