One-Stop Design
Nov 1, 2009 12:00 PM, By Randolph J. Collins
Sole-source design and construction management can offer the advantages of design-build for school projects.
Over the past 20 years, design-build has grown in popularity as a delivery method for non-residential construction projects among private-sector owners. They recognize the potential advantages of streamlined project management and single-source accountability, with associated improvements in project cost, schedule and quality. Yet, many education institutions still use the traditional design-bid-build methodology, awarding separate contracts to an architect, construction manager, and one or more separate prime contractors. In some states, legislation has prohibited public agencies from entering into a single contract with an integrated design-build team.
When structured properly, a sole-source design and construction management (CM) relationship is a viable alternative. Some school project leaders who have completed projects using both traditional and sole-source design/CM methods have concluded that the latter project delivery method offers the advantages of design-build for public education projects.
Defining the terms
Most school administrators are familiar with the traditional design-bid-build approach to project delivery. Here is a look at the design-build, CM at risk, CM agency, and sole-source design/CM project delivery methods:
- Design-build
In a design-build project, the owner has a single contract with a design-builder. The design-builder also holds the contracts with all subcontractors, and provides a turnkey project for the owner.
However, in some states, including New York, it is illegal for an integrated design-build entity to perform public work. Moreover, projects for public agencies must be bid competitively under at least four separate prime contracts, and the owner must manage these contractors' activities. The typical way around this barrier is for the owner to contract either with an independent architect or an independent builder to deliver a design-build project. The architect holds a separate contract with the builder for construction services; or the builder holds a separate contract with the architect for design services. The owner holds separate contracts with the prime contractors and manages their activities. However, most owners do not have the resources to perform this complex, specialized management task, so many owners prefer to hire a CM.
- CM at risk
The owner hires a CM and holds a contract with it to deliver a project at a guaranteed maximum price, or at cost plus a fixed percentage. The owner also holds a contract with an architect for design services. The CM holds the contract with all prime contractors; for that reason, CM at risk is not acceptable for public work in some states, including New York.
- CM agency, a.k.a., CM as owner's adviser
There are two methods of CM as owner's adviser. In one method, the owner holds separate contracts with the architect, CM and prime building contractors. The architect is responsible for coordinating its efforts with the CM, but the two have no contractual relationship. The CM is responsible for managing the prime contractors on behalf of the owner. The CM's contract with the owner typically includes preconstruction services during the design phase of the project.
In the second method of CM as owner's adviser, the owner contracts with the architect to provide both design and CM services. The owner holds the contracts with all prime building contractors, and the architect/CM is responsible for managing the prime contractors during construction.
- Sole-source design/CM
This method takes agency CM a step further. In this project-delivery method, the owner contracts with an integrated architect/CM firm. Ideally, the firm is organized into two separate divisions — architecture and CM — staffed by professionals trained, licensed and experienced in the appropriate discipline. Each project is led by two project managers — the design PM and the construction PM — and the design and CM staffs work hand in hand to design and build the project.
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