Project Delivery Strategy Selection Workshop

Workshop Summary

Project Name:

Workshop Date:

Workshop Location:

Facilitator:

Workshop Participants
Name Email

Project Delivery Strategy Selection Workshop Process

Overview
This document contains forms to support a process for a project delivery strategy selection workshop. Following the
guidance in this document, the workshop should take between 2-4 hours. The primary objectives of this process are to:
 Provide a structured approach to assist owners in selecting an appropriate project delivery strategy;
 Enhance team integration and team cohesion in all project delivery strategies; and
 Provide documentation of the selection decision.

Background
This project delivery strategy workshop process is based on the results of more than 200 U.S. building projects
completed between 2008 and 2013. The research was conducted by Pennsylvania State University and the University of
Colorado with funding from the Pankow Foundation and the Construction Industry Institute. Complete details for the
research can be found at http://bim.psu.edu/delivery.

Workshop and Facilitation

The selection of a project delivery method is best made in a workshop setting with the owner and key project
stakeholders. This process will enhance the owner’s understanding of the delivery choice and create alignment on the
delivery strategy from the beginning. Facilitation of the workshop will make the process more efficient. A facilitator
need only be familiar with the various project delivery, contracting and procurement methods. Facilitation also helps to
answer questions and make sure the process stays on track and the team moves towards a formal selection.

Timing and Participation

Selection of the project delivery strategy should occur as early as possible, ideally during the programming and/or
conceptual design phases. Key participants may include, but are not limited to the owner, facility manager, user
representative, owner’s construction representative or other key design and construction professionals depending upon
how the owner is structured. Participation of a minimum 3-5 people and a maximum of 12-15 is recommended, but this
number varies depending upon the project size/complexity and owner profile.

Potential Bias
The best approach is for workshop participants to keep an open mind about the delivery strategy. Preconceived ideas
can introduce bias into the discussions. However, when participants have a bias towards a potential method, it is best to
discuss it with the entire selection team at the beginning of the workshop. Putting ideas on the table helps others to
understand the potential advantages of the different strategy approaches available.

Workshop Preparation
Pre-workshop planning will result in a more concise and informative session. It is helpful for the owner and facilitator to
complete all known project information, goals and constraints prior to the workshop. The best approach is to complete
the Project Delivery Description and the Project Delivery Goals and provide them to the workshop participants before
conducting the workshop. However, these worksheets can be completed in the workshop if required.

Process Step Worksheet or Form Name

Step 1: Define the project needs

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 a. Describe the project Project Attributes
b. Set project goals Project-Specific Goals

Step 2: Explore the delivery strategy options

a. Design responsibility Design Responsibility Opportunities/Obstacles
b. Timing of involvement Timing of Involvement Opportunities/Obstacles
c. Cost transparency Cost Transparency Opportunities/Obstacles
d. Selection criteria Selection Opportunities/Obstacles Criteria
e. Prequalification Prequalification Opportunities/Obstacles
f. Experience working together Experience Working Together Opportunities/Obstacles
g. Interview process Interview Process Opportunities/Obstacles

Step 3: Select the optimal delivery strategy

Summarize delivery strategy preferences Delivery Strategy Preferences
b. Identify delivery constraints Project Constraints
c. Select the delivery strategy Delivery Strategy Selection

NOTE: Typically, the entire selection process can be completed by the project team in a 2-4 hour workshop session, as
long as each team member has individually reviewed the project description, goals and constraints prior to the
workshop.

Project Delivery Selection Worksheets and Forms

The following forms and supplements are included to facilitate this process.

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Step 1 – Define the Project Needs
1a. Project Attributes
Provide information on the project. This includes attributes such as size, type, funding, risks, complexities, etc.
All known information should be listed for the specific project, but the information should be concise.

1b. Project-Specific Goals (including example project goals)

A precise determination of the project goals is an instrumental first step of the process that will guide the
selection of the appropriate project delivery strategy.

Step 2 – Explore the Delivery Strategy Options

2a-g. Opportunities/Obstacles
These eight forms are used to summarize the assessments made by the workshop team of the specific
opportunities and obstacles associated with the two delivery method factors, one contract payment term
factors, and the four procurement process factors. At the end of each form, the workshop team documents the
preferred option for each factor. A second page is provided for comments and conclusions. The ratings are then
transferred to the Delivery Strategy Preferences form in Step 3a.

Supplements a-g. Opportunities/Obstacles Checklists

These eight forms provide the workshop team with additional guidance concerning general opportunities and
obstacles associated with the two delivery method factors, one payment terms factor, and four procurement
process factors. The list of opportunities and obstacles should only be referenced after the workshop team has
exhausted ideas about the specific project on the Opportunities/Obstacles worksheets in Step 2a-h.

Step 3 – Select the Optimal Delivery Strategy for the Project

Delivery Strategy Preferences
This form collects the workshop team’s preferred options for the two delivery method factors, the two contract
payment terms factors, and the four procurement process factors. The completed Delivery Strategy Preferences
form should provide an executive summary of the initial decisions needed to identify an optimal project delivery
strategy.

3a. Project Constraints

Review any organizational policy or legal constraints on the delivery process. These constraints can limit, or even
eliminate, the consideration of certain project delivery strategies. Identifying constraints prior to discussing the
selection of a delivery strategy will help narrow the potential choices down to only viable strategies. The viable
strategies are then carried forward to the Delivery Strategy Selection worksheet, where they are compared
against workshop team’s preferred options summarized in Step 3a.

3b. Delivery Strategy Selection

This worksheet allows for comparison of the viable project delivery strategies (identified in Step 3b) against the
workshop team’s preferred delivery options (from Step 3a). After completing this comparison, the workshop
team will have identified the optimal delivery strategy for the project.

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Step 1 – Define the Project Needs

Step 1a) Describe the Project

The following attributes should be considered in describing the specific project. Other items can be added to the bottom
of the form if they influence the project delivery decision. Relevant documents can be added as appendices to the final
summary report.

Project Attributes
Project Name:

Location:

Estimated Budget (or range):

Estimated Project Delivery Period:

Estimated Size (or range, in square feet):

Required Delivery Date (if applicable):

Source(s) of Project Funding:

Function Project Scope (i.e., what will be delivered):

Major Schedule Milestones:

Major Project Stakeholders:

Main Identified Sources of Risk:

Safety Issues:

Sustainable Design and Construction Requirements:

Key Specialty Trades:

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1b) Set Project Goals
An understanding of project goals is essential to selecting an appropriate project delivery strategy and ultimately to
defining project success. Therefore, project goals should be set prior to using the project delivery strategy selection
process. Typically, the project goals can be defined in three to five items that deal with project management and project
success. Example goals are provided below, but the report should include project-specific goals. Note that these goals
should remain consistent over the life of the project.

Project-Specific Goals
Goal #1:

Goal #2:

Goal #3:

Goal #4:

Goal #5:

Example Project Goals (for reference)

Schedule
 Minimize project delivery time
 Complete the project on schedule
 Accelerate start of project revenue
Cost
 Minimize project cost
 Maximize project budget
 Complete the project on budget
 Maximize the project scope and improvements within the project budget
Quality
 Meet or exceed project requirements
 Select the most qualified team
 Provide a high quality design and construction constraints
 Provide an aesthetically pleasing project
Functional
 Maximize the life cycle performance of the project
 Minimize inconvenience to current facility users
 Maximize worker and user safety

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Step 2. Explore the Delivery Strategy Options

Step 2a) Design Responsibility - Opportunities/Obstacles

Organizationally, when considering design responsibility for design and construction services, the Owner has two
choices. The Owner can choose to hire a designer and primary builder separately (D-B-B or CM at-Risk), or the Owner
can choose to use a single contract that combines the design and construction into one entity (D-B or IPD).

Multiple Contracts: Design and construction responsibility can be split into separate contracts. Design-bid-build contract
forms have a clear separation with the builder’s contract beginning after design is complete. Construction manager at
risk forms of contract have separable preconstruction and construction contracts for the builder.
Opportunities Obstacles

Single Contract: Design and construction responsibilities can be combined into one contract. Design-build contracts
have one contract between the owner and the design-builder. Integrated project delivery forms of contracts use
multiparty agreements between the owner, designer, builder and specialty contractors.
Opportunities Obstacles

Preferred Option: Based on discussion of the

opportunities/obstacles identified above, enter your Box 2a
preferred contract arrangement into Box 2a.

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Step 2b) Timing of Involvement - Opportunities/Obstacles
Organizationally, timing of involvement relates to when the primary builder and other key specialty contractors are
hired and become involved with the project. Three primary times during design provide the options for hiring of the
primary builder and key specialty contractors: During the construction documents phase of design or later, after
schematic design and before construction documents, and prior to Schematic Design.
During Construction Documents or Later: The primary builder is procured once the construction documents phase of design
is complete or near complete. This allows a complete bid package to be set for bids. Total cost of construction are typically a
requirement in soliciting bids for the project (D-B-B).
Opportunities Obstacles

Between Schematic Design and Construction Documents: The primary builder is procured after 30% of the design is
complete, but before design is 100% complete. This method allows for the primary builder to be involved during the critical
detailed design stages to provide construction input and constructability reviews during design. However, obtaining an
accurate total construction cost from bid can be more difficult as design is not complete at time of procurement. Procurement
typically involves technical and qualification factors in addition to total construction cost (D-B or CM at-Risk).
Opportunities Obstacles

Prior to Schematic Design: The primary builder is procured when either there is limited design information, but no more than
30% of the design is complete. This method allows for the earliest involvement of the builder for the project and can provide
pre-construction and construction management services throughout the design process. Obtaining total construction cost
during procurement is not possible. Procurement of builders at this stage relies on Qualifications-Based Selection with the
potential to include fees as a price factor (D-B, CM at-Risk, or IPD).
Opportunities Obstacles

Box 2b
Preferred Option: Based on discussion of the
opportunities/obstacles identified above, enter your Primary Builder
preferred timing of involvement for the primary builder and
key specialty trades into Box 2b.
Key Specialty Trades

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Step 2c) Cost Transparency- Opportunities/Obstacles
Cost transparency refers to the use of either closed-book or open-book payment terms between the primary builder and
the Owner. It may also refer to the payment terms between primary builder and key specialty trades.

Closed Book: Closed-book accounting does not allow the Owner or the team members to access one another’s financial
information associated with the project. Lump sum contracts are typically used for estimating total costs and schedule of values
are used for payment of work performed.
Opportunities Obstacles

Open Book: Open book accounting allows for the Owner and all team members to participate actively in the cost estimation
and project budgeting. The team members allow access to each other’s financial information related to the project and
participate in the payment for completed work based upon the cost of the work in place plus a fee.
Opportunities Obstacles

Box 2c
Preferred Option: Based on discussion of the
opportunities/obstacles identified above, enter your Primary Builder
preferred contract payment terms for the primary builder
and key specialty trades into Box 2c.
Key Specialty Trades

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Step 2d) Selection Criteria - Opportunities/Obstacles
Once the decision to begin the procurement phase is made, the Owner needs to develop the selection criteria for
selecting the builder for the project. The Owner has the choice to procure based solely on price, or to use price and/or
non-price factors such as technical requirements and qualifications.
Price Only: Owner procures the builder based on the price provided in the received bids. The bid that is fully responsive
and has the lowest price is typically chosen as the builder for the project. No technical or qualifications factors are
considered in the selection.
Opportunities Obstacles

Best Value: The Owner procures the primary builder using price as well as non-price factors such as time, quality, value-
added design, qualifications, and other project specific factors.
Opportunities Obstacles

Qualifications-Based Selection (QBS): The Owner procures the primary builder using exclusively non-price factors such as
time, quality, value-added design, qualifications, and other project specific factors. Price of the work is not considered in
the selection.
Opportunities Obstacles

Box 2e
Preferred Option: Based on discussion of the
opportunities/obstacles identified above, enter your Primary Builder
preferred selection criteria for the primary builder and key
specialty trades into Box 2e. Key Specialty Trades

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Step 2e) Prequalification - Opportunities/Obstacles
Owners have the option to solicit bids or proposals for any and all builders interested in the project or to pre-qualify
builders who then are the only organizations that are allowed to submit a bid/proposal for the project.

Open Procurement: For open procurement, Owners typically invite any and all builders to submit a bid for a project. This
induces more competition among many firms that could result in lower initial total costs to the Owner.
Opportunities Obstacles

Shortlist: The use of shortlist allows the Owner to prequalify firms based on financial ability, safety performance,
competitive processes, or any other important factors required before the primary procurement process takes place.
Shortlisting firms means fewer proposals to review and the potential that all bidding firms are the most qualified for the
project, which can assure the Owner is selecting a builder that will perform as expected.
Opportunities Obstacles

Box 2f
Preferred Option: Based on discussion of the
opportunities/obstacles identified above, enter your Primary Builder
preferred approach to prequalification for the primary
builder and key specialty trades into Box 2f.
Key Specialty Trades

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Step 2f) Experience Working Together - Opportunities/Obstacles
When constructing a project, the Owner procures a builder based on the criteria important to the project. The selected
construction firm can be one that the Owner has never worked with or a builder whom the Owner has experience
working with on previous projects.

First Time Working Relationship: First time working relationship summarizes the Owner’s selection of a builder that the
Owner has no experience working with in past projects. The relationship is new and there will be a learning curve at the
beginning of the project on how the Owner and builder will work together on the project so that alignment of project goals
and objectives occurs.
Opportunities Obstacles

Previous Working Relationship: When the Owner selects a builder that they are familiar with from previously working
together, there is a reduced learning curve and an understanding of the relationship that already exists between the Owner
and builder. When repeat business occurs, the builder may be more lenient with changes and claims in order to further the
relationship with the potential to work on future projects together.
Opportunities Obstacles

Preferred Option: Based on discussion of the

opportunities/obstacles identified above, enter your
Box 2g
preferred working relationship with the primary builder into
Box 2g.

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Step 2g) Interview Process - Opportunities/Obstacles
The use of an interview process when selecting a builder means that the Owner is utilizing non-price factors in the
procurement process. Interviews can range in intensity from simple clarifications of proposals to in-depth questions
about complex scenarios that may be encountered during design and construction of the project. Owners need to
choose prior to soliciting bids if interviews will be used or not.

No Interview Prior to Selection: If price only factors are used to select a builder or specialty contractor, then the Owner most
likely will not need to interview the potential construction firms. Not using interviews can shorten the procurement time as
well as puts less burden on the Owner to carry out additional steps in the procurement process.
Opportunities Obstacles

Interview Prior to Selection: When non-price selection criteria are used to procure a builder or specialty contractor, the Owner
can choose to use interviews or not. Depending on the complexity of the project and the non-price factors used in the RFP,
Owners will typically conduct interviews with 3-5 potential construction firms in order to clarify the proposals as well as inquire
about specific scenarios for the project and overall attributes of the construction firm.
Opportunities Obstacles

Preferred Option: Based on discussion of the

opportunities/obstacles identified above, enter your
Box 2h
preferred stance on conducting interviews of the primary
builder, prior to selection, into Box 2h.

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Step 3. Select the Optimal Delivery Strategy for the Project

Summarize Delivery Strategy Preferences

Transfer your preferred options to each project delivery strategy selection factor (Boxes 2a-h) into the table below. This
table represents a summary of initial decisions comprising a project delivery strategy. The remainder of Step 3 will assist
you in selecting an optimal strategy for your project goals that is compatible with your organization’s existing delivery
policies and constraints.

Initial Delivery Strategy Preferences

Selection Factors Preferred Option

Box 2a. Design Responsibility

Box 2b. Timing of Involvement

(Primary Builder)

(Key Specialty Trades)

Box 2c. Cost Transparency

Box 2d. Selection Criteria

(Primary Builder)

(Key Specialty Trades)

Box 2e. Prequalification

(Primary Builder)

(Key Specialty Trades)

Box 2f. Experience Working Together

Box 2g. Interview Process

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Step 3a) Identify Delivery Constraints
Identify the most appropriate project delivery strategies that can accommodate your organization’s policies on delivery
methods, contract payment terms and the procurement processes. The terms “required” and “prohibited” connote
constraints dictated by law or policy. Review the list of constraints below and check each constraint that applies to your
organization or project. For each constraint, a rating is provided for the appropriateness of each project delivery
strategy. If an “X” appears under any project delivery strategy, you should discontinue evaluation of that strategy, as it
is not compatible with your project constraints.

If multiple constraints are checked, then only note the strategies that are appropriate for all of the checked constraints.
For example, if the “Owner is prohibited from using a single contract by law or policy” (I, II, III are Appropriate, IV has a
Fatal Flaw and V is Challenging if Selected) and “Early GC, CM or DB involvement is prohibited by law or policy” (I, II are
Appropriate, III is Challenging if Selected and IV, V have a Fatal Flaw), then the most appropriate delivery strategies for
your project are I and II.

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 Project Delivery Strategy Rating
Project Constraints
I II III IV V
2a. Design Responsibility
☐ Owner has a long history of using traditional delivery methods ++ + + – –
☐ Owner is prohibited from using a single contract + + + X –
2b. Timing of Involvement
☐ Early GC, CM or DB involvement is prohibited + + – X X
☐ Early trade involvement is prohibited + + + X X
☐ Early GC, CM or DB involvement is required X X + + +
☐ Early trade involvement is required X X – + ++
2c. Cost Transparency
☐ Owner staffing cannot participate in monthly cost audits ++ + X + –
☐ Closed book contract for GC, CM, or DB is required ++ + X + X
☐ Open book contract for GC, CM or DB is required X – ++ – +
2d. Selection Criteria
☐ Selection of GC, CM or DB must be based solely on the cost of work ++ + X X X
☐ Selection of trades must be based solely on the cost of work ++ + + – X
☐ Selection of GC, CM or DB must be a competitive, best value decision – + + ++ X
☐ Selection of trades must be a competitive, best value decision – + + ++ X
☐ Qualification-based selection of GC, CM or DB is prohibited ++ + – + X
☐ Qualification-based selection of trades is prohibited ++ + + + –
2e. Prequalification
☐ Prequalification of GC, CM or DB is prohibited ++ – – X X
☐ Prequalification of trades is prohibited ++ – – X X
☐ Prequalification of GC, CM or DB is required X + + ++ +
☐ Prequalification of trades is required – + + ++ +
2f. Experience Working Together
☐ Owner must procure GC, CM or DB from a list of approved partners – – + + ++
2g. Interview Process
☐ Interviewing the GC, CM or DB is prohibited ++ + X X X
☐ Interviewing the GC, CM or DB is required X – + + ++

Rating Key
++ Most Appropriate
+ Appropriate
– Challenging if Selected
X Fatal Flaw (Discontinue evaluation of this delivery strategy)

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Step 3b) Select the Delivery Strategy
In the form below, scratch out or cover the columns with delivery strategies that were not found viable in the constraint analysis in Step 3b.
Compare the workshop team’s preferred delivery options with the remaining columns to determine the optimal strategy for the project.

Delivery Strategy Selection

Selection Factors
I II III IV V
Separate;
Box 2a. Design Responsibility Separate Separate Separate Combined
Combined
Box 2b. Timing of Involvement
DD or CD;
Primary Builder CD or later Pre-SD Pre-SD Pre-SD
CD or later
DD or CD; DD or CD; Pre-SD;
Key Specialty Trades CD or later Pre-SD
CD or later CD or later DD or CD

Closed book; Closed book,

Box 2c. Cost Transparency Closed book Open book Closed book
Open book Open book

Box 2d. Selection Criteria

Price only; Best value;

Primary Builder Best value Best value QBS
Best value QBS

Price only; Price only;

Key Specialty Trades Price only Best value QBS
Best value Best value

Box 2e. Prequalification

Open;
Primary Builder Open Shortlist Shortlist Shortlist
Shortlist

Open;
Key Specialty Trades Open Shortlist Shortlist Shortlist
Shortlist

First time;
Box 2f. Experience Working Together First time First time Repeat Repeat
Repeat

Box 2g. Interview Process No interview No interview Interview Interview Interview

Abbreviations: SD=Schematic Design; DD=Design Development; CD=Construction Documents; QBS=Qualifications-Based Selection

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Project Delivery Strategy Selection Summary Conclusions and Comments

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Supplement a-g: Opportunities/Obstacles Checklists
Step 2a) Delivery Method – Design Responsibility Opportunities and Obstacles
MULTIPLE CONTRACTS (DBB or CM at-Risk)
Opportunities Obstacles
☐ Legal processes are well understood by the industry ☐ Linear design and construction process is inherent; fast-
☐ Separate procurement processes can simplify each parties tracking requires aligned contract language with all parties
selection ☐ Design changes can increase costs or drive adversarial
☐ If design is not well defined, it allows time for concepts to relationships
develop before the builder is engaged ☐ Errors in design lead to change orders and schedule delays

SINGLE CONTRACTS (DB or IPD)

Opportunities Obstacles
☐ Single point of responsibility for design and construction ☐ Early selection of team members can be challenging
☐ Higher level of design constructability ☐ Scope must be well-defined early
☐ Easier to align risk and reward with project goals ☐ Selection is often constrained to performance based design
☐ Non-adversarial designer-builder relationship and construction criteria
☐ Designs can be more concise since the contractor is involved ☐ Fewer checks and balances between design and cost
during design

Step 2b) Timing of Involvement Opportunities and Obstacles

CONSTRUCTION DOCUMENTS OR LATER
Opportunities Obstacles
☐ Owner can finish design prior to beginning construction ☐ Constructability advice is costly to integrate into the design
☐ Allows for price to be known prior to beginning construction ☐ Greater potential for errors and omissions in the design
☐ Procurement includes total construction cost that becomes documents
the contract amount ☐ Errors in design can lead to change orders and schedule
delays
AFTER SCHEMATIC DESIGN AND BEFORE CONSTRUCTION DOCUMENTS
Opportunities Obstacles
☐ Base scope provides knowledge of construction methods ☐ Constructability advice can cause design to incorporate
during procurement rework
☐ Opportunity for team integration through constructability ☐ Designers and builders may not have a pre-existing
feedback and early modeling for shop drawings relationship
☐ Potential reduction of changes and RFIs during construction ☐ Value engineering opportunities may be limited based on
☐ Contractor input into the design committed concepts
☐ More efficient procurement of long-lead items ☐ Benefit of builder involvement during design can be limited if
☐ Ability to start construction before completing entire design the designer and builder cannot work together effectively
☐ Procurement can include price and non-price factors

BEFORE SCHEMATIC DESIGN

Opportunities Obstacles
☐ Constructability advice can be provided proactively with ☐ Procuring the builder before the scope is fully understood
decisions limits the procurement options available to the Owner
☐ Teams can design to the cost and schedule through timely ☐ Trade contractor involvement at this stage is new to many
input, rather than pricing what is designed markets and finding qualified team members can be
☐ Builder can assist the designer and owner in developing the challenging
project requirements and scope ☐ Benefit of builder involvement during design can be limited if
☐ Potential reduction of changes and RFIs during construction the designer and builder cannot work together effectively
☐ Contractor input into the design ☐ Construction costs are not fully known until late in the design
☐ More efficient procurement of long-lead items phase
☐ Ability to start construction before completing entire design

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Step 2c) Contract Payment Terms – Cost Transparency Opportunities and Obstacles
CLOSED-BOOK ACCOUNTING (Lump Sum/Fixed Price)
Opportunities Obstacles
☐ Can require less owner effort to manage payment ☐ Required builder to assume more risk and charge accordingly
☐ Is well understood in the construction industry ☐ Can create adversarial relationships if disputes arise
☐ Accounting is handled on an individual basis and is simpler to ☐ May be difficult for owners to understand what they are
handle throughout the project paying for beyond the schedule of values and checking
physical progress
☐ Difficult to develop trust as the builder can hide issues in
their finances and pay applications

OPEN-BOOK ACCOUNTING (Cost Plus/GMP)

Opportunities Obstacles
☐ Allows the owner to pay the true cost of the work plus the ☐ Requires more owner effort and administration in accounting
builder’s fee and payment of the builder
☐ Can provide owner with more cost knowledge for future ☐Can provide disincentives to complete work at the lowest
projects possible cost
☐ Allows trust to be built through clear understanding of costs ☐ Without incentives, limits the builder’s drive to save costs
☐ Fewer chances for disputes between owner and builder ☐ Potential for builders to utilize higher initial costs in order to
realize savings later
☐ There is the possibility that costs could exceed the owner’s
budget substantially unless a GMP is implemented

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Step 2d) Procurement Process – Procurement Selection Criteria Opportunities and Obstacles Checklist
PRICE ONLY
Opportunities Obstacles
☐ Allows for simplicity in procurement ☐ Selecting the lowest price is not necessarily the best value
☐ Can allow a wider range of builders to bid for the work for the project
☐ Can be the shortest procurement period ☐ The absence of non-price factors could lead to selecting an
☐ Competitive bidding on price provides low initial unqualified builder
construction costs based on a clearly defined scope of work ☐ Owner has to determine if the lowest bidding firm has
included all components of the project to be fully responsive

PRICE AND/OR NON-PRICE FACTORS

Opportunities Obstacles
☐ Can allow for competitive and value-adding proposal ☐ Scoring of qualitative factors can be complex, and requires
elements more time and resources to develop
☐ Can serve to select team members with better project ☐ May exclude builders who do not typically prepare
qualifications qualifications/technical criteria
☐ Allows for innovation by bidding builders to provide the best ☐ Time required to define technical requirements and
value proposal for the project expectations through RFP development can be intensive
☐ Cost is not the only primary factor to evaluate proposals ☐ Time required to evaluate proposals can be lengthy
☐ Suggests the hiring of a team member rather than ☐ Increased cost to prepare proposals can limit the number of
purchasing of services responsive firms
☐ Allows the team to focus on the “who” rather than “how ☐ Cost to prepare proposals can be substantial, which could
much” increase bid amounts
☐ Can be challenging to demonstrate an objective selection
☐ More difficult to make a direct comparison between firms

NON-PRICE FACTORS ONLY

Opportunities Obstacles
☐ Hiring of a team member rather than purchasing of services ☐ Procurement does not include a cost portion in proposals
☐ Allows the team to focus on the “who” rather than “how
much”
☐ Owner does not have to award to the lowest, responsive
bidder
☐ Owner only has to evaluate qualifications and technical
factors, no cost to consider

Step 2e) Procurement Process – Prequalification Opportunities and Obstacles Checklist

OPEN PROCUREMENT
Opportunities Obstacles
☐ May allow for more builders in the market place to propose ☐ Unqualified proposers may submit proposals and could be
on a project, which could drive down initial costs selected to construct the project
☐ Makes the selection process transparent ☐ An unmanageable number of proposers may submit bids

SHORTLIST
Opportunities Obstacles
☐ Allows the owner to select from only the best and most ☐ Two-step process can add time to the procurement process
qualified proposing builders ☐ Qualitative elements can be complex to score
☐ A smaller number of proposing builders may increase the
effort by builders to provide innovative solutions in order to
offer the best value to the project

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Step 2f) Procurement Process – Experience Working Together Opportunities and Obstacles Checklist
FIRST-TIME WORKING RELATIONSHIP
Opportunities Obstacles
☐ Can allow for a larger pool of builders to propose on a ☐ Owner and builders will experience a learning curve for
project communication and working together
☐ May infuse new idea or construction techniques not seen ☐ There is the possibility that the owner and builder will have
from familiar builders differing cultures that could conflict
☐ Allows for the use of partnering/team building techniques to ☐ The level of trust between the owner and builder could be
build a team relationship for the project low during the initial stages of the project

PREVIOUS EXPERIENCE WORKING TOGETHER

Opportunities Obstacles
☐ Business processes will be known to each party ☐ Incentive for innovation from open competition may be
☐ Can include incentives to work together on future projects diminished
☐ The established relationship lends itself to providing favors ☐ Owner may have legal or functional constraints
for one another ☐ Using the same builder does not mean the owner is receiving
☐ A level of trust and collaboration already exists between the the best price or best value for the project
owner and builder

Step 2g) Procurement Process – Interview Process Opportunities and Obstacles Checklist
NO USE OF INTERVIEWS
Opportunities Obstacles
☐ Not conducting interviews can shorten the procurement ☐ May not have another opportunity for verbal clarifications of
time proposals
☐ Interviews may not provide a differentiator between ☐ May not have another chance to develop team chemistry
proposing builders ☐ Procurement based solely on the information provided in the
☐ Potential to clarify proposals in a non-formal atmosphere received proposals

USE OF INTERVIEWS
Opportunities Obstacles
☐ Provides the opportunity to meet with potential key team ☐ Additional time is required to organize and conduct
members interviews
☐ Increases the opportunity to examine qualifications in a face ☐ Need to determine method for ensuring interview process
to face setting will lead to selection of optimal builder

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