Design-Negotiate-Build

Project Delivery Method

 Design-Negotiate-Build
Project Delivery Method

The design-negotiate-build delivery method is similar to

the design-bid-build approach, except instead of a bid
phase, there is a negotiation phase during which you
discuss the project cost (or how the cost will be decided)
with one specific contractor before awarding the
contract.
DESIGN-NEGOTIATE-BUILD
 Structure for Negotiated Work

• Negotiated Work Structure "Design-Negotiate-Build" services are

becoming increasingly popular among general contractors. However,
because the term Design-Negotiate-Build might be misleading, we'd
want to explain what that service involves. Because it involves
engaging a Contractor early in the project timeline to negotiate the
project cost and scope by controlling the design parameters in order
to minimize various cost and schedule risks, we refer to the Design-
Negotiate-Build method as "Negotiated Work."
• Unless the general contractor has an architectural license
(which some do), you are not getting a true design/build
service from them. The general contractor is just putting
their business between you (the client) and the architect.
This isn't always a negative thing, but there are certain
advantages and disadvantages to this method that you
should be aware of.
 Construction Management
Related Project Delivery Method

Presented By: Benepher Jr. Tablate & Seth Arvin Chester Sarmiento
 Construction Management
Construction management (CM) is a time-consuming and
difficult procedure. It is the cornerstone of any construction
project and the key to its success. All project delivery methods
are compatible with construction management. A
Construction Manager's (CM) responsibility is to the owner
and to a successful project, regardless of the context.
 Construction Management
Construction management's major goal is to closely regulate
and monitor a project's progress in terms of quality, cost, and
timeliness. It encompasses a wide range of tasks and extends
to a variety of sectors (construction, engineering, law,
software etc).
 CM Responsibilities
The construction management team is in charge of the construction sites. Their
tasks differ based on the project and firm, however the following are some of the
most typical ones:
• Managing costs
• Quality assurance
• Contract oversight
• Safety management
• Communication
• Permitting and paperwork

Source://www.indeed.com/career-advice/finding-a-job/what-is-construction-management
 CM Functions
• Planning
• Scheduling
• Organizing
• Staffing
• Directing
• Controlling
• Coordinating

Source://www.indeed.com/career-advice/finding-a-job/what-is-construction-management
 CM Phases
Each project has its own set of requirements, but the following are the
most common construction management phases:
1. Initiating
2. Planning
3. Executing
4. Monitoring
5. Closing

Source://www.indeed.com/career-advice/finding-a-job/what-is-construction-management
 Construction Manager
Construction managers are in charge of overseeing and leading a
variety of construction projects from start to finish. They are in
charge of creating and maintaining schedules, keeping track of
finances, and ensuring that everyone is completing their jobs on
a daily basis. Construction managers also deal with the
numerous working relationships that exist on a job site and help
guarantee that the workplace is free of safety concerns.
 CM’s Responsibilities
• Set the budget and run cost assessments.
• Plan the work time schedule.
• Select the right construction methods and strategies for their project.
• Maintain a close and good relationship with the clients.
• Negotiating contract agreements with workers and other project
agents.
• Take good care of the workers on site.
• Work together with the numerous consultants of the project.
 CM’s Requirements
• Proven working experience in construction management
• Advanced knowledge of construction management processes, means
and methods
• Expert knowledge of building products, construction details and
relevant rules, regulations and quality standards
• Understanding of all facets of the construction process
• Familiarity with construction management software packages
• Ability to plan and see the “big picture”
 CPM’s Requirements
• Competent in conflict and crisis management
• Leadership and human resources management skills
• Excellent time and project management skills
• BS degree in construction management, architecture, engineering or
related field
 Project Delivery Method
• There is no perfect project delivery method for every building
project. Also, there are no absolutes in project delivery
methods, just variations along a spectrum (Kluenker 1996).
• A construction project delivery system, according to the Project
Delivery Institute, is "the structure of the parties' relationships,
their roles and duties, and the general sequence of operations
required to deliver the project." It specifies how the parties are
contractually tied to one another as the project progresses.
 Project Delivery Method
Owners must answer a series of questions regarding their project in order
to determine the best method of delivery:
• What type of building is it?
• Which designers have experience on this type of structure?
• How risky is this job?
• When does this project need to be completed?
 Project Delivery Method
• What is the budget?
• Do we want a contractor on board during design?
• Can we legally contract the designer and builder under one
agreement?
• Can we legally share the risk among the designer, the builder,
and ourselves
Choosing The Best Method
• Owner Control
– Desire to control design details.
– Desire to control project outcome.
– Desire to have control of all prime
contractors.
– Desire to empower more innovative project
solutions.
– Desire for design excellence.
Choosing The Best Method
• Owner Relationships
– Desire to have direct relationship with designer.
– Willingness to establish a more professional
relationship with contractor.
– Desire to avoid adversarial relationships.
– Ability to enhance project coordination.
– Ability to reduce project claims.
– Desire to integrate the “voice” of the contractor
in the planning process.
Choosing The Best Method
• Project Budget
– Adversity to change orders.
– Need to establish budget at earliest
possibility.
– Best value for funds invested.
Choosing The Best Method
• Project Schedule
– Timing to establish definitive project scope.
– Timing to establish definitive construction
cost.
– Ability to fast track a project.
– Total project duration.
– Desire to avoid delays due to disputes or
claims.
Choosing The Best Method
• Owner Risk
– Adversity to change orders.
– Owner’s ability to make timely key
decisions.
– Ability to reduce gaps between services.
– Liability for the success or failure of the
design
Types of Delivery Method
• Design-Bid-Build (DBB)
• Design-Build (DB)
• Construction Management-at-Risk
(CMAR)
• Construction Management Multi-Prime
(CMMP)
• Public-Private Partnership (PPP or P3)
• Integrated Project Delivery (IPD)
 Project Delivery Method
(Design-Build
(Design-Build Project
Project Delivery
Delivery Method)
Method)

Presented by: Mecina, Bryan Jay R.

 Project Delivery Method
It is system that enters a legal agreement with one or more parties that used by
an agency or owner for organizing and financing design, construction and
services for a structure is called project delivery method.
The Project Delivery Institute defines a construction project delivery system as
“the structure of the relationships of the parties, the roles and responsibilities
of the parties, and the general sequence of activities required to deliver the
project.” It defines how the parties are related to each other contractually
throughout the progress of the project.
Factors to Consider Before Selecting a Project Delivery Method

This are the criteria that are the most important to your
project’s success:
 Budget: how much to spend
 Design: what the final project will look like and how it will
function
 Risks: exposure to danger, financial loss and harm to the brand
 Schedule: a timetable for completion and payments
 Owner Expertise: company’s experience in similar projects
Common Types of Project Delivery Method
 Design-Build project Delivery Method

• Design-build is a project delivery approach in which one entity,

the design-build team, provides design and construction services
to the project owner under a single contract. From inception to
completion, there is only one entity, one contract, and one uniform
flow of work. Design-build is often referred to as design/build or
single-source responsibility.

• To reduce the lengthy timeline of Design-Bid-Build, Design-Build

Method was created. The design-builder is a single party who will
replacing the designer and contractor to fill both of those jobs.
Architect, engineer, or contractor are usually taking the role of
design-builder that will serves as the owner’s single contact for the
entirety of the project.
 Design-Build Project Delivery Method

Design-Build Advantages Design-Build Disadvantages

• Time Savings • Loss of Control of Project
• Cost Savings Design
• One Point of Contact • Less Project Oversight/Control
• Fewer Change Orders of Quality
• Reduced Risk to the Owner • Suitability of Design-Build
Teams
 The Integrated
Project Delivery
Method
REPORTED BY: Hanz Leenard Vicente
 WHAT IS IPD?

• Integrated Project Delivery (IPD) is a project delivery approach that

integrates people, systems, business structures and practices into a
process that collaboratively harnesses the talents and insights of all
participants to optimize project results, increase value to the owner,
reduce waste, and maximize efficiency through all phases of design,
fabrication, and construction.

• The Integrated Project Delivery is similar to Design-Build.

 DIFFERENCE OF DB AND IPD

DESIGN BUILD INTEGRATED PROJECT DELIVERY

• The owner develops a single contract with the • The stakeholders of the owner, architect, and
design build entity. general contractor all come together into one
agreement.
• Reduce risks to the owner of the property by
assigning all responsibilities to one single entity. • Sharing the risk and reward of a project through
target project goals, compensation may increase
or decrease depending on results.
 ADVANTAGES OF IPD

• This method incentivizes collaboration. • The contractor can manage the cost by
• The decision of the contractor doesn’t have running estimates throughout the entire
to be based solely on the price. design process.
• It can contain quantitative and qualitative • This method incentivizes innovation.
decisions • This method have the potential for zero
• It has the potential to be the fastest delivery change orders.
method from design to construction.
 BENEFITS OF IPD
• Better communication - In projects that use • Greater innovation - Up-front collaboration among
traditional delivery methods, the parties involved multiple teams and the opportunity for the project
don’t always get a chance to communicate directly to leverage the core strengths of any team as
with each other, and that can lead to problems and unexpected setbacks are encountered often leads to
inefficiencies. more innovative, effective ways of doing the work.
• Increased transparency -Because everyone’s • Lower project costs - Change orders and RFIs drive
working toward one goal and sharing information, up the cost of projects and slow schedules. With an
the problem of conflicting agendas and hidden costs IPD approach, costs may be significantly reduced.
goes away. • Less wasted time and materials - With everyone’s
• Fewer change orders and RFIs - With IPD, everyone profit riding on the overall success of the project, all
involved in the project comes together at an early parties have incentive to find the most efficient
stage and shares information and input. means of getting the job done.
• More profits for better outcomes - Typically, with an
IPD contract, if the project is brought in under
budget, the contract signatories share in the
savings, increasing their profit.
 CHALLENGES

• This method is not traditional and requires a trust-based and collaborative team to succeed.
• The contractor and architect typically spend more time competing to win the contract in this delivery,
which costs more money.
• This method is not accepted by any public agencies yet.