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Topics of Discussion

l   Contracting Methods
l   Advantages and Disadvantages
l   Design/Build Subcontractors
l   Terminology
Types of Contracting Methods

l   Design/Build


l   Traditional (Design – Bid – Build)


l   Construction Manager (CM)
Contractual Relationships

 Design/Build



                 Owner



            Design/Builder



                          Contractors /
           A/E
                         Subcontractors
Design/Build Definition

l   Design/Build
     Method  where design and construction are a
      single source of responsibility for one entity.
     Design/Builder  may or may not self perform
      some or all of the design and construction work.
     Design/Builder  accountable from the earliest
      stages of the project.
     Thisform of construction services has become
      more popular in the last 5-10 years; however,
      Duke has been doing this for 25 years.
Design/Build Process
l   Owner conceives Project.
l   Owner receives price/budget for design and
    construction from single entity, up front, prior to full
    design.
l   Owner contracts directly with the Design/Builder.
l   Design/Builder has full responsibility for design and
    construction.
l   Design/Builder contracts with all A/E Firms and
    subcontractors.
l   Design/Builder then works with Owner to design
    project and create construction documents.
l   Design/Builder hires subcontractors, manages
    construction.
Contractual Relationships

l   Traditional
     Design   – Bid – Build

                        Owner




                  A/E             General
                                 Contractor



                                Subcontractors
Traditional Definition

l   Design – Bid – Build
     Architect   is responsible for design.
     General Contractor is responsible for
      construction.
     General Contractor is obligated to perform
      exactly what is indicated or inferred by contract
      drawings and specifications.
     Method  is oldest way to buy construction
      services.
     Normally General Contractor is not involved in
      the design or preconstruction phase - builds
      only.
Traditional Process

l   Traditional
     Design     – Bid – Build
        –   Owner conceives project
        –   Owner hires architect
        –   Architect provides budget / feasibility
        –   Architect designs project
        –   General Contractor bids project
        –   Owner hires General Contractor
        –   General Contractor hires subcontractors,
            manages construction
Contractual Relationships

l   Construction Manager


                     Owner




       A/E           Construction
                                    Contractors
                       Manager
Construction Manager Definition
l   The Construction Manager (CM) is a professional
    management team with focus on construction.
    Many CM firms are also GC’s or used to be a GC.
l   Specialize in organizing and buying the various
    components of the Project and administer the work
    on behalf of the Owner.
l   Preconstruction phase likely to involve interface
    with Architect, but no control of Architect.
l   Architect control is left up to the Owner
l   This term did not exist 25 years ago.
l   In purest form does not hold contracts.
l   Usually used on larger projects.
Construction Manager Process

l   Owner conceives project
l   Owner hires an Architect
l   Owner hires Construction Manager, fee based
l   Architect designs, Construction Manager monitors
    design
l   Construction Manager manages bidding process
l   Construction Manager administers contracts
l   Contractors (subcontractors) contract with Owner
l   Prime Contractors manage construction day to day
l   Construction Manager oversees construction

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Contracting Methods

  • 1. Topics of Discussion l Contracting Methods l Advantages and Disadvantages l Design/Build Subcontractors l Terminology
  • 2. Types of Contracting Methods l Design/Build l Traditional (Design – Bid – Build) l Construction Manager (CM)
  • 3. Contractual Relationships  Design/Build Owner Design/Builder Contractors / A/E Subcontractors
  • 4. Design/Build Definition l Design/Build  Method where design and construction are a single source of responsibility for one entity.  Design/Builder may or may not self perform some or all of the design and construction work.  Design/Builder accountable from the earliest stages of the project.  Thisform of construction services has become more popular in the last 5-10 years; however, Duke has been doing this for 25 years.
  • 5. Design/Build Process l Owner conceives Project. l Owner receives price/budget for design and construction from single entity, up front, prior to full design. l Owner contracts directly with the Design/Builder. l Design/Builder has full responsibility for design and construction. l Design/Builder contracts with all A/E Firms and subcontractors. l Design/Builder then works with Owner to design project and create construction documents. l Design/Builder hires subcontractors, manages construction.
  • 6. Contractual Relationships l Traditional  Design – Bid – Build Owner A/E General Contractor Subcontractors
  • 7. Traditional Definition l Design – Bid – Build  Architect is responsible for design.  General Contractor is responsible for construction.  General Contractor is obligated to perform exactly what is indicated or inferred by contract drawings and specifications.  Method is oldest way to buy construction services.  Normally General Contractor is not involved in the design or preconstruction phase - builds only.
  • 8. Traditional Process l Traditional  Design – Bid – Build – Owner conceives project – Owner hires architect – Architect provides budget / feasibility – Architect designs project – General Contractor bids project – Owner hires General Contractor – General Contractor hires subcontractors, manages construction
  • 9. Contractual Relationships l Construction Manager Owner A/E Construction Contractors Manager
  • 10. Construction Manager Definition l The Construction Manager (CM) is a professional management team with focus on construction. Many CM firms are also GC’s or used to be a GC. l Specialize in organizing and buying the various components of the Project and administer the work on behalf of the Owner. l Preconstruction phase likely to involve interface with Architect, but no control of Architect. l Architect control is left up to the Owner l This term did not exist 25 years ago. l In purest form does not hold contracts. l Usually used on larger projects.
  • 11. Construction Manager Process l Owner conceives project l Owner hires an Architect l Owner hires Construction Manager, fee based l Architect designs, Construction Manager monitors design l Construction Manager manages bidding process l Construction Manager administers contracts l Contractors (subcontractors) contract with Owner l Prime Contractors manage construction day to day l Construction Manager oversees construction