Most recently, a different business model has become more popular, Design-Build. In this type of contract, the construction team is known as the Design-Builder. They are responsible for taking a concept developed by the owner, completing the detailed design, and then pending the owner’s approval on the design, proceed with construction.
There are (2) two main advantages to using a Design-Build contract:
The “construction team” is motivated to work with the “design team” to develop a design with constructability in mind. Therefore, it is possible for the team to creatively find ways to reduce construction costs without reducing the function of the final product. The owner can realize a reduced price due to the increased constructability of the design.
Design-Build contracts allow the pre-construction phase of the project to start before the construction documents are completed.
Refers to a business model where one party to a construction contract serves as a construction consultant, on a fee basis, providing a collaborative approach to the design and construction process of the project. The Construction Manager (CM) assembles the “Project Team”, defines roles and responsibilities, sets up communication protocols and monitors all aspects of the construction project from design through completion of the project. The owner is given access to all the CM’s project documents including trade contracts and trade costs, and is aware of scheduling and cost trade offs before making changes and design decisions.
The Construction Management Association of America (CMAA) says the 120 most common responsibilities of aConstruction Manager fall into the following 7 categories:
1) Project Management Planning
2) Cost Management
3) Time Management
4) Quality Management
5) Contract Administration
6) Safety Management
7) CM Professional Practice
CM As agency
CM At Risk
Contracts directly with an organization or individual (the owner) for the construction or renovation of a building or other construction work. The General Contractor (GC) is considered to be the builder of the prime construction contract for the project.
A GC is responsible for the means and methods to be used in the construction of the project, in accordance with the contract documents.
A GC supplies all materials, labor, equipment and services necessary for the construction of the project. To accomplish this, the GC will subcontract portions of the work to other contractors specializing in that type of work.
In this business model, the owner typically engages with the design professionals,
coordinates the construction documents and specifications and secures the
appropriate approvals prior to hiring the GC.
Preconstruction services are for the initial project planning before any construction starts.
One of the first steps is to conduct a feasibility study. Feasibility study is also used to refer to the resulting document. The results of this study are used to make a decision whether to proceed with the project, or abandon it. It is a preliminary work undertaken to assess whether a planned project is likely to be practical and successful, and also to estimate its cost.
If it indeed leads to a project being approved, it will (before the real work of the proposed project starts) be used to ascertain the likelihood of the project’s success.
In addition, it is an analysis of possible alternative solutions to the problem and a recommendation on the best alternative. It, for example, can decide whether a project be carried out by a new concept more efficiently than the previous one.
Other Preconstruction services:
· Drawing analysis
· Long Lead time item identification
· Bid package review
· Bid evaluation
· Constructability review
· Tenant space planning