Project Delivery Methods

At American Structures General, Inc. we are prepared to provide you with whatever general contracting services you feel are best suited you and your project. In steel commercial buildings and prefabricated metal buildings there are basically three project delivery methods:

Design-Build

Design-build is an integrated approach which delivers design and construction services under one contract with the general contractor being the single point of responsibility for the entire project.

In the Design-Build process the owner solicits a partner with the knowledge and expertise to oversee the entire project from conception to completion. The owner relies on the partner to gather bids, select subcontractors, anticipate problems.

Design-Bid-Build

Design-Bid-Build, another common method of delivering construction services, is a process in which the design team or architect is the driver of the bidding process. The project owner typically holds two contracts: design and general contractor.

The process for selecting a contractor is typically based solely on the lowest construction bids rather than on choosing a partner based on the overall value they bring to your project.  Owners who choose this process typically do so because they feel they are getting the lowest pricing.

Pros of Design-Bid-Build

  • Traditional delivery method
  • Single point of responsibility for construction
  • Complies with public bidding policy

Cons of Design-Bid-Build

  • Adversarial relationships
  • No builder input during design – potential change orders
  • Timing of cost guarantee
  • Zero Owner involvement through bid process – general contractor selects all subcontractors
  • This method does not take into account any lack of knowledge on the part of the design team/architect regarding constructability. Costly, time-consuming redesigns and disputes with contractors/subcontractors in the construction phase often occur.

Construction Manager at Risk

In this method, the project owner holds two contracts: design and construction. Rather than being paid a flat fee the construction manager submits a Guaranteed Maximum Price (GMP) which includes their charges incorporated into the final bid.

Pros of Construction Manager at Risk

  • Builder input during design
  • Transparency of bid process & selection of subcontractors
  • Scope clearly defined during design
  • Cost and schedule guaranteed
  • Single point of responsibility for construction

Cons of Construction Manager at Risk

  • Control passes from Owner to CM at construction

Many project owners prefer this delivery method because they hold less financial risk in the project yet have input throughout the entire process.  The single-point responsibility carries the clearest contractual remedies for the clients because the contractor is  responsible for the entire project,  any miscalculations or missteps along the way,  regardless of the nature of the fault, is the responsibility of the Design/Build contractor.

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American Structures General, Inc.

2423 American Lane, Madison, WI  53704

608-249-9191 email

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Developing partnerships. Building value.

 

 

Constructing steel commercial buildings.

 

Since 1972!

Specializing in pre-fabricated steel metal buildings. Specializingin mini-warehouses and custom structural steel buildings