LEC.

03 – PROJECT DELIVERY
SYSTEM

ENGR. EDUARDO B. LERON JR

CE FACULTY – UE CALOOCAN
Project Delivery Method
 is a system to achieve satisfactory completion of a construction project from the
inception to the occupancy.

Project Delivery System –

defined as the organizational arrangement among various
participants comprising owner, designer, contractor, and many other
professionals involved in the design and construction of a
project/facility to translate/transform the owner’s
needs/goals/objectives into a finished facility/project to satisfy the
owner’s/end user’s requirements.
1.Design–Bid–Build

the owner contracts design professional(s) to prepare detailed design

and contract documents.

It involved three steps:

1. Preparation of complete detailed design and contract documents for
tendering.
2. Receiving bids from prequalified contractors.
3. Award of contract to the successful bidder.
1.1 MULTIPLE-PRIME CONTRACTING
-is a variation of the design-bid-build type of project delivery
system.
-the owner holds separate contracts with contrac- tors of various
disciplines and retains control over the project.
2. Design–Build

the owner contracts a firm singularly responsible to design

and build the project. In this type of contracting system, the
contractor is appointed based on an outline design or design brief
to understand the owner’s intent of the project.
3. The Turnkey Contract
the owner employs a single firm to undertake design,
procurement, construction, and commissioning of the entire
works.

- EPC ( Engineering, Procurement and Construction )

4. Build–Own–Operate–Transfer
generally used by governments to develop public
infrastructure by involving private sector to finance, design, operate,
and manage the facility for a specified period and then transfer it to
the same government free of charge.
 Examples of BOT projects include the following:
• Airports • Bridges • Motorways/toll roads • Parking facilities •
Tunnels
5. Project Manager
is used by the owner when the owner decides to turn over
the entire project management to a professional PM.
6. Construction Management (CM)
-a construction management (CM) firm to coordinate the
project for the owner and provide CM services.

Two General Forms of CM:

1. Agency CM
-is a management process type of contract system having a four- party
arrangement involving the owner, designer, CM firm, and contractor.
2. CM at risk (CM-at-risk)
-also known as construction manager/general contractor (CM/GC).
7. Integrated Project Delivery
-the owner, designer, and contractor are contractually
required to collaborate among themselves so that the risk
responsibility and liability for the project delivery are collectively
managed and appropriately shared.
CONTRACT –
is a formalized means of agreement, enforceable by law,
between two or more parties to perform certain works or provide
certain services against agreed upon financial incentives to
complete the works/services.
 Common Types of Contract/Compensation methods:

1. Firm-fixed price or lump-sum contract

a. Firm-fixed price
b. Fixed-price incentive fee
c. Fixed price with economic adjustment price

2. Unit price
a. Specific price for a particular task or unit of work performed by the contractor
b. In this method, each unit of work is to be precisely defined
3. Cost reimbursement contract (cost plus)
a. Cost plus percentage fee
b. Cost plus fixed fee
c. Cost plus incentive fee
d. Cost plus award fee
4. Remeasurement contract
a. Bill of quantities
b. Schedule of rates
c. Bill of materials
5. Target price contract
6. Time and material contract
7. Guaranteed maximum price (GMP)
a. Cost plus fixed fee GMP contract
b. Cost plus fixed fee GMP and bonus contract
c. Cost plus fixed fee GMP with arrangement for sharing
any cost-saving type contract