There is no "one size fits all" delivery system for successful construction projects. Regardless of the type of project delivery system selected, most projects will experience challenges. When selecting a project delivery method, the common areas of concern for all projects are: budget, quality, schedule and risk assessment. Understanding the various project delivery systems is critical. This article introduces the reader to the general contractor, construction manager and design-builder, respectively.

The general contractor ("GC") is not involved in the project design and typically bids the project on a lump sum basis in reliance upon the plans and specifications created by the architect engaged by the owner. The GC holds the trade contracts and is responsible for the timely and proper performance of its subcontractors. Price is typically the deciding factor when an owner engages a general contractor to construct a project, though in the public procurement arena, the owner is permitted to consider the qualifications and financial responsibility of the general contractor when making an award.

Ultimately, the rights, duties, responsibilities and remedies applicable to the GC form of project delivery are primarily determined by the contract documents.

Construction management is tailored to the planning, design and construction process. There are primarily two different types of construction management – advisor and constructor. The CM as constructor holds the trade contracts, the advisor does not. There are also different types of CM compensation/delivery systems: cost-plus, fixed price, lump sum and guaranteed maximum price.

The CM/Constructor, or CM "At Risk," holds the trade contracts and is contractually responsible for the successful performance of the work, timely completion of the work and the cost of the work. Keep in mind that the issue of CM/Adviser vs. CM/Constructor is not a mutually exclusive question – on certain jobs, the project may warrant and be best served by the utilization of both. For example, a CM/Adviser may be engaged by the Owner to manage a program of construction while another firm or firms may be utilized as a CM/Constructor to deliver the individual projects.

During the pre-construction phase, while the design is being prepared and necessary approvals are being obtained, the CM usually will perform any or all of the following functions:

• Assist in the development of owner's project needs or program through discussions with owner, designer, and consultants;
• Prepare preliminary budget estimates and refine/update as warranted;
• Analyze the constructability of the preliminary plans and specifications;
• Generate a preliminary schedule;
• Propose and evaluate value engineering solutions to develop alternate designs and material selections to achieve economies of time and money;
• Assist owner with development of pre-qualification criteria for trade contractors and assist in the bidding of trade contracts including developing bidder interest, reviewing submitted bids, and making recommendations regarding bids to the owner;
• Assist owner with development of safety and security plans;
• Assist owner in obtaining necessary permits and approvals from applicable regulatory and governing authorities;
• Advise owner of the need for, and potential costs of, additional consultants and assist the owner with the administration of consultant agreements; and
• Coordinate the ordering of long lead time equipment and materials.

During the construction phase, the CM is responsible for the administration and management of the separate trade contracts. Construction phase duties of the CM may include any or all of the following:

• Continue working with designers to consider value-engineering proposals and requests for substitutions and alternates by the trade contractors;
• Administration of individual trade contracts;
• Processing applications for payment from trade contractors and consultants in conjunction with the design professional;
• Updating the project schedule;
• Implementing and enforcing security on site;
• Maintaining project correspondence;
• Handling submittals;
• Conducting progress meetings and taking/preparing/circulating minutes of same;
• Reviewing, updating and comparing costs of construction with project budget;
• Consulting with the owner with respect to any claims, requests for changes, requests for information or disputes;
• Providing periodic progress reports to the owner;
• Review and update of schedules;
• Managing on-site quality control inspections;
• Reviewing trade contractors' safety programs;
• Resolving trade contractor claims;
• Coordination with design professionals;
• Surveillance and recording of site activity;
• Attending meetings with owner as technical adviser;
• Coordinating with design professional regarding substantial and final completion inspections; and
• Receiving, assembling and reviewing project completion documentation including warranties, as-built drawings, operation and maintenance manuals, waivers and releases, warranties, and insurance policies.

There are a number of boilerplate or standard construction management agreements. Standardized agreements reflect the drafter’s perspective of the typical priorities on a commercial construction project. Because every project comes with its own set of issues, concerns, legal requirements and potential problems, all parties are well served by, at a minimum, having the contract documents reviewed by competent construction law counsel.

Despite the fact that design-build as a delivery system has increased in popularity over the last 20 years, it is not by any means a new delivery system. To the contrary, the design-build method of project delivery emanates from the concept of a master builder that was used in ancient times. In 1996, 18% of all new construction was design-build. In 2001, 40% of all new construction was design-build. Today, design-build represents 50% of commercial construction. There are numerous variations on the design-build method, including: (1) turn key projects: the design-builder furnishes additional services such as purchasing the land and project financing. (2) EPC: Engineer, procure and construct - this is the application of design-build to industrial projects. (3) DBO: Design, build and operate - wherein the design-builder also agrees to operate the property for a specific period of time after completion. (4) DBOM: Design, build, operate and maintain - this combines design-build with both operational and maintenance responsibilities. (5) DBLB: Design, build, leaseback - this combines the traditional design-build method of project delivery with financing provided by the design-builder which, upon completion, leases back the building or project to the Owner. (6) BOT: Build/Operate/Transfer - wherein the design-builder typically provides financing and then leases back the building to the owner, agreeing to transfer complete ownership of the project to the owner at a specified date in the future.

Unlike the design-bid-build method, in which the owner enters into separate agreements with the design professional and the contractor, the owner typically enters into one agreement with a single entity or team (the "design builder") to design and construct the project. There are many options in terms of team structure in the design-build method. For example, the designer and contractor may form a joint venture for the project; the contractor or designer may serve as the lead for the design-builder for the project; the designer and constructor may join together to serve as the design-builder for the project. Depending upon the local and state licensing requirements, a design-builder entity may be a joint venture, corporation or limited liability company. In this scenario, the design-builder would enter into a contract with an architect or an engineer for the design services and with a contractor to be responsible for the construction services (or multiple trade contractors to perform the work). Alternatively, instead of forming a separate design-builder entity, the design-build team may be led by either the A&E firm or the constructor. Due to the traditional importance of bonding capability and financial resources, in the majority of instances where a design-builder entity is not established, the entity entering into an agreement with the owner is a constructor, which thereafter subcontracts directly to an A&E firm for performance of design services.

Regardless of the project delivery method selected, candid, consistent and timely communication, appropriate expectation management and comprehensive customized contract documents are crucial to the success of all projects.