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The Four Types of Projects

The Four Types of Projects Organizations in Construction

There are FOUR major types of project organizations (and contract delivery methods) on construction projects. We will provide a detailed review of the benefits and shortcomings of each type in upcoming blogs.

1. Design Bid-Build (DBB) – This is the traditional model wherein the Owner, A/E and General Contractor (GC) are three separate entities.

  • The GC (also known as the Prime Contractor) performs under a firm, fixed-price contract. The GC is selected via a competitive bid process; the project
  • Design risk is borne by the Owner because the A/E works for the Owner.
  • Subcontractors work directly for the GC

2. Construction Management at Risk (CMAR) – The CMAR holds the construction contract and is responsible for project delivery.

  • CMAR is brought on board early in the design process.
  • Subcontractors work for the CMAR.
  • Design risk is borne by the Owner because the A/E works for the Owner.
  • The Owner and the CMAR negotiate a Guaranteed Maximum Price (GMP) prior to the start of construction.

3. Agency Construction Management (CM) – CM acts more in an advisory capacity to the Owner.

  • The Owner holds separate contracts with the CM and the A/E.
  • The CM is NOT responsible for the design.
  • The CM is paid a fee for professional services.
  • The Owner holds all trade contracts directly.

4. Design-Build – The Design Builder (DB) is the prime contractor and its team includes the A/E.

  • The DB is responsible for both design and construction.
  • The project is awarded using either a one-step Request for Proposal (RFP) or two-step Request for Qualification/Request for Proposal (RFQ/RFP) process.
  • Project award is based on multiple criteria including cost, team experience, technical merit and schedule.

We encourage the CBG community to relate their thoughts about this important topic.

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