There are three methods of project delivery and the advantages and disadvantages of each have been considered in respect to the proposed project. The project delivery system is an important consideration as it has an impact on cost, the amount of risk and the construction schedule. The three types of project delivery systems are: Design-Bid-Build, Construction Manager at Risk and Design-Build.
The Design-Bid-Build delivery method is a traditional method and it creates a clear separation between the designer and contractor. Typically an architect or engineer are hired to develop construction documents. Once the design documents are complete, competitive bids are obtained from interested contractors and the owner determines the chosen contractor. This delivery system is most effective on simple projects that are not under strict time constraints.
The Construction Manager at Risk delivery system assigns a construction manager during the design process and their role is to provide input during the planning process in order to ensure concurrence with the project budget and schedule. Typically the pricing is reviewed at various points in the construction process and results in a guaranteed maximum price which is provided to the owner prior to the onset of construction. This delivery system is most successful on large projects that are required to be completed in a reduced time frame.
The Design-Build construction process is a delivery method that provides for the owner to hire one company to deliver the construction project from start to finish. Since the contracted company is responsible for both the design and construction project components pricing changes are usually isolated to unknown conditions or owner requests. Generally speaking under this delivery system the owner is able to establish a firm maximum price for the project early on and retains a significant amount of cost control. In its best application design-build is used when the owner has clearly established the project requirements prior to design, when there is a firm maximum price and where there is a tight project schedule.
In the case of the project to establish a parking structure it is my belief that the most appropriate delivery system is Design-Build based largely on the advantages relating to budget management, quality control, single-source accountability and enhanced project completion all of which are critical project variables.
RECOMMENDATION:
The recommendation is to approve the request to employ the use of the Design-Build method of construction delivery and to authorize the staff to let a Request for Proposal in that regard.
BUDGET / FISCAL IMPACT:
The construction of the parking structure would be assigned to a qualified firm on a not to exceed basis of $6,500,000 and the financing of the project would be achieved through a revenue bond which would be paid through the use of Community Redevelopment Agency (CRA) program funds.