On Time, On Budget: A Client’s Guide to Project Delivery Methods 

This guide outlines a comprehensive process for evaluating project needs, assessing the Client’s organizational readiness, and ultimately selecting the PDM that meets their project needs as closely as possible. This process emphasizes the importance of:

• Client involvement: Clients must play an active role in understanding each PDM’s intricacies, evaluating their capacity for involvement, and collaborating effectively with project teams.
• Project complexity: The size, scope, quality, and design challenges of a project significantly influence the choice of PDM.
• Financial considerations: Budget constraints and the Client’s tolerance for risk are crucial factors in determining the appropriate project delivery approach.
• Stakeholder participation: Engaging stakeholders, including post-occupancy users and the surrounding community, ensures that other diverse perspectives and factors that impact the project process are considered.
• Operational needs: Integrating operational aspects into the design phase, particularly for projects like hospitality developments, is essential for long-term operational success.

Thoroughly analyzing each Project Delivery Method (PDM) and involving industry experts where needed (such as experienced Independent Project Management Consultants) allows Clients to make informed decisions that align the PDM selected with the competitive selection of appropriate team members to meet their project goals.

This guide advocates for an Alternate Project Delivery Method that implements a nuanced approach that prioritizes team collaboration and risk reduction, ultimately leading to a predictable project delivery outcome. This approach paves the way for exploring alternative methods, such as the Integrated Project Management Approach (IPMA) presented in an executive education program at the Harvard Graduate School of Design, which overcomes the limitations of both Traditional and Advanced PDMs to provide a more reliable and predictable path to project success.

In the 21st century, the construction industry faces a critical challenge: no single Project Delivery Method (PDM) perfectly addresses the diverse needs of clients and projects. While four established methods— The Traditional Design/Bid/Build (DBB), Design-Build (DB), CM@Risk, and the Advanced Integrated Project Delivery (IPD)—offer distinct approaches, each presents its own set of limitations.

For all these Project Delivery Method’s the project objectives typically are:

• Budget compliance
• Schedule compliance
• Achievement of the desired quality level (which may include sustainability standards and low maintenance provisions)
• Ensuring the Design remains intact at project completion

Clients are often left with a difficult choice, seeking a solution that balances budget compliance, schedule adherence, quality achievement, and design integrity, while mitigating risks and maximizing stakeholder satisfaction. This section, “A Client’s Guide to Selecting a Project Delivery Method”, evaluates the Client’s readiness. The Guide is followed by ten criteria for the Client to evaluate the selection process itself (Section 2.0).

The process of choosing the most suitable Project Delivery Method for the Client’s specific project is a complex and multifaceted task.

While Section 2 overlaps with the previous discussion on the Client’s readiness to assume their project delivery role (as outlined in Section 1.0), next, let’s focus primarily on the selection process itself. Here are some questions and criteria to assist the Client:

1. As you choose the PDM, what are the client’s project objectives and goals?
   • Scope Representation
     • Begin by articulating a detailed project scope, consider the specific objectives and desired outcomes, and in particular, if the project is straightforward with clear deliverables or is complex, requiring multiple phases and stakeholder involvement.
   • Establish Timeline Requirements
     • The Client should consider the project schedule to adequately define their required schedule goal. For example, are there pressing deadlines due to external market or other factors, or can there be some flexibility in the delivery time while identifying critical project milestones that can help in deciding the appropriate delivery method?
   • Quality Expectations
     • Clearly identify the quality standards required throughout the project at its delivery together with all post-occupancy for functional performance requirements and the required aesthetic standards, while determining if industry-specific benchmarks or client-specific expectations must be met.
2. As you choose the PDM, how complex and large is the client’s project?
   • Identify Complexity Elements
     • Understanding the complexity of your project is necessary. Projects involving intricate designs, numerous stakeholders, or significant technological integration often benefit from integrated delivery methods, such as Integrated Project Delivery (IPD), which fosters collaboration from early design stages. Simpler projects may align better with traditional approaches like Design-Bid-Build (DBB).
   • Consider Project Size
     • Large-scale projects often have unique challenges that necessitate a careful selection of delivery methods that can manage risk effectively. Options such as Construction Management at Risk (CM@Risk) or Design-Build (DB), while they have their own challenges, may be more appropriate for substantial undertakings that require intricate coordination and risk-sharing mechanisms.
3. What is the required level of client stakeholder involvement?
   • Gauge Needed Stakeholder Input Requirements
     • Assess the extent of involvement that various stakeholders, including Clients, consultants, post-occupancy users, and the surrounding community, may need to be appropriately addressed in the project’s design and subsequent construction phases. Understanding their respective needs requires a level of engagement of necessary stakeholders at the appropriate time in the process, which will guide the Client towards a suitable delivery method.
   • Reflect on Decision-Making Processes
     • In addition to the Client’s / Client Team’s availability, consider how decisions are made throughout the project and if there is a need for flexibility to accommodate design changes. The collaborative method may provide the necessary adaptability, such as DB, CM@Risk, or IPD, compared to more rigid DBB traditional processes.
     • Also, consider the need for specific Consultant Advisory involvement depending on the operational use of the project, which is frequently utilized in Hospitality Projects when the Hotel Operator is required to be included from the outset to establish brand and operating strategies together with Economic and other similar Market Studies to focus on niche markets that are unfulfilled by the competition, which will benefit the project’s operations once it is completed.
4. What are the client’s budget and financial constraints?
   • Budget Certainty Evaluation
     • Determine whether the Client is in a position to utilize fixed pricing models, like DBB, where costs are established at the completion of the design phase through competitive General Contractor bidding, (although, as a cautionary note, DBB provides a lower initial cost at the completion of design, that may not be the final project cost largely due to the process of intentionally separating design from construction, which can cause predatory contractor behavior who may focus on errors or omissions in the design documents to create the change orders), or if the Client’s project can accommodate and will benefit more from variable pricing models, such as CM@Risk or DB, which involve more uncertainty but offer flexibility which may include a GMP process to provide a cap on the GC’s cost.
   • Cost Management Considerations
     • Look into delivery methods that facilitate better control and management over costs. This can be particularly important in more complex or unpredictable projects where unforeseen expenses may arise, which frequently rules out DBB for anything but straightforward projects, although it is frequently required for publicly funded projects due to their legal requirements to separate design from construction due to their concern with collusion between the Design Team and the General Contractor.
5. Consider the Relationship Between Parties
   • What is the preferred relationship between parties involved in the project (collaborative vs. competitive)?
     • Investigate your preference for a collaborative working environment, as seen in Integrated Project Delivery (IPD) or Design-Build (DB) methods, which, although established, the collaborative method frequently does not confirm the project budget until the design is sufficiently developed, by which time if it is not what is expected can only be lowered by scope reduction and frequently does not involve competitive bidding by the General Contractor versus a traditional competitive landscape such as Design-Bid-Build (DBB), where competitive pricing will be obtained through competitive bidding at the completion of design. This choice can significantly impact project dynamics and outcomes.
   • Trust and Collaboration
     • Evaluate the level of trust among team members and stakeholders, as a high level of trust may suggest an inclination towards more integrated approaches that foster close collaboration such as IPD, while DBB inherent process risks can result in cost increases and schedule extensions if the A/E bid documents are not complete or coordinated (see above).
6. What are the client’s risk tolerance and liability concerns?
   • Assessing Risk Appetite
     • As noted in 2.0 above, it is vital to understand your organization’s tolerance for risk. Integrated or collaborative delivery methods can distribute risks among various parties, minimizing the burden on a single entity. Conversely, traditional methods such as DBB may leave the Client with significant risk exposure.
   • Understanding Liability Concerns
     • It’s essential to comprehend how each potential delivery method addresses liability and insurance considerations, especially concerning delays, cost overruns, or other issues that could jeopardize project success.
7. What is the experience and capacity of the project team?
   • Expertise Evaluation
     • Prior to hiring, evaluate the needed qualifications and experience of your proposed project team members, and that they possess a history of successfully completing projects utilizing specific delivery methods, as their background can greatly influence the selection process unless the team is supplemented by a Project Management Consultant who through their experience can mitigate potential risks resulting from the appropriate selection of a Project Delivery Method for the Client’s project needs before selecting the project team.
   • Internal Capacity Assessment
     • Assess whether your organization has the internal resource capacity to effectively manage collaborative efforts if you opt for more integrated delivery approaches. Determining if the Client’s staff have the required training andexperience is crucial, or alternatively, supplement the team with the needed expertise in the form of an experienced Independent Project Manager.
8. What regulatory and contractual considerations need to be addressed?
   • Regulatory Compliance
     • Investigate the legal and regulatory requirements that may affect the choice of delivery method (as discussed above). Certain Public Works projects have stipulations for public open competitive bidding or qualifications for contractors that must be considered, which frequently requires the Client to select DBB, which in itself has its own significant challenges.
   • Contract Structure Analysis
     • Understanding the types of contracts associated with each delivery method is vital. This will inform you how risks, responsibilities, and liabilities are allocated among the parties involved.
9. What can be learned from similar project types?
   • Benchmarking and Case Studies
     • Look into past projects that are like yours within the industry. Analyze their chosen project delivery methods and the successes or challenges encountered during their execution to make a more informed opinion.
   • Valuable Lessons Learned
     • Gathering insights from previous projects can provide critical lessons regarding what worked well and what did not, informing your decision on the appropriate delivery method for your current project.
10. What do industry experts contribute to the project’s success?
    • Expert Engagement
      • Consider bringing in consultants or industry experts, (such as Independent Project Management Consultants), who are experienced in the Project Delivery Method options and the appropriate team selection process applicable to each option) early in the Project Delivery Method processselection discussion so that they can provide specialized insights tailored to your project’s unique needs for the project type, scale, and complexities, together with each Project Delivery Method’s inherent challenges. A fresh perspective could clarify options, identify potential pitfalls, and focus the Client on appropriate solutions.
    • Facilitated Workshops
      • Organizing workshops or discussions with stakeholders and project team members can foster a collaborative environment to collectively brainstorm the benefits and drawbacks of variousdelivery methods, although it should be understood that not all A/E teams are suitable for every Project Delivery Method in which case an experienced Project Management Consultant can help in the selection of the appropriate Project Delivery Method for the Client and select the appropriate A/E team and General Contractor accordingly.

To make a well-informed decision, clients should:

1. Develop a comprehensive pros and cons list based on the inquiry in sections 1.0 and 2.0.
2. Actively involve all key stakeholders in the selection process to ensure diverse perspectives are considered and integrated, particularly those relating to operational requirements and post-occupancy needs.
3. After reviewing the criteria above, select a delivery method that aligns with the expertise and experience of trusted team members, fostering a collaborative environment and facilitating efficient project execution.

Although none of the established Project Delivery Methods provides a comprehensive and reliable solution to meet both theindustry’s and the Client’s needs for effective project delivery, choosing the Project Delivery Methods, (Design/Bid/Build, Design Build, CM@Risk and IPD), that aligns with the Client’s project needs is an essential an intricate process that hinges on a blend of factors, including the type of project, its complexity, financial considerations, appropriate team selection, stakeholder participation levels, post occupancy operational needs and the desired risk tolerance associated with the selected Project Delivery Method.

By performing a comprehensive assessment using the steps highlighted above, the Client can arrive at a well-informed decision that is not only aligned with their project’s objectives but also enhances the likelihood of predictably achieving successful outcomes.

Ultimately, this thoughtful approach to the Project Delivery Method and subsequent appropriate A/E and GC team selection will provide a strong foundation for project success, ensuring that it meets the expectations of all involved parties while adhering to budgetary, schedule, and quality constraints.

Should you wish to obtain a deeper understanding of the respective Project Delivery Methods noted above (DBB, DB, CM@Risk and IPD) with their individual advantages and disadvantages which in contrast is compared to a proven Alternate Project Delivery Method that addresses the industry’s challenges and meets the industry’s needs, please join us at Harvard GSD to learn more about the Integrated Project Management Approach (IPMA) to Project Delivery.

The IPMA Method embraces the advantages of Design/Bid/Build, Design-Build, CM@Risk and IPD and while countering the disadvantages of these Methods to provide a Risk Reducing, Collaborative, Cooperative, Transparent, Accountable, Controlled, Open Book Team Approach to Project Delivery, which has a proven track record of reliably and predictably achieving the Client’s and the Project Team’s project objectives on 132 projects of differing types and scales.

I sincerely hope you can join us. – Tony