Choosing a project delivery method is crucial when a public entity such as school districts and municipalities embarks on a new construction project. With 100+ years of construction management experience, S. M. Wilson offers valuable expertise with five questions professionals should ask to ensure they choose the proper delivery method that best meets their projects’ needs, budget and schedule requirements.
“Understanding the various project delivery methods and what suits your next project should not be taken lightly. When embarking on a project using taxpayer funding, a public entity wants to use the best possible means to ensure that each dollar is being spent appropriately and going to the right places,” said Mark Cochran, S. M. Wilson’s Chief Operating Officer.
These questions are meant to assist public entities in determining what method will work best for their project and meet all their needs.
1. What Level of Collaboration and Transparency Do We Want Between Design and Construction Teams?
Collaboration can make or break a project. Owners should consider the value added to partnering team members from design and construction early in the process.
The Design-Build or Construction Manager methods may be ideal if a public entity wants to work closely with the design and construction teams to allow for multiple inputs beginning in the pre-construction stage, which increases efficiency, constructability, schedule phasing and provides a better cost return.
The Design-Build method fosters a single point of responsibility, which can streamline communication and decision-making. Using the Construction Manager method, entities are provided two points of responsibility—design partner and construction manager—both hired during the programming and design phase. CM is collaborative and provides a check-and-balance approach.
2. What Are the Specific Goals and Priorities of Our Project?
Understanding the public entity’s project goals is the foundation for selecting the most suitable delivery method. What are the budget constraints, tight timelines, or the need for high-quality finishes? Knowing the project’s priorities will help determine the best project delivery method: Design–Bid–Build, Design-Build or Construction Manager.
Public entities must also consider State statutes, board policies and procurement practices when choosing a delivery method. Does your project have MBE/WBE/DBE goal requirements or LEED stipulations? These are all considerations a public entity must consider.
To better understand each project delivery method, click Project Delivery Methods.
Click here for information on procurement statutes in Missouri and Illinois.
3. How Important Is Project Schedule?
Public projects often have fixed deadlines, like the start or end of a school year. Stipulations regarding how funds from bonds and grants are used might also exist.
If the schedule is critical, methods like Construction Management or Design-Build offer more opportunities to overlap design and construction phases, allowing for more proactive scheduling. In a traditional Design-Bid-Build scenario, the project must be 100% designed before construction can begin. Furthermore, there is not an opportunity to buy materials early for cost and schedule savings.
“Construction Management at Risk (CMAR) helps us prioritize our options. It’s a wonderful process for schools. I would recommend this to any school district. It is a way to help schools that do not have a deep set of expertise in CM really have true partners during design in the construction process. I think it’s a very good value for the community,” said Randy Gooch, retired Chief Operating Officer with Columbia Public Schools.
4. What Are Our Budget Considerations?
Budget is often the most critical factor. Some methods, such as Design-Bid-Build, are known for potentially lower initial costs as contractors compete on price alone, and the lowest-priced contractor is selected.
Other methods, like CMAR, provide more cost predictability from the beginning through contingency management and a Guaranteed Maximum Price (GMP), which benefits public clients working within tight financial constraints.
“With the CMAR delivery of this project, the team has done a great job controlling the project budget. Although there have been no cost change orders, the team has done a good job on pushing back on subcontractor cost overreach, as well as helping facilitate owner-related changes in a manner that is financially prudent for the District and its taxpayers,” said Salum Stutzer, Director of Facilities and Operations, Francis Howell School District.
5. What is our risk tolerance, and how much staff time do we want to allocate to project management?
Different delivery methods allocate risk differently and require different resources from the Owner’s standpoint. Public entities should also consider their in-house staff’s capacity for project management when choosing a delivery method.
With Construction Management Agent/Advisor, the Owner takes on all contractural risk with the Design Team, Construction Manager and Trade Partners, and in-house staff must process and pay all entities, thus holding the risk. In contrast, there is only a single contractual risk with Design-Build.
What Project Method Delivery Is Right For You
The proper project delivery method is pivotal to the success of a public entity’s project. A public professional can ensure a smoother construction process and a successful project outcome by asking these key questions.
“The right method is the one that best aligns with a public entity’s unique needs and priorities. S. M. Wilson encourages these entities to take the time to understand what each method offers and seek expert advice when necessary,” said Patrick Aylesworth, S. M. Wilson’s Director of Operations.
Check out the S. M. Wilson Resources site, smwilson.com/resources
The S. M. Wilson Resources site has valuable information, including links to industry organizations, informational videos, relevant articles, project delivery method legislation and procurement laws in Illinois and Missouri, and additional information that public and private entities will find helpful at any stage of their projects.
Contact Mark Cochran, Chief Operating Officer at mark.cochran@smwilson.com or Patrick Aylesworth, Director of Operations at patrick.aylesworth@smwilson.com for more information about project delivery methods and how S. M. Wilson can assist.
S. M. Wilson & Co. has worked with 45+ school districts throughout Missouri and Illinois. These insights assist school districts in determining their funding availability, creatively working with construction and design partners, and creating the best action plan for that particular school district. For more information about S. M. Wilson, go to smwilson.com.