Alternative Delivery

In many states (Arizona and Texas included) public and private entities may acquire construction services through means other than traditional Low Bid.  

The traditional Low Bid Method (sometimes called Hard Bid or Design-Bid-Build) may be very familiar, but it does not necessarily offer the best value for Owners.  Alternative Project Delivery Methods (APDM or Alternative Delivery) may offer Owners improved schedule and cost savings.

APDM

Alternative Project Delivery Methods

CMAR_icon2

Construction Manager at Risk

During the Construction Manager at Risk (CMAR, CM@R, sometimes pronounced “C – mar”) process the contractor provides constant feedback to the Owner and Engineer during the design phase. This comes in the form of continual development of the budget and schedule as the project takes shape. The contractor is then able to provide direction to help minimize costs and construction duration. In return the CMAR contractor minimizes their risk when developing the ultimate price of the job, called the Guaranteed Maximum Price (GMP), because the intimate details of the project are known from the beginning. This decrease in risk generally equates to lower overall cost. The CMAR process also allows for the early procurement of long-lead equipment and materials with volatile pricing (for example steel) prior to the project’s design being 100% completed.

Felix Construction has successfully completed over 30 water and wastewater CMAR projects for municipalities, developers, and private water/wastewater companies ranging from a $700,000 digester improvement project to a $15,000,000 WWTP expansion project.

Best Suited

New renovation or complex projects that are sequence of schedule sensitive, difficult to define or subject to change. This delivery method is approached with a team concept.

Least Suited

New projects easily defined lacking schedule sensitivity.

Organization

The Owner independently hires an Engineer and the CMAR Contractor. Typically the CMAR Contractor is brought in between the 30% and 60% design stage. The CMAR and Design Engineer then work through the remaining design phase (Pre-Construction phase) to ensure the project is designed to the requirements of the Owner and meets the project intent without compromising on price and quality.

Pros

  • Qualification-based selection
  • Team concept
  • Common goals & objectives
  • Design phase assistance
  • Faster schedule delivery
  • Less expensive
  • Change flexibility
  • Fewer claims & legal issues

Cons

  • Owner must provide project parameters — cost
  • Team concepts must be implemented — open communication
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Design-Build

Design-Build (D-B, D/B) process is an Alternative Delivery method that teams up a Design Engineer and Contractor right from the start. The Owner will select a single Contractor/Design Engineer team (this is different from CMAR in that instead of the Owner having separate contracts with the Design Engineer and Contractor, the Design Engineer, because of bonding abilities, is typically a subcontractor to the Contractor). The engineer is able to rely on the contractor expertise on schedule (long lead items), costs, constructability, etc. during the development of the design. These types of projects tend to go very smoothly due to the fact that parties are all on the same team and have input right from the start.

Felix Construction has successfully delivered D-B projects for municipalities, developers, and private water/wastewater companies since 2000. Our D-B project experience ranges from a $300,000 Injection Well Project to a $6,000,000 WWTP project.

Best Suited

New or renovation projects that have highly aggressive schedule requirements.

Least Suited

Projects that are difficult to define and are less schedule sensitive with participants lacking an understanding of Design-Build process.

Organization

The Owner hires a D-B team which consists of an Engineer and a General Contractor.

Pros

  • Qualifications-based selection or best value selection
  • Single point of responsibility for design and construction
  • Team concept
  • Common goals & objectives
  • Faster schedule delivery
  • Less expensive
  • Fewer claims & legal issues

Cons

  • Owner must provide project perimeters — costs, schedule, quality, etc.
  • Loss of check and balance
  • May be more difficult for Owner to manage project
  • Team concepts must be implemented — open communication, trust, commitment, etc.
  • Perception of threat to "in house" staff
JOC_icon2

Job Order Contracting

Job Order Contracting (JOC, sometimes pronounced “JOCK”) is an Alternative Delivery method which is commonly used by municipalities and private water/wastewater entities for renovation and upgrade work or typical service agreement-type work. JOC contracts are also used for emergency projects where there is no time to go through the traditional channels of contract negotiation. In JOC, the Owner selects one or multiple JOC contractors to be “on-call” for a certain time duration or budget amount.These selected Contractors negotiate rates upfront for labor, equipment, overhead, etc. When a construction need arises, the Owner selects the best suited JOC contractor for the work and issues them a Job Order (JO). Often times, Job Orders do not have any formal design documents. If formal engineering is necessary, once a JO is issued, it often takes on characteristic of CMAR or D-B where the contractor works closely with a Design Engineer to solve the Owner’s problems.

Felix Construction Company has successfully completed over 15 JOC contracts with over 350 individual Job Orders for numerous municipalities and private water/wastewater companies. We have also been re-selected for every JOC that has been up for renewal, further reinforcing our commitment to Owners and their projects.

Best Suited

Projects with schedule sensitivity, single or multi-trade needs, repairs, alterations, or renovation projects. JOC requires dedication and trust from both the Owner and Contractor to do what is in the best interest of the project.

Least Suited

Simple projects with defined work scope lacking schedule sensitivity.

Organization

The Owner hires a Contractor directly to do the Job Orders. Design work may fall under this also where an Engineer is hired by the JO Contractor.

Pros

  • Qualification-based or best value selection
  • Faster schedule delivery
  • Reduced "up-front" time & cost
  • Less expensive
  • Fewer changes
  • Incentive for higher quality
  • Trade subcontractor may perform as JOC and does not have to be a general contractor

Cons

  • Perception of threat to "in-house" staff
  • Requires teamwork to reach potential
  • Need trained Owner personnel to best administer contract