Building Better Together: Advantages of Alternative Delivery Methods
With the growing complexity and costs of large infrastructure projects today, selecting the right project delivery method has never been more critical. Alternative delivery project models, such as Construction Manager/General Contractor (CM/GC) and Progressive Design Build (PDB), can enhance the traditional planning approach, giving projects room to adapt to shifting scopes, unforeseen challenges, regulatory criteria, and more.
Unlike traditional approaches, alternative delivery methods involve the owner, designer, and contractor working together from early stages to ensure the project meets the owner’s needs, is completed on time, and stays within budget. Over the years of using this method to successfully complete projects, including delivering the first horizontal CM/GC project in the U.S., we’ve found transparent communication and collaboration are key to a successful alternative delivery project.
CM/GC, PDB and similar project delivery methods are the most collaborative contract models available today. This makes these methods ideal for projects with complex phasing, accelerated schedules, multiple stakeholders, and the need for cost certainty. They truly shine in instances when budgets become insufficient, as they allow the reconfigurement of projects to ensure goals are still reached.
Benefits of Alternative Delivery Methods
A key component making alternative delivery an attractive option for owners is early cost certainty. Early negotiations on construction costs allow multiple parties to create a refined scope of work and a shared understanding of expectations, which typically leads to further change orders once the project begins. Part of this process includes an open book estimate, which allows the team to create realistic cost representations during preconstruction.
By creating these open channels of communication from the outset, there’s also the added benefit of improved issue resolution. The strong working relationship created during preconstruction helps facilitate a project-first approach prioritizing problem solving. This has the added benefit of prioritizing tasks and uncovering challenges early on, helping mitigate potential delays and unexpected changes.
The collaborative development of each project’s scope, budget, and schedule also typically results in projects without claims. This is due to identifying and working out potential problems before they even arise, allowing the entire team to take a more proactive approach. It also has the added benefit of accelerating completion schedules by 10 – 20%. Meaning alternative delivery is counted on when people need projects on time, and on budget.
Keys to Successful Alternative Delivery Projects
As with most things in life, the key to successful projects is a complete buy-in and investment in success by all parties involved. For a delivery method like CM/GC, it starts with top-level executives having a willingness to proactively work through all steps to reach the best conclusions.
For those who are more accustomed to low-bid environments, the process can understandably feel intimidating at first. Choosing a contractor experienced in these methods can alleviate many of these concerns as they collaboratively work through every step of the project from the onset. Simply knowing they have a proven track record can go a long way towards building confidence in steps are being taken in the right direction.
Starting communications between the teams early is also extremely helpful towards the success of a project. This allows the owner, designer, contractor, and other key stakeholders to identify solutions collaboratively from day 1, and thus creates a mutual trust that carries throughout every stage of the project.
Building this trust and baseline of collaboration will reflect itself throughout the project, but in order to do so most effectively it’s important to have as much personnel continuity as possible. As people work together from preconstruction through the construction phases, they’ll create the rapport and understanding with one another that allows for a more successful project outcome.
Above all else, though, lays project prioritization. Putting aside organizational badges allows the team to put 100% focus on solving project challenges together, as one, committed to the project first. Alternative delivery is a preferred model for many because it provides key stakeholders with the flexibility to do so, resulting in successful projects that shape the future of our country.
At the start of an alternative delivery project, at the end of the day, everything comes down to a willingness to work with one another to find the optimal solutions to solve the challenge at hand.
