1. Single Source PROJECT DELIVERY SYSTEMS: Engineer/Procure/Construct and Design-Buildby
Awad S. Hanna, Ph. D., P. E.
The University of Wisconsin, Madison
Department of Civil and Environmental Engineering
Construction Engineering and Management Program Ⓒ
Prof Awad S. Hanna
Prof Awad Hanna

2. Single Source Project Delivery System
Outlines:
Introduction and definition of terms
Advantages and disadvantages to owners and contractors
Importance of involving major specialty contractors and vendor up front in the project development
Required conceptual designs and assemblies cost data
Value engineering studies
Prequlaification, proposal evaluation, and insurance and bonding Ⓒ
Prof Awad S. Hanna

3. Traditional Method (Design_then _Build)
Also known as design_bid_build or hard money or competitive bid contract.
Has three sequential phase
design - bid - construction.
Architect-Engineer hired
Architect-
Engineer
hired
Bid/Award
Design Phase
Construction Phase
Single Construction Contract Ⓒ
Prof Awad S. Hanna
Prof Awad Hanna

4. Traditional Organization
Owner
A/E
General Contractor
Sub
Contractor
Sub
Contractor
Sub
Contractor
Sub
Contractor
Sub
Contractor
The owner contracts separately with designer and a contractor Ⓒ
Prof Awad S. Hanna
Prof Awad Hanna

5. Estimating Needs for Design-Bid-Build
Complete set of drawings
Specification
Other contract documents
General conditions
Special conditions
Addenda
Others (soil report) Ⓒ
Prof Awad S. Hanna
Prof Awad Hanna

6. Single Source Delivery
1. Design Build
2.Engineer/Procure/Construct (EPC)
EPC model#1 ( CM agency “pure” )
EPC model#2 ( CM at Risk )
Other
Multiple prime contractors
Owner design construct
Integrated teams or strategic alliance
Design-Build-Finance and Design-Build-Develop Ⓒ
Prof Awad S. Hanna
Prof Awad Hanna

7. Fast Track or Phased Construction Method
CM and A/E or
DB hired
Concepts
Working Drawing
Design Phase
Construction Phase
Variable separate construction contracts Ⓒ
Prof Awad S. Hanna
Prof Awad Hanna

8. Level of Influence Time Project Cost Influence Ability to InfluenceⒸ
Prof Awad S. Hanna
Prof Awad Hanna

9. 1. Design Build Owner Design-build entity Own force Subcontractors
work
Single firm performs both design and construction under single design-build contract. Ⓒ
Prof Awad S. Hanna
Prof Awad Hanna

10. Advantages of Design & Build for Owners
Owner only has to communicate with one entity for the entire project
Total project duration can be reduced because phased construction is easier to implement,(Fast tracking)
Integration of construction planning and design phases
Claims reduction (reduction of adversary relationships)
Innovation in design and construction can be encouraged
Risk assigned to party best able to manage that risk Ⓒ
Prof Awad S. Hanna
Prof Awad Hanna

11. Disadvantages of DB for Owners
Fewer checks and balances, owner must rely on integrity of the design-build firm
All your eggs in one basket Ⓒ
Prof Awad S. Hanna
Prof Awad Hanna

12. Advantages to a design-build organization
Improved constructibility through design/construction integration
A specialized organization can be developed that has a specific expertise which will be attractive to specific market areas
Reduction of negligence claims between the Architect/Engineer and the construction contractor since they are under one umbrella firm
Ability to react rapidly to change in scope Ⓒ
Prof Awad S. Hanna
Prof Awad Hanna

13. Disadvantages for the design-build firm
Acceptance of additional project risk
Scope of work changes can be difficult to identify under DB/ fast track construction Ⓒ
Prof Awad S. Hanna
Prof Awad Hanna

14. Summary of average differences between project delivery systems (CII-133)Ⓒ
Prof Awad S. Hanna

15. Importance of Involving Specialty Contractors up front in the Project Development
Specialty works represent 60% to 70% of the project cost
Specialty works control the pace of construction
Integration of electrical and mechanical systems early in the design stage
Specialty works are labor intensive
(high risk for cost overrun) Ⓒ
Prof Awad S. Hanna

16. 2. Engineer/Procure/Construct Model#1 (EPC)
Pure CM
(CM agency)
Owner
In-House Design
or Engr. Firm CM
Specialty Contractors
and Vendor
Specialty Contractors
and Vendor
Specialty Contractors
and Vendor
Specialty Contractors
and Vendor
EPC Model #1 Ⓒ
Prof Awad S. Hanna
Prof Awad Hanna

17. 2. Engineer/Procure/Construct Model#2 (CM at Risk)
General Contractor acting as CM
Owner
Engineering/Procure
Construct
Specialty Contractors
and Vendor
Specialty Contractors
and Vendor
Specialty Contractors
and Vendor
Specialty Contractors
and Vendor
EPC Model #2 Ⓒ
Prof Awad S. Hanna
Prof Awad Hanna

18. Estimating Needs for Single Source Delivery
Conceptual Design
General idea about the proposed quality
Assemblies cost data
Update your estimate as the design develops
Value engineering studies Ⓒ
Prof Awad S. Hanna
Prof Awad Hanna

19. Value-Engineering StudyⒸ
Prof Awad S. Hanna

20. Required Conceptual Design and Assembly Cost Data
Example of assembly cost data Ⓒ
Prof Awad S. Hanna

21. Design-Build Issues 1. Prequalification
The reduction of the number of possible bidders to a small group of serious, qualified bidders improves the effectiveness of the selection process. Ⓒ
Prof Awad S. Hanna
Prof Awad Hanna

22. Design-Build Issues (cont.)
2. Proposal Evaluation
Cost only
Cost and time
Multiparameter (quality, safety…etc.) Ⓒ
Prof Awad S. Hanna
Prof Awad Hanna

23. Design-Build Issues (cont.)
3. Legal
a. Insurance and bonding
The contractor should have the proper insurance to cover design deficiencies or cover construction errors.
b. Conflict of interest
Design-build eliminates the checks and balance of the traditional methods. Ⓒ
Prof Awad S. Hanna
Prof Awad Hanna

24. Critical Success Factors for Design-Build
Project team selection;
Pre-qualification of contractors;
Level of design complete prior to engaging construction team;
Individual experience of team members with similar facility type;
Individual experience of team members with the project delivery systems;
Team’s prior experience as a unit;
Project team communication;
Owner type (public or private);
Owner/project team relationship (first time, partnering or repeat);
Owner’s ability to define the project scope;
Project complexity; Ⓒ
Prof Awad S. Hanna