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After the Revolution: Understanding a Decade of Change in Project Delivery Systems and Their Impact

Publication No
FR-DCC-06
Type
Printable assessment(s)
Publication Date
May 01, 2021
Pages
86
Research Team
RT-DCC-06
DOCUMENT DETAILS
Abstract
Key Findings
Filters & Tags
Abstract
This document is a manual for the selection of project delivery systems (PDSs). This decision is by necessity both an early one – the selected PDS informs many of the procedural elements of a project (e.g., contract structure, timelines) – and a criti
Key Findings

The team represented the 11 subsystems with “equations” of a sort, which assigned appropriate parties the following five responsibilities of a project:

  1. Project Management – includes cost control, schedule control, change management, and safety.
  2. Engineering – includes design detailing, requests for information (RFI) administration, design variations, design administration, and document control.
  3. Procurement – includes purchasing and scheduling delivery of major equipment and supplies throughout the project.
  4. Construction Management – includes the day-to-day oversight of the project, scheduling of subcontractors, work sequencing, site risk management, and constructability.
  5. Construction – includes executing the day-to-day construction of the project.

Thus, as the figure above shows, in Subsystem 1 the owner (O) is responsible for project management, while an EPC firm is responsible for the other four project responsibilities. This is written as “O+EPC” in the context of the report. The following graphic summarizes the 11 equations that resulted from this process.

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As is noted in the report, no subsystem fundamentally altered its PDS to such a degree that it became a fifth PDS (FR-DCC-06, page 23).

Once the user has used the concept file to obtain a clear understanding of the applicability and strengths of each major PDS, the PDS assessment rubric uses a series of driving statements to help the user assess the relative merits of the four principal PDSs.

The research team developed the rubric to show how well each PDS addressed each driving statement by applying the following three-point scale:

3 –  Most Appropriate. This PDS has the highest degree of success in achieving the goal of the driving question or statement.
2 –  Somewhat Appropriate. This PDS will permit some objectives of the driving question to be achieved but may not do so as intuitively or as completely as a PDS that scores “3.”
1 –  Least Appropriate. Using this PDS may make it difficult to realize the objective of the driving question. Consider other choices.
X –  Does Not Apply. This PDS, due to either its contracting mechanism or other internal factors, does not permit the driving statement to be achieved. This PDS should not be chosen for that application. 
 

The report provides instructions to facilitate tailoring the rubric to consider the unique circumstances a project may experience.

This figure shows a sample series of driving statements and the PDSs’ corresponding scores (FR-DCC-06, page 15).

Once stakeholders have gained an understanding of which principal PDS to use, the report helps them determine which subsystem of that PDS might best suit their project by applying flowcharts such as the one shown in the figure. With each answer, the user assembles the equation of the best-suited subsystem (FR-DCC-06, page 25).

To quantitative compare project performance under all four principal PDS categories, RT-DCC-06 collected and analyzed 96 projects. The team calculated a Project Performance Score (PPS) for each project by using six factors with standardized definitions, as shown in the figure below (FR-DCC-06, page 41).

 

The team’s analysis showed that IPD was the best performer in four of the six PPS factors, while CM was the best performer in two. (In the figure below, each best score is shown in boldface, while the worst is italicized.) As a result, the team recommends that the DCC sector consider IPD as a significant option when selecting PDSs for upcoming projects.

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RT-DCC-06 created a concept file that defines the four most prevalent PDSs:

  1. Design-Bid-Build (DBB)
  2. Design-Build/Engineer-Procure-Construct (DB/EPC)
  3. Construction Manager at Risk or Construction Manager as Agent (CMR or CMA)
  4. Integrated Project Delivery (IPD)
     

The concept file discusses each PDS in turn, providing the following specific information (FR-DCC-06, page 7):

  • Definition and description
  • Key concepts that distinguish that delivery system from the others
  • Indicators of applicability (when to apply)
  • Conditions for successful application (how to apply)
  • Cautions (what to avoid)
  • Definition of success
Filters & Tags
Project Phase
Research Topic
Updating Project Delivery and Contract Strategies
Keywords
Project Delivery System, PDS, Integrated Project Delivery, Engineer, Procure, Construct, Construction Manager (At Risk/As Agent), Contracts, Project Performance Measurement, Project Owners, Corporate Strategy, Project Planning, Process Improvement, Projec