Alternative Project Delivery
The Benefits of Alternative Delivery
Every job takes on its own identity. While emerging technologies, regulatory criteria, and unclear expectations can shift project scope as the design evolves, alternative project delivery (APD) models can enhance the traditional approach to design and construction planning, giving each project the room, it needs to adapt.
Alternative delivery models:
• Shorten delivery schedules
• Optimize risk allocation among the parties
• Simplify stakeholder feedback loops
• Create better cost control and cost certainty
• Support more robust final projects
The average design on a DBB project takes 1,139 days from start to final approval. Alternative delivery methods accomplish that same function in a quarter of the time.
Committed To What's Right
Alternative delivery overlays construction with design elements to create a more efficient project schedule. Instead of a transitive model where progress is passed from design to construction, this approach engages all parties from day one to create collaborative solutions to potential obstacles.
Because many alternative delivery models execute both stages in tandem, these methods rely heavily on ongoing communication between agencies.
This enhanced integration allows all parties to build trust-based relationships, develop collaborative solutions to challenges, and disperse risk in a fair and efficient manner. By focusing key evaluation criteria on quality and ethics and qualifications rather than the lowest possible price, owners are free to concentrate on more long-term goals like sustainability, quality, and innovation – resulting in the selection of the best contractor team for the job, and, ultimately, the best possible value per dollar.
To obtain optimal results from APD collaborative processes the agency, builder, and designer must work together as an integrated team. By uniting each group into a project-focused unit, the team is better able to:
- Prioritize value engineering
- Explore innovations that impact constructability
- Improve design quality
- Optimize schedules and timelines
- Allocate risk properly
- Improve cost control and cost certainty
- Reduce change orders and overruns
Beyond Design-Bid-Build
Alternative project delivery (APD) offers agencies a more agile contracting practice compared to traditional Design-Bid-Build (DBB). DBB is an intentionally linear process intended to award contracts to the lowest bidder. Typically, an agency awards each phase to a separate contractor who performs their job and exits the project. As a result of this handoff, timelines often extend beyond their initial scope and owners experience overruns and schedule delays.
Many APD models combine roles to consolidate the vendor ecosystem and get builders involved earlier in the project planning process. The result is a model that allows agencies, contractors and designers to shape the final model to the project’s needs—not the other way around. Generally, these methods:
- Value and prioritize collaboration and design-builder qualification overestimated costs.
- Provide transparent cost analysis and record keeping.
- Identify risk and provide agencies options to mitigate the impact of risk.
- Secure a set final delivery date.
- Create a more realistic final cost.
Common Alternative Project Delivery Models
Progressive Design-Build (PDB)
PDB jobs connect agencies with a single design-build partner that is responsible for managing and executing the project from start to finish. These contracts unite the agency and design-builder in a collaborative, iterative relationship built on managed risk and mutual respect. After qualification and experience-based selection, the contractor leads every stage of development — support planning, design, procurement, construction, and beyond. Because the final scope isn’t determined until midway through design, the design-builder and agency have the flexibility to agree on a final target price and completion date after the job is awarded.
Design-Build (DB)
DB contracts function like PDB, but with less integration between the owner and design-builder. In this model, an owner will progress project design to approximately 30% before selecting a design-builder. Subsequently, a design-builder will be selected on a lump sum basis to provide innovation analysis, constructability and schedule benefits. However, the design-builder’s ability to demonstrate various risk-reduction measures is relatively limited as it takes the cost and schedule risk associated with the fixed price, date certain bid.
Construction Manager General Contractor (CMGC)
CMGC is a construction-focused progressive delivery method that integrates the client, engineer and contractor into one team to develop the most efficient cost and schedule. These contracts mirror the benefits of PDB’s early contractor involvement and qualifications-based selection but split the responsibility between a design partner and a construction partner. CMGC invites additional specialized voices into the conversation while still keeping a close-knit group of key stakeholders and contractors responsible for the final execution. Like PDB, the CMGC procurement process evaluates and selects contractors based on qualifications and experience.
IPD/Alliance
The IPD/Alliance delivery model is a relationship-style arrangement that unites the agency, engineer, and contractor early on to work together to deliver the project. This partnership shares project risks and rewards, aligning interests in the process. IPD/Alliance is beneficial when there is a strong need to deliver quickly within an integrated team that can collectively manage risk.
Public-Private Partnership (P3)
P3 is a project delivery model that involves an agreement between a public owner and a private sector partner for the design, construction, financing, and often long-term operations and maintenance of one or more infrastructure assets by the private sector partner over a specified term.
Alternative delivery by Kiewit
For nearly thirty years, Kiewit has led North American contractors and engineers in exploring alternative solutions for unique challenges. This pursuit of innovative, construction-focused engineering has established our reputation as the trusted name in construction and engineering. From driverless transit systems and electric vehicle infrastructure to hydrogen power and vertical construction, our constant evolution and innovation foster a contracting acumen tailored for even the most complex industries.
Considering an alternative delivery model for your next job?
Our engineers, builders, and subject matter experts can help frame your contracting options to find the ideal method for your project. Contact us today to discuss how alternative delivery benefits your project.