Project Delivery Systems and Project Change: Quantitative Analysis

Design/build has become one of the favored project delivery methods in the engineering construction industry. Numerous studies have advocated the use of design/build over the traditional design/bid/build delivery approach. A comprehensive analysis of 67 global projects from the Construction Industry Institute's database shows that design/build projects may not provide all the benefits to project performance. The study found timesaving was a definitive advantage of design/build project delivery, but, the positive effects of cost and productivity changes were not convincing. Based on the results of the study, the project management expertise and experience of the contractor may have a greater impact on project performance outcomes than focusing on project delivery strategy only.     

Total Quality Performance of Design/Build Firms Using Quality Function Deployment

The belief that the design–build (D/B) project delivery system does not lend itself to effective quality assurance and control is quite common in construction circles. Total quality consists of: (1) the corporate quality culture; (2) the quality of the project service; and (3) the quality of the constructed facility. This paper describes a model that was developed to measure the total quality of a D/B firm using quality function deployment (QFD). The first part of this model is described elsewhere and measures the effectiveness of the corporate quality culture and the quality of the service when delivering a project by using QFD. The second part of the model is described in this paper. It makes use of eight building quality factors, three building performance factors, and the relationships between building quality and performance factors (obtained from building users/evaluators) and it measures the quality performance of the constructed facility by using QFD. A total quality performance index is generated by combining the quality performance at the corporate, project, and product levels. The total quality performance measurement model described in this paper can be used by D/B firms to benchmark themselves against their competitors or to monitor their own performance. It can also be used by owners to rank D/B firms relative to their total quality performance.     

Quality Management System for Design Consultants: Development and Application on Projects in the Middle East

In this paper, the development and implementation processes of a quality management system (QMS) for design consultants in the Middle East are presented. The current design practices are first reviewed through the conduct of multiple interviews. The development of the QMS for designing residential and commercial buildings is also based on quality standards from the literature. The practical implementation of the model is conducted using actual design projects in a real design environment. The model implementation consists of three stages, the first stage is awareness; the second stage is benchmarking of existing practice, which is carried out on 20 projects; and finally, the validation of the model is verified using data from 11 projects. The benchmarking of existing performance and the validation of the model are carried out utilizing statistical approaches. The implementation of the QMS model improves the efficiency of the designs and the production process distributions.     

Effect of Delivery Methods on Design Performance in Multifamily Housing Projects

Existing studies on the performance evaluation by the delivery method generally indicate that the design build (DB) method is superior to the design-bid-build (DBB) method in terms of construction duration, cost, and quality. As opposed to the performance of construction duration and cost, where quantitative evaluation is relatively possible, most performance evaluations of quality are based on interviews with the owners. Therefore, this paper aimed at evaluating the level of design performance to conduct a quantitative evaluation on the performance of quality. To achieve this goal, this paper analyzed the impact of delivery methods on design performance in terms of the quantitative evaluation based on the case studies analyzing construction drawings and specifications of public multifamily housing projects delivered through the DB and DBB methods since 2000. The Delphi and analytic hierarchy process methods were used to develop objective standards and contents for evaluating the design performance. An analysis of variance test was conducted to analyze which delivery methods would have an effect on the design performance. Construction industry practitioners can use the results of this study in selecting a delivery method appropriate to the project characteristics.     

Selection of Project Delivery Method in Transit: Drivers and Objectives

This paper describes the results of research on alternative project delivery methods in transit projects in the United States. The research, sponsored by the Transit Cooperative Research Program, aimed to identify those factors that drive the decision in the choice of project delivery method. A rigorous case study analysis based on on-site structured interviews with the directors of several transit projects was used to identify decision drivers and the rationale behind the delivery method selection decision in transit agencies. The nine case studies conducted in this research represent a cross section of delivery methods, including design-bid-build/multiprime, construction manager-at-risk, design/build, and design/build-operate-maintain. The interviewees agreed that the use of alternative delivery methods have resulted in savings in schedule and cost for transit agencies. The research also found that achieving aggressive schedule compression is the most influential factor when selecting alternative delivery methods. Also, implementation of a formal risk analysis as part of the project development process appears to improve the project’s chances of meeting budget and schedule objectives.     

Sources of Changes in Design–Build Contracts for a Governmental Owner

In recent years, many U.S. federal, state, and local governments have been authorized to use the design–build method of project delivery instead of the traditional design–bid–build method. Recent studies have not been definitive on the cost advantage of design–build for governmental owners. There are fewer change orders in design–build due to design errors because the designer (architect/engineer) and contractor are one entity, but there are other causes of change orders. Some literature suggests that changes requested by the owner of the facility are greater with the design–build method. This research examines the causes for construction-phase changes in 14 design–build and 20 design–bid–build projects. Total changes, expressed as number per contract, cost per contract, or percentage of original contract, were significantly lower in design–build. Fewer design errors in design–build accounted for this advantage. The number of owner-requested changes was significantly greater in design–build. The cost of owner-requested changes, averaged over all the projects, was significantly less for design–bid–build. The differences in changes due to differing site conditions were not significant. The concept that there are more owner-requested changes in design–build projects is supported by this research.     

Alternative Project Delivery Systems: Applications and Legal Limits in Transportation Projects

This paper presents the results of a comprehensive survey of the legal codes of all the 50 states in the United States regarding alternative project delivery systems in transportation projects. In the past decade there has been a surge of legislation allowing state transportation officials much more flexibility regarding the choice of project delivery systems. These delivery systems are usually selected based on a combination of price and quality. Specific delivery systems studied in this paper are Design-Build, Construction Management at Risk, and Public-Private-Partnership. The background and history of the emergence of these new delivery systems are studied in this paper. The research showed that in many states, alternative delivery systems may be allowed but with specific restrictions. For each state, all of these delivery systems have been researched and placed into one of the following distinguishable categories: (1) fully authorized; (2) authorized but needs extra approvals; (3) authorized for a pilot program and/or with some limitations; (4) not authorized. The output of the survey gives valuable snapshots over the status of each delivery system in regards to its legality in different parts of the country as of December 2006. Comparing the results of this survey with the surveys done previously shows that the trend is to allow states more flexibility in the choice of project delivery systems.     

Analysis of Owner’s Design and Construction Quality Management Approaches in Design/Build Projects

This paper explores and classifies current approaches to evaluating quality in design/build (DB) proposals. It does so by a thorough content analysis of 78 requests for proposal (RFPs) for public DB projects with an aggregate contract value of over $3.0 billion advertised between 1997 and 2002. In most DB projects, the owner requires the DB contractor to establish a firm-fixed price on a project that has not yet been designed. Usually, the owner also fixes the project delivery period. In the traditional design/bid/build (DBB) system, quality is fixed through the plans and specifications. Thus, in DBB, with schedule and quality fixed, the cost of construction is the factor in which the owner seeks competition. Conversely, in DB, with cost and schedule fixed, the scope and hence the level of quality is the main element of competition. This paper identifies the six owner approaches to articulating DB quality requirements in their RFPs. The six approaches are quality by qualifications, evaluated program, specified program, performance criteria, specification, and warranty. These are important for DB contractors to understand so that they can craft their proposal in a manner that is both responsive to the owners’ requirements and consistent with the owner’s system to make the best value contract award decision.     

Reasons for Cost and Schedule Increase for Engineering Design Projects

Cost and schedule increases are common in engineering design projects. Some research has studied factors associated with better design performance, but the reasons for cost and schedule increases are not formally investigated. This paper identifies the reasons bottom up from four case project documents and further quantifies their contributions to cost and schedule increases. These reasons are complete and can be used to analyze the cause-effect relationship, trace responsibility, and improve performance for engineering design projects.     

Communicating Design Quality Requirements for Public Sector Design/Build Projects

This paper reports the results of a research study focused on how public sector owners articulated the requirements for design quality management in design/build (DB) projects. The research used the content analysis of 75 DB requests for proposals located in 35 states with an aggregate contract value of over $700 million with the mean price per project at roughly $15 million. The projects came from seven federal agencies as well as several state agencies. It found public owners are not availing themselves of the opportunity to evaluate design-builder design quality management plans and are primarily relying on the qualifications evaluation process to ensure design quality requirements will be met. Additionally, virtually all of the public owners in the sample neglected to require constructability reviews as a design quality management requirement in spite of the published benefits of this type of review. Finally, the paper concludes this area is one where a great deal of improvement for practitioners remains and the reason for a lack of focus on design quality in DB projects is due to a failure to shift the owner’s procurement culture from traditional project delivery to DB.     

Framework of Success Criteria for Design/Build Projects

Success has always been the ultimate goal of every activity, and a construction project is no exception. Due to the ambiguous definition of project success and the different perceptions of participants toward this concept, it may be difficult to tell whether a project is successful as there is a lack of consensus. Time, cost, and quality have long been the success criteria used to evaluate the performance of a construction project. However, such a list has been criticized as not being comprehensive. Even studies of the project success of a particular construction method, such as the design/build procurement system, are lacking in most previous research considering construction projects in general. This paper sets out to establish criteria for project success for a design/build project in construction, first by identifying relevant measures of project success for a construction project in past studies, with particular emphasis on design/build projects, and then by establishing a comprehensive assessment framework for project success for design/build projects. The significant impacts on the construction field of study, in terms of educational value and practical use, are also presented. With little research in the project success of design/build projects, the writers suggest a research focus for the study.     

Quality, Environmental, and Health and Safety Management Systems for Construction Engineering

The philosophy behind quality, environmental, and safety (QES) management systems is a concept that has been accepted by various contractors. Furthermore, a process has been developed insuring that the output produced conforms to customer satisfaction without violating any environmental, health, and safety rules and regulations. An effective QES program not only assures a quality product but also reduces costs, and enhances productivity. It is a top down process, i.e., top management together with line management and other employees develop the program and motivate all personnel to accept the process. Important functions to take under consideration are (1) explain and clarify the quality, environmental, and safety performance expected; (2) involve employees in decision-making and problem solving; (3) describe the consequences of poor quality and unsafe/unhealthy work conditions; (4) establish QES goals and provide feedback on performance; (5) provide a self-monitoring system; and (6) recognize and reinforce good performance and develop a reward system. This paper presents a discussion of the development of a portion of a QES management system which has been employed by a medium to large size construction company. In particular, Items 1–4, listed above, are described in detail.     

Strategies for Design-Build in Korea Using System Dynamics Modeling

Increasingly adopted by both public and private organizations, design-build (DB) has become a favored construction project delivery system, outperforming other systems in terms of cost, schedule, and quality. However, DB has been especially criticized by the public sector for practicing subjective evaluation, for requiring excessive resources, and for providing only limited accessibility to small and medium-sized contractors. In Korea, similar critiques have been raised, as these qualities have prevented public owners from benefiting from the potential advantages of DB. In order to address these challenging issues, the present research systematically analyzes the characteristics of the DB delivery system in Korea. Based on industry surveys and an extensive literature review, a qualitative system dynamics model is developed and used to propose and test hypothetical DB policy alternatives which are expected to enhance DB performance. Furthermore, after the appropriate customization processes, these research findings can also be applied to the industry settings of different countries.     

Effects of Delivery Systems on Change Order Size and Frequency in Mechanical Construction

Change orders represent one of the largest sources of cost growth on building construction projects. Field generated, or “unforeseen” change orders can also be highly disruptive to field productivity. Design-build delivery methods can potentially help minimize change orders on construction projects. This study was performed to closely examine the effects of delivery methods on the frequency and magnitude of change orders in mechanical construction, and how design-build business practices can be used to minimize the frequency of field generated chance orders. In a study of 598 change orders occurring on 120 construction projects performed by the same contractor, the total number of change orders was found to be close to the same on design-build and design-bid-build projects, however an 87% decrease in the average number of unforeseen change orders was observed on design-build projects versus design-bid-build projects. In addition, the average size of unforeseen change orders was 86% smaller on design-build projects. A detailed and qualified presentation of the research methodology and resulting data is provided. Key attributes and business practices leading to the results are discussed and practical applications of this research for owners and contractors are provided.     

Implementing Total Quality Management in Construction Firms

As building projects get larger and more complex, clients are also increasingly demanding higher standards for their delivery. Total quality management (TQM) has been recognized as a successful management philosophy in the manufacturing and service industries. TQM can likewise be embraced in the construction industry to help raise quality and productivity. Two case studies of construction companies showed how TQM can be successfully implemented in the construction industry. The benefits experienced include reduction in quality costs, better employee job satisfaction because they do not need to attend to defects and client complaints, recognition by clients, work carried out correctly right from the start, subcontractors with proper quality management systems, and closer relationships with subcontractors and suppliers. TQM performance measures were also reflected through top management commitment, customer involvement and satisfaction, employee involvement and empowerment, customer–supplier relationships, and process improvement and management. Finally, a framework for implementing TQM in construction is recommended.     

QUALICON: Computer-Based System for Construction Quality Management

This paper describes a computer-based system for construction quality management. The system tasks are derived from the elements of ISO 9001 standard and designed to integrate with other computer-aided project management functions. They can assist management in (1) the definition of requirements/criteria for design, construction, and quality management; (2) the development of inspection and test plans; (3) the tracking of actual inspection/test results; (4) the verification of their conformance to defined criteria; (5) the documentation of past experience in the form of standard templates for assisting the tasks involved; and (6) the generation of reports. A model was defined for representing the information used in the system tasks. The central role of the inspection and test plan representation was exploited to associate to construction components and processes, relevant inspections/tests, requirements/criteria, actual results, and nonconformance analyses. Templates were devised to enable the reuse of predefined packages of information, which recur from project to project. The developed system will render the assisted quality management tasks more effective. Its use was tested on data from different construction domains.     

Educational Needs Assessment for Design/Build Project Delivery

With the rapid increase in the utilization of design/build project delivery, there arises a need for continuing education of the professionals in this industry. This paper describes research conducted through a national survey of owners, designers, and builders to determine the best course of action to address the continuing education needs of this industry. By modeling the design/build life cycle into six main phases of project initiation, risk allocation, performance specification, project planning, construction administration, and project closeout, the most critical educational areas are identified. The conclusion from this research is that the areas needing special attention are (1) benefits and cautions of delivery systems; (2) budget and contingencies; (3) owner’s objectives and needs; (4) cost estimating; (5) project timeline; and (6) cost and schedule control. A principal component analysis of the results discovered the following seven groupings of educational topics or “learning modules”: (1) the delivery decision; (2) estimating and scheduling during design; (3) proposal preparation and response; (4) contract fundamentals; (5) construction administration; (6) facilities commissioning; and (7) insurance and financing.     

Integrated Project Delivery Case Study: Guidelines for Drafting Partnering Contract

This paper presents a case study through which a multinational contracting firm aimed to introduce integrated project delivery through strategic partnering into its industry operations. The study reports on a research carried out by the author on behalf of the firm to set out series of principles and guidelines to consider when drafting a standard partnering contract whereby the owner, contractor, suppliers, and manufacturers collaboratively work together under the same terms and conditions. A partnering contract would never, on its own, change the culture and environment of the construction process and thus, strategic partnering should be promoted not only at project specific activities but at all organizational activities. Based on this project, the paper presents a list of ten managerial and contractual issues to promote strategic partnering. The author hopes that the results of this case study would foster legal professionals toward drafting a modern partnering contract, which should help in developing a more effective and efficient contracting environment.     

Total Quality Management for Construction

Traditional approaches to quality control in the construction industry are inadequate and should be replaced with the Total Quality Control concept implemented through the Quality Control (Q.C.) Circle as developed in Japan and currently in wide use throughout the manufacturing industry. The term “total quality control” is defined, and four total quality control principles are set forth on the basis of this definition. The evolution of quality control is traced from the nineteenth century to today to explain the decline in quality standards and to illustrate the need for a new approach. Unique characteristics of the construction industry are described as they relate to the Q.C. circle concept. Implementation of this concept will result in higher quality, lower costs, and increased productivity in the construction industry.     

Empirical Comparison of Design/Build and Design/Bid/Build Project Delivery Methods

This study compares the performance of design/bid/build and design/build to see if one project delivery method is superior in regards to time and cost. Similar military buildings were used to identify two samples of projects delivered with each of the two delivery methods. These projects provide a meaningful comparison because they include buildings of the same typology (i.e., U.S. Navy Bachelor Enlisted Quarters) delivered using similar design models. Project duration, project duration per bed, project time growth, cost growth and cost per bed were statistically compared. Upon completion of the analysis, the hypothesis that design/build projects are superior to design/bid/build projects in regards to time and cost was tested. Design/build projects were proven superior in performance in almost every measure. Other findings, including recommendations to practitioners and researchers, will be provided as well.