Welcome!

News Feed Item

Construction Project Delivery Systems Vary Widely in Benefits for Owners, Architects & Contractors, According to New McGraw Hill Construction SmartMarket Report

NEW YORK, July 31, 2014 /PRNewswire/ -- New research from McGraw Hill Construction (http://www.construction.com) published in its Project Delivery Systems SmartMarket Report reveals that while owners, architects and contractors in the buildings sector all agree that the choice of a delivery system on a project impacts project cost, schedule and the potential for overall client satisfaction, perspectives on which of the three established delivery systems can best deliver these and other benefits often vary widely by player.

Established delivery systems include design-bid-build systems, in which owners hold a separate contract with the design firm and contractor on a project; design-build systems, in which one entity delivers both design and construction to the owner; and construction management at risk (CM-at-risk) systems, in which the owner contracts with a construction manager during design who works collaboratively with the design team in the final design stages and offers the owner a guaranteed price for the final completion of the project.

Research in the Project Delivery Systems SmartMarket Report indicates that choice of a delivery system can have potentially powerful implications for the ability of the project to be delivered satisfactorily, on schedule and on budget:

  • Client Satisfaction: The highest percentage of owners who are highly satisfied with their projects are also those using the CM-at-risk delivery system (60%). However, architects are nearly evenly split in their opinion of the best delivery system to improve client satisfaction between design-bid-build, design-build and CM-at-risk. On the other hand, the highest percentage of contractors by a wide margin (43%) regards design-build as the best system for improving owner satisfaction. 
  • Cost: The highest percentage of owners reporting projects coming in under budget (33%) are those using a CM-at-risk delivery system. However, the highest percentage of architects (38%) believe design-bid-build is the best delivery system for reducing construction costs, and the highest percentage of contractors (38%) find that design-build reduces costs most effectively.
  • Schedule: There is a consensus among owners, architects and contractors that design-build has the best impact on schedule of the three established delivery systems included in the study, a rare moment of agreement in otherwise highly diverse results.

"In order for the buildings sector to capitalize fully on the benefits available by using specific delivery systems for projects, there needs to be a wider understanding of how the other members of the project team view the use of that system," says Harvey Bernstein, vice president of industry insights and alliances at McGraw Hill Construction. "Architects and contractors definitely need to consider how their clients regard the performance of these delivery systems, but owners also need to factor in how the project team members regard the impact of delivery systems because their approach to a delivery system can impact the performance of projects in terms of cost, schedule, quality and other benefits."

According to the Project Delivery Systems SmartMarket Report, given the widely disparate views on the best delivery systems in the buildings sector, it is not surprising that no one on the three established delivery systems included in the study dominates the buildings sector in terms of use. While the majority of architects (60%) do report that they have engaged most frequently in a design-bid-build project, contractors are more evenly split, with 37% reporting most frequent involvement in design-bid-build projects, 25% in design-build projects and 24% in CM-at-risk projects.

However, most study respondents expect the building sector to reduce its use of design-bid-build and increase the use of other delivery systems:

  • 23% of owners, 42% of architects and 30% of contractors expect to see decreases in the use of design-bid-build;
  • 50% of owners and contractors expect CM-at-risk to increase;
  • 63% of owners and 68% of contractors expect increases in design-build.

The disconnect about the benefits associated with delivery systems also extends to the drivers that will encourage wider use of these systems. Since owners select delivery systems, their perceptions of drivers are critical and need to be better understood by architects and contractors.

  • Owners' top drivers of specific delivery systems: Maximizing the budget drives all three delivery systems, and it is more important than reducing project cost as a driver for the design-bid-build and design-build delivery systems. Improved quality on projects is another top driver for future use of CM-at-risk.
  • Architects' and Contractors' top drivers: Reducing project cost nearly always ranks above maximizing the value of work put in place for the budget as top drivers for design-bid-build and design-build, representing a large disconnect from the owners' opinion. More architects also report reducing construction schedule as a key driver, and more contractors report that concerns about risk/liability are a key driver for CM-at-risk.

The study also examined the drivers and benefits of emerging delivery systems. In particular, the findings demonstrated strong benefits from the use of integrated project delivery (IPD) in the buildings sector. 80% or more of owners that have used IPD report that it increased process efficiency, reduced the risk of litigation, improved construction quality, improved sustainable building performance and reduced construction costs. The greatest obstacles they saw to wider IPD adoption included concerns about team members not performing and contract concerns, factors that may be addressed by wider familiarity with this approach in the industry.

The "Project Delivery Systems: How They Impact Efficiency and Profitability in the Buildings Sector SmartMarket Report" was produced by McGraw Hill Construction in partnership with MMC Contractors, the American Institute of Architects, the Design-Build Institute of America and the Society for Marketing Professional Services, with the support of Bentley Systems.  To download the full report, visit http://www.analyticsstore.construction.com/ProjectDeliverySMR?sourcekey=PRESREL.

About McGraw Hill Construction

McGraw Hill Construction provides essential data, news, insights, and intelligence to better inform construction professionals' decisions and strengthen their market position. McGraw Hill Construction's data, analytics, and media businesses – Dodge, Sweets, Architectural Record, and Engineering News-Record – create opportunities for owners, architects, engineers, contractors, building product manufacturers, and distributors to strengthen their market position, size their markets, prioritize prospects, and target and build relationships that will win more business. McGraw Hill Construction serves more than one million customers through its trends and forecasts, industry news, and leading platform of construction data, benchmarks, and analytics, including Dodge MarketShare™, Dodge BuildShare® and Dodge SpecShare®. Construction data is available for North American and global markets.  To learn more, visit www.construction.com.

Media Contact: Evelyn O'Neill, Marketing Communications, McGraw Hill Construction, +1 212-904-3322, [email protected]

SOURCE McGraw Hill Construction

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
"Outscale was founded in 2010, is based in France, is a strategic partner to Dassault Systémes and has done quite a bit of work with divisions of Dassault," explained Jackie Funk, Digital Marketing exec at Outscale, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We focus on SAP workloads because they are among the most powerful but somewhat challenging workloads out there to take into public cloud," explained Swen Conrad, CEO of Ocean9, Inc., in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"DivvyCloud as a company set out to help customers automate solutions to the most common cloud problems," noted Jeremy Snyder, VP of Business Development at DivvyCloud, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We provide IoT solutions. We provide the most compatible solutions for many applications. Our solutions are industry agnostic and also protocol agnostic," explained Richard Han, Head of Sales and Marketing and Engineering at Systena America, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We are still a relatively small software house and we are focusing on certain industries like FinTech, med tech, energy and utilities. We help our customers with their digital transformation," noted Piotr Stawinski, Founder and CEO of EARP Integration, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"I think DevOps is now a rambunctious teenager – it’s starting to get a mind of its own, wanting to get its own things but it still needs some adult supervision," explained Thomas Hooker, VP of marketing at CollabNet, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We've been engaging with a lot of customers including Panasonic, we've been involved with Cisco and now we're working with the U.S. government - the Department of Homeland Security," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, provided a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services with...
"We were founded in 2003 and the way we were founded was about good backup and good disaster recovery for our clients, and for the last 20 years we've been pretty consistent with that," noted Marc Malafronte, Territory Manager at StorageCraft, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We are an IT services solution provider and we sell software to support those solutions. Our focus and key areas are around security, enterprise monitoring, and continuous delivery optimization," noted John Balsavage, President of A&I Solutions, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We want to show that our solution is far less expensive with a much better total cost of ownership so we announced several key features. One is called geo-distributed erasure coding, another is support for KVM and we introduced a new capability called Multi-Part," explained Tim Desai, Senior Product Marketing Manager at Hitachi Data Systems, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
There is a huge demand for responsive, real-time mobile and web experiences, but current architectural patterns do not easily accommodate applications that respond to events in real time. Common solutions using message queues or HTTP long-polling quickly lead to resiliency, scalability and development velocity challenges. In his session at 21st Cloud Expo, Ryland Degnan, a Senior Software Engineer on the Netflix Edge Platform team, will discuss how by leveraging a reactive stream-based protocol,...
SYS-CON Events announced today that Calligo, an innovative cloud service provider offering mid-sized companies the highest levels of data privacy and security, has been named "Bronze Sponsor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Calligo offers unparalleled application performance guarantees, commercial flexibility and a personalised support service from its globally located cloud plat...