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
Michael Maximilien, better known as max or Dr. Max, is a computer scientist with IBM. At IBM Research Triangle Park, he was a principal engineer for the worldwide industry point-of-sale standard: JavaPOS. At IBM Research, some highlights include pioneering research on semantic Web services, mashups, and cloud computing, and platform-as-a-service. He joined the IBM Cloud Labs in 2014 and works closely with Pivotal Inc., to help make the Cloud Found the best PaaS.
The “Digital Era” is forcing us to engage with new methods to build, operate and maintain applications. This transformation also implies an evolution to more and more intelligent applications to better engage with the customers, while creating significant market differentiators. In both cases, the cloud has become a key enabler to embrace this digital revolution. So, moving to the cloud is no longer the question; the new questions are HOW and WHEN. To make this equation even more complex, most ...
As you move to the cloud, your network should be efficient, secure, and easy to manage. An enterprise adopting a hybrid or public cloud needs systems and tools that provide: Agility: ability to deliver applications and services faster, even in complex hybrid environments Easier manageability: enable reliable connectivity with complete oversight as the data center network evolves Greater efficiency: eliminate wasted effort while reducing errors and optimize asset utilization Security: implemen...
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 C...
Evan Kirstel is an internationally recognized thought leader and social media influencer in IoT (#1 in 2017), Cloud, Data Security (2016), Health Tech (#9 in 2017), Digital Health (#6 in 2016), B2B Marketing (#5 in 2015), AI, Smart Home, Digital (2017), IIoT (#1 in 2017) and Telecom/Wireless/5G. His connections are a "Who's Who" in these technologies, He is in the top 10 most mentioned/re-tweeted by CMOs and CIOs (2016) and have been recently named 5th most influential B2B marketeer in the US. H...
In a world where the internet rules all, where 94% of business buyers conduct online research, and where e-commerce sales are poised to fall between $427 billion and $443 billion by the end of this year, we think it's safe to say that your website is a vital part of your business strategy. Whether you're a B2B company, a local business, or an e-commerce site, digital presence is key to maintain in your drive towards success. Digital Performance will take priority in 2018 for the following reason...
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...
"This week we're really focusing on scalability, asset preservation and how do you back up to the cloud and in the cloud with object storage, which is really a new way of attacking dealing with your file, your blocked data, where you put it and how you access it," stated Jeff Greenwald, Senior Director of Market Development at HGST, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Creating replica copies to tolerate a certain number of failures is easy, but very expensive at cloud-scale. Conventional RAID has lower overhead, but it is limited in the number of failures it can tolerate. And the management is like herding cats (overseeing capacity, rebuilds, migrations, and degraded performance). In his general session at 18th Cloud Expo, Scott Cleland, Senior Director of Product Marketing for the HGST Cloud Infrastructure Business Unit, discussed how a new approach is neces...
What's the role of an IT self-service portal when you get to continuous delivery and Infrastructure as Code? This general session showed how to create the continuous delivery culture and eight accelerators for leading the change. Don Demcsak is a DevOps and Cloud Native Modernization Principal for Dell EMC based out of New Jersey. He is a former, long time, Microsoft Most Valuable Professional, specializing in building and architecting Application Delivery Pipelines for hybrid legacy, and cloud ...
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
"With Digital Experience Monitoring what used to be a simple visit to a web page has exploded into app on phones, data from social media feeds, competitive benchmarking - these are all components that are only available because of some type of digital asset," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, 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.
"I focus on what we are calling CAST Highlight, which is our SaaS application portfolio analysis tool. It is an extremely lightweight tool that can integrate with pretty much any build process right now," explained Andrew Siegmund, Application Migration Specialist for CAST, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"We view the cloud not as a specific technology but as a way of doing business and that way of doing business is transforming the way software, infrastructure and services are being delivered to business," explained Matthew Rosen, CEO and Director at Fusion, in this SYS-CON.tv interview at 18th Cloud Expo (http://www.CloudComputingExpo.com), held June 7-9 at the Javits Center in New York City, NY.