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
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
Join Impiger for their featured webinar: ‘Cloud Computing: A Roadmap to Modern Software Delivery’ on November 10, 2016, at 12:00 pm CST. Very few companies have not experienced some impact to their IT delivery due to the evolution of cloud computing. This webinar is not about deciding whether you should entertain moving some or all of your IT to the cloud, but rather, a detailed look under the hood to help IT professionals understand how cloud adoption has evolved and what trends will impact th...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
We are always online. We access our data, our finances, work, and various services on the Internet. But we live in a congested world of information in which the roads were built two decades ago. The quest for better, faster Internet routing has been around for a decade, but nobody solved this problem. We’ve seen band-aid approaches like CDNs that attack a niche's slice of static content part of the Internet, but that’s it. It does not address the dynamic services-based Internet of today. It does...
Internet of @ThingsExpo, taking place June 6-8, 2017 at the Javits Center in New York City, New York, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo New York Call for Papers is now open.
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Everyone knows that truly innovative companies learn as they go along, pushing boundaries in response to market changes and demands. What's more of a mystery is how to balance innovation on a fresh platform built from scratch with the legacy tech stack, product suite and customers that continue to serve as the business' foundation. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, discussed why and how ReadyTalk diverted from healthy revenue and mor...
"Qosmos has launched L7Viewer, a network traffic analysis tool, so it analyzes all the traffic between the virtual machine and the data center and the virtual machine and the external world," stated Sebastien Synold, Product Line Manager at Qosmos, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"We are a modern development application platform and we have a suite of products that allow you to application release automation, we do version control, and we do application life cycle management," explained Flint Brenton, CEO of CollabNet, in this SYS-CON.tv interview at DevOps at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...