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ATTACHMENT D Construction Methods Summary There are a number of ways that capital construction projects can be managed to deliver projects to a public owner. On a number of occasions, Council has expressed interest in how different project delivery methods might be used to improve the City's experience in construction of major public facilities. A description of these alternate project delivery methods, and their strengths and weaknesses from the owner's perspective, is provided below. The City's experience with using some of those methods follows the descriptions. CONSTRUCTION METHODS Design/Bid/Build: The typical project management method used by the City of Eugene is the traditional approach that has three independent project entities - the owner, the design consultant and the construction general contractor. The key aspects of this method are clear lines of accountability for each entity. The design of a facility is completed prior to bidding. While having complete plans decreases uncertainty for the construction contractor about what will be required for construction of the project, this also means that the overall timeline for the project is extended as there is no overlap between the design and construction phases. Public competition for the construction contract helps ensure that the owner obtains the maximum value for the lowest cost. Project cost is determined when the bid for construction is complete, although later project changes may increase final project cost. However, the requirement that the owner use the "low bid" contractor creates the potential pressure on the contractor to build with limited quality control to preserve profits. Partnering: The goal of partnering on a project is to increase the collaboration between the owner, the design firm and the general contractor. Prior to the start of construction, the three parties meet to form a commitment that the primary goal of the project is to produce a quality project on time and on budget. At the same time, agreements on open communications are made, and a system put in place to address project questions and issues prior to initiating change orders or formal contract dispute resolution procedures. The intent of this process is to maintain the most positive working relationships and reduce the overall cost and time impact of construction project administration, while retaining the accountability of the each of the parties. In cooperation with WBGS Architects and Planners, and the John Hyland Construction, Inc., this approach was used during the Library project with very positive results. Construction Manager/General Contractor: This method, also called an "At-Risk" construction manager, differs from the usual design/bid/build approach by involving the general contractor during the design process. The general contractor also negotiates a guaranteed maximum price for the project with the owner at some point in the design process. The advantage of involving the general contractor during design is that the contractor will understand the design requirements and is able to identify alternate construction methods that will reduce overall project cost while maintaining quality. Also, construction on some elements of the project can begin prior to completion of design, shortening the overall project timeline. The L:\CMO\2004 Council Agendas\M040428\S040428A. doc