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owner can select the general contractor based on qualifications, rather than low bid. The general contractor becomes primarily responsible for ensuring that the project cost is within budget, but setting a guaranteed price prior to completion of design can mean that the price reflects a higher level of uncertainty. As a result, there can be disagreements later in the project over what was intended in the design at the time the guaranteed maximum price was set. Construction Manager/Owner's Representative: The City can retain a construction management firm to act as the owner's agent. In a consulting capacity, the owner's representative provides advice on construction issues, schedule and cost during the design process, and can bid construction elements of the project during the design process. However, there in no general contractor in the usual sense. The owner's representative manages the bidding process, but the City would have multiple contracts directly with different construction trade contractors. This project delivery method is also known as the "multiple prime contractors" method, reflecting the fact that there are several independent contractors working on a project. Having multiple contracts increases the risk of schedule and budget complications during the project, and increases the management requirements for the owner's representative. This method is most applicable for organizations that do not have in-house project management expertise. Design/Build: The term "design/build" has been used to refer to a variety of projects that include public/private development, lease-to-own financing, and other relationships between an owner and the firm that designs and builds a facility. However, a "design/build" project simply means that the owner contracts with a single firm to both design and build a facility. Prior to awarding a contract, the owner provides design criteria, programming information and functional requirements to potential bidders. Typically, an owner awards a project to a firm or joint venture, based on qualifications and experience of that firm. A guaranteed maximum price is set, and the firm begins design of the facility. There is no "market check" on the value of the project, as the price is set before significant design work is completed. The main advantages of having design and construction within a single firm is potentially shortening the project timeline, and having a fixed price at the outset. However, the owner has limited input into the design process, there are no "checks and balances" between the designer and the construction contractor, and no control over quality or features other than what is included in the initial documents provided at the time of bidding. In a pure design/build project, the focus of the building firm is to preserve profits by designing to the minimum required to meet the contract. Bridging: To address the problem of limited control over the quality of a design/build project, an owner can complete partial design prior to awarding a design/build contract. In this currently evolving method, which has become known as "bridging", the owner hires a design firm to develop the design of a building. An RFP is issued for the project, and a design/build firm is hired to complete construction drawings and construct the facility. This method combines a higher level of quality control for the design of a building with the advantages of a fixed price and potential "fast-tracking" of the project during the final design phase. However, the owner has the added cost of hiring a design firm to provide the initial design development and monitor the design/build firm's performance to that initial design during the life of the project. L:\CMO\2004 Council Agendas\M040428\S040428A. doc