Project Delivery Methods

There are three common delivery methods in providing construction services. They are Design-Bid-Build, Design Build and Construction Management at Risk. Olvera Company is experienced in all delivery methods. Each method has its place and purpose for the specific conditions that will dictate which method will serve best for the client and project. The conditions that drive this are schedule, market conditions, cost, risk, and control of contractor selection. Below are a list of these methods and a brief description that defines each method and the process involved.

Construction Management at Risk

Construction Management at Risk involves the construction manager taking on the risk and full responsibility for managing and delivering the project within a Guaranteed Maximum Price (GMP). While the architect is hired under a separate contract, Olvera Company oversees the management and building technology issues. Such management services include input on potential schedule and cost risk related to design and constructability decisions, scheduling, cost control, coordination of construction contract negotiations and awards, timely purchasing of critical materials and long-lead-time items, and coordination of construction activities.

In this delivery method, Olvera Company contracts with all trade contractors to perform the actual construction. These entities are contractually bound and accountable to Olvera Company, as the construction manager. When Olvera Company provides Construction Management services, our primary responsibility is to ensure that our clients receive a final product constructed on time and within budget and that the final construction fully supports the stated needs and objectives of the owner.

Benefits and characteristics of Construction Management:

• Other than the architect-designer, the owner’s only contact, and contract is with Olvera Company
• The ability to overlap design and build (keeps project on fast track)
• Olvera Company provides Preconstruction services – including constructability review and bid management
• Clear quality standards and deliverables provided in the contract with Olvera Company

Design-Bid-Build

Olvera Company recognizes that the Design-Bid-Build method is still preferred by many owners, particularly in the public sector. The Design-Bid-Build approach is best when the Owner stays actively involved in the design process, requires a fixed cost before commencement of construction, and has sufficient time to permit the design to be fully completed before construction bids are obtained. In addition, this method usually involves three roles in the project delivery process—owner, architect, and the builder—in traditionally separate contracts. Design-bid-build, typically involves competitively bid, lump sum construction contracts that are based on complete and prescriptive contract documents prepared by architects and engineers. These documents generally include drawings, specifications, and supporting information. Our goal is to deliver a project with no contractor-driven change orders, and we maintain budgets by running efficient and organized job-sites.

Benefits and characteristics of Design-Bid-Build:

• Three primary players—owner, designer, builder
• Final contractor selection based on lowest responsible bid or total contract price
• The phases of work are usually conducted in linear sequence - design, bid, build
• Well-established and broadly documented roles
• Complete specifications that produce clear quality standards
• Configuration and details of finished product agreed to by all parties before construction begins

Design-Build

Design-Build construction can provide significant cost and time savings for owners by capitalizing on the interrelationships of design and construction. Olvera Company, Inc. has a great record of completing design-build projects with an integrated delivery approach. Instead of the owner contracting separately with the architect and the contractor, this integrated delivery method typically ties the architect contractually to the contractor. The owner now enters into a Design-Build contract with the contractor and only needs deal with Olvera Company, rather than managing each one separately.

In this delivery method, Olvera Company develops and manages the pre- and post-construction schedules, all contractor / vendor pre-qualifications, material and labor market conditions, budget and final cost verification, shop drawing and submittal review, procurement tracking and contract management.

Benefits and characteristics of Design-Build:

• One contract—owner and Olvera Company
• Continuous execution of design and construction
• Overlapping phases—design and build (fast track)
• Some construction-related decisions after the start of the project
• Flexibility to use either cost or solution as the basis for selecting Olvera Company
• Subcontractor expertise can be obtained in design process