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Construction Project Delivery Methods

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Construction Manager at Risk (CMAR)

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A construction manager is engaged by the owner to collaborate with the design team and is committed to deliver the project within a Guaranteed Maximum Price (GMP).

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Construction Management Multi-Prime (CMMP)

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A delivery method where the construction manager coordinates the work of multiple prime contractors who are contracted to the owner.

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Design-Bid-Build (DBB)

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Traditional method, with three distinct phases: design, bid, and build. Often entails longer project times and clear contractual roles.

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Public-Private Partnership (P3 or PPP)

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A contractual agreement between a public agency and a private sector entity, allowing for greater private sector participation in the delivery and financing of public infrastructure projects.

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Self-Perform

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When a general contractor performs a significant portion of the construction work with its own workforce rather than subcontracting it.

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Design-Build (DB)

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Streamlines project delivery through a single contract between the owner and the design-build team. Can reduce project timeline and improve collaboration.

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Multi-Prime Contracting

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Involves the owner contracting with multiple prime contractors to perform individual tasks or phases of the construction project.

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Owner-Build

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An arrangement in which the property owner acts as the general contractor, taking direct responsibility for managing and executing the construction work.

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Construction Management as Constructor (CMc)

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The construction manager not only advises the owner but also constructs the project. This can be performed under a single GMP or a cost-plus-fee contract.

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Integrated Project Delivery (IPD)

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Integrates people, systems, business structures and practices into a process that collaboratively harnesses the talents and insights of all participants to reduce waste and optimize efficiency.

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Lease-Leaseback

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An arrangement where the owner leases the site to the builder for the duration of construction. Upon completion, the builder leases the facility back to the owner.

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Joint Venture

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A commercial arrangement between two or more parties that invests their resources in completing a project, often used when the scope of the project is beyond the capacity of one party.

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Bridging

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A hybrid of Design-Bid-Build and Design-Build, where the owner contracts with a design consultant to develop partial project documents, then selects a contractor to complete the design and construct the project.

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Turnkey Project

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A project where the developer is responsible for the entire completion of the project to a state where it is ready for operation, at which point it is handed over to the owner.

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Fixed-Price Contract

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A type of contract where the payment does not depend on the amount of resources or time expended but is set as a total fixed price for the contract's full performance.

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Partnering

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A management practice where the owner and service providers openly share their objectives and work cooperatively through a structured management system.

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Time & Material Contract (T&M)

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In this flexible pricing model, contractors are paid for the actual cost of direct labor at specified hourly rates, materials, and equipment, plus an added amount for contractor's mark-up.

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Cost-Plus Contract

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A contract in which the contractor is reimbursed for allowable or otherwise defined costs, plus a percentage of these costs or a fixed fee.

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Program Management

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A method where a program manager oversees a series of related projects, ensuring they align with the strategic goals of the owner and are executed cohesively.

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Construction Management as Agent (CMA)

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The owner hires a construction manager as a consultant to oversee project construction while separate contracts are made with designers and builders.

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