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Chapter 14
This chapter blends business and legal considerations. Depending on the level
of the student, it may cover already–familiar topics. Nonetheless, by addressing
the business concerns underlying different project delivery methods, as well as
organizational and legal complications associated with each method, we attempt
to give even graduate students new perspectives on a known subject matter.
Note that one project delivery method—competitive bidding—is addressed in
Chapter 15, devoted to public contracts.
Value engineering (Section 14.6) and “design” versus “performance”
specifications (Section 14.7) should not be skipped. Because these topics are
often tossed about without precise understanding, an instructor should direct
attention to them.
Section 14.8 on administrative problems are of particular importance to
students who will be future construction managers and design professionals.
They need to understand the concept of authority, the importance of having clear
lines of specific authority granted on a particular project, and the importance of
clear lines of communication.
Perhaps the most commonly used alternative project delivery method is
design–build (Section 14.14). The practice of “bridging” (see Section 14.14B)
should be mentioned. Here, the owner both wants the benefits of DB yet at the
Answers to Chapter Questions
1.) When prospective contractors cannot be relatively certain of what they will be
expected to perform, or where they are uncertain as to the techniques needed to
accomplish contractual requirements, what type of contract are they likely to
prefer?
2.) From an organizational perspective, when are design specifications used and when
are performance specifications used?
3.) What are the principal advantages of the design–bid–build delivery system?
4.) What are the advantages and disadvantages of phased construction (fast–tracking)?
5.) What can an owner do if that owner commissions a project using the design/build
project delivery method and believes the arrangement does not provide it with an
independent actor looking out for its design interests?
6.) What are the weaknesses of the design–build project delivery method?
7.) What is a teaming agreement and when is it most commonly used?
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prime promises that if awarded the prime contract, it will reward its
“teammate” with an implementing subcontract in return for the often unpaid
support given in making the bid. Teaming agreements have been used when
the federal government has embarked on programs to fulfill procurement
needs, mainly in high–tech defense industry.
8.) What are the three principles underlying the “Toyota Way,” which are the basis for
lean project delivery?
9.) What is a public–private partnership and how does it differ from traditional public
contracts?
10.) What are some of the legal impediments caused by the widespread adoption
of BIM in the construction industry?
