Procurement Methods

Like most things, there are many different methods to buy construction. Each has its own advantage and limitations. We would be happy to discuss all the available options with you, but to summarize our experiences in project delivery, here are the 3 basis approaches:

Typically a lump sum contract which evolves from obtaining pricing from several different sources.

Key features and limitations:

  • Lump sum cost is set prior to the start of construction.
  • Design and permitting is completed prior to the selection of a builder.
  • You need to hire an independent cost consultant or take the "Wait and See" approach on project costs.
  • There is very little input from the builder during project planning.
  • Provides the longest overall schedule as the design and construction phases are independent.
  • There is a higher risk for contract disputes and procurement based on the lowest quote, so any discrepancies in the documents will impact cost and/or schedule.

Typical selection of a construction manager based on lump sum fee for their services or percentage of overall budget.

Key features and limitations:

  • The construction manager will work with the design team to help plan the project. Early planning expertise is provided on schedule, budget, and constructability.
  • More transparency is provided on the allocation of project costs.
  • A fast tracked schedule is possible with the phased tendering of trades.
  • Budget and schedule are known earlier in the planning process.
  • Construction work can start without design being 100% complete.
  • Allows for a more collaborative and modern approach to project planning.

Allows for a single source of responsibility and a Turnkey approach.

  • The project can be lump sum or have the fast tracked abilities of Construction Management.
  • The builder assembles the design team and manages both the design and construction phases.
  • Provides a streamlined approach for all project planning and communications.
  • Requires the Client to have enough comfort and knowledge to hire the design-builder or have the option to use a consultant to perform this.

Client feedback coupled with our own experiences has revealed the life cycle costs on our design-build and construction management projects are lower than traditional project delivery methods. By using our team's collaborative approach, we review capital cost, operating and maintenance cost plus the life expectancy of products to provide you with the best value and fit for your project.

The sequential design and tendering of work packages, staged permitting and commencement of construction activities all move forward while design is being completed. These methods of the Design-Build or Construction Management processes can reduce the overall project timeline between concept to operation.