Jim explains that its important to understand that procurement laws in some regions may make the use of alternative project delivery methods (APDMs) difficult if the procurement laws require that the contractor award be based on price. He also describes how some jurisdictions are rewriting these laws.
- If we're going to talk about selecting a project delivery method, it's probably a good idea to include a brief discussion on procurement laws, or at least to acknowledge that these laws exist and that they might play a deciding role in the type of delivery method that's selected. Publicly-funded projects are by nature governed by laws that establish and maybe even limit the methods used for procurement. And this might prohibit the use of some of the delivery methods that I've described here. For example, if public procurement laws require overall project prices to be considered as an element of contractor selection, then that pretty much rules out the CM at Risk method.
That goes back to my earlier example where I talked about my days of bidding street improvement projects. The municipalities where we worked were really bound by laws that required them to make an award to the lowest responsible bidder. This really limits the agency to design-bid-build or maybe they could also use design-build and award on a combination of scoring the project proposal and evaluating a proposed lump-sum price. So this is why in some regions, you'll hear about alternative project delivery methods like CM at Risk, or integrated project delivery, being limited to private projects that are not bound by these public procurement laws.
But really, as the industry progresses, we are seeing this change. I'm fortunate to live in a state where the government's embraced alternative project delivery methods and qualifications-based selection of contractors. And our state's taken steps to rewrite the public laws to permit the types of delivery methods that really rely on early contractor involvement. These laws also establish a framework for scoring and selecting a contractor based on qualifications, and I'll review an example of this scoring process a little later in the course.
I feel like as project owners begin to see the value in choosing different types of delivery systems, and as owners and agencies experience success with methods other than just design-bid-build, they're working to change these procurement laws to allow them to select a method that delivers them the best value, not just the lowest price. Let's continue on and talk more about that concept of delivering best value.
- Payment and procurement methods
- The design-bid-build method
- The design-build method
- Construction manager at risk (CMAR)
- Integrated project delivery (IPD)
- Selecting a project delivery method
- Procurement laws
- Delivering the best value to the owner
- Qualifications-based selection
- Changes in the way you are paid