Public Owners Seek Alternatives to Design/Bid/Build

Many public owners are turning to alternative delivery methods for their construction projects, with a goal of reducing costs, says a recent survey. Fifty-seven (57) percent of survey respondents noted this as their primary reason for seeking alternatives to design/bid/build. The 2005 PinnacleOne Pulse of U.S. Public Construction survey, which polled 167 public owners involved in construction projects throughout the United States, also revealed that many owners are motivated by the need to shorten the project schedule (38 percent of respondents noted this as their primary reason).

In response to the data, President of Phoenix-based PinnacleOne Chuck Dahill cites increased prices in project bidding (on average 13 percent) and the need to reallocate risk as the reasons for interest in alternative delivery methods. “However, risk is an inherent component of the construction process and can never be completely eliminated, regardless of the delivery method chosen. Therefore, it is essential that these owners utilize agency construction management (CM advisor) to manage the risk they assume; and to avoid and mitigate claims on projects using these alternative methods,” he says.

According to a release issued in late September, additional findings include:

• The majority of owners surveyed view alternative delivery methods as an effective method to reduce their risk on construction projects.
• Design/build was the most popular alternative delivery method noted; thirty-seven (37) percent of public owners are either currently using or plan to use this method on projects in the coming year.
• Thirty (30) percent of respondents either currently use or plan to use job/task order contracting on projects in the next year.
• Twenty-five (25) percent of public owners reported using or plans to use construction management at risk on projects in the next year.

To review the complete survey findings, visit (www.pinnacleone.com).