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Delivery Methods

For most of the 20th century, public work and a significant part of private work has been built using the lowest bid or the "lump sum" delivery method based on documents prepared by architects and engineers ("traditional" delivery).

However, since the 1990's, many owners have not been satisfied with the results of the "traditional" delivery[1] and have begun to use methods, that involve the builder early in the design process. This process selects the builder based on best qualifications rather than just a low bid.

 

Spreading Best Value

data source: FMI/CMAA Sixth Annual Survey of Owners
 

Historical and Forecasted Cost Esdcalation Per Annum

Furthermore, over the last 5 years, construction costs have escalated 30%. This is far higher than the consumer price index, requiring the need for early and accurate cost identification in order to prevent a "surprise" on bid day. With costs expected to escalate 8% in 2009, the trend will continue.[2]

In order to prevent this, many owners are utilizing Integrated Project Delivery, a process that assembles the design and construction team early in the design phase. This results in more accurate budgeting and lower costs (10% based on a recent study[3]). Estes Construction utilized Integrated Project Delivery for some time with similar or better results.

For owners who prefer "single source" contracts, Estes Construction offers Design-Build project delivery. Estes is committed to tailoring Project Delivery Solutions that suit the needs of each client. Regardless of the delivery method selected, Estes has a proven track record of providing quality projects on time and within budget. 



[1] FMI/CMAA Sixth Annual Survey of Owners.

[2] "Constructor" (May/June 2008), Simon Squire, p. 97.

[3] "Integrated Project Delivery: A Guide" (2007), American Institute of Architects California.



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