Program
Management vs. Design-Bid-Build
The
program management method ensures that the airport sponsor’s
goals are considered primarily throughout the process.
It is important to note that the program manager delivery
method requires construction management on-site
at all times. There is
a significant opportunity to partner between
the owner, program manager, construction manager and design
team. The partnering
relationship allows for the alignment of goals
to ensure
the success of the
project. In the design-bid-build scenario,
there is less partnering with each party working toward their
company goals rather than
the airport sponsor’s objectives.
Cost
Comparison – The costs associated
with utilizing a program management delivery
method
are lower than
the costs of
a traditional
program even though slightly higher professional
service fees are required. In the design-bid-build
model, design
professionals
have
less access to accurate cost information
during the design process which can lead
to a more
costly final
product.
The absence of
a construction manager requires the designer
to have local contractor knowledge and to
define how
the
contractor resolves
disputes
of
all obstacles and constraints to the work
within the bid package.
The
following summarizes the costs associated
with each delivery method.
| |
Program Management |
Design-Bid-Build |
| |
| Owner’s
Representative |
0% |
1/2 - 1% |
| Program Manager Fee |
3-5% |
0% |
| Program Manager General Conditions |
6-9% |
5-7% |
| Architect/Designers |
4-7% |
4-7% |
| General Contractor |
0% |
3-5% |
| |
| Subtotal |
13-21% |
12.5-20% |
| Less pre-planning and other savings |
8% |
0% |
| Total |
5-13% |
12.5-20% |
| |
| Source:
The Construction Industry Institute study RS39-1. The study
indicates that pre-project planning
can save up to 20% of the authorization amount. A conservative
8% has been used for this example. Percentages are based
upon cost of construction. |
Criteria
for Selection of Program Manager
Program
management teams fielded for airports are a blend of design
professionals,
service providers, and peer review professionals.
They should be evaluated based upon their airport experience
as well as their management experience using the following
qualifications:
• Experience
in program management for the type and size of airport program
being considered
• Experience of assigned personnel for type and size
of airport program being considered
• In-depth understanding of airport operations, procedures,
and project financing
• Understanding of FAA guidelines and requirements
• Experience in constructing type of projects in the
program
• Knowledge of market place where program is being
constructed
• Experience with construction of similar size and
type of airport
• Experience managing other professional consultants
• Experience maintaining program schedules
• Add other criteria from qualifications based selection
(QBS) required by specific agency taking possession of the
work |
