Which project delivery method is best for a project with unknown conditions? I have encountered this question multiple times and each time the answer is a different project delivery method.
Depending on the question any of the following could be a correct answer:
Construction Manager as Constructor (CMc)
Construction Manager as Agent (Advisor)
Integrated Project Delivery (IPD)
Cost Plus Fixed Fee
According to the answer explaination from the BS Risk Management Virtual Workshop [Exercise A]:
Answer:
2. Given the undefined scope of the project, which project delivery methods are the most appropriate?
Cma - Cma is most useful in projects that are complex, have an undefined scope, or tight schedule.
IPD - IPD is best suited for projects where the scope of work is potentially complex or undefined.
Cost Plus Fixed Fee - AHPP p.514 Another variation of design-bid-build method is known as “cost plus fixed fee.” In this approach the contractor is selected at the completion of contract documents, but the scope of construction is unpredictable (due in part to unknown factors such as existing conditions). Under a cost plus fixed fee contract, the contractor is paid actual labor and material costs plus overhead for construction for coordination of trades on the site plus a fee that represents a fixed amount of profit that does not vary according to the total project cost, disconnecting the contractor’s profit from any increase in project costs. Added incentives may be added to the fee if the project finishes early or under the original budget.
As mentioned above, Cost Plus Fixed fee is a variation of Design-Bid-Build. But Procore says that Cost Plus or Cost Plus Fixed Fee is a type of construction contract like Guaranteed Maximum Price, not a delivery method. The the AIA Owner / CMc contract A133-2019 and the conventional Owner / Contractor A102-2017 contracts:
A133-2019 Standard Form of Agreement Between Owner and Construction Manager as Constructor where the basis of payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price
and
A102-2017 Standard Form of Agreement Between Owner and Contractor where the basis of payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price
use a cost plus fixed fee structure as well which further confirms that cost plus fixed fee is not a project delivery method, but a type of construction contract.
But I have seen sample questions where cost plus fixed fee is included with other project delivery methods and is the correct answer!
Anyway, getting back to the point of my question:
Can all of these project delivery methods be appropriate for a project with unknown conditions?