Overview

Today, alternative project delivery is more the norm than is traditional design-bid-build. Owners and governmental agencies are looking for ways in which their projects can be delivered quicker, cheaper and faster. Traditional project delivery includes a team of design professionals who contract with a Client. The Client retains a General Contractor to construct the project and retains the design professional to observe the construction for compliance with the construction documents they prepared. This system is being challenged by a more dynamic process. Alternative project delivery and its many variants.

Alternative project delivery can be confusing to the traditionalist,  because it takes on a variety of non traditional contractual relationships, including:

• Design/Build: in commercial D/B, the developer or client retains an A/E firm to provide design services with or without construction observation or management.  When competitions are involved, (two or three firms usually compete) the unsuccessful participants may receive a stipend or monetary reward.

• Design/Build: with the US government format, an agency provides criteria in the form of drawings and specifications. These data form the basis for a competitive D/B submittal. Usually, there is no restriction on the number of participants. The General Contractor is usually the Prime and the engineer is a subcontractor. Competitions usually do not include a stipend for the unsuccessful participants. A few government agencies do pay stipends for special or high visibility public projects.

• Design/Build/Bridging: a format where the design and aesthetics are confirmed and provided by the client or agency.  A second team, the D/B team, completes the construction documents and becomes the A/E of record. The original designs are developed by the  client or agency with or without the services of a  private A/E.

• Design/Build/CM: this method can use any of the above to manage the construction phase. An independent Construction Manager is retained to provide control over the construction process of a design created by another firm. The CM services may include value engineering.

• Negotiated Bid Design/Build: in this process, the developer or client retains a firm to provide design and to oversee the construction. A general contractor is selected by the developer or client with the aid of the design professional. Frequently, this method uses fast track construction for project delivery.

There are other variations on the above themes, but the common thread amongst them is that the engineer will perform non traditional roles. Those firms and individuals who have practiced within traditional project delivery may find that they are exposed to new risks when involved in alternative project delivery. An engineer may find himself in one of many leadership or subcontractor roles within alternative project delivery, including:

• Prime engineer for a construction contractor.

• Prime engineer for a client.

• A subcontractor (engineer) to a general contractor.

• An engineer for a prime engineering firm who is a subcontractor to a general contractor.

• An engineer for a prime engineering firm ( or architect) who is the prime contractor.

• An engineer who is a subcontractor to a general contractor’s subcontractor.

The above list shows the most common relationships between engineers and others when involved with alternative project delivery. In addition to these non traditional roles, is timing. Very frequently, an engineer is asked to make a commitment based on an oral invitation to join as a team member without knowing who the other team members are, their relationships, responsibilities or liabilities. To make things more frustrating, general contractors and their construction subcontractors do not use written contracts during the bidding phase for most projects. Their standard clauses are usually on the back side of their invoices, or understood as a standard of practice. The mantra of the contractor is, "if we win the competition, we'll work out the details". 

Engineers are reluctant to make these commitments without a written agreement. In addition, standard forms of agreements are not common with alternative project delivery, leaving much of the project management to oral instruction. Consequently, when faced with risk management concerns there is little experience or standards that the engineer can rely upon.

With this short introduction, we hope to set the stage for investigating risk management techniques and considerations within alternative project delivery for engineers. Our panel members represent small and large firms, firms with global experience and firms who are interested in providing services within the alternative project delivery system.

The panel includes the following FIDIC Risk Management Committee members:

• Paul J. Taylor, Esquire with Berrymans Lace a multi-discipline law firm in London, England. Paul is the current Chair of the RMC and his role in the presentation will be that of moderator. He will provide insight to attendees regarding trends and observations from legal viewpoint.
• Joseph P. Paoluccio AIA FACEC, is a practicing architect/engineer with PWNA, a multi-discipline firm in San Diego, California, USA. Mr. Paoluccio’s firm provides design and planning services using traditional and alternative project delivery for commercial and governmental agencies.
• Richard D. Crowell, Senior Vice President, RSA/DPIC Companies, Inc., Dick is the author of the "Contract Guide", and several other highly regarded publications dealing with insurance and risk management. He will report of trends and observations of A/E exposure to problems within the various alternative project delivery systems within the United States.
• Dr. Toshio Kurashige PE, Nihon Suido Consultants Company, Ltd.  Dr.Toshio  Kurashige, is a river engineering consultant with Nihon Suido Consultants Co.  Ltd., water resources and environmental engineering firm in Japan.  He is  involved in a wide range of risk management projects on flood prevention and environmental protection for governmental agencies.
• Peter O. Miller will bring us up to date on what is happening in Australia.
• Peter C. Smith  will bring us up to date on what is happening in New Zealand.
• Steve Bamforth, Griffiths & Armour will provide a perspective on risk with respect to changing project delivery in England.
• E. S. Von Roretz, Glenvall Griffiths and Armour, South Africa,  will provide a perspective on risk with respect to changing project delivery in South Africa.