Contract Delivery Method

In this method, the owner hires an architect or engineer to design the project. Once the design is complete, the project is put out for competitive bidding, and the general contractor is selected based on the lowest bid. After awarding the contract, the construction phase begins, with the contractor responsible for executing the project according to the provided design documents. This contract is typically a CCDC-2: Stipulated (lump-sum) Price Contract

In this method, the owner hires a construction manager (CM) early in the project’s development. The CM works collaboratively with the owner and design team during the design phase, providing valuable input on constructability, cost estimating, and scheduling. The CM then manages the construction phase, overseeing subcontractors, coordinating the work, and ensuring the project’s successful completion. This contract is typically a CCDC-5B: Construction Management Contract for Services and Construction.

Design-Build is a streamlined approach where the owner hires a single entity, the design-build contractor, to handle both the design and construction phases. The contractor takes responsibility for the entire project, from concept to completion. This method promotes collaboration, reduces potential conflicts, and simplifies the communication process between the owner and the contractor. This contract is typically a CCDC-14: Design-Build Stipulated Price Contract

A cost plus contract is a type of construction contract where the owner agrees to reimburse the general contractor for the actual costs incurred in completing the project, along with an agreed-upon fee or percentage for the contractor’s overhead and profit. In a cost plus contract, the contractor is paid for the direct costs of labor, materials, equipment, and other project-related expenses.