Level: Advanced
TCM Section(s)
4.1. Project Implementation
7.1. Project Scope and Execution Strategy Development
Venue: 2024 AACE International Conference & Expo
Abstract: The project delivery method (PDM) selection decision in transportation projects involves the agency comparing authorized PDMs against project risks to identify the one perceived to permit the owner to best manage risk. A recent Federal Highway Administration (FHWA) study found that state departments of transportation (DOT) rely on a qualitative approach based on the perceived risks inherent to each PDM. This paper reports the results of case study interviews from 11 DOTs, involving rating 19 project outcomes and the value of early contractor involvement portrayed by 15 typical preconstruction services touted as risk management methods in the literature. The analysis was conducted using two approaches: classic Likert scale ratings (risk perceptions) and factorial pairwise comparison (risk mitigation perceptions). The paper finds that the outcome reached by each approach was different. The Likert scale rating indicated that design-build (DB) was the preferred PDM; whereas, the pairwise comparison found construction manager/general contractor (CMGC) to be the preferred method. The paper infers that the difference relates to the need for the agency to surrender control of the design details in DB. When a head-to-head comparison is made on the 34 variables CMGC is perceived to provide enhanced scope certainty as well as cost and schedule certainty when the DOT controls the design.
TCM Section(s)
4.1. Project Implementation
7.1. Project Scope and Execution Strategy Development
Venue: 2024 AACE International Conference & Expo
Abstract: The project delivery method (PDM) selection decision in transportation projects involves the agency comparing authorized PDMs against project risks to identify the one perceived to permit the owner to best manage risk. A recent Federal Highway Administration (FHWA) study found that state departments of transportation (DOT) rely on a qualitative approach based on the perceived risks inherent to each PDM. This paper reports the results of case study interviews from 11 DOTs, involving rating 19 project outcomes and the value of early contractor involvement portrayed by 15 typical preconstruction services touted as risk management methods in the literature. The analysis was conducted using two approaches: classic Likert scale ratings (risk perceptions) and factorial pairwise comparison (risk mitigation perceptions). The paper finds that the outcome reached by each approach was different. The Likert scale rating indicated that design-build (DB) was the preferred PDM; whereas, the pairwise comparison found construction manager/general contractor (CMGC) to be the preferred method. The paper infers that the difference relates to the need for the agency to surrender control of the design details in DB. When a head-to-head comparison is made on the 34 variables CMGC is perceived to provide enhanced scope certainty as well as cost and schedule certainty when the DOT controls the design.