The construction industry is undergoing a significant transformation in project delivery methods as contractors and industry experts seek ways to streamline processes, enhance collaboration, and improve project outcomes. During a recent virtual Builder Breakfast panel, professionals discussed various alternative delivery, procurement, and finance methods and their applications in both the public and private sectors. Traditional design-bid-build methods still prevail, but many contractors are now turning to more innovative approaches to meet evolving project demands. These alternatives include Construction Manager/General Contractor (CMGC) and Integrated Project Delivery (IPD), which focus on facilitating project planning and budgeting and aligning all stakeholders with project goals through shared incentives.
In Oregon, CMGC remains a popular choice for many projects, while progressive design-build methods are gaining traction in Washington. The preference for these methods is often influenced by factors such as the level of control owners want over design and the desired degree of collaboration. However, the implementation of alternative delivery methods in public work faces challenges due to state laws that require extensive justification for deviating from traditional methods. To navigate these constraints, some entities opt for “IPD light,” a more informal version of IPD that retains the collaborative essence while adhering to legal frameworks.
Collaboration and alignment among all project stakeholders emerged as a recurring theme throughout the panel discussion. The success of a project, according to George Seaman from the Port of Portland, relies more on relational dynamics than contractual arrangements. The use of joint ventures (JV) is also becoming increasingly common, with multiple construction companies pooling their resources and expertise on a specific project. Joint ventures offer advantages in supporting local or smaller firms and building partnerships with disadvantaged contractors. However, adjustments may be necessary in contract setups to ensure that parent companies remain responsible for delivering the project in case the venture folds.
Overall, the industry is shifting toward alternative delivery methods driven by the need for improved collaboration, increased flexibility, and alignment with broader project objectives. While public agencies often face regulatory constraints, private sector clients are more comfortable with tried-and-tested CMGC methods. However, as awareness of the benefits of alternative methods grows, further changes in the industry are anticipated. The next Builder Breakfast event will delve into building material, technologies, and techniques, further exploring these advancements in the construction sector.
