Contract Performance and
Delivery Methods
January 9, 2024
1 Delivery Methods available under Chapter 6
2 • Design-Bid-Build (Section 6.20)
• Design-Build (Section 6.61)
• Job Order Contracts (Section 6.62)
• As-Needed Construction (Section 6.64)
• Construction Manager/General Contractor (CM/GC) (Section 6.68) • Best Value Procurement (Section 6.74)
40% of contracts within 10% duration
3 Contracts with a start date after 01/01/18 and a final completion date prior to 09/20/23 * As-Needed Construction and Job Order Contracts are typically increased intentionally # % of # $ % of $ # % of # $ % of $
As-Needed Construction 13 $87,429,059 6 46.2% $37,489,589 42.9% 7 53.8% $49,939,470 57.1% De sign-Bid-Build 68 $350,713,215 28 41.2% $133,162,695 38.0% 40 58.8% $217,550,520 62.0% De sign-Build 3 $113,279,029 0.0% 0.0% 3 100.0% $113,279,029 100.0% Construction
Manager/General Contractor 1 $71,181,251 0.0% 0.0% 1 100.0% $71,181,251 100.0% Job Order Contract 4 $10,000,000 2 50.0% $6,000,000 60.0% 2 50.0% $4,000,000 40.0% 89 $632,602,554 36 40.4% $176,652,284 27.9% 53 59.6% $455,950,270 72.1% Contract Duration
Category # of Contracts Total Original
Awarded Amount
Contracts within 10% Contracts >10%
4 * As-Needed Construction and Job Order Contracts are typically increased intentionally
67% of contracts within 10% budget
5 Contracts with a start date after 01/01/18 and a final completion date prior to 09/20/23 * As-Needed Construction and Job Order Contracts are typically increased intentionally # % of # $ % of $ # % of # $ % of $
As-Needed Construction 13 $87,429,059 8 61.5% $64,453,391 73.7% 5 38.5% $22,975,668 26.3% De sign-Bid-Build 68 $350,713,215 48 70.6% $210,816,454 60.1% 20 29.4% $139,896,761 39.9% De sign-Build 3 $113,279,029 3 100.0% $113,279,029 100.0% 0.0% 0.0% Construction
Manager/General Contractor 1 $71,181,251 0.0% 0.0% 1 100.0% $71,181,251 100.0% Job Order Contract 4 $10,000,000 1 25.0% $1,000,000 10.0% 3 75.0% $9,000,000 90.0% 89 $632,602,554 60 67.4% $389,548,874 61.6% 29 32.6% $243,053,680 38.4% Contract Amount
Category # of Contracts Total Original
Awarded Amount
Contracts within 10% Contracts >10%
6 * As-Needed Construction and Job Order Contracts are typically increased intentionally
Industry standard?
7 "In three years studied, only 31% of all
projects came within 10% of their budget.
Just 25% of projects came within 10% of
their original deadlines
over that same time
period."
KPMG Global Construction Survey 2015
McKinsey&Company
https://www.propelleraero.com/10-construction-project-cost-overrun-statistics-you-need-to-hear/ https://kpmg.com/xx/en/home/insights/2023/05/2023-global-construction-survey.html "The vast majority of megaprojects — those
with a value of at least $1 billion — did not meet
their budget or deadline…. we have more than
16,000 projects in our database… About 8.5
percent of projects finish on time and on
budget…."
Bent
Flyvbjerg, Oxford University, Washington Post
https://www.washingtonpost.com/transportation/2023/04/28/infrastructure-projects-time-budget/ "The vast majority of construction projects
completed in twenty countries over the
course of a 70-year period—85%, to be
exact!—experienced cost overrun. The
overall average overrun was 28%.
propeller
https://www.propelleraero.com/10-construction-project-cost-overrun-statistics-you-need-to- hear/#:~:text=1%3A%20Nine%20out%20of%20ten,overall%20average%20overrun%20was%20 28%25
.
“…nine out of ten projects with a value
of over $1bn go over budget or over
deadline around the world”
Institution of Civil Engineers, UK
https://www.ice.org.uk/media/vmhdu4jc/ice-report-reducing-the-gap-between-cost-estimates- and-outturns-for-major-infrastructure-projects-and-programmes.pdf Bent Flyvbjerg (2014) What you should know about megaprojects, and why: An Overview Diversifying Delivery Methods
8 89 contracts completed 162 contracts completed and ongoing Using the right tools in the toolbox
9 Construction Manager/General Contractor (CM/GC)
Design-Build
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