Capital Project
Delivery Methods
October 14, 2025
1 Agenda
1. Project Screening and Delivery Analysis
2. Job Order Contracting (JOC)
3. As-needed Construction Contracts
4. Traditional Design-Bid-Build
5. Construction Management/General Contractor (CM/GC)
6. Design Build (DB)
7. Progressive Design Build (PDB)
2 Project Screening / Delivery Analysis
3 Desired Outcomes
Agency
Objectives
Delivery model
and structure
&
Procurement
methodology
Project
Characteristics
Risk Reduction
Affordability / Fit to
Budget
Certainty of Delivery
Economic
Development
System Benefits
Greater Capacity
Innovation
Technical
Engineering
Contracts Awarded by Delivery Method
4 City
Distribution
Division
Headquarters
Treasure
Island
Wastewater
Plant
Southeast
Maintenance
Buildings
Southeast
Biogas
Job Order Contracting (JOC) and
As-needed Construction Contracts
Job Order Contracts
• Indefinite quantity contract with a predefined set of bid items that are assigned on a periodic or task order basis. For the performance of maintenance, repair, and minor construction projects. • Task Orders limited to $1,000,000.
• Up to $5,000,000 and may be modified up to 150% of the original contract amount; no JOC may exceed $7,500,000. Intentional strategy to amend and replace contracts to ensure no gap in services. • May have a term up to five years, including all modifications; all Task Orders must be issued within four years.
As-Needed Construction
• General as-needed bid with unit costs, a term up to a maximum of five years (all task orders must be issued within four years), awarded on a not-to-exceed amount that can be modified up to 150% of the original contract amount. Intentional strategy to amend and replace contracts. • Master as-needed with pre-qualified contractors that join a pool by application, tasks bid among the pool, maximum contract term of five years, maximum contract amount 150% of the original contract not-to- exceed amount. 5
Design-Bid-Build
• Traditional, linear approach to public work
• Requires 100% completion of drawings prior to competitive bidding • Selection - Design professionals typically ‘in-house’ or selected through a competitive process not based on price. Construction contractor selected on the basis of qualifications and price (award to the responsible bidder submitting the lowest responsive bid) that includes all subcontractors. • Cost - Competition among qualified construction contractors can result in a cost-efficient project.
• Concerns that low bid = low quality can be addressed through pre- qualification of construction contractors or qualifications made part of the invitation for bids.
• Schedule – Estimated by owner but subject to contractor and field conditions
• Risk - Susceptible to disputes over design errors and omissions, unforeseen conditions, delay; can be mitigated by strong planning, design, project management. Risk held by owner and transferred to contractor. 6 Public Entity
Owner
Design
Professional
Separate agreements
Construction
Contractor
Construction Management/General
Contractor (CM/GC)
• Collaborative (integrated) project delivery approach to public work • Selection - Design professionals typically ‘in-house’ or selected through a competitive process (qualifications based). CM/GC selected in parallel based on:
• Prequalification and cost
• Best Value: (a) fees for pre-construction services; (b) fees for construction phase services; (c) qualitative criteria
• Team Best Value: CM/GC and Core Trade Subcontractors • Pre-construction input from CM/GC for early collaboration, review, planning for project delivery
• CM/GC bids out subcontractor trade packages as project progresses, opportunity to ‘right-size’ packages, allows for self-performance • Cost - Increased transparency and cost control, regular updates and value engineering
• Schedule - Early contractor involvement informs the design, leading to more cost-effective solutions to meet schedule
• Risk - Trade package costs subject to market factors at bid time; reduces but does not eliminate risk of claims due to quality of plans and specs 7 Public Entity
Owner
Construction
Contractor
Design
Professional
Separate agreements
Design Build
• Collaborative (integrated) project delivery approach to public work • Owner develops ‘bridging documents’
• Selection - through a qualifications-based competitive process by prequalification and then either:
• Competitive (low) bid: on a criteria package
• Fixed Budget Limit: value-based (scope and alternates) competitive process on a pre-set price
• Best Value: qualitative criteria resulting in best value to the SFPUC • Cost - Single point of responsibility, transfer of design-related risk to Contractor accounted for in pricing
• Schedule - Faster project delivery, allowing construction to begin before the design is complete
• Risk – Collaboration reduces risk of claims, 'Hard bid or Lump Sum' feature still leads to disagreements/claims over quality and cost 8 One agreement
Public Entity
Owner
Construction
Contractor
Design
Professional
Progressive Design Build
• Owner procurement documents describe project performance requirements - likely little or no design
• Selection - Qualifications-Based, with some “price” aspects • Phase 1 Pre-Construction Services – planning, design and project approval • Phase 2 Construction Services – construction, startup, testing & commissioning, and closeout
• Design-Builder bids out subcontractor trade packages as project progresses, allows for self-performance
• Off-ramp if parties fail to agree on Phase 2 pricing or scope • Schedule - Accelerated delivery potential, can be in parallel with environmental
• Cost - Flexibility to design to budget, opportunity to establish a guaranteed maximum price (GMP)
• Risk – Least certainty of price/schedule at award of contract, provides earliest contractor involvement for a ‘real-time’ cost and schedule approach to adjust scope, collaborative and shared risk approach, demands high trust 9 One agreement
Public Entity
Owner
Construction
Contractor
Design
Professional
Project Delivery Approach
10 Earlier contractor involvement
DBB
CM/GC
DB
PDB
CONSTRUCTION
CONSTRUCTION
CONSTRUCTION
CONSTRUCTIONPLANNING DESIGN
PRECON
PRECON
PLANNING DESIGN
PLANNING DESIGN
PLANNING DESIGN $
$
$
$
Using the right tools in the toolbox
11 Construction Manager/General Contractor (CM/GC)
Design-Build (DB)
Progressive Design-Build (PDB)
City
Distribution
Division
Headquarters
at 2000 Marin
SEP
Biosolids
Digester
Facilities
Project
SEP
Headworks
Project
Southeast
Community
Center at 1550
Evans
New Treasure
Island
Wastewater
Treatment Plant
Warnerville
Substation
Rehabilitation
O'Shaughnessy
Dam Outlet
Works
Bay Corridor
Transmission
and Distribution
SEP Facility-
wide Distributed
Control System
Upgrade
Southeast Plant
Mainstream
Nutrient
Reduction
Wastewater
Treatment
Facilities Security
Enhancements
Southeast
Secondary
Clarifiers Rehab
Southeast Plant
Biogas
Utilization
Project
525 Golden
Gate On-Site
Potable Water
System
Moccasin
Dam and
Reservoir
Long Term
Improvement
Southeast
Plant
Maintenance
Buildings