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Pick your delivery model by risk, not by habit

Every contract is a decision about who controls each risk and when you learn the real cost. Write the risk register first, then choose the model.

August 27, 20267 min readBy Operations leadership

Ask an owner why they chose a delivery model and the answer is often a version of "that is how we always do it." It is an understandable answer, and it is the wrong one. A delivery model is not paperwork. It is a decision about who controls each risk, who prices it and when the owner finds out what the project really costs. Choose it on purpose.

Write the risk register before the RFP

Before any contract form enters the conversation, list what could actually hurt the project. A completion date tied to a lease, a season or a grant. A budget ceiling set by a board. A design that is still moving. Existing conditions nobody has opened up. Materials with volatile pricing or long lead times. An owner team that is stretched thin.

For each item, ask two questions. Who can control it best? Who can price it best? The answers point to a delivery model much more reliably than precedent does. From a project controls point of view, they also tell you what your cost report and schedule need to track from day one.

Design-bid-build: a firm price on a finished design

The owner completes the design, then bids it. The builder commits to the scope as drawn.

  • Control. The owner and designer control the design. The builder controls means and methods.
  • Price certainty. Arrives at bid, after the design fee is spent.
  • Where it strains. Gaps in the documents become change orders, and design and construction cannot overlap, so the calendar runs long.

It is a sound choice for familiar scope, complete documents and owners whose procurement rules call for a competitive lump sum. It is a poor choice when the date is tight or the existing conditions are a mystery.

CM at-risk: the builder at the design table

The owner holds separate contracts with the designer and the construction manager. The CM estimates, schedules and reviews constructability during design, then commits to a guaranteed maximum price.

  • Control. The owner keeps a direct line to the designer while gaining builder input early.
  • Price certainty. Builds over design and locks at the GMP, often with early packages released ahead of it.
  • Where it strains. A GMP set on thin documents carries long qualifications and large allowances. That is a price with holes in it.

CM at-risk fits complex buildings, phased work in occupied facilities and owners who want to shape the design closely. The quality of the outcome depends on how seriously the preconstruction phase is run.

Design-build: one contract, one answer

A single entity designs and builds the project against the owner's requirements.

  • Control. The design-builder owns the coordination between design and construction, which removes a whole category of disputes.
  • Price certainty. Early under lump-sum design-build. Later, and better informed, under progressive design-build.
  • Where it strains. Owners who want to direct every detail will find a fixed-price design-build contract confining.

Design-build is strong when speed matters and the requirements can be written as performance. Interchanges, data facilities, residence halls and logistics buildings are natural candidates.

Every contract is a risk register with signatures on it. If you cannot say who owns each risk, the contract will decide for you, usually at the worst time.

Yusuf Balogun, Founder & Chief Executive Officer

Hybrids are normal

Real projects mix models. A healthcare owner may run CM at-risk with design-assist MEP partners. A transportation agency may use progressive design-build with an off-ramp if the price misses the budget. What matters is that the structure matches the risks you wrote down, and that your reporting tracks them. GilbertLanham delivers under every major model. If you are weighing the choice now, we are glad to walk through your risk register with you before any builder is selected.

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