Owner's Tool for Project Delivery and Contract Strategy Selection User's Guide, Second Edition
The procedure for selecting an integrated project delivery and contract strategy (PDCS) for capital projects is used on a project-by-project basis. The central component of the procedure is a decision support tool, which consists of Excel spreadsheets for selecting integrated project delivery and contract strategy options. Compensation approach charts also are provided for reviewing and selecting the compensation approach for each owner-contractor relationship for any given project.
The purpose of the procedure is to facilitate maximum achievement of the owner’s project objectives. Therefore, for a project under consideration, the selection criteria should be based on the owner’s objectives for that project. Other factors that may influence successful project execution also should be considered in the selection process. The integrated project delivery and contract strategy alternatives are presented in Appendix 1. Industry-wide selection factors are presented in Appendix 2.
Each of the 12 integrated project delivery and contract strategy alternatives (PDCS alternatives) includes default compensation approaches, as shown in Appendix 1. Once an integrated project delivery and contract strategy is selected using the Excel spreadsheet, default compensation approaches are obtained for all the contractual relationships defined in that PDCS alternative. The user may choose to use the default compensation approaches or select more suitable approaches using the compensation approach charts.
The procedure consists of a three-part process. First, aggregate scores for all the PDCS alternatives are obtained from the PDCS spreadsheet tool, based on selection factors derived from project objectives and project conditions. The three PDCS alternatives with the highest aggregate scores are selected. Second, the default compensation approaches that are associated with each of the three PDCS alternatives are reviewed for suitability, using the compensation approach charts. The default compensation approach would be replaced if an approach that is more suitable to the project under consideration is obtained from the compensation approach charts. The third part involves the final decision-making step. In this step, special factors that are peculiar to the owner, if any, are considered and one of the three PDCS alternatives is selected for the subject project.
A flowchart illustrating the procedure for selecting integrated project delivery and contract strategy for a capital project is presented in Figure 1.1. Process steps with descriptions on how to use the Excel Workbook are presented in Section 2.0.
