Alternative Project Delivery - Texas Water Development Board

Section 2
DESCRIPTION OF PROJECT DELIVERY METHODS
Introduction
Project delivery methods as currently practiced in the water and wastewater industry
tend to fall into three groups:
• Traditional Design-Bid-Build (“DBB”) and Design-Build (“DB”);
• Engineer-At-Risk (“EAR”) and Engineer-Procure-Construct (“EPC”); and,
• Design-Build-Operate (“DBO”) and Build-Own-Operate-Transfer (“BOOT”).
These groups are classified based upon the number of discrete contractual or
informally defined relationships between the Owner, Design Engineer, Construction
Contractor and the Operator. In the traditional DBB there are generally three
contracts or relationships. In DB there are generally two contracts. DBO and BOOT
generally involve a single contract. A glossary is included in the Appendix defining
the terms in bold throughout this section.
Beyond these basic project characteristics there are few criteria that clearly define one
project delivery approach versus another. Rather, there appears to be a spectrum of
options available for all of the key contract terms and conditions. Consequently, the
following discussion of defining features for project delivery methods has been based
on trends we have observed in the use of alternative project delivery.
The table on the following page provides a schematic of the relationships of the
project participants for DBB, DB and DBO and BOOT. Moving from left to right
across the columns the Owner is, in general, relinquishing control over more aspects
of the project in return for the potential of reduced cost and accelerated project
delivery schedule, along with allocating more risk to the private vendor. The pros and
cons of each type of project delivery alternative are identified. The conditions under
which each type of project delivery is preferred is provided in the bottom row of the
table.
The detailed discussion following the table includes for each method:
• General Description;
• Characterization of the Contractual Issues;
• Identification of Potential Benefits; and
• Areas of Concern.
B1381-Sect2