Applied Project Management Program (APMP) for Professionals

Common construction project delivery methods

• Design – Bid – Build  : Owner purchases the design of a facility and uses this product to purchase the construction of the designed facility
• Design – Build  : Owner purchases the design and building of the facility with a single contractor or contracted team based on the concept design and / or performance specification provided by the owner.
• EPC – Engineering, Procurement, Construction – Single contractor does the engineering, procurement and construction. These type of contractors are known as EPC contractors.
• Self performance : Owner performs everything including engineering, procurement and construction
• Integrated Project Delivery (IPD) : Multiparty contract in which the owner, architect, contractor and other key stakeholders sign a single agreement. Risks are assigned to the team as a whole on the basis of the overall project performance.
• Public Private Partnership (PPP)
  • Build, Operate, Transfer (BOT)
  • Design, Build, Operate and Maintain (DBOM)

Common construction project contract types

• Fixed price or lump-sum : Work is performed and paid for based on a fixed value or lump sum price according to the contract. Ideal for projects where scope is very clear.
• Unit rate or re-measurable contracts – Work is performed and paid for based on a fixed amount (unit rate) for each unit of work.
• Cost reimbursable contracts
  • Cost + fixed fee
  • Cost + fixed fee + bonus
  • Cost + fixed percentage
  • Cost + fixed fee with guaranteed maximum price (GMP), also known as maximum allowable construction cost (MACC)
  • Cost + fixed fee + GMP and bonus
  • Cost + fixed fee + Agreement for sharing any cost savings
• Time & Material contracts (T&M)
• Incentive contracts
  • Fixed price incentive
  • Cost reimbursable incentive
• Hybrid contracts – combinations