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