Road sector experiences on project delivery methods

Tiina Koppinen, Pertti Lahdenperä

Research output: Book/ReportReport

Abstract

Globally, innovative delivery methods involving broader service packages are increasingly used in infrastructure projects. In addition to construction and technical design also; financing, operation and maintenance for a certain period of time may be integral parts of the contract. This change is driven by the clients' quest to focus on their core business - securing adequate infrastructure - and by the clients' and the contractors' aim to increase their benefits. At the same time, the number of alternative project delivery methods is increasing making it more difficult for the client to select an appropriate method. As a result, decisions to use any of the alternative project delivery methods are often subjective. There is an evident lack of consolidated knowledge about the specific merits of these alternative routes. To assist strategic decision making on the best project delivery methods for future project delivery, the research concentrated on gathering data on the performance of different road project delivery methods. Data was gathered on the performance of the traditional Design-Bid-Build (DBB) and the Design-Build (DB), Construction Management (CM) and Design-Build-Maintain (DBM and its variants DBOM, DBFO, BOOT, etc.) project delivery systems in road construction in Finland, UK, Australia, New Zealand and USA. The main source of information were semi-structured interviews of the main market actors (clients, contractors, designers, consultants and researchers). Additionally an extensive literature review was done to supplement and verify the data provided by the interviewees. The data was then used as the basis for the actual performance analysis presented in the second report 'The Current and Future Performance of Road Project Delivery Methods'. It seems that the problems experienced with DBB have led to increased use of DB and DBM in the countries of interest. These project delivery methods help deliver projects in time and to budget while also reducing other experienced problems (adversarial relationships, etc.). However, there seem to be some problems even with DB (reduced quality, etc.) and DBM (reduced client flexibility, etc.). Solutions to these problems are sought by largely similar actions taken or planned in the different countries. Alliancing also seems to provide an interesting alternative for complex and large projects. Use of CM in road construction is marginal.
Original languageEnglish
Place of PublicationEspoo
PublisherVTT Technical Research Centre of Finland
Number of pages254
ISBN (Electronic)951-38-6508-8
ISBN (Print)951-38-6507-X
Publication statusPublished - 2004
MoE publication typeNot Eligible

Publication series

SeriesVTT Tiedotteita - Meddelanden - Research Notes
Number2260
ISSN1235-0605

Fingerprint

Road construction
Contractors
Decision making
Industry

Keywords

  • road procurement
  • project delivery
  • design
  • construction
  • maintenance
  • Design-Bid-Build
  • construction management
  • Design-Build
  • Design-Build-Maintain
  • Design-Build-Finance-Operate
  • Build-Own-Operate-Transfer
  • alliance
  • costs
  • performance
  • innovation

Cite this

Koppinen, T., & Lahdenperä, P. (2004). Road sector experiences on project delivery methods. Espoo: VTT Technical Research Centre of Finland. VTT Tiedotteita - Meddelanden - Research Notes, No. 2260
Koppinen, Tiina ; Lahdenperä, Pertti. / Road sector experiences on project delivery methods. Espoo : VTT Technical Research Centre of Finland, 2004. 254 p. (VTT Tiedotteita - Meddelanden - Research Notes; No. 2260).
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Koppinen, T & Lahdenperä, P 2004, Road sector experiences on project delivery methods. VTT Tiedotteita - Meddelanden - Research Notes, no. 2260, VTT Technical Research Centre of Finland, Espoo.

Road sector experiences on project delivery methods. / Koppinen, Tiina; Lahdenperä, Pertti.

Espoo : VTT Technical Research Centre of Finland, 2004. 254 p. (VTT Tiedotteita - Meddelanden - Research Notes; No. 2260).

Research output: Book/ReportReport

TY - BOOK

T1 - Road sector experiences on project delivery methods

AU - Koppinen, Tiina

AU - Lahdenperä, Pertti

PY - 2004

Y1 - 2004

N2 - Globally, innovative delivery methods involving broader service packages are increasingly used in infrastructure projects. In addition to construction and technical design also; financing, operation and maintenance for a certain period of time may be integral parts of the contract. This change is driven by the clients' quest to focus on their core business - securing adequate infrastructure - and by the clients' and the contractors' aim to increase their benefits. At the same time, the number of alternative project delivery methods is increasing making it more difficult for the client to select an appropriate method. As a result, decisions to use any of the alternative project delivery methods are often subjective. There is an evident lack of consolidated knowledge about the specific merits of these alternative routes. To assist strategic decision making on the best project delivery methods for future project delivery, the research concentrated on gathering data on the performance of different road project delivery methods. Data was gathered on the performance of the traditional Design-Bid-Build (DBB) and the Design-Build (DB), Construction Management (CM) and Design-Build-Maintain (DBM and its variants DBOM, DBFO, BOOT, etc.) project delivery systems in road construction in Finland, UK, Australia, New Zealand and USA. The main source of information were semi-structured interviews of the main market actors (clients, contractors, designers, consultants and researchers). Additionally an extensive literature review was done to supplement and verify the data provided by the interviewees. The data was then used as the basis for the actual performance analysis presented in the second report 'The Current and Future Performance of Road Project Delivery Methods'. It seems that the problems experienced with DBB have led to increased use of DB and DBM in the countries of interest. These project delivery methods help deliver projects in time and to budget while also reducing other experienced problems (adversarial relationships, etc.). However, there seem to be some problems even with DB (reduced quality, etc.) and DBM (reduced client flexibility, etc.). Solutions to these problems are sought by largely similar actions taken or planned in the different countries. Alliancing also seems to provide an interesting alternative for complex and large projects. Use of CM in road construction is marginal.

AB - Globally, innovative delivery methods involving broader service packages are increasingly used in infrastructure projects. In addition to construction and technical design also; financing, operation and maintenance for a certain period of time may be integral parts of the contract. This change is driven by the clients' quest to focus on their core business - securing adequate infrastructure - and by the clients' and the contractors' aim to increase their benefits. At the same time, the number of alternative project delivery methods is increasing making it more difficult for the client to select an appropriate method. As a result, decisions to use any of the alternative project delivery methods are often subjective. There is an evident lack of consolidated knowledge about the specific merits of these alternative routes. To assist strategic decision making on the best project delivery methods for future project delivery, the research concentrated on gathering data on the performance of different road project delivery methods. Data was gathered on the performance of the traditional Design-Bid-Build (DBB) and the Design-Build (DB), Construction Management (CM) and Design-Build-Maintain (DBM and its variants DBOM, DBFO, BOOT, etc.) project delivery systems in road construction in Finland, UK, Australia, New Zealand and USA. The main source of information were semi-structured interviews of the main market actors (clients, contractors, designers, consultants and researchers). Additionally an extensive literature review was done to supplement and verify the data provided by the interviewees. The data was then used as the basis for the actual performance analysis presented in the second report 'The Current and Future Performance of Road Project Delivery Methods'. It seems that the problems experienced with DBB have led to increased use of DB and DBM in the countries of interest. These project delivery methods help deliver projects in time and to budget while also reducing other experienced problems (adversarial relationships, etc.). However, there seem to be some problems even with DB (reduced quality, etc.) and DBM (reduced client flexibility, etc.). Solutions to these problems are sought by largely similar actions taken or planned in the different countries. Alliancing also seems to provide an interesting alternative for complex and large projects. Use of CM in road construction is marginal.

KW - road procurement

KW - project delivery

KW - design

KW - construction

KW - maintenance

KW - Design-Bid-Build

KW - construction management

KW - Design-Build

KW - Design-Build-Maintain

KW - Design-Build-Finance-Operate

KW - Build-Own-Operate-Transfer

KW - alliance

KW - costs

KW - performance

KW - innovation

M3 - Report

SN - 951-38-6507-X

T3 - VTT Tiedotteita - Meddelanden - Research Notes

BT - Road sector experiences on project delivery methods

PB - VTT Technical Research Centre of Finland

CY - Espoo

ER -

Koppinen T, Lahdenperä P. Road sector experiences on project delivery methods. Espoo: VTT Technical Research Centre of Finland, 2004. 254 p. (VTT Tiedotteita - Meddelanden - Research Notes; No. 2260).