TY - BOOK
T1 - The current and future performance of road project delivery methods
AU - Koppinen, Tiina
AU - Lahdenperä, Pertti
N1 - Project code: R2SU00764
PY - 2004
Y1 - 2004
N2 - Road authorities are increasingly becoming asset
managers. As a result, activities previously procured
through several agreements may now be included under one
agreement. The client's decision between traditional or
more integrated project delivery is fundamental in
setting up a framework for design, construction and
maintenance. To assist clients in the strategic selection
of the most efficient project delivery methods, this
research determines the performance of Design-Bid-Build,
Construction Management, Design-Build, and
Design-Build-Maintain. Performance is determined based on
the data provided by interviewees in five countries
(Finland, UK, Australia, New Zealand, and USA) and on an
extensive literature review.
The concept of economic efficiency was developed to
compare performance levels of the project delivery
methods. The more value a project delivery system
generates in relation to project cost, the more
economically efficient it is for procuring roads. The
analysis shows that the broader and more integrated
service packages (DB and DBM) can provide better value
for money and meet the needs and wants of the client
better than DBB or CM. Achievement of the full
performance potential presupposes, though, that some
improvements to the delivery systems are made to address
their current weaknesses.
It must also be taken into consideration that each method
should be applied only in appropriate circumstances. It
is still often appropriate to use DBB, when projects are
relatively small, simple, have well-defined end results,
and offer no opportunities to innovate or to generate
revenue. CM will retain its potential in big projects
that are implemented under very restricted conditions or
require flexibility to accommodate client changes. As DBM
may be used in some, very large projects, this leaves DB
as the normal alternative to DBB.
AB - Road authorities are increasingly becoming asset
managers. As a result, activities previously procured
through several agreements may now be included under one
agreement. The client's decision between traditional or
more integrated project delivery is fundamental in
setting up a framework for design, construction and
maintenance. To assist clients in the strategic selection
of the most efficient project delivery methods, this
research determines the performance of Design-Bid-Build,
Construction Management, Design-Build, and
Design-Build-Maintain. Performance is determined based on
the data provided by interviewees in five countries
(Finland, UK, Australia, New Zealand, and USA) and on an
extensive literature review.
The concept of economic efficiency was developed to
compare performance levels of the project delivery
methods. The more value a project delivery system
generates in relation to project cost, the more
economically efficient it is for procuring roads. The
analysis shows that the broader and more integrated
service packages (DB and DBM) can provide better value
for money and meet the needs and wants of the client
better than DBB or CM. Achievement of the full
performance potential presupposes, though, that some
improvements to the delivery systems are made to address
their current weaknesses.
It must also be taken into consideration that each method
should be applied only in appropriate circumstances. It
is still often appropriate to use DBB, when projects are
relatively small, simple, have well-defined end results,
and offer no opportunities to innovate or to generate
revenue. CM will retain its potential in big projects
that are implemented under very restricted conditions or
require flexibility to accommodate client changes. As DBM
may be used in some, very large projects, this leaves DB
as the normal alternative to DBB.
KW - road procurement
KW - project delivery
KW - construction management
KW - Design-Build
KW - Design-Build-Maintain
KW - Design-Build-Finance-Operate
KW - Build-Own-Operate-Transfer
KW - costs
KW - value generation
KW - performance
KW - comparison
KW - future
KW - life cycle
M3 - Report
SN - 951-38-6424-3
T3 - VTT Publications
BT - The current and future performance of road project delivery methods
PB - VTT Technical Research Centre of Finland
CY - Espoo
ER -