If you’re ready to pull the trigger on that long-awaited new construction or renovation project, but you don’t know how to make the magic happen, read on.

A project delivery method is the way an owner organizes and pays for construction. The approach you choose determines who will oversee the project, communicate directly with you from concept through completion and assume the project’s financial risk.

Each project delivery method has its advantages and disadvantages. The type of project can also be a factor in which approach you choose. This crash course explains the key options that are available to you and the pros and cons of these approaches.

Delivery methods deconstructed

Krusinski Construction Company’s key construction relationships and project delivery methods include design-bid-build, design-build, design-assist and construction manager at risk, which involves a cost-plus-fee contract. Read on to learn how each approach works.

Design-bid-build

This is the traditional approach to construction and the one with which owners are most familiar. If you want to participate in the design process and your project isn’t schedule-sensitive, this method could be the best one for you.

If you choose this strategy, you’ll start by hiring an architect to design your building. Once you’re satisfied with the design, the architect will help you find potential contractors, who will submit competitive bids for the project. After selecting the contractor, you’ll sign a separate contract with the construction company.

Pros: You’ll be able to influence the design by working with the architect directly. Getting the design up front gives contractors the same plans and specifications to bid on, which means you’ll be able to compare quotes on a level playing field.

Cons: This method focuses on bid price rather than the final cost of the project. Since all bidding contractors will only include what the drawings show, you could end up paying more if the drawings have any scope gaps. Design revisions and change orders can blow your budget and schedule. Another big disadvantage with design-bid-build is that you don’t get the benefit of having a contractor’s input on budget, schedule, constructability issues, and alternate materials and systems. Finally, projects tend to take longer because one phase doesn’t begin until the previous phase is complete.

Design-build

In a hurry? This may be the way to go. This single-source delivery combines the design and construction in one contract. Using this option, you’ll hire a contractor or an architect — whichever you prefer — as your main contact. Typically, owners will select a contractor who, with help from an architect of the contractor’s choosing, will design and construct the building. If you contract with an architect first, the architect will select and work with the contractor directly. In either case, the owner, contractor and architect work as a team to design and build the project.

Pros: These projects are well-suited for fast-track construction because design and construction often overlap. For example, an architect could complete a building’s interior designs while the contractor does the site and foundation work. Getting the contractor involved in the design process right away improves collaboration and often increases price certainty for an owner.

Cons: Opponents contend that design-build contracts undermine the inherent checks and balances between design and construction teams because the teams don’t work independently as they do in other approaches. This criticism, however, is unwarranted. Since project team members work in unity, they all assume equal responsibility for any flaw in the project.

Design-assist

Design-assist is a blend of design-build and traditional bid contracts. An owner executes the design contract with the architect and brings in a contractor early on to provide input into the design process. This allows an owner to “marry” his choices for architect and contractor and allows the team to detect and resolve design challenges and constructability issues long before construction begins.

Pros: This model facilitates fast-track construction and also promotes early contractor involvement to incorporate preliminary budgets, constructability issues and alternate methods. As an owner, you get the best of both worlds by choosing your team members and working with them in a coordinated effort.

Cons: The architect and contractor have no contractual obligation to each other and, therefore, it may be difficult to resolve certain design or budget issues. Also, the architect and contractor may not be familiar with each other, which may create a learning curve hurdle early on.

Construction manager at risk (cost-plus-fee contract)

If you’re a busy owner who would rather have less direct involvement in a project, you can hand the reins over to a construction manager (CM), who will act as your agent and represent your interests. After contracting with a CM, the CM will hire the architect and collaborate with the design team while overseeing the design, cost and schedule. The CM will also hire the subcontractors, who will build the project, and make sure everything goes smoothly until the project is done. A good CM will help reduce overall costs.

Pros: Busy owners can step back from a project and let someone else — the CM — do all the work. Having an experienced CM manage day-to-day project operations can help ensure a smoother ride. This project delivery method also provides a defined maximum price, which typically includes a shared-savings clause between the CM and the owner to help speed completion. Finally, fast-track construction is possible with this method because construction can begin before the design is completed.

Cons: The perception is that the CM will not be diligent about keeping costs low because his fee is based on the final price. As result, it’s important to hire a CM you trust and who has an open-book policy. You also need to be sure that the CM has ample experience to avoid potential scope gaps because you’ll have to pick up the tab for any change orders.

The bottom line

Which project delivery method you choose will depend on your goals, time and cost constraints, and risk aversion. Krusinski works hand in hand with owners and project teams to identify the ideal approach within these parameters. When you can make an informed decision, you’ll save time, money and worry.

To learn more about Krusinski’s project delivery methods, contact Jeff Krusinski at jeffk@krusinski.com.

Here’s an update on our most recent work:

GES office building and warehouse, Hodgkins, Ill.: Krusinski started building this 43,200-square-foot, two-story building and warehouse in August. The project is slated for completion by the end of the year. Developer: IAC; Superintendent: Jeff Cali; Senior Project Manager: Andy Johnson; and architect: Ware Malcomb.

RidgePort Logistics Center™, Wilmington, Ill.: Krusinski has completed the haul road and related site preparations for this 1,500-acre business park near Joliet, Ill. The park will be a Midwest warehousing and distribution hub. Developer: Ridge Property Trust; Project Superintendent: Shawn Barry; Senior Project Manager: Steve Moeller; and engineers: Jacob & Hefner and TranSystems Corp.

Roquette® Innovation Center, Geneva, Ill.: Krusinski completed this 40,000-square-foot sustainable, high-tech center for corn processor Roquette in May. The facility includes test labs, a pilot production plant, a kitchen, an auditorium and meeting rooms. The building is Leadership in Energy and Environmental Design Silver-eligible. Sustainable features include water-efficient landscaping, native vegetation and preserved farmland. Senior Project Manager: Joe Krusinski III; and architect: Cordogan Clark.

Fortune 20 company, Olive Branch, Miss.: Krusinski completed a 600,000-square-foot state-of-the-art distribution facility for the company this summer. It includes sustainable features such as a TPO roof, low-flow water fixtures, water-efficient landscaping and motion-activated lights. Project Superintendent: Rodger Helms; Senior Project Manager: Mike Metz; Project Engineer: Dominic Valvano; and architect: Gromatzky Dupree & Associates.

Quinlan & Fabish Music Co. interior renovations, Burr Ridge, Ill.: Krusinski finished the second-phase renovation of this 54,000-square-foot office and manufacturing facility in July. Krusinski completed the first phase last year. The second phase included a 5,000-square-foot office and manufacturing facility, instrument repair space with specialty work stations, and an ultrasonic room. Project Superintendent: Chuck Onik; Senior Project Manager: Joe Krusinski III; and architect: Ware Malcomb.

Maintaining commercial buildings is a major investment, but it helps preserve their value over the long haul. Preventive care keeps buildings in prime shape and saves money in the long run by addressing issues before they become costly repairs. Shawn Barry, general superintendent and corporate safety officer at Krusinski Construction Company, has some maintenance suggestions and reminders. These basic tips are not intended to be a sole source or reference for all maintenance.

Doors and hardware — Make sure that all doors close properly. Defective hardware can keep a door from latching even though it appears to be closed.

Electrical systems — A licensed electrician should inspect electrical systems once a year. An inspection typically includes checking switchgear, panel boards and connections, and cleaning connections. A building’s power must be shut off for this process.

Emergency and standby systems — Inspect and test emergency generators and backup systems, as well as emergency lights, regularly to be sure they’re in good working order.

Fire and life-safety systems — Inspect alarm systems; fire extinguishers and sprinklers; and fire, smoke and carbon monoxide detectors once a year for proper operation.

First-aid equipment — Inspect defibrillators every six months. Be sure first-aid kits are fully stocked with fresh supplies.

Heating, ventilating and air conditioning (HVAC) units — A professional service agreement for changing air filters, checking belts, lubricating parts and performing other maintenance on a regular schedule is crucial for keeping everything running smoothly. Inspect HVAC systems at least twice a year — once in the spring and once in the fall.

Overhead doors and dock levelers — Check them once a year to be sure they work properly.

Parking lots — Fill any cracks and seal lots regularly. It’s much more cost-effective to patch pavement than it is to replace it.

Plumbing — Inspect plumbing at least annually, including the domestic RPZ, a back-flow prevention device that must also be certified. Turn the faucets off and on once every two or three weeks in any little-used bathrooms to keep the rubber washers from dry-rotting. Pour a little vegetable oil in the drains in these bathrooms to minimize potential buildup of sewer gases.

Roof — Inspect at least twice a year and after any severe storm. Clear any debris from roof drains.

When Krusinski completes construction of new buildings, the company gives each owner an instructional DVD that covers key systems and maintenance, as well as an operating manual for the equipment. Owners who have questions can check with equipment manufacturers, their building engineers or authorized service professionals.

Krusinski’s leadership team continues to tap into the knowledge and resources of other highly respected construction companies through its 14-year affiliation with the Citadel National Construction Group. Krusinski improves performance on all its projects by sharing and embracing best practices and solutions.

The principals participate in monthly conference calls and quarterly meetings. Other members in the group, which include chief financial officers; pre-construction, operations and IT personnel; and business development and marketing managers, participate in conference calls and face-to-face meetings as well.

Most recently, the group met to discuss topics such as mechanical, electrical and plumbing coordination; building information modeling; estimating software; and industry recruitment initiatives. Open, round-table discussions that focus on best practices, lessons learned and new technology enable Krusinski to evolve and provide a high-quality experience on every job.

Krusinski’s involvement in the organization also enables the company to pave the way for clients who are considering building projects outside Illinois. Krusinski just completed a project in Mississippi for a Fortune 20 client for whom the company built a distribution center in Aurora in 2007.

To learn more about the Citadel National Construction Group, contact Jerry Krusinski at jerryk@krusinski.com.

Krusinski participates in and exhibits at area trade shows to stay current with industry trends and technology and provide optimal services to clients. The company will showcase its expertise and services for brokers, developers and other industry VIPs at the Association of Industrial Real Estate Brokers (AIRE) Trade Show & Developers Showcase Sept. 15 in Chicago. Stop by Krusinski’s booth, 107, to learn more about the company’s current projects and to enter a drawing for a great prize!