Streamlined procurement delivers critical water infrastructure
At a glance
The ASCE Score Card recently gave infrastructure in the United States a C- score, magnifying the need to efficiently deliver critical infrastructure projects. Utilities recognize alternative project delivery streamlines project execution and shifts certain risk to a single entity. Alternative project delivery procurement is frequently seen around the world and is becoming more common in the US.
What is alterative project delivery?
The most common methods include: design-build, design & construct, progressive design build, integrated project delivery, alliance and public private partnerships. Well-known acronyms for these include DB, D&C, IPD, P3, PPP, DBF, DBFOM, DBOM, DBOOT, EPC, EPCM and EPCFM. With so many choices, it can be overwhelming to decide what the benefits are and how to decide if it is right for your project.
In any alternative delivery project, the integration between stakeholders gives an earlier understanding of the capital project costs that can often be less than if a project is delivered by the more traditionally seen bid-build procurement method. In addition to cost savings, schedules can be compressed, getting assets online faster and more efficiently.
Design changes in the field during execution are among the most expensive risks on a project. Seamless cooperation and communication are needed to mitigate these. With the contractual teaming arrangement of these projects, execution risks are moved from the owner to the single entity made up primarily of the contractor and design firm. The two firms also begin working together early in the process to mitigate those risks.
Alternative project delivery can facilitate the successful completion of complicated and often difficult projects. Key considerations when choosing an alternative project delivery procurement are as follows:
- Know what projects are best suited; these are projects clearly defined at the conceptual stage
- A comprehensive understanding of what decisions need to be made up front and early
- Stakeholder agreement on basic performance and technical requirements before design begins
- Experience and demonstrated success of key staff on the team
Once the decision is made for an alternative project delivery procurement, you need trusted and experienced partners. We offer a total solution for alternative delivery water projects and have executed more than 250 around the world.