DELIVERING VALUE THROUGH A HALF-CENTURY OF EXPERTISE.

REVOLUTIONIZING PROJECT DELIVERY

PANKOW

DELIVERY METHODS

We consider inclusion and collaboration essential elements of project success. Pankow engages regularly with developers, owners, administrators and end-users. We team with designers, consultants and subcontractors equally strong in integrated project delivery. We involve officials, agencies and communities. Why? Because the stronger the collaboration, the better the solution. Because we can deliver projects with more certainty and with the highest and best use of your resources.

Pankow was instrumental in the founding of the Design Institute of America and is a national leader with the Lean Construction Institute. We have committed to revolutionizing project delivery to find the game changer our industry needs to bring the most value to our clients.

Select an Option to Learn More

DELIVERY METHODS

COLLABORATION
CONTINUUM©

Every project is unique.

We see increasing interest from both our public and private clients for increased levels of collaboration. With over a half-century of experience with every form of project delivery, we have identified levels of collaboration and associated advantages and disadvantages to help you plot your own place along the Collaboration Continuum©.

Select a point on our collaboration scale to learn more.

  • Design Bid Build

  • CM Agency

  • Prescriptive Bridging Design-Build

  • Conceptual Bridging Design-Build

  • CM@Risk

  • Lump Sum Design-Build

  • Cost Plus Design-Build

  • LIPD Lean Integrated Project Delivery

1
Level 1

less collaborative Less Value to Customer

2
Level 2

Mid-Range collaborative More Value to Customer

3
Level 3

Most Collaborative Most Value to Customer

  • Design Bid Build

  • Collaboration Level

  • 1
  • 2
  • 3

Owners are most familiar with this method. It is a linear process where one task follows completion of another with no overlap possible. Plans and specifications are completed by the architect and their consultants, then contractor bids are solicited. Contractors bid the project exactly as designed with the lowest responsive and responsible bidder awarded the work. The design consultant team is selected separately and reports directly to the owner.

RELEVANT RESOURCES

>Project Examples

  • CM Agency

  • Collaboration Level

  • 1
  • 2
  • 3

A Construction Management (CM) Agency’s role is an advisory role only and normally occurs when the CM advises the owner and the owner’s team on project schedules, budgets and construction phase services, review of safety and work programs and administration of general conditions items. CM agents will also work closely with owners on project closeout and during the commissioning and occupancy stages of the project. Often misunderstood, CM Agency is not truly a project delivery system but a management system to advise the owner on the project from start to finish.

RELEVANT RESOURCES

>Project Examples

  • Prescriptive Bridging Design-Build

  • Collaboration Level

  • 1
  • 2
  • 3

Many owners use this delivery method when transitioning from design-bid-build to design-build. Owners work with a design team to create prescriptive project requirements. The Prescriptive Bridging Documents call out products, model numbers, or are detailed plans and specifications, thereby limiting the design options. The Owner exerts more design control the more prescriptive the RFP criteria become. In doing so, the Owner concurrently assumes more of the design risk. As a result, the bridging documents must be carefully prepared to balance these design elements and the risk the Owner desires.

  • Conceptual Bridging Design-Build

  • Collaboration Level

  • 1
  • 2
  • 3

Conceptual Bridging is not Design-Build in the typical sense but makes use of a design-build form of agreement between the owner and the contractor. In conceptual bridging, the owner has its own “bridging architect.” The bridging architect and its consulting engineers - working with the owner - prepare preliminary design documents along with bid documents for a “Design-Build” form of agreement. The bridging architect (and/or the owner’s CM) prepares to give instructions to a design-builder about how to design the project. In practice, this varies a lot but the essential information required before a contract between the owner and design-builder can be signed includes a Space Program, a document that defines the quality of the built elements (often referred to as whole-building performance requirements), and contractual requirements.

  • CM@Risk

  • Collaboration Level

  • 1
  • 2
  • 3

CM@Risk holds the risk of construction performance and guarantees completion of the project for a negotiated price. This delivery system allows the Owner to interview and select a firm, based upon qualifications, experience, OH & fee and General Conditions cost, before the design and bidding documents are completed. The CM, owner and design team work together to develop a cost effective design that meets the owner’s objectives. A guaranteed maximum price (GMP) is provided by the CM after bids are received from subcontractors. Any unused contingency at the end of the project reverts to the Owner. The design consultant team is selected separately and reports directly to the Owner.

  • Lump Sum Design-Build

  • Collaboration Level

  • 1
  • 2
  • 3

Lump Sum contracting, also called Fixed Price, is when an owner contracts with an entity to perform a fixed scope of work in exchange for an agreed lump sum payment for the specified services. This method is one of the most commonly used.

Guaranteed Maximum Price contracting is an arrangement in which an owner contracts with an entity to perform a fixed scope of work in exchange for a price that is guaranteed to not exceed a stated maximum price. The GMP will typically include a base cost along with several allowances and contingencies that, depending on their ultimate use, may result in a final cost below the stated GMP. These “savings” may fall to the owner or may be shared with the entity providing the GMP.

  • Cost Plus Design-Build

  • Collaboration Level

  • 1
  • 2
  • 3

This delivery model begins to recognize the power of a team committed to the Project by establishing labor rates, overhead and profit for the team and allowing the focus to be on the project’s fit, purpose and success. Most of the team players come together in the preconstruction phase of the project under contract with the design-builder maintaining the single point of contact for the Client. The common level of understanding is pushed further to the front of the project planning.

  • LIPD Lean Integrated Project Delivery

  • Collaboration Level

  • 1
  • 2
  • 3

In this project delivery method, the owner hires a single entity to perform both design and construction. While there are a wide variety of team selection methods from negotiated to competitive, in typical competitive selections, several design-build teams are selected to study the project requirements and develop price proposals with firm commitments on project size, function, performance, quality and delivery schedule. Based upon previously published selection criteria, the Owner evaluates the proposals and selects one D-B entity that offers the best value.

Design Bid Build

  • Collaboration Level

  • 1
  • 2
  • 3

Owners are most familiar with this method. It is a linear process where one task follows completion of another with no overlap possible. Plans and specifications are completed by the architect and their consultants, then contractor bids are solicited. Contractors bid the project exactly as designed with the lowest responsive and responsible bidder awarded the work. The design consultant team is selected separately and reports directly to the owner.

RELEVANT RESOURCES

>Project Examples

CM Agency

  • Collaboration Level

  • 1
  • 2
  • 3

A Construction Management (CM) Agency’s role is an advisory role only and normally occurs when the CM advises the owner and the owner’s team on project schedules, budgets and construction phase services, review of safety and work programs and administration of general conditions items. CM agents will also work closely with owners on project closeout and during the commissioning and occupancy stages of the project. Often misunderstood, CM Agency is not truly a project delivery system but a management system to advise the owner on the project from start to finish.

RELEVANT RESOURCES

>Project Examples

Prescriptive Bridging Design-Build

  • Collaboration Level

  • 1
  • 2
  • 3

Many owners use this delivery method when transitioning from design-bid-build to design-build. Owners work with a design team to create prescriptive project requirements. The Prescriptive Bridging Documents call out products, model numbers, or are detailed plans and specifications, thereby limiting the design options. The Owner exerts more design control the more prescriptive the RFP criteria become. In doing so, the Owner concurrently assumes more of the design risk. As a result, the bridging documents must be carefully prepared to balance these design elements and the risk the Owner desires.

Conceptual Bridging Design-Build

  • Collaboration Level

  • 1
  • 2
  • 3

Conceptual Bridging is not Design-Build in the typical sense but makes use of a design-build form of agreement between the owner and the contractor. In conceptual bridging, the owner has its own “bridging architect.” The bridging architect and its consulting engineers - working with the owner - prepare preliminary design documents along with bid documents for a “Design-Build” form of agreement. The bridging architect (and/or the owner’s CM) prepares to give instructions to a design-builder about how to design the project. In practice, this varies a lot but the essential information required before a contract between the owner and design-builder can be signed includes a Space Program, a document that defines the quality of the built elements (often referred to as whole-building performance requirements), and contractual requirements.

CM@Risk

  • Collaboration Level

  • 1
  • 2
  • 3

CM@Risk holds the risk of construction performance and guarantees completion of the project for a negotiated price. This delivery system allows the Owner to interview and select a firm, based upon qualifications, experience, OH & fee and General Conditions cost, before the design and bidding documents are completed. The CM, owner and design team work together to develop a cost effective design that meets the owner’s objectives. A guaranteed maximum price (GMP) is provided by the CM after bids are received from subcontractors. Any unused contingency at the end of the project reverts to the Owner. The design consultant team is selected separately and reports directly to the Owner.

PROJECT EXAMPLES

San Francisco Public Safety Building

Lump Sum Design-Build

  • Collaboration Level

  • 1
  • 2
  • 3

Lump Sum contracting, also called Fixed Price, is when an owner contracts with an entity to perform a fixed scope of work in exchange for an agreed lump sum payment for the specified services. This method is one of the most commonly used.

Guaranteed Maximum Price contracting is an arrangement in which an owner contracts with an entity to perform a fixed scope of work in exchange for a price that is guaranteed to not exceed a stated maximum price. The GMP will typically include a base cost along with several allowances and contingencies that, depending on their ultimate use, may result in a final cost below the stated GMP. These “savings” may fall to the owner or may be shared with the entity providing the GMP.

PROJECT EXAMPLES

Mission College East Campus Complex

Cost Plus Design-Build

  • Collaboration Level

  • 1
  • 2
  • 3

This delivery model begins to recognize the power of a team committed to the Project by establishing labor rates, overhead and profit for the team and allowing the focus to be on the project’s fit, purpose and success. Most of the team players come together in the preconstruction phase of the project under contract with the design-builder maintaining the single point of contact for the Client. The common level of understanding is pushed further to the front of the project planning.

LIPD Lean Integrated Project Delivery

  • Collaboration Level

  • 1
  • 2
  • 3

In this project delivery method, the owner hires a single entity to perform both design and construction. While there are a wide variety of team selection methods from negotiated to competitive, in typical competitive selections, several design-build teams are selected to study the project requirements and develop price proposals with firm commitments on project size, function, performance, quality and delivery schedule. Based upon previously published selection criteria, the Owner evaluates the proposals and selects one D-B entity that offers the best value.

PROJECT EXAMPLES

CPMC/Sutter Van Ness Medical Office Building

Caltech Hameetman Center

DELIVERY METHODS

DESIGN
BUILD

With more than four decades and hundreds of projects as Design Builders, Pankow’s expertise in Design- Build delivery is exceptional in the industry.

DISCIPLINE MEETS AESTHETIC

By retaining independent design professionals—among whom are some of the most highly regarded architects and engineers in the United States—the Pankow system of Design-Build blends the discipline of strong, collaborative design team management with a respect for the aesthetic, functional and systems contributions of our design partners.

A SINGLE SOURCE OF RESPONSIBILITY

Our Design-Build program offers Clients with a single source of responsibility for both design and construction, yet, in order to allow our Clients the level of input they desire during design, we are flexible as to when in the process that contractual design responsibility occurs. Innovation and the application of the Design-Build process dramatically impacts speed, cost and quality on the Client's behalf.

Design Build

HOW DOES OUR DESIGN BUILD MODEL BENEFIT YOU?

QUALITY

With Design-Build, Pankow is responsible for, and therefore motivated to, produce results that we must stand behind after construction is complete. This contrasts with the traditional design-bid-build approach which relies on imperfect documents that are the responsibility of the Owner, extensive inspection and, too often, the legal system.

COST SAVINGS.

Because design and construction work hand-in-hand, efficient solutions impact design concepts before the production of drawings. With Pankow at the table, we can explore multiple options that add value to the Owner.

NO CHANGE ORDERS FOR DESIGN-RELATED
DEFICIENCIES

Once project scope and price are defined and accepted, change orders resulting from design coordination issues are eliminated. Correction of such issues is the responsibility of the design-builder, not the client.

INNOVATION

Since we are at risk, we have an incentive to improve efficiency without sacrificing quality. This translates into our incentive to innovate, with design and construction working and communicating as a team, evaluating alternatives efficiently and accurately, to bring value to the owner.

TIME SAVINGS

Design and construction overlap; collaboration during the design phase eliminates redesign time. This means total design/construction time is reduced. Construction begins in advance of the completed working drawings.

EARLY COST GUARANTEES

Pankow's early price guarantees help Developers establish financing commitments at substantially less out-of-pocket costs prior to the availability of loan proceeds. Early real-cost guarantees eliminate the risk of an Owner, whether public or private, funding completed plans only to learn that the project costs as designed are prohibitive.

DELIVERY METHODS

LEAN INTEGRATED
PROJECT DELIVERY

Pankow is experienced in every form of construction project delivery, from traditional design-bid-build to highly collaborative, but at our heart and in our practice – every project gains value through lean integrated project team delivery.

WHAT IS LEAN INTEGRATED
PROJECT DELIVERY?

The highest form of LEAN Integrated Project Delivery (LIPD) methodology creates a partnership of Owner, Designer and Builder to share the risks inherent in the design and construction process. It also has the potential of incentivizing positive behavior for the entire project team.

Since we see increasing interest from both our public and private clients for increased levels of collaboration, we will be happy to share with you our experience in LIPD methodology. We are partnering with Caltech and Sutter Health using an Integrated Form of Agreement (IFOA) approach – learn how it can be customized to your unique needs.

Lean Integrated Project Delivery

WHAT DOES THIS PROJECT DELIVERY MODEL MEAN FOR YOU?

SHARED RISK

Partnership between Owners, Designers and Constructors to share the risks inherent in the design and construction process.

OPTIMIZED RESULTS

It is a value-based virtual organization aligned to the project that integrates people, systems, business structures and practices into a process that collaboratively harnesses the talents and insights of all participants to optimize project results.

BEST VALUE

Increased value to the Owner through the reduction of waste and maximized efficiency through all phases of design, fabrication and construction.

LOWER COST

Greater potential for lower cost construction and operation.

[x]