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Construction Delivery Methods: 4 Paths for Business Owners

For business owners, proceeding with a construction project is a major decision, and to ensure a great construction experience, they must select the right team. Once an owner proves its project’s financial model makes sense for their business, they can either hire a design firm (architect) or a commercial general contractor with design capabilities. Who the owner contacts first largely depends on the owner’s preference or who they have a pre-established relationship with. However, it’s critical to have the voice of both the architect and contractor on the project.

The next important decision an owner needs to make is selecting the construction delivery method for their project. “Delivery method” is a fancy term for who holds the legal agreement or contract with whom. There are four typical paths or delivery methods an owner can take.

  1. Design-Bid-Build or Hard Bid – The owner holds the agreement with a designer. The designer designs the project to 100% completion and then engages the contractor. As a result, the owner holds an agreement with both the designer and contractor.
  2. Construction Manager as Constructor (CMc) or Construction Manager at Risk (CMAR) – The owner holds the agreement with the designer and the contractor. This time, the owner brings on the contractor at the same time they hire a designer. Thus, the owner has the perspective of the contractor and designer as they are going through the design process.
  3. Construction Manager as Agent (CMa) – This delivery method is the exact same as CMAR with one major difference. The owner also holds agreements with each individual trade contractor such as a plumber, electrician, carpenter, etc. While the direct contractual flow is from the trade contractor to the owner, the CMa does all the work of administering those contracts.
  4. Design-Build – The owner holds a single agreement with either a designer or contractor and that entity is responsible for the entire design and construction risk. More often, this agreement is held between the owner and the contractor who either hires an outside architect or who has the design capabilities in-house.

In our Delivery Methods: Four Paths A Business Owner Can Take to Complete Their Next Project podcast, we dive into the pros and cons of each delivery method. Listen and learn why understanding each delivery method can be a time-consuming process and for some, take years to fully comprehend.

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Because we could have spent hours on this topic, we decided to break each delivery method into its own podcast. Stay tuned for these upcoming episodes!

COVID-19 & Higher Education: Our Conversation with Mike Poster of St. Ambrose University

For college students across the country, March 2020 will forever be imprinted in their memories. Classrooms shifted from in-person to online overnight, dormitories went from bustling to vacant, and fine arts and athletic schedules were postponed indefinitely. The Coronavirus outbreak caused seismic disruptions to student life and higher education operations.

When St. Ambrose University, a private institution grounded in the liberal arts, committed to academic excellence, social justice, and service transitioned to distance learning halfway through the second semester, they fully refunded students for their room and board even though it meant losing approximately $3.3 million in revenue.

We had the privilege of sitting down with Mike Poster, Vice President of Finance at St. Ambrose, to discuss how the university has handled COVID-19 challenges. In this podcast episode, we talk to Mike about how classrooms have been configured to meet social distancing guidelines while also safely supporting personal, in-class interactions. And why, amid a global pandemic, St. Ambrose experienced a peak in recruitment and enrollment.

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Tune in to our conversation and learn:

  • What student life looks like this fall.
  • How St. Ambrose has been able to differentiate themselves through COVID-19.
  • Tips for high school students evaluating higher education institutions.

For more information on St. Ambrose’s Fall 2020 plans, visit https://www.sau.edu/.

The Spaces, Built by Bush Construction Podcast is Live!

We are so excited to launch a podcast that brings genuine conversations to all things construction, design, and development. We have a great line up of episodes planned for you, ranging from our own stories as an experienced commercial contractor and design firm to interviews with community leaders on an array of construction topics.

Our podcast team – AJ Loss, President and CEO, Amy Simler Vice President of Strategic Markets, Michael Johnson, Director of Integrated Design and Technology, and Ali Bolin, Marketing Manager – kick off the first episode with a discussion on the impact COVID-19 has had on the construction industry.

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Learn about the biggest adaptation Bush Construction has had to make during the pandemic and how we have continued to ensure the safety of both field operations and office personnel. In addition, you’ll hear our thoughts on:

  1. how COVID-19 catapulted our business years ahead and has presented new growth opportunities.
  2. why video conferencing will play a larger role in future meetings and provide additional time savings.
  3. the importance of hiring a diverse workforce that can perform at a high-level in the office and remotely.

And a bonus! The team shares the names of books and podcasts they’re currently listening to or reading.

Rate, Review and Subscribe!

If you like what you hear, be sure to rate, review, and subscribe to our podcast on Apple or Google Play.

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