A Project Delivery Method Primer

Bill Couchenour | Monday, September 12, 2011

If you’re planning on building new or renovating facilities, you will likely use one of three general approaches to construction. The lack of understanding and even awareness of the different project delivery methods is certainly understandable in the world of ministry related facilities. It’s not something most churches will do often and it’s not taught in many seminaries. When the time arises, though, it’s important to at least have an awareness. Here’s a brief outline to get you started.

A) Traditional:

1) Design/Bid/Build (D/B/B) – In this approach, the church hires an architect to complete the construction drawings. Those drawings are then offered for contractors to review and submit bids at an assigned time and place. This is probably the approach that’s most widely known because it was the most prevalent approach until about the mid-90s.
2) Negotiated – This approach is similar to A1, except that the bid process is held prior to the completion of the construction documents - usually between the schematic and design development stages of the drawings. This approach adds input from the contractor on the development of the design, though it still positions the architect and contractor in adversarial roles.

B) Construction Management (CM): A fourth entity is added (in addition to the church, architect and contractor)

1) CM as Advisor – In this approach, the church hires someone to simply advise them. The Advisor has no legal authority or responsibility.
2) CM as Agent – The Agent, on the other hand, does have legal authority to sign contracts on behalf of the church. He is hired in addition to the architect and contractor, essentially to oversee their efforts.
3) CM at Risk – This approach is contracted very similar to Traditional/Negotiated. Here the Construction Manager takes on the liability and responsibility of the general contractor as the prime contractor by creating multiple bid packages.

C) Design/Build (D/B): In this approach, the church deals with a single entity for design and construction. The architect and contractor work as a team to develop the project. They may be part of the same company or united through appropriate agreements. D/B has grown over the past few decades, finally overtaking D/B/B over 10 years ago as the most popular approach. There are two other forms of Design/Build, D/B as Developer and Bridging, but you will rarely if ever see these in church projects.

The outline above is meant only as an introduction to the primary approaches a church can take to develop needed ministry facilities. There are pros and cons for each of the approaches and even nuances within each approach. They each have unique characteristics and vary widely in risk and responsibility for the church. But by recognizing that there are, in fact, different ways to go, you can better investigate the approach that’s right for you. NOTE: Don’t confuse project delivery methods (above) with contract methods. Contract methods such as “time and materials”, cost-plus, GMP, lump sum, etc. can be employed with almost any project delivery method, however, certain contract methods are often associated with a particular project delivery method.

Please feel free to comment here or email me at wlc@cogun.com if you have any questions or would like a deeper discussion.

Also, you may be hearing the phrase “Integrated Project Delivery”. If someone is telling you they’ve done IPD, it’s likely not true. They either have a lack of understanding of what IPD actually is, or they are using the term to try to say they’re “IPD-ish” (i.e. they work closely as a team). Real IPD involves combined, shared risk contracts and has only been done in some commercial projects. IPD-ish is good if it really represents an integration of a quality team. However, IPD is definitely on the horizon, and you can find out more by reading The Real Estate Revolution by our friend, Rex Miller. Also, keep your eyes on BIM (Building Information Modeling). BIM is a revolutionary design tool that will make IPD and other forms of deeper collaboration possible.

Any of the approaches above are capable of delivering a building (though I am convinced that some have a much greater chance of success than others to develop the right ministry facilities). But my nearly 30 years of experience has proven to me that the real difference is made with the industry partners you select to make up your team. The right project delivery method can serve the team well, but no project delivery method is strong enough to overcome the wrong partners. So…

…Check back next week for “The Secret to Selecting the Right Partner”

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The Secret to Selecting the Right Partners

Bill Couchenour | Monday, September 19, 2011

As I said last week, the right project delivery method can serve the team well, but no project delivery method is strong enough to overcome the wrong partners. The reality is that the fees paid to the architect and contractor are relatively small compared to the total cost of the project. And they become miniscule when you consider the lifecycle cost of the facility. Yet, these are the people you are hiring to tell you how to spend your big dollars.

Here are seven characteristics for selecting the right industry professionals for your team:

1) Experience – Look for specific experience not only in the building industry, but also with the specific type and size of facility you may be considering. Also look for experience in the specific project delivery method you are using.

2) Familiarity with current trends – Over the next decade, the way we “do” church is going to change significantly. Work with people that understand those trends, and how you can maximize the development of your facilities to anticipate those trends.

3) Breadth & Depth – A building project is a huge change initiative that will impact your church in more ways than you can imagine. Visioning, branding, communication, generosity, strategic planning, leadership development, assimilation, etc. are all important facets. Work with partners that have competencies and connections that can address ALL aspects of the project.

4) Flexibility – It requires patience and understanding to move with the ebb and flow of the variety of personalities and backgrounds in a church. A rigid position without regard for a global perspective will do damage to the people, the process and the product.

5) Fit – In most cases, you will be spending as much as two years or more with your industry partners. That’s longer than the average tenure of a youth pastor. If you wouldn’t hire an industry partner to be on your staff, don’t hire them to be on your team.

6) Collaboration – Collaboration is vital regardless of the project delivery method. Design/Build has overtaken Design/Bid/Build because it has been shown to be faster, less costly, less litigious and with better quality (per a Construction Industry Institute study). That certainly doesn’t mean it’s true in every circumstance, but what it does show is that working together in collaborative rather than adversarial roles will yield a better result. Work with people that know how to collaborate, not just cooperate.

7) Character - There is no amount of experience that can overcome a lack of integrity. Every project has challenges. You want people on your side with character you can count on. Be sure you are comfortable in this area – you will be spending the next couple of years together.

The industry partners you select are critical to the success of your project, even though their fees are a small percentage of the overall costs. If you could select 10 different teams and approaches, you would get 10 dramatically different projects delivered via dramatically different processes with dramatically different consequences. Even project costs (total or per sq. ft.) are only part of the picture. The ultimate goal is a facility that best fits the ministry needs so it propels you forward. And it should be developed through a process that strengthens you and your church.

Challenges are inevitable, so ask yourself this question: “Who do you want to be with in rough water?” The bottom line…

Hire for Competence & Integrity

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It's not the Remarkable Times in our Lives, but the In-Between Times that Matter Most

Bill Couchenour | Monday, September 26, 2011

- was a member of the Hall of Fame
- was a homemaker and much more
- won the City Bowling Tournament in 1969
- was a Sr. Vice President of Leasing
- enjoyed traveling and gardening
- was noted for his artistic abilities as a young child
- loved to cook and host gatherings
- was a veteran of the U.S. Army, serving during the Korean War
- especially loved dancing, and had won trophies for dancing in the past
- enjoyed his wife’s cooking
- was an avid reader in the disciplines of art, politics, foreign language, literature, religion and philosophy
- enjoyed hunting, playing cards and farming
- had worked as a truck driver hauling milk
- was devoted to the grandsons
- was a member of the prayer chain
- was a man dedicated to his faith

Those are just a few comments I collected from today’s obituaries. They are probably common to any day, any place. They’re meant to communicate the essence of a person’s life, but for me they raise more questions than they answer. Did he enjoy his job? Why didn’t he do anything with the artistic talents from his childhood? What was it like for him in the war? What could he teach us from all he read? What was the favorite dish that his wife cooked? How did she feel when she danced? Was she a true “prayer warrior”? How did God work in his life to make him a man of faith?

An obituary is not even a good snapshot of a life. We can read about careers and hobbies. We can read about achievements and accomplishments. We can read about the high points, but no obituary can capture the essence of a life. So what does form the essence of our lives? Our tendency is to focus on our remarkable moments. The times when we won. The times where a lot of hard work culminated in something that we were proud of. Something that might even make others stand up and take notice. Certainly those times are important, but I have come to believe that…

…it’s not our accomplishments, but the way we live our time in-between that tells the true story of our lives.

As I look back on my life and then look forward into eternity, it becomes evident that most of my accomplishments will mean nothing. What will mean something – everything – beyond me – will be the way I treated my wife, what I taught my kids by example, the people I poured my life into to disciple and the common acts of service (especially to the disenfranchised). Did my attitude and demeanor bless or burden people? Did my words encourage and enlighten people or did they break their spirit? I pray God redeems the in-between times I have not lived well. May we commit to living well in the in-between times of everyday – beginning today.

The story formed from our everydays will be the wake that ripples throughout eternity.