An Historical Perspective to Project Delivery Systems

A project delivery system defines the relationship, roles, and responsibilities of the parties to a construction contract and the sequence of activities required to provide a facility. Project delivery systems have evolved and adapted to changes in technology, economics, and politics. This paper gives a brief description of some historical factors that helped shape project delivery systems. Knowledge of the past helps us to understand the present and anticipate the future.

Key Words:  Delivery Systems, Licensure, Legislation, Professional Societies

Introduction

Construction is free enterprise at its wildest and woolliest. In order to tame this wild, rambunctious, high-stakes adventure, we have developed various methods of operation. These methods have been based on patterns of success. We have learned (sometimes the hard way) what works and what does not work. Methods of operation evolve and adapt to changing technological, economic, and political conditions. In spite of relentless change, some methods have stabilized into what we call project delivery systems. A project delivery system defines the relationship, roles, and responsibilities of the parties and the sequence of activities required to provide a facility. This paper is based on the assumption that it would be helpful to know something about the history and background of Project delivery systems. In order to get a glimpse of where you are going, it may help to look at where you have been.

Antiquity 

From the beginnings of recorded history until the Renaissance in Europe, design and construction were not separate professions. Both design and construction were provided by the “master builder” who learned his skills from the trades such as stonecutters or brick masons. The first master builder we know of by name is Imhotep (2630 BC) who designed the Step Pyramid. This is the first major stone building in recorded history. He was also a master in other fields such as medicine, mathematics, astronomy, and poetry (Quatman, 2001).

The crowning achievement of ancient architecture—or perhaps any architecture—is the Great Pyramid at Giza. It was reportedly built about 2575 BC as a tomb for the pharaoh Cheops (Jordan, 1969). It contained six and a quarter million tons of stone. It was 480 feet high, and each side of the base measured 760 feet (Jordan, 1969). Many have speculated about the mystical meaning of the geometry and mathematics of the Great Pyramid, but in truth, it is unknown. However, it is obvious that the Pyramid was designed using geometry as an end in itself. Laid out with uncanny accuracy and built with the precision of a jeweler, it stands as a monument to the combined arts of design and construction.

The Greeks called a master builder arkhitekton, from which we derive the word architect. Two of the best-known Greek architects were Ictinus and Callicrates who designed and built the Parthenon in Athens in the fifth century B.C. This temple is in the Doric style and exhibits a sophistication in design and construction that has not been exceeded to this day. The Greeks established three styles or orders: Doric, Ionic, and Corinthian, which are distinguished by a cohesive and harmonious set of building elements.

Another great master builder was the Roman architect and engineer, Vitruvius, who lived from 70 to 25 B.C. (Microsoft, 1994). He wrote an influential series of books called De Architectura or the Ten Books on Architecture. In addition to describing the architectural orders, these books addressed a wide range of subjects such as how to lay out buildings, construction techniques, sanitation, safety, and practical hydraulics, (Microsoft, 1994). Vitruvius presented the orders as a recommended norm to be interpreted by the constructors according to context (Rattner, 1998). This approach to architecture would take a dramatic turn in the Renaissance.

The Renaissance

One of the best-known master builders of the Renaissance is Filippo Brunelleschi (1377-1446). Brunelleschi was a goldsmith by training, and was versatile in many crafts (Jordan, 1969). He designed and then constructed the dome for the great cathedral in Florence. This is one of the greatest architectural and engineering feats of the Renaissance. One of Brunelleschi’s inspirations was to install a giant iron chain around the base of the dome to prevent the dome from spreading outward. The dome is 130 feet in diameter, consisting of a double shell (Loulakis, 2003). He built the entire dome without centering and without falsework.

Another great master builder of the Renaissance was Michelangelo (1475-1564). He was a true “Renaissance Man.” His accomplishments as a sculptor, painter, and poet are so masterful that we often forget he was also a great architect and builder. His greatest works as a sculptor are the Pietà, David, and the tomb of Julius II. He painted the ceiling of the Sistine Chapel and the Last Judgment, the largest fresco of the Renaissance (Microsoft, 1994). As an architect, he designed and built the Capitoline Hill in Rome and the Laurentian Library, but he is best known for his work on St. Peter’s Basilica. He inherited the foundation built to a design by Bramante and completed the building with major revisions. The Dome for St. Peter’s became the model for domes throughout the western world (Microsoft, 1994).

In 1562, Giacomo Barozzi da Vignola published a landmark set of design guidelines called Rules of the Five Orders of Architecture, which codified the orders by a consistent modular method using simple numerical ratios. Vignola allowed no account for context and presented the proportions as a set of rules that were inviolate (Rattner, 1998). The Rules of the Five Orders of Architecture (sometimes called the Parallel of Classical Orders) proved to be immensely influential and began a new era in architectural design.

The first known architect that did not supervise construction was Leone Battista Alberti. He was a talented artist who was greatly influenced by the Parallel. He initiated a new approach by preparing accurate drawings, which were then given to the compomastro (the clerk of the works). He designed six buildings, three of which were actually built (Loulakis, 2003). He was instrumental in creating a new interest in classical architecture. He wrote extensively about his new approach and influenced a new generation of architects.

The Post-Renaissance Period

In the post-renaissance period, a small minority of gentlemen architects followed Alberti’s lead and began designing buildings without getting involved with managing trade contractors. This is the beginning of the profession of architecture as we know it today and what we now think of as the traditional delivery system.  These men relied on formal training and artistic talent rather than hands-on apprenticeship. This system later became institutionalized in the nineteenth and twentieth centuries in terms of education and professional relationships. If the Renaissance was an awakening, the changes soon to come would be nothing short of a revolution.

The Industrial Revolution

The Industrial Revolution is characterized by a shift from making products by hand to manufacturing products on a large scale. Productivity was increased dramatically by the application of scientific and practical knowledge to the manufacturing process. This in turn created a demand for new facilities and infrastructure. The total volume of construction increased by an order of magnitude.

The Industrial Revolution first developed in Great Britain at the end of the eighteenth century. Then it developed in France, Belgium, Germany, and the United States about the middle of the nineteenth century (Microsoft, 1994). Its influence has been comprehensive and inescapable. One of its most notable influences is that tasks became increasingly specialized. The concept of the master builder began to fragment as designers and builders attempted to maintain expertise in an era of increasing change. For centuries, journeymen and masters in the trades used the same materials and techniques as taught to them in the master/apprentice relationship. Within a few decades, the Industrial Revolution introduced new materials that had no traditions to guide how they were to be used. The Industrial Revolution introduced not only new materials such as iron, glass, and concrete, but new scientific knowledge and methods of analysis. What had previously been learned empirically and taught by tradition was now often determined by complex and specialized calculations. The application of scientific knowledge was encouraged by ever-increasing specialization and the appearance of a new profession—engineering. Both designers and tradesmen began to feel threatened by a business environment driven by radical changes in technology, economics, and politics. In response, they began to organize.

The Rise of Professional Societies and Trade Organizations

As designers and constructors began to think of themselves as distinct professions, they began to develop educational programs and professional societies. “The first school of engineering was founded at Rensselaer Institute in Troy, New York, in 1824, and the first full program in architecture at the University of Illinois in 1867” (Loulakis, 2003, p. 49). The American Society of Civil Engineers and Architects was founded in 1852 in New York. In 1857, the architects split away to form their own organization called the American Institute of Architects (AIA). This was in part due to architects’ concern about engineers working as “package dealers” (Loulakis). Today, we would call this design-build. At the time, architects believed they should not do anything that would compromise their fiduciary relationship with an owner so they prohibited members from having any financial relationship with a contractor, manufacturer, or supplier. This was part of the AIA Code of Ethics until 1978. After the formation of the AIA, the engineers dropped the word architect and became the American Society of Civil Engineers (ASCE). As engineers became more specialized, they formed two additional organizations—the American Consulting Engineers Council (ACEC) and the National Society of Professional Engineers (NSPE). To facilitate the publication of standard form contracts, engineers founded the Engineers Joint Contract Documents Committee (EJCDC).

Constructors also felt a need to organize to look after their interests. They founded the Associated General Contractors of America (AGC) in 1918, which also welcomed specialty contractors and suppliers. Suppliers of similar materials found it to be in their own best interests to organize and promote their products. Some typical trade organizations are the Architectural Woodwork Institute (AWI), the American Concrete Institute (ACI), and the American Plywood Association (APA), to name but a few.

As the practice of construction became more complex and demanding, some people in the construction industry thought that construction should be promoted as a profession instead of a trade. To that end, a group of thirty construction professionals throughout the country founded the American Institute of Constructors (AIC), which incorporated in the State of Oklahoma in 1971 (The American Institute of Constructors, 2003). Part of the mission of the AIC is to enhance the status of the construction profession and encourage equitable relationships with other professionals (The American Institute of Constructors, 2003). This has long been complicated by the existence of licensure.

Licensure

The Constitution of the United States grants the states extensive authority to protect the health, safety, and welfare of the American people. It is by this authority that the states license and regulate professionals such as architects, engineers, accountants, and doctors, and specialty trades such as plumbers and electricians. Land surveyors are typically required to be licensed, but interior designers are not. Contractors may or may not be required to be licensed. The purpose of licensure is to assure the public that whomever they hire is reasonably qualified in their respective field.

“The first architectural licensing law was passed in 1897. The National Council of Architectural Registration Boards was founded in 1919, and its members sought to unify the terms of licensing and to expand licensing to states without registration laws. By the 1930s, every state in the Union had passed some form of architectural and engineering licensing statute” (Loulakis, 2003). In addition to protecting the health, safety, and welfare of the people, licensing laws promoted the separation between design and construction (Loulakis). Licensing statutes specifically define the practices of architecture and engineering and who may provide these services. In addition, professional codes of ethics discouraged providing integrated services. Many, but not all, states require construction contractors to be licensed. Licensing laws vary considerably from state to state. Anyone involved with design and construction should thoroughly investigate the pertaining laws in the state where the project is located as well as where the home offices of the members of the project team are located.

Sometimes the process of professional licensure is referred to as registration. The words licensure and registration may be used interchangeably. In the traditional design-bid-build delivery system, laws regulating professional licensure are usually more straightforward than in design/build. It is imperative that contractors and designers carefully research this issue. The complexity of licensing and professional registration may work to slow down the trend to provide integrated national and global construction services.

Important Legislation

The Code of Hammurabi is the first legal code known in its entirety (Microsoft, 1994). It was discovered in Iraq in 1901. Hammurabi was the king of Babylonia in the 18th century BC. He was a successful warrior and able administrator. He had his code inscribed on stone stele (slabs) and erected in major cities. The Code established 252 laws, some of which addressed negligence in various trades including construction. It could be said to be the first building code. It included all classes of society and is considered to be humane for the time (Microsoft, 1994). The Code is based on equal retaliation.

The Spearin doctrine is based on a landmark Supreme Court decision in 1918 that ruled the owner who supplies plans and specifications to a contractor impliedly warrants to the contractor that the plans and specifications are suitable for construction (Quatman, 2001).

In 1972, U.S. Representative Jack Brooks of Texas sponsored a bill to prohibit competitive bidding of design services (Loulakis, 2003, p. 123). The Act provided that the federal government is required to select architects and engineers based on qualifications and competency rather than fee alone (Loulakis). The logic behind the law is that government buildings should be durable and provide the highest value over time. The same logic does not apply to contractors because the lowest bidder is required to build the same building as the highest bidder.

The Competition in Contracting Act of 1984 allows the government to negotiate contracts instead of using competitive, low-bid procurement. Since then, the use of competitive proposals has overtaken the use of sealed bidding for all federal procurements above the small purchase threshold (Loulakis, 2003, p. 65). This allows the government to award a contract based on “best value.”

The Two-Phase Design-Build Legislation of 1996 allows shortlisting or prequalification of a limited number of firms. The logic behind this procurement method is that putting together a design-build proposal can be very expensive. Many DB firms may not want to make the expenditure if they think they do not have a reasonably good chance to get the job. Shortlisting increases those odds. In phase 1, firms are selected based on qualifications and management approach; in phase 2, only shortlisted firms are asked to submit proposals. Agencies are not required to use cost as a dominant factor.

Project Delivery System Types

In the free-enterprise system, participants in the construction process are allowed much freedom in how they contract with one another. In the United States, there are some restrictions, especially in the public sector, but for the most part, participants are able to create relationships they think will be of most benefit. Most organizations involved with construction use standard form contracts. These contracts can be modified to suit differing circumstances, so in effect, there are an infinite number of variations. However, there are a limited number of ways to categorize project delivery systems. The following categories include most types of delivery systems used in the United States:

Traditional Methods

Construction Management

Design-Build

Looking Ahead

Project delivery systems have evolved over time in response to needs and restrictions common in the construction industry. They provide a template that anyone can use to repeat patterns that have been successful in the past. However, needs and circumstances are constantly changing, inspiring new methods and new relationships. Can we identify any future trends in project delivery systems?

“An adaptation of the well-known Japanese manufacturing process, just-in-time (JIT), has been instituted at R.J. Reynolds in North Carolina, where churn rates in corporate offices require frequent, fast, and accurate renovations of interiors. Under JIT, large projects are broken into small work packages of 7,500 square feet. Small teams of architects and contractors program, plan, demolish, and construct these areas on an hourly basis driven entirely by schedule, where ‘time is everything.’ Successful teams receive additional work (AIA, 1994).

Rik Kunnath, Executive Vice President of Charles Pankow Builders in San Francisco, has stated the following about Turn Key: “Very often a firm with real estate development credentials will be retained to provide turn key services. This development entity, while also responsible for design and construction, is not required, or necessarily inclined, to utilize design-build for this portion of their scope. While we were unable to locate dependable statistical evidence, it is our experience that design-build is not the technique most frequently selected. Some variety of negotiated GMP contract, with designers working directly for the developer is the more common method” (AIACC, 1996, p. 2,).

Joseph Ehrlich, AIA, states that his firm functions best using an arrangement where the architect and contractor form an architect/contractor design-build team and then subcontracts the work to the architect and the contractor. The owner has a contract with the design-build entity (AIACC, 1996).

Conclusion

For most of recorded history, there has been no separation between design and construction. A project was designed, estimated, scheduled, and built by a master builder. A few architects began to consider themselves a separate profession in the late Renaissance, and during the Industrial Revolution, the profession of engineering appeared. The Industrial Revolution introduced new materials and methods that accelerated change that was so extensive people began to look at the world in a new way. Philosophers of science have called this massive change a paradigm shift. Correlated with this paradigm shift was a new emphasis on specialization. Specialization has allowed us to create a high standard of living for many people. The challenge that we face today is how can we maintain our standard of living and yet create works of art—buildings that are fun to design, build, and use?

References

AIA, American Institute of Architects (1994). Cost, time and risk: Evaluating project delivery in the face of change III. Washington DC: The American Institute of Architects.

AIACC, American Institute of Architects California Council (1996). Handbook on project delivery. Sacramento, CA: American Institute of Architects California Council.

American Institute of Constructors (2003, July 31). Homepage [WWW document]. URL http://www.aicnet.org.

Jordan, R.F. (1970). A concise history of western architecture. London: Harcourt, Brace & World.

Loulakis, M.C. (2003). Design-build for the public sector. New York: Aspen.

Microsoft (1994). Encarta ’95.

Quatman, G.W. (2001). Design-build for the design professional. New York: Aspen.

Rattner, D.M. (Ed.). (1998). Parallel of the classical orders of architecture. New York: Acanthus Press.