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The construction industry is witnessing a paradigm shift in project delivery methods, with contractors and industry experts exploring alternative approaches to streamline processes, improve collaboration, and enhance project outcomes.

At Thursday’s virtual Builder Breakfast panel hosted by the Daily Journal of Commerce, experts discussed various alternative delivery, procurement and finance methods and their applications in both the public and private sectors with around 100 registered attendees.

The panel, moderated by Bill Ohle, shareholder at Schwabe, Williamson, and Wyatt, focused on understanding what alternative delivery methods entail and the types of projects they encompass. While traditional design-bid-build methods remain prevalent, many contractors are now turning to more innovative approaches to meet evolving project demands.

Trevor Wyckoff, vice president account manager for Skanska USA, detailed two notable alternatives commonly used in Oregon and Washington. The first, Construction Manager/General Contractor (CMGC), involves bringing a contractor on board during the preconstruction phase to facilitate project planning and budgeting, usually leading to a guaranteed maximum price. The second, Integrated Project Delivery (IPD), entails a three-party agreement between the owner, designer and contractor. The IPD model focuses on shared incentives to align all stakeholders with project goals.

The shift and rise in alternative delivery methods, Stephanie Coyle, vice president of Hoffman Construction, said occurred because everybody looked at the construction industry and said, 鈥楾here’s got to be a better way,鈥� to build and foster essential collaboration, especially with complex projects.

Coyle added that in Oregon, CMGC remains a popular choice for many projects. In contrast, Washington is recently leaning more toward progressive design-build methods. The preference for these methods is often influenced by factors such as the level of control owners want over design and the degree of collaboration desired, she said.

These alternative delivery methods, while becoming more popular with public work, face implementation challenges as public agencies are typically constrained by state laws, requiring extensive justification for deviating from traditional design-bid-build methods.

George Seaman, project manager at the Port of Portland, said in these cases adopting IPD might involve a more informal version, termed “IPD light,” which retains the collaborative essence of IPD while working within legal frameworks.

A recurring theme throughout the discussion was the importance of collaboration and alignment among all project stakeholders. Seaman said that a project’s success depended more on 鈥渞elational than contractual鈥� dynamics. For instance, in the Main Terminal Redevelopment project at Portland International Airport, the design and construction teams sat together in co-location trailers to enhance coordination and foster common goals, Seaman said.

Another increasingly common alternative delivery method is joint ventures (JV), which was used for the Main Terminal project. It involves two or more construction companies coming together to pool their resources and expertise on a specific project, offering several advantages in supporting local or smaller firms and building partnerships with disadvantaged contractors.

Seaman said that in the case of the $1.95 billion Main Terminal project, the Port received two joint venture proposals that matched the qualifications, ultimately selecting the Hoffman Skanska Joint Venture for the contract. However, the Port’s contracts were initially set up for single entities, not joint ventures, so adjustments were necessary in case the venture folded to ensure the parent companies remained responsible for delivering the project, he added.

Overall, the panel emphasized the industry’s shift toward alternative delivery methods driven by the need for improved collaboration, increased flexibility and alignment with broader project objectives. While public agencies often face regulatory constraints, private sector clients exhibit a higher level of comfort with tried-and-tested CMGC methods. However, the growing awareness of the benefits of alternatives may soon prompt further changes in the industry.

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The next Builder Breakfast event will discuss building material, technologies and techniques. It will be held at 8:30 a.m. Nov. 9, at the Sentinal. Register for the free event here.