Evaluation and Selection of Airport Capital Project Delivery Methods (2009)

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iv TABLE OF CONTENTS AUTHOR ACKNOWLEDGMENTS ......................................................................................................... vi  ABSTRACT ...................................................................................................................................................... vi EXECUTIVE SUMMARY.............................................................................................................................. 1  CHAPTER 1 – OVERVIEW .......................................................................................................................... 3  Introduction ................................................................................................................................................... 3  Research Plan and the Work Accomplished ............................................................................................. 4  Organization of the Report .......................................................................................................................... 8  CHAPTER 2 – LITERATURE REVIEW AND DEFINITIONS .......................................................... 9  Distinguishing Characteristics of Airport Projects ................................................................................... 9  Evolution of Current Alternative Delivery Methods in Airport Projects ........................................... 14  Definitions of the Delivery Methods ....................................................................................................... 14  Legality of Delivery Methods in Various States ...................................................................................... 22  Existing Selection Approaches of Project Delivery Methods............................................................... 22  Timing of Project Delivery Method Selection ........................................................................................ 24  CHAPTER 3 – ANALYSIS OF AIRPORT CASE STUDIES ............................................................... 26  Background .................................................................................................................................................. 26  Case Study Data Collection Methodology ............................................................................................... 27  Case Study Analysis ..................................................................................................................................... 29  CHAPTER 4 – ADVANTAGES/DISADVANTAGES OF EACH DELIVERY METHOD ....... 47  Introduction ................................................................................................................................................. 47  Purpose ......................................................................................................................................................... 48  Project-Level Issues .................................................................................................................................... 49  Airport-Level Issues .................................................................................................................................... 56  Public Policy/Regulatory Issues ................................................................................................................ 61  Other Issues ................................................................................................................................................. 65  Conclusion .................................................................................................................................................... 66  CHAPTER 5 – TIER 1: ANALYTICAL DELIVERY DECISION APPROACH ............................ 68  Introduction ................................................................................................................................................. 68  Step 1. Create Project Description ............................................................................................................ 71  Step 2. Define Project Goals ..................................................................................................................... 72  Step 3. Review Go/No-Go Decision Points .......................................................................................... 73  Step 4. Review Project Delivery Method Advantages and Disadvantages ......................................... 76  Step 5. Choose the Most Appropriate Project Delivery Method ...................................................... 104  Step 6. Document Results ....................................................................................................................... 107  Conclusions ............................................................................................................................................... 107  CHAPTER 6 – TIER 2: WEIGHTED-MATRIX DELIVERY DECISION APPROACH .......... 108  Introduction .............................................................................................................................................. 108  Step 1. Define Selection Factors ............................................................................................................ 110  Step 2. Weight Selection Factors ............................................................................................................ 112  Step 3. Score Project Delivery Methods ............................................................................................... 113  Step 4. Choose the Most Appropriate Project Delivery Method ...................................................... 117  Step 5. Document Results ....................................................................................................................... 118  Conclusions ............................................................................................................................................... 118  CHAPTER 7 – EVALUATION OF PROJECT DELIVERY METHOD DECISION TOOL .. 119  Final Validation of PDM Multi-Tier Decision Tool ........................................................................... 120 

v CHAPTER 8 – SUMMARY ....................................................................................................................... 123  APPENDIX A – REFERENCES ............................................................................................................. 125  APPENDIX B – INTERVIEW DATA ................................................................................................... 132  APPENDIX C – INTERVIEW BLANK FORM .................................................................................. 189  APPENDIX D – OVERALL ASSESSMENT BLANK FORM ......................................................... 206 

vi AUTHOR ACKNOWLEDGMENTS The research herein was performed under ACRP Project A01-05 by a team led by Northeastern University. The team consisted of Dr. Ali Touran of Northeastern who was the Principal Investigator and two independent consultants, Dr. Douglas D. Gransberg of the University of Oklahoma and Dr. Keith R. Molenaar from the University of Colorado at Boulder. Payam Bakhshi and Kamran Ghavamifar of Northeastern University were research assistants and worked on various parts of this guidebook. ABSTRACT This report documents the benefits and disadvantages of various project delivery methods for capital airport projects and provides guidelines for selecting an appropriate delivery method for a specific project. Project delivery methods considered are Design-Bid-Build (DBB), Construction Manager-at-Risk (CMR), and Design-Build (DB). A two-tiered project delivery selection framework is developed that can help the owners to evaluate pros and cons of each delivery method and select the most appropriate for their project. Tier 1 is a qualitative approach that allows the user to document advantages and disadvantages of each competing delivery method. The user can then review the results of this analysis and select the best delivery method. If at the conclusion of this analysis, a clear option does not emerge, the user then moves on to Tier 2. Tier 2 is a weighted matrix approach that allows the user to quantify the effectiveness of competing delivery methods and select the approach based on quantitative analysis. The framework developed requires the decision-makers to follow a logical and consistent procedure for considering all the relevant factors in project delivery selection. The process produces a Project Delivery Decision Report that documents the decision-making process and details relevant decision factors to fine-tune future project delivery decisions.