Early Contractor Involvement (ECI) Construction Project Delivery Methodology for the US Navy

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Abstract:

It has become widely accepted that contractor involvement early in construction project development can lead to positive outcomes. The traditional construction delivery methods of Design-Build (DB) and Design-Bid-Build (DBB) have been the preferred vehicle for the Navy since the 1980s; meanwhile, the construction industry has actively pursued alternative delivery methods (e.g., Construction Manager at Risk/Early Contractor Involvement and Integrated Project Delivery) to improve construction project performance. The United States Army Corps of Engineers (USACE) has implemented Early Contractor Involvement (ECI) with documented success, and Naval Facilities Engineering Systems Command (NAVFAC) is currently in the early adoption phases with trial projects underway in 4 different geographic regions. These projects areexperiencing varying levels of performance because the field does not have experience with this delivery method, and they do not have any guidance or framework to follow. NAVFAC Headquarters intends to send updated guidance to the field offices by May 2022. This research compared recent NAVFAC ECI project performance with what other agencies and the private sector have experienced. Private sector Construction Manager at Risk (CMR) project performance data was prevalent, easily accessible, and determined to be a relevant source forhypothesizing potential ECI outcomes for NAVFAC. The research found that when compared to DB and DBB, CMR is typically more expensive but carries less variance (risk) with respect to cost growth and schedule growth. This cost/performance tradeoff would be of value to NAVFAC, but only in limited circumstances such as the project requiring unique or one-of-a-kind construction means and methods. USACE project performance data did not compare ECI to other project delivery methods, but it did show that ECI was able to deliver cost and time savings when compared to price ceilings and schedule requirements.

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