Project Delivery: Building the Right Team and Structure for Success

Some of the most important decisions in a development project happen long before construction begins. Before mobilization. Before permits are issued. Before a single subcontractor steps onto the site.

It starts with selecting the right team and establishing the right contractual framework to support the project’s goals.

The framework established during project delivery planning - including procurement strategy, team structure, risk allocation, and contracting approach - often determines how successfully a project will perform throughout construction.

Too often, contracting is treated as an administrative exercise focused primarily on price. In reality, project delivery strategy influences nearly every aspect of execution: coordination, accountability, schedule reliability, cost control, and the ability of teams to solve problems effectively once construction is underway.

The structure established at the beginning of a project impacts everything that follows.

Choosing the Right Delivery Approach

Every project has different priorities, constraints, and risk considerations. A delivery method that works well for one development may create unnecessary challenges for another.

Factors such as project complexity, schedule demands, design progression, market conditions, and owner objectives all influence the appropriate delivery method.

Depending on the project, this may include:

●      Guaranteed Maximum Price (GMP)

●      Lump Sum contracts

●      Construction Manager at Risk (CMAR)

●      Design-Build delivery

●      Phased or fast-track construction approaches

Each structure carries different implications for pricing, flexibility, coordination, and risk allocation.

Selecting the right approach requires more than understanding contract terminology. It requires understanding how the project team will operate within that structure over the life of the development.

The right delivery strategy creates alignment between the owner, consultants, contractors, and schedule from the outset and reduces friction later in the process.

Strong Projects Begin with Strong Alignment

Many construction issues begin long before construction starts.

Scope gaps, incomplete assumptions, schedule conflicts, excessive change orders, and disputes over responsibilities are often the result of poor alignment during procurement and preconstruction - not failures in the field.

Successful projects establish clarity early:

• Clear scopes of work

• Coordinated bid documents

• Defined responsibilities

• Realistic schedules

• Transparent communication between teams
  

This phase is not simply about selecting the lowest number. It is about assembling a team capable of delivering the project successfully while aligning expectations before work begins.

When alignment is established early, teams collaborate more effectively, make decisions faster, and resolve challenges with less disruption during construction.

Creating a Competitive and Transparent Process

A well-managed procurement process creates both clarity and accountability.

Competitive bidding should evaluate more than cost alone. Experience, staffing, constructability input, scheduling approach, financial stability, and overall understanding of the project all play a critical role in long-term project success. The strongest procurement processes create an environment where bidders are working from complete information and aligned expectations.Without that structure, inconsistencies between assumptions, scope interpretations, and project understanding can create significant issues later in construction.

Effective procurement reduces uncertainty rather than introducing it.

Managing Risk Before Construction Begins

One of the greatest opportunities to reduce project risk occurs before contracts are executed.

Clear scopes of work, coordinated drawings, complete bid packages, and properly defined responsibilities help minimize avoidable change orders during construction.

Too often, cost growth during construction is attributed to unforeseen conditions when the real issue is incomplete coordination or unclear expectations established earlier in the process. Proactive planning during project delivery helps minimize:

• Avoidable change orders

• Scope disputes

• Schedule impacts

• Coordination conflicts

• Reactive decision-making during construction
  

The earlier issues are identified, the less disruptive and less expensive they are to resolve.

Delivery Strategy Must Reflect Market Conditions

Project delivery methods should not be selected in isolation.

Labor availability, subcontractor capacity, material lead times, and overall market conditions all influence how procurement and contracting strategies should be structured.

In highly competitive construction markets, early contractor involvement and phased procurement can create meaningful advantages in pricing, coordination, and schedule reliability. In other situations, a more traditional competitive bid approach may better align with project goals.

Successful delivery strategy adapts not only to the project itself, but also to the realities of the market surrounding it.

Understanding those dynamics allows owners to make more informed decisions before construction begins.

Compass’ Approach

At Compass Development, we view project delivery strategy as a critical component of overall project planning and execution.

Our role is to help owners establish the right structure, align the right teams, and create a framework that supports successful project execution from the very beginning. We work closely with project teams to:

●      Develop clear and coordinated bid packages

●      Facilitate transparent bidding and contractor selection

●      Review scopes and identify potential gaps or overlaps

●      Support contract negotiations and risk allocation discussions

Align budget, schedule, and construction expectations across the team By approaching contracting strategically and proactively, projects are better positioned to maintain momentum, reduce avoidable conflict, and create stronger collaboration throughout construction.

Because successful projects are not built by contracts alone.

They are built by the teams, expectations, accountability, and alignment established before construction ever begins.

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We are excited to create real estate development solutions that become a part of a community. If you would like to explore a commercial real estate, hospitality or multifamily development project or joint venture, contact Michael Shohet at mshohet@compassdevco.com.