Commercial Training & Education for Major Projects

Delivery Models

Choose the Wrong Delivery Model and You Will Spend the Project Fixing It

Most problems on major projects do not start on site. They start when the delivery model is locked in too early or based on the wrong assumptions.

Push an incomplete scope into a lump sum EPC contract and you will be dealing with variation claims within months. Retain too much risk under an EPCM model without the systems to manage it and cost will drift with no way to recover it.

This training focuses on delivery models in major projects and what actually happens once work begins. It is built for teams making early decisions that will shape cost, risk and outcomes for the life of the project.

Equilibrium staff looking at computer screen

Why Delivery Models in Major Projects Matter for Cost, Risk and Control

The delivery model sets the rules for how the project runs. It decides who carries risk, who controls decisions, and how issues are handled when things go wrong.

On EPC contracts, risk is transferred to the contractor. In practice, that often leads to claims when design information is incomplete or performance requirements are unclear. Contractors price the risk up front, then look for recovery through variations once gaps appear.

On EPCM or PCM structures, the owner keeps control and flexibility. That also means the owner carries the cost when drawings are late, procurement is delayed, or scope changes during delivery.

Alliance models remove the usual dispute mechanisms, but they rely on strong governance. Without it, costs can escalate because there is no hard boundary forcing discipline on decisions.

These are the pressure points that drive cost overruns, delays and disputes on real projects

Understanding Delivery Models in Major Projects

Choosing a delivery model is not a paperwork exercise. It is a commercial decision that needs to reflect how the project will actually be delivered.

This module covers how to assess:

Which party is best placed to manage specific risks

Whether the project needs cost certainty or flexibility

How much control the owner needs during delivery

Whether the design is developed enough to support a fixed price

The capability of contractors in the market

For example, issuing a lump sum EPC contract with partially developed design will almost always lead to claims for variations and extensions of time. Keeping that same scope under an EPCM model avoids those claims, but the owner then carries the cost of design changes, rework and delays.

Common Delivery Models Used in Practice

This training breaks down the delivery models used across infrastructure, mining and energy projects, with a focus on how they perform once contracts are in place.

Integrated Project Team

The owner builds a single integrated team with contractors and consultants. This works where the owner has strong internal capability. It breaks down when roles are unclear or decisions are delayed.

Procurement and Construction Management

The contractor manages procurement and construction while the owner holds the trade contracts. This gives visibility and control, but requires tight coordination across multiple contractors to avoid interface issues.

Engineering, Procurement and Construction Management

Adds engineering responsibility to the management model. It helps with coordination, but the owner still carries the risk for design errors, late information and cost increases.

Engineering, Procurement and Construction or Design and Construct

The contractor is responsible for design and delivery typically under a fixed price. This can provide early cost certainty. In practice, disputes often arise where scope is unclear, design is incomplete, or performance requirements are open to interpretation.

Early Contractor Involvement

The contractor contributes to design and planning before the final contract is agreed. This can improve buildability and pricing, but only works if early input is carried through to the delivery contract.

Construct Only

The contractor builds to a completed design. If the design contains errors or gaps, they usually result in variations. This model relies heavily on design quality.

Alliance Contracting

All parties share risk and reward and work under a no blame structure. It removes formal disputes, but requires strong governance and disciplined cost control to avoid overruns.

Where Delivery Models Go Wrong

The model itself is rarely the problem. The way it is set up usually is.

Common failures include:

Locking in a fixed price contract before scope and design are defined

Retaining risk without the commercial or project controls systems to manage it

Contracts that do not match how the project team actually intends to deliver the work

Poor communication between owner, contractor and consultants

For example, on EPC projects, unclear performance specifications often lead to disputes over whether the contractor has met its obligations.

Implementing the Delivery Model Properly

Once the model is selected, it needs to be set up properly from the start.

This includes:

Clear governance and defined decision authority

Agreed communication pathways for formal and informal instructions

Alignment between contract terms and how the project will operate day to day

Strong record keeping to support commercial positions

Without this, even a well chosen delivery model will create problems during execution.

Who This Training Is For

This module is designed for people responsible for delivering project outcomes, including:

Project Directors and Project Managers

Commercial Managers and Contract Leads

Procurement and Tendering Teams

Owners and Operators delivering major projects

It is most useful for teams involved in early planning, contract strategy and delivery model selection.

What Your Team Will Gain

After completing this training, your team will be able to:

Select delivery models based on actual project conditions

Understand how risk allocation affects cost and behaviour

Identify early signs that a delivery model is not working

Reduce exposure to disputes, variations and cost overruns

Make clearer decisions during project setup

Why Equilibrium Project Advisory

Equilibrium works across project strategy, delivery and dispute resolution. That means the training reflects what happens when projects come under pressure, not just how delivery models are described at the tender stage.

Enquire About Delivery Models Training

Delivery Models in Major Projects Training

If your team is making decisions on delivery strategy, this training will help you avoid locking in the wrong model before tender and carrying that risk through the project.

Contact Equilibrium Project Advisory to discuss delivery options for your team.