Arizona Construction Project Delivery Methods

Project delivery methods define the contractual and organizational structure that governs how an owner, designer, and contractor relate to one another throughout a construction project. In Arizona, the choice of delivery method affects procurement rules, risk allocation, schedule, and the permitting sequence from design through certificate of occupancy. This page covers the four primary delivery structures used in Arizona commercial and public construction, the regulatory frameworks that govern each, and the decision criteria that distinguish one approach from another.

Definition and scope

A project delivery method is the system by which an owner contracts for the design and construction of a facility. The method determines who holds which contracts, who bears design liability, and how scope changes and disputes are administered. In Arizona, public agencies are governed by the Arizona Revised Statutes Title 34, which prescribes allowable delivery methods for state and municipal projects. Private owners are not bound by Title 34 but operate under the general contracting law framework administered by the Arizona Registrar of Contractors (ROC), which licenses the entities executing any delivery structure.

The four delivery methods with established usage in Arizona are:

1. Design-Bid-Build (DBB)
2. Design-Build (DB)
3. Construction Manager at Risk (CMAR)
4. Job Order Contracting (JOC)

Each method carries distinct liability profiles, schedule implications, and permitting sequences. A more detailed breakdown of delivery structures specific to Arizona public procurement appears at Arizona Design-Build and Delivery Methods and Arizona Public Construction Procurement.

Scope and coverage: This page addresses project delivery methods as applied to commercial, industrial, and public construction in the state of Arizona. It does not address federal construction contracts administered under the Federal Acquisition Regulation (FAR), which follow separate procurement rules. Construction on tribal lands operates under sovereign tribal procurement authority and is not covered here — see Arizona Tribal Land Construction Considerations for that context. Residential construction under 3 stories may be subject to different ROC licensing categories and is not the primary focus of this page.

How it works

Design-Bid-Build is the traditional linear sequence. The owner retains a licensed architect or engineer of record who produces construction documents. Those documents are then competitively bid, and a general contractor is selected. The contractor holds no contractual relationship with the designer; disputes between design defects and construction errors frequently require resolution through Arizona Construction Dispute Resolution processes. Under Arizona Revised Statutes § 34-101, DBB remains the default method for most state agency projects unless an alternative is approved.

Design-Build consolidates design and construction responsibility into a single contract entity — the design-builder, which may be a contractor-led team or an architect-led joint venture. Arizona adopted formal Design-Build authority for public agencies through A.R.S. § 34-603, which requires a two-phase selection process: a qualifications phase followed by a best-value proposal phase. The owner issues a Request for Qualifications (RFQ) and then a Request for Proposals (RFP). Because design and construction overlap, the permitting sequence compresses — partial permit sets are submitted for foundation and structural work while design of finish systems continues. The Arizona Department of Administration maintains procurement guidelines that govern how state agencies use DB authority.

Construction Manager at Risk (CMAR) separates the design and construction contracts but brings the contractor into the project during design, typically after schematic design is complete. The CMAR provides preconstruction services — estimating, constructability review, scheduling — and then commits to a Guaranteed Maximum Price (GMP) before construction begins. Arizona codified CMAR for public use under A.R.S. § 34-604. The GMP mechanism transfers cost overrun risk to the contractor above an agreed ceiling, though savings below the GMP may be shared per contract terms.

Job Order Contracting is an indefinite-delivery, indefinite-quantity method used primarily for repair, renovation, and maintenance work. A unit-price book establishes pre-negotiated costs for discrete tasks. Individual job orders are issued against a master contract, typically with a minimum and maximum annual value. Arizona state agencies use JOC under A.R.S. § 34-606 for projects that do not exceed the per-job-order threshold established by statute.

The permitting and inspection framework applies uniformly across delivery methods: all methods require a building permit issued by the applicable Arizona Department of Fire, Building and Life Safety (DFBLS) jurisdiction or municipal authority having jurisdiction (AHJ), inspections at prescribed phases, and a certificate of occupancy before occupancy. Permitting concepts are detailed at Permitting and Inspection Concepts for Arizona Construction.

Common scenarios

• A state university constructing a new academic building exceeding $1 million in cost will typically evaluate DBB, CMAR, or DB under Title 34 criteria, documenting the procurement basis in a written justification.
• A private developer building a 120,000-square-foot industrial shell in the Phoenix metro area is not bound by Title 34 and may use any delivery structure, but the Arizona Registrar of Contractors requires the general contractor to hold an active license regardless of method.
• A municipal water authority executing 15 small pump station upgrades annually may use JOC to avoid repetitive competitive bid cycles, capping individual task orders under the statutory threshold.
• A hospital expansion requiring phased occupancy of occupied wings often uses CMAR because the contractor's early involvement enables detailed phasing and infection control planning coordinated with the design team.

Safety obligations do not vary by delivery method. All worksites in Arizona fall under Arizona Division of Occupational Safety and Health (ADOSH) jurisdiction, which enforces safety standards equivalent to federal OSHA 29 CFR Part 1926 for construction. Detailed safety framing is covered at Arizona OSHA and Worksite Safety Standards.

Decision boundaries

The table below maps the primary differentiating factors across the four methods:

The decision to use an alternative delivery method in public construction requires formal documentation under Arizona procurement rules. Private owners making delivery method decisions should evaluate Arizona Construction Contracts Fundamentals and the bonding requirements applicable to each structure, covered at Arizona Construction Bonding Requirements.

Design-Build compresses schedule most aggressively but concentrates risk in the design-builder entity. CMAR preserves owner control over design while improving constructability and cost certainty before the GMP is established. DBB distributes risk most broadly but produces the longest sequential timeline from design completion to construction start. JOC is only appropriate for repetitive, task-based scopes — it is not suited for complex new construction.

Understanding how the delivery structure intersects with Arizona's licensing, lien, and labor frameworks requires grounding in the broader regulatory environment. The Regulatory Context for Arizona Construction resource addresses the statutory and agency landscape, and the How Arizona Construction Works: Conceptual Overview page provides orientation for readers new to Arizona construction structure. An index of all topic areas covered on this domain is available at the site index.

References

• Arizona Revised Statutes Title 34 – Public Buildings and Improvements
• Arizona Registrar of Contractors (ROC)
• Arizona Department of Administration – Procurement
• Arizona Department of Fire, Building and Life Safety (DFBLS)
• Arizona Division of Occupational Safety and Health (ADOSH)
• Federal Acquisition Regulation (FAR) – GSA
• Arizona Revised Statutes § 34-603 (Design-Build)
• Arizona Revised Statutes § 34-604 (Construction Manager at Risk)
• Arizona Revised Statutes § 34-606 (Job Order Contracting)