WHAT ARE THE BENEFITS OF DESIGN/BUILD?

A Different Way of Thinking

Design/build is a project delivery system where, in contrast to the typical design-bid-build process, the general contractor is involved from the very beginning and can either be paired up with an architect by the owner or choose it themselves. This is similar to negotiated work, but on a more involved scale.

While many owners are nervous about removing the bid factor, there is a learning process going on within the industry. Competitive bidding is not necessarily the best way to generate the best value or even the lowest cost. In a Design/Build situation the contractor and designer are often in a position to save the owner money, not cost him, by identifying changes and cost saving opportunities before the project begins. Even government agencies are beginning to change policies requiring low bids to give them a Design/Build option.

There is a medley of project delivery systems used by owners today in addition to the traditional method of competitive bidding. No one method is best for every project, however, one approach is gaining momentum across the country – Design/Build.

The percentage of Design/Build projects is on the rise. In fact, Engineering News Record recently reported that by the year 2015, 55 percent of developments are projected to be Design/Build, while 35 percent will be design-bid-build. This statistic is not surprising. Many owners are realizing the advantages of Design/Build, including:

  1. Cost Savings

  2. Quicker Delivery Times

  3. Improved Risk Management

  4. Higher Quality Results

  5. Single Source Responsibility

1) Cost Savings

We can design to the price, not price to the design =Cost Savings

Instead of the architect designing a building first, and then the contractor coming in later, the two entities are working as one from the inception of the project. Specifications can be discussed and strategized as a team in an effort to complement the budget and stay within the monetary guidelines.

Early Knowledge of Construction Costs:

Construction costs are known far earlier than in other delivery systems.  The entity responsible for design is simultaneously estimating construction costs and can accurately conceptualize the completed project.  Staged contracting for design-build services affords the owner one or more "go, no-go" decision points during design.  The decision to proceed with the project is made before substantial design expenditure and with knowledge of final project cost. The whole process can also be much more “open book” than traditional methods so the owner can know exactly how much value they are getting.

2) Quicker Delivery Times= Higher ROI

The client saves time and trouble by dealing with a single source for all matters instead of separately with a contractor, an architect, an engineer, and subcontractors. Bidding periods and redesign time are eliminated. Overall time to design and build the project is substantially reduced because design and construction activities overlap. The contractor can proceed with early procurement of critical materials, schedule labor and subcontractors for greater effectiveness. This means the project can be on schedule sooner.


If necessary to meet client's deadlines, Design/Build lends itself readily to "Fast Tracking", where construction begins while detail drawings are still in process. The project can be completed in less time because work can begin before all the elements of the design are complete. For example the foundation can be completed to beat the frost, while the selection of windows and doors and how they will be detailed has yet to be completed. This fast tracking can reduce the owner's interim financing costs and will permit the owner to occupy the project at an earlier date.

3) Improved Risk Management

Performance aspects of cost, schedule and quality are clearly defined and responsibilities / risks are appropriately balanced (individual risks are managed by the party best positioned to manage that risk).  Change orders due to "errors and omissions" are virtually eliminated, because the design-builder had responsibility for developing drawings and specifications as well as constructing a fully-functioning facility.

Nobody likes change orders. Because good communication is the catalyst in a Design/Build project, change orders are kept to a minimum. Additionally, it helps when the owner provides a detailed, prioritized list of criteria up front. Because the architect and contractor are working together from the inception of the project, they are able to avoid surprises mid-project.

4) Higher Quality

The singularized responsibility inherent in design-build serves as a motivation for quality and proper project performance. The owners requirements and expectations are documented in performance terms and it is the design-build entity's responsibility to produce results accordingly.  The design-builder warrants to the owner that it will produce design documents that are complete and free from error.  During the construction process this attention to quality does not end, as the designer becomes the master builder, and manages the construction of the project to completion.

5) Single Source Responsibility

Perhaps the most appealing and easy to recognize advantages Design/Build offers are the convenience and comfort of one-stop shopping. The client looks to a single entity to take full responsibility for design, construction and satisfactory completion, delivering the project on time and on budget. As a natural consequence there is less finger pointing because as ideas are generated, all team members make decisions with a cooperative approach. This means greater efficiency, cooperation instead of conflict, and a better project for the time and money invested. When this team approach works well, it fosters an enjoyable and mutually beneficial way of doing business for the client and the Design/Build team of professionals. As the design phase of the project moves forward, all parties get to know each other, working out and establishing the terms of the relationship. This establishes trust as well as a mutual respect for the realities of living through a project, long before the dust takes over, rather than trying to do so while the dust is created. These advantages are often removed or compromised if those involved, including the client, work separately of each other during the design stage.

 

Challenges of Design/Build

While Design/Build simplifies the process in many types of projects and saves valuable time, it can raise challenges for owner’s who are used to developing a project in the traditional manner of design-bid-build.

  • Developing High Level of Trust

    Owners must have a high level of trust in the team they select. While design and construction professionals have worked together for years, it is especially helpful with Design/Build projects for these two entities to have worked together previously as a team to help ensure the success of the project.

  • Change is difficult.

    Eliminating the traditional “bid” portion of the process is hard for many owners. However, if a project is cost-driven, the owner often sacrifices long-term quality for short-term cost issues.