Design-Build
Definition:
Design-Build is a method of project delivery in which one entity (design-builder) provides a
single contract with the owner to provide architectural/engineering design service and
construction services.
By contrast, with the “traditional” design-bid-build approach, the Owner engages an
architect or engineer to prepare drawings and specifications under a design contract,
and subsequently selects a construction contractor by competitive bidding (or
negotiation) to build the facility under a separate construction contract.
Risk:
In Design-Bid-Build contract the owner, (you) warrants to the Contractor that design
documents are free from error. In Design-Build, the opposite is true. The Design Builder
warrants to the owner that design documents are complete and free from error. This
eliminates finger pointing between the architect and the builder.
In a guaranteed lump sum contract, the design-builder assumes all of the risk to deliver
the project at the specified price. The only reason change orders may occur are for
changes in project scope, which arise from the owner, not from errors in the design
documents.
Pros and cons
Traditional – Design-Bid-Build Pros
• Process well understood by owners,
architects, and contractors
• Allows for competitive bidding among
both subcontractors and general
contractors
• Provides the lowest price for a given
“perfect” set of construction documents
Traditional – Design-Bid-Build Cons
• Allows no input from contractors during
the design phase (the only team member
that knows construction cost)
• May not provide the best "value" to the
owner
• Often bids come in over budget
• Change orders required for plan
deficiencies
• Takes more time for a thorough bidding
phase
• Difficult to identify long lead items which
can lead to scheduling delays
• Makes "fast track" construction difficult if
not impossible
• Can lead to an adversarial relationship
between the design team, the contractor,
and the owner. |
Design-Build Pros
• Design-builder is single source of
responsibility
• Owner can influence the design and cost
at an early stage
• Design team working together with builder
can provide most cost-effective solution
to any problems
• Takes less time from inception of project
through completion since bidding phase is
reduced and major design revisions are
made early rather than later
• Designer and builder are on same team
eliminating adversarial relationships
• "Fast track" construction is facilitated
• Allows for early and frequent input by
contractor regarding budget and cost
• Can identify long lead items early to avoid
scheduling delays
• Since over 80% is subcontracted, the
team receives competitive bids for all
subcontract/material items.
Design-Build Cons
• Does not guarantee lowest cost based
upon a given “perfect” set of construction
documents
• Perception by owner that there are no
“checks and balances”.
|
Summary:
Design-Build offers significant advantages over Design-Bid-Build…
Singular responsibility, cost savings, time savings and early knowledge of firm costs.
