Design/Build

This method has also traditionally been used in the private marketplace and is not yet accepted in the public sector. The impetus for selecting an entity “in-charge” is to provide the Owner with a sole source team leader who can provide the necessary coordination, communication, motivation, scheduling, and team management to meet the project goals in a timely manner.

In this scenario, the owner hires a Design/Builder, usually based on qualifications established solely by the Owner. One approach is for the Owner to have a Design/Build contract with the design Architect to not only provide the design services, but also to have him assemble a complete team to build the project as well. A second alternative gives the leadership role to the General Contractor, thereby allowing the designer to focus on that portion of the project for which he is professionally trained.  With the second scenario, the General Contractor hires the design disciplines that he feels are necessary to provide a complete D/B team. In many instances, the mechanical and electrical systems for a project can most effectively be designed and constructed utilizing the trade subcontractors who are recommended by the CM. These two trades are very accustomed to providing both design and construction services directly to the builder. The builder assumes the leadership role as, in the end, the builder has the most at risk as related to time, costs, and overall exposure to liability.

With this project delivery method, a “team” is set up very early in the design process, which includes the Owner and the Design/Builder’s team. The traditional design phases of concept, schematic, design development, and construction documents are followed however, the Design/Builder has the responsibility of developing all estimates. The D/B also has the added responsibility of offering input to the Owner for alternatives to achieve the design intent and to maintain the construction budget. All team members participate in the decision making process as the design evolves and all parties are expected to communicate their ideas, concerns, etc. openly and freely to the betterment of the project.

During the final pricing at the construction documents stage, the D/B is responsible for soliciting multiple/competitive quotes from suppliers, venders, and subcontractors and usually selects companies that he has pre-qualified to provide the necessary scopes of work, rather than simply opening it up to all. This helps to assure that the entire construction team will work well together. All of the prices are tabulated and the D/B makes recommendations, on which subs are best qualified to the other members of the project team.

Once the construction team is assembled and a final price put together, the construction process begins. Usually with this project delivery, the builder uses the Architect on an as-needed basis.

The Owner has a single contract with the Design/Builder for a “turnkey” project.  This is usually established by a two-part contract with the Owner and Design/Builder: 1) for pre-construction services and 2) for the actual construction.

Pros to this method of project delivery:

• The Owner has a single point of responsibility for the entire project delivery system from initial design, through to occupancy.

• The design process is generally shorter. The design is generally more directed as all parties are offering input, and the level of detail required to document the design intent is generally less because the D/B is participating during the design evolution. Further, the D/B has the responsibly for soliciting competitive pricing by assembling and administering a “bidding” process.

• The designer’s (including consultants) portion of the project budget is less costly than the design – bid – build method because of the reduced level of services and responsibilities required. In addition, on many projects D/B subcontractors at a much-reduced cost for the design can design the mechanical and electrical trades.

• The team members “buy-in” to the decisions as they are made.

• It is a non-adversarial arrangement

• The design intent is communicated through the documents and by the D/B – they are the basis of soliciting pricing however the D/B plays a larger role in the selection of who gets invited to quote and whom he feels are the best “team players.”

• In many instances, the construction cost is established, a construction contract put in place, and the construction started, prior to the completion of all of the construction documents. This speeds up the project delivery timeframe.

• The party who is directly responsible for the construction portion of the project establishes the expected cost for construction early in the process. This generally provides reassurance to the entire project team that one of the major project goals is being monitored and met as the design evolves.

• Usually the form of contract for the construction phase is based on the costs of the work plus a negotiated flat fee. Financial incentives for both the owner and/or the D/B are also usually discussed and negotiated and might include early completion and actual costs vs. estimated costs. These incentives are usually structured in such a way to encourage the D/B to continue to find the best value for the Owner during the construction phase.

• Because the D/B has participated during the design phases and the design is also his responsibility, usually there are far less Change Orders. The D/B has a clearer understanding of the project goals and objectives and a level of responsibility to assure that they are met.

Cons to this method of project delivery:

• Owner needs to decide on the Design/Builder first based on criteria he establishes including experience, reputation, references, etc.

• The Owner and the Design/Builder need to be in full agreement that this project delivery method is appropriate for the project type, size, and overall project goals.

• Certain government agencies will not allow this type of project delivery.

• The designers all work directly for and through the builder, making them somewhat less accessible to the Owner.

• This method may exclude some designers, engineers, suppliers, subcontractor, and venders who might otherwise provide quotes, based on the CM’s selection process.

General Contractor - Construction Manager - Design Builder

3025 North Belfast Avenue, PO Box 27, Augusta, Maine 04332-0027

(207) 621-8505        Fax: (207) 621-8508