Why choose design-build for commercial construction?

When starting a commercial construction project the first and perhaps most important choice you are faced with is whether to divide the work into separate design and build stages with different contractors for each, or to find an organization that is able to oversee the whole project, from initial idea to completed building.  

In the past, the standard procedure for commercial construction projects was to hire contractors separately.  This traditional method of delivery breaks up the project into independent design then build components. Project-owners found an architect to draw up blueprints and then hired builders to interpret those designs and turn them into reality.  The project-owner had to manage the transition from one stage to another.

However, in the twenty-first century there has been a definite trend is towards hiring one contractor for all stages of the project, a method is referred to as design-build or the ‘turnkey approach’.  This article examines the advantages for the project-owner of choosing this option.  

Transferring responsibility 

In the traditional approach the procurement of individual contractors may appear to give the project-owner more control, however, the range of work required in commercial construction can quickly become difficult for the client to manage.  The requesting and assessing of bids and the negotiating and awarding of contracts are not straightforward tasks. In commercial construction it is often not as simple as dividing the project between design and build. Multiple contracts are common.  For example, a contract with an architectural firm for the design may have to be supplemented by contracts for landscape architects, structural and mechanical engineers, interior designers, and so on.     

The primary advantage of a design-build contractor is that one contractor replaces many.  Moreover, much of the responsibility for managing the project is transferred from the client to the contractor.  Once the client has communicated what they need their commercial construction to achieve it is the job of the contractor to ensure it is achieved by organizing tasks from researching suitable development sites and dealing with zoning issues to monitoring the project schedule. This can lessen stress related to managing the project.  

Better collaboration 

It is helpful if architects are used to collaborating with the same engineers and builders.   In projects which use separate designers and builders it is possible that not only will each side have very different ideas for the project, but that the basic concept and initial premises they are working from could diverge significantly.  To make matters worse, it is very often the case that while these specialists may be experts in their field, they are not the most proficient communicators and on construction projects, bad communication is one of the main causes of delays .  

In contrast, with a design-build contractor it is much more likely that your project will begin with a unified vision and that the professionals working on it will have established channels of communication and be able to collaborate more effectively.  A design-build contractor allows you to work with a unified team who are familiar with each other. This should considerably reduce the chances conflicts different subcontractors and make it more likely you can develop a project that is cohesive and efficient.  

Reduced costs 

One of the attractions of the traditional method of procurement was the possibility of negotiating better value contracts.  However, it is worth bearing in mind that design-build contractors have a wealth of experience managing commercial construction contracts and, as they are dealing ‘in-house’, will be able to offer greater cost certainty.

A design-build contractor not only brings the benefit of improved communication within the organisation but will also bring enhanced collaboration with subcontractors.  When you hire a design-build contractor you are also hiring a single account manager. The advantages of having just a single point of contact running through the duration of the project from initial concept to completion are substantial. OMI Corp deals on the process of a single point of contract as well.  By streamlining the organisation of labor the general contractor can reduce costs and remove the source of much potential frustration for you. As well as being one point of contact for subcontractors the design-build company serves as a convenient point of contact for you.  A good company will prioritize communication with the client and keep you informed and up-to-date with the progression of the project.  

It is very likely that a large design-build contractor will have the best connections in the local area.  Not only does this mean they are best-placed to hire the most reputable subcontractors, but they are also able to negotiate the best rates for labor and materials.  This should help the project run smoothly and within its budget. OMI Experts is a great company for keeping projects budgets on track as well. Furthermore, having a team work together on the design and build of the project should also increase the potential for ‘value-engineering’ the project – cooperatively developing cost-effective design solutions and modifications.  

Reduced Delays

Lastly, there is a danger that the traditional approach may result in delays as for each stage of the process new contractors need to be hired and move their operations onto the project.  Working with a design-build contractor offers a better chance of your project moving seamlessly from one stage to the other resulting in an accelerated project schedule.  

Conclusion 

Traditional procurement methods are certainly still in use and remain a good fit for some projects.  Many project-owners consider these methods as they are concerned about the potential for a lack of transparency when the general contractor appoints subcontractors.   However, reputable design-build contractors will always look to keep the client informed and be open concerning who and why they award contracts to on your behalf.  

It is true that traditional procurement methods can often find lower construction costs through competitive bidding.  This may not always produce the best results, however, as repeatedly selecting bidders based on price rather than performance has been shown to be detrimental to the overall quality of the project.  Proponents of design-build contractors argue that this method produces higher quality projects with custom built designs.  

In the end which option is best for you might come down to your personality.  It may be that the most important factor is to have greater personal control over the project through the ability to negotiate individual contracts.    For others, greater peace of mind is achieved by passing over elements of control of the project to qualified professionals, limiting time-commitments to the project and working within a collaborative team structure.