What is Design & Build Projects

Design-Build is a method of project delivery in which one entity – the design-build team – works under a single contract with the project owner to provide design and construction services. One entity, one contract, one unified flow of work from initial concept through completion – thereby re-integrating the roles of designer and constructor. Design-build is an alternative to the traditional design-bid-build project delivery method. Under the latter approach, design and construction services are split into separate entities, separate contracts, separate work. Across the country and around the world, design-build successfully delivers both horizontal and vertical construction projects with superior results – no matter what the project type.

 

Streamlining project delivery through a single contract between the owner and the design-build team transforms the relationship between designers and builders into an alliance, which fosters collaboration and teamwork. United from the outset of every project, an integrated team readily works to successfully complete a project faster, more cost effectively and with fewer change orders.

  • Owner contracts with D-B Contractor to design and construct a project.
  • Owner’s Statement of Requirements/Performance Specification/Output Specification can be prepared by Owner, Owner's Consultant or D-B Contractor.
  • Owner or Owner's Consultant administers contract • D-B Contractor is responsible for:
  • Design, preparation of detailed technical specifications and drawings, procurement, construction, testing, commissioning.
  • Meeting Owner’s Requirements .

 Design-Build Relationship

Risk tolerance of design-builder dependent on risk tolerance of:

  • Design consultants
  • Subcontractors 
  • Equipment supplier
  • Design-build contract must recognize existence of contractual flow-down of risks and liabilities
  • Impacts contingencies and contract price
  • Impacts decision to submit a proposal

Advantages of Design-Build

  • Single point responsibility
  • Opportunity for innovation and faster project delivery
  • Efficiency (design & construction expertise together)
  • “Fitness for purpose” through performance specification 
  •  No real alternative for proprietary technology 
  • Contractor bears risk of integrating design and performance of all packages
  • Streamlined contractor/consultant interface 
  • Fewer changes
  • Implementation of changes often simplified 
  • Often a reduction of claims (or number of claims) 
  • Increased flexibility to address changed conditions 
  • Reduced administrative burden for Owner 
  • Improved risk management for Owner 
  • Cost savings and more certainty of final price 
  • Greater ability to evaluate contractors on factors other than cost
  • Contractor has incentive to provide minimum compliant standard to decrease cost

Disadvantages of Design-Build

  • Loss of control and reduced Owner involvement in design 
  • Cost of procurement process (to all parties) 
  • Difficulty/time comparing different designs 
  • Cost of risks and contingencies can result in substantial risk premium
  • Danger of Design-Build becoming Build-Design 
  • Environmental/regulatory processes
  • Contractor has incentive to provide minimum compliant standard to decrease cost

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