DESIGN-BUILD VS DESIGN-BID-BUILD
It is one thing to decide that you’d like to start a construction project. However, it is another thing to decide what approach to take to get your vision actualized. This article tackles the two approaches to project delivery: design-build delivery method and design-bid-build delivery method. Each method has its peculiarities, quirks and perks, and these would be explored in detail.
Design-Build Approach
Here, one entity, the design-builder manages the entire construction project. This means that this single entity provides all the designs as well as engineering, implementation services, and in some cases, handles the financing of the project. This entity handles everything from start to finish as well as everything in between. There is a lot of cooperation between engineers, architects, estimators and construction disciplines.
This method can be described as a one-stop method where all responsibilities for the construction project are left to the care of the design-builder by the client. Design-build method contributes about 44% to construction expenses and is becoming more and more popular.
Advantages Of Design-Build Approach
Speedier Timeline
This approach is really favorable to the developer especially, as it is very efficient considering the development timeline which provides for early occupancy and thus affords the developer the opportunity to earn really early.
2. Regulated Budget
This approach eliminates the springing up of cost-related surprises, as the project costs are adequately prepared from the beginning. Also, because the team players involved are involved early on in the project, it enhances collaboration, pointing out challenges, passing ideas, etc.
3. Collaboration
The nature of this project requires collaboration at the initial stages of the project and this strengthens the overall delivery of the project. This ensures properly thought-out decision-making thoughtout the project timeline.
4. Effective Communication
This method ensures that the right information is passed and received properly and on time.
5. Contained Risks
The risks encountered in this approach are much more reduced than the other. Because designs are tailored to the owner's needs, there is no occasion for disagreements among owners, architects and contractors. The owner also does not need to mediate the design transfer from designer to builder.
Disadvantages Of Design-Build Approach
No Competition
Unlike the other approach where there are many bidders for a particular project, there is no competition among bidders in this approach. Thus, the owner may not get the choice of selecting most competitive price.
2.Too Much Responsibility
Placing all the responsibilities and decisions on the shoulders of a single entity could be risky. This makes clients have cold feet with using this approach.
3. Little Creativity
The project is accomplished with more speed using this approach, and this clamps down on creativity and flexibility. The result of this approach is a one-size-fits-all solution.
Design-Bid-Build
Designed mostly for those concerned with price efficiency, this approach is the most traditional method of delivering projects and mostly utilized by public and local entities as authorized by state statutes. It is also sometimes referred to as "hard-bid" and could be adopted by private entities strictly concerned with low-cost bids
The way this approach goes is that an owner contracts independent designers separate from builders. So, the designers deliver a complete design document of what the owner wants. The owner then publicly solicits for bids from builders to choose the lowest bidder for the documented design of the project.
Advantages Of Design-Bid-Build
Competition
Because there are many options to choose from, this approach offers much competition among the bidders, especially in the aspect of price since everyone wants to get the project.
2. More Owner Involvement
Where there is minimal involvement and control of the owner in the Design-Build approach, the Design-Bid-Build approach gives the owner more authority, especially since he gets to choose his vendors at each step of both design and construction. He could also make changes to the lineup he has chosen at any time.
3. Acute Definition of Roles
Because the roles are not merged as in the other approach, but clear-cut, it gives precise definition to each person's roles, as well as the responsibilities and liabilities that accrue to each person.
4. Greater involvement of architect
Since the design phase doesn't require any bidding, the owner hires an architect to design just exactly what is needed, and this often guarantees the highest quality. Also, the architect is very much involved in the construction phase to ensure the design is properly accomplished on site.
Disadvantages Of Design-Bid-Build
Low Scope for Changes
The bidders will only bid for just what the design reflects, and any changes or variations in the course of the project delivery often results in serious complications and finger-pointing which stalls the project.
2. Longer Timeline
The bidding phase added in this approach makes the time for the project completion to be longer. There could also be more project delays with change orders, redesigns and lack of proper communication among team players.
3. Lack Of Integration
The nature of this approach mostly favors an independent working style among team players. This means there is less integration and everyone works to protect their own interests. In the long run, this could cause frictions and mistakes.
4. Late Budget Definition
In the Design-Bid approach, the owner is able to plan for the entire cost of the project since the single entity he hires for the project delivery states their budget from the beginning.
However, in this approach, the owner has to make payment for the design phase separately and then wait till after looking through the bidders, to know what the actual construction will cost. And sometimes, in the course of the project delivery, there are redesigns, rebiddings, etc, which entails extra costs.
Design-Build Vs Design-Bid-Build: Which Approach Is Better?
Actually, deciding which approach is better is subjective and dependent on what the owner wants out of the project.
The major difference between Design-Build and Design-Bid-Build is the relationship and responsibility of the construction team. Where the Design-Build approach entails one entity responsible for both design and construction, the Design-Bid-Build approach contracts a design team different from a building team.
Whatever approach you choose lies on you and how you want your project delivered.
To help you make your choice, our team of professionals at JPC Design Consortium are available to guide you further on the pros and cons of either approach. Let's help you get started on your project! Our services also cover your actual project delivery requirements. Contact us right away.