Design-build streamlines construction process

“Design-build has been around forever,” said Ed Canning, general contractor with Masonry Structures Inc. “The concept isn’t new. Design-build is a buzzword that’s being tossed around more.” Canning said about 80 percent of his projects are design-build, compared to the better known low-bid projects.

“Low-bid began after World War II when there was a building boom,” Canning said. “That system still exists today, but the marketplace has driven other methods of construction. This construction management method of delivery developed out of the marketplace. In a nutshell, an owner goes to a contractor, who then hires a design team and puts the plans together. The contractor also brings in the electrical, plumbing, heating and cooling subs that have cost influence to demonstrate how they can make a project work in a cost-saving and timely manner.”

The owner has the convenience of working with a single source, the contractor. “The general contractor is no more than a manager, and that makes the project easier for the subcontractors,” Canning said.

Design-build projects are negotiated rather than bid, said Morris Dock, president of MoDoCo.

“Usually the owners will call a contractor and talk about their project. The owner negotiates a general budget with a contractor to hire a design team. The owner has a lot more say in the long run. You may also pay more in the long run, but you get what you pay for,” Dock said.

Dock said design-build gives the building owner more options as he plans his project. “Low bid is low bid, but with design-build the owner has options,” he said. “With a regular project, the owner will hire an architect and go through the design, wish list, wants and needs, and then put that project out for bid. The architect would contact several general contractors to bid, and the low bidder gets the project. The problem with low bidder in so many cases is so many will bid low and miss some important area, or some undesirables could enter the picture. If you do take the low bid, if the project has problems, there’s finger pointing and it becomes a battle and the contractor and architect are at odds. It could be a controversial situation.”

In design-build, there’s little room for conflict because the owner has one contract.

“He turns to one person to design-build, and that person has to take care of the situation. No blaming someone else,” Dock said.

“The architect or the contractor can take the lead and resolve the issue. If there’s conflict, it’s easier if one person is responsible. I used to turn down design-build projects because I felt there was a conflict of interest, but in the last couple of years I’ve definitely changed my mind,” said Dock, who is currently working on four design-build projects.

“(Design-build) allows you the ability to use quality subs and not be strapped by having to compete against another contractor,” he said.

Dock strives to make the project as inexpensive as possible for the owner while retaining quality. As the project is being planned, design-builders can show the owner all the options he might need so the owner can pick and choose what he wants in his building.

“During the design phase, you want to mention all options to the owner even though it may be over budget. That gives him an option to accept or reject any option,” Dock said.

The design-build concept is more common on commercial projects. Since building a facility is a major investment for a business, it’s important that the project be done correctly, Canning said. Having the subcontractors involved before building begins enables the subs to be a part of the team during the design phase, giving their input on budgets and timing.

A design-build project can be planned years in advance, Canning said. “In our case it may be four to five years in front of a project. Planning, budgeting and feasibility are things we can work on years in front of a project. You can do basic building budgeting without a design.”

Working ahead, the builders determine what the customer’s needs are, how many employees the customer has, the equipment that will be on-site and where the doors and windows will be. Then a cost estimate within 20 percent of the final cost can be determined.

“When you start committing to paper, the estimate gets more accurate,” Canning said.

A design-build project determines the cost faster and delivers the product sooner, Canning said. “We do the preliminary drawings to make sure we’re all talking about the same thing so the owner knows the cost before they ever spend a dime.”

Canning said that design-build has advantages over a low-bid project, where all the decisions are made before any work is done. “Very few people can conceive that in their minds and know ‘that’s what we want.’ With design-build, changes can be made much quicker and at less cost,” he added.

It requires a different thought process to be a design-build contractor, Canning said. “Only about 20 percent of contractors have the expertise to do design-build. That’s because it’s an exceptional thought process and it requires experience in dealing with the design team. It’s one thing to stack up bricks and mortar, but it’s another thing to complete a project in an artistic and functional pattern. It’s the thought process that makes it happen. We start at the end of a project. We hand the owner the keys and work backwards. In our thought process, we start at the end and work backwards … to determine what facilities must be provided to fulfill the owner’s functions,” he added.

Communication is the major component, Canning said. It can be difficult to verify cost in design-build, so it’s important to establish a team that can communicate well.

“We have to be client-oriented and not bricks-and-mortar oriented,” he said. “It’s more important to be concerned about how something functions than about how it looks. Many clients know what they specifically want out of a structure,” he said. It’s up to the contractor to deliver.