By Rob Fanjoy
In the commercial sector, design/build has long been the project delivery method of choice. Builders and building owners alike have enjoyed the time and money-saving benefits of forging a single contract for architectural/engineering, design and construction services. Now residential contractors have been getting into the design/build game and again, both builder and client are increasingly pleased with the results.
With the traditional design-bid-build approach, a client commissions an architect to prepare drawings and then selects a builder through a competitive bidding process. With the design/build model (sometimes referred to as design/construct or single-source responsibility), there is a single point of responsibility for design and construction, as well as quality, cost and schedule adherence. This creates efficiencies for the builder by not having to coordinate schedules with an outside architect, and it gives homeowners a single party to whom they can turn with questions and problems.
"The traditional bid process is often a very reactive one," says Joseph Dellanno, president of My Design/Build Coach Inc. in Boston. "This can often be limiting to contractor and homeowner alike. The design/build approach is very proactive, and it provides one-stop shopping for the client. It gives them one person to hold accountable and responsible for their home’s construction."
You collect the design fee
For contractors, the benefits of changing from the traditional business model to design/build are very real. First, it addresses the expensive and common problem of working up bids for projects that eventually go to another builder. According to Joseph, many design/build firms have prospective clients commit up front to construction, which is the main profit center for most contractors. This way, architectural fees are in the form of construction documents, with payments broken up into segments to cover such things as architectural, engineering and interior-design selections. If the client pulls out for any reason, the designer/builder receives some compensation for what work was done, and the drawings stay with the company.
Secondly, builders are able to keep better control over change orders and expenses during the entire process. Since the builder is involved from the beginning of the design process, value engineering measures and realistic cost estimates can be incorporated right from the start. This prevents costly changes down the road. And constant feedback from the job site during construction can help the designer/builder stay on top of cost and quality control.
Design/build also lends itself to "fast-tracking," where construction begins while detail drawings are still in process. Joseph says this can especially help with such things as getting a foundation poured before the frost hits, while other product selections have yet to be finalized. "It also prevents the typical problem of a client walking into a builder’s office with a set of plans and saying, ‘I need you to start on this next week.’ It allows for plenty of time to line up your trades, which is especially important with the ever-present labor shortage," he says.
Joseph offers some other items of advice for anyone considering jumping into the design/build pool:
- Don't try to wear all the hats. It’s very important to delegate to those with expertise in particular parts of the project.
- Develop contracts that include some level of compensation if the project is not built, either by getting clients to commit up front to construction or by charging a fair price for architectural services and drawings as a first installment, payable whether construction begins or not.
- Dress like a designer and not a contractor–at least when meeting potential clients for the first time. It presents the right image and helps ease their minds.
- Before hiring a staff architect right away, think about partnering with a local architect or one you have a good business relationship with to get a feel for the process.
- Make sure all your business systems have been fully integrated to design/build before you make the switch in operations. Cost-tracking, billing, budgeting, forecasting, marketing and other regular functions. will all have to be handled differently.
- Talk to others in the design/build area for advice, and refer to professional and trade associations such as the National Association of Home Builders (www.nahb.org), Design/Build Institute of America (www.dbia.org), and the National Association of the Remodeling Industry (www.nari.org) for further advice.
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