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Economic Advantages Of The Design-Build Method Versus The
Design, Bid & Build Method
The Old Way: The
design, bid & build method:
Design drawings & specifications are more expensive.
During the bidding process, if a contractor seriously wishes to receive
a construction contract, the contractor must use the least qualified subs,
staff the project economically :) and, of most importance, include in the
bid price only what is specified in ink. Errors and omissions in plans
and specifications must be completely ignored and submitted later as cost
overrun "change orders".
This typically drives the project cost higher than a low bid price.
And who does the owner hold accountable? The architect for errors and omissions
or the contractor for not "seeing" plan deficiencies? Either
way, the owner pays for the change orders.
Modern Contracting: The design build method:
The design-build process allows for full execution of the "team
concept". The owner and the design-build contractor work closely together
to determine the scope of the project. Although this is similar to working
with an architect first and then bidding, all similarities end quickly.
The design-build contractor works closely with key sub-contractors from
conceptual design throughout completion of the construction drawings and
specifications. Plans and specs are reviewed in detail with the key trades
to determine actual costs. Continuous review of real world costs by the
owner and design-build contractor assures a project design that remains
within budget.
Because the design-build contractor has to build what he designed and
priced, and the sub-contractors have been involved in the project from
the beginning, change orders and cost overruns are reduced considerably.
Let's face it, the bid process only allows for a point or two difference
in pricing between contractors, whereas in the design-build method, by
considering the construction process during design , (methods generally
unknown to architects), savings of substantial value can be realized.
Finally, because the design-build method provides
for "Single Source Accountability", the owner and the design-build
team achieve the best project at the lowest possible cost.
Next...
Matteson-Hudson Construction Company
2821 Erica Place
Nashville, TN 37204
(615)292-5567 ext. 27, Fax:(615)383-5325
Email: info@m-hc.com
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