"It's unwise to pay too much...
But it's worse to pay too little.
When you pay too much, you lose a little money... that is all.
When you pay too little, you sometimes lose everything, because
the thing you bought was incapable of doing the thing it was bought to do.
The common law of business balance prohibits paying
a little and getting a lot... it can't be done.
If you deal with the lowest bidder,
it is well to add something for the risk you run.
And if you do that, you will have enough to pay for something better."
- JOHN RUSKIN
1819-1900 - Famous English Writer
The Design/Builder participates in the conception of the project. He has preliminary designs, working drawings and specifications prepared, then builds the home - all under a "single-source" responsibility contract.
As the Design/Builder learns about the owner's expectations and requirements with regard to size, function, quality, timing and cost, he develops a building program that includes a Guaranteed Maximum cost. All these expectations and requirements are interrelated. Function affects quality, for example. A cost decision involving choice of materials can affect the completion date. An integral feature of the design-build method is that all of these important factors are continually balanced during the development of the program, preparation of the working plans and specs and even during the actual construction. Value/Cost/Time studies are run constantly during the planning stage, thus developing a practical solution consistent with project goals for function, quality, time and costs. In the conceptual and development phase, the Design/Builder conducts feasibility studies.
During the initial design consultation it is essential there be good communication and understanding, for these preliminary plans and definitions set the tone for the working drawings and establish the scope of work that is the basis for the Guaranteed Maximum costs. Owners must insist on as much detail as they require to feel that their wishes and needs are satisfied. By setting these parameters, the owner's expectations are understood and easier to achieve by the Design/builder.
During preparation of working plans and specifications, costs are continuously monitored to make certain the Guaranteed Maximum will not be exceeded. "Long-lead" materials and equipment that may affect schedules are identified.
Ambiguities, misunderstandings and confusion during construction buyouts and execution are eliminated via fully descriptive drawings and contract documents outlining the level of detail acceptable to all parties. The owner is made privy to the trade partnerbidding process on a full-disclosure basis.
Design/Build should be considered a "one stop shopping" alternative that is ideal from the owner's standpoint. The Owner gets to deal with a single, responsible entity, has maximum freedom in selecting an architectural concept, is assured of quality commensurate with their intentions and proceeds with the comforts of cost and schedule guarantees.
The benefits of a well-designed and managed Design/Build program:
Singular Responsibility
With both design and construction in the hands of a single entity, there is a single point of responsibility for quality, cost and schedule adherence. The Design/Builder is motivated to deliver a successful project by fulfilling multiple parallel objectives including aesthetic and functional quality, budget and schedule for timely completion. With Classic Builders, the owner is able to focus on materials/equipment selections and timely decision-making, rather than worry about coordination between an architect and builder.
Quality
The singular responsibility inherent in design-build serves as a motivation for quality and proper project performance. The Design/Builder warrants to the Owner that it will produce design documents that are complete and free from error. By contrast, with "traditional" design/bid/build, the Owner warrants to the contractor that the drawings and specifications are complete and free from error. Because it is the Owner's warranty for the design documents under design/bid/build, the traditional approach relies on restrictive contract language, audit and inspection and occasionally, the legal system to ensure final project quality.
Cost Savings
The Design/Builder evaluates alternative materials and methods efficiently and accurately. Value engineering and constructability are utilized continuously and more effectively when the designers and contractors work as one team during the entire design process. Architectural fees are lower due to streamlining of the design process and early involvement of the Design/Builder.
Time Savings
Because design and construction are the responsibility of a single entity, and because bidding periods and redesign are eliminated, total design and construction time can be significantly reduced. Design/Build is ideal for the application of "Fast Track" construction techniques. With Design/Build, materials and equipment procurement and construction work can begin before the construction documents are fully completed. The resulting time savings translates into lower costs and earlier completion of the home.
Early Knowledge of Firm Costs
Guaranteed construction costs are known far earlier than in other delivery systems. The Design/Builder is simultaneously estimating construction costs and can accurately conceptualize the completed project. Staged contracting for Design/Build services affords the Owner one or more "go/no-go" decision points during design. The decision to proceed with the project is made before substantial design expenditure and with firm knowledge of the final cost.
Improved Risk Management
Performance aspects of cost, schedule and quality are clearly defined and responsibilities/risks are appropriately balanced. Change orders due to "errors and omissions" are eliminated, because the Design/Builder has responsibility for developing drawings and specifications as well as constructing a well-built custom home.