Rod Collman, President, sdg Architecture It is important to build the best team possible for any commercial construction project, especially projects being built with public money. There are a variety of ways a project can be delivered. What is the best approach to establishing the levels of cohesiveness and efficiency desired in order to make the entire experience the most cost effective and trouble free for the owner and the stakeholders?
During my fifty plus years in architecture, I have learned the benefits of working with a single team of people who, together, are better than the sum of their parts. When the design team (architect and engineering) and the build team (contractor and sub-contractors) come together under one project contract, the method of project management and delivery is called Design-Build. A cohesive effort on the part of such a team benefits the customer in a number of ways, not the least of which is having a single entity and one contract to manage. The results of this method of delivery are illustrated in the accompanying visuals.
During my fifty plus years in architecture, I have learned the benefits of working with a single team of people who, together, are better than the sum of their parts. When the design team (architect and engineering) and the build team (contractor and sub-contractors) come together under one project contract, the method of project management and delivery is called Design-Build. A cohesive effort on the part of such a team benefits the customer in a number of ways, not the least of which is having a single entity and one contract to manage. The results of this method of delivery are illustrated in the accompanying visuals.
There are three fundamental methods of Project Delivery. The most common is Design-Bid-Build in which a design firm is hired who hires sub-consultants and upon completion of plans, a bid goes out for a construction contractor who then appropriates sub-contractors. While such projects often go well, they can leave the owner with issues during project delivery by having at least two separate contracts to manage, and having to manage cost overruns, changes and conflicts among the designers, constructors and sub-contractors. Design-Bid-Build has dropped significantly in the past decade from over 70% of the commercial construction market to 50%.
The Construction Manager @ Risk (CM-@ risk) delivery method accounts for less than 10% of the commercial construction market. It calls for the hiring of a Construction Manager who acts as a consultant from design through the construction process. The CM bids the entire project and must control construction costs to not exceed the Guaranteed Maximum Price (GMP) as the overages are the CM’s financial responsibility.
Design-Build has risen to over 40% of the commercial construction market in the past decade and continues to grow in popularity. Why? It builds a cohesive team. It avoids the negatives of working with a delivery method that is split between separate entities and separate contracts. Design-Build provides a single entity and a single contract, blending the roles of designer and constructor, creating a unified flow of work throughout the entire project, saving money and making owners happy.
(Graphs courtesy of Design-Build Institute of America)
(Graphs courtesy of Design-Build Institute of America)
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