Why Design-Build Contracts Exist And Their Purpose For Builder’s Accountability

Design-build is a contracting method widely used around the world. This contract combines design and construction, often called project delivery, under a single agreement. 

The Design-Build approach is simple. There is no ‘I’ in a team. The Design-Build approach is not meant to be just for one person. It is a group of teammates participating in achieving the same goal. It doesn’t matter how great a superstar you are, you cannot win the championship game without your teammates. 

The same applies to the Design-Build. You will find it difficult to complete any quality project on time or within budget without your team.
 
Design-build helps save time over other contracting methods. This helps prevent situations where the owner is caught between the designer and the builder in contract disputes. 

When should Design-Build Contracts be used?
   
Design-build is applicable when there is an opportunity for the owner or agency to save time by having construction begin before the final design has been completed. 

By contrast, in the traditional system of design-bid-build, the owner contacts the designer and the builder separately, and the design must be completed before the owner puts a call for construction bids.

By bringing both aspects of project delivery under a single agreement, design-build can save time and in some cases, money for the owner. 

Design-build is best suited for commercial projects that need to fast track projects, so that return on investment can be capitalized sooner. 

Characteristics of a Design-Build Contract 
  
Design-build contracts are simply made up of only one contract. There are other types of standard construction contracts which include at least two contracts. 

Design-build is best described as “single-source” or “sole-source” contracting. If there is a problem or change with either the design or the construction, the owner works with a single source, mostly the contractor for resolution or approval. 

Variations of the Design-Build Concept 

Here are several variations on the standard design-build contract:

Bridging: The owner develops a preliminary project design at a level of 30% to 50%. 

Turnkey: The owner requires outside expertise and then allows the entity to turn over the keys at project completion.

Design-Build-Warranty (D-B-W): Combines a warranty provision with design-build.

Design-Build-Maintain (D-B-M): Combines maintenance provisions with design-build.

Privatization: Private entity designs, builds, and maintains a section of roadway in turn for a toll or fee.

Advantages of Design-Build Contracts: 

Design-build contracting offers several potential benefits:

• Reduced design time
• Simple construction drawings
• Leave value engineering alternatives open for discussion and analysis throughout the project
• Short construction calendar
• Limited communication channels to a single point of contact
• Minimised change orders
• Fast-track schedules
• Customised designs to actual site conditions more easily
• Identifies long lead items earlier 

Builder’s Accountability 
  
One entity, the design-builder, is accountable for the entire project, including the quality of the design, how the result looks, the total costs, and how quickly the construction can be completed. 

When the same group that designs the project also builds the project, there is much more attention given to the details, including designing to the target budget, frequent estimate updates, and design constructibility reviews. 

The costs of all aspects of the project are taken into account early on in the process. This includes all design fees, estimated construction costs and market condition forecasts. As the design gets updated and revised, the design-builder will update and revise the cost estimate in real time. 

This allows for frequent evaluation by the owner to pursue additional scope or rethink a current solution. All the data is transparent and shared with the owner by the design-builder at all steps along the way. 

It is not unusual to hear about situations with design-bid-build or construction manager at risk where the cost of the project is more than the designer said it would be. Another example is when the construction manager isn’t involved during the design. 

This leads to missing the target budget. This results in intense stress during the project which can cause financial burden or a delayed schedule. A situation such as this is unacceptable in the design-build world. Design-build mainly focuses on results and owner satisfaction. 

Final Word   

The Design-Build approach is based on brainstorming, collaboration, trust, mutual respect, and shared leadership. Every project will require time, effort and an eye for detail. 
Design-Build Contracts help make it easier for the owners to have a steady focus on the projects with expert collaboration.
 
If you are unsure of how to go on with your building projects, don’t worry! Soleil Building Construction LLC is an expert building construction company in dubai. They have a creative and accountable approach for all unique projects. So, you know you are in good hands.