Design-Build Firms VS Independent Architects & Contractors
Hi BP community!
I have a plot of land that I am looking to do my first build (to sell). I just read through J's Diary of a New Construction Project, and am currently trying to figure out whether to begin the process with a Design-Build firm or to work with separate firms for whole process (architect & separate contractors for different respective jobs).
From an initial standpoint, it seems to me that one of the benefits of the Design-Build firm would be a reduction in project management logistics & coordination, which would hopefully also lead to somewhat of a reduction in the unexpected costs that seem to occur due to miscommunication while coordinating various separate contractors. However I could also see Design-Build firms costing more due to their convenience, and because you'd miss out on the opportunity of getting multiple bids for every step of the journey. Maybe the antidote to that is to get multiple Design-Build firms to bid against each other at the onset? Perhaps all my assumptions here are incorrect from the get go, is there anything I'm missing? And how would you recommend proceeding?
I have been trying to get our firm to go the design/build route for years. Hard to teach an old dog new tricks, right?
Regardless, bidding multiple design/build firms at the outset is a great way to go. Don't be too concerned about the prices being higher in this venture because typically if a design/build firm has a good sub base of contractors they are giving really competitive pricing because they always have that firms work.
One advantage, that I really find of value, is that the design/build process keeps the contractors and architects on the same page. They both have incentive to work together. The more design-bid-build process immediately starts the two parties in an adversarial relationship. Them VS. Us.
One disadvantage to the design/build process is that A/E (Architecture / Engineering) fees can be deceiving. Most contractor led design/build firms say, "If you hire us, we'll throw in the A/E fees because we're building the project." Check this. Review their numbers. It isn't free, but they can hide it in their profit/overhead or general conditions numbers.
The other disadvantage (which may be advantageous to some) is cascading liability disappears in a design/build situation. I find it a disadvantage for the owner, because the design/build company insurance can be harder to pierce than would be in a typical design-bid-build situation should you need to go after one sub contractor.
All in all, both processes will work. But find out which situation best suits your needs. If you have time to project manage, then design-bid-build will be fine. If you don't, and want to hand over project management, then design/build maybe the solution.
Either way, reach out to me if you have more questions. I love talking construction delivery methods.
Good luck!
Milad, I agree with @Josh Cuthbertson. How big is your development? It probably makes sense to stick with design-build for larger projects, but for smaller developments design-bid-build probably makes more sense. There are many more firms that offer services via design-bid-build so competition would be greater. With design-build the process goes much faster, construction starts sooner, and design is still being completed while under construction. Design decisions are made faster and there is less back-and-forth waste. I've worked on design-build hospital projects that made a huge difference (hospitals are often the most time-consuming developments with the most red-tape). Most developments on the residenital and commercial side (such as high end single family, multi-family, and hotels) are design-bid-build for the primary structure/design with deferred submittals for the secondary structure (stairs, building enclosure, etc). Feel free to PM me if you have any specific questions -- I am a structural engineer in Los Angeles. Best of luck with you project!
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#2 Land & New Construction Contributor
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@Milad Razavi the Design Build process is the best way to go by far assuming you have some quality choices in your market. You conduct an interview process vs. a bid process so it's more about who you feel the most comfortable with instead of just the lowest bidder.
Design build is always the best value at the end of day as you start off with your budget and work backwards from there. The bid process is often a hidden change order game.
Bottom line, make sure you talk to at least 3 or 4 design build firms, visit their sites (you can tell a lot about a builder by how they keep a job site), talk to their current and past clients Make a choice and trust the process.
@Milad Razavi I am an Architect and provide the traditional design-bid-build and provide my service for a design build firm as well. There are pros and cons to each.
Design-bid-build:
1. The Architect (a good one) understands zoning codes and it could be the difference of a 6 unit building or 10 units. They will maximize your square footage. Most but not all design build firms only have draftsman or contract the drawings out of state where they save money..
2. Architect acts on your behalf. Especially during construction. They will let you know if the GC is not following the plans and then you can either accept it as built or have them correct it.
3. An architect designs for you and what you want. They keep the budget in mind but it is not the driving force for every decision.
4. New ideas such as advanced framing (actually really old but rarely practice) or SIPS or modular may be considered. A Design build will only build what they are used to.
5. All big projects are done this way because they usually require competitive GC bids.
Design-build
1. The GC understands what they will be building.
2. The drawings are bare bones, enough for a permit. They don’t need more because they will build a window the same as they always have. Drawing fees will be lowered.
3. Everything is done in house so the process may be a little faster.
When looking for a design build firm look for something similar to the design build firm I provide services to. Their lead designer has been an architect for 40 years and the rest of us who provide services on a per project basis are all architects with at least 15 years of experience. Just make sure they have a knowledgeable Architect doing the plans.
Good luck.
