Kegley, Inc. - Building Value

"The Benefits of Design-Build" While there are many variations of construction delivery systems, most fall into one of two primary construction delivery systems used in the public and private sectors. These two categories are (1) the traditional design-bid-build and (2) the increasingly common design-build approaches.

Design-Bid-Build

The traditional design-bid-build involves finding the least expensive architect who has the least expensive support design engineers who then find the least expensive general contractor who uses the least expensive sub-trades to build a project. This process is optimized to lowest failure. It has been a breeding ground for lawsuits for decades due to inevitable cost overruns, redesigns to fit budgets and change orders. To avoid this merriment of challenges, government entities and the private sector have been turning to design build.

Design-Build

Design-build has become a preferred way of building many government facilities because of the many advantages associated with this process.

There are many variables in building a new facility. The location and design play a big role in the functionality as well as the financial feasibility of the facility. The design-build delivery system streamlines the process of building a functional facility on a set budget. In the beginning of the design-build process, owners work with a realtor to find the location. Then, a general contractor helps the owner determine the facility needs and a budget to work with. After the basics are covered, they determine if there are extra budget dollars to work with or value-engineering needs to consider to make the numbers work.

Avoid Change Orders and Redesigns
The design-build delivery system helps an owner avoid extra expenses and delays by minimizing extra steps in the process and unnecessary change orders. By involving the general contractor earlier in the process, any issues with functionality or feasibility are identified early in the process and included in the initial estimate.

Shorter Construction Time
When design-building a project, the construction team works together to resolve construction and design issues instead of looking for a scapegoat for failures. As a result, owners avoid change orders, cost overruns and extended time-frames to complete the project. Because of a quicker construction time, owners can move into the facility sooner and spend less money on interest.

Savings on Building Materials
In addition to expediting the delivery of a new facility, using design-build helps owners save on building materials. Materials such as steel, concrete and asphalt can only be held for 30 days to guarantee the price. On average, building projects experience a 10% increase in material costs due to extended delays in bidding and building a project.

Further details to document material cost increases may be found at the McGraw-Hill web site.

Facility owners are interested in saving money and time while still receiving the best value. When you choose to design-build your new facility, you will do just that by taming cost, schedule and risk.