PROJECT DELIVERY METHODS
When setting up your team it is imperative for you to understand the different choices for designing and building your home and evaluating their individual pros and cons.
In the custom residential industry, there are 3 common choices, referred to as Project Delivery Methods:
1 Design-Bid-Build
2 Design-Build
3 Design-Negotiate-Build
At JPU we partner with clients who use each method. Each has its benefits and drawbacks, and the ideal method depends on priorities and project scope. As you head into your building project, make sure you have a clear understanding of which method best meets your needs and goals.
1 DESIGN-BID-BUILD (DBB)
Design-bid-build is the most traditional project delivery method. This method starts with the client hiring an architect to provide design services alone. When most of the design work is complete, multiple contractors provide construction estimates in a bidding process, using architectural drawings for reference. After receiving bids, the architect counsels the owner through the decision and the owner will select the contractor who offers the most competitive, responsible bid.
Pros and Cons
The design-bid-build method is known to reduce costs and ensure fairness for contractors. In theory, the method should lower construction costs by promoting competition between contractors.
Although this method may help reduce costs, it can be risky for owners. Some contractors may be tempted to offer the lowest possible bid by seeking out low-cost subcontractors and materials, diminishing the quality of work. At the same time, there is no opportunity for architects and contractors to collaborate when developing the scope of the project, and there is limited opportunity for contractors to offer feedback on the relation between proposed design ideas and project budget.
As such, all drawings and specifications produced by architects and engineers need to be produced with a high-level of detail before the project goes out to bid. The more detailed the drawings and specifications, the more likely the completed project will reflect the design intent and align with the schedule and budget.
Note
We would only recommend this approach as a “closed bid,” in which the client selects three reputable contractors with references that can be contacted directly, and after having visited/seen their work. We encourage you to bring forward contractors that you know, but we will require that they can be well-vetted beforehand. We have seen many jobs end badly because a shady contractor was chosen, and their references were not well-checked. All parties involved need to be honest and work well together for a smooth, cost-effective project to come to fruition.
2 DESIGN-BUILD (DB)
In the design-build method, architects work under a contractor who has a contract with the owner. Working as a team, the contractor and architect provide both design and construction services. Typically, architects and contractors join forces before interviewing for a project. We have had projects where the builder was the point of contact and invited us to work under contract with them. In some situations, the client may directly consult an architect-contractor team.
Pros and Cons
Design-builds are known to foster collaboration between architects and contractors and improve efficiency. Architects and contractors can work as a team to develop the most efficient solutions, compare alternatives, and select materials while estimating costs and schedules. For clients, this method allows for a single point of contact and can also speed up design and construction by fast-tracking the bidding process.
This approach requires a significant mental shift on the part of team members that are not used to working so collaboratively. It can be difficult for architects and builders who have spent their careers working on DBB projects in which the hierarchy and territory of the players is more clearly defined.
Note
This method is recommendable when the builder and designer know each other well and have worked collaboratively in the past. The architect involved needs to have a thorough understanding of scheduling, budgets, and timely deliveries.
3 DESIGN-NEGOTIATE-BUILD (DNB)
The design-negotiate-bid model resembles a hybrid of the design-bid-build and design-build models. Like a design-bid-build, the owner has separate contracts with the architect and contractor. However, the owner selects the contractor privately, rather than through a public bidding process. As a result, even though the builder is selected by the client, the builder can be involved earlier in the process. As such, this approach can create a collaborative relationship between the architect and contractor that resembles the design-build method.
Pros and Cons
Like design-builds, architects and contractors can collaborate on construction systems, materials, equipment and finish selection and pricing, creating a highly efficient design and construction process. However, this method eliminates direct competition between general contractors. Therefore, it is important to partner with someone you can trust.
Note
In our experience, this method works well when the owner hires the builder at the beginning of the process.
The benefit of bringing on a builder early is directly correlated with their ability to provide pricing feedback during the design process. They will be able to alert client and architect if the scope and proposed solutions conflict with the construction budget, helping to keep the project scope and associated cost realistic.
Without a formal bidding process between contractors, some clients feel a builder’s construction estimate could be artificially high. However, in our experience this is often a great way to work: the builder becomes an integral member of the team, providing valuable input on building methods and value engineering, and is invested in a good outcome.
FINAL WORDS
A job will always be better when the entire team is on board from the beginning and all the team players understand their role on the team and communicate openly. To this end, we recommend hiring a good contractor early in the process by pursuing a design-build or design-negotiate-build delivery method. With these methods, all key members of the project team can communicate openly and ensure the project will be of high quality and within budget.
We focus our practice in designing homes to last, with high standards of construction and energy efficiency. We are deeply intentional about this. We work with contractors that we know and trust as honest, highly knowledgeable, and thoughtful people. These are contractors that also have “intentional” companies. If you hire one of these contractors early in the process, we can personally guarantee you a job very well done at a reasonable price.