Design-Build
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| − | The procurement route of a Design-Build project will vary from project to project, depending on management structure as well as the specific project. The following illustrates a generic example of steps required by the owner in the Design-Build procurement process. https://www.lorman.com/resources/design-build-procurement-process-15875 | + | Prior to executing the procurement, the owner should thoroughly investigate wether Design-Build is suited for the project, as well as how well it fits the owners organization. If the owner fails to do so, the potential benefits of using Design-Build will not be realized. Some of the key best considerations can be found in .... |
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| + | The procurement route of a Design-Build project will vary from project to project, depending on management structure as well as the specific project. The following illustrates a generic example of steps required by the owner in the Design-Build procurement process. The steps are based on material from LORMAN https://www.lorman.com/resources/design-build-procurement-process-15875, and backed up by the guidelines from DBIA. | ||
# '''Strategic Facility Planning:''' Analysis of facility requirements to establish facility development plan. | # '''Strategic Facility Planning:''' Analysis of facility requirements to establish facility development plan. | ||
Revision as of 17:37, 19 February 2021
WIP (citing and references not yet finalized)
Developed by William Axel Linderoth Michaelen, s153275
Contents |
Abstract
Design-Build is a project delivery system, mainly used in the construction industry. The method utilizes single source responsibility which differs from the more traditional dual or triple source responsibility format used in Design-Bid-Build. The responsibility is defined by contracts, where the contract in the Design-Build project binds the architect and the contractor under one contract with the project owner. One of the key reasons for doing so is to create a shared responsibility between the architect and the contractor, and thereby involve the architect in the construction phase, and the contractor in the design phase.
Design-Build projects can be further divided into two types; Architect-led Design-Build projects and Contractor-led Design-Build projects. In these cases the Design-Build entity is led either by the architect or the contractor, which affect the management structure and responsibilities in several ways with different pros and cons.
A project delivery system such as Design-Build is essential to project management in construction projects, and especially ties into project procurement management, where a clear definition of the project delivery method is needed. The defining of a project delivery method is a critical deliverable of the procurement strategy as it is defined in the PMI standards for project management. The procurement strategy should define a project delivery method, the contract payment types, and the procurement phases.
Design-Build as delivery method in construction projects enables the initiation of early on site construction, because the method facilitates overlap in the design and construction phases. Furthermore, the owner is able to minimise risks by assigning one contract to the Design-Build entity, however the owner must be willing to hand over some of the control and responsibility for design details. Technically complex projects can also benefit by integrating the contractor's expertise in the early design and development phases.
https://www.designingbuildings.co.uk/wiki/Design_and_build_procurement_route
Choosing the right project delivery method
Before choosing a project delivery method is is important that the owner of the project is aware of the different methods that are available, and thoroughly understand for which project types each method is the most applicable, as well as pros and cons for each method. Some of the most commonly used methods used in construction projects are listed below. The description are only of the most simple version, and hence the delivery methods are not extensively elaborated upon in this article.
| Method | Description |
| Design-Bid-Build (traditional) | The most traditional and widely used method. First an architect is chosen by the owner who then designs the project. Then the bidding phase begins where contractors bid on the project (usually the lowest bid wins). The final phase is the construction of the project, executed by the chosen contractor. The owner signs separate contracts with respectively the architect and the contractor. |
| Design-Build | Method gaining popularity in the construction sector over the past years. The owner creates only one contract with a Design-Build entity containing both architect and contractor. The Design-Build entity must then meet the requirements of the contract, which demands extensive collaboration between the architect and the designer. The method facilitates the design-phase and the build-phase to overlap, and thus increase delivery speed. |
| Construction Management at Risk | This method lies in between Design-Build and Design-Bid-Build. The owner creates a contract with an architect who starts designing the project. Ones the Design is 30 to 60 percent finished, the owner signs a contract with a construction manager who enters collaboration with the architect, creating a smaller overlap between design-phase and construction-phase. The construction manager acts as a consultant to the owner, and bears the risk of meeting deadlines and budget of the project. |
| Multi-Prime | Multi-Prime divides the project into the phases of design, engineering and construction. The owner sign contracts with specialist within each phase of the project, resulting in several contracts won by eg. lowest bid. This results in a theoretical very low cost, but also a total cost which is not known before project concludes. This method requires a highly experienced owner in order to manage the complexity and contain controll over many contracts. |
| Integrated Project Delivery (IPD) | Up and coming method for project delivery in construction, building on the principles of Design-Build. The owner signs a contract with the architect and contractor, and potentially even more members. All members of the agreement are then integrated into all phases of the project, from design to delivery, encouraged to collaborate to an extend where talents and insights of all participants are harnessed to reach the common goals of the project. https://help.aiacontracts.org/public/wp-content/uploads/2020/03/IPD_Guide.pdf |
The project owner should consider several aspects before deciding which delivery method should be used. Design-Build Institute of America (DBIA) has developed a document which acts as a guide for projects owners concerning this specific decision process. The main aspects of consideration include owner control, owner relationships, project budget, project schedule and owner risk. Link to the document can be found in the Annotated Bibliography. https://dbia.org/wp-content/uploads/2018/05/Primers-Choosing-Delivery-Method.pdf
Why choose Design-Build
https://www.pmi.org/learning/library/selecting-best-project-delivery-system-8910
Some of the pros and cons of design build are presented below. https://www.levelset.com/blog/design-build/
Pros:
- One liable party: Because of single source responsibility managed by one contract, conflicts are easier to locate and resolve. The Design-Build entity are more motivated to resolve internal conflicts, instead of pointing fingers.
- Efficiency: Also related to the single source responsibility, improving communication efficiency as there are fewer external parties involved in the project. Project time can also be reduced due to the overlapping of design and construction phase.
- Collaboration: Collaborative synergies across expertises are more likely to be harvested, improving efficiency and reducing conflicts.
- Project costs: Especially related to the reduced project time of initiating the building phase befor the design phase is finalized. This can potentially also reduce costs by including construction expertise in the design phase to discover and discuss elements that might affect the building phase.
- Direct payment: Since the Design-Build entity keeps all payments and requests and approvals under one roof, this should be expected to perform more consistently, create fewer conflicts, and increase efficiency.
Cons:
- Conflicts of interest: Depending on the contract, conflicts of interest might arise e.g. between the owner and the contractor. The owner might in interested in the highest possible quality, whereas the contractor wants to reduce the costs. This risk can be reduced by establishing a budget which is realistic in concern to the interest of the involved parties.
- Less innovative design: By including contractors in the design phase, it must be expected that the contractor is more interested in working with methods and designs known to be the most efficient. This might influence the designers, as well as the owners who might aspire for the project to be innovative.
- Requires more engagement from the owner: The owner must be careful, and hold significantly more responsibility, when signing the Design-Build contract, and ensure that the entity has the skill and ability to deliver the project.
- No bidding restricts access for subs: Subcontractors might have a harder time getting work since the bidding phase does not exist in Design-Build. The subcontractors are often chosen based on experience or different preselected parameter.
- Increased liability: The contractor, depending on the contract, might be liable to more parts of the project than usual.
Management Structures
When describing project delivery methods in the construction sector, a few roles reappear across the different methodologies. The Design-Build methodology, like many other delivery methods, consists of owner, architect and contractor, but furthermore defines the 'role' of the Design-Build entity. This entity always consists of an architect and/or engineer as the designer, and a contractor as the builder. However the management structure of the Design-Build may vary, and is usually defined in one of the following ways https://www.levelset.com/blog/design-build/:
Architect-led Design-Build projects: The architect is the lead of the Design-Build entity. This is usually the case when the construction project concerns high-end residential construction, hospitals, museums and building alike, where aesthetics and architectural strengths are prioritized.
Contractor-led Design-Build projects: The contractor is the lead of the Design-Build entity. This is most common when the project is functionality based, such as infrastructure and industrial factories. Here the strengths of the contractor are prioritized.
For each of the above mentioned structures, the contractual relationship between architect, contractor and the owner generally takes three different structures:
A/E as employee:
A/E as subcontractor:
Joint venture:
Implementing and Succeeding with Design-Build
The following suggestions for implementing and succeeding with Design-Build projects is largely based on the publication "Design-Build Done Right - Best Design-Build Practices" created by the Design-Build Institute of America (DBIA) https://dbia.org/wp-content/uploads/2018/04/Best-Practices-Universally-Applicable.pdf. The publication acts as a guide for Design-Build projects from procurement through contracting and at last the execution and delivery of the project. The guidelines are created to suit most Design-Build projects, and are thus formulated generically. The guidelines for DBIA are further more supported by Design-Build practices from several other sources highlighted in the text.
Procurement
Prior to executing the procurement, the owner should thoroughly investigate wether Design-Build is suited for the project, as well as how well it fits the owners organization. If the owner fails to do so, the potential benefits of using Design-Build will not be realized. Some of the key best considerations can be found in ....
The procurement route of a Design-Build project will vary from project to project, depending on management structure as well as the specific project. The following illustrates a generic example of steps required by the owner in the Design-Build procurement process. The steps are based on material from LORMAN https://www.lorman.com/resources/design-build-procurement-process-15875, and backed up by the guidelines from DBIA.
- Strategic Facility Planning: Analysis of facility requirements to establish facility development plan.
- Program Definition: Establishment of project requirements. This might include definitions of facility dimensions, performance requirements, standards that must be followed etc.
- Request for Qualifications (RFQ): The defining of the qualifications needed by the Design-Build entity to execute the project. This can be anything form skill and experience to price and quality.
- Qualifications Statement: The advertising of the developed RQF to several Design-Build firms who then replies with qualification statements. The owner now chooses a few firms (normally three to five) who fulfill the RQF the best.
- Request for Proposals (RFP): The owner now communicate the requirements for the project to the selected firms. This is sent in the format of an RPF which contains e.g. design criteria, contract requirements and other information needed in order for the Design-Build firms to reply with a proposal which fits the requirements.
- Pre-Proposal Conference: Optional meeting where the chosen firms can ask further questions regarding the project, before submitting their proposal to the owner.
- Proposal Submission and Evaluation: Evaluation of the submitted proposals. This is based of predetermined factors e.g. price or design, but usually a combination og several. This step is critical for the owner, since it will determine the ultimate outcome of the project.
- Contract Award: Contracts between owner and the chosen Design-Build entity are formulated and signed.
- Documents/Construction: Design and construction phases are initiated and overlap as specified.
Contracting
https://www.consensusdocs.org/contract_category/designbuild/
Execution and Delivery
Team Mentality
https://www.constructiondive.com/news/the-pros-and-cons-of-design-build/573254/
Limitations
Annotated Bibliography
Book title Descriptive text
