M id A tlantic Real Estate Journal — Owners, Developers & Managers — Renovation/Restoration — November 11 - December 8, 2016 — 13B C onstruction M anagement /D esign B uild
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By Mike Regina, Big Sky Enterprises, Llc Will the design-build method take over?
T
he desire for one-stop shopping i s every - where. We have become
of one single entity. This is completely different from the traditional, almost lethargic, designbid-build process where the owner chooses the engineer or architect to design the proj- ect, and competitive bids are taken from other entities for the performance of construc- tion services. It even sounds like snail-pace. Design-build keeps the control, and the li- ability off of the owner, exactly where it belongs. The owner typically provides general de- sign specifications and desired performance specifications, but the detailed construction plans and specs are the re-
sponsibility of the design-build team, instead of the owner’s engineer or architect. Accord- ingly, the implied warranty of specifications will not follow the trail from the owner to the contractor. Instead, the contractor bears the risk of non-performance. Other clear benefits of the design-build process include: Quality – When quality re- sponsibility is on the builder, there is clear motivation to produce superior results. This contrasts with the tradition- al design-bid-build method, where responsibility falls to the owner. Financial Savings –
When design and construction work hand-in-hand, multiple options can be explored and efficient solutions brought to the table before the produc- tion of drawings. Streamlining for Time Efficiency- Design and construction can overlap and collaboration during the initial design phase can elimi- nate redesign time. Instead of a bottleneck, construction can actually begin before the working drawings are com- plete. Early Cost Guarantee - Without all the “what if” scenarios it’s much easier to procure financing commit- ments at significantly reduced
out-of-pocket costs prior to the availability of loan proceeds. The Solution to the “Never Ending Change Orders” –With project scope and price out of the way, change orders stem- ming from design coordination issues are eliminated, along with the headache and lost time. Correction of such is- sues is the responsibility of the design-builder, not the owner. Risk Incentive – Incentives are always nice. With the design- build model the incentive to improve efficiency without sacrificing quality translates into innovative ideas, problem continued on page 24A
a nation of streamliners and practical thinkers. S m a r t p l aye r s i n every indus- try have been silently re- thinking and
Mike Regina
repositioning themselves for success in today’s economy. What does that look like? Busi- nesses are hand-picking lead- ers and putting together pow- erful multi-discipline teams that can handle all parts of a project within one entity. The concept of an interdisciplin- ary approach is really nothing new. It has beenmodeled again and again in every business sector. Is this a monopoly? Or is it business excellence? The only way to truly answer this question is by asking the most important one: Does it put the customer, or end user, at an advantage or disadvantage? That’s the only real way to gauge a business ideal. The Customer’s Needs When customers are looking for a design-build contract, they are ultimately saying: • I want one point of contact • I don’t want to be faced with questions I don’t have answers to • I don’t want to have to do homework, legwork, or anything else They’re say- ing, “Here’s my need. Here’s my budget. Make it happen.” Besides a customer’s ultimate desire to see a project go from concept to fulfillment without financial surprises, delays or disappointment, there are other reasons the design-build model has experienced unprec- edented growth over the past decade: Benefits of the Design- Build Process One thing I’ve learned over the years is that regardless of the economy or shifts in trends, there will always be a market for excellence. The design build concepts, like the design build process at Big Sky evolved from our ongoing commitment to learn, grow, and improve. In almost every situation, design- build is superior to traditional construction. The difference between the two is pretty straightforward. With the design build model, both the design and construction of a project are under the umbrella
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