Bid/Build vs. Design/Build

Overview
The three basic approaches to construction are Time & Materials, Bid/Build, and Design/Build. Time and materials is familiar to most people as charging by the hour and most are aware of the obvious advantages and disadvantages of this arrangement. Although they sound similar, design/build and bid/build are quite different project delivery systems. In design/build, a single entity known as the design/builder is contractually responsible for the project's design and construction. Under bid/build, the project's design and construction are contracted separately. Bid/Build is thought of by most home owners as the “traditional” method of construction although it is often pointed out that the pyramids were built by Design/Builders. In defining your project, it is important to determine the best approach to ascend to your vision.

Like anything else, there are both benefits and drawbacks to each process.

Bid/Build
Under the Bid/build method, project design is either handled by an architect or building designer working directly for the owner, or the project design is left indeterminate. Where a professional is employed separately, the system allows the homeowner to obtain competing bids on specific criteria. This allows owners to encourage competition between groups of contractors. When the scope of the project does not justify the expense of a designer, final specifications are left to individual contractors, forcing them to estimate not only the needs of the owner, but to seek hidden ways to undercut competing bids. By the nature of the system, contractors tend to spend more time on losing bids then winning bids work and those costs must be rolled into the next job. Additionally, unknown factors must be bid on the highest possible outcome and methods selected according to profitability.

Bid/Build Advantages: Architect works for the owner, not the builder Ability to explore design independently More design&construction company competition

Bid/Build Disadvantages: Higher overall cost and requires a longer schedule Increased probability of disputes Increased owner involvement cost

 

Design/Build
With the rise of niche marketing, home owners have begun to expect choice and individuality and the trend has been away from the standardized tract and into the expectation that the individual owner’s needs are sought out, anticipated, and built in to the project. In the Design/Build method, all aspects of the project are handled under one roof. The owner establishes a budget and criteria and the Design/Builder is charged with tailoring the project to meet the needs of the owner while implementing the most cost effective strategy. Rather then weighing opportunity against misfortune, the Design/Builder has the ability to develop and reveal accurate job costing and to simply apply a standard mark-up. Improved communication allows the owner to weigh cost vs. desire and take part in the process at whatever level they desire. Typically, the owner defines the project and the budget and the Design/Builder explores feasibility. If feasible, the contract sets out the project in two phases. In the first, construction drawings are created and the actual cost is determined, which are tend to be lower than the original budget. The owner may then opt to build or simply to retain the plans to send out for bid..

Design/Build Advantages: Team concept that focuses on common goals and objectives The input of the actual builder is available during the design phase to help determine the most cost effective design Takes advantage of contractor's ingenuity, and innovation Faster track Reduces administrative costs .

Design/Build Disadvantages: Requires decisions to be made earlier in the process. More expensive for contractor team to bid. Possibility of perceived favoritism in procurement decisions Smaller pool of available contractors - average small construction company lacks design resources. More difficulty in protecting design concepts

The Bid/ Build System
1. Meet with Contractor for site inspection and to define project. We will ask for any available construction documents at this time.
2. We will create a bid for you in line with industry standard, based on national square foot averages, market considerations, and our understanding of what you want.
3. We will submit our bid.

The Design/Build System
1. Meet with Designer to discuss project, desires and budget. A site inspection is done at this time.
2. The Designer will make an initial assessment of the project. If the designer believes the project is feasible, we will ask to put the project under contract for design.
3. First phase: Design. Construction drawings and documents are created and project cost determined. The construction documents will then be submitted to you which may be revised up to three times.
4. Meet with Contractor and all interested parties to finalize project selections. We will then ask for second phase authorization. (It is your right to opt out of phase two and you will retain a package of working drawings, specifications and budget that can be used to obtain comparable bids from other contractors.)
5. Second Phase: Construction. Any necessary permits are obtained and construction completed. All necessary labor and materials will be supplied.