"Design-Build"   BY LINC MOSS

Over the past couple of years, the phrase "design-build" has been much used in many construction industries. But what exactly is "design-build?"

By the nature of modular construction, either wittingly or unwittingly, the factory-built buildings industry has participated in the design-build process for many years. This was due primarily to owners and architects not being familiar enough with our product to execute complete design packages reflecting modular construction. As design-build has grown in popularity, the bar has been raised for expectation and greater a definition of responsibilities assigned.

The design-build process is one of several processes referred to as a delivery system, or a means of defining roles and executing the project. Design-build means that the owner contracts with a single company that is responsible for the building's design and construction.

There are several project delivery systems. The most traditional delivery system is design-bid-build. This is where the owner enlists the services of an architectural and engineering firm to execute the design, then takes those designs and goes out for bid. The award for construction is issued to a general contractor or multiple prime contractors typically based upon price and reputation of the contractor(s). In design-bid-build, there are several variants involving construction management. Construction management is the review and inspection of the construction process that assures compliance with the initial design.

Construction management agency and construction management at risk are examples of the variants mentioned. For the sake of simplicity, we will assume that the architect will act in the role of construction manager with no financial risk (construction management agency).

As with construction types, there is no perfect project delivery system. There are some advantages and disadvantages to both of these delivery systems that we will discuss.

The immediate advantage to design-build is the direct line of communication between owner and the designer/builder. Since these are one and the same, there should be little or no interpretation errors associated with the owners requests. Typically design build projects allows for "fast-tracking" of the job. This is where the contractor is released to commence a portion of the actual work while other aspects of the project are still in the design phase. In addition to communication and speed, costs are much easier to control in a design-build environment since the designs are reflective of the construction means and methods of the contractor.

The downside to design-build is an increased workload upon the owner. In this arrangement, typically the owner plays a more active role in design and construction decisions. Another area of concern is publicly funded projects.

Typically public funds are spent with the lowest bidder only. This normally precludes letting design and construction contracts to the same entity. With the concept of design-build becoming more popular as a project delivery system, many existing laws addressing public funded projects are under review and will probably be rescinded in the near future.

Design-bid-build as mentioned above is the oldest most traditional means of building a project. The advantage to design-bid-build is that the owner can greatly reduce their amount of involvement in the project (given a good relationship with the designer). Depending upon the architectural and engineering firm's skill and familiarity with the type of building, this delivery system can also render a lower initial project price.

The downside is increased project duration due to construction not commencing until 100% of the design work is complete and additional layers of communication between owner and builder. Unfortunately if the architectural and engineering firm is not familiar with the building type or current construction cost, project pricing can quickly get out of hand, rendering a higher initial cost that may exceed the owner's budget.

Design-build requires that a company have strong in-house design capabilities and/or strategic partnership with an architectural and engineering firm. For the most part, our industry has long had in-house design capabilities covering code compliant design of our buildings and all related systems. An area we have normally lacked expertise is civil design. This encompasses the improvements to the land that the building is to be sited upon. These improvements typically address drainage, utilities, paving and landscaping.

It may be necessary for your modular builder to form strategic partnerships with civil design firms before acting in the role of a design-build company. Additionally, some states require all commercial construction or buildings over a certain square footage be sealed by an architect. As with the civil work, either in-house professionals or a partnership with an architect will be required.

Finally, the last item for consideration is the increased liability associated with total design and construction responsibility. Your design-build provider should have professional liability insurance or errors and omission insurance, as it is sometimes called, covers problems with the design that does not meet either an express or implied warranty with the owner. It is important to realize that unlike builder's risk, professional liability insurance coverage does not end when the project is completed. Three, five, and even ten year discovery periods are not uncommon.

Design-build is quickly becoming the favorite option for building or expanding in the public and private education sectors. By eliminating the adversarial relationships and inefficiencies inherent in the traditional design-bid-build method, design-build provides schools the opportunity to obtain the best possible value.
From this short introduction, you can see that the design-build process may make sense as a strategic means for your school system.

Whether you require a simple addition or an entire campus, design-build providers have engineers, designers, and architects that can help you with facility layout, student flow, construction codes, and environmental concerns.

Linc Moss of Ramtech Building Systems, Inc. in Mansfield, Texas is a past president of the Modular Building Institute.

Copyright © Modular Building Institute, June 2001.