Saturday 28 April 2012

Design-Bid or Design-Build?

There is considerable debate about the advantages and disadvantages of these two project delivery systems. Let’s try and explore them further to try to decide what the preferable alternative is.

In a Design-Bid system, the owner hires an architect who identifies the requirements, consigns them to drawings, and calls for bids. If the bids are too high, the project is redesigned to bring the cost within budget. The project is handed over to the contractor who usually uses the lowest bidders. Low bidders work strictly by the book and add on many change orders more often than not. The architect and contractor usually then spar over change orders and debate about value-engineered considerations. The owner picks up the tab for any revisions. The building is completed eventually in the midst of acrimony and at a price.

In the Design-Build system, the owner and design-build contractor work as a team to establish budgets, goals and timelines. The contractor prepares designs and costs. If these are acceptable to the client, the design is considered approved and site preparation begins. This is followed by material ordering and selection of qualified sub-contractors. The building is completed quickly and efficiently. Lines of communication are simple and fast, and responsibilities are clearly defined. The project is cost-effective with no over-runs.

Platinum Builders Inc. of San Jose works on the Design-Build concept. For details log on to http://www.bayareacommercialbuilders.com/.

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