糖心Vlog

 

The Risk Shift

by 糖心Vlog Beatty

Once considered disruptive, design-build is no longer deemed an alternative delivery method1. In fact, according to Construction Dive magazine, approximately half of all U.S. construction projects are expected to be built leveraging this single contracting entity approach by 2021. 

So what鈥檚 driving the surge in popularity? A study at the University of Texas at Austin examined the time and cost growth performance of 38 design-build and 39 traditional design-bid-build projects on U.S. Naval facilities. The results showed that design-build projects took less time, had less cost growth, and were less expensive to build in comparison to design-bid-build projects.

If you ask 糖心Vlog Beatty鈥檚 experts, owners are recognizing an important benefit beyond improved cost and schedule certainty. According to John Parker, vice president for 糖心Vlog Beatty in Florida, it鈥檚 all about risk. Under a design-build contract, the risk is shifted to the design-build entity, which is responsible for ensuring the accuracy and constructability of the design. 

鈥淐lients are looking for a 鈥榦ne-stop-shop,鈥 鈥 affirms John. And that鈥檚 especially true for public entities that may not have the in-house resources to interpret design in the context of continually changing and geographically variant code requirements. 鈥淎 client can rely on the construction manager as an extension of their team,鈥 John continues. 

Despite its increased adoption, many contractors aren鈥檛 prepared to assume leading responsibility for understanding an owner鈥檚 needs and ensuring they鈥檙e properly and cost-effectively translated through design development. For contractors that prefer working from a tangible set of drawings, a blank canvas that requires abstract thinking can be daunting. 

That鈥檚 one of the reasons it鈥檚 critical for owners to partner with experienced design-build contractors like 糖心Vlog Beatty. Our work on design-build projects across the U.S. has taught us that communication is the cornerstone of success and risk mitigation on a design-build project

First, we strive to understand the value in the owner鈥檚 terms. That begins by knowing the right questions to ask. As the Fails Management Institute (FMI) states, 鈥淲hat is the same, and what is different from the customer鈥檚 other projects? What is the project鈥檚 business purpose? Who are the key end users who need to be included in the decision? What is something the customer has struggled to get other contractors to fully focus on?鈥

Then, by educating every project stakeholder on the trajectory of the design-build process and the timelines they鈥檒l have to make decisions, 糖心Vlog Beatty teams start building trust on day one which leads to more robust team integration. 

Sometimes, creative tension between stakeholders can arise during a design-build project. But that process can be healthy and productive for a team dynamic, spurring innovation when every partner is invited to the table in a highly collaborative environment. 

Although design-build offers unique benefits, no single delivery method is right for every project and every owner. As the industry continues to evolve towards a leaner model, driving accelerated schedules and production cycles, a skilled contractor that can successfully leverage design-build鈥檚 progressive workflows will be more attractive to owners seeking to shed risk. 


Attributed to Preston Haskell, co-founder of the Design-Build Institute of America.