Why Design-Build?

Design-Build is the best performing construction

delivery system for both schedule and cost, consistently

outperforming other delivery systems while allowing for more innovation,

collaboration, leading to better project outcomes.

The Owner must manage two separate contracts which all-too-often creates an adversarial relationship between the designer and the contractor. If something goes wrong or an unforeseen circumstance requires changes, the designer and contractor blame one another for the cost overruns or schedule changes, often leading to litigation and delays, which adds to the project cost.

The Owner manages only one contract with a single point of responsibility. The designer and contractor work together from the beginning, as a team, providing unified project recommendations to fit the Owner’s schedule and budget. Any changes are addressed by the entire team, leading to collaborative problem-solving and innovation, not excuses or blame-shifting. While single-source contracting is the fundamental difference between design-build and the old ways, equally important is the culture of collaboration inherent in design-build.

IMPACT of Change Orders

Top 5

of Change Orders
in Construction

  1. Lack of coordination between contractor
    and consultant
  2. Errors and omissions in design
  3. Value engineering
  4. Change in design
  5. Change of plans by owner

Top 5

of Change Orders
in Construction

  1. Cost overrun
  2. Time overrun
  3. Disputes between parties to the contract
  4. Quality standards compromised
  5. Complaints of one or more of
    the parties to the contract

Sources of Construction Project Change Orders

68% of change orders on a project generate from mechanical and electrical scopes. The design-build delivery model eliminates these by mitigating issues before construction begins.

Federal Government Recognizes Benefits of Design-Build

The Federal Government is recognizing that the traditional design-bid-build delivery model isn’t resulting in the best value for the end-user. Budget constraints, shifting national security priorities, sustainability mandates and diverse needs have all resulted in significant shifts in the way federal agencies purchase design and construction services. Add to this the need to work within the framework of both the Federal Acquisition Regulation (FAR) as well as agency-specific policies, and it is clear that the federal sector faces unique challenges in delivering the best value to citizens and taxpayers.

To help address these challenges and to begin the process of finding creative solutions to better the industry and our nation, the Design-Build Institute of America (DBIA) and the Society of American Military Engineers (SAME) hosted a Federal Owners Forum. Thirteen industry leaders representing 11 federal agencies gathered for a full day to challenge thinking and play a major role in affecting positive change. The leaders addressed imperatives that hinder the federal sector’s ongoing ability to achieve optimal efficiency and performance in designing and constructing the built environment. Both DBIA and SAME will use the information generated at the forum to drive positive change, continuing efforts to ensure that federal owners achieve value while meeting or exceeding cost, schedule and quality goals in delivering their capital projects. (Federal Owners’ Forum Summary Report; May 4, 2016).

The report concluded that, with the right tools, the right team and the right processes, federal agencies are well on their way to optimal success in project delivery. Clearly, design-build is an idea whose time has come.

State of Pennsylvania Also Recognizes Design-Build Benefits

COSTARS is the Commonwealth of Pennsylvania’s cooperative purchasing program administered by the Department of General Services (the “DGS”) Bureau of Procurement. The COSTARS program provides registered local public procurement units as well as state-affiliated entities (together “Members”) and suppliers a tool to find and do business with each other effectively through the use of a contract established by the DGS.

Under the COSTARS contract 008, Maintenance, Repair, & Operation Equipment and Supplies (MRO), non-governmental members can purchase Assembly/Installation/Construction Activities WITHOUT dollar value limitation. Governmental entities and school districts are limited to purchasing projects below $25,000.00 OR those to which the entity will be contracting with ONE major construction discipline. In other words, contracting using the Design-Build delivery model!