When undertaking a construction project, there are two main contract options available: design and build contracts and traditional contracts. Understanding the differences between the two can help you decide which is the best option for your project.
Traditional contracts, also known as the design-bid-build model, involve three separate entities: the owner, the designer and the contractor. The owner hires an architect or engineer to design the project and then puts the job out for bid to contractors. Once a contractor is selected, they are responsible for building the project according to the plans provided by the designer.
In contrast, design and build contracts involve a single entity responsible for both the design and construction of the project. The owner contracts with a design and build firm, who then takes responsibility for everything from the initial design through to final construction.
So which option is best for you? Here are some factors to consider:
Timeframe: Design and build contracts are often completed more quickly than traditional contracts because there are fewer parties involved. This streamlined process can save time and money, making it an appealing option for owners with a tight timeframe.
Cost: Traditional contracts can be more expensive due to the bidding process and the potential for change orders during construction. With design and build contracts, costs are typically more predictable because the design and construction are handled by the same firm. The up-front costs may be slightly higher, but the streamlined process can result in cost savings in the long run.
Risk: Traditional contracts carry more risk for the owner because they are responsible for coordinating multiple entities and managing potential conflicts between the designer and contractor. With design and build contracts, the risk is on the contractor since they are responsible for both the design and construction of the project.
Communication: Communication is key in any construction project. With traditional contracts, owners must communicate with both the designer and contractor, which can lead to miscommunication and delays. With design and build contracts, communication is streamlined since there is only one point of contact.
There is no one-size-fits-all answer when it comes to choosing between a design and build contract or a traditional contract. It ultimately comes down to the specific needs of the project and the preferences of the owner. By understanding the differences between the two, owners can make an informed decision that best meets their needs.