What are the benefits of a Design and Build Contract?

 

There is significant debate about the benefits and drawbacks of hiring Design and Build contractors. On one hand, the Design and Build method brings significant benefits to the project owner:

• Minimizes risk and improves clarity: this method helps to minimize risks for the project owner because it reduces the number of points of contact. Now that there is only one point of contact – the design-builder – there is also only one point of responsibility. The project owner does not take the risk that there are multiple parties he will need to sue, or that he will not be able to tell which party is at fault for a particular defect or flaw. As such, it also clarifies the remedies available to the project-owner, because there is only one party who could be liable.
• Saves time: this method reduces the delivery schedule by overlapping the design and construction phases of a project. Thus, the building can be designed in phases, such as the design evolves as the construction ensues. This is particularly appropriate when the project owner is faced with a tight schedule.
• Saves money: this method also saves money for the project owner. With only one entity to hire, there are fewer overhead costs to bear, simpler and fewer legal and managerial responsibilities, and a decreased possibility of litigation and with fewer parties.
• Encourage innovation and a more holistic approach to construction: this method also encourages the design-builder to take more innovative and best-value approaches to designing and constructing the building. This is only possible because all the members of the project team – the designer, the contractor – come together early on in the process to address potential issues that may arise in the future. This also reduces the risk of design errors, which take more time and money to rectify later on. Moreover, since the contractor is also the designer, the design can be easily customized to suit the actual site conditions.