Most recently, a different business model has become more popular, Design-Build. In this type of contract, the construction team is known as the Design-Builder. They are responsible for taking a concept developed by the owner, completing the detailed design, and then pending the owner’s approval on the design, proceed with construction.
There are (2) two main advantages to using a Design-Build contract:
1) Cost;
The “construction team” is motivated to work with the “design team” to develop a design with constructability in mind. Therefore, it is possible for the team to creatively find ways to reduce construction costs without reducing the function of the final product. The owner can realize a reduced price due to the increased constructability of the design.
2) Schedule;
Design-Build contracts allow the pre-construction phase of the project to start before the construction documents are completed.
Many projects are given out with an extremely tight time frame. With a Design-Build contract, the contractor is established, and early mobilization and construction activities are able to proceed concurrently with the