DESIGN-BUILD CONTRACT is a popular project delivery method in the construction industry where the design and construction phases are integrated into a single contract. This approach has its own set of advantages as follow:
Single Point of Responsibility
Faster Delivery
Cost Savings
ON THE OTHER HAND, Design-Build contracts often result to:
Limited Owner Control
Quality Concerns
Change Order Disputes
Conflict of Interest: The design-build entity may prioritize cost and schedule over design excellence, which could lead to corners being cut.
TO ADDRESS THE ISSUES, we need to do the following:
1. Encourage open and transparent communication and strong collaboration between the owner and design-build team to ensure alignment with project goals and expectations.
2. Due Diligence: Select a reputable and experienced design-build team with a proven track record of successful projects, emphasizing a balance between cost-effectiveness and quality.
3. Craft comprehensive contracts that outline responsibilities, scope changes, payment terms, and dispute resolution mechanisms to minimize potential conflicts.
4. Establish a robust change management process to handle design revisions and scope changes effectively, while also addressing associated cost implications.
5. Consider appointing an owner’s representative who can provide independent review, oversight, coordinate communication, and advocate for the owner’s interests.
BY CAREFULLY considering these advantages, disadvantages, and MITIGATION STRATEGIES, owners can make informed decisions about whether a design-build contract is the right approach for them.
