Everything You Always Wanted to Know...

As our reporters researched the boom in design/build construction, we found some facts that just didn't add up. We turned to Dick Snow and his decades' experience as an industry leader for his insight.

Dick Snow Past AGC President

The design/build process of construction is not necessarily new to the industry, but merely coming into its own as a recognized projectdelivery system.

Like another buzzword, "construction management," design/build has been just about anything an owner thinks it is.

Public-sector interest is driving design/build to the top of the projectdelivery foodchain. Heretofore, the private sector was the province for design/build.

Local success with this system probably came from its utilization in the construction of the Midwest Express Center and Miller Park, both quasipublic but legally private entities.

Now, of course, there's pending legislation in Madison which would permit public projects over the $1 million threshold to be accomplished by design/build. And, predictably, this effort has some segments of the construction industry, mainly subcontractor groups, questioning/opposing the move.

Based on experience, we know public agencies have been warming up to working with a single point on a public project.

Wisconsin is not a "single-contract" state. Statutes allow bids to be taken for a "single contract" parallel to separate prime bids. We can't think of one instance where the "single contract" bid has prevailed. As a matter of fact, the state's general conditions now designate a "lead contractor" in order to establzish a singlepoint relationship.

Incidentally, the design/build movement is no longer the exclusive domain of building contractors. Highway officially, according to the Associated General Contractors of America, design/build is "an agreement to perform both design and construction under one contract between an owner and a design/build contractor. "

Moving in on the market

Some enterprising contractors simply list "design/ build" on their letterheads and project signs. Most of these contractors also list "construction manager" in their credits.

It doesn't work that way, though!

There are several variations of the design/build theme. If a contractor is not performing one of these variations, it is dubious as to whether he or she should claim to be into design/build.

Variations on a theme

There are as many variations on design/build as there are companies that practice it. The mostoften encountered are:

• Contractor-led. Even this definition has its permutations. In one, the contractor integrates his or her staff, providing inhouse design work by employing appropriate engineering and/or architectural professionals. The second method utilizes consultants to provide the design function and work as subcontractors. There are design/build firms like Opus North Corp. which also get into project development and financing.
  
  
• A joint venture between contractor, architect and engineering firms. This involves organizing a new corporation for the purpose of constructing a single project. This joint venture can, and sometimes is, used for other projects in design/build.
  
  
• Designer-or developer-led. Similar to contractor led projects, architects or developers either keep their construction staffs inhouse or contract it out.

Subcontractor associations, in general, do not like the design/build process because they are likely to play a minor role in the effort and thus lessen their control.

They're chasing a paper tiger. Over many years, certain major subcontractors have hooked up with specific generals and have been known to assist in the design function. But that's another story for another time.

Design/build has its moments

Public and private project owners have their own reasons for preferring design/build:

• Design/build provides a single point of responsibility for the design and construction phases.
  
  
• Design/build usually delivers the end product more quickly.
  
  
• All costs, scheduling and methodology are controlled by a single entity.
  
  
• Lines of communication are direct and orders travel faster.
  
  
• Conflicts are minimized and adversarial relationships reduced.
  
  
• Project costs can be identified early, providing more opportunity for the timely purchase of longlead items.
  
  
• Value engineering opportunities are inherent in design/build.
  
  
• Design/build provides a greater potential for fasttracking construction.
  
  
• Smoother project close-out opportunities exist.
  
  
• Claims should be greatly reduced.
  
  
• It is possible to retain the competitive bid system.

The disclaimer, of course, is that design/build is only as good as the professionals who execute the project and if they work the system to its full potential.

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