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| Design/Bid/Build Negotiated Contract Design/Build Construction Management | ||
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Design/Bid/Build (Lump Some/Hard Money Bid) | |
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This method requires an owner to select an architectural firm to develop plans and specifications along with a proposed budget. Once the plans and specifications are finalized the project is released for bidding to interested general contractors. (We suggest a limited or invited list). The designer will meet with the owner to go over all bidding results. Once the general contractor is picked (usually the low bid) a contract is issued and the project proceeds. The architectural firm will oversee the general contractors construction as well as all requests for payments and payouts. | |
| Advantages | ||
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The architect is the owner’s onsite representative. As such, |
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he can monitor construction for compliance with the plans and specifications. |
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The quality and quantity are established and bids are |
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received on an equal basis, that result in the most competitive prices. |
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The process offers clearly defined roles for the |
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architects, contractor and owner. The architect is in an agent relationship with the owner and the contractor is in a vendor relationship with the owner. |
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It avoids favoritism (real or perceived) by owners |
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and allows all qualified contractors to compete on an equal basis. |
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Contracts must be completed before the project |
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begins, thus compelling owners and designers to make important construction related decisions well in advance of actual execution. |
| Issues and Disadvantages | ||
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The main disadvantage in this method is the great deal of |
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time involved for developing construction documents prior to bidding. In order to receive accurate bids, all construction documents must be finished. |
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The actual time given to the bidding process is very short. |
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Many of the subcontractors and suppliers are not |
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comfortable providing their information until right up to the bid deadline. |
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When contractor selection is based on competitive bidding; |
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contractors often use the lowest prices received from their vendors and may very well be compromising quality or quantity in their low bid. This is where the architect must act on behalf of the owner to insure plans and specs are adhered to. In highly competitive markets, a contractor may ask for extra charges and changes in the work to help offset any shortcomings in the vendor’s prices or the architect's specifications. |
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The potential exists that, due to disputes in quality or |
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quantity, adversarial relationships may develop between the architect, contractor and owner in this method. The three have different financial goals. |
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Differences in the interpretation of contract documents are |
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frequent. |
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All of the bids may exceed the designer’s estimate of cost, |
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which can lead to delays, possible re-bidding or even cancellation of the project. |
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The increasing complexity of building construction, |
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intensified regulating and on occasion inadequate fees for designers, makes it more difficult to prepare a final set of contract documents before starting the project. |
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The Design-Bid-Build Method is Most Suited to Situations Where: |  |
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The desire is to complete all of the design and construction documents before construction begins. | |
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The owner has the time to invest in a linear process. | |
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The owner desires the protection of a well-understood design and construction process. | |
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The owner desires the lowest price on a competitive bid basis for known quantity | |
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an quality of the project. | |
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The owner acknowledges the possibility that there will be contractor driven change orders | |
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during construction as the result of last minute sub and supplier bids. | |
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The contractor’s input is not needed in any of the design or construction document process. | |
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