When building new facilities, whether you are an entrepreneur or a buyer – you will face many challenges. Even if you think you are up to the challenges – it is clear to you that some things will affect your time and cost of the project. However, a new method in construction, which we call the Design-Build method, has shown that it doesn’t have to be this way – and here’s how it can save you money and time.
Disadvantages Of Standard Construction And Design Procedures
Each construction process consists of several basic stages. These are design, supply, and ultimately – construction. Of course, in the past (and often even today) different entities were dealing with these procedures. We had, for example, design houses whose architects make project designs.
Then bidding agents would be involved in the story – and finally, there are construction contractors, subcontractors, and so on. Whenever we have several different parties involved in this process – various unforeseen circumstances inevitably occur. Then it happens that we are late with the work, we spend extra time on the same jobs – and in the end, it all costs us much more. Therefore, the Design and Build business model is a far better choice.
What Is The Design-Build Method, And What Are The Differences Compared To The Traditional Contractor Business?
The main difference between the Design and Builds model, and traditional contracting, stems from the unification of all the aforementioned jobs. So, in one place you get both design and construction – which makes a good foundation for achieving greater value for taxpayers and their money. Of course, it is very important to provide a licensed design contractor, because it gives you additional security – as well as the possibility of better legal protection that will have a clear basis. The reason why many investors and clients opt for this method – is primarily to save money, time – as well as business security. Here is why these claims are justified.
How Can We Save Time And Money With This Method?
1. You Have Everything In One Place
This method enables the unified cooperation of several entities standing under the same umbrella. So, designers and architects, contractors and subcontractors of construction works, and often broker agents – are all located within the same entity. This is very useful because there is less chance that there will be confusion, mistakes – and then corrections that require time and make you break the agreed deadlines. Therefore, saving time is the most visible benefit of this business model – which is also accompanied by savings in money. Namely, you do not have to hire experts, architects, builders, and the like individually – but they all form a single team. Therefore, you save time and money.
2. Collaboration Within A Unified Team Is More Efficient And Easier
As with any other business, it is far easier to have your team where all the “players” work for the same goal. Some research conducted on this topic tells us that the efficiency of the construction business is higher by more than 30% when we opt for the design-build method.
According to koflerdesignbuild, if you’re looking for design-build firms, Los Angeles – or any other big city, you will waste a lot of time. However, this method is a good solution for overcoming various challenges to start a project. The efficiency of the work itself stems from the fact that you will no longer have to go through those necessary steps such as design, bid, and build – as that was the case within the traditional concept of the construction business.
In addition, when you have been cooperating with the same team for a certain time – you already know in advance what you can realistically expect from each of them. In this way, you will be able to present your clients with realistic goals, realistic deadlines – and ultimately, the results they will be satisfied with.
3. There Is No Competition Among Associates
This is extremely important especially when it comes to saving money. Namely, the absence of classic competition among your team members saves you money – because all team members are equally committed to controlling costs. This is, in a way, logical, because their earnings depend on it – so they try to take it more seriously.
In a team with a unified responsibility – everyone is equally responsible for the schedule, deadlines, performance, and costs. Therefore, you will rarely come across a situation where one part of the team undermines the rest of the team – which is often the case when you gather your associates from different sides. According to some economic studies, this saves you between 5-10% of the money – that you would otherwise lose due to wasting time looking for resources and their inter-professional collisions.
4. Contracted Payment Mechanisms Save You Money And Provide Investment Security
The most important benefit of the Design and Build model for clients and creditors – lies in the agreed payment mechanism for works and services. Unlike the classic procurement models in which payment is agreed on monthly invoices – in this model, the entire cost of works and services is paid upon completion of the project.
So, one-time and based on one account. This payment mechanism results in high motivation of the contractor to implement the project within the agreed deadline, or even before the deadline – and also following all standards of quality. Only after the acceptance of all completed works by the client – the contractor issues an invoice. This way, frequent occurrences of very long deadlines will be avoided – as well as the known situations where the contractors were paid up to 90% of the total project value and in the end, the construction was never completed.
The Bottom Line
In the end, no matter how effective this method is, don’t rush into business until you find reliable associates – and do all the necessary documentation. Every licensed company gives you some security – but you should always inquire in advance about the reputation of each of these companies. Only then can you enter such a business and feel relieved.