I want to do an addition. Am I supposed to call an architect? Or a builder? What’s Design Build mean? These are common question people ask when considering an addition or large home renovation project.
The general term for this topic is Project Delivery. You have an idea, the way that idea gets turned into an actual part of your house is through your Project Delivery. Far and away the two most common Project Delivery methods for residential additions/renovations are Design-Bid-Build and Design-Build.
There are positive and less positive aspects of each method, and it’s important to understand them BEFORE you hire someone to help you with your project.
In each method there are three important roles: Owner, Architect, Contractor. You are the Owner. I’m the Architect (there may be other architects out there, not sure) And I’m using Contractor/Builder synonymously for the entity that will actually build your project. The key thing to understand is that the project delivery method fundamentally changes the relationship between these three roles.
Disclaimer, I’ll be talking in broad terms and typical conditions here. If you are an architect or a builder and get offended, feel free to write your own blog. Don't worry, I'll probably offend architects and builders equally, so you know I'm being fair.
The traditional project delivery method is Design-Bid-Build, which means you’ll be hiring the architect first. So we’ll cover this one first.
Design-Bid-Build: Hiring the architect first
You hire an architect to design your project. You use that design to get bids from multiple contractors. You choose one of the contractors and they build your project. Design-Bid-Build, easy.
The strengths of this method are that the architect acts as your agent through the process, you can get the project competitively bid and you may be able to get a more custom/creative design. The weaknesses are that you may end up with a design that’s over your budget, the process can take longer and there could be finger-pointing between the architect and contractor if there a problems getting the project built.
Benefits of Design-Bid-Build
Architect as Agent
This is the single biggest relationship difference between the two project delivery methods. If you go the Design-Bid-Build route, you hire the architect first, and the architect acts on your behalf throughout the project. This is a great benefit if you need help picking a contractor, getting a second opinion on something your builder has told you, or just need someone to help you manage the relationships you have with other people you have hired.
If you go the Design-Build route, you lose this agent relationship. There will likely still be an architect working on the project, but their contract is with the builder, not with the owner.
Competitively Bid
Probably the most important benefit for a lot of people. With Design-Bid-Build you can get multiple quotes for the work. This can help you save money, or at the very least give you some comfort knowing that what you end up paying is a fair price for the work. Cost estimates can also help you get a better idea of how interested a contractor is in your project and how well they understand (or have studied) the drawings. A more detailed estimate can be a good indicator of the ability of the contractor to complete the job, even if that estimate is not the lowest.
Three estimates is enough, maybe four. As the owner you should understand that creating a cost estimate that means anything is time-consuming work for a builder, and they probably only have a 1/3 chance of even getting the job. A contractor would likely not give you the most detailed estimate if they knew they were one of seven bidding the job. As an architect I would not want to present a project to my favorite builder if I knew the owner wanted five bids, even if I’m acting as your agent.
Custom/Creative Design
This one will be controversial, but Design-Bid-Build can result in a more custom, more creative design. One of the selling points of Design-Build is shorter, less expensive, design time. This isn’t wrong, but it’s not an apples-to-apples comparison. Like Steve Jobs said, “design isn’t what it looks like…design is how it works.” When you hire someone to design your project you have to pay someone for time it takes to think about how to build it. No one just knows how to build something. So you either pay an architect to think about it, or you pay your builder to think about it. When you pay your architect, the design fee is known, and they can basically come up with whatever they want. When you pay your design-build firm that design time cost is hidden in the overall fee and one way that design time is shortened is they will build what they already know how to build…not a bad thing, just less custom.
Weaknesses of Design-Bid-Build
It Can Take Longer
Design-Bid-Build is a longer project delivery method. With no other considerations, you can lose three weeks (or more) just waiting on bids after the design is done. There are other, less measurable, time savings with Design-Build as well…the architect working for the builder doesn’t have to draw as detailed of a plan because the builder either knows what they’re going to do or can figure it out themselves (see above).
The Design Can Be Over Budget
This is where I will offend the architects because this is the one that really makes Design-Build a popular choice. Architects are notoriously bad at cost estimates. We can go by experience, we can use cost estimating tools or give an estimate based on square footage. But architects don’t know for sure what the design will cost because we don’t control the labor, we don’t have relationships with subcontractors and lumber yards and we don’t have the daily input on how material costs may be changing. Contractors DO have this skill/information because they deal with it every day. I might be able to tell you what sport you’re watching, a contractor can tell you what section your seats are in.
And this one is a double-whammy because if you get to the end of the design phase and ALL the bids come back over budget you lose time re-designing the project and you may lose an element of the design you really liked. Architects want to avoid this because they should not be paid for this redesign time.
Finger-Pointing
Although the architect will serve as your agent in this process, it doesn’t mean they are infallible or some distant third-party. They are stakeholders in the project and will have opinions on how things should be done. They may also make mistakes. If there is a disagreement between the architect and the builder (architect says something was built wrong, contractor says drawings were incorrect) the owner gets caught in the middle, having to decide who is right, often without the technical knowledge to really make that determination. This doesn’t happen with Design-Build.
Design-Build:hiring the builder first
You hire one company to design and build your project. You get one fixed price early in the project and you deal with one point of contact all the way through. Design-Build, easy. The strengths of this delivery method are as just described; you know the cost earlier and you deal with one person or one company the entire time. The trade off is that your project is not competitively bid and you don’t have someone working as your agent. Design-build can offer less transparency because you hire one company for one fixed price, you don’t necessarily get line item break outs for design, construction, etc. As friendly, honest and helpful as your contractor may be, the format of the relationship is adversarial. You have your interests, they have theirs, and the two might not always align.
Even with Design-Build you will almost always have an architect working on your project. As described above, the architect in this scenario works for the design-build entity, not for you. At the residential scale design-build firms are usually builders, who then sub-contract out the architecture work to an architect they are familiar with. Some of the larger companies may have their own architect on staff, but typically the architect will have their own practice and sign a contract with the builder for your specific project. In this scenario you may or may not work directly with the architect…depends on how the contractor wants the relationships to work.
I work on projects with both delivery methods. If you want to do design build but you also want to work with me you can discuss it with your contractor. Some may say they will charge less if you work with “their guy” because for them that architect is a known entity. Some will be open to working with your architect. Can’t hurt to ask.
Benefits of Design-Build
Early Known Price
One of the strongest selling points of Design-Build is early known cost of the project. You tell the contractor how much you want to spend and they can inform you generally how much you can afford to build. They then provide a design that meets your budget. This is a great thing. You can arrange financing earlier, determine your budget earlier and not end up with an over-budget project after you’ve spent a lot of money on the design.
One Point of Contact
If you choose Design-Build you will have fewer relationships to manage. If something goes wrong there is a single point of accountability. There can be no disputes about whether the drawings are wrong or the builder is wrong or a subcontractor didn’t do something right. You hire and pay one company and they are solely responsible for delivering your project.
Shorter Timeline
Design-Build can give you a shorter project timeline. Right off the bat you save a few weeks waiting for bids. There is also time savings during the process as the architect may not have to produce drawings with as much detail as in a Design-Bid-Build delivery. The contractor can take some of the workload off the architect by pre-selecting items like flooring type or interior finishes, or insulation or a dozen other things the architect no longer has to specify. The architect can also start out by designing a specific program (the main idea of the project) instead of testing multiple options.
Weaknesses of Design-Build
Not Competitively Bid
Design-Build projects are not competitively bid. This is the concession you make for getting an early known price. Pretty much just like shopping at CarMax. It’s quick and easy and the price is on the window. No haggling. But…you might not get the best deal. You hire one company, tell them your budget and they tell you how much you can build.
No Agent/Less Transparency
You don’t have someone working objectively on your behalf. Yes, your contractor may be completely honest with you and yes, it is not good business practice to rip off or lie to your clients. However, because of the fundamental nature of your relationship with a design-build company your interests may not always be aligned with theirs.
As described above, you are contracted with one company for everything, and you may not be entitled to a breakdown in cost. So you will not know how much the design cost, how much the construction cost, how much profit is built in, etc. With Design-Bid-Build you will have access to more of this data (though maybe not the profit margins).