Which construction delivery system is best for your project?
There are several unique and distinctive methods for providing construction solutions. As a business owner you have the luxury of selecting the most beneficial and appropriate delivery system for your type of project.
The Owner hires one firm to provide architectural design and construction services in a phased approach. Oftentimes, the architect is a staff member of the construction company. The design/builder becomes the single-source that is responsible for designing the building, hiring the subcontractors and coordinating the schedule and invoicing to ensure the project is completed on time and within budget.
It’s the design/builder’s sole responsibility to complete the project to the client’s satisfaction. The architect and contractor are the same entity, which eliminates misunderstandings as they collaborate throughout the design process. The design/builder becomes the owner’s advocate, leading them through site planning, permitting, design, value engineering and construction. The phased approach provides economical/budget information early for the owner to decide if the project is a go or no-go.
Design/build is suitable for busy owners or those who know only a little about construction. It’s also a fast-track method or a fast construction process for projects with a tight schedule.
A construction manager’s (CM) role as part of the project team is to provide estimating and constructability review during design, and cost, time and quality control during construction. The client establishes their team of architect, CM and owner’s representative at the onset of the building concept. The architect is responsible for defining the building through drawings and specifications while the CM regulates and monitors the schedule, budget, materials and performance of the subcontractors. The owner thoroughly informed by these professionals, can then make educated decisions about his or her project.
The owner must be willing to be involved in the process because by using the CM method each trade contract is signed with the owner. The CM method is most suitable for those who construction is a recurring activity and/or their project is very large, like schools and retail chains.
Considered the design/bid/build method, the owner typically already has plans which were prepared by an outside architect/engineer when they seek a general contractor. They choose their general contractor by one of three methods, 1) negotiating with one or more contractors of their choice, 2) selecting a group of contractors to bid and then accepting the lowest bid, 3) advertising for a broad variety of bids and accepting the lowest.
For clients who have a simple construction project, general construction is likely the appropriate construction solution. It’s also the right choice when it’s necessary to bid and then build a project based upon completed plans and specifications. However, this method leaves little room for correction of design or programmatic errors, if any exist.
The contractor finances, builds and leases a new facility back to a qualified owner, allowing him or her to focus on his or her business. This is the best option for businesses that are faced with the need to expand their floor-space while at the same time minimize the risk involved with tying up capital in construction costs.
Business owners who qualify and currently have all their working capital in their business without a budget for building their new space are candidates for leaseback. By choosing leaseback, they can move their business to a prime location and get the space tailored to their design needs. The owner has the option to purchase at a future date when the business warrants the investment.
Still not sure which one works best for you? Call us to discuss your options. At Wolgast Corporation, all systems are in place to provide the most appropriate delivery method.
Click on the Prezi Presentation below for more information about your construction service options.