What is Design-Build?

What is Design-Build?

Design Build is not new. The modern terminology, “Design-Build”, is a descriptive term for the original Master Builder Model delivery system which has been around for centuries. Embraced by the great civilizations of old, it became the integrated delivery system of choice that helped build most of the architectural wonders of the ancient world.

The Master Builder Model was a method of delivery where a single source was responsible for the absolute accountability for both design and construction. Under the Code of Hammurabi (1800 BC) the oldest known system of laws, Master Builders were held solely responsible for both design and construction of the project. In the ancient world practically all of the major building projects were built using the Master Builders Model. Throughout each massive logistical undertaking, Master Builders commanded skilled craftsmen, procured time-tested materials, and controlled every aspect of the project. A Master Builder was the chief architect, engineer and Builder molded into one. Enduring structures such as the Pyramids of Egypt, the Parthenon and the Theatre of Dionysus are testimony to an age and a process that are greatly admired, though the process was thought to be virtually abandoned by modern designers and constructors.

The Master Builder Model can even be seen in the definition of the word architect. The term architect derived from the Latin term architectus, itself derived from the Greek arkhitekton (arkhi-, chief + tekton, Builder), i.e. chief Builder. Thus the very term architect still carries the concept of the Master Builder Model.

Ancient building was very similar to modern building in that each project often required the coordination of multiple processes, systems and entities required to complete the project. A simple review of a standard project schedule and timeline will demonstrate the hundreds of intricate procedures and processes required to complete even a simple project. Every project, old or new, large or small, simple or complex, required the organization and coordination of multiple disciplines necessary to successfully complete the project. Orderly management of project variables to deal with conditions such as concealed conditions, weather problems, labor and material shortages and many other problems that could pop up when least expected required that the Master Builder be highly experienced in the construction process. If a completed building project was a symphony, the Master Builder became the conductor responsible for the coordination and arrangement of the many different entities and specialists required to build and complete any project. Master Builders were usually well known architects who out of necessity also became Builders. Historically they were responsible for the design and construction of many of the largest structures in ancient Mesopotamia as well as the great facilities of classical Greece. Whether private homes, government buildings or temples to their gods, it fell to Master Builders to be fully responsible for both the design and construction of these monumental structures. Throughout history Master Builders accepted full responsibility for integrating conceptual design with functional performance. To assume anything less than complete accountability for delivering a project was unthinkable and unlawful.

Why is single source accountability so important to a project? Under the typical design, bid and build process, the architect is only responsible for his work, the engineer responsible for his work and the builder is only responsible for his work. Thus, the owner is faced with three entities that will ultimately begin to point fingers back and forth at each other causing the project to be delayed or subject to heavy cost overruns that have become so normal to design, bid and build projects. Such issues have become so standard to design, bid, build that project lenders require large contingencies to cover cost overruns that have become standard to the building process.

When single source accountability is applied, one entity is responsible to the owner for the work from start to finish of the project. Project accountability was the basis for the law in the Code of Hammurabi and today, accountability is still the safest and most important component of the building process. Why is accountability so important? Unfortunately every project is subject to the potential for design and engineering claims, contractor and/or subcontractor performance problems, including construction delays. Other project problems can also include: payment disputes, including mechanic's lien and material-man's lien litigation, construction defect and warranty claims, personal injury claims related to site management, equipment, or materials.

During the late 1990s, the Construction Industry Institute teamed with Pennsylvania State University to conduct a study of design-build construction. They found that, on average, design-build projects were completed 12 percent to 33 percent faster than traditional projects and most importantly the study also demonstrated quality construction in all eight measured categories using the design build method over the traditional design, bid and build method.

Such statistics are solid proof that Design-build construction is not a fad. It’s a proven system that offers design and assembly integration, resulting in reduced costs, minimized project duration, higher quality materials and increased efficiency and productivity for the involved design consultants, contractor and owner. In fact, design build has been proven so successful that most construction experts expect design-build to exceed the conventional design-bid-build approach and become the industry standard in the next decade.

Benefits of the Design Build Method

Why has it been so successful? The reasons are many but the following represent the core benefits of using the design build method.

Shortened Project Delivery Time—Owners perceive the shorter duration of design-build projects as being the most important advantage offered using the design build method. When the same entity is both designing and constructing the facility, procurement and initial construction can commence well before design completion. The last months of the design phase overlap the first months of the procurement and/or construction phase, resulting in time savings compared to the traditional end-to-end sequence. This reduces construction cost and hastens the flow of revenue for the Owner by allowing them use of their facility.

Single-point Responsibility--Nearly as important to owners is the broad scope of the design builder’s responsibility (single source accountability) for the project. In traditional construction, problems with the project could result in blame being passed between the various parties with each pointing fingers at each other ultimately blaming the Owner. The problem arises when the Architect controls the design without input from the Engineers or the General contractor. Once the design is completed, if it is determined during the bidding process that changes need to be made, then the Owner must pay for the architect to make those changes which would not happen under design build. Thus, it is very common for adversarial problems to begin and finger pointing to start between the Architect, Engineer and General Contractor even before the project gets to the actual construction phase. It is a known fact that in many cases, warranties would not be honored and protracted litigation was necessary to obtain remedies because the Architect and the contractor might have blamed each other for the problems. This becomes a nightmare for the Owner.

These problems are eliminated when the design build method is used. In design-build projects, one entity has full responsibility for the outcome of the project, except in matters for which the owner is responsible. If a facility cannot be cooled properly, the design builder is generally responsible, even if the parties do not know the reason for the failure. In a traditional project, engineers ordinarily do not guarantee their outcome of his work. In a design-build project the engineer’s work is subject to and subsumed within a warranty. This is a very important benefit for the Owner.

Minimized Claims and Changes--One laudable consequence of single-point responsibility is the minimization of claims for extras. In traditional construction projects, a contractor is ordinarily entitled to additional compensation arising out of errors, omissions or ambiguities in the plans and specifications. However, in design-build projects, the designer and contractor are the same entity and cannot request extra compensation on account of design mistakes or assumptions. This benefit alone can potentially save Owners tens of thousands of dollars during the construction phase of a project.

There may still be change orders, but they are typically additional work orders, not surprise change orders the Owner was not expecting. These usually occur when an Owner sees major savings and as a result will want to invest those savings back into the facility as upgrades to his project. Thus, if the owner changes the scope or program requirements or if the design builder encounters unanticipated, concealed conditions, a change order is ordinarily appropriate. However, the single largest, traditional source of claims and change orders—problems with the design—is not a concern in these projects.

Warranties--Another consequence of single-point responsibility is that the design builder is responsible for making sure all warranties are dealt with in an expeditious manner.

Packaging Other Services--Some design builders have taken the concept of single point responsibility a step further, assuming additional duties in their contracts. It is common to provide turnkey services, which often include performance testing and personnel training, so the facility is ready to operate. Other firms offer financing packages, either debt, equity or leaseback agreements. In some industries, design builders establish operating divisions offering this service as well.

Continuity between Designer and Constructor--For some facilities, particularly those involving new technologies, it is critical for the designer and constructor to fully understand the technology and related processes. Plans and specifications can communicate the design concepts, but they do not transfer expertise from designer to contractor. In design-build projects, the same entity that had the expertise to design the project also constructs it. This is a huge plus for Owners where acoustics are necessary for complex audio/visual and programmed lighting systems are used.

Design Build Potential Drawbacks and Obstacles

What are the potential drawbacks to design-build construction and how does JCDM Church Builders handle each issue?

Design Build Potential Drawbacks and Obstacles--Loss of Checks and Balances--In traditional construction, the owner retains the designer during the construction phase to act as a watchdog to help ensure that the facility is built as designed. The designer contracts directly with, and is obligated to, the owner. Under design build, the designer and contractor are on the same team and can be, without proper checks and balances, on a contractual level, adverse to the owner. However, it must be noted that it is not uncommon for the architect to also become adverse to the Owner when a builder finds errors and omissions. Typically the architect tries to force a builder to perform work without letting the owner know a problem exists. This creates a major adversarial problem for the owner.

How JCDM handles this potential problem/drawback.

Unlike many design builders who are contractors who must engage separate architects, JCDM Church Builders is a licensed architectural firm. Thus, we are an architect who has the value added service of building. As a State licensed architect, when we are engaged by an Owner, we are responsible by the State board relating to architectural ethics to represent the interests of the Owner. Under a typical engagement with an architect, the architect fiercely protects his design and is usually reticent to allow any cost effective changes that would benefit the Owner. Also, most architects do not have a relevant knowledge or understanding of real world construction costs. That is why most projects that are designed end up going over budget and in some cases causing the project to be tabled because of over budget considerations.

JCDM Church Builders is an architectural firm that builds. As such, we use our extensive construction knowledge and collaborative relationship with our engineers and subcontractors to discuss the project and each important interval and make decisions based on real cost estimates which are in the best interests of the client. Unlike typical architectural firms, at JCDM Church Builders the Owner is allowed to set in each meeting and be a part of any/all decisions that may impact their project. When JCDM Church Builders serves as the project architect the Owner has the benefit of true “single source accountability”. This allows the owner much stronger checks and balances because one entity is legally responsible for both the design consultants and all construction subcontractors and when combined with an Owner being included in the day-to-day oversight of their project, they are assured of project integrity.

Design Build Potential Drawbacks and Obstacles---Less Owner Control--Because the designer and contractor are one, the owner may be without access to the kind of information available on a traditional project. Although the design builder may issue regular status reports, the information in them is usually less useful to an owner than what would ordinarily be provided by a traditional engineer. Similarly, the relationship between the designer and contractor may cause plans to be prepared with less than the traditional degree of detail, which may adversely affect the owner’s ability to understand and control design intent. This drawback can be overcome by advance planning. The contract should specify the kinds of information and detail that the design builder must supply to the owner.

How JCDM handles this potential problem/drawback.

Lack of detail may plague other firms, but not JCDM Church Builders. JCDM Church Builders is detail intensive. Once the working drawings are complete we competitively bid out the project using the open book accounting procedure. This is the most transparent type of accounting in the construction industry. This allows the Owner to have full and open access to every facet of the project cost including; each individual cost by category from all project venders, material suppliers, consultants and subcontractors. To demonstrate our full confidence in our final estimate numbers we offer our clients a Guaranteed Maximum Price (GMP) at the end of the open book phase. Single source accountability and our GMP pricing require that we structure detailed reports and cost estimates that protect all involved entities and the integrity of the project. Our project team consists of the Owner, Project Architect, Engineer and the assigned Construction Project Manager. As an integral part of our executive Design team, the Owner has access to all the intricate details required to design/build the project. Our intense collaborative planning process where the Owner plays a major role has been why JCDM Church Builders has had a 100% project success rate on all of our projects.

From the initial concept stage through completion JCDM has strong budget and cost controls in place to protect the project budget. Estimates will be prepared from extensive company records of elemental cost adjusted for location and time. Such estimates are used as a basis of subsequent work, and more definitive estimates are prepared progressively as information becomes available. As part of our executive team, the Owner has access to all of our project detail and documentation giving him strong control and input to assure project integrity.

Our construction experience and exposure to the competitive bid market assures a high degree of accuracy in budget estimating during the preliminary stages. The working drawings will be continually reviewed by our executive design/build team with regard to construction methods and details, and cost analysis of options will be analyzed with the Owner throughout the design process (Value Analysis). As seen above, our process allows Owner control throughout the entire project.

Design Build Potential Drawbacks and Obstacles--Difficulty Obtaining Competitive Bidding--Design-build projects do not lend themselves as well to competitive bidding. The design builder is chosen at the commencement of the project, and there is ordinarily little competitive pressure. However, competitive pressures can be generated by requiring that each trade contract be competitively bid. And the compensating advantage to the inability to competitively bid the project as a whole is that a firm price and schedule can be guaranteed far earlier than in traditional construction.

How JCDM handles this potential problem/drawback.

JCDM Church Builders is licensed on the federal, State and local level to perform competitive bidding in the best interest of our clients. Once the project working drawings are completed by the architect, we commence an intensive competitive bidding process in accordance with the applicable laws relating to competitive bidding. We categorically bid the project according to the 16 standard divisions of construction, as defined by the Construction Specifications Institute (CSI)'s Master Format which provides a master list of divisions, and section numbers and titles within each division, to follow in organizing information about a facility’s construction requirements and associated activities. Standardizing the presentation of such information improves communication among all parties involved in construction projects. JCDM Church Builders utilizes the OPEN BOOK accounting procedures for each trade and subcontractor including all material purchases. As a result the Owner has full access to all of the competitive bids in each sub-trade category including schedules and budgets based on the working drawings and can review each one to assure that we are obtaining the most competitive bid possible for their project. Thus, when JCDM Church Builders is the Design Builder, the owner can rest assured that he has received the most competitive bid process possible.

Design Build Potential Drawbacks and Obstacles--The Contract--In design-build projects, the owner’s most important protection is the terms of the contract. This is particularly true in light of the loss of checks and balances. There are numerous important contract provisions, and owners will want to carefully consider the various possible provisions in light of the nature of the project. Each design builder’s standard proposal or contract form always favors the design builder.

How JCDM handles this potential problem/drawback.

JCDM Church Builders encourages each of our clients to have our contract reviewed by their attorney and we are willing to allow changes that are fair to both the builder and the Owner.

It is important to note that during the construction phase of the project that we act as a construction manager or CM instead of a typical General Contractor. In the traditional General Contracting method, there has always been a Project Manager, hired as an employee of the General Contractor, who was responsible for the management of each building. It was his responsibility to organize and direct the project, in the interest of the General Contractor.

Construction Management allows the Owner to retain the same type of service, along with the all the support staff which came with a General Contractor, and have the independent Construction Management team, working on a fixed fee, organize and direct the project in the interest of the Owner.

Very simply, the Owner can now consider himself as the General Contractor, with a full construction staff as a part of his team. They all work for him: Full control when you want things your way, full support so things move smoothly and efficiently when you have other things to do.

Just as a CPA or an Attorney becomes your personal consultant on business matters, the Construction Manager becomes your personal consultant for various building needs. He joins with the owner, the Architect and/ or Engineers to form a team of professionals who can work together to investigate any facility situation that may arise, and then provide the Owner with the options available and give him the "tools" needed to make a sound decision. This is the control path that assures you that the end project will have the maximum benefit to you, and not just others.
You are most interested in the decisions which affect Cost, Quality, and Time.

Construction Management gives you direct control over the decisions which control those factors, at the same time; your Construction Management team takes care of the day to day operations. When you want involvement, you have it. When you don't, the Team handles it for you. You get the facilities you want while you continue to manage the things which directly affect the profitability.

Are Energy Audits worth it?

Energy Audits are they worth it?

Much is being said today about building green. On the heels of this new mantra, many companies are pushing churches to perform an energy audit. The problem is that most folks have a negative mindset about what a building green or energy audit truly means. I believe this problem will be self corrected as we being to see how recent energy legislation impact our monthly utility bills. Certainly a “green” mindset must grip the church leadership before any serious inroads can be made. Often, many feel that they have made a major difference when they convince the budget committee to all the maintenance staff to buy more expensive light bulbs that are energy efficient. As noble as this action is, going green means a lot more than changing the light bulbs in a building. Going green is a process.

Action must be taken to help make our churches more environmentally sustainable. To create a healthy building atmosphere requires honest evaluation of what current energy usage actually is. If your ministry is considering a new building or addition to your church, you must incorporate environmentally friendly components into your plan. To accomplish this, you must have experienced architects, engineers & builders who understand how to actually build or remodel a facility to green or LEED standards. (LEED--Leadership in Energy and Environmental Design)

The first step in this process should be a realistic energy audit of your church facility.

This simple process can have immediate and significant benefits, including the discovery of energy inefficiencies and new ways to save major energy dollars depending upon your facility's energy-use scenario. Most companies typically do not recognize how valuable an in-depth energy audit can be to the annual bottom line.

Step 1—Assign responsibilities:
This process must begin with someone assigned to actually conduct the audit. If the facility is large, then an energy management committee may be necessary to perform the required work.


Step 2—Assemble the applicable information:

1. This information should include past energy history from at least the past 12 months. Operational usage should also be reviewed to determine high energy uses from specific operations. Accurate records should be noted relating to past/current rate structure, specific demand and consumption figures. All other applicable fees should be listed for fees relating to natural gas, electric, and/or other fuels.

2. Building design – square footage, location of doors and windows, type of insulation, operating hours, etc. Typically this information is readily available and listed on the latest architectural and engineered drawings. Most drawings can be found the local building permits office.

3. Lighting – This is a very important area and should be listed in detail the types of lights used, total wattage and operating hours for each specific area.

4. Ventilation – Applicable HVAC experts should be used to evaluate the volume of air and size of motors relative to air make-up and exhaust systems. This is an area that has major impact on the operational usage of energy.

5. Process Equipment – size and efficiency ratings of motors, refrigeration equipment, compressors and heat recovery systems

6. Operation and production schedules

7. Assemble and organize all operating manuals and equipment specifications.

Step 3—Building Systems Review:
Specific equipment should be reviewed relating to all building & mechanical systems, motors, etc. to determine their type, size and age. Such information should be easily assessable using equipment manuals, engineered drawings. Audit should also include any maintenance records, production reports. Facility management staff should be interviewed to determine usage patterns, general condition, recent maintenance, etc.

Now you are ready to begin your audit.

The committee should ask the following questions:Use the following checklist as a guide:

Energy Audit Checklist

Lighting: A complete review of existing lighting systems should be compared to new available systems to evaluate the most energy efficient lighting options currently available including; fluorescent, mercury vapor, etc.? Applicable lighting experts should be included to evaluate current lighting usage to determine if certain areas have excessive or unneeded lighting? Questions should be asked: Is sunlight available to use as an alternate? What types of lighting management is available to us; such as dimmers, timers and sensors?

Building Envelope: What is our current insulation value of our building envelope? Close inspections should be made to determine if weather stripping around doors and windows need to be replaced? The building should be inspected to determine if there are an visible cracks around doors, windows and foundations; if found, they need to be properly sealed. Area evaluations should be made to determine if doors/windows are being kept closed to avoid energy escape.

Heating and Cooling: Have furnaces, boilers, chillers and air conditioning systems been checked to determine if they are operating efficiently? A systematic maintenance and update schedule should be created for all HVAC systems including a regular filter replacement schedule. The building should be checked to determine that it is both properly sealed and well ventilated? All equipment should be under a regular maintenance schedule to assure that they are operating at maximum efficiency including evaluating to determine if all equipment is operating properly. All equipment should be under a shut-down and start up schedule according to manufacturers specifications. All exposed parts should be inspected to determine if the are functioning properly.

Energy Usage Behavior:
Are lights, fans and equipment (computer, printers, etc.) turned off when not in use?

Are building temperatures set back when not in use? Are thermostats set to higher or lower than necessary in summer and winter?

Until a reliable energy audit has been performed, a true understanding of how much energy is being wasted cannot be determined. Since our monthly energy costs are a considerable part of our annual budget, leadership should perform a reliable energy audit as soon as feasible to make certain their facility is not wasting energy and costing the church considerable dollars that could be put towards missionary or community ministry. Is an Energy Audit worth it. The answer is unequivocally yes.