July 2024
Design & Construct Vs Traditional Procurement Approach in Commercial Construction
In an ever-evolving landscape of commercial construction, the Design & Construct approach is emerging as a game-changer in the industry. It’s really challenging the traditional procurement model by fostering collaboration and streamlining project delivery.
We have answered some of the top questions about Design & Construct vs Traditional Procurement in commercial construction:
1. What is the main difference between these approaches?
In a traditional approach the client first engages an architect who then designs the project, arranges engineering and approvals, then they go out to find a builder to quote. Design and Construct is where the client uses the builder to work through the design process and manage approvals etc. This means the builder can help through the design process by advising on realistic costs.
2. What are the key benefits of the Design & Construct approach?
There are several advantages to this approach, such as single entity managing both design and construction, reducing risks for the client. Overlapping design and construction phases results in shorter timelines, leading to faster project delivery. Improved collaboration between the design and construction team makes it much more cost-efficient and helps to lower costs.
3. What are some challenges with traditional procurement?
Traditional procurement processes may result in longer timelines due to separate contracts contributing to delays and extended project duration. There is an elevated risk of disputes between parties stemming from miscommunication between designers and contractors, leading to conflicts and issues during construction. Moreover, there is the potential for higher overall costs due to inefficiencies in coordination.
4. How does the design & construct approach impact project timelines?
Design & Construct results in a shorter project timeline because only one party is involved, reducing the chance of changes and allowing quicker decision-making and problem solving.
5. Which approach tends to offer better cost predictability?
Design & Construct generally provides better cost predictability as contractors are involved in the early design process, helping to identify potential cost issues before they arise.
6. How does client involvement differ between the two approaches?
In Design & Construct, clients will have more continuous involvement throughout the process, whereas in the traditional procurement it often requires the client to engage primarily during the initial design and then in the final stages.
7. Is Design & Construct suitable for all types of projects?
Design & Construct is highly effective for many commercial projects and depends on the project size, complexity, and specific client needs. Smaller and simpler projects may still benefit from traditional methods.
8. What role does risk management play in both approaches?
Using the Design & Construct approach, risk is managed in a more collaborative way, reducing potential disputes. In the Traditional approach, risks are often divided between parties, leading to an increased potential for conflicts.
9. Can you provide an example of a successful Design & Construct project Falcon Building Group have completed?
Falcon Building Group worked with a large scale Tasmanian Oyster Processor to design and construct their new changerooms, offices and amenities. By working collaboratively with our client we were able to simultaneously manage the council approval process while providing value engineering advice that provided a significantly more efficient use of space, and resulted in a practical open plan design. When it came to colour selections our design team worked with the client and were able to provide a range of solutions from previous project which saved the client valuable time through the selection process.
10. How does each approach handle change during the project?
Design & Construct allows for more flexibility in accommodating changes due to integrated teams, while Traditional Procurement may encounter challenges due to the need for formal approvals and changes across multiple contracts.
Here at Falcon Building Group, we complete projects for our clients under both of these delivery models, and sometimes a hybrid of both! However, we do recommend you consider the benefits of a design and construct delivery model for your next project as it allows us to collaborate to develop solutions that meet your requirements.
Do you have a project in mind? Contact us now on (03) 6310 8282 or send us an email at sales@falconbuilding.com.au
We can’t wait to hear from you!