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Site Manager – What’s the difference between a Design & Build project Vs Bid-Build
Design & Build / D & C: Using the Design & Build method, the developer or Owner hires a single Australian construction company to complete both the design of the project and perform the build within one contract. The construction company which has been engaged to both Design & Build under contract may sub-contract portions of the design or construction our to other entities, usually these companies who carry out these type of Design & Build projects would engage construction recruitment agencies to staff these projects based on the type of build being performed.
Typically a Design & Build Project will be far more difficult for a Site Manager to oversee due to the company he or she’s employed by, has designed the project. Therefor any changes, mistakes or omissions in the design can be costly and if the Site Manager hasn’t had experience in the A-political side of these builds they may find themselves back on the construction recruitment market.
Bid-Build: Under the method, the builder typically bids for the project either as a conforming tender or a non-conforming tender, the developer then issues the tender to capable builders in the acceptance of a fixed price contract. This means the design firm engaged delivers 100% of the design and the designer bears no contractual risk to the builders. These are typically easier for site managers to build as it allows variants to be picked up within the construction process, variations to be submitted, approved and paid including builders margins.
Design & Build projects are risky for the following reasons:
- There is less scope for variations to the developer
- The builders may cut corners to save money and time
- Builders take on more risk therefor need to finish the projects fast which may lead to decisions of price over qualified trades, this may lead to serious quality issues
- Construction management insurance higher for the designer and builder for claims arising out of the procurement, supervision, coordination and management of trade subcontractors
- Time blow outs
- Re-negotiations of critical subcontracts
- Critical path interruption
- Liquidated damages
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