Here are 10 Important Lessons Learned from Challenging Design-Build Projects

Updated On 13 June 2023.

Being a design-build contractor is not an easy task. Design Build projects account for 40% of non-residential construction, and researchers at FMI see this percentage growing in the upcoming years. Every day, you will come across new challenges in the design and construction aspects of projects, and if these projects are delayed or failed, a heavy monetary loss will deter your contractor business. The worst thing is that you will lose out to your competitor design-build firms.

Often the blame is given to politics, macroeconomics, a volatile environment, or any other factor. But the problems which are the center of one project are usually not the problems of others. Our experience in numerous design-build projects has helped in recognizing certain factors that are capable of ruining the fate of a project.

To save commercial construction projects, here are 10 important lessons learned from challenging design-build projects.

Lesson # 1: Plan for Success

It is a fact that no commercial construction project is totally free of difficulties. Problems in design-build projects will inevitably arise, but the intensity of those problems might not be the same. Some problems are small while others are more serious. The best way to overcome these problems is that the design-build contractors should plan ahead and address problems as soon as they happen.

• Develop a thorough understanding of the individual roles team members play in the commercial construction project so that you can coordinate with each of them effectively.
• Set up project guidelines for understanding client’s expectations for the design-build construction.
• Having essential digital tools like BIM (Building Information Modeling) software for enhanced collaboration and project efficiency.
• All the best practices you develop should be shared with Project Managers so that any future difficulties can be avoided.

Lesson # 2: Get ready for the approval process of land development

Carrying out a building renovation, industrial construction, or any other kind of commercial construction on any piece of land is a difficult and lengthy process. So the best thing is that you should be properly informed about the design-build processes involved and not hurry your expectations. Learn about your project’s local municipality amendments and become aware of all the permitting agencies who will review the project’s different characteristics. Some tips to help you understand the approval processes of land development are as follows:

• The process of developing land is usually lengthy.
• Before getting along with the project, make sure that the location is properly zoned.
• The success of a design project depends upon the soil’s bearing capacity. So, get the construction site evaluated by a geo-technician.
• Often, every phase of the project requires distinct permitting – demolition, land development, plumbing, fire protection, etc. All this might not be easy to manage.
• It is essential to connect with the utilities like sewer and water. Consider the way you will connect.

Lesson # 3: Develop a robust team

If you have the right team, it will surely make a difference.

• Train all the team members in the implementation of the design-build process and educate them on the differences between design-build and other project delivery methods.
• Make sure that your hired subcontractors are capable of doing the work effectively and efficiently.
• As a design-build contractor, you have to assume the role of a ‘design manager’ who transmits project information between the design team, the contractor, and the owner.
• Your priority should be to build solid and long-lasting relationships with renowned subcontractors as well as other experts.

Lesson # 4: Consider the lead times

A major and common issue faced during design-build construction is handling the management of necessary equipment and materials. Sometimes the lead times are unbelievably long, and the best you can do to avoid such hassles is to place the orders as soon as you see the requirements.

• Share the timelines of the commercial construction project with your suppliers so that they can stock materials according to the team’s workflows by ordering from their manufacturers.
• Choose local over international. Lead times for domestic building materials are shorter than those with international manufacturers.
• Whenever you agree to a purchase order (PO) with a local supplier, don’t forget to mention your expected timelines.
• If the material payments are not done in a timely and hassle-free manner, it can damage the contractor and supplier relationship.

Conducting procurement management by ordering long lead time items early is an important lesson we learnt from our design-build commercial projects.

Lesson # 5: One of the key constituents to success is a project schedule

In comparison to the traditional design-bid-build method, design-build delivery can accelerate design and construction schedules by 102%, as reported by DBIA. Particularly in design and construction projects, various professionals and teams are working together on different tasks. Any lack of coordination may result in frustrating delays and financial losses.

Hence, keeping the schedule on track is one of the prominent lessons we have learnt from our challenging design-build projects:

• Create a detailed and thorough schedule so that every team can function according to the established timelines.
• Another important thing is to properly communicate this design-build construction schedule to all your project members and subcontractors.
• Early engagement and continuous communication with the local permitting agencies fast-track the building approval process.
• Evaluate and prioritize changes in the project according to their importance, urgency, feasibility, and value.

Lesson # 6: Evaluate the scope

The success of any design-build construction project also depends on how clearly the owner defines the scope of work in the RFP (request for proposal) document. The commercial design and construction company must take care of these points:

• You should evaluate every portion of your commercial project scope and make sure that you comprehend and resolve the recognized discrepancies.
• Check if the owner’s functional requirements are defined and coordinated in the RFP document, for example, design criteria, maintenance, and operational criteria.
• As the design-builder, if you find any specifications ambiguous or incomplete, seek clarification from the owners.
• Make sure there is a ‘change order’ provision mentioned in the design build contract.
• Moreover, it is vital to get rid of “scope creep” – little and superfluous items that creep into the design project and increase unnecessary time or cost.

If the scope of work is not clearly defined by the owner, expensive change orders have to be implemented by the design-builder after the contract award. This leads to significant cost overruns.

Lesson # 7: Identify and Manage Risks

With double responsibility comes double risks. In design build construction, the contractor is liable for both the design and construction errors. Hence, a design build contractor has to identify risks ahead of time and resolve them before they cause serious damage.

Below are some of the risk management best practices we apply in our design-build projects:

• Identify potential risks such as design flaws, equipment damages, or on-site injuries, and clearly announce plans to mitigate them.
• Maintain quality workmanship and avoid negligence or omissions by construction workers.
• Check if the owner has allowed for contingencies to cover unexpected costs for a fixed-price design build contract. In the absence of contingency funds, you may have to face the losses.
• Ensure that as a design build contractor, you keep all the stakeholders informed, submit progress reports every week, and explain them project issues.
• Always be transparent with the business owner about potential risks, or else it will become an excuse for them to hand over the project to another commercial contractor.

Remember, if your construction company has a guaranteed warranty, you will be liable for repairs throughout the contract period (usually 1 year).

Lesson # 8: Communication is key

After handling design-build projects of diverse natures, we have learnt the lesson of keeping the flow of communication to complete construction projects on time. Here’s how you can achieve it:

• Create a structured collaboration system with the business owner, project manager, designers, and key subcontractors to meet regularly, discuss work elements, and review the project’s execution.
• The communication lines should always be kept open, not only with the design professional or the owner but all the vendors and subcontractors should also be able to communicate with you.
• The owner should make and communicate timely decisions on the design-builder’s performance.
• If there is any potential issue that might affect the commercial contract’s price and schedule, then the design-build contractor should immediately inform the owners.

Communication is a pivotal step in commercial construction that helps in understanding parties’ mutual goals and delivering a quality-driven and reliable outcome.

Lesson # 9: Every project meeting is important

The best way to communicate and put forward your plans for the project is by arranging project meetings. These meetings also bring out the design and construction issues faced by subordinates as well as suppliers. Ensure that the project meetings are conducted regularly. It is necessary to plan the meetings properly, and all the major players should attend them to bring out the desired results.

Some important tips which can help in extracting the maximum from the project meetings are as follows:

• Develop a robust agenda for the meeting and ensure that you don’t miss any important things.
• You can start the meeting by reviewing the previous work minutes from preceding project meetings. This solidifies the agenda for the meeting.
• Make sure that all the correct subcontractors are present at the project meeting.
• All the significant issues related to the building’s design and construction should be put forward and discussed to bring effective solutions.
• Everyone present at the meeting should be allowed to express their thoughts. If any questions arise, they should be properly answered.

Lesson # 10: There are times when mother nature rules

One factor which even the best design-build contractor fails to predict is the weather. By understanding historical weather data, you can predict future weather patterns, or use technologically advanced weather forecast tools and alert systems. In times of adverse conditions,

• Disconnect all types of power connections
• Secure lightweight construction materials or structures
• Put protective covers over heavy equipment
• Protect windows and doors made of plywood from glass breakage and water intrusion
• Immediately stop employees from working on scaffolding and secure it to the building
• Your construction team must have access to emergency supplies and medical aids

No doubt, meticulous planning is necessary, but you should have flexibility in your construction plans. This helps in making adjustments when mother nature rules.

Conclusion

Whenever a design-build project starts, challenges naturally occur as you manage two different aspects together. Considering our several years of industry experience, the lessons we have learnt from challenging design-build projects include keeping a detailed plan ready, obtaining land development approvals, evaluating the scope of work, proactive risk identification and mitigation, schedule management, and promoting a collaborative and integrated project culture. Taking these steps will minimize your problems at the start of the design build construction and lead to a smoother execution.

Constructive Solutions, Inc. works with designers and construction professionals with the highest degree of collaboration and innovation. We offer top-notch design-build services and create a quality end-product under budget and schedule.

Contact us today to request a quote for your project.

FAQs

What type of client should I partner with for a design-build project?

An owner and their representatives should be knowledgeable, responsive, and capable of making quick, sound decisions.

What’s the difference between handling a design-build and a traditional design-bid-build project as a commercial contractor?

The key difference lies in the level of involvement as a commercial general contractor. In design-build projects, contractors take on an integrated and collaborative approach with the owner. Whereas, in traditional design-bid-build projects, their role is limited to handling the construction of the approved design. Read here to understand their differences in detail.

What are the best practices for subcontractor management in commercial design-build projects?

The following best practices can be applicable to managing subcontractors:

• Establishing clear expectations
• Timely communication
• Setting key performance indicators (KPIs)
• Periodically evaluating the work of subcontractors

Relevant Resources:

• Performing Due Diligence To Select The Right Design Build Firm
• The Benefits of Construction Manager/General Contractor Services (CMGC) versus Design-Build Project Delivery