Defined:

Traditionally the process of developing a new building began with the owner hiring an architect who produced a set of plans. The plans were then sent by the architect to general contractors to price. The price was delivered to the owner/architect on a predetermined bid day and the general contractor with the lowest price on bid day was awarded the job. There have been many successful projects completed under this method of construction. However, owners often found that while this method produced an initial low price, it could lead to many other problems. Among the problems owners found included:

1. Numerous change orders. Change orders arise from bid plans that are not clear or missing necessary details. Change orders generally result in high cost to the owner.

2. Lower quality. In order for the general contactor to have the low price on bid day, he must use subcontractors who gave the lowest price on bid day. Subcontractor’s bids are faxed, telephoned in or emailed to the general contractor, often just before the bid deadline. There are times when the subcontractor with the lowest bid is not known by the general contractor who must make a decision to use the bid without having time to research the subcontractor’s experience and reputation. This obviously can lead to using lower quality subcontractors which will affect the quality of the finished building.

3. Increases the chances for litigation. This method of construction potentially leads to an adversarial contractual relationship between the owner/architect and the general contractor.

4. Construction delays. Each of these situations can potentially lead to delays in completion of the building. The architect must produce a full set of plans prior to bidding, bidding takes time, negotiating the contract takes more time, approval of change orders takes time, disputes take time, etc.

Our industry recognized the potentially adversarial relationship the traditional method of construction produced and developed the Design/Build method of construction. Design/Build results in a team approach to the construction process that reduces risk for the owner and general contractor. Using the Design/Build method of construction, the owner hires the general contractor first. The general contractor is responsible for hiring the architect/engineer for the job. This results in the general contractor being involved in the design of the building from the beginning.

Advantages:

1. A higher quality building. The owner chooses the general contractor based upon experience and reputation not just price. The general contractor is then able to choose subcontractors with these same characteristics instead of using subcontractors he did not have time to research on bid day.

2. Owner, general contractor and architect/engineer work as a team.

3. The building can be “Fast Tracked”. This results in the building being completed quicker. A “Fast Tracked” project is designed, permitted and constructed in phases. For example, the civil (site) package is designed, permitted and potentially started before the building’s foundation plan is completed. The building’s foundation plan is designed, permitted and started before all the architectural or plumbing, mechanical and electrical are completed. Etc.

4. Often leads to a better value if not a lower price. Change orders are minimized because problems are worked our during the design phase. Construction is completed quicker which leads to lower labor cost. The team approach minimizes potential for litigation. A better quality building that reduces future maintenance expense.

About Coram Construction. We are a full service general contractor. Whether you choose the Design/Build or a more traditional method of construction, you will find Coram Construction has the experience and reputation to successfully complete your building project. Please browse our web site to learn more about our company and our mission to “Build the Best Buildings—Better”