A Perfect Pro Forma for Design-Build
by Chris Stanton
Is there a universal formula—a simple solution—for the development of a new or renovated building? Not usually.
Because each project is distinctive, tailored to a specific set of goals and challenges, so too is the plan for its development. Faced with the complexity of the design and construction process, more and more owners and developers are looking to simplify through design-build.
In the design-build process, a single entity contracts with the owner or developer to provide for construction and architectural design services. When design-build is the right fit for a project, the process can provide significant advantages: a laser focus on quality, streamlined communication that can mean cost and time efficiency.
Inflation has deeply impacted the American construction market over the past few years, and the Kansas City metropolitan area is no exception. In fact, Kansas City has led the trend recently with consistent appearances in the top tier of cities affected by construction cost inflation.
As building owners try to keep pace with competitive lease and rental rates, the design-build process offers the advantage of speed. Compared to the usual design/bid/build method, design-build can shave months off of the construction loan, saving interest and getting tenants into a building much more quickly.
The design-builder for a City of Shawnee civic project, fast-tracked the project by submitting the building package for permitting in parts as the design progressed instead of needing to wait until design work was fully completed. Starting construction work while the later phases of design were being finalized allowed a schedule that was 20 percent swifter than the traditional method.
During the design-build process, a project leader devotes considerable attention to finding ways to achieve the best value for the client. Because major subcontractors join the team early in the design process, design-builders can rely on subcontractors’ early input to realize cost savings in materials and labor without impacting aesthetics or function. The collaborative partnerships also allow the team to keep change orders—and related costs—to a bare minimum.
On a current design-build project, the civil designer and excavator, working hand-in-hand, discovered that raising the building elevation and making the detention pond shallower would save money on rock excavation. In a recent office design-build project, the steel contractor suggested a building grid modification that saved over $50,000 and had virtually no impact on the building layout.
These efficiencies can allow the fiscal freedom to actually add to a project’s initial costs to increase value in the longer-term. For instance, sometimes it’s a smart business decision to build the market demand of 20 feet of clear space in a building even if the current client needs only 12 feet. Thinking for the future makes the building much more flexible—and valuable—down the road.
Reflecting a global focus on environmental responsibility, sustainable construction has emerged as a major issue and an opportunity for long-term cost savings. A building’s utility bills and maintenance costs are an everlasting reminder of decisions made during design and construction. With its tight coordination between owner, architect and contractor, the design-build process allows the team to efficiently strategize about sustainable actions and their financial payoff.
On a recent LEED (Leadership in Energy and Environmental Design) Gold office building, the client opted to increase the insulation in the walls and roof to encourage efficiency in heating and cooling. This reduction in the central plant loads has meant a significantly lower monthly utility cost.
Likewise, the new Ronald McDonald House uses a ground source heat pump for heating and cooling, resulting in a monthly utility cost that is half as much per square foot than the organization’s other facility.
Design-build, in the right situation with the right team members, can have a significant positive impact. Clients can realize lower costs, faster time-line, a more efficient and valuable property, and solid partnerships. The bottom line is to create an integrated team that will work together to create a pro forma that makes good business sense.
Chris Stanton, LEED® AP is Chief Estimator, McCownGordon Construction, LLC
P | 816.877.0636
E | cstanton@mcgowngordon.com