The design-bid-build delivery model seems like the most cost efficient way to build your project. An architect designs your project, you send the specifications out for bid to builders and choose the least expensive option. The builder has all the designs for the building, so what could go wrong?
Unfortunately, a lot could go wrong. If you are simply going by the lowest bid and not vetting the builders for their qualifications, you could be hiring an inexperienced builder for your project who may not anticipate coding or permit issues, design problems, material cost changes or other problems associated with commercial projects. Not only that, but the pressure to deliver the lowest bid may lead to using low quality subcontractors or materials.
I’ve recently talked to a few people who have had disastrous results with this delivery model. One told me his project, originally bid at $750,000, was now going to cost over $1 million with cost overruns AND be two months late.
So how can you protect yourself if you’re obliged to use this method to identify builders? I would strongly suggest checking qualifications first, then selectively sending your bid request to those who meet your qualification standards. That way, you can weed out any builders without the appropriate experience.
Also, if you’re not obligated to automatically accept the lowest bid, take a close look at the bids. If the price difference is significant, find out what the differences in costs are so you know what to expect from the builder you choose.
Albion Scaccia is a woman-owned commercial construction company in Atlanta providing full service design, build and construction management solutions. In just over 13 years, our focus on client satisfaction has helped us grow into one of Georgia’s premier design build companies. We offer turnkey construction management services to ensure your project progresses smoothly, efficiently and within budget.
Brian Newsome, LEED® AP
Executive VP
August 16, 2010 | In
Company News |
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