Design and Build - Advantages and Disadvantages PDF

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Summary

Advantages and Disadvantages of Design and Build Procurement...

Description

ADVANTAGES OF D&B TO CLIENTS

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Construction can start earlier, reducing the overall project delivery time from inception to completion

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A lump sum can be obtained before the design is complete

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The employer only has one organisation to deal with - one point of responsibility once the design and build contract is awarded

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The employer can engage with the contractor and their specialists subcontractors and suppliers early in the design process to get a more practical build-able solution

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The possibility of reducing overall costs as contractors may be able to design specialist elements at a lower cost than professional consultants

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The ability to adopt a two stage procurement approach

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The ability to novate the design team to the design and build contractor

DISADVANTAGES OF D&B TO CLIENTS

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If the specification is too open to interpretation, the contractor may exploit this to their advantage, proposing specifications for products that are the lowest grade possible to achieve the basic requirements in the specification

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Tender returns may be difficult to compare if an inadequate pricing document is not included with the tender documents

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The employer may pay more if they ask the contractor to take on an unreasonably high level of risk due to a lack of design clarity at the point of tendering

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The quality may be compromised if the employer’s requirements do not protect the employer adequately by way of ensuring specifications are adhered to

SINGLE-STAGE DRAWBACKS Several contractors will compete for the contract based on price. Separating the design development and construction process exposes both the contractor and the customer to high levels of risk Significant expense and effort expended by the bidding contractor (with only a small chance of a contract award), and a high probability that the lowest price is based on under-developed and incomplete design information, leaving scope for dispute at a later date....