Contract Relationship Options
List of contract choices working with architects
1. DESIGN-BID-BUILD (Traditional method):
This is a good option for possible construction savings. The owner
initiates a contract with the architect and defers General Contractor
services way until blueprints are complete. The architect's tied
directly to the owner from start to finish and the owner chooses their
own contractors. The architect (design professional) prepares
construction documents with his engineering team so the project can be
submitted for permits and sent out to competitive bid. The architect
assist the bid competitive process while representing the owner in his
selection process. This method sometimes has higher design costs, yet it
lowers construction costs substantially by securing competitive bids in
the climate of a construction bid-war. The merit to this method is that
it can reduce overall project cost while also having close
representation with owner/architect in the total process sequence.
2. OWNER-BUILD (On Your Own) Although not recommended, the owner could
contract separately with the contractors of each trade. The owner takes
the lead role and is responsible for getting bids and acts as
construction manager, coordinating the work of individual
subcontractors. You would think this has potentially the lowest cost,
but it may have the highest cost assuming risk of things going wrong. In
this case, the owner assumes the role of the General Contractor and
saves the General Contractor's fee (approximately 10% of construction
cost). The pitfall is that it can result in project overruns if the
owner fails to control costs throughout the bid and construction
management processes. The owner will often piggyback a construction
manager onto the project or ask for special services from the architect
which could add more cost than the 10% savings. This option potentially
has the longest time frame for project completion, depending on the
owner's knowledge and how much time the owner has available to work on.
The owner has to factor in the cost of his/her own time as well which
always is counter productive. Subcontractors may not be loyal to owners
as they would be for there Que of repeat work than with a General
Contractor. Also, the quality of construction work may be hampered due
to inadequate coordination between overlapping trades. This is more
likely to result in additional cost than other contracting methods.
3. DESIGN-BUILD (Turnkey): This gives the owner the best
control of
cost of where its all going from the onset while leaving
less leg work
for the owner from start to finish. The owner contracts with
either one
single entity or parallel contracts for both design and
construction
(Usually an architect and general contractor work both
side-by-side).
Avoid using a designer or any unlicensed draftsman as this
leaves
potential holes with no recourse. An architect team gathers
his
engineers and with the General contractors and work together
in the
design/build progression. The contractor will establish his
cost based
on the known information so that as the project develops in
time, the
Contractor can provide progressive levels of information
from probable
cost (rough guesstimate) to a final guarantee cost once
arrived to
reaching all the engineering portions of the final drawings.
From
schematic to design development phase and into final
documents, the
contractor will work intimately with owner and architect
from each phase
that offer ways to exercise in finding the most
cost-effective ways. By
means and method, a marriage to products with labor arise
efficiently.
This control of of project cost keeps it most efficiently in
real-time.
The good news to design build is that its a fast tract
process getting
quick answers for cost from the General Contractor/his subs
and his
sub-subs without going through additional last minute
rebids, changes
and alternatives that interrupts the project at the tail
end. may even
eliminate some of those pesty change orders. As
results, this
relationship offers the best control of design and
construction quality
to assure proper control. However design-build does
not have to be
for everyone as it does take trust when the contractor
provides numbers
outside the competitive market where in this case unless the
owner
chooses to change their mind and entertained in
terminating the
contractor, they might find less convenient returning back
to competitive pricing. More on expansion to the cumbersome Design-Build
Turnkey option <<link>>
4. PRE-MANUFACTURED HOME
(Vendor Relationship Only on Board) Has potential low
construction cost for extreme weather areas limited to
seasons of
building construction period. Southern California regions
may have no
return value especially in resale value. Construction
materials may be required to meet state, local and including
county fire
codes as there is little flexibility to comply for vendors
including
the fitting of structure to site. Many areas may
not allow such construction due to zoning issues.
Potentially the
quickest construction erection if desired model is
available, yet are
limited by the manufacturers schedules. The choose of
products. material
and finishes are very limited including the
plumbing/lighting fixtures
so the design options may not be there as a custom home.
Remodeling/retrofitting may be
challenging thus lacking some flexibility for the
future
alteration or additions since its a manufacturer item from
unlike
conventional field construction. Pending if a mobile or
prefab home,
financing institutions may not always
providing construction loans beyond the property value which
means it
takes more capital as should,be verified with loaning
institutions
limitations as well as future refi loans as shopping rates
from banks
may be limited or expensive. Remember the quotes you get
from modular
designers does not include total cost for site retrofit,
utilities,
foundations to name a few. Yet, with newer technologies and
some custom
options expanding, the confidence level has change over time
such as 2-d and 3-d modular as well as 3-d printing homes.
SEQUENCE OF SERVICES