Waste in Construction
The Building Smart Alliance estimated that as much as 50% of the cost of a typical construction project is waste. In the book The Commercial Real Estate Revolution, Rex Miller estimates that, of the total cost of a project, 12% is spent on wasted material, 7% is wasted due to poor planning, 10% is wasted due to rework and avoidable collisions between trades, and 8% is wasted by the production, transportation and pricing of construction documents.
Outcomes fare little better. In the report of the United Kingdom's Construction Task Force to the Deputy Prime Minister, John Prescott, on the scope for improving the quality and efficiency of UK construction, Sir John Egan states that 70% of projects were completed behind schedule and 73% were over budget.
However, the Alliance reports that, over time, waste can be reduced by 30% by improving the processes by which we deliver design and construction services and use building information required by that process.
A Better Way
In 2000, construction executives representing major U.S. and international corporations joined together to form the Construction Users RoundTable (CURT). These building owners were regularly experiencing cost and schedule overruns on their projects. They were looking for insights into the cause of these issues and strategies to solve them. CURT members represent over $200 billion in construction spending power, and are today recognized as a driving force behind continuous improvement in the construction industry.
From the CURT White Paper 1202: "The goal of everyone in the industry should be better, faster, more collaborative teams. Owners must be the ones to drive this change, by leading the creation of collaborative, cross-functional teams comprised of design, construction, and facility management professionals."
The Design-Build Advantage
The Design-Build Institute of America (DBIA) has identified a number of advantages to design-build over traditional design-bid-build: "This simple but fundamental difference saves money and time by transforming the relationship between designers and builders into an alliance which fosters collaboration and teamwork." Advantages include:
Single Source of Responsibility
One major advantage of design-build is the ability to provide an owner with a single source of responsibility for all aspects of a project. Clients have a single company they can hold accountable – no questions and no finger pointing. By building a collaborative team that includes the consultants, architects, builders, subcontractors, suppliers, as well as the owner, the design-builder can ensure the owner's goals are met.
As a fully integrated team we can significantly reduce the amount of time from the inception of your project to its completion. Teamwork reduces rework and redesign. Fast-tracking allows us to overlap design and construction stages. Design-build delivery reduces pre-construction time by streamlining buy-out and bidding times.
Eighty percent of the cost of a project is driven by subcontractors and suppliers. In traditional project delivery, they do not get involved until plans are complete. By then it is too late, or very costly, to incorporate and cost savings ideas they could offer. As a part of the design-build team, this input is provided at the start and can be incorporated into the design at no additional cost to the project.