What is Design-Build Services?

In any building project, there is need to balance the elements of time, quality and cost, which, in many cases, can best be achieved by the Architect performing Design-Build Services.

The building industry and the architectural profession have devised several methods of project delivery with the ultimate goal of handling projects in the shortest possible time, at the lowest cost and at an acceptable quality and performance.

An Architect with his education, training and expertise qualifies him to take a direct role in the project, from conceptualization to implementation.

Design-Build Services simplifies and expedites the process of project delivery, aside from providing added emphasis for a creative and cost effective solution.

Under this type, the Architect renders professional services in the implementation of his design. In Design-Build Services, he assumes the professional responsibility and civil liability for both the design and the construction of the project.

There are two type of Design-Build Services:

A) Design-Build Services by Administration: includes the Architect’s Regular Design Services and when the various phases of design services are completed, the Construction Phase goes beyond periodic inspection and assessment.
Under this mode, the Architect is responsible for the following:
a. Preparation of schedule of work, program and estimates of materials, labor, transportation, equipment and services.
b. Organizing and hiring of construction personnel, designation of duties and remunerations thereof;
c. Negotiation and entering into contract with piecework contractors and evaluation of work accomplishments thereunder;
d. Procurement of materials, plants and equipment, licenses and permits;
e. Authorizing and undertaking payments of accounts;
f. Keeping records and books of accounts;
g. Negotiation with Government and private agencies having jurisdiction over the project; and
h. Managing all other business transactions related to the project construction/implementation.

The construction phase is done with the following conditions:
a. All costs of labor and materials are paid directly by the Client or through a revolving fund provided by the Client. The Architect does not advance any money for payment of expenditures connected with the work.
b. The Architect prepares a detailed estimate of the project as reference for the construction.
c. The Architect may appoint, subject to the Owner/Client’s approval, a construction superintendent, purchasing agent, timekeeper and property clerk aside from the usual labor personnel required. Salaries of such persons are paid by the Owner/Client and not deductible from the Architect’s Fee under the Standards of Professional Practice (SPP).
d. Cost of all permits, licenses and other incidentals to the work are paid by the Owner/Client.

B) Design-Build Services with Guaranteed Maximum Project Construction Cost : essentially the same as Design-Build Services by Administration except that the Owner/Client is provided a guaranteed maximum project construction cost for the construction of the project.

The Owner/Client is given an estimate of the project, and upon completion, if there is realized savings from the estimated project construction cost; it is divided equally between the Owner/Client and the Architect.

The project construction cost is guaranteed by the Architect not to exceed Ten Percent (10%) of the estimated project construction cost. Should the actual cost exceed the estimated project construction cost plus Ten Percent (10%), the Architect shall be liable for the excess amount but only up to the amount of his administration Fee.

Should there be additional expenditures beyond the guaranteed maximum project construction cost which are due to legitimate change/variation orders (CVOs), extra work orders (EWOs), substantial escalation of prices of the costs of materials or labor as evidenced by data certified by a nationally recognized agency such as the National Economic Development Authority (NEDA), or to other causes not attributable to the fault of the Architect, the additional costs shall be borne by the Owner/Client.

Here is an interesting presentation by Arch. Rafael Jun" Briones" on this type of services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Slides courtesy of Arch. Rafael Briones Jr., uap

arch_rabj@yahoo.com