Design & Build Procurement

Question 1

What is Design & Build procurement?

Answer 1

• Where the contractor is responsible for completing the design and executing the construction work phase of the project.

Question 2

What are the key characteristics of Design & Build?

Answer 2

• Under JCT, the employers team produces a set of employers requirements, the contractor then responds to the ER’s with their proposals.
• The original employers design team may be novated to the contractor for continuity, or the contractor may appoint their own design team
• The contractor is responsible for the design, planning, organisation, control and construction of the works.
• Design risk is transferred to the contractor.

Question 3

What are the advantages of design & build?

Answer 3

• Single point responsibility for design and construction (contractor).
• Earlier commencement on site is possible if design and construction can be overlapped (reduced project duration).
• Benefit of contractors expertise during design stage (buildability input).
• Design and construction risk rests with the contractor.
• Provides more cost certainty than traditional procurement.

Question 4

What are the disadvantages of design & build?

Answer 4

• The design is only as good as the employers requirements (the employer may find it difficult to prepare a sufficiently comprehensive brief).
• More complex to compare tender sums.
• Employer changes can be difficult to value and expensive.
• The employer may have less control over aesthetics and quality.
• The contractor will build in risk premiums into their tender.

Question 5

When might design & build be appropriate?

Answer 5

• Where there is a need to make an early start on site.
• Where the employer wishes to minimise their risk profile.
• For technically complex projects where the design will benefit from the contractors buildability input.
• Where retaining control of the design is not a priority.

Question 6

What additional insurances might be needed under a design & build contract?

Answer 6

• The contractor and their design team will have design responsibility; therefore, it is likely that additional professional indemnity insurance will be required.

Question 7

What are employers requirements (ER’s)?

Answer 7

• A set of documents produced by the employer to inform the design and construction of the project.
• Documents typically include performance specs, drawings, initial designs etc.

Question 8

What are the contractors proposals (CP’s)?

Answer 8

• CPs are prepared by the contractor which responds to the employers requirements.
• In this document, the contractor will set out a more detailed design (based on the employers requirements), which will require further development throughout the course of the project.

Question 9

What procurement route poses the least risk to the employer?

Answer 9

• Design & build because the design risk is transferred to the contractor.

Question 10

Why does the employer usually pay a premium for design & build procurement at tender stage?

Answer 10

• The contractor will usually factor in an allowance within their tender return in exchange for taking on the design risk.

Question 11

Under design & build, who executes the design for the contractor?

Answer 11

• The contractor may use their own in-house designers or they can appoint external consultants.
• The employers original design team can also be novated to the contractor.