In Memory of Ty Womble, P.E.
The core foundation of true design-build utilizes different specialties as part of the construction and design process. They have a long-term mutually aligned relationship to watch one another’s interests, versus many contracting mechanisms that set the stage for one party to take advantage of another party in the short-term.
Additional efforts are usually expanded in the design process to analyze multiple options which create long-term reduced capital expenditures not only upfront, but throughout the life cycle of construction, and more importantly, the life cycle of the property or infrastructure ownership. This is only achieved when all parties at stake, seek to maximize long-term outcomes together versus short-term outcomes for themselves.
Other parties within the chronological process of development, whether in design or construction, will either be able to bring entrepreneurial talent and strategic performance to the project; or are more and less of a commodity. In this case, there is an ample supply of specialists or subcontractors within this market space, with more quantifiable and transparent pricing structures based on unit rates of service.
Another considerations in strategic alliance structuring, relative to vertically integrated design-build mechanisms, is the allocation of risk. Proper assignment of risk is critical in maintaining long-term relationships, not only on the equity side of the project but on the performance side as well, as many unknown or unforeseen issues can occur in regulatory approval or in construction conditions prior to designs being completed.