Design-Build: Contractor/Engineer relationship 1

[JAE]

Just curious about how others have worked with design-build in the U.S. We've currently got an on-going relationship with a design-build contractor. We've done about 10 projects with them over the course of 6 years and an issue has emerged regarding our up-front design efforts (prior to our design-build team getting the project).

Typically, our contractor partner has asked us to do quick up-front design for them based on the owner's solicitation package (which usually includes 10% to 20% design plans - always without any structural framing).

The issue is this: we do a lot of this work up-front at risk, with little or no compensation. If we don't get the job, we loose the cost of doing this preliminary work. Do other firms do design-build in this way, with no up front compensation, i.e. totally at risk? Or do they charge a nominal fee to cover their direct costs (no profit included)?

Just curious as to what others have done.

 

[Taro]

I don't think this is really a design-build issue. The same concerns apply to any project deliver method. The amount of up-front work you are willing to do depends upon how much you are willing to risk to get the project or develop the business relationship. If you find that it is worth the risk, you will do the up-front work. The up-front work may give your team a competitive advantage that makes it more likely to win the job. Or if you are trying to get your foot in the door for a new market sector, you might take the risk in order to "buy" the job. If you find it's not worth your risk, you will either demand payment for the work or work with other clients.

 

[Rentapen]

It would seem after working with this contractor that he knows your design direction and either thinks he can copy it or disagrees with this last one and don't want to pay, ie, to move on to someone else. Last one first; thats the price you pay in this business. just like the store if someone doesn't like what he sees he doesn't have to pay unless you have a agreement. On the copy bit, if you can prove he "stealing" your style you can try to recover but usual that gives "you" a black eye. A contract can be used but sometimes more then one design house is used. Mark it up to business and ask for retainer up front, sometimes they pay sometimes they don't, then move to plan "B" ;-)
Have a good one.
Rentapen, Toledo, Ohio, USA

 

[LPPE]

My two cents - I'm not a big fan of design-build at all. Like you said, you usually only get 10-20% done plans. So you give someone preliminary member sizes based on those plans, and then if they change down the line someone always looks to blame someone else, or get a change order, or whatever. Nothin but headaches.