Design-build delivery a safer bet in periods of uncertainty
As the U.S. economy grapples with heightened uncertainty, marked by trade tensions, market volatility, and shifting fiscal policies, real estate developers and commercial property owners face the challenge of making strategic decisions. In such times, adopting the design-build delivery method offers a proactive approach to mitigate risks and maintain project momentum.
In fact, according to a comprehensive study by FMI and the Design-Build Institute of America (DBIA), 77% of owners rated their design-build experience as “very good” or “excellent” — the highest satisfaction rating among all project delivery methods. This strong endorsement reflects the growing confidence developers and property owners place in design-build’s collaborative structure, cost predictability, and ability to deliver on time. As the economy throws curveballs, that kind of reliability becomes not just a benefit, but a necessity.
Embracing design-build offers a strategic advantage
Design-build is a project delivery method where a single entity is responsible for both design and construction services. This integrated approach contrasts with the traditional design-bid-build model, where design and construction services are separate entities and contracts. The design-build method offers several benefits that are particularly valuable during economic fluctuations:
- Streamlined communication and accountability
With design and construction teams unified as a single entity responsible for project success, communication is clearer, reducing misunderstandings and their impact on budget and schedule. The heightened collaboration and streamlined communication ensure that the project stays aligned with the owner’s vision and budget.
- Accelerated project timelines
Design-build projects often proceed faster because the design and construction phases can overlap. The design-builder will engage a project manager early in the life of the project to identify long-lead materials and equipment, permitting and approvals, and critical path work activities, developing a project schedule that allows for design, permitting, vendor bidding, procurement, and construction to overlap. This efficiency allows developers and business owners to respond swiftly to market demands and reduces the time to occupancy, which is imperative when market conditions are volatile.
- Enhanced cost control
Early collaboration amongst the design-build team members facilitates early and accurate budgeting. The design-builder will engage a project estimator early in the life of the project to provide budget data to the project team, including feedback regarding building assemblies, design details, and material & equipment selections that impact the project budget, so the owner can make decisions during the design phase in real time that impact the project budget. This proactive approach minimizes budget surprises, providing greater financial predictability.
- Improved risk management
By consolidating design and construction responsibilities, the design-build method reduces the potential for disputes and litigation. Early involvement and collaboration among design, estimating, project management, and the owner help identify and resolve potential challenges. This unified approach allows for more effective identification and mitigation of risks throughout the project lifecycle.
Making informed decisions amid uncertainty
In periods of uncertainty, the design-build delivery method offers a resilient framework for real estate development. Its integrated approach not only streamlines project execution but also provides peace of mind that your project can maintain momentum while meeting the project goals with certainty.
At DBS Group, we understand the complexities of navigating real estate projects during economic uncertainty. Our expertise in design-build delivery ensures that your projects are executed efficiently, cost-effectively, and with minimized risk. Contact us to leverage design-build advantages and steer your developments confidently through these challenging times.