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Published 10 November 2014
You will have seen how many schemes have become increasingly challenging for developers to design and construct using the Do-it-Yourself method. Building a large business park on a complicated brownfield site is a far cry away from building one or two houses on an infill or backfill plot. It is useful for you to be aware of the difficulties which your developers face and for you to be able to suggest an alternative method to them.
There is a growing trend for developers to leave it to the experts to build and, in doing so, allocate risk to those well placed to manage it in order to better preserve their profit margin in the long run. For some developments, it makes sense to engage a Design & Build contractor as a 'one stop shop' to take responsibility for delivering them. Here are just some of the reasons why:
Effective management and control over the budget through the use of a single point of responsibility for all the design and construction of the project – short term perceived additional cost is outweighed by being able better to manage risk over the life of the project.
Defects claims are on the up. When adopting the DIY construction method, there is a risk of the developer getting caught in the middle of a squabble amongst the supply chain over who is at fault (not so when engaging a Design & Build contractor).
Design & Build contractors can assist with buildability issues at design stage. With fixed start and completion dates, it is also easier to set delay damages rates and recover financial losses in the event completion is delayed.
Design & Build contractors are more au fait with delivering complicated mixed use schemes involving multiple works packages and logistical challenges.
Alleviates strains on the developer's capability to manage and co-ordinate increasingly high value, complicated packages.
More streamlined procurement method, dealing with only one contractor and therefore one contract. Reduces paperwork, management and administrative time spent and, at the same time, increases the chances of the necessary contractual paperwork being put in place putting the developer in a better position in the event of a dispute.
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