Contracts - Design-Build vs Design-Bid-Build

Throughout the years the traditional contract between the owner and the architect was the Design-Bid-Build. However, In an effort by the owners to lock in cost, Design-Build contracts came into existence. Let's examine these two delivery methods.

The Design-Bid-Build. This delivery method consisted of a series of contracts:
First is the contract between the owner and the architect (AIA B141) for design and engineering services, overview of contractor bidding or assistance to the owner in negotiating with a General Contractor, and construction administration.
Second, there are contracts between the architect and his consulting engineers. The engineers work for and are paid by the architect. This ensures the architect gets the best engineering for the project
Third, The project is bid or negotiated with a general contractor.
Forth, The owner signs a contract with the Genral Contractor to build the facility with the architect inspecting the project during construction.

What are the pro's and con's:

           Pro's

• There is nobody between the owner and the architect. The architect is giving his best recommendation on quality vs price.
• Most projects have value engineering during the design and construction phase. Each value engineering change usually results in a cheaper and usually more inferior product being used in exchange for a cheaper price. In this delivery system the architect is bound to the owner to give his true opinion as to what is being sacrificed and how it will affect the project. He also tells the owner if he thinks the exchange is a fare deal.
• The architect reviews and helps the owner choose which contractors will be allowed to bid on the project. He gives his opinion to the owner about each contractor. This reduces the risk of getting poor contractors on the project.
• The architect observes the project during construction and has the ability to reject work not in compliance with the contract documents.
• The architect reviews and approves the pay application from the general contractor.  This ensures the owner doesn't pay for work or materials not yet delivered or performed.
  
  Con's

• Price is based on the contract documents. Changes to them or to the timeline can result in Change Orders

Now let's talk about the Design-Build system. This delivery method consisted of a series of contracts:

First and primary is a contract between the owner and the general contractor. In exchange for a guaranteed price, the owner gives the general contractor total control over the design and quality of materials and design.

Second, there is the contract between the general contractor and the architect. The architect works for and takes total direction from the general contractor. This ensures the general contractor can control the price. There is no checks and balances here. Price trumphs quality or good engineering.  The architect has no loyality due to the owner and doesn't contradict what the general contractor wants to do.

Third, there is the contract between the general contractor and the engineers. The engineers work for and are paid by the general contractor. This gives the general contractor the final decision on the engineering.

Pros and Cons

          Pro's

• The owner receives his project for the price that was agreed upon.

          Con's

• There are no checks and balances on price vs quality.
• The general contractor has ultimate approval on the quality in the field.
• The architect and engineers don't give the owners input into the quality of the project.
• All value engineered items by the sub contractors are usually approved reguardless how it cheapens the final project. 
• The ultimate project can turn out more expensive for the cost vs quality in comparison to if the project was designed and bid with the cheap value engineered option incorporated. 
• The lifetime of the building componients are usually shorter.

 With that being said, I have seen several projects successfully constructed both ways. I do feel the traditional Design-Bid-Build system is the safest for the owner. If you do persue the Design Build method on your project, it is imperitive that you get a vary ethical G.C..

What are your thoughts?

Views of our latest completed project in October 2011

We are pleased to announce that we have completed the new Holiday Inn & Suites in Stroudsburg, PA. The hotel opened in October 2011. Check out the project at:

https://picasaweb.google.com/102546802394771593704/HIXPA#

Green Architecture

What is meant by Green Architecture? It is the creation or renovation of buildings so they have a minimal impact on the environment. These are overwhelmingly Leed Certified buildings by the USGBC.

 What is meant by a USGBC Leed certified Green building? What is sustainable design or a green building? What does green architecture mean anyway?

 Green Architecture also known as Sustainable Architecture or Design is a general term that describes environmentally-conscious design techniques in the field of architecture.

 Green Building, also known as green construction or sustainable building, is the practice of creating structures and using processes that are environmentally responsible and resource-efficient throughout a building's life-cycle: from siting to design, construction, operation, maintenance ...

 

To talk about green architecture or sustainable design, we would be remiss if we did not mention the main organization that governs green design. The foremost organization of green design is the U.S. Green Building Council. Green design in the United States is overseen by the most part, by the USGBC (U.S. Green Building Council). The USGBC is a nonprofit organization dedicated to sustainable building design and construction. They are also the developers of the LEEDS Building Rating System. LEED is an internationally recognized green building system. It can be applied to both commercial and residential buildings.

 Lead measures site sustainability, water efficiency, energy and atmosphere, materials and resources, indoor environmental quality, location and connectivity, awareness and education, innovation and design, and regional priority.

Buildings can earn a maximum of 110 points under Leed certification. Building ratings are as follows (basic Certified 40+ points, Silver 50+ points, Gold 60+ points, Platinum 80+ points).

 

There Are Two Levels Of Leed Accreditation.

 

The LEED Green Associate credential is intended for professionals who want to demonstrate green building expertise in non-technical fields of practice. The Green Building Certification Institute (GBCI) has created the LEED Green Associate credential, which denotes basic knowledge of green design, construction and operations.

 The LEED AP credential provides a standard for professional participation in the design and construction phases of buildings. LEED AP’s have specialties such as the LEED AP BD+C (for building design and construction) of high-performance, healthful, durable, affordable and environmentally sound commercial, institutional, and high-rise residential buildings.

 

Credit toward your building Certification (for having a design professional on the team) only counts if your design professional is a LEED AP with specialty such as LEED AP BD+C.  LEED Green or LEED AP alone doesn’t count toward this credit.

 The overall goal of Green Buildings is to reduce its’ environmental impact.

 Some Elements Of Leed Or Green Certified Buildings Include:

• Sustainable Sites
• Pollution Prevention
• Development Density & Community Connectivity
• Brownfield Redevelopment
• Alternative Transportation (public transit, Bicycle storage, Parking)
• Site Development (protect –restore habitat, open space)
• Storm Water Design (quality & quantity)
• Heat Island Effect
• Light Pollution Reduction
• Water Efficiency
• Water Use Reduction
• Water Efficient Landscaping
• Innovative Wastewater Technologies
• Energy & Atmosphere
• Commissioning of the Building Energy System
• Fundamental Refrigerant Management
• Optimize Energy Performance
• On-Site Renewable Energy
• Green Power
• Materials & Resources
• Recyclables
• Building Reuse
• Construction Waste Management
• Materials Reuse
• Recycled Content
• Regional Materials
• Rapidly Renewable Materials
• Certified Wood
• Indoor Environmental Quality
• Indoor Air Quality Performance
• Environmental Tobacco Smoke
• Outdoor Air Delivery Monitoring
• Indoor Air Quality Management Plan
• Low-Emitting Materials
• Indoor Chemical & Pollutant Control
• Controllability of Systems
• Thermal Comfort
• Daylight & Views
• Innovation in Design
• Regional Priorities

As you can see there is a lot more to Green Architecture (sustainable design) than most people know. You should bring on a Leed AP (with specialty) accredited architect at the onset of your project prior to purchasing any land to maximize your LEED rating and minimize your cost.

Energy Savings in Commercial Construction, Part One

Today, we will be discussing fenestration. Fenestration is the design and placement of windows in the building. In the early 60s and 70s buildings were constructed with a lot of glass. The focus was more on human comfort rather than energy conservation. During the energy crisis of the 80s, the focus shifted away from human comfort to energy conservation. School design went from total window walls to solid structures with small openings. This achieved the gold of energy conservation however, the children felt more isolated from nature and less conducive to learning. Codes became more stringent on energy use and worried about solar heat gain. Today, with the advances in technology, we are able to accomplish both of these goals.


In fact, with the development of LEED (Leadership in Energy and Environmental Design) the USA has brought energy conservation and human comfort to the forefront of discussion. Leed recognizes the importance of both energy conservation and human comfort. The use of daylight is encouraged through credits toward Leed certification. By using insulated windows, shading devices and indirect natural lighting, building managers can now cut power consumption, while offering a more natural light and a stimulating environment.

As we start evaluating fenestration, coupled with other energy-saving techniques such as solar panels and vegetative roofs, we see a significant reduction in power usage, which translates into energy independence in the long run. And today with the many tax incentives, there are little reasons remaining not to consider energy conservation on every development

This discussion is also running on Facebook at HRH Architects, Inc. under discussions

Stimulus Money vs Development Loans

For anyone who follows the stock market, you can see almost all sectors showing growth. Is this growth or just stimulus money? It is my opinion that this has just been a combination of stimulus money to the banks along with downsizing of companies.

To date, we have seen several financially strong companies that have not been approved for their development loans. You have to wonder what the Fed was thinking giving money to the financial sectors with little or no strings attached. These banks shored up their holdings, refusing to loan these funds until the interest rates rose high enough to make a windfall on our (The American People's Money). The fed should charge these institutions double digit interest on all our money they borrowed that hasn't been loaned out to the private sector. The economy will be held back until the banks start loaning the funds to businesses for development and growth.

The time has come to move beyound this stagnation.