What are the key design-build risk factors to consider in the pre-construction phase?

1 Scope definition

One of the main challenges of design-build is to define the scope of the project clearly and comprehensively. Unlike traditional design-bid-build, where the owner provides detailed specifications and drawings, design-build relies on performance-based requirements and functional objectives. This means that the design-builder has more flexibility and responsibility to develop the design, but also more uncertainty and ambiguity to deal with. Therefore, it is essential to establish a clear and realistic scope of work, based on the owner's needs, expectations, and budget, and to communicate it effectively with all the stakeholders.

2 Contract terms

Another critical aspect of design-build is to negotiate and agree on the contract terms that will govern the relationship between the owner and the design-builder. The contract should cover the scope, schedule, budget, quality standards, payment methods, risk allocation, dispute resolution, and other relevant issues. The contract should also specify the roles and responsibilities of each party, as well as the level of collaboration and integration required. The contract should be fair, balanced, and flexible, to allow for adjustments and changes as the project progresses.

3 Design quality

Design quality is a key factor that affects the success of design-build projects. The design-builder is expected to deliver a high-quality design that meets the owner's requirements, complies with the codes and regulations, and optimizes the construction efficiency and performance. However, design quality can be compromised by factors such as time pressure, cost constraints, incomplete information, design errors, and changes. Therefore, it is important to implement effective quality control and assurance measures, such as peer reviews, value engineering, constructability analysis, and feedback loops.

4 Team selection

Team selection is another vital factor that influences the outcome of design-build projects. The design-builder is responsible for assembling and managing a multidisciplinary team of designers, engineers, contractors, subcontractors, and consultants, who need to work together seamlessly and harmoniously. However, team selection can be challenging by factors such as availability, compatibility, experience, expertise, and trust. Therefore, it is important to select team members based on their qualifications, track record, reputation, and fit with the project's goals and culture.

5 Risk management

Risk management is a core function of design-build projects. The design-builder is expected to identify, analyze, evaluate, and mitigate the potential risks that may arise during the project's life cycle, such as design changes, delays, cost overruns, defects, claims, and disputes. However, risk management can be difficult by factors such as uncertainty, complexity, variability, and interdependence. Therefore, it is important to adopt a proactive and systematic approach to risk management, such as risk identification workshops, risk registers, risk matrices, risk response plans, and risk monitoring and reporting.

6 Stakeholder engagement

Stakeholder engagement is a crucial factor that affects the satisfaction and acceptance of design-build projects. The design-builder is expected to communicate and collaborate with the owner, end-users, regulators, community members, and other stakeholders, who have different interests, expectations, and perspectives. However, stakeholder engagement can be hindered by factors such as lack of transparency, involvement, feedback, and alignment. Therefore, it is important to establish and maintain effective stakeholder engagement strategies, such as stakeholder mapping, communication plans, stakeholder meetings, and stakeholder surveys.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?