Is Design/Build More Expensive?
GMT Home Designs, Inc.
A New England architecture firm, practicing user-centered design for residential and light commercial projects.
by Glenn M. Travis, Principal, GMT Home Design
There are two methods used in home renovation and custom home construction. One is the traditional design-bid-build approach; the other is design/build, which involves much closer coordination between designer and builder.
Design/build isn't inherently cheaper or more expensive. The initial 'sticker price' may be higher, but better coordination on estimates and reduced change orders mean that the contracted price in design/build is more likely to match your final cost.
To illustrate this point, here's a nice comment on Houzz from one of our clients, regarding both visibility and cost for a significant home renovation:?
?"The design fee is set up front and ended up being lower overall than a by-the-hour professional we had on another project…. In a meeting with GMT, the General Contractor presented a very detailed timeline and budget (both were met with very few changes). Fast forward six months, and we are thrilled with our new modern space."
So why does this cost question come up frequently — what's the deal with design/build costs? Let us explain.
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PERCEPTIONS OF WHY DESIGN/BUILD WILL COST MORE — AND WHY THEY AREN'T ALWAYS ACCURATE
We talk to hundreds of homeowners every year. In these discussions, we've found three main reasons for the belief that design/build is going to be more expensive.?
The perception that design/build companies are premium firms.?
Well, this perception may have started with a kernel of truth. The design/build method first gained traction with companies doing more complex construction and remodeling projects, which tend to have higher costs and therefore attract high-end firms.
On the other hand, more companies are just tossing the 'design/build' label on their work, because customer demand for it keeps growing, and they don't want to miss out on those jobs. So, you may find contractors saying they offer design/build at low, low prices — but they are looking for the lowest-cost design partners (or vice versa) rather than actually providing the level of cooperation, coordination, and communication that true design/build requires.?
So, today you can certainly encounter non-premium firms claiming to do premium design/build work. You'll see a nice price sticker up front, often leading to problems later.