by Glenn M. Travis, Founder, GMT Home Designs
I recently came across an article that repeated an old criticism of the design/build approach in home construction:
Won't the homeowner face a loss of control, if the designer isn't independent from the builder? Who can I trust to provide quality control or advocate for my interests through the construction process?
It's a fair question that we heard, in one form or another, from many potential clients.
At GMT, we wrestled with this for several years, and eventually figured out a process that works for all parties: designer, builder, and (most importantly) homeowner.
We've never looked back, and if you are looking at a home build or major renovation, we think you will benefit a great deal from a process and design/build contract like this.
Where design/build contracts can fail the homeowner
The thing to remember about your building contract is that it should reflect the process that the designer and builder are going to follow. If not, it's easy for details to be forgotten, or for expectations to get mismatched, or (worst case) empty promises to be ignored.
First, a very quick refresher on design/build.
Basically, design/build means that, instead of completing a home design and then "throwing it over the wall" to whatever construction firm wins the bidding process, the two teams work together from almost the very beginning of the design phase.
This cooperation can be done within a single company, or it can be done between two partner firms that know how to collaborate well.
If you are considering working with a single company, two questions can help you, as a homeowner, understand how the firm approaches design:
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Who is doing the design for my project? Sometimes, a single source company is essentially a “build – design” company. They see the value in design, but may have little expertise or training in design. Some of these designs detract from the value or integrity of your home. For example, is the design in keeping with the right scale and proportions of your existing home? Does the addition enhance or complement what is already there? You will want to understand the specific individuals (or the outsourced design provider, which is sometimes the case) responsible for the design for your project, and their qualifications, and require that the design include fully buildable plans, not just nice-looking drawings.
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Who is my design advocate during the construction phase? This is the question we mentioned up front: If the designer is completely beholden to the contractor, how does the homeowner know that someone is in their corner?
At GMT, we do design/build projects by partnering with a limited set of construction companies who match well with the ways we work and the quality standards we set. Questions to ask about this two-company approach include:
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Have you worked together previously? Believe us when we say, good communication is absolutely indispensable for successful design/build work. Every team has to start with a shared first project, but you don't want your project to be a blind test-run.
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At what point will the builder start providing input on the design and projected costs? If the builder doesn't see the design until it's "complete," you're more likely to hit unanticipated change orders or budget overruns.
and, again,
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Who is my design advocate during the construction phase? How will the design firm's involvement be documented?
To eliminate uncertainty, homeowner stress, and miscommunication about who-owns-what, GMT breaks the design work in design/build projects into two parts.
This is our recipe for design/build contracts that work:
Part 1: The Schematic Design Agreement
The schematic design agreement includes three 'deliverables'; GMT is responsible for one, the builder is responsible for the other two, but both firms have input in completing all three document sets:
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The schematic design - this includes floor plans, elevations, and yes, pretty pictures. (It is not the same as a full buildable plan yet; those construction documents will be completed AFTER the homeowner signs off on all three of these initial documents.)
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A construction cost estimate from our build partner
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A construction schedule from our build partner
The schematic design is an iterative process. Starting with an understanding of the client's building site, vision for their home, and overall budget, we start designing the addition or custom home, which raises questions and decision points that help the homeowner refine their ideas, while staying within budget. We incorporate those decisions into new iterations of the design until we arrive at the final agreed version.
You can see why the early involvement from our builder partner is vital to making this work. They give input on material and labor estimates, understand the owner's goals, and help build a trusted relationship among all three parties.
You can also see why the homeowner loves this. They own the schematic design documents, know why design choices are made, and have confidence that the cost and schedule estimates are realistic.
Part 2: The Construction Process and Contract
Once the homeowner has signed off on those three elements from the Schematic Design agreement, the builder produces a construction contract to be signed. Due to the collaborative work on design, budget and schedule that's already happened, there shouldn't be major surprises in this contract.
There are two key aspects of the construction process that deal with design issues and involvement.
First, construction documents/buildable plans. This contract will include GMT's work to turn schematic design into final construction documents — the buildable plans. Our payment for this work comes from the contractor, and the homeowner can see those costs, including GMT's hourly rates, as line items in the contractor’s overall budget.
If changes are necessary (and it does happen, although a good design/build approach minimizes it), we update the construction documents to ensure that everyone — homeowner, builder, designer — has accurate drawings at every phase and a record of what's being produced.
It's all spelled out, so the homeowner knows what design work they paid for, and why.
Second, review of construction milestones. During construction, GMT designers and architects review the build, materials, and quality to make sure they are accurate to the final construction drawings.
Fortunately, with our design/build partners, we have the utmost confidence that they are following our plans. We have worked with these partners for many years and trust the quality of their work. But we are still responsible to the homeowner to review and verify it!
This approach, again, has proven to take a lot of hassle out of the design/build contracting process.
The client doesn't have to pay full architecture fees up front. We stop after the schematic design is completed to get feedback on build costs. We are able to refine the design as necessary to work with the overall budget. The client owns the initial schematic design drawings, and the full set of final construction drawings once these are completed.
And both designer and builder have absolute clarity about our responsibilities and how we are going to work together throughout the project.
Don't forget: three fundamentals of design/build
While we're on the subject of contracts, we should note that, yes, paperwork creates legal binding agreements, and helps set expectations and ultimately achieve success.
But relationships are still the heart of home construction projects. Your house is too personal for it to be any other way.
Here are three things to remember, no matter how you structure your contract or project team:
1) You want a designer and builder with a great working relationship — defined by trust, good communication, and compatible work styles.
2) You want both designer and builder who are committed to helping you manage cost. This isn't unique to design/build projects; whatever general contractor you use, even in a traditional design-bid-build method, they can help manage the cost of their subcontractors … or not. But in design/build, having both on the same page about costs makes everything else easier.
3) You absolutely need transparency about costs and visibility into details. Not every homeowner wants to scrutinize every line item or even choose every fixture, and as a design firm we love helping clients focus on what matters to them, knowing that we've got their back on everything else. But the information has to be documented and available, so there's no confusion.
About the author: GMT Home Designs founder Glenn M. Travis has 30+ years' experience in architectural design. Learn more about our design/build services for homeowners and for contractors.