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4/2006 |
Taking the Lead in Design-Build | ![]() |
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by G. William Quatman, Esq., FAIA Great architecture has always been the result of a great designer. For centuries those great designers also led the construction team. Names like Brunelleschi and Jefferson are synonymous with “master builder,” or capomaestro, the one who led the entire process from design through construction. But over the years we have become a fragmented profession. Engineering, though part of architectural education and licensing, is nearly always delegated to a consultant. Even after the AIA struck down its long-held ethics objection in the late 1970s to architects engaging in design-build, the liability crisis of the 1980s caused many architects to reduce construction-phase services, and self-designated “construction managers” rushed to fill the void. For those with the entrepreneurial spirit and right planning, there is an obvious path to regain the lead role architects have lost to others. That path is a return to our roots, back to the master builder: Designer-Led Design-Build. What the owners want Architects can own design-build by taking the lead. Great design is still what owners want, but a great designer who can also guarantee the cost, quality, and schedule will dominate the market. Those who have taken this bold step already say they will never turn back and wonder why they didn’t think of it years ago. With the lead role in design-build up for grabs, why should it fall to the contractors? By taking the lead, the architect maintains a close relationship with the owner; has total control over cost, quality, and schedule; and—yes, it is okay to say it—most architects leading design-build report making more money than ever in their careers. They also say they are having more fun than ever before. Sounds great, so why not take the lead? Start-up issues to address The number two deterrent to taking the lead is risk aversion. Architects have been taught by insurers and lawyers to limit liability, take on only insurable risks, avoid site safety and supervision roles, and never, ever guarantee anything. Today’s owners want the opposite. They want someone to be responsible and take on these risks, which are present in every project. Contractors do it every day, and they are well compensated for it. “With risk, comes reward.” If your insurer or attorney tells you that an architect cannot take the lead role, find another advisor who understands design-build. From 1909 until 1978, the AIA forbade its members from design-build due to a perceived conflict of interest. We’ve come a long way. In September 2005, the AIA Board of Directors adopted policy statement No. 26 on Alternative Project Delivery methods that says regardless of the delivery method used, the AIA “believes that an architect is most qualified to lead” and the AIA “advocates that architects should be retained in that role.” For those ready to heed the call, here are some ideas. Six paths to gaining experience 1. Start small with a current client. A good beginning point would be a small project with which your firm has a lot of familiarity, working with a current client. Having the client’s trust in you as a designer typically translates to greater willingness to trust you on the construction side as well. To reduce risk further, consider starting with small tenant improvements and finish work. What a great way to get experience managing trade subs and build your skills at that level. The worst formula is to take on as your first design-build project a building type you’ve never done before with a client you’ve never worked with before. It’s a formula for disaster. Nonetheless, the big project brings with it a big fee, and some people are determined to plow ahead boldly into the unknown. I say work through it slowly, one step at a time. 2. Try design/construction management. Design/construction management is the second approach, where the architect is strictly an agent of the owner and manager of the trade subcontractors, but not really at risk for their work. It’s not true “design-build” because the trade subcontracts go directly to the owner, not a single contractor. The architect contracts with the owner to manage those subs and provide the design services. It is a way to learn the construction management aspects without taking all the risk. As a C/M advisor, you may want the subs to have “open-book accounting,” so you see all of their costs. This will help you learn how subs price out work, knowledge to use in the future.
4. Form a true “joint venture” with a contractor. The joint venture could be a partnership or it could be a new company—such as a limited-liability corporation—in which you and the contractor are both at risk, but your risk is shared with your teammate. Subject to state licensing laws, the contractor and the architect each owns 50 percent of the new company, and you’re right there in the driver’s seat with the contractor—sharing the risks and the rewards. 5. Go out and hire the right staff. Hire estimators, superintendents, and project managers you don’t already have and form a design-build company with a strong core group. Most firms choose to set up a separate company for the construction—especially when starting out—to minimize the risk to the architecture practice. This works best for private work, since public work may take several years to get the requisite bonding capacity.
6. Merge corporately with a contractor. Either you buy a construction company or they buy you. There are many examples nationwide of mergers both ways that have worked successfully. Contractors are looking for ways to bring design services “in-house.” So how about you—is your firm for sale? For firms in an ownership transition crisis, merging with a construction company may be the answer you have not considered. It gives the contractor an instant staff, plus record of project types the company can handle. Some final thoughts
Be prudent and pick familiar projects and clients to start out. Get good legal and insurance advice from people who understand design-build. Talk to your peers who have already taken the lead. Get off the couch and get going. Architects can lead design-build once again. Copyright 2006 The American Institute of Architects.
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Bill Quatman, FAIA. is the 2006 vice chair of the AIA Design-Build Knowledge Community Advisory Group. He is both a licensed architect and an attorney with the law firm of Shughart Thomson & Kilroy, P.C., Kansas City, Mo., office. |
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