Maintenance and Repairs

January 22, 2024 Published by Golden Horseshoe Chapter - By Zeke Margaritis

Design-Build vs. Design Tender for Condominiums: A Comparative Analysis

From the Volume 18, Winter 2024 issue of the CCI GHC Condo News Magazine

The choice between design-build and design tender approaches significantly influences the success and efficiency of condominium construction projects. In this article, we will delve into the characteristics, advantages, and drawbacks of both design-build and design tender methods, offering insights to help stakeholders make informed decisions.

I. Design-Build Approach

Design-build is an integrated project delivery method where the design and construction phases are consolidated under a single contract. In this model, a collaborative team, consisting of architects, engineers, and contractors, works together from project inception to completion.

The advantages of design build vs. design tender all stem from having fewer stakeholders involved in the process. Eliminating stakeholders allows for faster project delivery as the design and construction phases overlap, rather than the sequential nature of the design tender process.

Not only are projects completed faster they often are cheaper than using the design tender method as the design and construction teams are integrated creating more innovative and efficient processes and designs. Having the entire team under one roof also allows for efficient and enhanced communication through a single point of responsibility.

With that being said, there are challenges that can arise from using this method. In some cases, the design doesn’t get finalized until after the winning bid has been selected. This can lead to the design having to change to conform to the cost of the project or vise versa. In situations when this arises no one wins. It’s very important to try and push the contractor or design firm being used to complete the design in full prior to selecting a bid.

II. Design Tender Approach

Design tender, also known as the design-bid-build method, involves a sequential process where the design phase precedes the construction phase. The owner contracts a design team to create detailed plans, and then contractors bid on the project based on these plans.

Similar to the design-build method, the design-tender method has it’s own advantages, and it mainly lies in the control a board has over the entire process.

Specifically, the design process in a design-tender project allows for all stakeholders involved to have input and for a unanimous decision to be made on the design. Once it’s finalized the stakeholders also have far more control over the cost of the project as contractors are competitively bidding against one another, in theory this should reduce the cost of the project.

As mentioned above, there are some drawbacks to using the design-tender method. The biggest being the extended project duration and the limited collaboration between the design and construction teams.

III. Choosing the Right Approach for Condominiums

In conclusion, the choice between design-build and design tender for condominiums depends on various factors. For projects that are very complex, the design-build method allows for more collaboration between the construction and design team.

If the owners want to be involved in all aspects of the design and construction process the design tender method would be best. If there are budget or schedule concerns, using the design-build method will shorten the project length and reduce costs.

Both approaches have their advantages and challenges, and the decision should align with the specific goals and priorities of the project stakeholders. Ultimately, a thorough evaluation of these factors, coupled with a clear understanding of project requirements, will guide stakeholders in selecting the most suitable approach for successful condominium construction projects.

Zeke Margaritis is currently the business development representative at ArmourCo Solutions. A proud graduate of The Lang School of Business and Economics. Zeke has grown up in the condo industry with a passion for construction.