Michael,
We have also become heavily involved with integrated design over the last two years after spending the previous 20 living in the traditional design-bid-build universe. Our model may be different than what you are contemplating, as i read design-build to either mean you are JV'ing with an architect on a project or possibly directly engaging the 3rd party architect as opposed to the owner doing this. In our model we actually have the architects on our payroll, and we contract with the owner for the full scope of design and construction.
Regarding your specific question on margins, i think you can expect higher numbers by virtue of what should be streamlined processes and a more collaborative relationship with the architect. In other words, your project should flow faster, and delivering the project more quickly should deliver higher profits. If you have direct control over the design choices being made you can further increase your margins by making more economical and standard product choices for the project, which can help you avoid long lead-time delays.
Overall, whether in-house or JV with architects, either is a much more effective delivery model than traditional design-bid-build.
I hope this information is helpful.
Patrick
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Patrick Lloyd
Chief Financial Officer
Creature, LLC
Birmingham AL
(205) 327-6617
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Original Message:
Sent: 06-29-2018 10:32
From: Michael Leo
Subject: Design/Build
Hello, We are a general contractor that performs commercial and industrial work. I curious what margins other contractors are getting on their design/build type work? Also, what is the scope (level of effort) of your involvement in the business development of obtaining this type work?
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Michael Leo
Jarvis, Downing & Emch
Wheeling WV
(304) 232-5000
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