Before moving to the next phase of design, it is a good idea to select a construction delivery method.

Delivery Systems

Church building committees spend countless hours wrestling with the approach they will take to design and build their new facilities – and with good reason. Construction remains the No. 2 most-litigated industry in America, behind the medical industry. In fact, almost 20 cents of every construction dollar goes toward claims and litigation. So how does a church protect itself from becoming a statistic while building positive relationships with its designer and builder? By understanding the primary delivery systems available and the advantages of each.

A delivery system is the methodology used to bring a church’s vision for the need of additional facilities into the reality of new buildings. The two most popular are design/bid/build and design/build.

Design/Bid/Build

Design/bid/build, or "hard bid," is the most familiar of the two systems. The sequence of events begins with the church selecting a designer. The designer discovers the needs of the church, creates a design, and then uses plans and specifications to solicit bids from a handful of qualified general contractors. During the construction stage, the designer inspects for quality control and acts as the customer agent/representative in cases of dispute with the builder.

Advantages

• The designer is selected based on his specific experience with the type of project the owner desires.
• Open bidding to multiple general contractors allows for the lowest initial cost for the project.
• The designer provides checks and balances for the owner throughout the process.

Disadvantages

• Lack of teamwork with the builder during the design phase can result in numerous change orders that significantly drive up the cost of the project over the initial cost.
• The designer’s estimate to establish project budgets may only be moderately accurate due to lack of builder involvement.
• The actual cost of the project is neither known nor guaranteed until the construction documents are complete and the bids are received. This sometimes results in the owner paying for a fully completed design that they then cannot afford to build.
• The owner, not the general contractor, retains the risk of errors/omissions in the documents.

Design/Build

In design/build, one contract covers both the design and the construction of the project. The key to the success of design/build is that the designer and builder are partnered together from the very beginning of the project. With designers and general contactors under the same roof, finger-pointing and fault-finding cease. Most design/builders still hard-bid the subcontracts, and thus, the only item negotiated is the general contracting fee. A study at Penn State University found that design/build resulted in 6 percent less project cost and 10 percent less change orders, while being 23 percent faster than other delivery systems.

Advantages

• There is a single source of responsibility.
• Pre-construction estimates are highly accurate due to early builder involvement.
• A guaranteed maximum price is established. Change orders arise only from client-directed changes in project scope.
• The design/builder retains the risk of errors/omissions in the documents, not the owner.

Disadvantages

• Some design/builders may not have designers with the experience needed for a specific project.
• If the design/builder does not employ AIA-certified architects, the owner risks not having checks and balances throughout the process.
• Some design/builders are not "open book" with their subcontractor bids and/or final costs.

Victor Erwin’s early careers were in public accounting, and financial/managerial executive positions. In 2002, he joined G. L. Barron as vice president of the church division. A certified church consultant, he’s also active in NACDB, NACFM and NACBA. Erwin is a frequent national speaker on church development. He enjoys spending time with his wife and five children, teaches adult Sunday school, and plays guitar for the worship team at his church.