The successful execution of a fit out or construction project is built around a pre-discussed and approved procedure that includes all aspects necessary for delivery. From start to finish, every aspect of the project has its own set of guidelines and rules that need to be followed to prevent delays or other complications down the line during construction – it’s important to know what you are getting yourself into from early on! It all starts at the Contract stage.
The decision to go with either a construct-only contract or design and construction (D&C) depends on the scope of work required for your construction project. These two approaches have their benefits, but it’s important not to make assumptions before understanding what type will be most appropriate based on certain details about your project such as budget limitations, scope, requirements, etc.
So, let’s explore what the differences are between “Design and Construct” and “Construct Only” Contracts.
What is a Design and Construct Contract?
Under a Design and Construct Contract, the contractor is responsible for the project in its entirety and must commission both the design as well execute the build.
The client will provide a project brief, which is essentially an overview of the exact project requirements. They will then set a budget in alignment with their requirements. The design and construct project brief solicits the design and documentation from the client, which includes:
- A definition of the project scope and objectives
- A development brief and the client’s sign-off
- A formulation of the project program and the client’s sign-off
- A schematic design and the client’s review
- A developed design and the client’s interim approval
- A design freeze
- Contract documentation and the client’s approval
- The building act approval
- The building owner’s approval
Once all the formalities have been finalised, and there is a secure plan in place, you can start bringing the project plan to life.
What is a Construct Only Contract?
The traditional construction contract is made up of three stages:
- Construction (actually building the project)
Design stage – the venue owner or ‘principal’ will engage an architect or designer to create the design for the project.
Bidding stage – In the bidding stage, contractors will be invited to tender bids on the design and execution of the construction. They are asked for their budget proposals as well as technical solutions in executing the build.
Construction stage – Once the successful tenders are submitted, a decision will be made on which contractor to go with. They’ll do everything according to the original design and complete the third stage: construction!
There you have it. Now that you know the main differences between a “Design and Construct” Contract vs a “Construct Only” contract.
Sometimes we find that clients still have questions about the best fit for their project. If you are unsure, please feel free to reach out to our team here and they will be able to guide you. Or to see some of the projects we have helped our clients with, please check out our work here.