Monday, February 27, 2017

thoughts on Design Build v Design Bid Build

Greetings Again Dearest Reader,

In my last Epistle I wrote to you concerning the turntable at Durango. In this one posting I shall be discussing various aspects of Design Build (DB) versus Design Bid Build (DBB).

DB and DBB are relatively different construction methodologies that have pro's and con's to each. By having a company that can do the entire work in house from plans to project certain economies can be attained for both the builder and the client. By removing the bidding process a company can make more money with a flop that with a hit, wait wrong story. By removing the bidding process a company can make more money overall. It has a deeper level of involvement with the project and can ensure work for its employees for a longer period of time. The more entities that are involved in the project the less money that can be made by an individual player in general. By removing another player through DB, the chosen company can make more money.

DBB on the other hand allows smaller companies to have more opportunities for business. Due to the nature of DB, a company that wants to do this has to be relatively large to be able to handle all the necessary components. In DBB the companies involved can be more specialized and tailored to projects. This is not to say that all DB companies are large. DB companies can subcontract out most if not all the work if they so choose. This methodology would make it easier for smaller companies to get into DB.

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