Remodeling contractors increasingly are exploring and realizing the benefits of design/build (D/B) opportunities in their local markets. Once the domain of commercial contractors, D/B work offers many incentives including more control over the process and budget and an easier transition from design to construction.
D/B (sometimes referred to as design/construct or single-source responsibility) is a method of project delivery in which one company forges a single contract with the homeowner to provide architectural, engineering and construction services. This is a departure from the traditional process when a homeowner contracts an architect or engineer to prepare drawings and then selects a builder through a competitive bidding process.

One-Stop Shop
“This is really a matter of taking control of your business versus your business controlling you,” says Joseph Dellanno, president of Boston-based My Design/Build Coach Inc. “The traditional bid process is very reactive and limiting to both contractors and homeowners. Design/Build is proactive, and the contractor provides one-stop shopping for clients.”

Other contractors agree that bidding can sometimes cause difficult situations. “Competitive bidding often leads to finger-pointing between the architect and the contractor, with the homeowner stuck in the middle,” says Tim Cleary, general manager of Charles W. Ross Builder Inc., Williamsburg, Va. “This way, the construction team offers insights during the process, which saves time and money for everyone involved.”

Keith Sobczak, architect for Charles W. Ross Builder, admits that architects fall short in a critical area of the building process: cost. “Architects seldom know how much materials cost, but contractors do. They’re ordering materials all the time, so with their input, it’s much easier to stay on budget,” he says.

Another benefit of D/B firms is that they’re able to manage their projects more effectively, saving time and money. Karen Zieba, vice president of Long Beach, Calif.-based Zieba Builders Inc., says she and her partner/husband Joe are making the change to D/B partly because it will help them plan and schedule projects more appropriately.

“With a local labor shortage, we have to line up our trade contractors three to six months in advance,” Zieba says. “Now, instead of a client coming in to our office with a set of plans and saying, ‘We need this started right away,’ we can begin setting up our production cycle as the client is going over designs with our architect. We’re managing our schedule as opposed to starting off behind schedule.”

Ultimately, Zieba decided to offer D/B services because her firm was losing business to other contractors. “We didn’t realize how much clients wanted [a turnkey solution] until it started affecting our bottom line,” she says. “We were losing a lot of contracts, either after referring potential clients to an architect and not getting the bid, or losing them to other D/B firms right from the start.”

Change is Good
As with any service offering, you have to be creative when it comes to marketing and selling D/B services. “Sales is a huge issue for most newcomers to D/B,” Dellanno says. “You’re asking people to basically buy an ‘invisible product’ and trust you to handle the entire process of building or remodeling their most precious asset.”

To integrate D/B into your business, consider “gate keeping” or lead qualifying sales, if you’re not already. This will eliminate some dead end leads allowing you to focus on those who are serious about remodeling. You’ll also need to revise marketing efforts and hire additional staff. Dellanno stresses that smaller contractors should not try to wear too many hats, but rather delegate to others who have expertise in those areas, or hire new people to handle the new duties.

Cleary says his company invested in new computers, plotters and other high-tech equipment, people and office space when he decided to fully integrate D/B five years ago. Zieba, who says her company still is six to 12 months away from full integration, is in the process of deciding whether to hire an in-house designer or partner in some capacity with one or more independent architects.

While D/B alone can’t guarantee success, it could be a great niche for your market or a way to spur growth.

“The inter-relationship between design and build can’t be overstated for us,” Cleary says. “We’re better builders and we’re better designers because of it.”