Design-Build Construction: A Two-Phase Approach using Budget Backwards

Design-Build Construction Budgeting

This process outlines a streamlined design-build approach with two distinct phases, emphasizing a "Budget Backwards" methodology and open and honest communication to ensure cost-effectiveness and client satisfaction.

Phase 1: Development

This phase focuses on collaborative design, meticulous planning, and strategic value engineering, all within a framework of open and honest dialogue about the budget.

  • Project Definition:

    • Define Project Scope: Begin with a clear and concise definition of the project's objectives. This includes identifying the purpose of the project, the intended use of the building or space, and any specific requirements or functionalities.

    • Determine Project Size: Establish the overall size and scale of the project. This includes determining the square footage, number of rooms, stories, and any other relevant dimensional parameters.

    • Shape the Project: Collaboratively explore the desired aesthetic and functional characteristics of the project. This involves discussions about architectural style, spatial layout, material preferences, and overall design vision.

    • Initial Budget Discussion: Introduce the "Budget Backwards" approach. Start with an open and honest conversation about the client's financial resources and desired investment level. This initial budget target will guide all subsequent design and planning decisions.

  • Concept & Budget Definition:

    • Further refine the project goals and solidify the client's vision, needs, and overall project objectives through open and honest discussions.

    • Crucially, establish a clear and realistic budget based on the initial discussion and the defined scope, size, and shape of the project. This will serve as the cornerstone for all subsequent decisions.

    • Employ the "Budget Backwards" approach: Start with the final budget number and work backwards, allocating costs to each major element of the project. This ensures financial feasibility and prevents overspending.

    • Maintain open and honest communication with the client regarding budget constraints and potential challenges.

  • Schematic Design:

    • Develop preliminary design concepts, exploring various options and presenting them to the client with open and honest feedback.

    • Continuously evaluate design choices against the predefined budget, making necessary adjustments to stay within financial limits.

    • Utilize 3D modeling and visualization tools to effectively communicate design intent and facilitate client understanding, ensuring open and honest dialogue about design choices.

  • Design Development:

    • Refine the chosen schematic design, adding detail and specificity to architectural, structural, and MEP (mechanical, electrical, and plumbing) systems.

    • Conduct thorough value engineering, identifying cost-saving opportunities without compromising design integrity or functionality, while maintaining open and honest communication with the client about any trade-offs.

    • Maintain budget transparency, providing the client with regular cost updates and proactively addressing any potential financial concerns through open and honest discussions.

  • Construction Documents & Budget Compilation:

    • Produce comprehensive construction documents, including detailed drawings, specifications, and schedules.

    • Compile a detailed working budget: Translate the conceptual budget into a comprehensive and itemized working budget, including all anticipated costs for labor, materials, equipment, permits, and contingencies.

    • Finalize the project budget and secure all necessary permits and approvals, keeping the client informed through open and honest updates.

  • Custom Project Plan:

    • Develop a tailored project plan outlining the specific methods, specifications, and schedule for the construction phase.

    • This plan should include:

      • Construction Methodology: Detailing the chosen construction techniques and sequencing of activities.

      • Material Specifications: Clearly defining the quality, type, and source of all materials to be used.

      • Project Schedule: Establishing a realistic timeline for each phase of construction, including milestones and deadlines.

      • Quality Control Measures: Outlining the procedures for ensuring workmanship and adherence to design specifications.

      • Risk Management Plan: Identifying potential risks and outlining mitigation strategies.

Phase 2: Construction

This phase transitions the project from concept to reality, maintaining a strict focus on budget adherence, timely completion, and open and honest communication.

  • Pre-Construction:

    • Assemble a skilled and experienced construction team, including subcontractors and suppliers.

    • Conduct a thorough site analysis and finalize the detailed construction plan, incorporating any necessary adjustments based on site conditions.

    • Reiterate the budget constraints and ensure alignment with the construction team, fostering open and honest communication about potential challenges.

  • Construction & Budget Monitoring:

    • Execute the construction plan, diligently managing resources, timelines, and costs.

    • Implement regular budget check-ins: Continuously monitor actual costs against the working budget, identifying any variances and taking corrective action as needed.

    • Maintain constant communication with the client, providing regular progress updates and addressing any questions or concerns with open and honest feedback.

    • Implement rigorous quality control measures at every stage to ensure adherence to design specifications and industry standards.

    • Address any unforeseen issues or changes with open and honest communication and collaborative problem-solving.

  • Closeout:

    • Conduct a final inspection to ensure all work is completed to the client's satisfaction and in accordance with the contract documents.

    • Obtain all necessary certificates of occupancy and close out the project financially.

    • Conduct a final review with the client, ensuring open and honest feedback and addressing any remaining questions.

    • Present a final budget reconciliation: Provide the client with a comprehensive report detailing all project expenditures and comparing them to the original budget.

Key Advantages of this Approach:

  • Cost Control: The "Budget Backwards" method, coupled with regular budget monitoring, ensures financial discipline throughout the entire process.

  • Efficiency: Streamlined workflow, a detailed project plan, and collaborative decision-making minimize delays and optimize resource allocation.

  • Transparency:  Open and honest communication and budget clarity foster trust and client satisfaction.

  • Quality: Value engineering and rigorous quality control measures guarantee a high-quality final product.

By adhering to this two-phase design-build process with a strong emphasis on budget-conscious decision-making, detailed planning, and open and honest communication, we can deliver successful projects that meet our clients' needs and exceed their expectations.

Mathew D. Meskimen, CAPS CGP CGR

I am a husband, father to five, and a General Contractor who loves the construction industry. I spend my days developing our MCG Homes team and serving our community. When I am not at work, you will find me spending time with my family, my church, golfing, and fishing.

https://www.mcghomes.com
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