DESIGN & BUILD
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The design and build method of construction procurement has not been widely adopted in the Middle East due to low awareness and understanding of the approach among both clients and contractors in the region. There are also relatively few large contractors with the expertise to manage design and build projects. While design and build can deliver projects faster and at lower cost when implemented properly, many clients in the Middle East are hesitant due to less established relationships between clients and contractors and less robust building regulations compared to Western countries. However, as trust levels grow between clients and experienced design and build contractors, experts believe this procurement method will become more common in the Middle East in the next few years.
DESIGN & BUILD
- 1. IN PRACTICE design & build December 2015 Middle East Consultant 19 W Analysis 18 Middle East Consultant December 2015 D&B. ARE WE READY YET? hile the design and build method is widely practiced in Western countries, the approach hasn’t been received with open arms in the Middle East. Given the infancy of this procurement model in the region, and with the industry still testing the water, experts agree that apprehension about quality control has perhaps been one of the biggest setbacks to adoption. But the reaction to the design and build model has been muted for other reasons. Mick Cairns, CEO at Black & White Engineering Middle East,saysthatwhilethefirmhashadtwohigh-profileprojects recently, this method has not picked up pace due to a low level of awareness and understanding, not only from the client side but also from contractors. “Perhaps the most significant difference between the regions is awareness and understanding of the design & build model, and this is perhaps due to the expertise of the contractors, who would normally be the proposer of this procurement model. There are only a handful of Western contractors in the Middle East who employ staff with the desired skill to manage a design and build team.” Agreeing with Cairns’ view about the shortage of contractors withthe necessary skills,resources andability to take on these kind of projects, is William Bennett, landscape architect at Dubai design consultancy firm desert INK. He adds that in order for this method of procurement to be chosen over the traditional approach, trust between the employer and the contractor is crucial. “You need to trust that the contractor will deliver what you are paying for. Since large-scale construction is a relatively new phenomenon here in the Middle East, there are fewer well-established working relationships between clients and contractors. “There are also less sophisticated building regulations and legal mechanisms to ensure a certain standard is maintained, and therefore the safety net that is provided by these measures is somewhat absent, which makes clients sometimes reluctant to take the design and build route.” Despitethereservationsaboutthisprocurementmethod,it hasanumberofadvantagesoverthetraditionalroute.Richard Stratton, managing director, MENA at Cundall, a UK multi- disciplinary firm, believes that a design and build project should be less time-consuming and more cost-efficient. “If implemented properly, the benefits of the design and buildmethodtoaclientshouldbefasterprojectdeliveryand a value engineered solution based on an integrated design and construction team. What’s also great about this is that the risk rests with one entity and not multiple companies.” Agreeing on the one-stop shop advantage for project delivery with this method, Bennett also adds that without the complex inter-relationships of a client, architect and contractor triangle, there is a direct relationship between the party paying and the party with all of the expertise. He also cites the cost advantages of this route, saying that while every company has its own methods for pricing and there is no expectation of how much can be saved, you can expect most contractors to start by building the design costs into their construction budget. “With larger economies of scale and more efficient ways of working, the price can be reduced dramatically. We’ve recently completed a number of design and build contracts that were significantly lower than quotes our clients had received from designers with sub-contracted builders. “Another key benefit of D&B is that a good contractor will bring an immense amount of practical knowledge to a project, and this directly benefits the client in terms of build ability and cost savings. You also avoid the often expensive situations where an independent designer is coercing a Middle East Consultant checks in with the construction industry to find out if design and build is being embraced in the Middle East
- 2. IN PRACTICE design & build 20 Middle East Consultant December 2015 reluctant contractor into over-complex solutions which are sometimes impractical,” Bennett adds. However, for the employer to reap the benefits of a functional and financially sound project, developing a detailed technical brief is essential. It must contain a robust set of employer’s requirements, otherwise quality and operational performance can be significantly compromised. Strattonsuggeststhatemployersshouldretaintheirconsultant team topeerreviewthedesignandconstructionprocess. “Theemployer'srequirementsmustbeveryrobustinareas ofquality,bothmaterialsandworkmanship.Inadditiontothis. there should be a stringent process for evaluating the D&B contractor's proposed sub-contractors, suppliers and design team. The greater the detail and transparency contained in the employers requirements, the easier it should be for the contractors to evaluate risk and ultimately price the project.” Bennett adds that they always make sure that that their clients know exactly what they will be getting, as well as what they won’t be getting. They do this because sometimes people expect a design and build contract to deliver everything, whereas it varies a lot depending on the abilities of that contractor. Transparencyisthereforeessential,andthekeyisensuring a thorough understanding of the design and pricing by all parties. Bennett says that The Desert Group ensures that it providesacomprehensivelistofmaterialsandprocesseswith a price tag attached. "A good example of this transparency arose on a recently completed D&B sales centre project, where the design drawing base provided differed from site conditions, resulting in the requirement for a significant additional quantity of materials. “Theadditionalareawasmeasured,andavariationraisedbased upontheestablishedratesinthecontract.Manyclientsfearthat D&Bcontractorswillhitthemwithanendlessstreamofinflated variationorderstheminutethatsomethingunpredictedarises.” There are potential disadvantages to this method though, most revolving around the poor choice of contractor and unclear employer requirements. In fact, Bennett notes that problems faced when using low-calibre contractors include endless variation requests and poor quality design, which is only driven by cost-saving, he says, and not the end product. Placing the blame for delays upon sub-contractors is anotherproblem,andlastlyhesaysthatastrongspecification is crucial, as it leaves no room for the contractor to cut corners and use low-grade options to maximise profit. Despite the drawbacks and the lack of maturity of this model in the market, experts believe that design and build canstillcatchon.Cairns,forone,saysheexpectsittobecome more common in the next two to three years. Stratton elaborates: “There is definitely a place for it in the region, but it is important that the merits of the process are fully evaluated for each project at the outset, and that they alignfullywiththeemployer'sprojectobjectives,ratherthan being simply implemented to transfer risk." Bennett too is optimistic, adding that with the world and regionmovingfastereveryyear,designandbuildwillbecome more favoured by clients, and as trust levels grow between client and contractor, this form of working will inevitably become more common in the Middle East. “There are only a handful of Western contractors in the Middle East who employ staff with the desired skill to manage a design & build team” William Bennett, landscape architect at desert INK. Mick Cairns, CEO at Black & White Engineering Middle East. Richard Stratton, managing director, MENA at Cundall.