Design-Build Contractor

Offer design-build services combining design and construction under single contract providing streamlined project delivery for clients

Startup Cost
$40,000-$150,000
Difficulty
Advanced
Time to Profit
10-18 months
Profit Potential
$33,000-$100,000/month

Overview

Design-build contractors provide integrated design and construction services - offering both architectural design and general contracting under single contract and single point of responsibility.

You handle projects from concept through completion.

Design-build projects range from $150,000-$1M+ with 20-30% margins on combined design and construction.

Completing 8-15 design-build projects annually generates $400,000-$1.2M+ in revenue with 20-30% margins.

Target clients include homeowners seeking streamlined process, commercial clients wanting single accountability, projects with tight schedules, value-conscious clients, developers and investors, and complex renovation projects.

Services include conceptual design and planning, architectural drawings and engineering, permit and approval services, value engineering and budget control, construction and project management, and warranty and post-completion service.

Success requires both design and construction expertise (or partnerships), licensed architect and contractor credentials, selling integrated delivery benefits, managing design and construction phases, collaborative client relationships, and potentially BIM and construction technology.

Many design-build contractors partner architects with builders, emphasize faster schedules and better communication, potentially offer design services in-house, work on commercial and high-end residential, use collaborative project delivery methods, and differentiate through single-source accountability reducing owner risk.

Required Skills

  • Design & Architecture
  • Construction Management
  • Integrated Delivery
  • Value Engineering
  • Client Relations

Pros and Cons

Pros

  • Higher margins combining design and build
  • Single-source accountability appeals to clients
  • Faster project delivery than design-bid-build
  • Control design for buildability
  • Growing popularity of design-build delivery

Cons

  • Need both design and construction expertise
  • Licensing requirements for both disciplines
  • Liability for design and construction
  • Managing design changes during construction
  • Educating market on design-build benefits

How to Get Started

  1. Gain design and construction experience
  2. Partner architect with contractor (or get both licenses)
  3. Develop integrated project delivery process
  4. Create design-build project examples
  5. Market single-source delivery benefits
  6. Get initial design-build projects
  7. Build reputation through successful delivery

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