More and more construction projects around the world are being carried out using the design-build method. This construction project delivery method can shorten the project’s delivery time, keep the project within the budget and avoid the risks associated with unfulfilled client expectations. In Lithuania, such efficient construction practices are still rare. General contractor Conres shares its experience on what beliefs are holding back the use of the design-build method and how to take advantage of this practice when implementing construction projects.
“The majority of Lithuanian construction projects are carried out in the traditional way: the designer draws up a project based on his or her experience and on the client’s vision and expectations. A contractor is then selected by tender. When the contractor calculates the cost of project implementation, it turns out that the cost is higher than expected under the current design. The client has to contact the designer again for changes to the project to meet their financial expectations. Only after further adjustments is the project implementation phase launched. The delays in project preparation and the revision of the estimates are making project implementation longer. All this can be prevented by using the design-build method, which is very popular abroad. This not only shortens the project’s implementation time, but also eliminates project adjustments. In this way, the client precisely manages the project implementation within the timeframe and does not incur additional costs”, – Lukas Laukaitis, the head of Conres, is convinced.
According to the CEO, a key distinctive feature of the design-build principle is that all the design and construction work is in the same hands. The client presents his vision of the building directly to the contractor. The main solutions are agreed upon according to the client’s requirements, then the cost of the design and construction work is calculated, and the contract work is carried out.
“In other words, the client comes with a vision of what they need, and our goal is to bring that vision to life, including all the steps from design, construction and handover to the client,” he says.
Reduced time and financial costs
When asked about the key benefits of this practice, Laukaitis says there are more than one. Having the design and construction processes handled by a single company saves the client time in the first place. In the case of traditional construction planning, i.e. design work first and then a contractor, the specific construction activities – timelines, potential subcontractors, suppliers, etc. – only start to be planned after the call for proposals is issued. Design-build allows the contractor to prepare the project by planning the pre-implementation steps, coordinating partners, suppliers, products and logistics. When these processes overlap, time is saved, often between 3 and 5 months.
“The second essential benefit is a manageable budget. Traditional project implementation focuses on design, with a preliminary budget estimate based on the initial solutions. During the tender process, it turns out that the solutions do not meet the financial expectations of the client.
The design-build method eliminates the redesign phase, as all solutions are developed within the estimated budget. The contractor can fulfil the client’s vision within the estimate, so the risk of price increases is managed,” he says.
According to Laukaitis, this construction practice has other advantages as well – the contractor is interested in receiving the order, so they use their knowledge of how to make the project more optimal and rational, and they use their experience at an early stage of the design. Also, by putting all the responsibility in the same hands, the client no longer needs to control the individual phases of the project.
According to Conres CEO, when considering this practice, clients should take into account that the design-build method will require more involvement and time at the beginning of the project. This method will require more attention to the anticipated quality requirements, vision, project delivery and solutions in order for the project to get off the ground before the building permit is granted. Involving the client in the process helps to meet their expectations more accurately and to work as a team to achieve a common goal more smoothly.
More popular abroad now
Laurynas Senkus, Construction Director at Conres, points out that despite all the advantages listed above, this construction method is still rarely used in Lithuania.
“Perhaps clients are held back by the wrong belief that agreeing on a fixed price according to the description provided will compromise the visual aesthetics of the project, the quality of the solutions, or simply result in a building that does not quite live up to the expectations, but such fears are unfounded. The design-build method allows you to define the client’s requirements and describe them in a contract, ensuring that the project is delivered to the client’s specific expectations. If the client plans to build with higher quality materials, this will be stipulated in the contract,” he says.
According to Senkus, clients in Lithuania usually choose this construction method when the project deadlines are critical – when there is no time to design, tender and search for a contractor, and to carry out the redesign works.
“Design-build practices have a large share of the construction market abroad. In the United States, for example, 43% of construction projects between 2016 and 2020 were built using this method, and in Sweden, more than 50% of infrastructure construction projects were built using the design-build method back in 2015. In Lithuania, it is still a niche method, undertaken when circumstances force it. But it is so for no reason – even if it is not time-critical, completing a project earlier can give you a quicker return on your investment, and you get all of the other benefits mentioned above,” he says.
According to the Construction Director, although the design-build practice is rarely talked about in the public domain and not all clients are aware of its benefits, it is not a very new method – Conres has been working with such projects since 2012.
“Our first design-build project was implemented eleven years ago, when we built a firefighter training centre. Using this practice, we also completed the Palanga swimming pool and wellness centre project and the Park Inn by Radisson hotel and business centre project next to Vilnius Airport on time, and the construction of the Lithuanian Post logistics centre in Vilnius was completed two months ahead of schedule. We are currently implementing the Omniva parcel sorting terminal project in Kaunas. Thus, this practice is suitable for a variety of construction projects,” points out Senkus.