Our survey reveals that there are almost as many definitions for design/build as there are remodelers. Among the 80% of respondents who consider themselves design/build remodelers, everyone agrees design should be something clients pay for. But opinions vary widely on how to charge for design and whether it's important to make a profit from design. Even the question of using a separate design contract is up for grabs -- 81% of those who consider themselves design/build shops have separate design contracts, while the remaining 19% have a single design/build agreement.
Define Design/Build
"Design/build remodeling includes the services of an architect either on the staff or in direct relationship with the staff of the remodeling company. In our case, it provides the services of a licensed architect and interior designer, along with the pricing accuracy and the design/build services of the remodeling contractor."
--Jim Molinelli, ARDO Contracting, Columbia, Md.
"We would define design/build as a company capable of performing a project from concept through design and construction and involved with the budgeting and design process."
--Jeff Hurst, Hurst Total Home, Kettering, Ohio
"Design/build is working with a client from pre-sale to completion, and they are talking with no one else."
--Bill Capps, KooserRun Construction, Somerset, Pa.
Do your prospects understand the design/build concept? | |||
No
|
41% |
Yes
|
59% |
"Design/build is everything from creating specs for small repairs to putting simple elevations and floor plans on paper to creating entire plan packages, renovations, additions, and new homes."
--Ed Bartlett, CGR, Edward Bartlett & Sons Remodeling, West Creek, N.J.
"We define design/build services as a triangle of control over a project -- encompassing the architect or designer, the client, and the contractor -- where everybody has an equal say in the budget and the design. And where the customer has a lot more control over the entire process."
--Bill Shaw, Wm. Shaw & Associates, Houston
"Our prospects do -- at least those who sign a design agreement with us. They realize they're going to pay a professional for these services and by contracting with one firm, a design/build company, they can have a better, smoother experience rather than going first to a design professional and then to a contractor."
--Dennis Gehman, Gehman Custom Builder Harleysville, Pa.
"Here in Pittsburgh, design/build isn't exactly very popular. [Homeowners] don't necessarily understand it. It has to be explained and spelled out in the sales process so they can see the value."
--A.J. Stones, AJ Stones Design Contractor Jeannette, Pa.
How do you convince a homeowner to hire a design/build firm over pursuing the traditional bid-build process?
|
|
sell it as a service |
45% |
emphasize cost savings | 7% |
explain added control | 19% |
other | 29% |
"We explain it to [prospects]. We offer them the ability to circumvent an architect and keep the cost down, and at the same time qualify the project cost. So they don't have the drawings done and then regret the fact that they paid $1,500 or $4,000 to $5,000 for drawings that they can't use because they can't afford the project."
--Jon Vogel, New Outlooks Construction Group, Robbinsville, N.J.
"Our prospects do -- at least those who sign a design agreement with us. They realize they're going to pay a professional for these services and by contracting with one firm, a design/build company, they can have a better, smoother experience rather than going first to a design professional and then to a contractor."
--Dennis Gehman, Gehman Custom Builder Harleysville, Pa.
"Here in Pittsburgh, design/build isn't exactly very popular. [Homeowners] don't necessarily understand it. It has to be explained and spelled out in the sales process so they can see the value."
--A.J. Stones, AJ Stones Design Contractor Jeannette, Pa.
Who does your design work?
|
|
company owner |
37% |
in-house designer | 11% |
outside partnership | 16% |
bid on architecturally designed projects |
2% |
outside architects | 15% |
salespeople | 7% |
an employee on CAD | 2% |
other | 10% |
"We explain it to [prospects]. We offer them the ability to circumvent an architect and keep the cost down, and at the same time qualify the project cost. So they don't have the drawings done and then regret the fact that they paid $1,500 or $4,000 to $5,000 for drawings that they can't use because they can't afford the project."
--Jon Vogel, New Outlooks Construction Group, Robbinsville, N.J.
Who owns the design?
|
|
other | 12% |
client | 35% |
company | 54% |
"Being an architect, I can explain that hiring an architect will cost them an additional fee beyond what we would normally charge for construction. And that architects, while talented in design, are terrible estimators as a group. I can explain to them how they can expect to pay a fee between $2,000 and $5,000 to the architect and expect to pay 15% to 25% more than the architect suggests the actual cost to construct the design will be. In that sense, they can save themselves money and time by coming with us."
--Jim Molinelli, ARDO Contracting, Columbia, Md.
"We don't convince homeowners of anything. We simply discuss the pros and cons and let them decide what fits best with their desires."
--Scott Ross, Ross Construction, Gladstone, N.J.