Los Angeles

The design-build construction model—a collaborative development strategy—has rapidly grown in popularity as a way to control rising construction costs. Within the design-build model, there are several strategies to reduce costs that can accumulate throughout the construction cycle.

"Cost-control is an essential part of design/build strategy, especially in today's high-cost environment," Barry Caylor, VP of business development at OTL, tells GlobeSt.com. "The most impactful strategy developers can implement to control cost is to bring in all consultants as early in the development process as possible. By ensuring that all entities are planning together from the beginning, the developer can avoid costly changes that arise when consultants join late in the process. Early collaborative planning allows the entire team to work together to determine exactly what is needed and in what order, which can save hundreds of thousands of dollars down the line."

Of course, there are many components to cost savings within the design-build model. First, site management and site planning is a crutial way that developers save on construction costs. "Wow amenities such as water features require specific equipment, and in the past that equipment would be placed into in-ground vaults," says Caylor. "Today, we are able to circumvent that high-cost requirement and save developers upwards of $100,000 per project by utilizing an above-ground equipment room and submersed pump equipment."

Today, sustainability has also become essential during construction. Not only is sustainable construction important, it is also a way to create efficiencies that can have a major impact on a development's bottom line. "A third strategy we are actively implementing on all projects is cost-control through strategic sustainability. Energy-efficient pump drives can maximize efficiency, while green technology, even something as simple as LED lighting, can help owners and developers save on electrical consumption and costs," says Caylor.

One of the most impactful components of the design-build model is the design itself, which can have a major impact on pricing. "Today's developers will be best served if they seek out a design/build partner that can work with them on specific design solutions to meet their budget," says Caylor. "For example, show fountains that sit in a basin are more on-trend and actually more affordable than dry decks with interactive water elements or play areas that people walk through and touch. Much of that cost comparison is due to water treatment—the dry deck requires multiple treatments, while a raised basin structure needs only a single water treatment and no reservoir."

It isn't only implementing the model. Caylor also recommends picking the right team from the start. "The right design/build consultant will gain an understanding of the budget from the beginning and develop a design that embodies the stakeholders' vision while also delivering cost control, as well as a host of bottom-line ROI benefits throughout its lifetime," he says.