Design & Build in the UAE: The benefits

Words by Andrew Bereza, Monday 14 July 2014

Clients are always looking to find ways to minimise the construction duration and their exposure to risk, and Design & Build contracts could hold the key. As the construction market in the GCC, and more specifically the UAE, becomes increasingly more sophisticated, clients are employing different procurement strategies to enable them to not only get in the ground as soon as possible, but also to minimise their exposure to risk. A major source of this risk is the traditional FIDIC contract, which is employed most commonly in the region.

Whilst it is possible to achieve the benefits normally associated with Design & Build through the traditional FIDIC contract, the apparent frustration experienced by some of our clients with their existing traditional contracts with main contractors - where architects, engineers or project managers act as the engineer of the contract, indicates that it's rare.

Typically it takes an architect and main contractor decades of working together before they reach such efficiency with communication, mutual respect and trust. The recently completed Foremarke School, is one such example, where BSBG and Multiplex worked through a traditional contract and the client, Evolvence, enjoyed the benefits of Design & Build.

As BSBG has previously completed and is currently undertaking numerous projects through a Design & Build contract, The Opus in Business Bay and the Masdar Headquarters building being just two examples, we are often asked by clients less familiar with Design & Build what the actual benefits are. We feel the benefits are as follows:

Benefits of Design & Build

Consultant and contractor are on the same team - The relationship between the consultant and contractor is altered from adversarial to team focused. This focuses the team on delivering the project not attributing blame.
The buck stops with the main contractor and their team - This includes but is not limited to the aesthetic, cost and the time for completion. When the same team that designs the project also builds the project, there tends to be much more attention given to the quality of construction information and the cost and the programme (including construction sequence) in the design phase.
Continuity - As the Design & Build team is involved from start to finish there is a deeper and consistent appreciation for the employer’s actual requirements.
Expertise - For Design & Build to work it is critical that not only the team has previous experience but they have also created an organisational structure that can support it and have a proactive, team orientated approach to problem solving. The best Design & Build contractors have individuals within their organisation that are specialists in architecture, structure, MEP (inc. sustainability) and facades from both a design and construction perspective. This allows the main contractor to effectively lead the project from an informed and experienced position, ensuring successful delivery of the project.
Collaboration - Design & Build can reduce the conflict which is often experienced in the industry. With the main contractor bringing the reality of time and cost to the design process from a very early stage, everyone is forced to face a reality that is sometimes reserved for the end of the traditional tender process. By this time all parties lose time and money as costly value engineering exercises are undertaken and the adversarial relationship commences with parties defending their entrenched positions, rather than collaborating to find solutions.
Transparency - As it is a more collaborative process, people more often say what everyone needs to hear, not what they want to hear. This clarity of information allows the project to stay on programme and for the client to make informed decisions at the right time.

The right partners help

The benefits highlighted above can only be achieved if the right team is employed. Firstly it is imperative that a main contractor with prior Design & Build experience, an organisational structure to suit Design & Build and a commitment to being proactive from the offset are engaged. Secondly, and equally as important, this main contractor must select and design the sub-contractor team that is aligned to the main contractor with respect to these key attributes.

Moving forward

The Design & Build procurement strategy has been successfully and widely used in developed markets for decades now. It is only a matter of time, once clients experience the above benefits, that its implementation in the GCC, and more specifically the UAE, becomes widespread.

BSBG has had first hand experience with its success, where a project like the IRENA Headquarters in Masdar City or the Baker Hughes Jebel Ali facilities have been taken from the start of schematic design to completion with all associated approvals in 14 and 16 months, respectively. Both of these projects were delivered before the original completion date, which is not always the case in the GCC or the UAE.

Whilst it is not required or suitable in every instance, Design & Build is certainly a procurement strategy that should come in for consideration for projects that require fast track completion.

RIBA Workstage images from www.architecture.com

Andrew Bereza

Senior Partner

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