Design-Build, Lump Sum, Contract Management, Cost Plus are all agreements of how the risk of the renovation or remodel project is allocated. Which one you pick is up to you and your contractor.
I say it’s up to you and your contractor because, it’s unlikely that you actually managed to solicit the three quotes as recommended in the previous item. Why you didn’t get the quotes is your thing, but you did cheat yourself out of some very good information.
My bet is you didn’t get the three prices because you felt the project is pretty clear and straight forward and it doesn’t need a formal drafting of a scope of work with the drawings and specifications. Perhaps too, you feel that you don’t have the experience to draft such a document and you believe hiring someone to do this is too costly when the very helpful contractor can do this for you.
It does take time and effort to put such a document together. And your project just doesn’t warrant it. It’s easier to call the reference you got from your neigbour, find out when the busy contractor could possibly find the time to do you a favour and come and look at your project.
The contractor will walk though the project with you. He will point out things that you hadn’t thought of that need to be done. He will also point out things that you should do while you’re at it. And he will offer advice on whether you should do this or that. All of it good advice, no doubt.
The problem is that this renovation project is now getting a tad out of control. Not too much. But you’re loosing control never the less. This is normal, because at some point the contractor will have total control of your project, and depending on the chosen type of contract, your wallet.
Unless you know exactly what type, make, and size of door that you want, and what type and number of recessed lights you want, the contractor will specify these items. He will price them and the other items that you’ve not thought about. And before you know it, the project becomes either a design build or cost plus project.
Design build is just that. The contractor designs the work and builds it. He is responsible for the design and he is responsible for the construction of the design. If something doesn’t fit, work or wasn’t thought of. it’s not your problem. It’s very unlikely that you will receive a true design build proposal.
More likely you will receive a cost plus proposal based on the contractors’ specified products. The elements of the bid are hopefully a complete recitiation of your requests made at the project walk through. But if there is something that is missed or wasn’t thought of, such as who does the removal of the old door and floor tile, the contractor will either ask you to do the work, or ask you for more money.
Depending on the complexity of the renovation project or remodel, and they all look simple in the beginning, it may be OK to go the design build or cost plus route. Although make no mistake about it, it takes someone very experienced to chart the often rocky shores of these types of arrangements.
- Frank Soellig