What is the difference between design & build and traditional procurement?

While there are several options available, more often than not businesses find themselves choosing between two main approaches: office design & build and traditional procurement. But which is right for your organisation? Selecting the appropriate procurement model is crucial to achieving an office fitout that matches your workforce needs and overall business objectives.

Here we explain the fundamental differences between design & build and traditional procurement. Highlighting each method’s key features, advantages and disadvantages, we provide insights to help you make informed decisions about the best route for your business.

What is design and build?

Design & build is a comprehensive, turnkey solution which brings together a number of core services, from design, specification and consultancy through to project management and construction. Whether you’re engaged in office relocation or refurbishment, the design & build method offers a modern and integrated approach to procurement, with all design and construction requirements covered within one contract.

More streamlined than the traditional procurement model, design & build is a cohesive and cost-effective option, leading to seamless transitions between stages, reduced delays and accelerated project delivery. Meanwhile, a single point of contact for all design and construction phases makes for clearer communication and decision-making.             

Office design & build: key stages and involvement

When businesses enter into a design & build contract, they hire a single company to manage the whole project from beginning to end. Once appointed, the company oversees every stage of the design & build office fitout process. They devise the workplace strategy and develop design concepts, then manage the planning and procurement and deliver all construction work.

Your corporate office interior design & build company will either have all the required capabilities under one roof, or will directly manage its own specialist subcontractors. Either way, you benefit from your contractor being involved in the early stages, which increases the practical design aspect – or ‘buildability’ – of your project. This means the transition from concept to construction should be relatively smooth, with design and build phases often overlapping.

The advantages of design & build

The office design & build procurement route is becoming increasingly popular among UK businesses due to its multiple efficiency gains. With design & build projects taking on average
5-12 weeks from beginning to end, this option enables fast and efficient refurbishment of new, empty or existing office space, benefitting both landlords and tenants.

Design & build also shifts all responsibility to the contractor, which de-risks the procurement process for you, the client. What’s more, costs are fixed from the outset, providing 100% cost certainty and reducing the likelihood of budget overruns.

The key advantages include:

• Accelerated project delivery: design & build is estimated to be 30-to-40% quicker than traditional procurement.
• Cost certainty and savings: fixed pricing and accelerated timelines deliver cost benefits to the client.
• Value engineering: value engineering occurs at the outset, increasing cost and resource efficiency.
• Single point of contact and accountability: the design & build company takes all responsibility for the project, reducing risk and burden for the client.
• Quality control: a single contractor is better able to manage multiple moving parts and ensure consistent standards at all times.
• Increased agility: design & build is able to flex to shifting client requirements, allowing for quick adjustments.
• Improved communication: with one point of contact, communication becomes streamlined and collaboration is enhanced.

The disadvantages of design & build

Design & build procurement will suit some companies less than others, but overall there are relatively few disadvantages to this route. Those occasionally cited include:

• Competition for contractors: while more and more clients are opting for design & build, there are only so many contractors able to offer the full range of relevant services. This means it may be harder to find the right provider for your business.
• Lack of control: in handing over responsibility to a single contractor, you also relinquish control. As a result, you may have to regularly check on progress to ensure everything is on track.
• Potential compromise: while costs are fixed, any unforeseen overruns or delays could result in contractors trying to make up time – and cost – by cutting corners or procuring cheaper materials.

What is traditional procurement?

Traditional procurement, also known as ‘Design Bid Build’, is the conventional approach to project delivery. The key characteristics of the traditional procurement method include the bifurcation of design and construction, with stages managed sequentially by individual contractors.

Within this procurement pathway, the client sets the design and budget scope. An architect or design consultancy typically leads the design development, with contractors providing specialist services as the project advances. Individual contractors can include interior designers, IT consultants, project managers and furniture experts, among others, with building contractors coming on board at a later stage.

Workplace programmes that adopt traditional procurement typically have longer lead times due to the scale of the work involved. Projects can last between 12 and 36 months – project duration which is best served by traditional architecture and more conventional methods. It is a route favoured by global businesses and PLCs, who tend to trust in more long-established and orthodox practices.

Traditional procurement: key stages and involvement

The traditional procurement approach is divided into three key stages: Design, Bid and Build. Here’s how they work:

1. Design: the first stage involves the appointment of an architect or design firm, with whom the client works closely to create detailed design specifications for the refurb or fitout. 
2. Bid: following the completion of the design concepts and plans, the project is submitted for tender. A bidding process ensues, with various contractors making their case for selection. The client chooses their preferred bidder, with their decision shaped by factors such as proposed schedule, cost, and how well a contractor’s experience aligns with project requirements.
3. Build: the third and final stage is the construction process. The appointed contractor sets about executing the client’s design vision, continuing until the project is completed and passed back to the client.

Unlike design & build, where responsibility is allocated to a single contractor, with traditional procurement the client remains central at all times. As client, you’ll be actively involved in appointing and coordinating all individual contractors and specialists. While this means you retain greater control over key project elements and decisions, managing all moving parts can take up a great deal of time and energy.

Some believe the siloed and sequential nature of traditional procurement helps to clarify roles and responsibilities. Others, meanwhile, argue that the pivotal role played by the client, who has to manage all communication and decision-making, can lead to miscommunication and delays.

The advantages of traditional procurement

The advantages of traditional procurement are mainly concerned with ownership and control. For clients who have a strong idea of the vision they’re trying to achieve, and of how their project should progress, the traditional method could be the best option. If you like to keep a close eye on project detail, and if you prefer to collaborate closely with designers and architects, the dynamics of traditional procurement may suit you well.

The key advantages include:

1. Agency, ownership and control: at the centre of all project decisions and development, as the client you will maintain control and keep track of details.
2. Influence over subcontractor selection: During the Bid stage, you’ll be able to review all potential subcontractors and decide who to select based on cost, quality, or other criteria linked to your project requirements.
3. Alignment of cost and building needs: rather than having to make an upfront decision on costs, you can agree on your budget once you have a precise understanding of the building work required.
5. Direct contact: You’ll have a direct relationship with your design team and all consultants, subcontractors, and specialists you appoint to carry out the work.

The disadvantages of traditional procurement

Traditional procurement is a good option for large, specialist and complex projects and companies with flexible budgets. But the emergence of design & build has served to highlight some of the disadvantages associated with the traditional route. These include:

1. Cost uncertainty: with no fixed budget established at the outset, traditional procurement projects can be hit by hidden costs and spiralling fees.
2. Complex communications: as client, you’ll have to deal directly with multiple people and parties, which can be a drain on your time and resources.
3. Increased risk: the flipside of having more control is that you also shoulder more of the risk burden for your project.
4. Protracted lead time: while it’s well known that traditional procurement takes longer than design & build, there’s an increased risk of delays which can extend project duration even further.

What is Detail & Build?

Traditional procurement is also sometimes referred to as Detail & Build, which describes a similarly orthodox process for design, planning and delivery of office renovation, refurbishment or new build. Detail & Build begins with design development, following by a detailed preconstruction phase comprising planning and budgeting. As with other traditional procurement routes, Detail & Build involves the separation of design and construction, requiring rigorous project management, collaboration and coordination at all times.

What is the difference between design and build and traditional procurement?

Whether you opt for traditional procurement or design & build depends on the type of business you run/work for and your specific project requirements. To help you compare and contrast these two pathways we’ve provided the table below, highlighting the key features of each and the principal differences between them.

	Traditional procurement	Design & Build
Cost	Large, complex, and specialist projects, where the owner can manage the whole process	Construction cost agreed and fixed from the outset
Control	Owner/client retains control over design, communication and construction	Requires less owner/client involvement, with control handed over to project team
Time	Design and construction are siloed and sequential, typically resulting in longer timelines and increasing the likelihood of delays	Construction can overlap design completion, which helps to accelerate project delivery
Risk	Risk of consultant/contractor non-performance and delays falls on the client	Client liability is diminished, with project team shouldering the majority of risk
Design	Equivalent capabilities	Equivalent capabilities
Communication	Owner has to manage all communications between multiple design and construction parties	Single point of contact for duration of entire project
Quality	Equivalent capabilities	Equivalent capabilities
Value engineering	Occurs when the contract is awarded	Occurs at project outset
Flexibility	Limited flexibility regarding client-side changes, which can add to project time and cost	Client-side changes can be addressed with agility and speed. Designs and costs produced simultaneously
Suited to…	Large, complex and specialist projects, where the owner can manage the whole process	Projects where cost certainty and speed are vital, and where a single point of contact is required

Which procurement method should you choose?

When it comes to choosing between traditional procurement and design & build, you need to think carefully about your project priorities. Consider the key differences between the two approaches, and think about which best fits with your requirements.

Do you value being in control and having a clear view of project details? Do you have sufficient flex in your budget to accommodate unforeseen costs? And do you prefer to trust in established methods that prioritise quality over speed? If so, traditional procurement is probably for you.

If, on the other hand, you value fixed-cost certainties, efficiency and accelerated project delivery; and if you’d rather a project team deal with all communication and take on the risk and responsibility – then design & build will be your best option.