Pros of D&C Contracts
Single-Point Responsibility: D&C contracts offer the advantage of a single point of contact, simplifying project management and communication. The contractor assumes responsibility for both design and construction, eliminating potential disputes between separate entities.
Enhanced Collaboration: With designers and contractors working in tandem from the project's inception, D&C contracts foster collaboration and enable early input from construction professionals. This collaborative approach can result in improved design efficiency, cost-effectiveness, and constructability.
Cost and Time Savings: By integrating design and construction, D&C contracts can potentially save time and reduce costs. Early involvement of the contractor allows for concurrent planning, efficient procurement, and prompt identification of potential issues, leading to streamlined timelines and minimized project delays.
Risk Allocation: In D&C contracts, the contractor often assumes the risk associated with design errors or omissions. This transfer of risk can be advantageous for the client, as it helps avoid costly legal disputes and encourages the contractor to deliver a high-quality and error-free design.
Cons of D&C Contracts
Limited Client Control: With a D&C contract, clients may have limited control over the design process since the contractor takes on the responsibility. While collaboration is encouraged, clients must carefully choose a reliable and reputable contractor to ensure their vision is accurately translated into the final design.
Reduced Flexibility: D&C contracts can restrict changes to the design once the construction phase begins. While this helps maintain project timelines, it may limit the client's ability to make adjustments or modifications during the construction process, potentially leading to dissatisfaction or additional costs for change orders.
Quality Concerns: Although D&C contracts aim for efficient project delivery, there is a risk that design quality might be compromised if the contractor prioritises speed or cost reduction over design excellence. It is crucial for clients to conduct due diligence when selecting a contractor with a proven track record of delivering high-quality projects.
Limited Competitive Bidding: Since D&C contracts combine design and construction, competitive bidding opportunities for individual design firms may be reduced. This might limit the ability to compare multiple design options and potentially affect the final cost.