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Technology has created a dynamic landscape where construction tools, equipment, materials and systems are evolving faster than ever before. Every element is more complex. For instance, there are over one hundred decisions required to complete a single door opening. Businesses and services are changing as well. The result is a virtual minefield where clients are ill prepared to understand their costs and options, but are required to assume full responsibility nonetheless. Add the fact that a building investment may be the greatest risk they ever assume and the question becomes crystal clear: how can clients find confidence and ensure they are getting value for their investment?
In years past, designers spent many months and thousands of dollars creating documents so contractors could “competitively bid” projects. The theory was that competition among contractors would net them a “good deal” on the building price. When bids were over budget the client would pay again to revise the designs and reduce project scope until the project became affordable. Once bids were within budget the “low bidder” was awarded a contract to build the project. Whether that builder was the highest quality, most conscientious, most safe, most experienced, or most qualified had nothing to do with it, and often times the successful bidder was simply the “cheapest” bidder.
There are inherent problems with this approach. The builder is paid to build only what is in the documents. Benefits that could be realized from a master builder’s experience and talent are ignored and wasted, and there is no incentive for suggestions that might reduce the client’s costs or to include items that will benefit the client over the long term. It’s like having an uncle who is a master mechanic and leaving him home when you go shopping for a used car.
Henkel Construction Company became sensitive to this issue over twenty years ago and decided there had to be a better way. Accord Architecture Company was formed in 1986 as a subsidiary of Henkel Construction. Henkel and Accord have been delivering design and construction services on a combined basis ever since.
- A single team with one goal, versus separate companies with independent goals.
- Seamless electronic communication between team members.
- Early price guarantee, value engineering, and budget management throughout design.
- Phasing of complicated projects where ongoing operations cannot be impacted.
- Faster delivery from concept through grand opening by as much as one third!
- Increased quality.
- Lower annual operating and maintenance costs.
- Lower initial costs by as much as twelve percent!
The results are undeniable as well. Clients are returning multiple times and design-build projects are rising almost exponentially as a percentage of our business.