One might assume that the best way to manage the home-building process is through a system known as “Design-Bid-Build.” This allows builders to compete against one another for the work, which the owner hopes will secure them a lower price. 

Design-Bid-Build is the process where an owner first hires an architect or home designer. When the drawings are complete, the owner asks builders to provide bids on the project. After they have received all of the bids, they select their builder. On the surface, it seems that this approach would help the owners to obtain the lowest price for their home, however, there are some flaws in this way of thinking. 

First, homes designed without a knowledge of construction costs often come in over budget. Most architects do not have the ability to discuss budgets with accuracy. Many of their designs never get built or require expensive re-designs.  This creates more work for the architect, for the contractor, and also for the homeowner.   

Second, more often than not these “bid” projects are under specified. Construction drawings by themselves typically do not provide sufficient detail and information for true apples to apples comparisons. Builders bidding against each other will likely propose lower quality materials or methods and even completely leave out certain components of the project, because they are trying to make their price the lowest. 

The lowest bidder is usually the one who proposes the cheapest way to build it, NOT the best (or even most cost-effective) way to build it.  It’s just a race to the bottom dollar.

In contrast, the Design-Build process brings the builder into a relationship at the front end. Some builders provide design services in house, and others will use their knowledge and experience to help the client choose a designer/architect that’s best for them and/or their project. Generally, the builder proceeds with a Pre-Construction (or Professional Services) Agreement. This agreement outlines the services that the builder will provide during the planning stage, such as: 

These services typically provide valuable information to the client. Even if they decide not to select this particular builder, they gain very valuable insight into the budget for their home and the decisions required to make it a reality.

Little is more meaningful and personal than a home. At Green Square, we believe the experience of designing and building your own home should be rewarding and enjoyable. Designing and building a home involves numerous decisions about components, systems and services selected from criteria that include price, quality, appearance and performance.  Building a new home can be difficult, but it doesn’t have to be.  Green Square can help with the decision making, ease your worries and provide an accurate budget for your project, before you even start building! 

The Green Square team is here to collaborate with you every step of the way. Contact us at greensquareinc.com/contact to learn more. 

Articles related to this topic:

Which Comes First: Design or Budget? 

How to Pick the Right Builder for Your New Home 

The Not-So-Obvious Benefits of Building a Custom Home in Indianapolis