In the rapidly evolving real estate market, commercial landlords face the constant challenge of staying competitive while maximising the value of their investments. There are two common routes that can be taken when considering a refurbishment or fitout of your real estate: traditional or Design & Build. Whilst traditional is historically customary, the D&B route is now a common and competitive route for projects of all sizes: it offers numerous benefits that can streamline project delivery, enhance efficiency and ultimately boost ROI. In this blog we seek to explain each method, and the reasons why landlords should consider the D&B route.
The traditional route comprises a tripartite arrangement, involving a client, consultants and the contractor. The client directly sets and manages the design and budget parameters, and appoints individual specialists (such as MEP, quantity surveyors, sustainability consultants, and project managers) to deliver the project. Separating design from construction, the client will appoint consultants to first design the project, and then invite contractors to submit tenders on a single-stage competitive basis.
Projects delivered using a traditional process tend to experience escalated budgets due to the disconnect between the consultants and delivery team, because it is not in the consultants' interest to minimise costs. Furthermore, the process is more time-consuming due to more tenders and multiple lines of communication.
The D&B route offers a turnkey solution with design, specification, consultancy, project management and construction services provided by one entity. This unified approach means that the client deals with a single point of contact for all aspects of the design and construction process, simplifying communication and decision-making. The project can follow either a single-stage or two-stage tender process, and is typically 33% faster than the traditional route!
The Design & Build procurement route offers commercial landlords a modern, efficient, and cost-effective approach to real estate development. As the real estate landscape continues to evolve, commercial landlords who leverage the benefits of the Design & Build approach will be well-positioned to achieve sustained success and deliver exceptional value to their tenants and investors.
Streamlined communication and coordination - with one organisation responsible for both design and construction, misunderstandings and conflict are minimised, translating to a smoother project execution for landlords.
Faster project completion - design and construction activities can overlap, enabling projects to be completed up to 33% faster. Early collaboration between the design and operations team can help identify potential issues before thy escalate, leading to more proactive problem-solving and reduced delay.
Cost savings and budget control - with a single point of responsibility, there is a greater degree of cost certainty. The design team works closely with the construction team from the outset, ensuring the project is designed within the budget constraints, and enabling innovative and cost-effective solutions without compromising quality. In addition, costly changes and budget overruns risks are minimised.
Enhanced quality and innovation - the combined expertise of the designers and construction experts makes for superior results, often resulting in exceeded expectations.
Facilitated flexibility - adjustments can be made much easier when the design and construction teams are working in tandem. This is particularly beneficial for landlords who need to make modifications based on evolving market needs, or tenant requirements.
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With a focus on quality, efficiency and client satisfaction, our turnkey operating model for landlords offers a comprehensive solution from inception to completion. From pre-acquisition support, right through to resolving dilapidations and renovations to uphold property value, we offer a seamless journey for every landlord.
