Dive Brief:
- A Dodge Data & Analytics SmartMarket report, Managing Risk in the Construction Industry, has determined that collaboration between building owners, general contractors and subcontractors can aid in keeping construction project costs under control, result in a timely delivery and enhance the safety environment.
- The study, which resulted from a partnership with Alliant Insurance Services, e-Builder and Procore, pointed to industry acknowledgment of the benefits of project team meetings, brainstorming sessions and collaborative risk management plans but also found that construction was still fighting silos and competitive attitudes.
- The report also determined that collaboration has the potential to assist in mitigating the risks that project stakeholders perceived as the biggest threats such as defaults, subcontractor management, labor shortages, defect claims and warranty disputes.
Dive Insight:
Research is increasingly showing that collaboration on projects — and the earlier the better — leads to more positive project outcomes. The design-build and integrated project delivery methods are becoming more popular choices as they can eliminate misunderstandings before crews even break ground. This, proponents say, leads to fewer change orders and conflicts down the road.
While the construction industry has become more accepting of design-build delivery, legislation in half of U.S. states has not yet caught up. Currently only 25 states allow design-build to be used on public projects despite studies that show it can reduce costs and help managers compress schedules.
New York Gov. Andrew Cuomo proposed legislation this week that would allow for greater use of design-build statewide, excluding projects in New York City. City officials and much of the construction industry are on board with the delivery method, but previous attempts to expand its use there have failed due to resistance from state lawmakers. Nevertheless, New York City Mayor Bill de Blasio is expected to reintroduce design-build legislation.
Richard Thomas, director of state and local legislative affairs for Design-Build Institute of America, told Construction Dive in October that given the benefits, the shift toward more regulations allowing design-build are expected to continue. California passed design-build legislation last year and now permits state-funded transportation projects to be built using the method. In November, Orange County, CA, executed the first design-build contract under the new rules — a $1.2 billion highway expansion.
