In today’s fast-paced and ever-evolving construction industry, projects face unprecedented challenges, from supply chain disruptions and inflation to labor shortages. Despite these hurdles, forward-thinking firms are embracing early collaboration as a key strategy to drive success. By involving project owners and stakeholders from the outset, construction teams can foster flexibility, proactively manage costs, and select the most effective project delivery methods to ensure smooth execution.
The shift toward collaborative models like design-build and construction management-at-risk (CMAR) underscores a broader industry trend. Recent data reveals significant growth in these methods, reflecting their ability to address modern complexities while delivering projects on time and within budget.
At Paragon, we’ve seen firsthand how early engagement transforms outcomes. Through proactive risk management, real-time feedback, and collaborative innovation, we’ve helped clients navigate the complexities of today’s market with confidence. This article explores the benefits of early collaboration, the rise of design-build and CMAR, and strategies for choosing the right approach to achieve exceptional results in a challenging construction environment.
Embracing Early Collaboration
In today’s construction industry, delivering projects on time and within budget continues to face significant challenges such as supply chain delays, inflation, and limited labor resources. However, leading firms have found that early collaboration with project owners is essential in addressing these obstacles. This approach is not only about selecting the right project delivery method but also about fostering flexibility and proactive cost management from the outset.
Rising Trends in Project Delivery Methods
An article from ENR revealed the latest data from the Top 100 Project Delivery Firms, which highlights a substantial increase in revenue for both design-build and construction management-at-risk (CMAR) methods. Design-build saw a 26.1% rise to $137.19 billion, while CMAR increased by 8.56% to $173.97 billion. This growth underscores the industry-wide shift towards more collaborative project delivery models to navigate the complexities intensified by the COVID-19 pandemic.
The Importance of Early Engagement
The pandemic-induced inflation and supply chain disruptions have led to a trend of increased scheduling flexibility and project modifications. This shift, which prioritizes budget management over rigid schedules, is a proactive measure against cost overruns.
In addition, many construction projects risk management plans now encourage project owners to be open to innovative approaches beyond traditional design-bid-build delivery. Engaging integrated design, engineering, and construction teams early in the process is becoming a preferred strategy for many clients— leading to fewer delays on the back end.
Advantages of Design-Build and CMAR
Early collaboration in design-build projects is crucial for meeting critical milestones and staying ahead of competitors. Design-build’s inherent advantage lies in engaging stakeholders early, which is key to successful project delivery.
For example, Daniel Getting, Swinerton’s Director of Preconstruction and Estimating, observes a significant increase in design-build project procurement, particularly progressive design-build, although CMAR remains popular for its flexibility and risk management capabilities. For complex, large-scale projects with tight timelines, a collaborative CMAR or progressive design-build approach is often favored.
Paragon has also used this approach recently with a warehouse remodel project for highly specialized manufacturing. By bringing the stakeholders together early on and getting real-time feedback on design choices throughout the design process, the project stands to run extremely smoothly once the construction is underway.
Risk Management Strategies
Risk management is central to successful project delivery. Preconstruction services in CMAR projects, including virtual design and construction (VDC) and lean techniques, help identify potential scheduling challenges early on. These services are crucially important in navigating material constraints and scheduling issues through direct procurement strategies.
Selecting compatible partners is also crucial. The importance of collaborating with trustworthy partners and understanding contractual commitments to mitigate risks effectively cannot be overemphasized.
Increasing Utilization of Design-Build
Research by FMI predicts that design-build will account for 46% of construction spending by 2026, reflecting its growing popularity based on demonstrated performance and outcomes. Lisa Washington, CEO of the Design-Build Institute of America, notes that owners increasingly favor design-build for its ability to deliver successful projects through early collaboration and flexible procurement approaches.
Paragon’s Perspective: The Crucial Role of Organization and Owner Buy-In
At Paragon, we believe that meticulous organization, diligent schedule and budget tracking, and strong owner buy-in are more crucial than ever in today’s complex construction landscape. Early collaboration with all stakeholders is essential to ensure that projects are not only completed on time and within budget but also exceed expectations. Our team’s commitment to efficiency, cost savings, transparency, and collaboration ensures that we bring predictable outcomes to every project. And using a CMAR delivery method to achieve these goals is becoming progressively more effective. The CMAR approach fosters early involvement of the contractor, allowing for better risk management, value engineering, and alignment of project goals. This proactive engagement helps to address potential issues before they escalate, ensuring smoother project execution and higher-quality results. By integrating the CMAR method, we are better equipped to navigate the complexities of the construction industry, delivering superior projects that meet our clients' high standards and drive long-term success.
For Your Project
Selecting the right project delivery method enhances the value proposition for owners, driving greater transparency, accuracy, and collaboration. By fostering early engagement and embracing innovative delivery models, the construction industry can overcome the challenges posed by supply chain disruptions, inflation, and labor shortages. At Paragon, we are dedicated to transforming visionary plans into landmark projects through our expert construction management services. Contact us today to learn how we can help your projects succeed in this dynamic environment.
