Speaker 1 (00:00): Another amazing episode General Contractors Baton Rouge.
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Speaker 2 (00:11):
Welcome back to the K-Cup. I’m your host, Joan or Tripp, and I’m here again today with John Kelly, the CEO, and founder of Kelly Construction Group. We got a great episode, episode four for you. Today, we’re gonna discuss design build as a project delivery method. So there’s countless points that we could use to make our case why we think design build is a superior way to deliver a project for an owner. But we’re just gonna touch on three points today that we think will, you know, easily make our case as to why it is such a great way to collaborate with other industry professionals and deliver a superior project to you know, owners and investors. So, John, like I said, we’re gonna dive in here and talk about three points of design build and, and you know, why it’s such a great way to build a project, but I know that you have some, you know, feelings about design build yourself that you might wanna share with us before we get started on these three points.
Speaker 3 (01:14): Here we go General Contractors Baton Rouge.
Yeah. The thing that I really like about design build is it builds a team effort. It, it builds a team in the beginning. You have a group of people working together to accomplish the goal. I know team is big here in our office. Mm-Hmm <affirmative>. We, we really we really emphasize that a lot. Yep. And, and that’s why we really lean into this method because you build a team in the beginning to accomplish the goal. You know, another thing that it really does it, it allows you to see who you could potentially be working with prior to really moving very deep into this project at all. It gives you a feel for, you know, the client. It gives you a feel for the design team, and it’s a good opportunity to just kind of recognize, Hey, you know, these guys are gonna be great to work with.
Speaker 3 (01:54):
They really fit the bill for what, who I’m looking forward to build my project. Or maybe they don’t. And yeah, that’s a great perk right there in the beginning, if you find a contractor or some, you know, design professional Yeah. That you don’t, you don’t feel like you jive with. Yeah. Then you’ve already realized that Yeah. In the beginning of the project before you were already potentially thousands of dollars in. Yeah. So, so that’s huge. And, and then the other side is, is once you do have that team built and you do, you’ve identified some people that you can work with, now you really have all the pieces you need to make this project very successful. Yeah. so that’s, that’s why I really enjoy this process and, and really like the design build method of construction. Yeah. And, and for us, what that looks like to be clear is, is typically we would meet with a client they would come into our office, we would start to understand what they want, understand what they need for a project, and then we would put all the pieces together to meet that need.
Speaker 3 (02:56): More good stuff General Contractors Baton Rouge.
We would bring in an architect engineer, we would bring in our subs any pieces that we have that can be valuable to putting together a successful design. We would bring all those in at the beginning Yeah. And, and work towards meeting that owner, that owner or client’s need. Yeah. so that’s why I really like the design build process.
Speaker 2 (03:17):
Yeah, that’s great. That’s a great point that you make, is that you, you kind of get a chance to, you know, vet all the players, so to speak, before you’re in too deep. And I think, I don’t think enough thought is given to projects in that regard ahead of time. I think a lot of, you know, different players might rush into these things and not realize that once that project starts, you’re married to that person or that entity for, you know, six months, a year, whatever the duration is right. Of the project. So with design build, you do get an opportunity to really have some, some great conversations and really get a feel for each other and make sure that you’re gonna be able to collaborate. And it’s not gonna be, you know, one of these situations where Right. You just can’t seem to get things worked out with each other. So yeah. Great, great process there. So let’s get into these three points. The first one I wanted to talk about was the fact that design build can really streamline timelines. It, it’s it’s able to do that because a lot of things can happen simultaneously or concurrently. So maybe you can get into that a little bit and tell us, you know, how that can happen.
Speaker 3 (04:27):
Yeah. So I mean, I think, you know, the way it can really impact duration you know, first of all, it can actually shorten the design period. Because once you’re collaborating and working together with an architect or engineer and an owner, and you’re all sitting at the same table, you’re only working off of specific details that are needed. If this is a bid process, there’s a tremendous amount of work that goes in into specifications you know, huge build, bidding pack or drawing, drawing packages that Yeah. You know, tons of details so that everybody’s bidding off of the same Yeah. Exact scope. Everybody’s working off the same exact deal, and there’s just a lot of work that goes into creating one of those bid packages. Yeah. you know, in the design build method you’re working together as a team, everybody knows the expectation.
Speaker 3 (05:20): The great points keep coming General Contractors Baton Rouge.
It allows you to, to, to really, to, you know, minimize, you hate to call it say minimize, but basically it, it helps you make a smaller, a package, a smaller draw, a drawing package, a smaller spec book. So therefore it shortens the design period, which means we can go to construction a lot quicker. Yes. the, the other, the other thing is you can actually start to do some work on a project, on a project during the design period. Yes. And that’s just, that’s not possible in, in a bidding pro project that everything has to be complete and then everybody bids and you start the work. Yes. And potentially don’t start the work because maybe the budget’s too much and you have to kind of reevaluate,
Speaker 2 (06:02):
See that happen a lot.
Speaker 3 (06:04): More good stuff General Contractors Baton Rouge.
So what, what, what that looks like is, and we just recently done this on a project where, you know, we come in, we identify the demolition phase of the project, we actually did a demolition package, we submitted it to permitting while we’re still continuing on the architectural and the MEP. Yeah. We’re able to go in and demo this spot, demo everything out, get it ready for the next phase, while, while, you know, design is still going on. Yeah. you can actually do that for, for the civil package. You can, there’s different layers where you can do this kind of thing. It allows for the project to start before the architectural plans or before the, you know, construction plans are a hundred percent complete. Yes. so anytime you can get in there and do some work while some other things are going on, it is basically like overlapping some subs during construction. Yes. It allows for the project to happen a little bit quicker. So I think that’s two, two major ways that design build really lends itself to, to shorten the duration of a project.
Speaker 2 (07:07):
Yeah. So the just to, you know, reiterate or, or kind of shine a light a little further on those two items. So you’re saying that with design build, you’re able to have, you know, the architect and the contractor kind of working side by side and, you know, things can be happening simultaneously, whereas with the traditional method, those two entities are usually stacked in for end all the design is done, and then the contractor comes along, parks his bus right here, and, and you’re segmented, you’re not really working together. And then on top of that, the owner is insulated, you know, through the architect. So you’re not having direct collaboration with the owner either. But with the design build, what you’re saying is that you have the owner there, or the design team is there we’re there, you know, we’re able to start to you know, estimate and, and figure out all the nuts and bolts of, of the project to affect design and and minimize design in a lot of ways, because like you’re saying, they don’t have to cover, you know, dot every I and cross every T before it even goes out to bid, because it’s not going out to 20, 30 different contractors.
Speaker 2 (08:21):
You’re already in the same room and working together as a collaborative team. The other thing I got from that is that and, and feel free to jump in if I’m not completely correct, but you’re able to start putting a budget together. So instead of like the traditional bid process where you’re having to, you know, do a line item estimate of a project, which is very lengthy, very detailed, you’re able to kind of, you know, hue out or hu out this big block of budget to work with you, you can get on the same page with the owner about what their budget is, and then that budget can really inform the design and the processes and how the job unfolds. So, totally different approach, but it sounds to me like with the design build approach, it, it seems to me like it would be more realistic based in reality, like actual costs and, and all that. Is that accurate to say that?
Speaker 3 (09:18):
Yeah, definitely. Just trying to think of a good analogy here to, to make this <laugh> to make this work. But I mean, it’s almost like, you know, the a the architect is the quarterback, and as, as a, as a contractor, you’re the receiver, but you’ve never seen the play <laugh>. You know what I mean? Yeah. You’re expected to go out there and, and, you know, perform at a high level, but you don’t even know the play <laugh> because you haven’t been involved from the beginning. Yeah. So if in that design build process you’ve been working the whole time together, there’s just, there’s, there’s no surprise. Yeah.
Speaker 2 (10:00):
No audibles being called.
Speaker 3 (10:02):
That’s right. Everybody’s on the same page. Yeah.
Speaker 2 (10:05):
Huh. Cool. All right. So in, in that way, just to recap, that’s, that’s what can streamline the process is that everybody is collaborating together at from the beginning and moving the ball forward, so to speak from the outset. So getting back to the cost then that’s the second point I wanna talk about was how it’s easier to manage and control costs throughout the length of a project with design build than it is a traditional method. Could you elaborate on that, why that is?
Speaker 3 (10:40):
Yeah, so I mean, I think, I think the major difference between design build and the bid process mm-hmm <affirmative>. Is basically from our standpoint, design build starts with a budget. It starts with a cost in mind. Yes. And then you work towards the design and you work towards putting a project together that can meet the owner’s budget. Yeah. in the bidding, in the bidding method, you know, that cost is not realized or that budget is not realized to, you know, some months into the project, you already have a large portion of design done. Mostly the design’s complete. Yeah. And, you know, you get to the end, a lot of times that budget don’t meet the need of the owner, or it exceeds their budget. That’s a surprise that don’t happen in design build. Yeah. you, you set that budget in the beginning and you work off of that budget the whole time.
Speaker 3 (11:36):
Yeah. And that gives the owner, that gives the owner or the end user some power, they can start to make decisions knowing what that number is. They’re not waiting three or four months in wondering to figure it out. Yeah. so that’s, that’s one part that’s huge. And, you know, we, we are able to build, you know, pretty accurate budgets based off of jobs that we have going, or jobs that we’ve recently completed mm-hmm <affirmative>. So it’s not like we’re out there throwing together a square foot number or just pulling these wild numbers outta the air. Yeah. Our budgets are pretty accurate. Yes. so that really empowers the owner, like I said, to, to be able to decide, Hey, we gonna do this, let’s move forward, really get the ball rolling. Yes. To where, you know, in the bid process, you, you typically, they would hire an architect and go through all the, you know, the design and back and forth, and then if this project is over budget, then you gotta figure it out and you’ve now you’re three or four months in Yeah. And you, you still don’t even know
Speaker 2 (12:42):
Back to the drawing board
Speaker 3 (12:43):
What’s gonna happen. Yeah. So we’re, we’re able to really put that cost in the beginning and then bring our team together that we’ve already identified that we’re already working well together. Yeah. And let’s build everything based on that budget, and then there’s no surprises. And this thing goes right into construction at the end. Yeah. So that, that bringing that cost in in the beginning it just, it really makes for a lot faster process and, and then there’s, there’s no surprise.
Speaker 2 (13:12):
Yeah. So, speaking of surprises, I wanted to talk a little bit on this point about change orders. We know that the, a lot of the traditional project delivery methods, change orders can be a pain. Like, it, it, they can be prolific because there’s so many unknowns. Even though you got more detail in the, in the plan set, ironically there’s, there’s more unknowns because of the lack of communication and lack of collaboration. So maybe you could give us a little explanation of how those two compare, like design build and what may happen or may not happen with change orders compared to traditional methods.
Speaker 3 (13:51):
Yeah. So I mean, I think change orders are sharply reduced in the design build process. Not gonna say they’re eliminated. Yeah. you always have, you know, owners who maybe want to add a little more to a project or even potentially take a little bit of weight. Yeah. And then there’s, there’s probably gonna be some unknowns from time to time, but, but as I stated, it’s, it’s going to be sharply reduced. Yes. you know, the other, the other thing with change orders is, is contractors doing this every day, we, we kinda have an idea of where those change orders usually pop up. Yeah. And we know the indicators that usually, you know, point to a change order. Exactly. So we’re able to bring those items out early on in the design phase in our, in our team building you know, timeframes Yeah.
Speaker 3 (14:38):
To to try to eliminate those and point ’em out. Yeah. And, you know, make the architect aware or make the, the owner aware of those things mm-hmm <affirmative>. So that’s, that’s another area that we’re able to, you know, help eliminate some of those change orders. And then just to your point, just everybody working together in the beginning, sub making suggestions engineers making suggestions just that whole team building process really eliminates a lot of things that, you know, could be changed. Yeah. And an example of that may be like equipment, like, you know, an engineer may provide, you know, specs some equipment mm-hmm <affirmative>. That there may be a better option out there. Yeah. And they’re just not aware of it. Yeah. And we have a subcontractor sitting at the table that can say, you know, yeah, we ordered this same system at, at a much better price. Exactly. And you identify that in the beginning. Yeah. So now there’s not a change to, you know, in this case would likely be a reduction, which would be fine, but Yeah. The, the idea is just this is how some changes are eliminated.
Speaker 2 (15:37):
Yeah. Yeah. Those are all great points. And like you said, having that budget worked out ahead of time is really what puts the owner in the driver’s seat because they know what they’re working with and they know they have realistic expectations, I guess. And just having that viewpoint could eliminate some change orders right there. So great points. All right. So the last point I wanted to talk about was you know, with, with some developments that are larger on a, you know, larger scale or mixed use where you got, you know, commercial retail mixed with, you know, multi-unit residential, whatever what are the benefits or what would be the benefits of, of having a design build team together working on a project like that as opposed to, you know, the traditional you know, bid method where, you know, this big project goes out to a number of contractors and then, you know, you’ve got a lot of, a lot of unknowns going into this big complicated project.
Speaker 3 (16:43):
So I think the you know, first of all, everything we’ve talked about applies to this point. Yeah. But it’s just more magnified Right. Because it’s a lot bigger project. Sure. So, you know, you can really just, everything that we’ve talked about would be just much bigger. You know, you could really shrink the, you could really shrink the duration of a project. Yeah. A huge project like this. Yeah. Or the more traditional way you could really drag this thing out. Yeah. So everything we talked about already applies into this mm-hmm <affirmative>. It’s just, it’s just magnified a lot more one direction or the other. Yeah. But I think the biggest thing, you know, thinking about something like this is for a developer or owner that has, you know, a big development. And when I’m thinking big development, I’m thinking, you know, some big huge shopping center with a bunch of lease, you know, lease spots or mm-hmm <affirmative>.
Speaker 3 (17:34):
You know, maybe a mixed use, mixed use space with some commercial type areas, restaurants, whatever. Yeah. But I mean, I think that the thing to, to really consider in this situation is bringing in one person, you have that one point of contact mm-hmm <affirmative>. For everything. Yeah. And, you know, I, from a developer, I would want that one company to do not only the shell space, not only the, the big overall picture mm-hmm <affirmative>. I would want that person doing every build out, every build out for every, you know, space that I have available. Yeah. anything, any addition, additional buildings on the site just so that you have that one, one person that you’re dealing with, or one person, one company Yeah. That you’re dealing with. And it just really simplifies, you know, simplifies what they’re trying to do. Yeah. If, if as an owner or developer, you know, you’re building this big space and you constantly have all these little companies or other companies calling you wanting to lease your space, and you’re dealing with different architects and different, you know, construction companies, all these different type people working on your space mm-hmm <affirmative>.
Speaker 3 (18:44): Just about to wrap this episode up General Contractors Baton Rouge.
You never truly know really what’s getting put into these buildings into your space. Yeah. If you have a one stop shop, somebody that’s gonna design it and build it Yeah. Then you know what you’re getting the entire time. Not to mention there’s not 10 spots that you’re having to go back with different architects or different builders Yeah. Iron out all the details, constantly going to, you know, find plans and transfer to each other. You have one company taking care of all of that. Yes. just really, really simplifies the process for big developers and, and, and owners. Yeah.
Speaker 2 (19:18):
So, you know, with all these three points that we’ve considered and, and your kind of, your overview that you gave us of the whole process of design build in comparison to traditional methods, I’m, I’m seeing three ways that you’re saving the project owner a ton of money. One is in design because you, you avoid the over design thing and you’re just designing what you need to build a project. Two is you’re able to, you know, value engineer things which you touched on you can see ahead and, and and even with some of your vendors, your subcontractors, they may be able to say, Hey, this is the way to do this. You’re gonna save X amount of dollars and it’s actually a superior product. You know, things like that. And then third is time. I mean, time is money. And and you know, if you’re a a, you know, a commercial investor, that time is very important.
Speaker 2 (20:13):
And how quickly you get a project completed and start realizing an ROI, you know, on your investment, that’s important too. So it looks like there’s just a lot of cost savings that can be had in addition to just the, the ease of mind for dealing with, you know, a collaborative team instead of having, you know, of the segmented groups that are, you know, can become adversarial, like you said, or have these points of contention come up between them simply because things just aren’t being communicated as thoroughly as they would be with design build. So all great points. It definitely points to the superior nature of design build and why we want to be a part of those opportunities. And if you’re a commercial investor and you’re looking for a design build firm, we definitely are a, a general contractor that loves to collaborate and work in the team fashion instead of working as a lone ranger and you know, looking out for the whole that which includes the owner. So any closing thoughts on design build?
Speaker 3 (21:22):
Well, I think, you know, I think one thing, as you’re talking, I’m thinking about, you know, I think people may be a little hesitant to to buy into this because they feel like maybe with the bid process, maybe they get better pricing because, you know, you got a lot of people trying to Great point, get to the bottom of the you know, be the low number. Yeah. But but the, the time saving the experience, you know, all that really makes for a much better process. And, and at the end of the day, you, you get a lot better product. That’s right. And, you know, I think that once you’ve done this a time or two, and we’ve seen this with architects, we’ve seen it with our subcontractors, it’s, it’s, it’s really a good process. And so far, you know, every time we’ve done this, everybody really likes this method and really leans into it after you’ve done it a time or two. So Yeah. You know, I would just say like, be open to, to the design building method. Like, it’s, it’s, it’s gonna be, it’s a little different, but it’s it’s gonna be enjoyable. You’re, you’re going to get the product that you want and it’s gonna be a good process. Yeah. so, so don’t just discount it is what I would say. Yeah. you know, right off the bat.
Speaker 2 (22:39):
Yeah. Just because something’s been being done one way primarily for a long time, doesn’t necessarily mean it’s the best way. Yeah.
Speaker 3 (22:47):
And we, we, everybody wants the same thing. We, we all want the project to be in budget. We want it to move as fast as possible. Yes. so for us, for architects, for owners, for suit, for subs, it’s a win. It’s a win. Absolutely. so it’s just, like I said, don’t discount it. Let’s do a design build.
Speaker 2 (23:05):
All right. Sounds good. Well, you heard it straight from the horse’s mouth. <Laugh> we love design build and we definitely would love to collaborate with you whether you’re an architect, engineer commercial investor commercial realtor. If you have a client that’s a, a developer investor, and you’re looking for a one-stop shop and somebody that wants to develop a long-term relationship that’s us. So thanks for tuning in. We’re glad you came back to the K-Cup. We hope you come back again, see us real soon. We have a lot more in store for you as these episodes continue to grow and, and unfold with you know, know building insights into our industry and in general that can help out any business owner or entrepreneur. So don’t forget to like and subscribe. If you would, you can find us at the K-Cup on YouTube and follow us on LinkedIn at Kelly Construction Group. And we look forward to seeing you again real soon. Cut. Cut. Action. We nailed it that time. You think you’re good? We got it.