The Architect develops the design with the Owner's program, site, and budget in mind.  This process is unique because the General Contractor is also involved in the design process the very beginning as well. 

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The Architect can work directly for the General Contractor/Developer (true Design Build) or the Owner (often called CM@Risk).  both project deliveries have their pros and cons.

With the Contractor involved early, they are able to assist in constructability, material research, budget analysis, site analysis, zoning and land ordinance issues - and in some case2, can start preconstruction, site work, and/or demo activities before the design process is complete.  The process helps facilitate "fast track" deliveries and can allow the entire team to do multiple tasks at one time - ultimately saving time and money.

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A contractor will often charge a small fee for these services, called "preconstruction fee" that is often reimbursed or credited back to the budget when the project is approved for construction.  Developers often prefer this method because that can control all phase of the process in-house.

In this process, an Owner or Developer contracts with the Contractor well before a budget is known. The Contractor's final cost are not bid to a competitive market, however subcontractor's are usually competitively bid by the Contractor. 

 

The Contractor and the Owner/Developer will agree upfront to the Contractor's management fee, profit,  General Conditions, and Cost of The Work.  The only data left to price will be the "sticks and bricks" of the project, and often, those costs are very similar between competitive bidders anyway.   

 

 Often, the Contractor will provide a "conceptual budget" for the Owner to use in financing, for sales projections, and budget purposes.

In traditional "Bidding" processes, the Architect develops the Owner/Developer's plans in a vacuum with no input from the General Contractor.  The irony being that the entity with the most responsibility for physically executing the construction documents, is the LAST one to see them, and has the least amount of time to learn them.   They are decidedly NOT part of the team. 

 

In the Design-Build delivery, General Contractor with Design Build experience can add significant value to the design process by taking a leadership role on the team and being amongst the first members of the team to sit at the table.