Workplace advice / Melbourne

Design and Construct vs Traditional Tender

There are two common ways to deliver an office fitout. In a traditional tender, you hire a designer to fully document the project, then builders tender to build it. In design and construct, one company designs and builds. Both work.…

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There are two common ways to deliver an office fitout. In a traditional tender, you hire a designer to fully document the project, then builders tender to build it. In design and construct, one company designs and builds. Both work. This guide explains the differences in cost, time, risk and control, so you can choose the right one for your project.

How a traditional tender works

  1. You appoint an architect or interior designer
  2. They design the office and produce full construction drawings and specifications
  3. Builders are invited to tender a price for the drawings
  4. You choose a builder, usually on price, and sign a building contract
  5. The designer often stays on to oversee the build

How design and construct works

  1. You appoint one company to design and build
  2. They work up the layout and design with you, pricing as they go
  3. You agree a fixed price for the agreed scope
  4. The same company builds it and manages the project to handover

Side by side

Traditional tenderDesign and construct
Price certaintyKnown after tenders, once the design is finishedDeveloped with the design, fixed once the scope is agreed
TimeLonger: design, documentation and tender happen one after anotherShorter: design, pricing and approvals overlap
Design controlHigh: your designer works only for youShared: you sign off the design, the builder delivers it
ResponsibilitySplit between designer and builderOne company is responsible for design and build
ChangesVariations priced by the builder after the contractEasier to adjust while the design is being priced
Best forLarge or complex projects with an in-house project teamMost small and mid-sized office fitouts and refurbishments

Which costs less?

A tender creates price competition on the build, but adds design fees, documentation and the risk of the design coming in over budget. Design and construct removes that gap because the design is priced as it is drawn. For many small and mid-sized offices, design and construct ends up at a similar total cost and is quicker.

When a tender makes sense

A traditional tender suits large projects, organisations with procurement rules that require one, and clients who already have an architect they want to work with. We also build to other designers’ drawings.

Our approach

Our office fitouts are design and construct: the same team plans, prices and builds, and the price is fixed in writing once the scope is agreed. See our guide to turnkey fitouts and fixed price fitouts for more.

Deciding how to deliver your fitout? Tell us about your office or call 1300 903 935. We answer enquiries within the hour during business hours.

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