When you start planning a home remodel, what’s one of the first things you need to know? Often, the most important decision you’ll make is which company you entrust to complete your project.
Whether you’re remodeling a kitchen, constructing a new addition, or renovating your entire home, the success of your project hinges on selecting the right company with the right process. Just like you wouldn’t hire a fast-food company to cater a fine dining event, you need to think carefully about what type of contractor best fits your vision for your remodel.
In this article, we’ll guide you through the two main approaches to tackling complex home remodels—working with a design-build firm or hiring a general contractor—so you can decide which option best suits your needs and project goals.
What’s the Difference Between Design-Build and General Contracting?
To understand whether a design-build firm or a general contractor is right for your next project, you first need to understand the difference between the two.
Both design-build firms and general contractors can lead you through a remodeling project. However, their approach and organizational structure differ in ways that can significantly impact your remodeling experience and the final outcome.
Design-Build Firm
A design-build firm is a full-service remodeler, meaning they manage the entire design and remodeling process under one roof.
Instead of hiring separate designers, project managers, and contractors, you work with each of these professionals employed by a single company, from the initial concept and design work through construction and final finishes.
This model provides continuity throughout your project, as the same team is responsible for the project from start to finish. Because everyone is on the same team, this approach often leads to minimal delays and miscommunications.
Unique Characteristics of a Design-Build Firm:
- Unified Team Structure: In a design-build firm, the designers, project managers, and construction crew all work within the same company.
- Homeowner Leads the Team with Help from Expert Guides: With a design-build firm, the homeowner’s job is to make decisions for their project based on the guidance and recommendations from the team.
- Fixed-Price Contract: Most design-build firms operate on a fixed-price contract, so you know what you’ll pay from the start.
- Cost Alignment from the Outset: Budgeting directly from the designs allows your team to align design choices with budget goals from the beginning, resulting in realistic cost management as the project progresses.
General Contractor
A general contractor typically oversees only the construction phase of a remodel, meaning that you, as the homeowner, must first work with an independent designer or architect to create a set of plans.
Once those plans are finalized, then you can bring in a general contractor to execute the construction according to the designs. While general contractors typically oversee and organize the efforts to build your project, the amount of work they do on your home varies from contractor to contractor. Some may hire specialized subcontractors to complete a majority of the work. Others may do much of it themselves.
Unique Characteristics of a General Contractor:
- Builder, Not Designer: The general contractor’s primary responsibility is to oversee the physical construction of the project, following an independently created design plan.
- Homeowner Acts as Coordinator: Homeowners typically coordinate communication between the architect or designer and the general contractor.
- Cost-Plus Contracts: While some general contractors operate on a fixed price, others use cost-plus contracts, where the homeowner agrees to pay for time and materials plus a predetermined percentage for profit.
- Project Bidding and Cost Determination Post-Design: General contractors typically bid on projects after the design is complete, basing their bids on finalized plans without prior input on design choices or budget feasibility.
Why Work with a Design-Build Firm?
Most people think they need to hire a general contractor for home improvements. However, hiring a design-build firm may be a better option for many homeowners depending on the circumstances and goals of the project.
When it comes to managing the complexities of a remodel, a design-build firm offers a streamlined approach that can simplify the remodeling experience for homeowners and lead to greater budget control.
By handling both the design and construction under one company, design-build firms provide distinct advantages that can positively impact everything from budget control to project timelines.
1. You Want a Seamless Experience Without Playing Project Manager
With a design-build firm, you work with a single, integrated team. Designers, project managers, and builders communicate and collaborate regularly, reducing the need for the homeowner to act as a go-between. This means you spend less time playing project manager and more time making decisions that will actually affect your home.
2. You Want to Stay in Control of Your Budget From the Start
One of the standout benefits of the design-build model is the ability to have budget guardrails throughout the design phase.
Unlike traditional models where budget concerns can only be addressed after the designs are complete, a design-build firm considers the budget from the outset. This approach helps keep the project financially feasible and significantly reduces the risk of unexpected costs or redesigns.
Consider the story of Phil, a Portland homeowner, who initially hired an independent architect to design an addition to his home, spending $25,000 on plans.
However, once the design was complete, he discovered that general contractors were bidding on the project at a cost of around $650,000—far beyond his budget.
After a year of delays and mounting frustration, he came to Lamont Bros. We redesigned the project with his budget in mind, bringing the cost down to $400,000 and saving him $250,000 from the original plan.
3. You Want to Stay on Schedule and Avoid Unnecessary Delays or Redesigns
Since design and construction teams work in parallel within a design-build firm, the transition from design to construction is often faster and more efficient.
For a project to successfully move from design into construction, both the scope of work and budget must align with the homeowner’s vision. With the general contractor model, it’s very common to have to redesign a project that costs far more than the homeowner wanted to spend, causing delays of weeks or even months.
With a design-build firm, design with construction feasibility and budget in mind, allowing the project to progress without delays for redesigns or extensive re-evaluations.
4. You Want to Know if Your Vision is Realistic Before Investing Too Much
Design-build firms can assess the feasibility of ideas early in the process, identifying potential structural or budget constraints before designs are finalized. By addressing these considerations upfront, design-build firms help homeowners avoid investing in unworkable or prohibitively expensive designs.
For instance, we once worked with a Portland homeowner who had hired an architect to convert a garage into an ADU in the Irvington Historic District. The homeowner invested $15,000 in design work with the architect and engineer.
While the architect and engineer spent considerable time developing a plan to save existing walls and reduce costs, they overlooked a thorough construction feasibility assessment. Instead, the architect asked a few builders to give the design a quick, informal review at no cost. Unfortunately, implementing the proposed solution would have driven the project’s cost far beyond the homeowner’s budget.
Ultimately, the project had to be abandoned, leaving the homeowner with lost time and expenses. Had a design-build firm managed the project, they would have identified these feasibility challenges upfront, allowing the homeowner to avoid costly setbacks and focus on practical, achievable solutions.
Why Work With a General Contractor?
While a design-build firm provides an integrated approach, hiring a general contractor allows homeowners more control over individual elements of the remodel itself.
General contractors can be an ideal choice for homeowners who are willing to assume more risk in order to be more involved in managing the project and coordinating among its moving parts. Here are some key benefits of the general contractor model:
1. You Want the Flexibility to Select Each Professional Yourself
With a general contractor, you have the freedom to independently select your designer, architect, and contractor, allowing you to handpick your entire team.
This can be advantageous if you have specific experts you want to work with. For instance, if you want to hire a specific out-of-state designer who can work with a local team to construct your project.
2. You Want to Compare Bids to Find the Lowest Price
After the design phase is complete, homeowners will typically submit the designs for general contractors to bid on the project.
This allows some homeowners to compare multiple bids in order to leverage market competition and potentially find a lower price. If this is you, check out this video that walks you through how to compare construction bids. It is common for homeowners to want to take this approach. It’s extremely rare to find someone who understands how to do this correctly.
Using the design-build method can often reduce costs through efficiency gains. Research by the Construction Industry Institute and Penn State University found that, in commercial construction (where design-build is often well-executed), projects are delivered 33.5% faster and achieve a 6.1% cost savings compared to traditional design-bid-build methods.
However, if you choose to go this route, have already invested in designs within your budget, and follow the process outlined in the video linked above, you might discover ways to cut costs further and find a competitively priced general contractor.
3. You Prefer a Hands-On Role in Managing Your Remodel
The general contractor model can be well-suited for homeowners who prefer to play an active role in managing the administrative side of their remodel.
Since the homeowner coordinates between separate designers and contractors, they are right in the middle of coordinating schedules, project feasibility, and managing the transition from design to construction. This approach appeals to those who enjoy a more hands-on role in project oversight.
Want to Learn More About Your Contractor Options?
Choosing between a design-build firm and a general contractor comes down to what’s most important for your project. If you value budget control, a streamlined process, and minimal headaches, a design-build firm is likely the best option. On the other hand, if you prefer flexibility and are comfortable managing the complexities of working with multiple teams, a general contractor might be more suitable.
To learn more about how to select the right contractor for your next home improvement project, download our free 3 Step Guide to Choosing a Contractor. In it, you’ll find advice from industry experts on how to find and hire the best contractor for your needs.
Ultimately, the decision depends on your project goals and how much direct involvement you want to have in managing the process. At Lamont Bros., we’re here to help you navigate those decisions. If you think the design-build model is right for you, schedule a free video consultation with one of our design consultants to start transforming your home today.