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Design Build / Strategic Alliances in Contracting Relative to Vertical Integration

ByTy Womble, P.E. 
AKTIVUM – ENGINEERING & CONSTRUCTION aktivumgroup.com

 The core foundation of true design build utilizes different specialties as part of the construction and design process. They have a long-term mutually aligned relationship to watch one another’s interests, versus many contracting mechanisms that set the stage for one party to take advantage of another party in the short-term.

Additional efforts are usually expanded in the design process to analyze multiple options which create long-term reduced capital expenditures not only upfront, but throughout the life cycle of construction, and more importantly, the life cycle of the property or infrastructure ownership. This is only achieved when all parties at stake, seek to maximize long-term outcomes together versus short-term outcomes for themselves. 

Other parties within the chronological process of a development, whether in design or construction, will either be able to bring entrepreneurial talent and strategic performance to the project; or are more and less of a commodity. In this case, there is an ample supply of specialists or subcontractors within this market space, with more quantifiable and transparent pricing structures based on unit rates of service.

Other considerations in strategic alliance structuring, relative to vertically integrated design build mechanisms, is the allocation of risk.  Proper assignment of risk is critical in maintaining long-term relationships, not only on the equity side of the project, but on the performance side as well, as many unknown or unforeseen issues can occur in regulatory approval or in construction conditions prior to designs being completed.

Managing Partner Aktivum Group

Managing Partner
Aktivum Group

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FOR CONSTRUCTION PROFESSIONALS

July 29, 2019 

Procore is a leading provider of cloud-based applications for the construction industry.  Procore connects people, applications, and devices through a unified platform to help construction professionals manage risk and build quality projects—safely, on time, and within budget. Procore has a diversified business model with products for Project Management, Construction Financials, Quality & Safety, and Field Productivity. 

Why do organizations partner with Procore?  We are breaking the barriers to siloed data, poor communication & lack of accountability, whether it’s a small renovation or large ground-up project.  We deliver a platform, coupled with an Unlimited User, Support & Document/Data Storage model that is industry built for small to large companies.

We are excited to partner with companies of all sizes, allowing them to share with us the challenges they are facing and deliver the industries best solution, which is being built for the construction industry, by the industry, resulting in a better life for all people in the construction marketplace!

 paul.mudlaff@procore.com

Account Executive at Procore Technologies

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