Does design-build cost more in Virginia than hiring an architect and a builder separately?

Design-build does not have a fixed price advantage or penalty over hiring an architect and a builder separately, and there is no official Virginia figure that settles the question. Both routes pay for the same two things, design and construction. They differ in who prices them, when, and how much you can compare. The honest way to answer for your own project is to put both routes on the same written scope.

Where the money goes in each route

Separate architect and builder. You pay a design fee first, often a percentage of the construction cost or a flat or hourly fee, then collect bids from contractors on the finished drawings. DPOR advises getting at least three written bids or estimates using identical plans and specifications,^[1] and a complete set of drawings is exactly what makes that possible. The drawings are yours to take to any builder.

Design-build. One firm develops the design and the price together and then builds it. You usually pay a design fee up front, credited toward construction or not depending on the contract, and the construction price follows as the design firms up. You often get cost feedback earlier, which can keep a design from growing past your budget. What you give up is the open competition on the construction price, so you need other checks: references, an itemized proposal and a clear contract.

Neither route is automatically cheaper. A weak set of drawings that leads to change orders can cost more than a design-build fee, and a design-build contract signed before the scope is fixed can cost more than a competitive bid.

An architect is not always required

Part of the separate-route cost is optional. In Virginia, no architect or professional engineer licence is required for people who prepare plans, specifications, documents and designs for single- and two-family homes, townhouses and multifamily dwellings, excluding electrical and mechanical systems, not exceeding three stories, provided the documents bear the name and address of the author and his occupation.^[3] Read do I need an architect for a home addition in Virginia before you assume a full architectural commission is required. Design-build firms handle this the same way: whoever draws the plans, the construction services under a design-build contract can only be rendered by a licensed contractor.^[4]

How the construction price is set

This is where design-build quotes differ most, and it affects your total more than the label on the process. Virginia's contractor regulations describe three types:

• A standard total value project calls for a statement of the total cost of the project.^[2]
• A cost-plus contract must identify the type of cost-plus, fee or percentage, and a cap that the total dollar amount cannot exceed.^[2]
• A time-and-materials contract must state a fixed price for labour that includes wages, overhead, general and administrative costs, and cost of materials.^[2]

A fixed price gives you certainty but only against a defined scope. A cost-plus contract with a firm cap protects you from an open-ended total, but ask what the fee or percentage is and what counts as a cost. The contract must include the amounts and schedule for progress payments, including a specific statement on the amount of the down payment.^[2] Any modification that changes the cost, materials, work to be performed or estimated completion date must be in writing and signed by all parties,^[2] so ask how changes are priced before you sign.

Comparing proposals fairly

Ask every firm to price the same written scope, and to list the allowances for finishes and fixtures, the design fee and whether it is credited, permit and engineering costs, and what is excluded. DPOR cautions: "Do not automatically accept the lowest."^[1] It adds that you should be sure you understand the reasons for any variations in price.^[1] And a quote that looks cheap may be incomplete. Beware of any bid substantially lower than the others.^[1] It probably indicates that the contractor has made a mistake or is not including all the work quoted by his or her competitors.^[1]

When to call a licensed pro

Whichever route you choose, construction in Virginia must be done by a contractor licensed under the Board for Contractors, and architectural or engineering design by a licensed professional where required. Check the licence and class through DPOR's lookup before paying a deposit: see how to check if a contractor is licensed in Virginia and how much deposit a contractor can ask for. For typical project prices, see what a home addition costs in Virginia and what a whole-house renovation costs.

Browse remodeling services, read more remodeling answers, or describe your project once to get written proposals from licensed local businesses to compare.