In theory, bidding seems like an ideal approach to ensuring fair pricing. What could be more revealing than sharing plans with various builders and asking them to determine the cost of construction? The truth, however, is that bidding is far less straightforward than you might think.

Builders tell us that bidding is less common now than it was 20 years ago. In its place, pre-construction is becoming the new standard. Pre-construction offers a collaborative and effective process for aligning design with budget while also building a trusted team. Find out what this process entails, the benefits it provides, and how it supports quality.

Pre-construction benefits the entire project. It improves the quality of the home that gets built while also strengthening the team working to build that home. Here’s how:

1. Design aligns with budget

"Our role is to play devil’s advocate to both the architect and homeowner,” said Michael Conneely, Owner of Chicago-based Greenside Design Build. “We’re there to make sure the target budget is always the target,” he said. This is how you avoid designing a project you can’t afford. The builder brings to the conversation knowledge about the true cost of construction in your market. As the pro who’ll hire the labor and buy the materials, they’re best positioned to price a project.

2. Constructability is improved

The builder will also bring a boots-on-the-ground perspective on how design translates into reality.  They can anticipate challenges and opportunities that might not be obvious on paper. “We’re making sure you’re not leaving opportunities by the wayside, asking the good questions, and really understanding what it’s going to take to execute the project before starting,” said Schiffer. Their perspective can positively impact design. In fact, most architects agree the best projects involve the builder early.

3. Trust is built

Pre-construction allows for an extended getting-to-know-you period with the builder. “Pre-construction builds a high level of trust,” Conneely said. Generally, pre-construction contracts are separate agreements from building contracts, so you're not committed during this phase. You get to wait until the detailed plans (design, schedule, and budget) are set before you decide if you want to move forward with the builder.