Design-build model gains traction as projects demand certainty
Design-build procurement is gaining traction across New Zealand construction as developers respond to cost volatility, labour shortages and programme risk. Matthew Charles, director at Plus Studio, says the traditional model of separating design and construction is coming under pressure.
“The traditional model, where architects complete designs, then hand them to builders for pricing, has served New Zealand construction for decades. But when material costs swing wildly, labour shortages persist, and projects stall under variations and delays, that linear handoff looks less like a process and more like a problem,” he says.
Under a design-build approach, the client contracts a single entity responsible for both design and construction, bringing contractors into the process from the outset. Charles says this shifts how risk and delivery are managed.
“Instead of architects and builders working in sequence, they work in partnership from day one. The client contracts with a single entity responsible for both design and construction, collapsing timelines and shifting risk to those best positioned to manage it,” he says.
He says early contractor involvement improves buildability and reduces the likelihood of costly changes later in the programme, particularly as projects increase in scale and complexity.
“Builders and their sub-contractors bring something invaluable to a project: lived experience. Their knowledge offers a grounded, practical perspective that can cut through complexity. Not every complex problem needs a complex solution. Sometimes it needs buildability, focus, and the confidence of someone willing to share a hard-earned opinion,” he says.
The approach is being applied across sectors where cost certainty and programme control are critical, including large-scale residential developments, student accommodation and high-rise construction.
“Large-scale housing and student accommodation need design-build’s cost certainty. When funding is fixed and outcomes matter, you can’t afford surprises,” he says.
Projects such as the Rānui Apartments development, delivered with Higgs Construction, used repeated apartment typologies to control cost and programme over a nine-year period. Charles says similar benefits are being seen in high-rise work, where early contractor input can resolve structural and servicing challenges before construction begins.
“Bringing Icon Construction in early meant structural challenges got solved before they became expensive retrofits,” he says.
Industrial and warehouse developments are also suited to the model, particularly where building types are standardised and delivered at scale.
“Standardised industrial and warehouse developments suit design-build well. When contractors know the building type inside-out, they price accurately and deliver faster,” he says.
Charles says the shift changes how projects are documented and coordinated rather than the end result.
“Documentation drives everything. Detailed, accurate drawings let contractors price with confidence and build without surprises,” he says.
He says current market conditions are accelerating adoption, with developers seeking greater certainty in an unpredictable environment.
“Material costs swing, supply chains break, and the pressure lands on people – their health, their wellbeing, the quiet stress that comes with constant uncertainty. Design-build doesn’t fix everything, but it redistributes risk more sensibly. Engaging builders before designs lock in means you can identify efficiencies early, resolve coordination in the computer rather than on site, and lock pricing before the market shifts again,” he says.
He says the model is likely to become more widely adopted as projects increase in scale and complexity.
“When design thinking and construction expertise work together, better projects emerge. That collaboration shouldn’t be exceptional – it should be standard. The shift is happening.”