Advantages

[Cole]

Total project costs are determined early and up front in the design/build process

Simplifies the construction process by establishing a single point of responsibility

The bidding process is virtually eliminated

Costs can be managed more tightly

Firm can diversify and set up separate profit centers

[Mike Finley]

I hear from a lot of guys in the business that design/build is the only thing they want to do because it keeps them out of the bidding business.

How is design build different than spec home building? Is it one in the same with the exception that you have a client who is footing the bill and you are building to the design they want?

[Rich]

I was very close to going with a design/build company. The architect is pretty well established already though - and we decided we didn't want to hurt his reputation in the community. We are just going to contract together as a design/build and probably work out of the same office.
The best part of design/build is that the turn around of the projects is much quicker. On a 2500 sf house which might take 2 months to design and 4 months to build can be shortened to 4 months overall (just an example). Where the time savings comes is I can start putting a foundation in the ground before the whole interior design is complete.
The difference between spec homes and design/build - with a spec home you may have a design that people aren't willing to buy. You are trying to fit your design to a general population - whereas design/build fits the design to an individual. With a spec home you may wait a length of time with your money tied up in the construction loan (bad practice IMO) until someone decides to buy it. With design/build (or other delivery methods) I have money in hand very soon after the start of construction to foot the bill.
Another good side is that the turn around for questions being answered are as simple as turning around and saying hey mr. architect what should we do here... answered. No more wasting time and effort on contacting the architect and waiting several days to get an answer.
The downside to design/build is that the design/build firm is responsible for everything - design and construction. Therefore the risk is a little greater - but the returns are also greater in the same fee in a shorter amount of time.

[Cole]

Rich you nailed it on the head. Great Post

[Mike Finley]

Rich are you familiar with the Hill Top neighborhood in Denver? It is filled with $400,000 1950s ranches sitting next to $1,000,000-$2,000,000 scrape offs. That market just freaken amazes me! I take it that is mostly design/build with a few specs in there?