DESIGN-BUILD FOR NON-PROFIT HOUSING
Making the model work for you.
The Direct-Build approach, otherwise known as Design-Build, is the delivery model of choice for Build Canada Homes for procurement of its six initial sites across Canada. Requests for Qualifications have been issued to fast-track construction prioritizing modern methods of construction (MMC) to deliver up to 4,000 units on federal lands across Canada.
Once framed as “alternative delivery”, the Design-Build delivery model has been a tried and tested method where design and construction are handled by a single entity under one contract. This allows a streamlined, collaborative approach among design consultants, the construction team, and ideally the operator to participate in the development of the project from concept to completion.
The Design-Build contract involves a very robust risk transfer to the design-builder. The key risks transferred to the design-builder include cost and schedule overruns, constructability issues, design errors and omissions, system coordination and performance guarantees. It also allows operators and end-users to participate in the design process and therefore ensure that design and performance parameters are contractualized in the design process.
The Design-Build approach provides an excellent opportunity for a non-profit organization operator to meaningfully participate in the design of a project. It is common practice to include the operator of an asset at the inception of the Design-Build process to ensure that operational efficiencies and demands are considered and implemented in the project.
Build Canada Homes has put a strong emphasis on the inclusion of MMC in its projects. This should create an opportunity for a housing provider to have an influence on the selection of MMC providers due to importance of operational concerns when finding the best construction solution for a project. Unlike many typical market real estate projects, non-market housing requires a strong focus on the programmatic elements of the homes, the mission of the non-profit organization operator, and the needs of the individuals and families who will live in the homes being built.
Bringing livability and operational efficiency to the fore.
The Design-Build process should allow an analysis of how the vision of the livability and operational efficiencies. As we progress through the stages of procurement and ultimately the design and construction of non-market housing across Canada, it remains critical that operators and design-builders partner early and understand each other so that they are prepared for day-one of the design-build process of their project.
Case Study: Victoria Park Community Homes
60 Caledon Avenjue is an affordable housing development led by Victoria Park Community Homes (VPCH), a non-profit located in Hamilton, Ontario. EllisDon Community Builders (EDCB) is Development Manager, with EllisDon Construction the design-builder responsible for delivering the project on time and on budget. VPCH will manage and operate the property.
- VPCH prepared early, identifying funding programs at the federal, provincial, and municipal levels that it'd need to make the proforma viable for the project. It identified critical specifications, including:
- LEED Silver
- An energy efficiency target 40% better than 2017 National Energy Code for Buildings
- Compliance with CMHC requirements on barrier-free and accessibility (26% of units)
- VPCH included these requirements in performance specifications given upfront to the Design Builder, ensuring costing, materiality, etc. were selected with these targets in mind
- The requirements were included in the Design-Build contract. The Design Builder is accountable to deliver a project that meets the requirements, giving VPCH the confidence to negotiate with funders. They could present evidence that they would achieve project goals (as opposed to having no guarantee under different contractual models).
Prefabricated concrete floor panels craned into place over precast, cold-formed steel wall panels at 60 Caledon for Victoria Park Community Homes
Design-Build + Community Vision
As can be seen in the 60 Caledon Project, the intersection of the Design-Build process and a non-profit organization’s vision for its community can provide for a multitude of positive project outcomes for a community. We look forward to continuing to work with our non-profit organization partners in delivering community assets across Canada with a reinvigorated focus on non-market housing.