Best Practices for Structuring Design-Build by Administration

Discover how Project Success by Administration delivers certainty, transparency, and control in construction under a Guaranteed Maximum Cost model.

This article is Part 2 of a 3‑Part Series on Design-Build by Administration. If you haven’t read Part 1 yet, see The “Build” in Design-Build: Clarifying SPP 207. Part 3 will explore Project Success by Administration: Delivering Certainty From Start to Finish.

Best Practices for Structuring Design-Build by Administration

Key steps for structuring Build by Administration to ensure compliance, transparency, and professional integrity in project delivery.

In our previous article, we clarified how the “Build” portion of Design-Build under SPP 207 allows architects to manage project implementation in full compliance with RA 9266—without crossing into prohibited contracting. This article focuses on the practical side: how to structure Design-Build by Administration in a way that ensures compliance, efficiency, and professional integrity.

1. Establish a Transparent Cost Framework

Design-Build by Administration works best when the owner retains control over all construction costs. The architect’s role is as administrator, ensuring that:

All costs for labor, materials, equipment, permits, and incidentals are paid directly by the owner.
Revolving funds, if advanced, are accounted for and audited periodically.
No markups are hidden within trade contracts or procurement transactions.

This protects both the owner and the architect, maintaining the arrangement as professional practice rather than commercial contracting.

2. Organize Resources and Roles Clearly

The architect may assemble and coordinate the construction team, which can include:

Construction superintendent
Purchasing agent
Timekeeper and property clerk
Labor crews and subcontractors for specific trades

All appointments are subject to owner approval, with salaries and fees paid directly by the owner. This ensures clarity of accountability and avoids any perception of contracting “for a price.”

3. Document Every Transaction

Good recordkeeping is critical. SPP 207 expects that the architect will:

Maintain books of accounts for all construction transactions.
Document procurement orders, delivery receipts, and payment vouchers.
Provide periodic financial and progress reports to the owner.

These records serve both as transparency tools and as protection in case of dispute or audit.

4. Keep the Construction Phase Within Professional Boundaries

While the architect manages construction, the arrangement must remain consistent with the SPP definition of professional services:

The architect is an administrator, not a contractor.
There is no assumption of price risk beyond agreed administrative arrangements (except in GMPCC mode).
All conflicts of interest are disclosed and managed according to the Architect’s Credo.

This reinforces compliance with RA 9266 and RA 4566 while protecting the integrity of the practice.

5. Align Processes with Ethical and Legal Standards

The success of Design-Build by Administration depends on the architect’s strict adherence to:

SPP Document 200 – Code of Ethical Conduct
SPP Document 202 – Regular Design Services
SPP Document 207 – Design-Build Services

These documents form the basis for maintaining professional independence, owner protection, and public trust.

Conclusion

Design-Build by Administration is a powerful project delivery method—when structured properly. By keeping costs transparent, roles clear, records thorough, and professional boundaries intact, architects can deliver projects faster, more efficiently, and in full compliance with both the law and the standards of the profession.