When planning new infrastructure, from industrial warehouses and cotton gins to feedlot covers and packhouses, one of the earliest and most consequential decisions is how the project will be delivered. The procurement route determines when cost is confirmed, who carries the risk and how much project management falls to the client. It also determines whether the finished infrastructure supports the business or constrains it.
This article compares traditional tender and design and construct, as well as the role engagement timing plays in project outcomes.
What is the difference between traditional tender and design and construct?
The traditional tender process separates design from construction. The client engages a designer or engineer to develop detailed documentation, then issues a tender for builders to price the completed design. Each consultant is engaged and managed separately, followed by a head contractor.
Design and construct integrates both disciplines under a single contract. The client defines the project scope and functional requirements, and the delivery team takes responsibility for design, engineering, approvals and construction as one coordinated process.
Why is the traditional tender process flawed?
In a traditional tender, the price is only confirmed once design is complete and builders have submitted their bids. This is typically six to twelve months into the project, after six figures in soft costs have already been spent. Until then, the final build cost is unknown, and all estimates are indicative.
That indicative estimate still becomes the budget the client commits to, even though no contractor or specialist trade has priced it. Tenders are the first market price. If they return above the estimate, the client typically either funds a redesign and re-tender, or removes scope through value management until the price fits. In either case, the original business case rarely survives.
The design carries a similar risk. Commercial viability and operational requirements must be factored into design decisions, not treated as afterthoughts. A design that looks viable on paper may not suit the client's workflow, equipment, maintenance access, future expansion plans or regulatory obligations. Getting this right requires a deep understanding of the operation, from the product and how it moves through the site to the automation and technology it relies on and the commercial goals the facility must serve. That understanding comes from time on the ground with owners and operators. When these considerations are addressed late, they become expensive problems.
Multiple clients have come to Entegra a year into the tender process and close to seven figures in costs, having found the project was no longer viable or affordable and the time and capital invested were lost.
What are the advantages of design and construct over traditional tender?
Design and construct allows cost certainty to be established earlier, because the delivery team prices the project based on scope rather than finished drawings. The timing varies, however. Some contractors confirm a price before detailed design, while others wait until much of the design is complete.
When the contractor is engaged early, D&C also brings construction input into the design phase. Pre-construction, engineering and procurement teams evaluate buildability, material availability, site logistics and sequencing before drawings are finalised. Issues such as access constraints, material lead times and seasonal limitations are resolved before design is locked in. Permits and approvals are also addressed in early planning rather than late documentation. This matters most on regional and remote projects, which require early engagement with approval authorities, utility providers and landholders.
In practice, most D&C contractors are appointed after the business case is set and the design direction is fixed. They can price and deliver that design, but they are engaged too late to challenge it, so missed operational improvements carry through to construction.
How is the Entegra Methodology different?
The decisions made before a design is drawn determine what a facility costs, how long it takes to deliver and how well it performs over its life. For that reason, Entegra starts with the business, not the building. At vision stage, Entegra works directly with the client to define where the business is now, where it needs to be in 10 to 15 years, and the investment path to get there. Every assumption is challenged and standard approaches are not accepted by default, so the solution is shaped by the best outcome, not precedent. Build, lease and site options are stress-tested, ROI is modelled, and a high-level budget is set before design begins. This gives the client the confidence to commit, or the clarity to change course, before capital is at risk.
Design is then developed around the operation. Layout, structural and services decisions draw on four decades on the ground, walking through facilities and working alongside owners and operators across regional and remote Australia. That experience informs everything from product and vehicle flow to where equipment and future expansion sit. Each decision is measured against productivity across the whole operation, not just the structure that houses it. Geotechnical, permit and buildability risks are resolved before design is locked, so issues are addressed on paper, not on site.
This early work also delivers commercial certainty. Under the Entegra Methodology, a guaranteed price ceiling is confirmed within ±3% before detailed design begins, and construction risk transfers to Entegra at contract. Every discipline sits under one roof, so accountability never changes hands. The client approves each stage before the next begins, and the facility is fully operational in around 25% less time than under a traditional tender, so the business realises its return sooner.
When should a client engage Entegra?
Early engagement delivers the greatest value. Before a design exists and while capital is uncommitted, layout, site and investment decisions remain open, and these have the greatest effect on the return a facility delivers. For this reason, Entegra does not take part in construct-only tenders. Once a design is out for construction pricing, the decisions that determine the facility's performance and ROI are already locked in.
The Earlier You Engage Us, The More Value We Can Add
The most important decisions on any project are made before a design exists. That's where Entegra adds the most value to your business.