It does not hurt to have a situation where the architect and contractor already have an existing working relationship. In fact, such an association could benefit a project by ensuring the smooth integration between the design and implementation. In a residential project, there is sometimes a triangle of tension between the architect, the contractor and the homeowner in terms of finger pointing and assigning blame. There is greater coordination of efforts, and generally less stress, with a design/build firm where the architects and contractors are accustomed to working together and are knowledgeable about construction costs and can fit design plans and specifications to your budget.
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