This paper addresses CAAD from an organizational point of view. We employ recent developments in organizational economics to model the organizational processes in building design. Based on an analysis of (i) the cost of transferring knowledge, and (ii) agency cost in existing design organizations, we propose a framework for redesigning organizational processes and for developing appropriate design information systems. The paper describes work on a larger on-going research project at the Harvard Design School on intra- and interorganizational design information systems.