Design-Build vs. Design-Bid-Build: Which is Best?

Understanding the differences between the Design-Build vs the Design-Bid-Build project delivery methods is the first step towards deciding which one is best for your development project.

There are many forms of project delivery, the process of how a project is completed from beginning to end, with different methods varying on the involvement of the project's timeline, budget, and owner's involvement. Other priorities can also influence the project delivery method, such as general risks, whether a collaborative team is important, or if looking for the most competitive construction bids. Here you will find a comparison between design-build vs design-bid-build.

Design-Bid-Build

The traditional method is Design-Bid-Build (DBB), which, as the name suggests, begins with the design from an architecture firm, then goes through a bidding phase to look for a contractor, and is later built to completion by the awarded contractor. In essence, the design and construction are split between entities with separate contracts and responsibilities.

OPPORTUNITIES | What to like

• This may result in the lowest bid when the project design is ready for bidding.
• Has the architect as a construction advocate.
• Minimizes the owner's involvement in any conflicts through one point of contact.
• At the same time, conflicts between the architect and builder are reduced as they work collaboratively as a team to resolve any issues.

DISADVANTAGES | What to look for

• Longest time overall.
• Has a linear step-by-step phase, meaning that all the design documents must be finalized before bidding and later building the project.
• Higher risks.
• The developer, or owner, has two contracts and must coordinate both teams (designer and builder), opening itself to mistakes in the transmittal of information, which may then result in change orders or other bigger problems.
• Construction cost is defined at later stages.
• Without a contractor involved in the early stages, the architect may over-design elements that may go over budget and be known only after the bidding process; this may require some re-designing and re-bidding, adding more time to the overall project.
• Susceptible to Change Owner.
• With separate entities, there is less communication and collaboration between the design and building teams, resulting in increased susceptivity of change orders and finger-pointing becoming controversial during construction. Additionally, the design team's documents will be heavily scrutinized for errors & omissions looking to create more Change Orders and increase the construction cost.

Design-Build

The Design-Build (DB), on the other hand, is an alternative project delivery method that has grown in popularity in the last decade. With this project delivery method, there is one entity in charge of the whole project and under a single contract with the developer or owner. The Design-Build entity can be a team of architects and builders for different firms, but the owner only deals with one project manager, one contract, and one unified flow of work from design all the way through completion.

As in the traditional method, Design-Build can be used on many types of projects and can be very successful if executed properly. This approach to implementation is becoming more popular because for both owner, and AEC (Architecture, Engineering, and Construction) professionals. The joint effort saves money and time by transforming the relationship between designers and builders into an alliance that fosters collaboration and teamwork and gives the owner one entity to hold responsible if something goes wrong.

OPPORTUNITIES | What to like

• One point of contact.
• The developer only needs to coordinate and deal with one entity for the whole project for any questions or concerns. As the relationship will be long, we recommend doing a zero-commitment Feasibility Study before hiring the architect or Design-Build entity.
• Reduced risk.
• Minimizes the owner's involvement in any conflicts as it has one point of contact. At the same time, conflicts between the architect and builder are reduced as they work collaboratively as a team to resolve any issues.
• Faster overall delivery.
• By eliminating the bidding process, the project saves a significant amount of time. Additionally, the construction can begin prior to finalizing the design details, this saves as much as 33% in the overall project completion.
• Collaborative and cost-effective.
• By designing with the contractor's input from the early design stages, the project is designed with the most cost-effective materials and methods, achieving the budget and saving the risk of having to re-design the project to meet the budget.

DISADVANTAGES | What to look for

• No advocates for the Owner.
• As the design team works as one entity, the Owner has to make decisions and check the quality of the work by himself. For developers, this usually isn't the case as they usually have someone assigned to the project who does this task, whatever the project delivery.
• Lower bidding transparency.
• By eliminating the bidding process, the project may result in higher prices than if it was competitively bid. However, by having the contractor in the early stages of the design, the Project's budget is usually met.

Comparison

Design-Bid-Build

• Cost: This may result in a lower bid when the design team knows the latest means and methods of construction.
• Time: Linear steps of the project, longer time overall.
• Risk: The Developer has two contracts to manage and must coordinate the design and building teams separately
• Design: May have a better design, as the construction costs aren't usually fully taken into account during the design phase.

Design-Build

• Cost: The builder is involved in the early stages of design and gives feedback on the means and methods of construction, resulting in a cost-effective design
• Time: The design Development and Construction Documents phase may overlap with the Bidding and Construction phases.
• Risk: The developer contracts one entity that is fully responsible for the complete project.
• Design: May have good design, without sacrificing costs and risks as it is part of the design process.

Explanation Video

FAQ about Design-Build vs. Design-Bid-Build

What is the fundamental difference between design-build and design-bid-build as project delivery methods?

Design-build is a project delivery method where a single entity, the design-builder, manages both the design and construction phases under one contract. In contrast, design-bid-build separates the design and construction contracts, with the owner contracting separately with a designer/architect and a general contractor through a competitive bidding process.

Which project delivery method is typically more suitable for complex renovation projects?

Answer: Design-build is often preferred for complex renovation projects due to its integrated approach, which allows for real-time adjustments to design and construction challenges. Design-bid-build may encounter difficulties in adapting to unforeseen complexities without renegotiating contracts.

In terms of risk management, how do design-build and design-bid-build differ?

Design-build transfers more project risk to the design-builder, who assumes responsibility for both design and construction quality. In contrast, design-bid-build separates design and construction responsibilities, potentially leading to disputes over design errors and delays.

How do liability insurance requirements differ between design-build and design-bid-build?

Answer: Design-build contracts often require comprehensive liability insurance coverage that encompasses both design and construction phases. Design-bid-build separates liability insurance requirements between the designer/architect and the general contractor, potentially leading to gaps in coverage.

What role do subcontractors play in design-build projects compared to design-bid-build?

Answer: In design-build projects, subcontractors are typically brought on board earlier in the process, allowing for more collaboration and input during the design phase. Design-bid-build, however, involves subcontractors being selected after the design is complete and the project is awarded to the general contractor.