Design Build Vs Design Bid Build: Benefits and Challenges

Design Build Vs Design Bid Build Unpacking Pros and Cons Blog feature image

Design build and design bid build are two of the most common delivery methods. They have a major impact on the interaction among project stakeholders throughout the construction process. Although these two methods may sound familiar, they differ when prescribing the roles of the owner, contractor, and designer in a construction project.

Choosing the right method for a construction project is crucial as it can impact the contractor’s profit margin, construction timeline, and overall quality of the finished project. Weighing expertise, project size, risk tolerance, etc. is vital to discover the finest delivery method.

In this article, we will find the differences between design build and design bid build, their pros and cons, and more to empower project owners to choose the best model.

Design Build Process

Owners opting for the design build sign a contract with a construction firm. This company manages all the operations from architecture, and engineering to building construction.

The below-mentioned two factors of this method differ from traditional design bid build contracts.

⦁ Promotes collaboration among stakeholders.

⦁ Fast-tracks a project schedule to reduce the time of project completion.

Design build enables the construction teams to begin the work even before the finalization of all designs by melding the construction and design phases. This way, the designer stays involved throughout the project and makes changes if a requirement arises.

An owner can scope suitable sites and create drafts of the design and budget. The owners then send a Request for Proposal (RFP) to seek proposals from design build teams. This process reaches the next level when a firm wins the bid and begins designing. Moreover, it also facilitates the development of a clear scope, design, schedule, and final contract cost.

Planning and initial development of the structure starts once any planning stage is released for construction. For example, team members can prepare the site by making a drainage system until designing is complete.

The design build team takes over the project at this stage and looks after the final project’s budget, quality, and schedule. They also consider significant risks in the process, and owners monitor the operations and sign off on changes made to the original plan.

Upon the construction completion, teams sit with the owners to review the project and hand it over to them.

Advantages of Design Build

Compact Schedules

This process can significantly shorten the construction process. Improved collaboration among build and design teams ensures that the contract team can begin working on the earlier phases without waiting for design completion. Thus, it can compress the schedule, especially for large projects to deliver a final structure.

Project Quality

Designers and contractors stay on the same page leveraging this delivery method throughout the project. The combined expertise of all the skilled individuals enhances the various procedures and leads to a successful outcome. Also, an owner opts for the services of a contractor based on previous projects, which increases the chances of high-quality work.

Risk Transfer

The design build method safeguards the owners from several risks and the contractor bears them. In this process, a contractor is contractually obligated to create a design aligning with the owner’s requirements.

The potential conflicts between the owners, contractors, and architects are eliminated. For example, a change in the approved design can increase costs and an owner may lose money. Hence, risk is distributed in this process.

Cost Savings

This method boosts collaboration among the stakeholders on a construction project. Experience of owners, designers, and contractors helps in project design and construction optimization. It contributes to identifying and avoiding mistakes, leading to less rework and keeping a check on costs.

Furthermore, the budget stays more consistent by incorporating this method. Teams can voice concerns and share ideas in the conceptual phase.

Challenges with Design Build

Conflicts Related to Scheduling

As discussed above, this method is advantageous for the owner and the builder, however, the team may have to climb mountains to finish a project within a tight deadline. The builders are expected to manage construction while focusing on further design.

Also, the risk level for the builder is impacted by a compact schedule due to the many unknown factors present at the beginning of construction.

Communication Gaps

Lack of communication among the teams can cause problems for a contractor who has to work on an unbuildable design and has to produce a high-quality product. Seamless communication between a designer and contractor is pivotal to the project’s success in the design build model.

Risk of Reduced Innovation

A contractor is at the helm of a project in this model. Hence, they may emphasize cost efficiency and speed up construction overlooking innovative or creative solutions. This way, they will prioritize practicality and fulfilling the basic requirements.

Design Bid Build Process

It is a traditional model that offers a command to the owner on project delivery. An owner uses the design bid build delivery method to sign a contract with architecture and engineering teams for project design. Additionally, the owner signs a separate contract with a general contractor to complete the project.

This method allows project sponsors, engineers, and architects to work on the design even before a contractor bids for the project. The owner seeks bids from contractors once the designs are fully developed. A construction firm wins the project and they sign an agreement with the owner to start the construction process.

A general contractor controls the building process and makes changes to parts of a plan that require alteration or may not work. The contractor intimates to the owner about needed changes and additional costs that will occur. Once the construction is complete, the owner and contractor review the final product.

Advantages of Design Bid Build

Role Separation

Project teams signing separate contracts have the opportunity to focus on their realm of expertise. Contractors do not interfere with the designers’ tasks and they can also work free from the worries of overseeing designs. All the teams share various responsibilities and are accountable according to their particular roles.

A Competitive Bidding Process

Numerous designers and contractors can bid for projects in this model. This competition among the bidders can bring down the prices and owners can also select the one with better experience and skills.

More Owner Control

The owners can retain more control of the project in the design bid build delivery model. This process offers the luxury of choosing a construction and design team separately instead of settling for a prepackaged team. This way, all the stakeholders know their roles and enhanced transparency benefits the project sponsor.

Cost Certainty

As mentioned above, designs are finalized before a contractor onboards for a project. It facilitates owners to receive bids with more accuracy and also in cost projections.

Challenges with Design Bid Build

Delay in Defining Budget

It is difficult to determine construction costs until the design stage finishes. If bids exceed the budget, a project sponsor must pay for rebidding, redesigns, and value engineering, which can cause major delays.

No Product Logistics Insights

Architects are not part of the implementation and execution phase, so they are unaware of product availability, coordinating logistics, and fluctuating market costs. This can lead them to design a solution without considering the current price of materials. Redesigning and expedited shipping can incur additional costs and delays.

More Change Orders

Another limitation of design bid build is that contractors only bid on the items explicitly stated in the documents. Thus, any mistake or required variation can cause issues. Questions are raised over accountability if the expectations are not fulfilled. It causes delayed schedules and costly change orders.

Conflict Among Stakeholders

Different project teams have various ways of working. It can cause issues in communication and collaboration. The project may have to bear the brunt of it due to delays in schedules and extra costs.

Also, since contractors do not influence designs, they may have to submit a change order in case a design seems inefficient or impossible to work on.

Design Build Vs Design Bid Build: In a Nutshell

	Design Build	Design Bid Build
Faster Timeline	Yes	No
Budget Friendly	Yes	No
Less Risks Involved	Yes	No
Lower Prices	No	Yes
Deliverables Quality	Yes	No
More Creativity	No	Yes
High Owner Involvement	No	Yes

How to Choose the Right Model for Your Project?

Opt for design build if…

A project is complex and collaboration is crucial for its success.
Finishing the project within a specific deadline is your motto.
Quality and cost of deliverables are your priority.
Mitigating various risks is on your agenda.

Choose design bid build if…

Opt for this method if a project is simple and will not require changes in design. Also, it does not require subcontractor and collaboration expertise.
You want to leverage competitive bidding to control costs.
Managing different stakeholders is not an issue for you.
A lengthy project timeline does not bother you.

Final Thoughts

Design build and design bid build models offer unique advantages and drawbacks. Former aids in gaining more control over every phase of the project and competitive bidding. Later can be harnessed to finish the projects faster and simplify management.

Assess all the factors, budget, project requirements, and timelines to choose the ideal project delivery method. You can also consult with a seasoned professional to navigate the complexities of these models and opt for the right one.

FAQs

Q1. What is RFP in design build?

Ans: Requirement for outside assistance may arise in a construction project. In such cases, project stakeholders may use a Request for Proposal (RFP) to select a contractor to plan and perform this task.