Which is Better: Design-Build or Bid-Build?

Here’s what you need to know when making your delivery method decision:

Bid-Build (the traditional method)

This method, also known as the design-bid-build method, is one of the most common approaches where the design phase and the construction phase are executed by two different firms.

• Requires management complexity: Both the design and the construction require their own separate contracts.
• The process is sequential. The design is completed first, then the owner must solicit bids for the construction phase.
• Takes longer to complete. Because the phases are sequential, the overall project timeline can be longer.
• Communication is fragmented. Having multiple firms talking with the owner can lead to communication gaps.

Design-Build (the integrated method)

This is a more streamlined approach where the owner contracts with a single firm that handles both the design and the construction of the project.

• Simple project management. One team handles and executes both phases of the project.
• Streamlined communication. Having everyone on the same team can reduce potential misunderstandings and leads to more effective problem-solving.
• Single point of responsibility. One team handles it all with full accountability.
• Innovation and collaboration. When everyone works as a team, it can improve both creativity and efficiency.

Benefits of a Design-Build Project.

Here are the key advantages of a design-build approach.

1. Fewer contracts to manage. With a design-build project, the owner only has to manage one provider.
2. Single point of responsibility. With only one contract, the owner never has to worry about accountability between multiple parties.
3. Faster construction timeline. You don’t have to wait for the entire design to be finished before starting construction.
4. Optimal collaboration. When the design and construction team works as a single unit, communications are streamlined from the beginning.
5. Reduced risk for the owner. All of the above mean less risk because there is a single team responsible for the cost and scope, as well as all communications.
6. Potential for reduced costs. A University of Texas analysis showed that some design-build projects were faster and less expensive than comparable design-bid-build projects.

Key Takeaway: If you’re looking for efficiency, faster timeframes, reduced risk, and simplicity, then the design-build model is a better choice for you.