Design Build: What It Means in the Construction Industry

The construction industry is witnessing a resurgence of the concept of design build. Today it is one of the fastest-growing and most widely adopted approaches for delivering construction projects in the United States.

Many experts believe that nearly half of construction spending will be channeled through the design-build model by 2026. But, what is this method? And, how does it help project owners in achieving their construction objectives? Let’s answer these questions in this blog.

What is design build?

This construction and project delivery method is where a single team, known as the design-build team, is responsible for both the design and construction phases of a project. In traditional construction processes, the owner first hires an architect or designer to create the project’s plans, and then a separate contractor is brought in to execute those plans. However, in the design-build approach, the owner contracts with a single entity that manages both aspects, fostering collaboration between design and construction teams.

In this alternative method of construction, both architect and contractor belong to a single design-build firm, which the owner contracts to complete the project.

With time, this method is becoming more and more common. In New York, the government recognized new state entities authorized to use this method. The Washington state legislature also recommends design-build for upcoming construction projects. In fact, more than 40 U.S. states have now permitted authorization to utilize this system over the traditional design-bid-build standard for public projects.

What is the Traditional Design-Bid-Build Method?

In the design-bid-build construction model, the owner and design team collaborate to establish the project’s scope, program, and design before soliciting bids. Subsequently, the general contractor, along with subcontractors and material suppliers, constructs the project according to the specified design.

When and if adjustments are necessary, each subcontractor or team must independently determine the most suitable course of action, considering factors such as project timelines, budgets, materials, and other processes.

The primary issue lies in the inherent incentive for each niche to operate independently, leading to a lack of collaboration. Consequently, electricians may be unaware of the activities of plumbers or vice versa. This fragmented approach can lead to miscommunication, delays, and cost overruns.

What is a Design and Build Contract?

A design and build contract is a contractual agreement where a single entity takes full responsibility for both the design and construction of a project. This eliminates the traditional separation of design and construction responsibilities, allowing for seamless coordination.

The design and build contract simplifies project management by providing the owner with a single point of responsibility. This approach enhances efficiency, minimizes disputes, and ensures faster project delivery. It is particularly beneficial for projects costing substantial amounts, where efficiency and collaboration are critical.Many project owners opt for a design and build contract due to its ability to provide cost certainty and a streamlined construction timeline. Design builders work closely with the owner from the start, allowing for continuous input and adjustments as necessary.

What is the traditional design bid build method?

When and if adjustments are necessary, each subcontractor or team must independently determine the most suitable course of action, taking into account factors such as project timelines, budgets, materials, and other processes.

What are the steps in the design-build process?

What makes the design-build project delivery model special is its focus on teamwork, which affects everything from project bids to the final result’s quality.

Here are the steps in the process.

Selecting the team: The owner creates a draft proposal and selects design build teams based on value rather than just the lowest price.
Choosing the site: In the early stages, the project owner looks for suitable locations with the design-build team’s guidance.
Project idea and feasibility: The owner envisions the project’s scope, budget, and schedule, collaborating with the team to leverage their design capabilities.
Preliminary design and cost estimation: The team uses advanced tools for early visual project representation.
Design phase: They develop conceptual designs, performance requirements, and mutual goals.
Finalizing the design build contract: With a solid scope, schedule, and design, the team agrees on the final contract cost.
Construction: The team manages subcontracting, daily tasks, and communication, providing the owner with a single point of contact.
Project closeout and review: The contractor reviews the project with the owner. Because all documentation is with one team, the closeout process is quicker and simpler than traditional methods of construction.

How is the method different from the traditional method?

Unlike in the case of the traditional construction method, one design-build team handles both the design and construction under a single contract with the project owner. This means everything – right from the initial idea to the finished project – is streamlined through one unified process.

The owner only deals with one contract and one responsible party. The designer and builder collaborate from the start, working together like a team to offer project suggestions that fit the owner’s schedule and budget. Any changes are discussed and solved by the whole team. This promotes teamwork, innovation, and problem-solving without finger-pointing.

What makes design-build stand out is that the teamwork culture helps avoid misunderstandings and costly mistakes. It encourages everyone to share their thoughts and contribute to the project’s success.

What are the pros and cons of a design-build method?

Examining the challenges and benefits of design-build project delivery methods helps stakeholders make informed choices that align with project goals, timelines, and budget constraints. This facilitates a balanced approach, enabling the effective utilization of the construction model while minimizing potential risks.

Advantages of Design Build	Disadvantages of Design Build
It integrates the design and construction phases, streamlining the project timeline	Sometimes, the owner may have less direct input in the design phase compared to traditional methods
With one contract and one team, there’s a single point of responsibility. It reduces potential conflicts, construction delays, and finger-pointing	Quality may vary based on the expertise and experience of the selected design-build team
Early collaboration between designers and builders fosters better communication, problem-solving, and innovation	The single-source approach may limit the ability to compare contractor quotes
It often results in faster project completion due to concurrent design and construction activities	Success relies heavily on the collaboration and dynamics within the design-build team
The collaborative nature can lead to cost savings as the team works together to find efficient solutions	For extremely large or complex projects, managing coordination between the design and construction aspects can be challenging
The model allows for quicker adjustments to changes, ensuring flexibility throughout the project	There could be potential conflicts of interest as the same entity handles both design and construction

How to work on the design build process as a contractor?

Start by hiring the right team. The process should prioritize collaboration. Use a competitive procurement process. Have a clear selection process and evaluation process that values both price and technical expertise.

Once the team is in place, set up project guidelines through a fair, balanced, and clear contract that encourages collaboration throughout design and construction. It’s usually the responsibility of contractors to draft this contract.

Ensure your team is trained in the process to understand its differences from other delivery systems. If needed, hire experts with the right skills. Finally, equip your team with the right tools to enhance coordination and communication throughout the project.

Last thoughts

Experts at the Design-Build Institute of America (DBIA) believe that this project delivery method will soon become an industry standard. It promotes faster project completion, smoother processes, and better budget estimates. Moreover, it facilitates a more unified flow of work than traditional methods. By leveraging the design-build method, project owners can benefit from increased efficiency, better collaboration between design and construction teams, and overall improved project outcomes. Choosing a design and build contract can lead to a more effective and streamlined construction process, ensuring success in today’s competitive construction industry.

What do you mean by design build construction? was last modified: March 12th, 2025 by Ramona Sinha

Written by Ramona Sinha. April 26, 2024

Ramona is the Senior Content Writer for Kukun. This experienced blogger uses simple and succinct words to decipher the complex phenomenon called life. She has written articles covering a broad range of topics, such as real estate, lending and mortgage, finance, business, taxation, home designs, home improvement projects, decor concepts, and more. An avid traveler, she’s a digital nomad at heart and an animal lover from the depth of her soul.