Guaranteed Sites Plans in Under 24 Hours
Time is one of the most valuable resources in the construction industry. Delays, inefficiencies, and miscommunication can lead to significant financial losses for developers, contractors, and stakeholders alike. While legal contracts attempt to define who is responsible for these setbacks, the reality is often much more complicated. The evolving nature of construction law has made it increasingly difficult for contractors to recover lost funds due to project delays, leaving many at the mercy of lengthy legal battles.
Given these challenges, selecting the right project delivery method is crucial. The design-build and design-bid-build processes each offer distinct advantages and drawbacks that can impact project timelines, costs, and overall efficiency.
But which method is truly the best for your project? In this article, we compare design-build vs design-bid-build to help you determine which approach is right for you.
What is design-build?
In the design-build construction method, the main contractor handles both the design and construction phases of a project. This streamlines the conceptualization, design, construction, and delivery processes, as the designers, construction developers, and builders are all signed to one contract as a team that can work effectively and in unison. In this scenario, work can begin before the design phase is fully completed.
To better understand why this is an efficient way to conduct business in the construction industry, let’s compare design-bid-build vs design-build.
What is design-bid-build?
Most construction projects employ the design-bid-build process to complete a task. In this process, every aspect of the construction is contractually performed by separate entities obligated to work together.
For example, a client first hires site plan designers to draw site plans, layouts, and floor plans. The design phase is 100% complete before moving onto the next stage, the bidding. After receiving the completed designs, the client then entertains bids from multiple construction companies. Then, the winning construction bid begins work on the project.
Design-build vs design-bid-build: which is better?
Now that we’ve defined the two methods, let’s compare their benefits and drawbacks.
Cons of design-bid-build
While a design-bid-build contract is the most traditional way the construction industry conducts business, it is not always the best.
Lengthy project timelines. Each distinct phase of the design-bid-build construction method can take months or years to complete as they don’t overlap.
Complex bureaucracy and contract management. A design-bid-build contract can be a bureaucratic nightmare because scores must be drafted and signed by hundreds of separate but project-linked contracts.
Increased financial risk for the client. The clients or owners of the final project are exposed to a lot of financial risk in this method. Since project participants don’t work together and are separated by phases, individual mistakes, delays, and overruns will adversely affect everyone else in the project.
Site plan redesigns are costly and complicated. Additionally, a design-bid-build project could potentially become too big to succeed. If the construction phase encounters problems that require site plan redesigns, more money must be spent to re-hire the original or new designers.
Lack of collaboration between phases. As everyone in the project completes their work in unconnected phases, no one is collaborating or on the same page about completing a project during construction.
Risk of delays and overruns. Mistakes, misunderstandings, delays, and overruns during the design-bid-build process can result in a lot of lost time, wasted money, and a delayed or unfinished project.
Pros of the design-build method
When comparing design-build vs design-bid-build, it’s hard to overlook the many advantages of the newer method. Considering the above and the below, a design-build contract might be best.
Easy cost management. An enormous benefit of a design-build project is cost management. Since all parties work in unison, construction budgets can be monitored in real time instead of continually and ineffectively reassessed in phases.
Faster project delivery and low project costs. Design-build construction projects are delivered 33% faster than with the design-bid-build process. Additionally, design-build projects usually cost 6% less to complete than design-bid-build projects.
Greater collaboration. A construction team under a design-build contract is obligated to work in unison synergistically. All parties involved can ask the other questions or get clarification on data to perform work.
Fewer deviations. When design-build projects are initiated, collaborating teams usually stay focused and don’t deviate from plans. Studies have shown a 6% reduction in requested change orders when a design-build process is initiated.
Enhanced creativity and quality. Experienced, professional teams working together in a design-build project bring out the best in each other. People become creatively competitive and want to produce the best final product. Design-build construction projects usually end up being of appreciably higher aesthetic quality than traditional design-bid-build projects.
Is your company putting together a design-build construction team? Consult the professionals at My Site Plan for site plans, floor plans, conceptual layouts, subdivision designs, and marketing.
Pick the right site plan design
Who you choose as your winner in the design-bid-build vs design-build debate is up to you. Every construction project is unique and requires a different process, so what works for one project might not work for another.
However, comparing design-build vs design-bid-build suggests that the former is more likely to deliver the finished projects on time and under the estimated costs.
Do you need help developing site plans for your construction project? Contact My Site Plan today.
FAQs
What are some legal protections for contractors against client-caused delays in construction?
To protect against client-caused delays, contracts can include specific clauses that define compensation terms and conditions. These clauses aim to ensure that contractors are reimbursed for losses incurred due to delays beyond their control.
How can companies assess whether the design-build process is suitable for their project?
Companies should consider the complexity and scope of the project, the potential for changes, and the importance of the timeline and budget. Consulting with industry experts and analyzing past project successes with different methodologies can also guide this decision.
What are the common causes of delays in design-bid-build projects?
Common causes include miscommunication between distinct project teams, delays in one phase affecting subsequent phases, and administrative bottlenecks in approving and moving between stages of the project.
How do changes in construction laws affect project planning and contracts?
Fluctuations in construction laws necessitate frequent updates to contract templates and increased legal oversight during the planning stage to ensure all potential liabilities and scenarios are accounted for.
What steps can be taken to minimize misunderstandings among teams in a design-bid-build contract?
Enhancing communication tools, regular coordination meetings, clear documentation of all phases, and employing a centralized project management system can help minimize misunderstandings and ensure alignment among different teams.
Are there specific training or skills enhancements required for teams working on a design-build vs design-bid-build project?
Teams involved in design-build contracts often require cross-disciplinary training and skills enhancement to collaborate effectively across different stages of the construction process, unlike in design-bid-build construction projects, where the focus may remain within specialized phases.
This blog was originally published on April 26, 2021. It was updated on March 31, 2025.
