Choosing Between Design-Bid-Build and Design-Build in Construction Projects
Choosing Between Design-Bid-Build and Design-Build in Construction Projects
When starting a commercial construction project, owners face a crucial choice: sticking to the traditional design-bid-build method or opting for design-build project delivery. In design-bid-build, the owner hires a designer for drawings and then invites bids from potential construction managers or contractors. On the other hand, in design-build, the owner hires a single entity responsible for both designing and building the project.
Both approaches have their pros and cons, impacting factors like cost, speed, risk, quality control, and owner involvement. Careful assessment of these aspects helps owners decide which method aligns best with their specific building objectives, budget, and timeline.
In this blog, we will discuss important topics about choosing between design-bid-build and design-build in construction projects:
Check out: Design-Bid-Build Construction Risks and How to Avoid Them
Analyzing Design-Bid-Build vs Design-Build Costs for Commercial Construction
For any construction project, cost is a crucial factor. Owners must consider the fees paid to designers and contractors in relation to the overall budget. The chosen project delivery method significantly impacts these expenses.
Design Fees
Under the traditional design-bid-build approach, owners directly cover design fees by hiring an architect/engineer. These fees are typically a percentage of the total construction cost, ranging from 5-12%. Payments for design services occur incrementally during the design phase before actual construction starts.
In contrast, design fees are integrated into a single contract with a design-build firm. Rather than owners paying design costs separately, they are part of the overall project price provided by the design-builder.
Change Order Costs
Change orders are inevitable in construction projects and can affect the final expenses differently under each delivery method.
In design-bid-build projects, changes post-bidding may result in higher costs due to contractors factoring in larger contingencies and risk premiums. However, significant design changes are less frequent because drawings are fully completed before procurement.
Conversely, design-build projects often start with a less detailed initial design primarily based on the owner's project criteria. This scenario allows for more significant owner-driven changes after construction begins.
Total Project Budget
Evaluating the overall anticipated cost involves balancing upfront fees with potential change orders and contingency requirements. Design-build contracts might seem pricier initially due to integrated design costs, but they offer more cost certainty early in the process with a single responsible entity. Owners can better determine if the total budget aligns with the contracted amount at the project's outset.
Comparing Design and Design-Build Schedules for Commercial Build Projects
In commercial construction, project schedules are crucial alongside overall costs. Coordinating design timelines with construction phases to suit the owner’s business needs is important. Owners should weigh and contrast the schedules between different delivery methods.
Design Phase Timeline
In the design-bid-build method, plans are entirely finished before contractors are brought in. These documents must cover every detail about building systems, materials, and finishes to accurately calculate costs. If additional information is required, it can cause delays after construction begins.
In contrast, design-build compresses the design phase based on the owner’s project needs rather than having fully completed construction documents. The necessary details are developed during the construction phase after awarding the design-build contract.
Procurement Timeline
Procurement differs in design-bid-build and design-build approaches. In traditional delivery, once drawings are complete, a contractor is sought through competitive bidding, which takes time. Awarding the project to the lowest bidder can also lead to appeals.
Design-build procurement tends to be quicker as the request-for-proposal emphasizes qualifications before price. Negotiations finalize scope and schedule details. As designers and builders work for the same entity, less time is spent on bid packages and contracts.
Construction Timeline
While traditional design-bid-build allows for a lengthier design phase, it streamlines construction because plans are complete before work starts. This accurate planning helps limit change orders.
On the other hand, design-build might fast-track design and construction simultaneously, but evolving plans can complicate coordination. The shortened design schedule may also require quicker material orders before final specification.
Allocating Risk Across Design-Bid-Build and Design-Build Methods
Every construction project involves risks, such as unexpected site conditions or errors in plans, affecting schedules and budgets. It’s crucial for owners to manage these risks through proper contracts.
Design Risks
Project uncertainties often arise from errors or omissions in building plans. In design-bid-build, where owners contract directly with designers, accountability mostly lies with the architecture/engineering firm. They hold professional liability insurance to address such issues.
In contrast, with design-build, responsibility for design issues is shared between the design-builder and the owner. Adequate insurance coverage and waivers in the contract are essential to manage these risks effectively.
Construction Risks
Dealing with unforeseen conditions during construction varies. In traditional delivery, changes due to new site information mostly fall on the contracted general contractor or construction manager.
In design-build, one entity handles both design and construction. However, significant changes often lead to negotiations between owner-driven additions and the builder’s scope. Clear contract terms are crucial.
Accountability for Issues
Design-build offers a single point of accountability for design and construction, but owners lose direct legal recourse against designers. In design-bid-build, owners can hold architects and contractors separately accountable. Deciding between consolidated or separated liability depends on the owner’s trust in the design-build team.
Evaluating Quality Control Between Delivery Methods
Ensuring cost efficiency and timely schedules is important, but maintaining quality in construction matters too. Overseeing both design and building phases is essential for meeting project requirements.
Designer Involvement During Construction
In the traditional design-bid-build method, designers play an active role in overseeing builders' adherence to plans and specifications throughout the construction phase. They address construction-related queries, provide additional information, and offer clarifications through formal requests-for-information (RFIs). This involvement helps ensure that the construction aligns with the original design intent.
On the other hand, in design-build projects, the designer’s involvement during the construction phase might diminish. Oversight is typically managed by the design-build entity itself. Here, the responsibility for executing the designs accurately lies with the design-builder. The focus is on minimizing reliance on post-bid clarifications or alterations. However, changes made after the contract is awarded could affect the quality control process as they might introduce discrepancies between the design and construction phases.
Builder’s Oversight of Designs
In the traditional delivery method, builders aren’t extensively involved in shaping the complete plans. The responsibility for accurately detailing the designs primarily rests with architects and engineers. As a result, builders' liability for issues during construction is limited unless modifications are initiated by the owner or stakeholders.
Contrarily, in design-build projects, contractors play a substantial role during the design phase. They actively contribute insights, value engineering, and inputs regarding specifications, materials, system feasibility, and construction methodologies. This deeper involvement often aids in enhancing the constructability and coordination of the project.
Adherence to Specifications
For owners who prioritize strict adherence to specifications, the traditional design-bid-build method might be preferable. The completed plans provided to competing bidders include detailed and comprehensive specifications. Owners refer to these specifications closely during the construction phase to ensure compliance.
In design-build scenarios, there’s greater room for collaboration between builders and designers concerning preferred specifications. This collaborative approach allows for discussions on alternative materials and systems that still meet the project's functional goals. However, this can also mean that owners may have less direct control over the stringent adherence to initial specifications due to the flexibility and ongoing discussions regarding alternatives.
Owner Involvement Differences
Apart from considering costs, schedules, and risks, owners in commercial construction projects should evaluate how design and design-build methods involve them in creating the final building.
Design Decision Involvement
In design-bid-build, owners have significant involvement during the design phase. They can request various revisions to adjust spatial layouts, preferred systems, unique materials, and specific functional aspects critical to their business.
In design-build, owners face more accelerated decision-making. There are fewer opportunities for revisions as builders work on methods simultaneously. However, owners benefit from the contractor's expertise in constructability.
Owner Communication
With the traditional approach, owners communicate directly with contracted designers for changes and clarifications. Interaction with the awarded general contractor or construction manager begins post-procurement.
In design-build, owners primarily engage with the design-build project manager throughout the project. However, some owners prefer direct communication with both designers and builders. Establishing the best communication flow is crucial.
Customization Options
For highly personalized buildings meeting specific business needs, traditional design-bid-build offers maximum flexibility. Owners can request multiple design versions, intricate detailing, and exclusive specifications.
In design-build, teams often standardize designs for efficiency but allow customization at an extra cost. However, substantial owner-driven changes midway through the design phase could impact coordination and documentation.
Why Clipper Construction Should Be Your Trusted Commercial Builder
Clipper Construction is the ideal choice for your upcoming commercial construction project in Baltimore, Maryland. As you handle the complexities between different construction methods like design-bid-build and design-build, entrust our seasoned experts to bring your ideas to life. With more than ten years of extensive experience in various sectors, our team has the expertise to deliver tailored outcomes that match your budget, specifications, operational needs, and deadlines.
Our expertise in value engineering is at the core of our service. With considerable experience in both design-bid-build and design-build approaches, we offer valuable insights to enhance construction efficiency without compromising quality. Our collaborative method involves close coordination between our field experts, understanding your space requirements, and seamless interaction with architects and engineers to create cost-effective yet accurate plans that align with your financial objectives.
The proven track record of Clipper Construction speaks volumes about our capabilities in commercial construction. Over the years, we've successfully completed a wide range of commercial projects in various sectors like restaurants, multifamily, office space, retail, medical, industrial, and non-profit. Our portfolio showcases our ability to construct buildings tailored to your unique business needs.
Move forward with your vision for a commercial construction project in Baltimore, Maryland. Reach out to Clipper Construction today at (443) 323-1880 or visit https://www.clipper.construction/ to start a discussion, review your project objectives, and let our experienced professionals guide you through the process.
Frequently Asked Questions (FAQs)
- What is the Difference Between Design-Bid-Build and Design-Build in Construction?
Design-Bid-Build (DBB) and Design-Build are two ways to manage construction projects. DBB hires separate teams for design and construction, while Design-Build merges both tasks under one team. Each method has its own benefits and factors to consider. - What are the Cost Differences Between Design-Bid-Build and Design-Build?
In DBB, costs usually involve separate design fees and potential change orders, while Design-Build combines design expenses into a single contract. Knowing these cost structures helps owners pick the most cost-efficient method. - What Makes Schedules Different in Design-Bid-Build and Design-Build Projects?
Design-Bid-Build projects follow a step-by-step timeline, completing designs before construction. In contrast, Design-Build projects often overlap design and construction phases, potentially affecting project schedules differently. - What Risks are Associated with Design-Bid-Build vs. Design-Build?
Both methods come with risks; DBB might involve change order risks and incomplete designs, while Design-Build risks include shared accountability and liability issues. Managing these risks depends on contracts and project specifics. - How Does Quality Control Vary Between Design-Bid-Build and Design-Build?
Quality control in DBB involves more direct oversight from designers during construction, while Design-Build might affect adherence to specifications and builder involvement in the design phase differently. - What Role Does Owner Involvement Play in Design-Bid-Build and Design-Build Projects
Owners have different levels of input in design choices, communication, and customization options in DBB and Design-Build. Understanding these differences helps owners select the best approach. - What Are the Key Factors When Choosing Between Design-Bid-Build and Design-Build?
Factors to consider include costs, project timelines, risk allocation, quality control preferences, and owner involvement. Evaluating these aspects helps determine the most suitable construction method. - How Do Design-Bid-Build and Design-Build Handle Change Orders and Design Revisions?
DBB may have higher change order costs due to finalized designs before construction, while Design-Build offers more flexibility for design changes during construction. Owners should consider these implications when deciding. - What Type of Projects Suit Design-Bid-Build vs. Design-Build Approaches?
Simple, clearly defined projects often fit better with DBB because of its structured nature, while Design-Build might suit projects with changing needs or those valuing collaboration between designers and builders. - Why Choose Clipper Construction for Design-Bid-Build or Design-Build Projects?
Clipper Construction has expertise in various construction methods, including DBB and Design-Build, offering tailored solutions, value engineering, and a track record of successful commercial projects in Baltimore, Maryland. Contact us for reliable guidance and efficient construction services.
