Traditional design-bid-build isn't the only way to deliver construction projects. Design-assist and design-build methods involve contractors earlier in the process, offering different risk profiles, pricing approaches, and competitive dynamics. Understanding these alternatives opens new opportunities for contractors willing to take on expanded roles.
Understanding the Delivery Methods
Traditional Design-Bid-Build
The baseline for comparison:
- Owner hires designer to complete design
- Complete documents go out for bid
- Contractors bid on finished design
- Lowest bidder typically wins
- Construction follows design
Contractor role: Build what's designed, for the price bid.
Design-Build
Contractor-led design and construction:
- Owner develops criteria (program, performance specs)
- Design-build teams propose and price
- Selection based on qualifications, approach, and price
- Winner designs and builds the project
Contractor role: Design and build to owner's criteria.
Design-Assist
Collaborative design development:
- Owner hires designer for basic design
- Contractor selected early (various methods)
- Contractor assists with design development
- Design completes with contractor input
- Contractor builds the project
Contractor role: Help develop design, then build it.
Design-Build Bidding
Selection Methods
How design-build contracts are awarded:
Qualifications-Based Selection
- Proposals evaluated on qualifications
- Price negotiated after selection
- Emphasizes team capability
- Common for complex projects
Best Value Selection
- Proposals scored on multiple factors
- Price is one factor among several
- Technical approach matters
- Most common D-B method
Low Price, Technically Acceptable
- Must meet technical requirements
- Lowest price wins among qualified teams
- Less common for D-B
- Used for simpler projects
Proposal Requirements
Design-build proposals typically include:
Team Qualifications
- Design firm credentials
- Contractor capabilities
- Key personnel experience
- Past project performance
Technical Approach
- Conceptual design
- Design narrative
- Construction approach
- Schedule
Price Proposal
- Lump sum price, or
- Guaranteed maximum price (GMP), or
- Cost plus fee structure
Forming the Design-Build Team
Contractor-Led Teams
- Contractor is prime
- Subcontracts with designer
- Common approach
- Contractor controls relationship
Designer-Led Teams
- Designer is prime
- Contractor as subcontractor
- Less common in construction
- More common in engineering
Joint Ventures
- Designer and contractor as partners
- Shared risk and reward
- More complex structure
- Used for very large projects
Pricing Design-Build
Lump Sum Pricing
- Fixed price for complete project
- Highest risk to contractor
- Owner knows total cost
- Requires well-defined criteria
GMP (Guaranteed Maximum Price)
- Price cap with savings sharing
- More flexibility during design
- Risk shared appropriately
- Most common D-B pricing
Cost Plus Fee
- Reimbursable costs plus fee
- Used when scope unclear
- Lowest contractor risk
- Owner takes cost risk
Design-Assist Bidding
How Contractors Are Selected
Design-assist selection varies:
Competitive Pricing
- Bid on defined early scope
- GMP developed later
- Price competitive on what's known
- Fee competitive for assistance
Qualifications-Based
- Selected on capability
- Price negotiated
- Fee structures compared
- Past performance emphasized
Hybrid Approaches
- Qualifications narrow field
- Competitive pricing among finalists
- Best value evaluation
- Various combinations
Scope During Design-Assist
What contractors provide:
Constructability Input
- Review design for buildability
- Suggest alternatives
- Identify construction challenges
- Value engineering
Cost Feedback
- Pricing during design development
- Budget tracking
- Cost impact of design decisions
- Market condition input
Schedule Input
- Construction sequence advice
- Duration estimates
- Phasing recommendations
- Long-lead item identification
Technical Assistance
- Systems coordination
- Method recommendations
- Equipment and access planning
- Specialty system input
Pricing Development
How price evolves:
Pre-Construction Fee
- Fee for design-assist services
- Typically hourly or lump sum
- Compensation for early involvement
- May be competitive factor
GMP Development
- Price developed as design progresses
- Multiple pricing milestones
- Converges on final GMP
- Owner approval required
Construction Contract
- Converts to construction contract
- Usually GMP or lump sum
- Based on completed design
- Standard construction terms
Competing for Design-Build Work
Building D-B Capability
What you need:
Design Partnerships
- Relationships with design firms
- Experience working together
- Complementary capabilities
- Aligned approach to projects
Proposal Capability
- Can develop conceptual designs
- Can price conceptual scope
- Can articulate approach
- Professional proposal preparation
Track Record
- D-B experience to cite
- References from D-B owners
- Demonstrated capability
- Team experience together
Winning Strategies
Team Selection
- Choose the right designer for the project
- Match team strengths to project needs
- Prior experience together helps
- Complementary capabilities
Technical Approach
- Understand owner's goals
- Offer creative solutions
- Demonstrate understanding
- Show value beyond price
Competitive Pricing
- Price to win, not maximize profit
- Investment in the opportunity
- Long-term relationship value
- Know your competition
Proposal Development
For competitive D-B proposals:
Understanding the RFP
- Owner's true priorities
- Evaluation criteria
- Mandatory requirements
- Differentiating factors
Differentiating Your Team
- Unique qualifications
- Relevant experience
- Key personnel strengths
- Past performance proof
Price Competitiveness
- Appropriate contingency
- Competitive fee structure
- Value-based approach
- Cost confidence
Competing for Design-Assist Work
Positioning for Selection
Early Relationship Building
- Know owners who use D-A
- Build relationships before RFP
- Demonstrate collaborative capability
- Express interest in method
Qualifications Focus
- Experience with D-A delivery
- Collaborative culture evidence
- Technical capability
- Value engineering track record
Pre-Construction Capability
- Experienced pre-construction staff
- Estimating capability
- Scheduling expertise
- VDC/BIM capability
During Design-Assist Phase
Provide Value
- Meaningful constructability input
- Real cost information
- Helpful suggestions
- Proactive communication
Build Trust
- Meet commitments
- Transparent about costs
- Honest about challenges
- Professional conduct
Develop the GMP
- Accurate pricing as design develops
- Clear assumptions and exclusions
- Fair contingency levels
- Market-competitive pricing
Risk Considerations
Design-Build Risks
Higher Contractor Risk
- Responsible for design adequacy
- Price committed before complete design
- Design liability exposure
- Single point of responsibility
Risk Mitigation
- Qualified design partners
- Appropriate contingency
- Clear owner criteria
- Professional liability insurance
Design-Assist Risks
More Manageable Risk
- Design liability stays with designer
- Price develops with design
- Collaborative problem-solving
- Shared risk environment
Potential Issues
- GMP negotiation disputes
- Scope creep during design
- Owner expectations vs. budget
- Relationship challenges
Contract Structures
Design-Build Contracts
Common forms:
- DBIA: Design-Build Institute of America
- AIA A141: Architect-led design-build
- ConsensusDocs 410: Collaborative
- Custom owner forms: Agency-specific
Key terms to negotiate:
- Criteria interpretation
- Changes and additions
- Schedule requirements
- Insurance and liability
Design-Assist Contracts
Two-phase structure typical:
Phase 1: Pre-Construction
- Design-assist services
- Fee-based compensation
- Termination provisions
- GMP development process
Phase 2: Construction
- Standard construction contract
- GMP or lump sum pricing
- Standard terms
- Performance requirements
Market Opportunities
Where These Methods Are Used
Design-Build Common In
- Federal agencies (40%+ of construction)
- Healthcare facilities
- Industrial projects
- Infrastructure
Design-Assist Common In
- Commercial development
- Higher education
- Healthcare
- Complex renovations
Trends
Growing use of both methods:
- Owners value early contractor input
- Collaborative delivery gaining favor
- Risk sharing preferred
- Time and cost benefits recognized
Conclusion
Design-build and design-assist delivery methods offer contractors opportunities beyond traditional low-bid competition. Success requires different capabilities - design partnerships, proposal skills, collaborative culture, and pricing sophistication.
If your market is moving toward these methods, invest in building the capability. Form relationships with design firms. Develop proposal and pre-construction skills. Build a track record through smaller opportunities.
These methods reward contractors who can add value beyond just building what someone else designed. If you can help owners get better projects, faster and more efficiently, collaborative delivery methods are your opportunity to demonstrate that value.
ConstructionBids.ai includes design-build and design-assist opportunities alongside traditional bid-build projects, helping you find the delivery methods that match your capabilities.
