Design-build procurement requires a fundamentally different approach than traditional bidding. Success depends on team formation, proposal quality, and demonstrating integrated capabilities. This guide covers the entire design-build pursuit process.
Understanding Design-Build Procurement
Two-Phase Selection Process
Most design-build procurements use a two-phase approach:
Phase 1: Request for Qualifications (RFQ)
- Statement of qualifications
- Team identification
- Relevant experience
- Shortlist selection (typically 3-5 teams)
Phase 2: Request for Proposals (RFP)
- Detailed technical proposal
- Design concepts
- Project approach
- Pricing
- Interviews/presentations
Single-Phase Selection
Some projects use a single-phase process:
- Combined qualifications and proposal
- All teams submit complete proposals
- More effort for non-shortlisted teams
- Less common for large projects
Team Formation
Core Team Members
| Team Member | Role | |-------------|------| | Design-build contractor | Lead entity, construction | | Architect of Record | Design leadership | | Engineering consultants | Structural, MEP, civil | | Key subcontractors | Specialty input (sometimes) |
Selecting Design Partners
Evaluation Criteria:
- Relevant project experience
- Design capability and creativity
- Collaboration history
- Geographic presence
- Workload and availability
- Fee expectations
Partnership Structures: | Structure | Characteristics | |-----------|-----------------| | Contractor-led | Contractor is prime, A-E subcontracts | | Joint venture | Shared prime relationship | | Developer-led | Developer is prime (less common) |
Teaming Agreements
Before proposal development:
- Define roles and responsibilities
- Establish fee arrangements
- Address liability and insurance
- Set exclusivity terms
- Define proposal cost sharing
RFQ Response
Typical RFQ Requirements
| Section | Content | |---------|---------| | Cover letter | Executive summary, commitment | | Team overview | Organization, key firms | | Experience | Relevant projects | | Key personnel | Qualifications, resumes | | Approach | General methodology | | References | Past clients |
Experience Presentation
Project Sheets Should Include:
- Project name and location
- Owner and reference contact
- Contract value
- Completion date
- Relevance to current project
- Team members' roles
- Key achievements/outcomes
Selection Criteria for Projects:
- Similar size and complexity
- Same building type
- Comparable delivery method
- Successful outcomes
- Team members involved
Key Personnel Qualifications
Required Information:
- Name and title
- Years of experience
- Education and certifications
- Relevant project experience
- Role on proposed project
- Commitment percentage
High-Value Positions:
- Project Executive
- Design-Build Project Manager
- Lead Designer/Architect
- Construction Manager
- Key discipline leads
RFP Response
Technical Proposal Components
| Section | Purpose | |---------|---------| | Executive summary | Overview and differentiators | | Understanding | Demonstrate project comprehension | | Technical approach | Design and construction methodology | | Project team | Detailed organization | | Design concept | Preliminary design response | | Schedule | Approach to timeline | | Quality/safety | Programs and approach |
Design Concept Requirements
Depending on RFP requirements:
Conceptual Level:
- Site plan
- Floor plans
- Building sections
- Elevations
- Renderings
Narrative Elements:
- Design philosophy
- Space planning approach
- Systems descriptions
- Sustainability features
- Innovation elements
Technical Approach
Design Process:
- Owner engagement methodology
- Design development phases
- Quality control procedures
- Review and approval process
Construction Approach:
- Procurement strategy
- Schedule management
- Quality assurance
- Safety program
- Commissioning approach
Pricing Strategies
Common Pricing Formats
| Format | Description | |--------|-------------| | Lump sum | Fixed price for complete scope | | GMP | Guaranteed Maximum Price | | Cost-plus fee | Cost reimbursement plus fee | | Hybrid | GMP with allowances |
Lump Sum Pricing
Considerations:
- Complete design understanding required
- Contingency for design development
- Clear scope boundaries
- Risk pricing essential
GMP Pricing
Components:
- Cost of work estimate
- General conditions
- Contingency (owner's and contractor's)
- Fee (overhead and profit)
GMP Development:
Cost of Work: $8,500,000
General Conditions: $425,000
Contingency (5%): $425,000
Fee (8%): $748,000
---------------------------------
GMP: $10,098,000
Pricing Competitiveness
Balance Required:
- Competitive pricing
- Adequate contingency
- Profitable fee structure
- Risk-appropriate approach
Interview Preparation
Typical Interview Format
| Segment | Duration | Content | |---------|----------|---------| | Setup | 15 min | Equipment, arrangement | | Presentation | 30-45 min | Team presentation | | Q&A | 30-45 min | Owner questions | | Debrief | After | Team discussion |
Presentation Content
Key Elements:
- Team introduction
- Project understanding
- Design concept
- Technical approach
- Value propositions
- Commitment to success
Presentation Tips
Do:
- Practice extensively
- Have all key personnel present
- Demonstrate team chemistry
- Use visuals effectively
- Show enthusiasm
Don't:
- Read from slides
- Have only one person speak
- Exceed time limits
- Ignore owner concerns
- Be unprepared for questions
Common Interview Questions
| Category | Sample Questions | |----------|------------------| | Team | "How will you ensure continuity of key personnel?" | | Design | "Walk us through your design process for this project." | | Schedule | "How will you maintain the schedule during design?" | | Cost | "How do you control costs during design development?" | | Risk | "What are the biggest risks and how will you address them?" | | Experience | "Describe a challenge on a similar project and how you resolved it." |
Evaluation Criteria
Typical Weighting
| Criteria | Weight Range | |----------|--------------| | Technical approach | 25-35% | | Design concept | 15-25% | | Team qualifications | 20-30% | | Price | 25-40% | | Interview | 5-15% |
Best Value Determination
Most design-build uses best value, not low price:
- Technical and price evaluated together
- Quality weighted against cost
- Overall value to owner considered
Common Mistakes
Team Formation Errors
| Mistake | Prevention | |---------|------------| | Late team assembly | Start early when RFQ announced | | Misaligned partners | Vet partners thoroughly | | Unclear agreements | Document all arrangements | | Weak design partner | Select strong, experienced firms |
Proposal Errors
| Mistake | Prevention | |---------|------------| | Generic content | Customize to specific project | | Unclear differentiators | Identify and emphasize value | | Poor organization | Follow RFP structure | | Weak graphics | Invest in quality visuals | | Missing requirements | Use compliance matrix |
Interview Errors
| Mistake | Prevention | |---------|------------| | Unprepared team | Practice multiple times | | Wrong personnel | Send decision-makers | | Poor chemistry | Build genuine relationships | | Exceeding time | Practice timing | | Defensive responses | Prepare for tough questions |
After Submission
Clarification Requests
Be prepared for:
- Technical clarifications
- Pricing questions
- Scope confirmations
- Reference checks
Best and Final Offers
Some procurements include BAFO:
- Opportunity to improve proposal
- May include price and technical
- Requires strategic response
Debriefing
If not selected:
- Request debriefing
- Understand weaknesses
- Improve future proposals
- Maintain relationships
Competitive Advantages
Differentiators
| Factor | How to Demonstrate | |--------|-------------------| | Innovation | Unique approaches, new technologies | | Value | Cost savings without quality reduction | | Experience | Relevant, successful projects | | Team quality | Strong personnel commitments | | Approach | Clear, logical methodology | | Chemistry | Genuine enthusiasm and fit |
Building D-B Capabilities
Long-Term Development:
- Build design partnerships
- Develop preconstruction skills
- Track D-B project experience
- Train personnel in integrated delivery
- Market D-B capabilities
Related Articles
- Alternative Delivery Methods in Construction
- How to Write Winning Construction Bid Proposals
- Construction Bid Team Organization
Frequently Asked Questions
How do design-build fees compare to design-bid-build? Design-build often has higher contractor fees (8-12% vs 5-8%) but includes design coordination, risk assumption, and preconstruction services.
Who carries professional liability insurance in design-build? The design-build entity needs professional liability (E&O) coverage. This can be contractor policy, designer policy, or project-specific coverage.
How do we price design development risk? Include contingency for design development (typically 5-10% at early stages). As design progresses, contingency decreases.
Should small contractors pursue design-build? Yes, by partnering with appropriate design firms. Start with smaller projects to build experience and track record.
What if our design partner doesn't match the owner's vision? Ensure strong owner engagement during design. If misalignment occurs, address early through collaborative design sessions.
