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Estimating & Biddingaka: DBaka: D-B

Design-Build

In Plain English

A delivery method where one contractor handles both the design and the construction under a single contract.

Definition

Design-build is a project delivery method in which a single entity provides both design and construction services under one contract with the owner. This integrated approach compresses the schedule by overlapping design and construction phases. Design-build transfers design risk to the contractor and can reduce overall project cost and duration.

Why It Matters in Bidding

Design-build consolidates design and construction under one contract, so procurement shifts from low-bid selection toward proposals evaluated on qualifications, approach, and price. Estimators must price from incomplete or performance-based documents, leaning on allowances and design contingency rather than fully detailed quantities. By overlapping design and construction, the method compresses schedules and gives the owner a single point of accountability for both cost and design.

Example

The transit authority selected design-build delivery for the new maintenance facility to complete the project 18 months faster than traditional design-bid-build.

Related Terms

Design-Bid-BuildProject Delivery MethodGeneral ContractorGuaranteed Maximum Price

Frequently Asked Questions

Design-build overlaps design and construction, compressing the overall schedule, and gives the owner one entity accountable for both design and delivery. Early contractor involvement improves constructability and cost control, and design risk shifts to the design-builder. These benefits make it popular when speed and single-point responsibility matter more than a fully detailed price up front.
Owners commonly use a qualifications-based or best-value process, evaluating each team's experience, technical approach, schedule, and price together rather than awarding strictly to the lowest bid. Selection may follow a request for proposals with conceptual design submissions. This lets owners weigh quality and a team's ability to design as well as build, not price alone.
Teams price against the owner's performance requirements and conceptual documents using parametric costs, allowances, and unit pricing, then carry a design contingency for elements not yet detailed. As design develops, pricing is refined and often converted into a guaranteed maximum price. Strong assumptions and clear scope documentation are essential to avoid disputes later.

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