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Contracts & Legal

Project Delivery Method

In Plain English

The overall structure for how a construction project is organized, designed, and built.

Definition

Project delivery method refers to the contractual framework and organizational structure used to plan, design, and construct a project. The primary methods include design-bid-build, design-build, and construction manager at risk. The choice of delivery method significantly affects risk allocation, schedule, cost, and the owner's management burden.

Why It Matters in Bidding

The delivery method dictates how a project is bid, when the contractor is brought on, and who carries design and cost risk, so estimators must adjust their approach for each. A hard-bid design-bid-build job rewards precise takeoff from complete drawings, while design-build and CM-at-risk pursuits demand conceptual pricing, qualifications, and collaborative cost modeling long before documents are final.

Example

An owner choosing CM-at-risk over hard bid brings the contractor on during design to provide a guaranteed maximum price, so the estimator prices from progress drawings and refines the GMP as the design develops.

Related Terms

Design-Bid-BuildDesign-BuildConstruction Manager at RiskContract

Frequently Asked Questions

Design-bid-build relies on complete documents and a firm lump-sum number, so accuracy hinges on detailed takeoff. Design-build and CM-at-risk require conceptual estimating, assumptions, and allowances on incomplete information, plus strong qualifications. Your estimating effort, contingency, and proposal format all shift with the method the owner selects.
Design-build concentrates the most risk on the contractor because the same entity owns both design and construction, including coordination errors and constructability. CM-at-risk shares risk through a GMP, while design-bid-build keeps design risk with the owner and architect, leaving the contractor responsible mainly for means and methods.
Owners weigh schedule, cost certainty, control, and in-house capacity. Design-build compresses schedule and gives a single point of accountability; CM-at-risk offers early cost input with a price cap; design-bid-build maximizes competitive pricing and owner control but takes longer. Knowing their priorities helps you position your proposal.

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