Design-Build vs Design-Bid-Build: Key Differences, Benefits, and Contract Frameworks

By James Germano, Esq., Manager and Counsel, AIA Contract Documents

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A101-2017  Standard Form of Agreement Between Owner and Contractor where the basis of payment is a Stipulated Sum
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March 11,2022

When embarking on a construction project, you may encounter the terms “Design-Build” and “Design-Bid-Build.” These two project delivery methods dictate how the construction process unfolds, how the parties involved are selected, and how they work together. Understanding the key differences between these approaches is crucial for owners and contractors alike. In this article, we’ll explore what each method entails, their benefits, and the contractual frameworks that govern them. 

What is Design-Bid-Build? 

How Does Design-Bid-Build Work? 

In the Design-Bid-Build (DBB) framework, the construction process unfolds in three distinct phases: design, bid, and build. 

  1. Design Phase:
    The project owner begins by deciding what they want to build—whether it’s a home, office building, school, or stadium. The owner then hires a design team, usually an architect and other specialists, to create preliminary drawings and project specifications. These documents form the foundation for the next phase—the bid. 
  2. Bid Phase:
    Once the design is complete, the project is put out for bids. The owner issues a “bid package,” which includes the project drawings, specifications, and other requirements. Contractors then submit bids, hoping to win the project. The bids are reviewed, and the owner selects the contractor with the best offer, whether in terms of price, experience, or qualifications. 
  3. Build Phase:
    After a contractor is selected, the project moves into the construction phase. The contractor uses the approved design to build the project, with the owner overseeing the construction process to ensure everything is done according to the plan. 

The DBB method offers the advantage of clear, step-by-step management and typically results in more competitive bidding. However, it can also lead to delays due to the sequential nature of the phases. 

What is Design-Build? 

How Does Design-Build Work? 

In contrast to Design-Bid-Build, Design-Build (DB) is a more streamlined approach where the owner hires a single entity, known as a design-builder, to handle both the design and construction of the project. 

  1. Single Point of Contact:
    Instead of hiring separate parties for design and construction, the owner contracts with one entity, which can be a construction company with design capabilities, or a design firm that also handles construction. This single point of contact simplifies communication and project management. 
  2. Integrated Process:
    The design-builder works on both the architectural design and the construction of the project simultaneously, which can lead to faster project delivery. By having both design and construction teams under one roof, design-builders can quickly address design and construction challenges, improving efficiency. 

The DB method offers advantages in terms of speed and collaboration, and often leads to fewer disputes between the design and construction teams. However, it might not provide the same level of competitive bidding, as only one entity is involved. 

 

Key Differences Between Design-Build and Design-Bid-Build 

Aspect Design-Bid-Build (DBB) Design-Build (DB) 
Project Phases Sequential: Design → Bid → Build Simultaneous: Design and Build occur together 
Parties Involved Separate design and construction teams One entity handles both design and construction 
Control and Coordination Owner coordinates design and contractor Single point of contact for the entire process 
Project Timeline Longer, as the phases are completed one after the other Shorter, due to overlapping phases 
Contractual Setup Multiple contracts: design contract and construction contract Single contract with the design-builder 
Cost & Budgeting Clear separation between design costs and construction costs Integrated cost management, potentially more flexibility 

 

Advantages and Disadvantages 

Design-Bid-Build Advantages: 

  • Competitive bidding can lead to cost savings. 
  • The owner has greater control over design and contractor selection. 
  • Clear contract separation reduces ambiguity. 

Design-Bid-Build Disadvantages: 

  • The sequential process can lead to longer project timelines. 
  • Potential for disputes between the design and construction teams. 
  • Communication breakdowns can cause delays and cost overruns. 

Design-Build Advantages: 

  • Faster project delivery due to simultaneous design and construction. 
  • Integrated process reduces the likelihood of misunderstandings. 
  • A single point of contact simplifies communication and management. 

Design-Build Disadvantages: 

  • Limited opportunity for competitive bidding, as only one contractor is involved. 
  • The owner has less control over the design process compared to DBB. 

 

Contractual Implications: Design-Bid-Build vs Design-Build 

The choice between Design-Bid-Build and Design-Build will impact your contractual setup. The AIA Contract Documents program offers both types of contract frameworks (called families), which can all be seen on our Contract Relationship Diagrams. If you’re following the DBB framework, you will need at least two distinct contracts: one for the design phase (with an architect or design team) and one for construction (with the selected contractor). This means that the owner must coordinate between different parties, which can introduce complexities. 

On the other hand, with Design-Build, there is only one contract between the owner and the design-builder. This simplifies the contractual relationship and eliminates the need for coordination between multiple contractors and designers. 

The AIA Contract Documents program provides specific agreements for both frameworks: 

  • For Design-Build projects, the A141-2014 is the primary agreement, providing a comprehensive structure for managing the design-build process. 

 

Which Project Delivery Method is Right for You? 

Choosing the right project delivery method depends on several factors: 

  • Timeline: If you need a fast turnaround, Design-Build may be the best option. 
  • Control: If you want more control over the design process and prefer competitive bidding, Design-Bid-Build might be the better choice. 
  • Budget: Both methods can be cost-effective, but Design-Build offers better cost management due to its integrated approach. 

Before making a decision, it’s essential to assess your project’s needs, budget, and timeline. Consulting with an experienced professional can help you navigate the complexities of both methods and choose the one that aligns best with your goals. 

 

Both Design-Bid-Build and Design-Build have their unique benefits and drawbacks. While Design-Bid-Build offers more control over each phase and competitive bidding, Design-Build delivers faster project completion and simplified management. Understanding these differences is crucial in making an informed decision for your next construction project. 

AIA Contract Documents has provided this article for general informational purposes only. The information provided is not legal opinion or legal advice and does not create an attorney-client relationship of any kind. This article is also not intended to provide guidance as to how project parties should interpret their specific contracts or resolve contract disputes, as those decisions will need to be made in consultation with legal counsel, insurance counsel, and other professionals, and based upon a multitude of factors.