Construction Basics for Owners: The Design-Bid-Build and Design-Build Delivery Methods

By Susan Van Bell, Esq., AIA Contract Documents content contributor

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If you’re an owner considering a small commercial or residential construction project, understanding the basics of the Design-Bid-Build and Design-Build delivery methods is essential in choosing the right approach for your project. While there are other more complex construction delivery methods (such as construction management or integrated project delivery), this article focuses on Design-Bid-Build and Design-Build, two of the most common methods for owners. 

 

What is the Design-Bid-Build Delivery Method? 

The Design-Bid-Build (DBB) method involves separate agreements with an architect and a contractor. This traditional approach gives you more flexibility but requires more time and involvement. Here’s how it works: 

 

Key Phases of the Design-Bid-Build Process 

In DBB, the process typically unfolds in several phases: 

  1. Schematic Design: The architect creates basic drawings that capture the project’s requirements. For example, this could include plans for a two-story house with a finished basement. 
  2. Design Development: The architect refines the initial design, incorporating more details. 
  3. Construction Drawings: After final approval, detailed drawings are prepared, outlining everything the contractor needs for construction. 

Throughout these phases, you’ll have the opportunity to review the drawings and provide feedback. For simpler projects, the design process may be more abbreviated. 

 

The Role of Architects in Design-Bid-Build 

While the architect’s primary role is design, they often assist with contractor selection and oversee construction. Under AIA (American Institute of Architects) standard agreements, architects: 

  • Review contractor bids and make recommendations. 
  • Assist in drafting the owner/contractor agreement. 
  • Perform site inspections and ensure the construction complies with the approved drawings. 

Additionally, the architect helps during the construction phase, reviewing contractor payment requests, approving any changes, and determining when the project reaches substantial completion—when the project is sufficiently finished for its intended purpose (e.g., moving into a house or opening a restaurant). 

 

Advantages and Disadvantages of Design-Bid-Build with an Architect 

Pros: 

  • Flexibility in choosing your architect and contractor. 
  • More control over the design and construction phases. 

Cons: 

  • More complex and time-consuming process. 
  • Requires more owner involvement in contractor selection and construction oversight. 

 

What is the Design-Build Delivery Method? 

In contrast, the Design-Build (DB) method simplifies the process by combining both design and construction under one entity: the design-builder. This can be a contractor with an in-house architect or a builder who works with a third-party architect. 

 

Benefits of Using a Design-Builder 

With Design-Build, the owner signs a single contract with the design-builder who handles both design and construction. This method is often used by: 

  • Home builders with pre-developed plans. 
  • Contractors offering complete design services. 

This approach can speed up the project timeline and simplify communication, as there’s only one party responsible for both design and construction. 

 

Comparing Design-Build to Design-Bid-Build 

The main difference between these two methods lies in how the work is structured: 

  • Design-Build offers a streamlined process with less owner involvement, especially when using pre-designed plans. 
  • Design-Bid-Build involves more steps and a greater need for owner oversight and decision-making at various stages. 

 

Which Construction Delivery Method Should You Choose? 

When deciding between Design-Bid-Build and Design-Build, it’s important to consider your project’s complexity, timeline, and the level of involvement you want in the design and construction process. 

 

Pros and Cons of Design-Bid-Build with a Design-Builder 

Pros: 

  • Greater control over design and contractor selection. 
  • More flexibility for complex, custom projects. 

Cons: 

  • Can be more time-consuming and costly due to separate contracts and negotiations. 
  • Requires more owner oversight during construction. 

 

Pros and Cons of Design-Build with a Design-Builder 

Pros: 

  • Faster and more efficient process with a single point of contact. 
  • Simplified communication between design and construction teams. 

Cons: 

  • Less flexibility in choosing your designer and contractor. 
  • The design-builder may have pre-existing plans that might limit customization. 

 

Making the Right Choice for Your Project 

Choosing between Design-Bid-Build and Design-Build depends on your preferences and the scope of your project. If you’re looking for a more hands-off, efficient process, Design-Build may be the better choice. However, if you want more flexibility and control, Design-Bid-Build may be the way to go. 

This article provides an overview to help you understand these methods and select the right one for your next project. 

Construction Basics for Owners: Working with an Architect 

 

Susan Van Bell, Esq. was Senior Director of Content for AIA Contract Documents for over ten years. She is currently a consultant.

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.