Design-build, a project delivery method growing rapidly in the U.S., has revolutionized how contractors manage costs, streamline schedules, and foster innovation. As the fastest-growing project delivery approach in the country, design-build has consistently outperformed traditional models like design-bid-build and construction management at-risk in cost and schedule performance. According to FMI Corporation’s 2024 Design-Build Utilization Study, design-build is expected to drive more than $2.6 trillion in construction spending between 2024 and 2028, accounting for nearly half of the nation’s construction projects.

The design-build method thrives due to its ability to drive exceptional results, encourage collaboration, and integrate teams early in the project lifecycle. Lisa Washington, CEO of the Design-Build Institute of America (DBIA), argues that despite some misconceptions about the process, design-build offers numerous benefits that help project teams work more effectively together.

Debunking Misconceptions About Design-Build

In a recent Construction Dive opinion piece, several points about design-build were mischaracterized, especially regarding its procurement methods and risk allocation. While some critics claim that the design-builder has minimal involvement with the owner during design development, this is far from the truth. Design-build promotes early collaboration, often bringing together integrated firms or joint ventures to ensure continuous communication and alignment between the project owner and the design-build team.

“Design-build promotes collaboration from the outset. Whether through an integrated firm or a joint venture, the design-builder’s engagement with the owner remains strong,” Washington said.

This process enables flexibility in how owners interact with the team, allowing them to determine the level of involvement while ensuring collaboration from all parties from day one.

Risk Allocation and Better Project Outcomes

Another common misconception is that design-build places all risk on the contractor to deliver the project at an agreed-upon price. In reality, risk allocation in design-build is a collaborative process where risks are strategically assigned to the party best able to manage them, reducing inefficiencies and disputes. The DBIA Best Practices emphasize joint risk assessment, ensuring that contractors and owners identify potential risks early and clearly define how those risks will be handled in the contract.

“One of the cornerstones of DBIA Best Practices is the strategic allocation of risk to the party best positioned to manage it,” Washington noted.

This strategic approach to risk management leads to better project outcomes, minimizing conflicts and fostering stronger teamwork. According to a 2018 CII/Pankow study, design-build projects experience 3.8% less cost growth than those using traditional delivery models, further demonstrating how proper risk allocation results in more predictable project outcomes.

Design-Build's Efficiency in Project Timelines

Some critics also claim that the two-step procurement process used in design-build adds time to the overall project. However, this viewpoint overlooks the long-term time savings provided by design-build. The method reduces costly change orders, accelerates decision-making, and allows design and construction to overlap, resulting in faster project delivery.

The CII/Pankow study found that design-build projects are completed 102% faster than traditional design-bid-build projects and 61% faster than those using construction management at-risk. This streamlined approach is a key reason why design-build has become a preferred method for many contractors and owners alike.

The Reality of Progressive Design-Build (PDB)

Progressive Design-Build (PDB) is often misunderstood as a separate delivery method, but in fact, it’s a procurement variation within the design-build framework. PDB enables owners to work closely with the design-build team in a phased approach, allowing for real-time cost estimating, iterative design refinement, and better risk management.

“By progressing toward a design concept collaboratively, owners and design-build teams can continuously refine scope, schedule, and cost, ensuring the best possible project outcome,” said Washington.

While stipends may be used in PDB to encourage competitive participation, they are not exclusive to this method and can also be a part of best-value design-build.

Ensuring Proper Understanding of Design-Build

As the construction industry continues to embrace design-build, it’s essential that discussions about alternative delivery methods are based on an accurate understanding of how this process works. Misconceptions about design-build risk can create unnecessary barriers to its adoption, preventing the delivery of cost-effective, high-quality infrastructure projects.

“Discussions about alternative delivery must be grounded in a complete and accurate understanding of how design-build truly operates,” Washington emphasized.

Design-build, whether using a best-value approach or progressive design-build, is a unified and flexible method that empowers owners with greater control, fosters collaboration, and ultimately delivers superior project outcomes. By addressing these misconceptions, the construction industry can continue to capitalize on the benefits of design-build and transform how projects are delivered.

Originally reported by Lisa Washington in Construction Dive.