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All You Need to Know About Design Build Delivery Method

Last Updated on Jan 08, 2024, 05:00 AM IST
All You Need to Know About Design Build Delivery Method

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Design Build method or DB method is a popular project delivery method in the construction industry. It involves a single contract for both the design and construction services. Design build services can replace the traditional project delivery method where a project owner has to sign a separate contract each for design and construction.

 

A single contract gives the owner a single point of responsibility, thereby transferring the risks to the design build contractor. Due to its various advantages, design build construction delivery method is extensively used around the world, especially in Europe.

 

This blog explains everything you need to know about Design Build delivery method.

 

What is Design-Build Contract?

A Design-Build contract is a single-point responsibility construction project delivery method where a single general contractor is responsible for both the design and construction of a project. The whole design build process needs the contractor to complete the project from conception to completion.

 

DB Contract Structure

 

The owner generally selects the contractors based on their qualifications, expertise, and experience. A single point of responsibility makes the whole design build project streamlined and progress as planned. It also allows different subcontractors to collaborate together under a single contractor. This eliminates potential disputes between separate parties responsible for design, construction, and management. 

 

Understanding the Design-Build Process

Initial Planning

The initial planning phase is the first step when the owner and the Design-Build contractor work together to define the project scope, figure out the requirements, and estimate the budget for the project. Sometimes the contractor provides inputs on the feasibility study of the project and cost-saving measures. They also discuss the design or construction issues that may arise in the course of the project.

 

Design Phase

Once the project scopes are defined, the contractor may consult the in-house design team or hire a design consultant to develop the project design. The design team works closely with the owner to understand the specific needs and preferences and prepare the design accordingly.

 

Approvals & Permissions

After the completion of the design phase, the contractor sets out to obtain all the necessary permits and approvals from concerned regulatory agencies.

 

Construction Phase

During the Construction phase, the contractor allocates various works to respective teams. The contractor may hire various professional subcontractors for this purpose besides providing all construction materials and labor. 

 

The contractor may hire a construction manager or project manager to coordinate with all the subcontractors or suppliers and ensure construction progresses as per the plan and schedule.

 

Project Handover

Once construction is complete, the contractor conducts a final inspection of the project to ensure that all work has been completed to the owner's satisfaction. They also ensure that any necessary documentation, such as warranties or operation manuals, is provided to the owner. Finally, the owner approves the project and makes the payment to the contractor as per the design build contract.

 

Design build project delivery method advantages

There are several advantages to using the Design-Build project delivery method including.

 

Single point of responsibility

In design build projects, the owner has a single point of responsibility for the entire project. This helps in minimizing conflicts and reducing the risks of miscommunication. As a single entity coordinates and oversees the design and construction parties, the control and progress over the project remains solid.

 

Faster project delivery

DB projects have a faster project delivery pace than traditional design-bid-build projects. The design and construction teams can work together to reduce project timelines and get the project to commission faster.

 

Cost savings

The design build team can plan to lower the project cost right from the design process. Since the same contractor is involved in the construction phase, he can implement the design rightly to save. This also eliminates frequent change orders.

 

Better quality control

With a single entity responsible for the entire project, there is a higher level of accountability and quality control. The contractor first ensures to have a design of the project as per the specifications outlined by the owner and then implements the design to meet the desired outcomes.

 

Collaborative approach

The design build method enables the owner, the design team, and the construction team to come together to find the best and most cost-effective solution for the project. Before beginning the project, everyone is aware of the common goals.

 

Design build project delivery method disadvantages

While the method has many advantages when compared to the traditional DBB project delivery method, there are also disadvantages which are discussed below.

 

Conflicts of interest

Sometimes the contractor may prioritize cost savings over quality. Similarly, the contractor may prepare designs that lower his construction process rather than benefit the overall project.

 

Reliance on a single entity

While a single point of responsibility has the advantage of faster and better project delivery, it can also make the owner vulnerable. Once the construction phase starts, the owner has little to no control over the project. If the contractor fails to complete the project or goes out of business, the owner has limited options to find a new contractor to finish the remaining work.

 

Less transparency in the process

As the contractor is responsible for both the design and construction phases of the project, it can be a disadvantage for owners who want to have a more hands-on approach to the project.

 

How do project owners select the design build contractor?

Design-Build method has both risks and rewards. It makes a single party responsible and accountable for everything. On the other hand, it also makes the owner vulnerable by depending upon only one entity to plan, design and build the entire project. 

 

Therefore, it is essential to choose the right construction firm to act as the design build contractor. There are two popular methods of selecting the right contractor for the design build project.

Qualification-based selection

  • The contractor is evaluated by qualitative and quantitative criteria
  • The evaluation criteria is clearly defined before the bid selection
  • The qualifications of the contractor and key team members are critical for selection.
  • Past successful projects also play a role in selecting the contractor

 

Best value selection

  • The owner specifies defined criteria to get price and technical proposals
  • A mix of price and technical concepts is considered apt for the selection
  • Encourages open exchange of concepts, probable concerns, and ideas
  • Conducts meetings with potential candidates before the submission of technical and price proposals

 

Difference between Design-Build Contracts and EPC Contracts

Aspect

Design-Build Contracts

EPC Contracts

Scope of Work

The contractor is responsible for both the design and construction of the project.

In the EPC contract, the EPC company/construction company is responsible for the Engineering, Procurement, and Construction of the project.

Contract Type

A single contract binds the design and construction of the project.

EPC contract is a series of separate contracts for different phases of the construction process.

Responsibility

The owner gets involved in the design phase as well as works with the contractor to develop the project scope.

The contractor is completely responsible for handing over the facility in functional condition.

Risk Allocation

The owner assumes some risks during both the design and construction phases.

The contractor assumes all the risks until the project is handed over to the owner.

Control of Owner

The owner has control over the design and occasionally controls the construction phase as well.

It is less flexible and changes can be more difficult to accommodate due to the fixed nature of the technical specifications.

Application

Design Build contract is suitable for civil infrastructure projects like roads and bridges as well as commercial construction buildings like malls.

EPC contract is suitable for projects that require a lot of engineering and technical specifications such as power plants, and wind and solar project facilities.

Costs

The owner can avoid cost overruns the cost by employing cost-saving designs and construction methods.

Having to take care of various technical specifications increases the cost of the project.

 

Key Takeaways

  • The DB project delivery method is suitable for projects when the owner wants to have less risk yet control over the project. 
  • A single contract governs the design and construction phase.
  • DB contract makes the design builder responsible and accountable for the whole project.
  • This method is applicable for commercial construction projects such as malls and hotels as well community infrastructure projects like schools buildings and hospitals.

 

Are you a design consultant, architect, or civil engineer looking for construction projects to enhance your business? 

Subscribe to our Global Project and Tender Tracker to find projects in your preferred locations in sectors like construction, infrastructure, oil & gas, EV, solar, and wind. Also, get verified contact details to reach out to the stakeholders directly. 

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