Design Build Here to Stay?

October 2004
The Oklahoma Marketer

Design-Build is a project delivery method in which the owner acquires both design and construction services under the same contract from a single legal entity, referred to as the Design-Builder, without the bid component of the traditional design-bid-build process. A Design-Build team is comprised of both design professionals and construction experts, who continue their traditional roles, while working side-by-side throughout the life of the project. The general contractor and major sub-contractors offer input during the design process to ensure ease of construction, availability of materials and budgetary compliance. The design architects and engineers remain involved throughout the construction phase to ensure that the design intent is met and to help resolve any design issues in a timely manner. The Design-Build process is nothing new to the construction industry. It has been around since the building of the pyramids. However, the current format began resurgence in 1990 and has become a primary delivery system for many projects today.

The Design-Build delivery system was quickly embraced due to several factors. The traditional design-bid-build process was failing due to constant disputes between the architects, engineers and contractors. The Design-Build process enabled schedules to be accelerated; it offered built-in value engineering through collaboration between the designers and the contractors; and simplified the communications between the owner and the project team. As a result, Department of Defense contracts for the Design-Build delivery system have increased from 5% to 34% of total construction awards in the last 15 years. Design-Build projects as a percentage of total commercial contracts have increased every year since 1990 with the percentage reaching an estimated 50% in 2003.

There is little doubt that the Design-Build process has been successful, however, no delivery system is perfect. Quality designers and quality contractors will deliver a quality project to an owner regardless of the process that is utilized. The main ingredient to success is clear communication between the owner and all members of the delivery team. The most common downfall in the Design-Build process is a poorly developed scope of work. This often leads to unrealistic expectations by the owner or misconceptions with regard to the requirements or level of quality by the Design-Build team. As long as the owner has the expertise to convey a clear understanding of his/her needs and goals the chances for success are greatly enhanced. If too many decisions are left to the interpretation of the Design-Build team, the end product can be a source of disappointment and frustration for the owner.

Many factors indicate Design-Build is here to stay, especially for the near future. Most state and federal agencies are experiencing budget cuts which relate to a shortage in manpower. With fewer and fewer qualified administrative personnel available, any way to simplify or shorten the contracting and delivery system will be utilized. Both the Department of Defense and GSA have estimated that the Design-Build delivery system will be responsible for more than 50% of their projects over the next 5 years. The economy has also brought the private sector into the Design-Build model. Executives are anxious to find methods to reduce the amount of administrative time associated with construction projects and are extremely receptive to the early identification of construction budgets afforded by the Design-Build delivery system.

The Design-Build process is also being incorporated into the privatization process that is increasing in popularity within a variety of state and federal agencies. Privatization is an alternate delivery method that is utilized to increase efficiency and quality through a contract with a single provider to not only design and build a facility but also finance, own and operate the project. This relationship can be either permanent or specified for a particular time period. Privatization within the federal government has increased by 60% over the past 5 years and is projected to continue in popularity for the next decade.

New delivery systems are constantly evolving. Many outside factors will have an influence on the preferred method; however, the Design-Build approach appears to be the current system of choice and has shown no signs of slowing in popularity. Love it or hate it, it is here to stay.

Patrick J. Carroll, AIA
President and CEO