The vast majority of construction projects — especially for relatively small and simple ones — use one of two project delivery methods: design-build and design-bid-build. Both of these methods have been in existence for more than a century and are widely used by both private and public project owners. We’ll go over some of the major differences between these two project delivery methods in this blog as well as a few notable advantages of each type.
The general structure of the design-build project delivery method is this: the project owner or developer contracts with a single entity (design-builder) that is responsible for both the design and construction of the project. Once hired, the design-builder gathers subcontractors, consultants, and perhaps other contractors to execute the project. Especially savvy project owners might choose to form an LLC or other entity to bring a number of firms together for one project.
Why might project owners choose the design-build project delivery method? There could be several reasons:
- Design-build generally allows for a more time-efficient project.
- Design-build makes it easier for project owners to develop a budget.
- There is better communication between the designers and construction team.
Design-bid-build involves three main entities: the project owner or manager, design team, and prime contractor. The project owner contracts with a designer to create plans and specifications for the project. After the designer has completed that milestone, the project owner then solicits bids from a prime contractor to construct the project based on the designer’s plans. The prime contractor then hires subcontractors and other professionals to complete the project.
Design-bid-build has its advantages over design-build. Several are:
- Design-bid-build may ultimately save the project owner or developer money by encouraging a competitive bidding process by prime contractors.
- Design-bid-build has been the accepted method for owners and contractors for decades; as a result, you might have a larger pool of prime contractors to choose from as the project owner.
- Design-bid-build generally requires more involvement from project owners, which some prefer. However, owners can always hire a project manager or liaison from which he or she can receive only the most important information and updates from a project.
Design-build and design-bid-build are two of the most common project delivery methods used by construction professionals around the world. To figure out which one is right for your upcoming project, it is essential to carefully consider what’s most important to you: are you on strict instructions to not go over a certain dollar amount? Or, would you rather have the structure up as soon as humanly possible? Keep in mind that many other project delivery methods exist.
What do they all have in common? Florida Construction Law Group has represented clients involved in each method at one point or another. Going through a construction dispute or wanting to lower the chances of one in the future? Give us a call at 305-227-4030 to see how we can help.