What is design-bid-build?
Design-bid-build is the traditional delivery method. It runs in three steps, one after another:
- The owner hires an architect or engineer to complete the design.
- The finished construction documents go out to bid.
- The owner awards a separate construction contract, often to the lowest responsive, responsible bidder.
The owner holds two contracts and sits between the designer and the builder. Many public owners favor it because competitive bidding on a complete design is transparent and easy to defend.
What is design-build?
In design-build, the owner signs one contract with a design-builder: a single entity responsible for both design and construction. The design-builder may be a contractor with in-house or partner designers, a design firm that builds, or a joint venture.
Because the builder is on the team from the start, early packages such as site work and foundations can begin while later parts of the design are still being finished. Owners usually select a design-builder on qualifications and best value rather than on price alone.
In progressive design-build, the owner selects the team first and sets the price once the design is far enough along. Our construction lead glossary defines these and other delivery terms.
Design-build vs. design-bid-build: key differences
| Factor | Design-build | Design-bid-build |
|---|---|---|
| Contracts with the owner | One, with the design-builder | Two: designer and contractor |
| When the builder joins | At the start, during design | After the design is complete |
| How the builder is chosen | Usually qualifications and best value | Usually the lowest qualified bid |
| Schedule | Design and construction can overlap | Phases run one after another |
| When the price is set | Early on a partial design, or during design in progressive design-build | At bid, on a complete design |
| Owner control of design | Shared with the design-builder | Direct, through the architect |
| Single point of responsibility | Yes, the design-builder | No, designer and contractor answer separately |
| When trades and suppliers get involved | Often during design | At bid |
| Often chosen for | Complex or schedule-driven projects | Well-defined projects where price competition matters most |
Neither method wins every time. The right choice depends on how well the owner can define the project, how much design control they want, and how fast they need it.
What does delivery method mean for your sales?
The delivery method tells you who makes decisions and when. That decides who you should call, and how early.
| Your role | On design-bid-build | On design-build |
|---|---|---|
| General contractors | Compete on price once the documents are complete | Team with designers and compete on qualifications, earlier |
| Subcontractors | Bid finished drawings to the general contractors | Join during design through design-assist or design-build subcontracts |
| Building product manufacturers | Reach the architect before the spec is written | Reach both the designer and the design-builder during design |
| Distributors and suppliers | Price the spec at bid | Help the team with pricing and lead times during design |
In both methods, the advantage goes to whoever is in the conversation before decisions are made. Our guide on how to find construction projects before they go to bid covers the sources. Manufacturers should also read how to get your product specified, and general contractors and subcontractors our contractor leads guide.
Is design-build faster than design-bid-build?
Yes, on average. In design-bid-build, construction cannot start until the design is complete and the contract is awarded. Design-build removes that wait and lets the phases overlap.
A key benchmark is a 2018 study by Keith Molenaar (University of Colorado Boulder) and Bryan Franz (University of Florida), supported by the Construction Industry Institute (CII) and the Charles Pankow Foundation. It compared 212 U.S. building projects completed over the previous ten years.
The authors also found that, apart from delivery speed, the performance gap between delivery methods has narrowed since CII’s original 1998 comparison.
Does design-build cost more?
Not on average, according to the same study. Design-build projects had a unit cost 0.3% lower than design-bid-build projects, 3.8% less cost growth from the start of design to completion, and 1.7% less schedule growth.
What changes is when and how the price is set. In design-bid-build, the owner gets a bid on a complete design. In design-build, the price is set earlier on a partial design, or built up with the team in progressive design-build, so owners rely on the design-builder’s estimating and the contract terms for cost control.
What is design-build’s market share?
Design-build is the largest single delivery method by spending in the U.S. construction segments studied for the Design-Build Institute of America (DBIA). FMI’s Design-Build Utilization Study, published in January 2025, covers 13 nonresidential segments, from manufacturing and highways to schools, offices, and health care.
| Delivery method | Share of spending, 2019 to 2023 | Forecast share, 2024 to 2028 |
|---|---|---|
| Design-build | 44% | 47% |
| Other alternative methods (CM/GC, CMAR, EPC, IPD) | 37% | 42% |
| Design-bid-build | 19% | 11% |
Shares are FMI’s estimates of construction put in place in the 13 segments it assessed. Residential construction is not included.
- $2.6 trillion: forecast design-build spending in the assessed segments from 2024 to 2028, out of $5.5 trillion in total for those segments.
- 2.9% a year: forecast growth in annual design-build spending, from an estimated $477.5 billion in 2024 to $535.9 billion in 2028.
- Largest sectors: manufacturing (21%), highway and street (16%), and educational (12%) of forecast design-build spending for 2024 to 2028.
- Largest regions: the South Atlantic, West South Central, and Pacific census divisions, with Texas, California, and Florida accounting for nearly 30% of forecast design-build spending.
Education is one of the largest design-build sectors; our guide to school construction leads shows how to find those projects early. To see which commercial projects are in planning and design in your territory, Start your free test drive: 3 days or 5 projects, whichever comes first, no credit card required.
Why is design-build gaining share?
Interviewees in FMI’s research said design-build works best on complex projects and projects with critical schedules, where overlapping design and construction saves the most time. They also pointed to risk sharing and early collaboration between owner, designer, and builder.
Collaboration tools help. In the same study, 53% of survey respondents said they use building information modeling (BIM) on 60% or more of their design-build projects, mainly for trade coordination and clash detection.
The study also lists the barriers: owners who are new to the method, scope that is still uncertain, a perceived loss of design control, and state laws that limit some forms of design-build.
Progressive design-build was reported most often on water and wastewater, education, and public safety projects, and most in the Pacific region. For the wider market picture, see our report on construction industry trends.
What about CMAR and other delivery methods?
Design-build and design-bid-build are not the only options. The other alternative methods in FMI’s figures include:
- Construction manager at risk (CMAR or CM/GC): the owner hires a designer and, separately, a construction manager who joins during design and later commits to a guaranteed maximum price.
- Engineering, procurement, and construction (EPC): one firm engineers, buys, and builds, most often on industrial and energy work.
- Integrated project delivery (IPD): the owner, designer, and builder sign one multi-party agreement and share risk and reward.
Like design-build, CMAR brings the builder in during design, so the same early-access approach applies.
Frequently asked questions
What is the difference between design-build and design-bid-build?
In design-bid-build, the owner hires a designer, completes the design, then bids it to contractors under a separate contract, so the phases run in sequence. In design-build, one design-builder handles both design and construction under a single contract, the builder joins during design, and the phases can overlap. Design-build is usually faster; design-bid-build gives the owner more direct design control.
What is design-build?
Design-build is a project delivery method in which the owner signs one contract with a design-builder that is responsible for both design and construction. Because the builder is involved from the start, early construction can begin while the design is being finished. Owners usually select design-builders on qualifications and best value rather than lowest price.
What are the pros and cons of design-build vs. design-bid-build?
Design-build offers speed, one point of responsibility, and early builder input, but the owner gives up some direct control of the design and sets the price on a less complete design. Design-bid-build offers full design control and a price on complete documents, but takes longer and leaves the owner between designer and contractor when problems arise.
How long do design-build projects take compared with design-bid-build?
In a 2018 study of 212 U.S. building projects for CII and the Charles Pankow Foundation, design-build projects were delivered 102% faster than design-bid-build, measured as square feet completed per month from the start of design to completion. During construction alone, design-build was 36% faster. Results on any single project depend on scope and team.
Is there a cost premium for design-build?
Not on average, according to the 2018 CII and Pankow Foundation study of 212 U.S. building projects. Design-build had a unit cost 0.3% lower than design-bid-build and 3.8% less cost growth. The difference is timing: design-build prices are set earlier, on a less complete design, so contract terms and the team’s estimating matter more.
What percentage of U.S. construction is design-build?
FMI’s January 2025 study for the Design-Build Institute of America estimates design-build at 44% of spending in 13 nonresidential segments for 2019 to 2023 and forecasts 47% for 2024 to 2028, or about $2.6 trillion. Residential construction is not included, so the share of all U.S. construction is lower.
Sources
- FMI for the Design-Build Institute of America, Design-Build Utilization Study: Key Findings Report (January 2025; market figures cover 2019 to 2023 estimates and 2024 to 2028 forecasts)
- Keith Molenaar and Bryan Franz, Revisiting Project Delivery Performance: Final Report, Construction Industry Institute and Charles Pankow Foundation (December 31, 2018; 212 projects completed in the prior ten years)
- Design-Build Institute of America, New Research Shows Design-Build Continues to Deliver Project Most Efficiently (undated summary of the 2018 study)
