Design-Build Vs. Design-Bid-Build

What is Design-Build?

Design-Build (DB) is a project delivery method where the owner signs a single contract with one entity (a team that includes both designers and builders) to handle both the design and construction of a project. In other words, one integrated team takes a project from the initial concept all the way through construction completion. This unified approach fosters collaboration from day one and has been shown to save time and money compared to more traditional methods​. The design-build team works together with the owner through every step, streamlining the construction process and often delivering projects faster and with fewer headaches.

Advantages of Design-Build

Design-build offers several key advantages for owners and project stakeholders:

• Faster Completion: With design and construction overlapping, projects can start sooner and finish quicker. The contractor is involved in the design phase, which allows for fast-track scheduling. 

• Single Point of Contact: The owner manages one contract with a unified design-build team, simplifying communication. Having one accountable entity eliminates the back-and-forth between separate designer and contractor contracts.

• Cost Savings & Fewer Change Orders: Early contractor involvement means potential issues are caught and addressed in the design phase. This leads to fewer change orders during construction and more predictable costs. Value engineering is integrated, often reducing waste and optimizing the budget.

• Improved Communication: Architects, engineers, and builders work as one team, so collaboration is seamless. Design intent and construction means-and-methods are aligned from the start, greatly reducing misunderstandings and eliminating Scope Gap issues.

• Collaborative Problem Solving: Because everyone is on the same team, challenges that arise are resolved cooperatively rather than adversarially. This team alignment often results in creative solutions that keep the project on track.

Potential Challenges of Design-Build

While design-build has many benefits, owners should be aware of a few challenges:

• Requires Owner Trust and Involvement: Design-build requires a trusting partnership between the owner and the design-build contractor. Open communication is key. The owner needs to be comfortable with a more streamlined process and engage collaboratively. If the owner is not familiar with this method, they must be willing to rely on the expertise of the integrated team.

What is Design-Bid-Build?

Design-Bid-Build (DBB) is the traditional project delivery method in which the project is handled in three distinct phases: design, then bidding, then construction. First, an owner hires an architect or design firm to create a full set of plans and specifications. Once the design is complete, the project is put out to bid for General contractors. GC’s submit competitive bids (prices) based on the completed design, and the owner awards a separate construction contract to the chosen bidder. Finally, the selected GC builds the project according to the design. In summary, the owner has two separate contracts – one with the designer and one with the builder – and acts as the go-between to coordinate the two. This method provides a clear separation of roles but also creates a more linear, step-by-step process.

Advantages of Design-Bid-Build

Many owners are familiar with design-bid-build and appreciate some of its advantages:

• Clear Role Separation: The designer (architect/engineer) and the contractor have distinct responsibilities. The architect completes the design independently. Meanwhile, the contractor’s job is solely to build according to the plans. This separation can provide checks and balances, as the design firm can oversee the contractor’s work for compliance with the design intent.

• Competitive Bidding: Because the construction phase is competitively bid, the owner can solicit multiple bids from general contractors and potentially get a lower initial construction price. The bidding process can drive contractors to propose their most cost-effective price to win the job, theoretically giving the owner a good deal (at least on the upfront bid).

• Familiar Process: Design-Bid-Build is well-understood in the industry and often required for public projects. Many contractors and designers are accustomed to this method. For owners, especially in government agencies, the DBB approach may be mandated by procurement regulations or simply be the comfortable, known route to take.

Common Drawbacks of Design-Bid-Build

Despite its longstanding use, design-bid-build comes with several drawbacks that can impact project outcomes:

• Longer Timeline: “Bid-build” is inherently a sequential process. The project cannot go to construction until the design phase is 100% finished and then the bidding process is complete. This linear progression means projects typically take longer from start to finish. There is little opportunity to fast-track or overlap phases, so if speed is a priority, DBB can be limiting. Time = $$$

• Higher Risk of Change Orders: Because the contractor is not involved during design, there’s a greater chance that some aspects of the design may be impractical, over budget, or unclear once construction begins. When the builder finally enters the picture, surprises or conflicts can lead to change orders (which often increase costs and cause delays). In a DBB scenario, change orders are common as the construction team uncovers issues that weren’t anticipated in the isolated design phase.

• Fragmented Responsibility: If something goes wrong, the separation of contracts can lead to finger-pointing. The contractor might blame a design flaw, while the architect blames how the contractor executed the plans. The owner is caught in the middle to sort out responsibility. This fragmented responsibility means more risk falls on the owner to mediate and manage conflicts between the parties.

• Potential Cost Overruns: Although competitive bidding can lower the initial price, the lowest bid is not always the final price.The lowest bid could be a result of "Scope Gap" which is a result of the drawings lacking consistency or clarity. That lack of clarity is basis for a change order. The absence of contractor input during design can mean the project was not optimized for cost. Budget issues might only surface after construction starts. If the lowest bidder missed something or underbid to win the job, they may seek to recoup costs via change orders. In the end, a design-bid-build project can actually end up costing more than expected.

• Communication Gaps: With the architect and contractor working separately, communication is less fluid. Important details can slip through the cracks when transitioning from design to construction. The owner must facilitate communication between two independent entities. Any miscommunication or delay in relaying information can slow the project down or result in errors.

Industry Trends & Why Design-Build is Gaining Popularity

In recent years, the construction industry has seen a clear shift toward design-build delivery. Owners in both the public and private sectors are increasingly favoring the design-build approach over the traditional design-bid-build model. Why the change? In short, design-build has a track record of delivering projects faster and with fewer cost surprises, which is extremely attractive in today’s fast-paced and budget-conscious environment.

Industry statistics underscore this trend. According to a 2023 study, analysts project that design-build will account for 47% of all construction spending by 2026​ dbia.org. That’s nearly half of all construction dollars being spent through the design-build method in the very near future. This rapid growth in adoption speaks to owners’ increasing confidence in the design-build process. At the same time, usage of the traditional design-bid-build approach is expected to decrease, as the industry shifts toward more collaborative methods​. In other words, more owners are moving away from the old way of doing things in favor of a more integrated approach. dbia.org

Why are so many owners pivoting to design-build? The reasons often boil down to speed, cost, and risk. Design-build has proven to deliver projects faster than design-bid-build. For example, one major industry study found that design-build projects were completed over 100% faster (more than twice as fast from start to finish) than comparable design-bid-build projects​ ,dbia.org. When you can build a facility in months less time, that’s a huge advantage – you can start using a building sooner or open your business earlier, which can translate to significant financial benefits.

Cost is another driving factor. That same study showed design-build projects tend to have lower cost growth (fewer budget increases) than design-bid-build​

dbia.org

. With an integrated team, the budget is managed continuously, and surprises are minimized. Owners are understandably drawn to a delivery method that is more likely to stay on budget and avoid the dreaded cost overruns we often see with the change orders in design-bid-build jobs.

Additionally, the collaborative nature of design-build is ideal for tackling modern construction challenges. In an age where projects are increasingly complex and schedules are tight, having all players at the table from day one helps navigate issues like labor shortages, supply chain delays, or technical complexities. The flexibility of the design-build approach allows teams to adapt and keep projects on track even when unexpected challenges arise​. Owners have taken notice that design-build can better manage uncertainty and deliver consistent results, which is a big reason this method is growing so rapidly in popularity. dbia.org

Side-by-Side Comparison: Design-Build vs. Design-Bid-Build

To summarize the differences between these two project delivery methods, here’s a side-by-side comparison across key factors:

Factor	Design-Build (Integrated Team)	Design-Bid-Build (Traditional Separate Contracts)
Contract Structure	Single contract – One contract covers both design and construction, uniting the entire team. The design-builder is accountable for everything.	Two contracts – Separate contracts for design and construction. The owner manages both an architect and a contractor independently.
Speed of Delivery	Faster completion – Design and construction phases overlap. Work can begin on-site before every detail is designed, dramatically shortening the overall timeline.	Slower completion – Phases are sequential. Construction can only start after design is finished and bidding is done, extending the project duration.
Cost Control	Integrated cost management – Early collaboration helps align the design with the budget. Fewer change orders mean the initial price is more likely to be the final price.	Competitive bid pricing – Contractors bid for the lowest price, but changes and unforeseen issues during construction often lead to added costs beyond the bid. Final costs can be higher than anticipated.
Communication	Unified team communication – Designers and builders coordinate continuously. Real-time problem solving and transparency reduce miscommunication. The owner receives consistent updates from one team.	Fragmented communication – The designer and contractor work separately. The owner must relay information between them. Miscommunications or delays in information sharing can occur more easily.
Risk & Accountability	Single point accountability – The design-build firm assumes the risk for both design and construction. If something isn’t right, there’s no ambiguity about who is responsible – the design-builder is accountable for delivering the project as agreed.	Divided accountability – Responsibility is split. Design errors fall on the architect and construction issues fall on the contractor, but in reality problems often involve both. The owner may end up mediating disputes, effectively bearing more risk.
Flexibility to Changes	High flexibility – Changes or refinements can be made during the project with less disruption. Since the same team is handling everything, they can adapt the design or plan on the fly (with owner approval) to accommodate new ideas or conditions.	Low flexibility – Once the project is bid and the contract is signed, making changes is difficult and expensive. Alterations usually require formal change orders, renegotiation, and can significantly delay the project.
Owner Involvement & Control	Collaborative input – The owner is involved as a key decision-maker throughout, but entrusts a lot of the process to the design-build team’s expertise. You still provide input and approvals, but you rely on a capable team to drive the project forward efficiently.	High control during design – The owner has direct control over the design details by working closely with the architect before bidding. However, once construction starts, the owner’s role shifts to contract administrator, and changes are constrained by the contract.

As the comparison shows, design-build vs. design-bid-build is essentially a choice between an integrated, collaborative process and a linear, segmented process. Design-build tends to shine in speed, flexibility, and single-point accountability, whereas design-bid-build offers more upfront design control and a familiar bidding process. Next, we’ll look at why JB STEEL® is especially well-equipped to deliver the benefits of design-build for your project.

Why JB STEEL® Excels at Design-Build

Not all design-build contractors are created equal. JB STEEL® has spent decades refining the design-build approach to provide exceptional results for our clients. Here’s why JB STEEL leads the pack when it comes to design-build project delivery:

• Self-Performing Key Trades: JB steel self performs critical-path trades such civil, concrete, steel fabrication and installation, Pre-engineered metal buildings and general construction work. By handling these key components in-house, we maintain greater control over quality and critical path scheduling. This means fewer subcontractor delays and a streamlined construction process from the ground up. 

• Decades of Experience & Award-Winning Expertise: With over 60 years of industry experience, JB STEEL® is a seasoned veteran in commercial and industrial construction. We are an award-winning contractor with a proven track record. Our long history means we’ve seen it all and developed best-in-class practices to deliver successful projects. When you work with JB STEEL®, you’re tapping into a wealth of knowledge and expertise built over six decades.

• Transparent Pricing – No Hidden Costs: We believe in honest, upfront pricing. Our design-build team works closely with owners during the planning phase to develop accurate cost estimates. Thanks to our in-house design-build capabilities, we can foresee project costs more clearly and minimize surprises. The price we agree on is the price we stick to – without hidden fees.

• Faster Project Delivery: Time is money, and our process is optimized to deliver projects on a fast track. JB STEEL’s® integrated team and self-performance model eliminate many inefficiencies, allowing us to complete projects faster than competitors who rely purely on design-bid-build. We coordinate design and construction in parallel whenever possible, accelerating schedules. Our clients often enjoy earlier occupancy and completion dates as a result.

• Strong Client Communication & Alignment: At JB STEEL®, we prioritize client communication and alignment at every step. From day one, we make sure we fully understand your vision, goals, and requirements. Throughout the project, we keep you informed with regular updates and involve you in key decisions. Our collaborative approach ensures the final result aligns with your expectations. We see ourselves as a partner in achieving your project’s success, and that means listening to your needs and delivering on our promises.

In short, JB STEEL® combines the best aspects of design-build – integration, speed, and efficiency – with a commitment to quality, transparency, and client satisfaction. Our ability to both design and self-construct major elements of a project under one roof is a unique strength that sets us apart from typical contractors. When you choose JB STEEL as your design-build contractor, you’re choosing a team that is fully equipped to make your project a smooth and successful experience from start to finish.

Choosing the Right Method for Your Project

Every project is unique. The decision between design-build and design-bid-build should consider your specific project goals, complexity, timeline, and budget constraints. Both methods can be effective in the right situation, so how do you choose? Here are some guidelines to help determine which delivery method might be the better fit:

When to Choose Design-Build

Consider the Design-Build route if your project has one or more of the following characteristics:

• Tight Timeline or Need for Speed: If getting your facility completed and operational quickly is a top priority, design-build is likely your best choice. The ability to overlap design and construction can shave significant time off the schedule.

• Desire for Single-Source Accountability: If you prefer having “one throat to choke (or one hand to shake),” design-build provides one point of contact responsible for the entire project. This is ideal if you want to minimize your role in coordinating between designers and builders and avoid playing referee if issues arise.

• Project Complexity Requiring Collaboration: For complex, innovative, or technically challenging projects, the close collaboration of design-build can lead to better outcomes. When architecture, engineering, and construction minds work together from inception, they can solve complex problems more effectively. Design-build is well suited for projects that might otherwise see a lot of change orders or design revisions, because the team can adapt in real time.

• Budget Clarity and Cost Control: If it’s important to have a firm grip on budget early on, design-build’s integrated approach helps. The contractor’s input during design means the project is being continuously value-engineered to stay on budget. Owners who need cost certainty often appreciate this aspect of design-build.

• Less Bureaucratic Procurement: For private sector owners (or public owners with design-build authorization), if you want to avoid the lengthy procurement and multiple contracting steps of DBB, choosing a qualified design-build firm directly can simplify the process. This can reduce administrative burden and get your project moving faster.

When Design-Bid-Build Might Be Better

There are scenarios where Design-Bid-Build could be the more appropriate choice for an owner:

• You Want a Hands-On Role in Design: If you have a very specific vision and want to work extensively with an independent architect to polish every detail before involving a contractor, DBB gives you that control. You might prefer to complete the design without contractor influence, especially for projects where aesthetics or unique design elements are paramount.

• Competitive Bidding is Required or Desired: In some cases, particularly public projects or organizations with strict procurement rules, you may be required to solicit competitive bids. If getting multiple price bids and awarding to the lowest responsible bidder is a must (for example, by law or policy), then the traditional DBB process is the way to go. Likewise, if you simply feel more comfortable seeing several bid numbers to ensure you’re getting a fair price, DBB provides that opportunity.

• Project Has a Flexible Timeline: If speed is not a concern and you have the luxury of time, the longer duration of a design-bid-build approach might not be a drawback for you. Perhaps your project is scheduled far in advance or you want to phase it very deliberately – in such cases, the sequential nature of DBB can be acceptable.

• Established Design Completed: Maybe you already have a complete design (from a previous phase or another firm) and just need a builder to execute it. Or the project is a straightforward build where the risk of surprises is low. In these instances, bidding it out could yield a good result since the design is settled and well-understood.

• Simplicity of Small Projects: For relatively small or simple projects, the advantages of design-build (speed, integration) might not be as critical. A straightforward design-bid-build could work fine if the project scope is limited and easily defined from the start.

In the end, it’s about aligning the delivery method with your project’s needs. Some very detail-sensitive clients or projects might lean toward the traditional route, whereas most modern, fast-paced projects benefit from integration. If you’re unsure, it can be helpful to discuss your project with a construction professional who has experience in both methods.

Conclusion & Call-to-Action

In the Design-Build vs. Design-Bid-Build debate, it’s clear that design-build has emerged as the preferred approach for many modern construction projects. While both methods have their place, design-build’s advantages in speed, efficiency, and single-source accountability make it a compelling choice for owners looking to save time, reduce risk, and get the most value out of their budget. By fostering collaboration and innovation, design-build is truly a better way to build for a large portion of projects today.

JB STEEL® has embraced and perfected the design-build methodology, allowing our clients to reap those benefits. We combine the convenience of one-stop design and construction with our company’s renowned quality and dedication to client satisfaction. The result is a delivery process that not only checks all the boxes for speed, cost control, and flexibility, but also delivers a superior client experience.

Ready to explore design-build for your next project? We invite you to reach out to JB STEEL for a personalized consultation or project evaluation. Let our expert team assess your needs and show you how our design-build approach can turn your vision into reality, faster and more effectively. Contact JB STEEL® today to discuss your project, and let’s build something great together.