Design-Build vs Design-Bid-Build: Complete Contractor Guide 2025

Introduction

Project delivery method significantly impacts how contractors compete for and execute work. The two primary methods—Design-Bid-Build (DBB) and Design-Build (DB)—require different capabilities, risk profiles, and bidding strategies.

Government agencies increasingly use design-build for appropriate projects, creating new opportunities for contractors who can offer integrated services. Understanding both methods helps you position your company for success across the full range of opportunities.

Key Differences at a Glance

Aspect	Design-Bid-Build	Design-Build
Contracts	Separate design & build	Single contract
Design Complete	Before bidding	During project
Selection	Usually low bid	Often best value

Design-Bid-Build (DBB)

Design-Bid-Build is the traditional project delivery method where design is completed before construction bidding begins.

How DBB Works

Phase 1: Design

Owner contracts with architect/engineer
Complete design documents developed
Specifications and drawings finalized
Owner approves final design

Phase 2: Bid

Owner advertises for bids
Contractors receive complete documents
Submit competitive bids
Usually lowest responsible bidder wins

Phase 3: Build

Contractor constructs per documents
A/E provides construction administration
Change orders for design issues
Owner manages A/E and contractor separately

DBB Advantages

Price certainty: Complete design enables accurate pricing
Clear scope: Defined documents reduce ambiguity
Competitive pricing: Multiple bidders on identical scope
Contractor focus: Build expertise, not design
Public transparency: Open competitive bidding

DBB Challenges

Longer schedule: Sequential design then construction
Change order risk: Design conflicts discovered during construction
Adversarial potential: Designer and builder as separate parties
Limited innovation: Build to spec, not optimize

Design-Build (DB)

Design-Build combines design and construction under a single contract, with one entity responsible for both.

How DB Works

Selection Phase

Owner develops performance criteria/bridging documents
DB teams submit qualifications and/or proposals
Selection based on best value (qualifications, approach, price)
May include two-step: shortlist then proposals

Design-Build Phase

DB team completes design
Construction begins during design (fast-track)
Single point of responsibility
Integrated team coordination

DB Team Structures

Structure	Lead	Best For
Contractor-Led	GC with A/E partner	Construction-heavy projects
Designer-Led	A/E with contractor partner	Design-heavy projects
Joint Venture	Equal partnership	Complex projects
Integrated Firm	Single A/E-Contractor	Regular DB work

DB Advantages

Faster delivery: Overlapping design and construction
Single responsibility: One contract, one accountable party
Innovation potential: Team can optimize solutions
Reduced changes: Designer and builder aligned
Early pricing: Cost input during design

DB Challenges

Price uncertainty: Pricing before complete design
Higher pursuit costs: Proposal development expensive
Owner control: Less direct design control
Team capability: Need both design and construction

Side-by-Side Comparison

Comparing DBB and DB across key factors helps you understand which approach fits different situations.

Factor	Design-Bid-Build	Design-Build
Schedule	Longer (sequential)	Shorter (overlapping)
Price Certainty	High at bid	Develops during design
Change Orders	Common	Fewer (single entity)
Owner Control	High over design	Less direct control
Risk Allocation	Split: Owner/Designer/Builder	More with DB entity
Pursuit Cost	Lower	Higher
Innovation	Limited to means/methods	Design and construction
Contractor Role	Builder only	Design + Build

Bidding Strategies

Each delivery method requires different pursuit approaches.

DBB Bidding Strategy

Focus on Execution Excellence

Accurate takeoff and pricing
Efficient means and methods
Strong subcontractor relationships
Competitive overhead and margin
Complete, responsive bid package

DB Bidding Strategy

Focus on Team and Approach

Strong A/E partnership or integration
Compelling technical approach
Relevant past performance (design-build)
Key personnel qualifications
Innovation and value engineering
Balanced price and quality proposal

Building DB Capability

Develop relationships with design firms
Pursue smaller DB projects to build experience
Hire or develop in-house preconstruction
Invest in proposal development capability
Consider mentor-protégé opportunities

Government Trends

Government use of design-build has expanded significantly in recent years.

Federal Design-Build

DOD increasingly uses DB for military construction
VA uses DB for medical facilities
Corps of Engineers has extensive DB program
GSA uses DB for federal buildings

State and Local Trends

Many states have authorized design-build
DOT projects frequently use DB
School districts using DB for speed
Water/wastewater utilities adopting DB

Selection Approaches

Approach	Description
Best Value	Weighted qualifications + price
Low Bid	Lowest price from qualified bidders
Qualifications-Based	Select on quals, negotiate price
Fixed Price/Best Design	Best proposal at fixed price

Choosing Your Approach

Position your company based on capabilities and market opportunities.

Focus on DBB If

You excel at construction execution
Price competitiveness is your strength
Limited design relationships
Prefer defined scope before pricing
Lower risk tolerance

Develop DB Capability If

Strong preconstruction capabilities
A/E relationships or in-house design
Innovation and value engineering strengths
Higher risk tolerance with higher reward
Target agencies using DB extensively

Balanced Approach

Many successful contractors pursue both DBB and DB opportunities, matching approach to specific opportunity characteristics and team availability.

Frequently Asked Questions

Do I need design staff to pursue design-build?

Not necessarily. Most contractor-led DB teams partner with design firms rather than employing in-house designers. What you need is strong preconstruction capabilities to integrate effectively with design partners.

Is design-build riskier than design-bid-build?

Design-build puts more risk on the contractor (you're responsible for design adequacy). However, it also gives you more control to manage that risk. The single-point responsibility can actually reduce overall project risk when managed well.

How do I find A/E partners for design-build?

Network at industry events, review firms that do similar work, check who designs projects you've built. Start with smaller DB projects to build the relationship before major pursuits.

Are DB proposals more expensive to prepare?

Yes, significantly. DB proposals require design concepts, technical approaches, and often preliminary drawings. Pursuit costs can run $50,000-$500,000+ for major projects. Be selective about which DB opportunities to pursue.

Conclusion

Both design-bid-build and design-build offer opportunities for contractors in government construction. DBB remains the dominant method, but DB continues to grow. Developing capability in both approaches maximizes your opportunity set.

Choose your focus based on your current capabilities and where you want to grow. If pursuing design-build, invest in the relationships, processes, and proposal capabilities needed for success.

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