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Design-Bid-Build

Project Structure and Approach


Owner

General
Contractor

Architect/
Engineer

Subcontractors and Suppliers

PD&E

PE

Final Design

Procurement

Construction

Contractor Selected

DESIGN-BID-BUILD
Design/Bid/Build systems have the greatest design and construction schedule growth.
Complexity of project
Complies with state procurement statutes- Typically public funds are spent with
the lowest bidder only.
Traditionally used and is a three step design-bid-build method of procuring design and construction
services for most capital projects.
This approach allows the owner to determine the exact product before it begins construction.
Step 1 is an AE defines the client's needs, designs the project, prepares construction drawings and
specifications, and administers construction. The project is not bid on by contractors until working
drawings are completed. The important deliverable here is the drawings and specifications because they
serve as the contractual definition of what the contractor is to build.
Step 2 - The design package is then presented to general contractors who bid for the work and engage
subcontractors to provide various aspects of the project. Usually the
lowest bid is selected.

Step 3- At the end of this process you have an engineers estimate of costs.
During the contractor procurement process, contractors may be prequalified and short-listed. Typically, the
low bidder is awarded the work. So, in this scenario, the AE is at the agent end of the spectrum, the
contractor is at the vendor end.

PROS & CONS OF DBB

The process is easy to manage.


Roles are clear, the process is universally understood.
Since the owner has a defined requirement and a fixed price, it appears prudent.

However, its not the quickest route.


There is not a fixed price for construction until much work has been done.
If bids are over the budget, more time and money are lost for redesign. And there lies
some of the risk to the Owner.

You can exercise the greatest control over the project, but the risk associated with project
schedule and coordination amongst the parties rests with the Owner.
If the construction cost exceeds the project estimate, the Owner may have to seek more
funds, re-scope the project or redesign to the projects estimate; costing more time and
money.
Often, agencies will hire a program management team to manage on their behalf the conflict,
delays and claims, which are not easy to predict or quantify. Ultimately, the owner retains all
the risks.

REFERENCES
http://capital.ucsd.edu/process/Overview/Hy
perlinkConstructionDeliveryMethods0404.doc
http://thedesignbuildblog.wordpress.com/201
0/08/02/design-build-vs-design-bid-build/
http://www.tysonbuilding.com/images/Selecti
ngProjectDelivery.pdf