Design-build Vs. Design-bid-build Delivery Methods: How Are They Different?

Design-build Vs. Design-bid-build Delivery Methods: How Are They Different?

Aug 17, 2022

Hotel design

Design-build Vs. Design-bid-build Delivery Methods: How Are They Different?

Construction for hotel projects involves choosing between a turnkey solution and a bidding process among contractors who work with subcontractors.

The design-build delivery method involves contracting with one entity to oversee the complete construction of a project. It's an all-in-one solution that sometimes even includes financing. Paying for design and construction under one contract is more efficient for many clients compared to writing various checks. This approach gives you a better chance of gaining insights from the builder about how to save money throughout the project.

Design-build is different from the design-bid-build method, in which the client hires a set of specialists who then work together. The design-bid-build method is commonly used by public and municipal organizations and sometimes by private organizations.

Pros and cons of design-build

The main advantage of the design-build delivery method is that it brings the client and the builder closer through better coordination. It allows real-time communication for cost updates and interventions. Working with a cohesive team that handles all areas of construction helps avoid high costs when it comes to last-minute changes.

An all-in-one builder can speed up project timelines and deal more efficiently and flexibly with cost and schedule changes. This type of contractor will more likely help establish early cost and schedule input to maximize efficiency.

A key disadvantage to the design-build delivery method is that many potential clients are skeptical that a single entity can handle the vast range of responsibilities involved with construction. They may also have reservations about the lack of competitive bidding.

Pros and cons of design-bid-build

Also known as the hard bid method, the design-bid-build delivery method is based on a client taking bids from different contractors and choosing the best ones for certain tasks.

However, the design-bid-build delivery method is less reliable at keeping a project on schedule. Once you commit to different teams collaborating, you may be at their mercy in terms of scheduling. The team members may not be as cohesive or flexible as a turnkey solution, leading to project delays. Under this model, the various subcontractors, from designers to engineers to builders, may not view the project the same way.

Choosing the right construction strategy for your hotel can have a dramatic impact on how well the end result matches your vision. Contact Nikki Fox, nikki@parkwestgc.com, at Parkwest General Contractors to learn more about hotel property improvement plans and tips on the best practices for construction project management.