Design-Build vs. Design-Bid-Build: Which Commercial Construction Method Saves Time and Money?

Written By Kimberly Stillwagon

Choosing the right project delivery method is one of the most important decisions a commercial property owner or developer will make. The method you choose affects cost, timeline, risk, communication, and overall project success.

Two of the most common approaches in commercial construction are Design-Build and Design-Bid-Build. While both can deliver a successful project, they operate very differently—and those differences can significantly impact your budget and schedule.

What Is Design-Bid-Build?

Design-Bid-Build (DBB) is the traditional project delivery method and has been used in commercial construction for decades.

How Design-Bid-Build Works

  • The owner hires an architect or engineer to complete the full design.

  • Once plans are finished, the project goes out to competitive bidding.

  • Contractors submit bids based on the completed plans.

  • The owner selects a contractor—often the lowest bidder.

  • Construction begins after contracts are executed.

Key Characteristics

  • Separate contracts for design and construction

  • Linear process (design must be complete before construction starts)

  • Price is typically determined after design completion

Pros of Design-Bid-Build

 Competitive Pricing - Multiple contractors bidding can create downward pressure on price—on paper.

 Clear Design Control - Owners work directly with the architect during design, which can be beneficial if aesthetics or branding are the top priority.

 Familiar Process- Many lenders, municipalities, and public entities are comfortable with DBB.

 

 

 

 

Cons of Design-Bid-Build

 Longer Project Timeline - Since construction cannot begin until design is complete, projects often take months longer.

Higher Risk of Cost Overruns - Designs are completed without contractor input, which can lead to:

  • Unbuildable details

  • Inaccurate cost assumptions

  • Budget surprises during construction

Change Orders - When design errors or omissions are discovered, change orders increase costs and create delays.

Adversarial Relationships - Architects and contractors work under separate contracts, which can lead to finger-pointing when issues arise.

What Is Design-Build?

Design-Build (DB) combines design and construction under one contract and one team.

How Design-Build Works

  • The owner hires a Design-Build team (GC + design professionals).

  • Design and budgeting happen simultaneously.

  • Construction can begin before the full design is complete.

  • The same team is responsible for both design and execution.

Key Characteristics

  • Single point of responsibility

  • Collaborative process

  • Early cost certainty

Pros of Design-Build

 Faster Project Delivery - Because design and construction overlap, Design-Build projects are often completed 20–30% faster than DBB projects.

Better Cost Control - Budgets are developed in real time as the design evolves, reducing surprises.

Fewer Change Orders - Since builders are involved early, designs are practical and efficient.

Improved Communication - Everyone works toward the same goals under one contract.

Reduced Owner Risk - The Design-Build team is accountable for both design and construction.

Cons of Design-Build

Less Competitive Bidding - You are not bidding the project to multiple contractors after design is complete.

Requires Trust - Owners must be comfortable relying on the Design-Build team for pricing transparency.

Not Ideal for Every Project - Highly specialized or design-driven projects may require a more traditional approach.

Which Method Saves More Time?

Design-Build almost always wins on speed.

Why?

  • Site work can start while design continues

  • Long-lead materials can be ordered earlier

  • Fewer redesigns and delays

Best for speed-sensitive projects:

  • Retail spaces

  • Restaurants

  • Tenant improvements

  • Industrial and warehouse projects

  • Projects with tight market deadlines

 

Which Method Saves More Money?

While Design-Bid-Build can appear cheaper upfront, Design-Build often delivers better overall cost control.

Design-Bid-Build Cost Risks:

  • Low bids that don’t reflect real costs

  • Change orders due to design gaps

  • Delays that increase general conditions and financing costs

Design-Build Cost Advantages:

  • Real-time budgeting during design

  • Value engineering before construction begins

  • Fewer surprises and claims

When Design-Bid-Build Makes Sense - Design-Bid-Build may be the right choice if:

  • You require strict competitive bidding

  • The project is publicly funded

  • Design complexity outweighs schedule concerns

  • The scope is fully defined and unlikely to change

 

Kimberly Stillwagon
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