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Design Build Approach Versus Bid Build Approach: Know the Difference

Federal contract spending hit $681 billion in 2020. While government contracts typically rely on a bidding process, many private sector contracts do not.

Whether you are constructing steel buildings, pre-engineered buildings, or another project, it is important to understand the difference between design build vs. bid build. To help unravel the important details, we will explore the design build approach.

What Is Bid Build?

The bid build approach has been the standard for many decades. First, the owner works with an engineering firm to design the project. Then, the owner bids out the project to several potential builders.

The lowest bidder is typically awarded the contract. Construction begins shortly after.

One advantage of the bid build approach is that these delivery methods are well known and understood in the construction business. Any contractor will be familiar with a request for bids.

The bid build approach incentivizes contractors to deliver the best return on investment. Many government contracts (including city contracts) require bids as a means of ensuring that taxpayers are given the best value. In the end, this can be a great benefit to the owner.

What Is Design Build?

The design build approach has become more popular in recent years, and there are several reasons why.

While the bid build approach separates the engineering firm from the bidding contractor, the design build contractor does everything in-house. The owner hires a design-build contractor who designs and constructs the project.

The top benefit of this approach is faster construction. The owner no longer has to wait out the bidding process. No more sifting through the bids and selecting a contractor who may not be ready to start construction right there and then.

Which Is Right for Me?

While the design build approach is gaining popularity, there are areas for the owner to be aware of to this approach. The owner hands off more responsibility to the designer-build contractor. Some owners may prefer the control that comes with selecting bidders for commercial, industrial or other remodel projects.

In some cases, design-build contractors may rely on designs and construction methods that they are comfortable with. Bidders can be more likely to adjust their proposals to meet the intended goals of the owner.

The bid build approach requires extra steps and often extra contracts. This is because the owner is working with an engineering firm and the bidding contractor. The added complexities of coordinating the work of the owner, engineer, and contractor can lead to delays.

If you are looking to maintain control over every aspect of the project, a bid build approach may be best for you as an owner. If you would like to enjoy the benefits of a fast and efficient construction project, design build may be a better option.

What Can the Design Build Approach Do For You?

The design build approach continues to grow in popularity as owners look for faster and more effective ways to build. Both construction methods can be beneficial, depending on the factors outlined in this article.

Titan Construction and Engineering has served the local community since 1979. Over those years, we have developed a reputation for reliability and responsibility. To schedule a consultation with our builders, contact our office online today.

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