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Design-Bid-Build

Overview

Design-bid-build (or design/bid/build, and abbreviated D-B-B or D/B/B accordingly), also known as Design-tender (or "design/tender"), is a project delivery method in which the agency or owner contracts with separate entities for each the design

Design

Design is the planning that lays the basis for the making of every object or system. It can be used both as a noun and as a verb and, in a broader way, it means applied arts and engineering . As a verb, "to design" refers to the process of originating and developing a plan for a product,...

and construction

Construction

In the fields of architecture and civil engineering, construction is a process that consists of the building or assembling of infrastructure. Far from being a single activity, large scale construction is a feat of multitasking...

of a project.

Design-bid-build is the traditional method for project delivery and differs in several substantial aspects from design-build

Design-Build

Design-build is a construction project delivery system where, in contrast to "design-bid-build" , the design and construction aspects are contracted for with a single entity known as the design-builder or design-build contractor...

.

There are three main sequential phases to the design-bid-build delivery method:

The design phase
The bidding (or tender) phase
The construction phase

In this phase the owner retains an architect

Architect

An architect is trained and licensed in planning and designing buildings, and participates in supervising the construction of a building. Etymologically, architect derives from the Latin architectus, itself derived from the Greek arkhitekton , i.e. chief builder...

(or engineer

Engineer

Engineers are concerned with developing economical and safe solutions to practical problems, by applying mathematics and scientific knowledge while considering technical constraints. The term is derived from the Latin root "ingenium," meaning "cleverness"...

for infrastructure

Infrastructure

Infrastructure can be defined as the basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function....

works) to design and produce tender documents on which various general contractor

General contractor

A general contractor is a group or individual that contracts with another organization or individual for the construction, renovation or demolition of a building, road or other structure...

s will in turn bid, and ultimately be utilized to construct the project.

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Encyclopedia

Design-bid-build (or design/bid/build, and abbreviated D-B-B or D/B/B accordingly), also known as Design-tender (or "design/tender"), is a project delivery method in which the agency or owner contracts with separate entities for each the design

Design

Design is the planning that lays the basis for the making of every object or system. It can be used both as a noun and as a verb and, in a broader way, it means applied arts and engineering . As a verb, "to design" refers to the process of originating and developing a plan for a product,...

and construction

Construction

In the fields of architecture and civil engineering, construction is a process that consists of the building or assembling of infrastructure. Far from being a single activity, large scale construction is a feat of multitasking...

of a project.

Design-bid-build is the traditional method for project delivery and differs in several substantial aspects from design-build

Design-Build

Design-build is a construction project delivery system where, in contrast to "design-bid-build" , the design and construction aspects are contracted for with a single entity known as the design-builder or design-build contractor...

.

There are three main sequential phases to the design-bid-build delivery method:

The design phase
The bidding (or tender) phase
The construction phase

Design phase

In this phase the owner retains an architect

Architect

An architect is trained and licensed in planning and designing buildings, and participates in supervising the construction of a building. Etymologically, architect derives from the Latin architectus, itself derived from the Greek arkhitekton , i.e. chief builder...

(or engineer

Engineer

Engineers are concerned with developing economical and safe solutions to practical problems, by applying mathematics and scientific knowledge while considering technical constraints. The term is derived from the Latin root "ingenium," meaning "cleverness"...

for infrastructure

Infrastructure

Infrastructure can be defined as the basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function....

works) to design and produce tender documents on which various general contractor

General contractor

A general contractor is a group or individual that contracts with another organization or individual for the construction, renovation or demolition of a building, road or other structure...

s will in turn bid, and ultimately be utilized to construct the project. For building projects, the architect will work with the owner to identify the owners needs, develop a written program documenting those needs and then produce a conceptual or schematic design. This early design is then developed, and the architect will usually bring in other professionals including mechanical, electrical, and plumbing

Plumbing

Plumbing is the skilled trade of working with pipes, tubing and plumbing fixtures for drinking water systems and the drainage of waste. A plumber is someone who installs or repairs piping systems, plumbing fixtures and equipment such as water heaters...

engineers (MEP engineers), a fire engineer, structural engineer

Structural engineer

Structural engineers analyze, design, plan, and research structural components and structural systems to achieve design goals and ensure the safety and comfort of users or occupants...

, sometimes a civil engineer

Civil engineer

A civil engineer is a person who practices civil engineering, one of the many professions of engineering. Originally a civil engineer worked on public works projects and was contrasted with the military engineer, who worked on armaments and defenses...

and often a landscape architect

Landscape architect

A landscape architect is a person involved in the planning, design and sometimes oversight of an exterior landscape or space. Their professional practice is known as landscape architecture....

to complete documents (drawings and specifications). These documents are then coordinated by the architect and put out for tender to various general contractors.

Bid (or tender) phase

Bids (tenders) can be "open", in which any qualified bidder may participate, or "select", in which a limited number of pre-selected contractors are invited to bid.

The various general contractor

General contractor

A general contractor is a group or individual that contracts with another organization or individual for the construction, renovation or demolition of a building, road or other structure...

s bidding on the project obtain copies of the tender documents, and then put them out to multiple subcontractor

Subcontractor

A subcontractor is an individual or in many cases a business that signs a contract to perform part or all of the obligations of another's contract....

s for bids on sub-components of the project. Sub-components include items such as the concrete work, structural steel frame, electrical systems, and landscaping. Questions may arise during the tender period, and the architect will typically issue clarifications or addenda. From these elements, the contractor compiles a complete "tender price" for submission by the closing date and time. Tender documents can be based on the quantities of materials in the completed construction such as in the UK with Bills of quantities, or the operations needed to build it as in Operational bills.

Once bids are received, the architect typically reviews the bids, seeks any clarifications required of the bidders, ensures all documentation is in order (including bonding

Bond (finance)

In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest and/or to repay the principal at a later date, termed maturity...

if required), and advises the owner as to the ranking of the bids. If the bids fall in a range acceptable to the owner, the owner and architect discuss the suitability of various bidders and their proposals. The owner is not obligated to accept the lowest bid, and it is customary for other factors including past performance and quality of other work to influence the selection process. The project is usually awarded to the lowest bid by a qualified general contractor.

In the event that all of the bids are in excess of the goals of the owner, the owner may elect to reject all bids. The following options become available:

Abandon the project.
The architect may revise the design at no cost to the owner, making the project smaller or more efficient, or reduce features or elements of the project to bring the cost down. The revised documents can then be re-tendered.
The owner may elect to select the lowest qualified bid's general contractor to join the architectural team to assist with cost reduction. This process is often referred to as value engineering
Value engineering
Value engineering is a systematic method to improve the "value" of goods or products and services by using an examination of function. Value, as defined, is the ratio of function to cost. Value can therefore be increased by either improving the function or reducing the cost...

.

Construction phase

After the project has been awarded, the construction documents may be updated to incorporate addenda or changes and they are issued for construction. The necessary approvals (such as the building permit) must be achieved from all jurisdictional authorities for the construction process to begin.

In most instances, almost every component of a project is supplied and installed by sub-contractors. The general contractor often provides work with its own forces, but it is not uncommon for a general contractor to limit its role to management of the construction process and daily activity on a construction site (see also construction management

Construction management

Construction Management refers either to the study and practice of the managerial and technological aspects of the construction industry , or to a business model where one party to a construction contract serves as a construction consultant, providing both design and construction...

).

The architect acts as the owner's agent to review the progress of the work and to issue site instructions, change orders or other documentation necessary to the construction process.

Potential problems of design-bid-build

Failure of the design team to be current with construction costs, and any potential cost increases during the design phase could cause project delays if the construction documents must be redone to reduce costs.
Redesign expense can be disputed should the architect’s contract not specifically address the issue of revisions required to reduce costs.
Development of a "cheaper is better" mentality amongst the general contractors bidding the project so there is the tendency to seek out the lowest cost sub-contractors in a given market. In strong markets, general contractors will be able to be selective about which projects to bid, but in lean times, the desire for work usually forces the low bidder of each trade to be selected. This usually results in increased risk (for the general contractor) but can also compromise the quality of construction. In the extreme, it can lead to serious disputes involving quality of the final product, or bankruptcy of a sub-contractor who was on the brink of insolvency desperate for work.
As the general contractor is brought to the team post design, there is little opportunity for input on effective alternates being presented.
Pressures may be exerted on the design and construction teams, which may lead to disputes between the architect and the general contractor.

Benefits of design-bid-build

The design team is impartial and looks out for the interests of the Owner.
The design team prepares documents on which all general contractors place bids. With this in mind, the "cheaper is better" argument is rendered invalid since the bids are based on complete documents. Incomplete, incorrect or missed items are usually discovered and addressed during the bid process.
Ensures fairness to potential bidders and improves decision making by the owner by providing a range of potential options. It also identifies new potential contractors.
Assists the owner in establishing reasonable prices for the project.
Uses competition to improve the efficiency and quality for owners.

Design-Bid-Build

Design phase

Bid (or tender) phase

Construction phase

Potential problems of design-bid-build

Benefits of design-bid-build

See also