Design-Bid-Build
Encyclopedia
Design–bid–build also known as Design–tender (or "design/tender") and traditional method, is a project delivery method in which the agency or owner contracts with separate entities for each the design and construction of a project.
Design–bid–build is the traditional method for project delivery and differs in several substantial aspects from design–build.
There are three main sequential phases to the design–bid–build delivery method:
(or engineer
for infrastructure
works) to design and produce tender documents on which various general contractor
s will in turn bid, and ultimately be used 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
engineers (MEP engineers), a fire engineer, structural engineer
, sometimes a civil engineer
and often a landscape architect
to complete documents (drawings and specifications). These documents are then coordinated by the architect and put out for tender to various general contractors.
The various general contractor
s bidding on the project obtain copies of the tender documents, and then put them out to multiple subcontractor
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
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:
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
).
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.
Design–bid–build is the traditional method for project delivery and differs in several substantial aspects from design–build.
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 architectArchitect
An architect is a person trained in the planning, design and oversight of the construction of buildings. To practice architecture means to offer or render services in connection with the design and construction of a building, or group of buildings and the space within the site surrounding the...
(or engineer
Engineer
An engineer is a professional practitioner of engineering, concerned with applying scientific knowledge, mathematics and ingenuity to develop solutions for technical problems. Engineers design materials, structures, machines and systems while considering the limitations imposed by practicality,...
for infrastructure
Infrastructure
Infrastructure is 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 responsible for the day-to-day oversight of a construction site, management of vendors and trades, and communication of information to involved parties throughout the course of a building project.-Description:...
s will in turn bid, and ultimately be used 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 system of pipes and drains installed in a building for the distribution of potable drinking water and the removal of waterborne wastes, and the skilled trade of working with pipes, tubing and plumbing fixtures in such systems. A plumber is someone who installs or repairs piping...
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; the application of planning, designing, constructing, maintaining, and operating infrastructures while protecting the public and environmental health, as well as improving existing infrastructures that have been neglected.Originally, a...
and often a landscape architect
Landscape architect
A landscape architect is a person involved in the planning, design and sometimes direction of a landscape, garden, or distinct space. The 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 responsible for the day-to-day oversight of a construction site, management of vendors and trades, and communication of information to involved parties throughout the course of a building project.-Description:...
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 to use 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 engineeringValue engineeringValue 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 Project Management is the overall planning, coordination and control of a project from inception to completion aimed at meeting a client’s requirements in order to produce a functionally and financially viable project that will be complete mingement is project management that applies...
).
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.
- System development life cycle is known as SDLC
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.
See also
- Architectural servicesArchitectAn architect is a person trained in the planning, design and oversight of the construction of buildings. To practice architecture means to offer or render services in connection with the design and construction of a building, or group of buildings and the space within the site surrounding the...
- Architectural engineeringArchitectural engineeringArchitectural engineering, also known as building engineering, is the application of engineering principles and technology to building design and construction...
- Civil engineeringCivil engineeringCivil engineering is a professional engineering discipline that deals with the design, construction, and maintenance of the physical and naturally built environment, including works like roads, bridges, canals, dams, and buildings...
- Construction biddingConstruction biddingConstruction bidding is the process of submitting a proposal to undertake, or manage the undertaking of a construction project. The process starts with a construction estimate from blueprints and take offs....
- Construction engineeringConstruction engineeringConstruction engineering is a professional discipline that deals with the designing, planning, construction, and management of infrastructures such as highways, bridges, airports, railroads, buildings, dams, and utilities. Construction Engineers are unique such that they are a cross between civil...
- Construction software
- Design–build
- Construction managementConstruction managementConstruction Project Management is the overall planning, coordination and control of a project from inception to completion aimed at meeting a client’s requirements in order to produce a functionally and financially viable project that will be complete mingement is project management that applies...
- Joint Contracts TribunalJoint Contracts TribunalThe Joint Contracts Tribunal, also known as the JCT, produces standard forms of contract for construction, guidance notes and other standard documentation for use in the construction industry. From its establishment in 1931, JCT has expanded the number of contributing organisations...
- Submittals (construction)Submittals (construction)Submittals in Construction Management are shop drawings, material data, samples, and product data. Submittals are required primarily for the architect and engineer to verify that the correct products will be installed on the project....
- Shop drawingShop drawingA is a drawing or set of drawings produced by the contractor, supplier, manufacturer, subcontractor, or fabricator. Shop drawings are typically required for pre-fabricated components. Examples of these include: elevators, structural steel, trusses, pre-cast, windows, appliances, cabinets, air...
- Public–private partnership