A construction project delivery model is the contractual and organizational arrangement an owner uses to obtain design and construction. It decides who is responsible for each service, when the builder joins the project, how the construction price is established, how decisions are made, and where schedule, cost, and design risk sits. The three principal models are design-bid-build, design-build, and construction manager/general contractor (CM/GC, also called construction manager at-risk in some jurisdictions).
The right choice depends on the owner’s priorities, design maturity, need for early builder input, tolerance for changing scope, funding rules, and local law. No model is automatically faster, cheaper, or safer on every project.
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What a delivery model controls
A delivery model is about project organization and contracting, not a building material, architectural style, or project-management application. Before work begins, the owner chooses how designers and builders will be selected and how their duties will be divided.
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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware match- Contracts: whether design and construction are bought through separate agreements or combined in one agreement.
- Responsibility: which party carries design coordination, constructability, estimating, scheduling, and construction performance obligations.
- Sequencing: whether construction starts after a complete design or overlaps with design development.
- Pricing: whether contractors compete on completed documents, negotiate a later price, or establish price and scope progressively.
- Risk and decisions: who owns design errors, coordination gaps, unknown conditions, price changes, and schedule effects, subject to the contract.
These choices affect the owner’s control, the amount of coordination required, the opportunity to change scope, and the likelihood of disputes. The Federal Acquisition Regulation (FAR 36.102) gives concise federal definitions: design-bid-build uses sequential design and construction contracts with two contractors, while design-build combines both services in one contract with one contractor.
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The three principal delivery models
| Model | Contract structure | When the builder participates | Typical pricing and sequencing |
|---|---|---|---|
| Design-bid-build (DBB) | Separate owner contracts for design and construction | Usually after design documents are sufficiently complete for bidding | Sequential design, bid, and construction; bids are based on plans and specifications |
| Design-build (DB) | One owner contract covering design and construction | Design-builder is engaged at the start and coordinates both functions | Design and construction may overlap; price and risk depend on the procurement documents and contract |
| CM/GC or CM-at-risk | Owner hires a designer and a construction manager, with a later construction agreement possible | Construction manager contributes during design | Price is developed and negotiated as design advances; a guaranteed maximum price (GMP) is common but not universal |
Design-bid-build
In design-bid-build, the owner first contracts with an architect or engineer to develop the design. Once the plans and specifications reach the required level of completion, the owner solicits construction bids and signs a separate contract with the selected general contractor. Construction follows the design phase in a generally sequential path.
This arrangement gives the owner a direct contract with the designer and a separate contract with the builder. The completed documents create a common basis for competing bids, which can make initial price comparison straightforward. The owner also retains substantial control over design decisions before construction procurement.
The separation creates interfaces that the owner must manage. Designers do not normally control the contractor’s means and methods, and the contractor did not prepare the design. If drawings conflict, information is incomplete, or a design change is needed, responsibility and cost may become disputed. Because construction procurement waits for design completion, the overall schedule can be longer when early work cannot proceed under a separate package or authorization.
Design-build
Design-build places design and construction under one contract with a single design-builder. The owner states performance requirements, capacity, quality, site, schedule, and other outcomes; the design-builder coordinates the design professionals and construction operations needed to deliver them.
Because one entity is responsible for both functions, design-build can reduce the number of contractual interfaces for the owner. Design and construction may overlap, for example by releasing early foundations or long-lead equipment packages while later portions of the design are completed. The overlap can shorten the calendar, but only when the scope, approvals, financing, and risk allocation support that sequence.
Federal Highway Administration (FHWA) materials describe possible time and cost benefits compared with separated delivery. Those are potential outcomes, not guarantees. An immature owner brief, frequent requirement changes, slow approvals, or poorly defined performance criteria can erase the advantage and create expensive rework. The contract should state who owns design criteria, review obligations, permitting, coordination, and changes so that the single point of responsibility is real rather than merely a label.
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Construction manager/general contractor (CM/GC)
CM/GC brings construction expertise into the design phase without requiring the owner to award the entire construction scope at the outset. The owner separately engages a designer and selects a construction manager, often on qualifications, relevant experience, or best value. During design, the CM reviews constructability, phasing, logistics, schedule, cost, and market conditions.
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When the owner considers the design sufficiently complete, the CM may submit a construction price or bid for the work. The owner, designer, and an independent cost estimator can evaluate whether that price is fair before issuing a construction contract. If agreement is not reached, the contract should explain whether the owner may rebid the work, use another contractor, or terminate the CM’s construction role.
CM/GC is therefore more than an advisory construction manager who never builds the project. In many arrangements the CM becomes the general contractor after price agreement, but state statutes and contract language control the result. Some states use the term construction manager at-risk for a similar structure.
How the models differ in practical terms
Contract count and accountability
DBB gives the owner two primary contracting relationships and requires the owner to coordinate the designer and builder. DB gives the owner one principal contracting point for both services. CM/GC begins with separate design and construction-management relationships and may add a construction contract after design development. A single contract can simplify escalation, but it does not eliminate the need for clear requirements and owner decisions.
Builder input and constructability
DBB generally obtains the builder’s input after design is prepared. DB obtains that input from the design-builder from the beginning, while CM/GC deliberately purchases preconstruction expertise before the final construction price. Early input can improve phasing and logistics, but it also means the owner must make timely decisions and evaluate advice while the design is still changing.
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Schedule overlap
DBB is ordinarily sequential. DB can overlap design and construction when packages are defined and approvals are available. CM/GC can also support early work or phased packages, but the owner must define what is authorized before the final price and how later scope will be incorporated. Overlap increases coordination demands and the consequences of releasing work from incomplete information.
Price formation
DBB commonly produces competing bids against completed plans and specifications. DB pricing may be lump sum, guaranteed maximum, target-based, or another arrangement negotiated through the procurement documents; the single contract does not prescribe one price type. CM/GC develops price with the owner as design advances, often using a GMP, with cost review and potential rebidding if the parties cannot agree.
Risk allocation and owner involvement
Every model can transfer or retain different risks. In DBB, the owner commonly remains exposed to coordination between designer and contractor. In DB, the design-builder carries integrated design-construction coordination, while the owner remains responsible for defining requirements, reviewing submissions, and making decisions. In CM/GC, the owner gains earlier cost and schedule information but must administer an evolving scope and test the proposed price. The contract, not the model name, determines insurance, indemnity, differing-site-condition, escalation, design-liability, and change-order treatment.
A decision process for selecting a model
- Define the owner’s outcome. Document required capacity, performance, quality, completion date, budget, funding conditions, site constraints, and stakeholder approvals. Separate mandatory requirements from preferences.
- Assess design maturity. If the owner can define a stable scope and complete documents before procurement, DBB may provide a clear bidding basis. If requirements are performance-based or likely to evolve, DB or CM/GC may better accommodate development.
- Identify the value of early construction input. Complex phasing, occupied facilities, difficult logistics, utilities, traffic control, or volatile materials markets can justify early builder participation.
- Choose the desired owner relationship. Decide whether the owner wants direct control of the designer, one integrated point of responsibility, or a collaborative design-stage relationship with a prospective builder.
- Set the pricing strategy. Determine when the owner needs a firm price, how contingencies will be handled, whether open-book estimating is required, and what happens if the proposed price exceeds the budget.
- Test legal and funding eligibility. Public procurement statutes, grant terms, airport-program rules, professional-licensing requirements, and bonding laws may limit available methods or impose selection procedures.
- Write the risk matrix before issuing procurement documents. Assign responsibility for design criteria, surveys, permits, site conditions, escalation, owner changes, review delays, commissioning, and performance testing.
- Plan the off-ramp. For progressive or CM/GC arrangements, specify what occurs if scope, price, or schedule cannot be agreed and how partially completed design or early work will be paid for.
Progressive and other alternatives
Delivery terminology is not uniform, and several approaches are variations rather than universally distinct systems. FHWA’s alternative-contracting overview includes progressive design-build, fixed-price variable-scope design-bid-build, best-value design-bid-build, and indefinite-delivery/indefinite-quantity contracting.
Progressive design-build
Progressive design-build selects the design-builder before the final price is established. The team advances design, cost, schedule, and risk information together, then sets the final price under the contract’s agreed process. This can be useful when the owner needs collaboration before scope is fully defined. The procurement must state design stages, pricing assumptions, transparency requirements, and the owner’s rights if negotiations fail.
Fixed-price variable-scope design-bid-build
This approach preserves separate design and construction procurement but uses a fixed budget to determine which scope elements are included. It can help an owner protect a financial limit while identifying alternates or deferred work. The documents must make priorities and substitution rules explicit so bidders price the same base scope.
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Best-value design-bid-build
Best-value DBB evaluates more than the lowest number, such as qualifications, technical approach, schedule, safety, and past performance, while retaining separate design and construction contracts. Public owners should verify that their enabling law and solicitation rules permit those evaluation factors.
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Integrated project delivery (IPD) is a collaborative form in which core parties share information and align incentives under a coordinated agreement. The FAA’s 2024 reauthorization expanded statutory coverage for progressive design-build and IPD on covered airport projects. The FAA description of a qualifying whole-project contract includes the sponsor, builder, and architect-engineer as parties, aligned interests for cost and outcomes, and processes supporting transparency and collaboration. That statutory definition applies within the FAA framework; a contract called IPD elsewhere may not satisfy those criteria.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Public-sector and jurisdictional cautions
Federal definitions are useful starting points, but state and local terminology can differ. A state may call CM/GC “construction manager at-risk,” impose a separate selection phase, or require a price proposal before a construction contract. Public agencies may also face open-records, minority- and disadvantaged-business participation, protest, bonding, and competitive-selection requirements. Confirm the governing statute, grant conditions, procurement policy, and professional-practice rules before promising a delivery method in an advertisement.
Do not assume that a method available to one transportation or airport agency is available to every private owner or public body. The contract should identify the law governing it and the approvals required at each stage.
Common failure points and controls
- Using a model name without defining duties: attach a responsibility matrix and describe deliverables, reviews, and acceptance criteria.
- Releasing early work from incomplete information: identify design packages, interfaces, assumptions, and who pays for resulting rework.
- Treating a GMP as a guaranteed final cost: list allowances, exclusions, contingencies, escalation, owner changes, and conditions that permit adjustment.
- Ignoring an independent price check: in CM/GC or progressive DB, require open-book backup and an independent estimate before accepting the proposed price.
- Assuming one party owns every risk: allocate survey accuracy, hazardous materials, utilities, permits, design criteria, and differing conditions expressly.
- Failing to plan a failed negotiation: state whether the owner can rebid, replace the builder, or terminate and how design information is transferred.
- Leaving approval timelines vague: set review periods, escalation routes, and the effect of delayed owner decisions.
Examples of model fit
Stable, conventional building
An owner with a complete design, predictable site, and strong desire for competitive bids may select DBB. The owner should still budget for design coordination, bid addenda, and potential claims arising from document gaps.
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An owner facing a critical opening date and complex equipment coordination may consider DB or CM/GC. Early builder input can inform procurement and phasing, but the owner must make rapid decisions and define what can proceed before the design is complete.
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Uncertain scope or funding
Progressive DB or CM/GC can let the team develop scope and price together. The procurement should protect the owner with transparent estimating, approval gates, and a clear alternative if the final price does not fit available funds.
Questions to answer in the procurement documents
- Who holds the design contract and who is liable for design coordination?
- What design completion is required before bids, a GMP, or a final price?
- May design and construction overlap, and which early packages are authorized?
- How are contractor qualifications, technical approach, price, and past performance weighted?
- What cost records, allowances, contingencies, and independent estimates must be disclosed?
- How are owner changes, escalation, differing site conditions, and permit delays priced?
- What happens if the owner and builder cannot agree on the construction price?
- Which statute, grant condition, contract form, and dispute procedure govern the work?
A useful terminology reference is the AIA–AGC Primer on Project Delivery Terms. For federal work, FAR 36.102 provides the baseline DBB and DB definitions; FHWA guidance explains CM/GC and alternative contracting; and the FAA’s airport-program materials describe the scope of its 2024 statutory provisions.
Frequently Asked Questions
Is design-build always faster than design-bid-build?
No. Design-build can overlap design and construction and may reduce contractual interfaces, but the result depends on scope clarity, approvals, procurement timing, and risk allocation. A poorly defined design-build package can create rework and delay.
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No. A GMP is a contract price structure, not an unconditional promise that the owner’s total cost cannot change. Allowances, owner changes, escalation, differing conditions, and other stated exceptions can adjust the amount.
Can any owner use progressive design-build or integrated project delivery?
Not automatically. Availability depends on applicable statutes, funding conditions, procurement rules, and the contract. The FAA’s statutory IPD and progressive design-build provisions apply to covered airport projects under specified criteria, not as a nationwide definition.
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