Design-Build Best Practices: What Project Owners Should Know From Start to Finish
Design-build has become one of the most widely used construction delivery methods in the United States, and for good reason. By integrating design and construction under a single contract, design-build can reduce schedules, control costs, and improve accountability. However, success is not automatic. Project owners must understand design-build best practices and the risks to manage throughout the project lifecycle.
This guide outlines proven design-build best practices and highlights what owners should be aware of at each phase, with links to credible industry sources for deeper reference.
What Is Design-Build Construction?
Design-build is a project delivery method where one entity, the design-build team, is responsible for both design and construction. Unlike traditional design-bid-build, the owner holds a single contract rather than separate agreements with an architect and a general contractor.
According to the Design-Build Institute of America (DBIA), design-build improves collaboration, accelerates delivery, and reduces disputes by aligning all parties under a single point of responsibility.
Key benefits include:
Faster project delivery through overlapping design and construction
Single-point responsibility for cost, schedule, and quality
Improved collaboration and fewer claims
Earlier cost certainty
Design-Build Best Practices for Project Owners
1. Clearly Define Project Goals and Success Metrics
Clear project definition is one of the most important design-build best practices. Owners should establish:
Budget targets and funding constraints
Schedule milestones and operational deadlines
Quality and performance requirements
Sustainability, energy, or lifecycle cost goals
The Federal Highway Administration (FHWA) emphasizes that successful design-build projects begin with well-defined performance criteria rather than prescriptive solutions.
Owner takeaway: Define what success looks like, not how the team must achieve it.
2. Select the Right Design-Build Partner, Not Just the Lowest Price
Design-build is highly dependent on team capability. Owners should evaluate qualifications such as:
Experience with similar project types
Integrated design and construction expertise
Preconstruction and estimating strength
Financial capacity and risk management approach
The American Institute of Architects (AIA) notes that qualifications-based selection leads to better outcomes in collaborative delivery models like design-build.
Owner takeaway: Lowest initial price does not always equate to best value.
3. Establish a Well-Defined Basis of Design
Even in design-build, owners must provide a clear Basis of Design (BOD) outlining:
Program and space requirements
System performance expectations
Code, zoning, and regulatory constraints
Owner standards and preferences
DBIA identifies the Basis of Design as a critical document to align scope, cost, and expectations early.
Owner takeaway: Flexibility works best when boundaries are clearly defined.
4. Prioritize Early and Continuous Cost Validation
Cost certainty is achieved through progressive estimating, not fixed assumptions. Best practices include:
Conceptual estimating at early design stages
Continuous cost modeling as design evolves
Transparent contingency tracking
Real-time budget feedback tied to design decisions
The Associated General Contractors of America (AGC) highlights early contractor involvement as a key driver of cost reliability.
Owner takeaway: Expect cost conversations early and often.
5. Understand Risk Allocation in Design-Build Contracts
While design-build transfers significant risk to the design-build team, owners still retain responsibility for:
Site conditions and environmental disclosures
Permitting timelines and authority approvals
Scope clarity and owner-initiated changes
Force majeure events
The Construction Management Association of America (CMAA) stresses the importance of clearly defined risk allocation to avoid disputes.
Owner takeaway: Over-allocating risk can increase pricing and reduce collaboration.
6. Maintain Owner Engagement Throughout the Project
Design-build simplifies coordination, but it does not eliminate the need for owner involvement. Owners should:
Participate in design reviews
Approve major system and material decisions
Stay aligned on value engineering proposals
Monitor schedule impacts of design changes
DBIA research shows that engaged owners achieve better schedule and cost outcomes.
Owner takeaway: Design-build is a partnership, not a passive process.
7. Leverage Preconstruction and Constructability Expertise
One of the greatest advantages of design-build is early construction input. Best practices include:
Constructability and phasing reviews
Early identification of long-lead items
Logistics and site access planning
Early trade partner engagement
AGC identifies constructability reviews as a major factor in reducing rework and delays.
Owner takeaway: Early construction insight reduces downstream risk.
8. Manage Changes With Discipline
While design-build reduces change orders, changes still occur. Owners should:
Clearly document owner-driven scope changes
Understand cost and schedule impacts before approval
Track contingency usage carefully
Avoid late-stage program changes
FHWA guidance notes that late changes diminish the time and cost benefits of design-build.
Owner takeaway: Early decisions protect budget and schedule.
Common Design-Build Pitfalls Owners Should Avoid
Incomplete or unclear project requirements
Selecting teams solely on price
Unrealistic schedule expectations
Limited owner involvement during design
Poorly written contracts with unclear risk ownership
These pitfalls are consistently cited by DBIA and CMAA as leading causes of underperforming design-build projects.
Why Design-Build Continues to Grow
Design-build is now widely used across healthcare, data centers, industrial, retail, infrastructure, and institutional construction. DBIA reports that design-build projects are delivered faster and with fewer claims than traditional delivery methods.
Final Thoughts for Project Owners
Design-build is not a shortcut, but it is a highly effective delivery method when best practices are followed. Owners who define clear goals, select qualified partners, remain engaged, and manage risk thoughtfully consistently achieve better outcomes.
By understanding these design-build best practices and learning from proven industry guidance, project owners can fully leverage the benefits of this integrated delivery model.
