Report: Design-build to deliver almost half of US projects by 2021

Design-Bid-Build (DBB) is the most widely used project delivery method in the United States, according to the Lean Construction Institute of America and other groups. With this method, an owner separately hires a designer, who provides the complete design documents, and a contractor, who offers the most attractive price offer to execute that project.

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But new research from consulting firm Fails Management Institute (FMI) indicates that the design-build (DB) delivery method, in which an owner hires a single entity to carry out both design and build, is gaining traction. quickly. Land in the sector. According to the June 2018 “Design-Build Utilization” report, database methods will account for nearly half, or 44%, of implemented construction spending (CPiP) in many market segments by 2021.

The IMF results were based on 82 interviews and 101 survey responses from construction companies in all income categories, from the top 10 NRA-ranked companies to small businesses. The IMF evaluated the commercial, road / highway, education, manufacturing, office, transportation, health, housing, recreation, water / wastewater, communications, public safety, and religious construction market segments.

The IMF has forecast that DB CPiP’s collective spending in these segments will increase by 18% between 2018 and 2021, going from $ 274 billion to $ 324 billion in value. The manufacturing, education and highways / highways segments are expected to comprise the top three market shares of 16%, 15% and 14% respectively by 2021, followed by commercial with a 13% share.

It is no longer the “alternative”
According to the study, design and build and other alternative delivery methods, such as Construction Manager at Risk (CMAR) and Construction Manager / General Contractor (CMGC) have become more attractive options for homeowners looking to reduce the budgets and / or the project schedule. Alternative methods have been shown to “provide the best way to achieve the originally identified cost,” according to the report.

While 82% of the owners surveyed said they have used or plan to use DBB in the next five years, 58% of the owners said they have used or plan to use DBB.

Given the popularity of DBB, just over half of the homeowners surveyed said usage would remain virtually unchanged over the next five years, while 32% predicted a decline and only 15% predicted an increase. Meanwhile, 29% of owners said that database adoption would remain the same, while 67% predicted higher usage.

One reason DB methods have gained momentum, according to the report, is the passage of state legislation that facilitates the use of alternative methods of project execution. Last year, for example, Virginia lawmakers extended design and build authority to all local governments, the New York governor’s budget added new state entities to the list of those authorized to use the design. construction and the Washington state legislature recommended design-build for the construction of a bridge. Legislation in 38 states that allows the use of public-private partnerships also plays a role in increasing DB use, according to the report.

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