What the Data Says: Commercial Construction Delivery Methods

Introduction

The U.S. building construction industry is a complex web of operations. At the heart of this web are project delivery systems, serving as the blueprint for execution. To ensure optimal outcomes, stakeholders must navigate three dominant systems: Design-Bid-Build (DBB), Construction Manager at Risk (CMR), and Design-Build (DB).

Understanding Project Delivery Systems

Each system is defined by its contractual relationships, timing of stakeholder involvement, payment terms, and selection criteria.

  • Design-Bid-Build (DBB): A linear sequence where an owner contracts a designer first, then hires a general contractor based on competitive bid prices once the design is nearly finalized.

  • Construction Manager at Risk (CMR): The owner contracts a designer, but brings in a Construction Manager when the design is 20–60% complete based on qualifications and fees.

  • Design-Build (DB): The owner signs a single contract with a design-builder, promoting a unified approach from the start.

Research Revelations: Performance Metrics

Data consistently shows that Design-Build (DB) projects often outperform CMR and DBB, particularly in unit cost, cost growth, and delivery speed. Research indicates that DB systems are generally more cost-effective and swifter across the entire project duration.

Human Insights: The Pulse of Success

Beyond the technical system chosen, success is heavily dependent on human and relational factors:

  • Early Team Formation: Integration fosters proactive problem-solving and mutual understanding.

  • Relational Culture: Trust and open communication reduce misunderstandings and prioritize project success over individual achievements.

  • Clear Expectations: Ensuring everyone understands their roles leads to a streamlined workflow.

  • Repeat Clients: Familiarity reduces "settling in" time and builds on past successes.

Recommendations for Future Projects

To drive success, stakeholders should prioritize early team involvement, foster a relational project culture, set clear goals, and plan for succession to ensure continuity. While Design-Build is a frontrunner, the combination of the right system and the right people is the true secret to optimal outcomes.

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Low Bid Doesn't Work: Exploring Alternative Delivery Methods in Oklahoma's Construction Industry

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Design-Build Commercial Construction Can Save Time and Money: Development in OKC