Business

Changing the Way America Builds With Design-Build

The increased use of design-build is allowing collaboration and innovation to flourish, saving time and money on projects that used to be burdened with cost overruns, schedule delays and litigation.
By Lisa Washington
January 10, 2019
Topics
Business

While it may seem as though there aren’t many things the American people agree on these days, the need for greater investment in community infrastructure is one issue with broad support. Many states aren’t waiting on Washington for new infrastructure investment and have taken the lead to finance, build, and rebuild the vital roads, bridges, public buildings and other projects their communities need. Design-build is at the heart of many of these efforts and new research details why this once “alternative” approach is now mainstream.

New project delivery research funded by CII/Pankow shows design-build continues to deliver projects faster, with more reliable performance and less cost and schedule growth.

It’s been 20 years since the seminal CII/Penn State research showed that design-build projects consistently delivered projects more efficiently. Over the decades, even as projects have evolved in complexity through many diverse economic cycles, design-build continues to provide improved value to communities. As America continues to struggle with too many unmet project needs and budgets stretched thin, it’s no surprise that most states have embraced design-build as a better way to deliver projects vital to economic growth.

Whether it’s a billion-dollar airport or small community library, this research confirms design-build continues to deliver innovative projects that save time and money. Design-build is clearly a better way to build.

Research Highlights

This CII/Pankow research was conducted by Keith Molenaar, Ph.D., DBIA, Stanton Lewis professor and the associate dean for the University of Colorado Boulder, as well as Bryan Franz, Ph.D., assistant professor for the University of Florida. A total of 212 projects were included, 53 of which were design-bid-build, 79 were construction management at-risk and the remaining 80 were design-build. More than 60 percent of these projects were publicly funded and 38 percent were privately funded. All projects were completed between 2008 and 2013 and represented a variety of building uses, including:

  • Light industrial;
  • Heavy industrial;
  • Multi-story dwelling;
  • Simple office;
  • Complex office; and
  • High technology.

Project Cost

On average, projects using design-build cost 1.9 percent less per square foot when compared to construction management at-risk and 0.3 percent less when compared to design-bid-build. Design-build projects also average 2.4 percent less cost growth than a comparably scoped project using construction management at-risk and 3.8 percent less cost growth than a project using design-bid-build.



Project Schedule

Design-build was the best performing project delivery system in terms of schedule growth, delivery speed and construction speed. Design-build projects see 3.9 percent less schedule growth than construction management at-risk and 1.7 percent less than design-bid-build. They’re also 13 percent faster than construction management at-risk during the construction phase and 36 percent faster than design-bid-build. From design through completion, design-build projects are delivered 61 percent faster than construction management at-risk and 102 percent faster than design-bid-build.



Keith Molenaar, Pd.D., DBIA, with the University of Colorado Boulder, is one of the study’s authors and says this research was similar in scope and approach, while the projects have evolved over the decades, “this study’s set of projects is more complex than the original research in 1998 and design-build continues to outperform the alternatives.”

This cost and performance research, combined with FMI’s new market assessment, illustrates the vital role design-build plays in delivering projects of all types and sizes across market sectors.

Market Growth

Overall, design-build is anticipated to account for 44 percent of construction spending in the assessed segments (nonresidential, highway/street and water/wastewater) delivering $1.2 trillion in construction put in place by 2021. Design-build spending is anticipated to grow 18 percent overall, with the highway/street and water/wastewater sectors seeing 30 percent growth by 2021. • Design-build spending in manufacturing (16 percent), highway/street (14 percent) and educational (15 percent) represent the greatest percentage of design-build construction spending by segment over the 2018 to 2021 period.

Together, this research is far more than just an industry-insider’s story. The increased use of design-build is allowing collaboration and innovation to flourish, saving time and money on projects that, not so long ago, were burdened with cost-overruns, schedule delays and litigation. The rapid growth of design-build really isn’t a mystery. It’s allowing owners to do more with less while delivering more innovative and resilient projects.

Of course, design-build isn’t a magic bullet. Good projects, no matter how they’re delivered, require good teams and the collaboration that makes design-build so powerful requires a mental shift. However, this new research shows that a rapidly growing number of designers, builders and project owners “get it” and are committed to changing the way America builds. Design-build will continue to lead the way.

by Lisa Washington
Lisa Washington, CAE, is the Executive Director/CEO of the Design-Build Institute of America.

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