The above diagram illustrates some of the major benefits of the Design Build method vs. the traditional Design-Bid-Build method.

Using the traditional method of Design-Bid-Build, a complete or nearly complete set of documents must be fully drafted, then issued for pricing from all of the various trades. Only at this time can the true cost of the project be determined. Quite often, the drawings result in cost overruns and need to be rethought, redrafted, and once again resubmitted for pricing. This method often leads to frustration, lost time, and additional design fees.

Using the Design Build approach, the preliminary design is agreed upon by the designer/architect and customer first. Then the project cost is determined. This method involves the various trades to establish costs up front, identify cost saving/value engineering methods, and compensate for potential material shortages and scheduling requirements. This budgetary cost controls the balance of the design process and ensures that the drawings accurately reflect the requirements, budget and schedule of the customer.

Therefore, the Design Build approach offers the following advantages:

• Accurate costs established at a much earlier date.
• Drawings will be synchronized with the established cost.
• There will be no need to redesign the whole project in order to meet a specific price.
• The project can be completed in less time and at a lower overall cost.

Budget overrun risk is passed from the owner to the contractor for most issues.