So you are looking to hire a designer and contractor for your new home project, but aren't sure where to start? Are you grappling with the challenges of whether to choose a design-build or design-bid-build construction process? Here we will break down the two systems and give some pros and cons for each to help you decide which project system is right for you.
What are we talking about?
Construction project delivery methods determine how all stakeholders work together throughout each phase of a build. Two of the most common approaches are design-build and design-bid-build. Although their names may sound alike, they involve very different roles and responsibilities for the owner, designer, and contractor.
Selecting the right delivery method can influence everything from the construction timeline and project quality to the contractor’s profit margin. To make the best choice, project owners should consider factors such as project complexity, available expertise, and their comfort level with risk.
1. Design-Bid-Build
Design-bid-build is the traditional, owner-led project delivery method. In this model, the owner first contracts separately with architecture and engineering teams to fully design the project. Once the design is complete, the owner then enters into a second contract with a general contractor to execute the construction.
During the design phase, the owner, architects, and engineers work collaboratively to develop a complete and detailed plan before the project is opened for contractor bids. After the design is finalized, the owner solicits bids and selects the general contractor who will carry out the construction. Once the contractor is chosen, both parties establish a formal agreement, and construction begins.
Throughout the build, the general contractor manages the construction process and initiates change orders if any part of the design requires modification. Each change order includes an explanation of the needed adjustment and an estimate of associated costs, which the owner must review and approve.
At the end of the project, the contractor walks through the completed work with the owner and formally hands over the final product.
How it Works
- Design Phase:
You hire an architect or designer to create the full plans. - Bid Phase:
Those plans are sent to builders/contractors to request bids (quotes). - Build Phase:
You choose a builder, and they construct the home according to the plans.
Pros
- You have full control over the design before construction begins.
- Competitive bidding may lower costs.
- Roles and responsibilities are clearly separated.
Cons
- If issues arise during construction, your architect and builder may disagree—you become the mediator and problem solver.
- Changes to the design after bidding is complete can increase your costs.
- Projects often take longer because each phase is separate.
- Longer build times can make your project susceptible to cost increases from external market changes
2. Design-Build
This is a more modern, streamlined approach. In a design-build delivery method, the owner contracts with a single firm responsible for both the design—covering architecture and engineering—and the construction of the project. This approach differs from the traditional design-bid-build method in two key ways.
First, design-build encourages continuous collaboration among all stakeholders throughout every phase of the project. Second, it allows for a more accelerated schedule, since construction can begin before the design is fully finalized.
Because the design and construction functions are combined under one contract, the construction team can start work earlier, while designers remain involved and can adjust plans as the project evolves. During preconstruction, the owner identifies potential sites, outlines the project vision, and establishes a preliminary budget. A Request for Proposal (RFP) is then issued to invite design-build teams to submit their qualifications and approach. Once a team is selected, they refine the scope, schedule, design, and final contract cost.
How it Works
- You hire one company to handle both the design and construction.
- The team collaborates from the beginning, and the project moves in one continuous flow.
Pros
- Faster project timeline.
- Fewer communication problems (one team handles everything).
- More flexibility for design changes during construction.
- Often more cost-predictable since design and construction are aligned.
- Responsibility for the project rests with one firm so there cannot be a blame game between your designer and contractor if issues arise.
Cons
- Fewer bidding stages; fewer price comparisons.
- You rely heavily on a single company.
Design-Bid VS. Design-Bid-Build Matrix
Conclusion
Traditional design-bid-build home construction is still a perfectly good option in 2025, but design-build does offer some advantages in both speed and cost management. Here at Novell, we are a design-build company, but that doesn't preclude us from using the more traditional home building approach. Ultimately the choice is up to you. If you are looking for just a designer, only a builder or a company to do both, contact us for a free consultation here.
