DESIGN-BUILD BUYER’S GUIDE:
PROCUREMENT, CONTRACTS AND PROJECT EXECUTION
THE KORTE COMPANY | 2
Design-Build is a construction delivery method that provides owners
a single point of contact for design and construction services. One
entity holds single-source responsibility and contractual risk for pre-
construction, design and construction stages of the project. This entity
manages all contracts, including those with subcontractors, equipment
vendors and materials providers.
There are three phases of Design-Build projects:
1 Procuring Design-Build services
2 Contracting for Design-Build services
3 Design-Build project execution
This guide covers the benefits of Design-Build, shows what
Design-Build project execution looks like in practice and provides
guidelines for procuring Design-Build services and contracting
with Design-Build entities.
THE KORTE COMPANY | 3
1. PROCURING DESIGN-BUILD SERVICES
When approaching a major construction project, you face many decisions directly tied to
the project’s critical path. These include design, construction, contract formats, selecting
a construction solutions provider and more. You don’t just want a builder, you want a
problem solver — a partner — who delivers innovative construction solutions and provides
the best value through each decision. After all, this construction project may be one of the
biggest investments your company ever makes. This section covers the crucial aspects of
procuring Design-Build services and selecting a Design–Build partner.
BENEFITS AND ATTRIBUTES OF DESIGN-BUILD
Design-Build affords many advantages over construction management at risk (CMR) and
design-bid-build (DBB). Design-Build is the fastest, most cost-effective method, and it
offers the best quality.
THE KORTE COMPANY HAS DELIVERED
NEARLY 55,000,000 SQUARE FEET OF
DESIGN-BUILD PROJECTS.
THE KORTE COMPANY | 4
MOST CONSTRUCTION IS DESIGN-BUILD
44% 18% 16%
By 2021, Design-Build will The number of Design-Build 16% of Design-Build projects
represent 44% of all construction projects is expected to increase are for manufacturing facilities.
projects in the U.S. 18% by 2021.
OVER THE PERIOD 2018 – 2021, OWNERS WILL
HAVE SPENT $1.2 TRILLION ON DESIGN-BUILD
CONSTRUCTION PROJECTS.
THE HIGHEST-RATED The Design-Build delivery method is the most highly rated
across key planning and construction categories, according
DELIVERY METHOD to surveyed owners.
Design-Build CMR DBB
More opportunities to innovate
Ability to fast-track project
Highest quality
More collaborative process for the owner
Final cost closest to budget
Early knowledge of cost
Shorter procurement period
Fewer disputes
THE KORTE COMPANY | 5
WHAT MAKES DESIGN- DESIGN-BUILD IS
BUILD DIFFERENT? FASTER AND MORE
EFFICIENT
SINGLE-SOURCE RESPONSIBILITY AVERAGE DELIVERY SPEED
One entity controls design and construction. This eliminates
4704 ft2/mo.
contractual disputes and provides flexibility for the Design- 3655 ft /mo.
2
Builder to form the best team with partners.
1721 ft2/mo.
CREATIVE SOLUTIONS WITHIN THE DESIGN PHASE
Early involvement of the construction team enhances DBB CMR DB
constructibility and maximizes team cohesion.
Design-Build is significantly faster:
DESIGN ALTERNATIVES DRIVE PROJECT VALUE
36% 13%
Close collaboration allows ownership and design teams to
assess and select design alternatives that maximize project
value while reflecting owners’ unique needs. Faster than DBB Faster than CMR
COSTS ARE REDUCED WITH DESIGN-BUILD
LESS SCHEDULE GROWTH
Design-Build as a lower unit cost:
Design-Build projects resulted in 1.7%
less schedule growth compared to
0.3% 1.9% DBB and 3.9% less compared to CMR.
Lower unit cost Lower unit cost
than DBB than CMR
Design-Build costs grow slower:
3.8% 2.4%
Less cost growth Less cost growth
than DBB than CMR
A DELIVERY METHOD ACCEPTED BY FEDERAL,
STATE AND LOCAL AGENCIES
Established the Best-Value, Two-Phase Source
Selection Process.
THE KORTE COMPANY | 6
DESIGN-BUILD PROCUREMENT
Owners can select either of two principal procurement methods to
ensure a Design-Build partner is suited to complete a construction
project that addresses their immediate and long-term needs.
QUALIFICATIONS-BASED SELECTION
• Establishes qualitative and quantitative criteria to be evaluated.
• Relative importance of evaluation criteria is clearly defined.
• Focuses heavily on qualifications of Design-Builders and key team members.
• Has teams demonstrate history of successful Design-Build project delivery.
• Requires early participation of core trade contractors.
BEST VALUE SELECTION
• Specific criteria are defined to obtain price and technical proposals.
• Establishes a clear evaluation and selection process; ensures the process is fair,
open and transparent.
• Values both technical concepts and price within the selection process.
• Encourages open and candid exchange of concepts, concerns and ideas.
• Conducts confidential meetings with shortlisted proposers prior to the submission
of technical and price proposals.
• Protects proprietary information of the proposers and provides opportunity
for debriefing session.
DESIGN-BUILD IS A STRONG SOLUTION FOR COMPLEX PROJECTS LIKE:
Large builds
?
Challenging job sites Tight schedules and
fast-track projects
Construction phasing
THE KORTE COMPANY | 7
2. CONTRACTING FOR DESIGN-BUILD
SERVICES
The use of fair and clear contracts is key to any delivery process. It’s important to note
key differences between Design-Build contracts and those for other delivery systems.
One should fully understand contract language and its practical application. It’s equally
important to understand Design-Build principles and incorporate them into the contracts
of the entire Design-Build team.
DESIGN-BUILD CONTRACTS SHOULD BE FAIR,
BALANCED AND CLEAR
They should identify significant project-specific risks and reasonably allocate them to
the party best capable of addressing and mitigating that risk. They should encourage
communication between stakeholders.
MORE THAN 90% OF OUR BUSINESS
IS DESIGN-BUILD.
THE KORTE COMPANY | 8
DESIGN-BUILD CONTRACTUAL RELATIONSHIP
DESIGN-BUILD Owner manages only one contract with a single point of
responsibility; designer and contractor are on the same team,
PROJECT DELIVERY providing unified recommendations, not excuses.
SUB-CONTRACTORS
OWNER DESIGN-BUILDER
DESIGNERS
SUB-CONSULTANTS
TRADITIONAL Owner must manage two separate contracts; owner becomes
middleman, settling disputes between the designer and the
PROJECT DELIVERY contractor. Designer and contractor can easily blame one
another for cost overruns and other problems.
CONTRACTOR SUB-CONTRACTORS
OWNER
DESIGNER SUB-CONSULTANTS
THE KORTE COMPANY | 9
3. DESIGN-BUILD PROJECT EXECUTION
To deliver a project of the highest caliber, it’s essential to create direct and real-time
communication between the owner and the Design-Build team. The process is called
Interactive Collaboration and has been proven to produce successful facilities for some of
the most innovative companies throughout the U.S.
INTERACTIVE COLLABORATION BENEFITS
OWNERS
AGGRESSIVE SCHEDULES ARE POSSIBLE
• Projects can be fast-tracked.
• An early start is achievable.
• Design-Build teams “nest” multiple project phases, purposely starting
elements of construction early (during design).
• Results in expediting design and construction for faster delivery.
• Similar to just-in-time (JIT) inventory in manufacturing.
THE KORTE COMPANY | 10
SUBCONTRACTORS PARTICIPATE FROM THE ONSET OF A PROJECT
• Interactive Collaboration fosters honest, open communication.
• Unique, added value — team members with different areas of expertise and skill sets
suggest innovative solutions.
DESIGN-BUILD TEAMS COMPRISED OF DESIGN-BUILD SUBCONTRACTORS AND PARTNERS
• Projects are a collaborative effort among a unified team.
• Partners have often worked together on other projects.
• Most specialty contractors have specific Design-Build experience.
OPEN COMMUNICATION BETWEEN KEY TEAM MEMBERS
• Communication is the most powerful tool in collecting ideas and constructing
ideas with real value.
• Direct and real-time communication facilitates efficient and real-time solutions.
• Knowledgeable, innovative decisions are made by those who are most capable.
THE JOB IS THE BOSS®
THE KORTE COMPANY | 11
A CORPORATE VISION IS REALIZED
• Vision is represented through tangible design and construction elements.
• Represents long-standing value and transforms the attributes of the corporate
vision into a physical entity.
• A result of the Design-Build approach.
THE DESIGN-BUILD PROJECT TEAM ENSURES CONSTRUCTION SCHEDULES ARE MET
• Owners receive clear, realistic and expeditious submittal and review processes.
• Design-Builder facilitates and monitors significant elements of the project.
• Key stakeholders interface directly with Design-Build team to review and
manage progress.
• Decisions that impact project goals, including schedule, are evaluated and executed
in a collaborative environment.
• Transparency supports the owner’s ability to make informed decisions throughout
the Design-Build process.
THE KORTE COMPANY | 12
COMPARISON OF PROJECT DELIVERY METHODS
ACROSS VARIED PROJECT TYPES AND SECTORS
METRIC DB VS. CMR CMR VS. DBB DB VS. DBB
Unit cost 1.9% less 1.6% more 0.3% less
Cost growth 2.4% less 1.4% less 3.8% less
Schedule growth 3.9% less 2.2% more 1.7% less
Construction speed 13% faster 20% faster 36% faster
PROJECT OWNERSHIP
• Owner defines and directs most cost-effective use of funds.
• Directly influences how and where to invest in the project.
• Opportunities can be assessed and acted upon.
• Results in a product that best reflects owner’s needs and corporate vision.
Source: “Design-Build Data Sourcebook,” Design-Build Institute of America, (2018)
THE KORTE COMPANY | 13
In 1958, The Korte Company was founded on the principle that the Job is
the Boss. Our teams are custom-built for each project, composed of an
all-star cast selected specifically for the task at hand. With an integrated
Design-Build approach, our teams are free to do what’s right for the job.
Project challenges become opportunities — to think, to find innovative
solutions, to build smart. Our approach has made us one of the nation’s
largest and most successful Design-Build contractors. It’s how we get the
job done. On-budget. On-time. Every time.
Let’s talk.
HIGHLAND, ILLINOIS
LAS VEGAS, NEVADA
ST. LOUIS, MISSOURI
OKLAHOMA CITY, OKLAHOMA
www.korteco.com
