5
Guide to Different Construction Procurement Methods | ©2022 ProjectSight
1. Design-Bid-Build
Design-Bid-Build (DBB) is the most common procurement
method in the industry. In this method, the owner or owner's
representative works with a design firm to create the specs for
the project and then invites bids from contractors to build the
asset. The owner can choose the lowest bidder under a fixed-price
contract to keep costs low.
The advantage of this method is that it involves a transparent
tendering process, which reduces the owner's risk. On the other
hand, the process can be time-consuming, and the contractor
must assume a large amount of risk to ensure that the project is
completed on time and on budget.
The DBB method requires two contracts
in the design and planning phases—one to
cover design and the other for construction.
Responsibilities are divided between the three
main parties, contractor, designer and owner.
5
Guide to Different Construction Procurement Methods | ©2022 ProjectSight
