$2.6 Trillion design-build transformation by 2028

The $2.6 Trillion Design-Build Transformation: Why Developers Are Switching

The construction industry is evolving, and savvy commercial developers are increasingly turning to design-build delivery methods to avoid the costly pitfalls of traditional construction approaches. If you’re tired of budget overruns, timeline delays, and finger-pointing between architects and contractors, it’s time to understand why design-build might be the game-changer your next project needs.

What Is Design-Build Construction?

Design-build is an integrated project delivery method where a single entity handles both the design and construction phases of your project. Unlike traditional construction, where you hire separate teams for design and building, design-build creates a unified approach with one point of responsibility and accountability.

Think of it as having a quarterback who coordinates the entire play rather than hoping two separate teams figure out how to work together.

Traditional Construction: The Cost Disconnect

In traditional construction delivery, the process looks like this:
  1. You hire an architect to design your project
  2. The design is completed and put out for bid
  3. You select a contractor based primarily on price
  4. Construction begins, often with the contractor seeing the plans for the first time
The Problem? This fragmented approach creates a perfect storm for issues:
  • Budget surprises: Contractors discover design elements that are expensive to build
  • Timeline delays: Design changes require going back to the architect
  • Finger-pointing: When problems arise, the architect blames the contractor and vice versa
  • Value gaps: Opportunities for cost savings are missed because the builder wasn’t involved in design decisions

Design-Build: The Integrated Advantage

With design-build, your construction team is involved from day one. Here’s how it transforms your project:

1. Real-Time Value Engineering
When your builder is part of the design process, they can identify cost-saving opportunities immediately. For example, in hospitality projects, we’ve helped clients navigate hotel brand standards creatively – finding ways to achieve the required look and feel while significantly reducing costs through material selections and construction methods that architects working in isolation might not consider.

2. Streamlined Communication
One contract, one point of contact, one team accountable for results. No more playing telephone between your architect and contractor while your project timeline suffers.

3. Faster Project Delivery
Design and construction phases can overlap, with construction beginning on foundations while upper-level details are finalized. This parallel processing can shave months off your timeline.

4. Budget Certainty
Because the construction team understands the real costs of design decisions, you get more accurate pricing upfront and fewer change orders down the road.

 

Where Design-Build Shines: Real-World Applications

Senior Living Projects
Senior care construction presents unique challenges – working around occupied spaces, meeting strict regulatory requirements, and managing specialized systems. Design-build allows for seamless coordination between MEP engineers, architects, and construction teams to solve these complex puzzles efficiently.
See our Senior Living Projects
Hospitality Development
Hotel projects involve intricate brand standard requirements and tight profit margins. Having your construction team involved in design decisions means creative solutions for meeting brand requirements while controlling costs – something that’s nearly impossible when the contractor sees the plans for the first time at bid.
Check out the hotels we’ve built
Commercial Renovations
When renovating existing commercial spaces, surprises are inevitable. Design-build teams can adapt quickly, making real-time decisions that keep projects moving forward rather than stopping for lengthy design revisions.
View Commercial Projects

The Financial Impact: Why CFOs Love Design-Build

Smart financial leaders are drawn to design-build for measurable reasons:
  • Reduced change orders: Industry studies show design-build projects typically have 5-10% fewer change orders
  • Faster ROI: Shorter timelines mean you’re generating revenue sooner
  • Predictable costs: Integrated teams provide more accurate initial budgets
  • Risk transfer: One entity is responsible for both design and construction performance

Common Concerns About Design-Build (And Why They're Overblown)

1. “I’ll lose design control.”

Not true. You’re still the decision-maker on all design elements. You simply have a construction expert at the table helping you make informed choices about cost and buildability.

2. “Design-build is more expensive upfront.”

While design-build might have higher initial fees, the total project cost is typically lower due to fewer change orders, faster delivery, and value engineering throughout the process.

3. “I won’t get competitive pricing.”

Professional design-build contractors still competitively bid subcontractor work and maintain relationships with multiple suppliers to ensure competitive pricing.

Choosing the Right Design-Build Partner

Not all design-build contractors are created equal. Look for:
  • Sector expertise: Experience in your specific project type (hospitality, senior living, etc.)
  • Integrated teams: Traveling superintendents and project managers who truly integrate with your team
  • Value engineering track record: Proven ability to find cost savings without compromising quality
  • Transparent communication: Partners who provide honest, upfront communication about challenges and solutions

The Bottom Line

Design-build isn’t just a delivery method – it’s a strategic advantage. When your next commercial project needs to hit aggressive timelines, stay within budget, and deliver exceptional results, the integrated approach of design-build provides the coordination and accountability that traditional methods simply can’t match.

The question isn’t whether design-build works – it’s whether you can afford to keep using fragmented approaches that leave money on the table and add unnecessary risk to your projects.
Ready to explore how design-build could transform your next commercial project? The conversation starts with understanding your specific goals and challenges.

Sources:

1. Design-Build Institute of America (DBIA) – FMI Research Projections, https://dbia.org/impact/

2. FMI 2024 Design-Build Utilization Study https://dbia.org/blog/new-fmi-report-2024/

3. Design-Build Institute of America – Industry Research https://dbia.org/wp-content/uploads/2024/04/DBIA-2023-Mid-Cycle-Survey-Report-FMI.pdf