Assessing the Performance of Two-Step Design-Build Procurement

Design-Build (DB) is an alternative project delivery system that is distinguished by a DB team acting as the single point of responsibility for a project where the design and construction phases overlap. There are two main methods used to procure DB services: single-step procurement and two-step procurement. This paper focuses on quantifying the resource expenditures of two-step DB projects through investigating both pre-award and post-award metrics. The pre-award metrics include the costs related to the request for qualification (RFQ) and request for proposal (RFP) phases, whereas the post-award metrics focus specifically on overall project performance (e.g., project cost, delivery schedule, etc.) The authors developed a detailed survey to collect data from public building projects procured using two-step design-build procurement methods. This paper presents preliminary results, specifically the data stemming from six two-step DB projects completed after 2005 and with total project costs ranging from $20.5 million to $299 million. Results of the analysis show the total cost to industry to develop full proposals is about 1% of the total project cost. Additionally, the total proposal cost to DB teams was reduced significantly because of stipend incentives offered by the owners.