Design-build vs. design-bid-build: the two main options for home construction. Which do you choose? Which is better? What are the advantages and disadvantages of each?
Jazz Construction Group here: We know that building a custom home is a monumental project. Alter one part of the build, and you could find yourself paying more than you expected for your new build.
Our design team and housing experts have pooled their resources to help break down the differences between each type of custom home construction project so that you can walk into your next custom build with knowledge, confidence, and peace of mind.
In this brief article, we’ll walk you through the difference between design-build and design-bid-build construction projects, examples of each delivery method, and specific contract-based issues that arise with each.
Grab your favorite note-taking tool, and let’s dive in.
Unpacking the design-bid-build process and project delivery method
In design-build projects, prospective owners decide what they want to build. Whether the build is an apartment complex, office complex, condominium, stadium, or custom-built 1,500 square-foot home, a design team that consists of architects and other stakeholders drafts a preliminary set of drawings and a project description for different infrastructure projects.
Next, the general contractor and the client visit a show room and meet with an interior designer to pick out materials. You can think of this process as a sort of shopping for the inside of a home.
Why go materials selection shopping with the client?
Interior design and materials shopping are important for the client, as upfront materials selection helps the client determine what they want the inside of their home to look like. Finally, the materials selection process helps clients determine what the finished product looks like, allowing the general contractor to give the client a more accurate price for the proposed build.
If working with a construction firm, the construction firm will identify all the materials needed to build the project. “So, for example, if the client is building a kitchen, they’ll determine the materials for their backsplash, kitchen tiles, and appliances, so fewer change orders need to be made later down the road once construction commences,” Ijaz “Jazz” Mirza, owner of Jazz Construction, says.
“We want to complete the materials selection process by the time the bid is sent out so that the bid includes the entire price and all of the allowances for the build. That way, clients can know how much their build costs before we start building,” Jazz continues.
In the bid-build process, based on the initial consultation, the general contractor gets buy-in for how much the client is willing to spend on interior design, fixtures, and more. That way, the general contractor can provide a more accurate cost estimate and cost allowances for the project.
With design-bid-build projects, clients can meet earlier and discuss material selections to help reduce the number of change orders for the project.
In other words, a little upfront planning on the design end can save a great deal of money in the future.
The design documents are then drafted and used to create a “bid package,” a collection of documents that includes all the information needed for construction contractors to submit a bid to build the project. The client (or project owner) then sends out their ideas to contractors in the construction industry so the contractors can bid on the project.
Then, the project owner evaluates the bids and selects a team to build the project. General contractors, construction builders, and other stakeholders then work together on the project.
In other words, first you design, then you bid, and then you build the project — hence the “DBB method.”
Advantages and disadvantages of design-bid-build construction management
With design-bid-build construction project delivery, you can expect the following:
- The most competitive pricing: Of the two project delivery methods, design-bid-build tends to offer more competitive pricing.
- Separate roles: Defining ownership between who designs and builds the project tends to be more clearly delineated in a design-bid-build project.
- Choosing vendors: With design-bid-build projects, the project owner chooses various stakeholders. The project owner also finalizes who will execute the project.
The disadvantages of design-bid-build projects include:
- Communication gaps: The downside of separating roles is that the contractor has less influence over different pieces of the project. One of the advantages of design-build construction teams is that all individuals are housed under one company, allowing for more streamlined and clear communication.
- Increased costs: If change orders are needed after construction begins, the project could cost more. The costs would be passed on to the project owner.
- More risk: With design-build teams, the responsibility of delivering the project lies squarely on their shoulders. In contrast, with the DBB method, specific processes are contracted out to different teams, meaning the lion’s share of the responsibility for changes lies on the project owner’s shoulders.
Unpacking the design-build process and construction project delivery
In contrast to design-bid-build projects is the design-build construction process. In design-build frameworks, the project owner decides what they want to build.
The construction projects can be a home, school, office complex, apartment complex, stadium, or other construction project. But, instead of hiring a designer to create a “bid package,” the project owner hires a single company for construction management and construction delivery.
For design-build construction management, a design-builder can be a construction company that also performs design work, or a design-builder can be a design company that also performs construction work.
In other words, the same company can both design and build the project, hence the term “design-builder.”
Advantages and disadvantages of design-build project management
The advantages of working with design-build teams include the following:
- More quality work: If you’ve decided on a design-build team, you’ve likely made your choice based on the team’s qualifications and quality, not the price of the build alone. In other words, quality builders will exceed performance expectations instead of trying to meet minimum requirements.
- Faster builds: By skipping the bid process — and by working with a single team from beginning to end — you can expedite decision-making processes, stay on schedule, and maintain your project’s timeline.
- Consistent conversation about budgetary concerns: By choosing your team early, you can start voicing questions about budget from the get-go. Collaborating early and often allows teams to voice concerns, identify issues, and share suggestions throughout the project’s trajectory.
- Fewer risks and increased communication: When designers, builders, and project owners are all on the same page, teams can reduce risks involved with building through more streamlined, consistent communication.
The disadvantages of design-build work include:
- Skipping out on competitive bids: Since projects aren’t given to teams based on the lowest bid, project owners may not receive the most competitive pricing for their build.
- Finding the right pricing for the work: Finding the right price can be trickier because you’re not able to select different contractors based on price. With that being said, quality, knowledgeable contractors often tend to work with you to find the right price points for your building needs.
Contract and bid concerns with design-build and design-bid-build projects
Whether using the design-build (DB) or design-bid-build (DBB) method, each involves separate contracts, timelines, and means of collaboration.
Prospective homeowners: to determine which setup is best for your needs, ask yourself the following questions:
- Would you like to hire a team to create a “bid package”, or would you prefer a design-builder, a one-stop shop for all your design and construction needs?
- Will you be using any consultants for your project?
- How will your design-builder or contracting team be selected?
- Would you like to control all aspects and phases of a project, or do you not mind relinquishing control to a trusted, knowledgeable design-builder?
- Are you on a tight schedule, or do you have more time to build your home?
- Are you looking for more collaboration between teams, or would you like to keep work roles separate between each contractors?
- How do you feel about the costs of your project?
Determining the answers to these questions will help you determine the right project management method for you. These answers will also help you determine which stipulations should (and shouldn’t) be included in contract documents.
At the end of the day, the best delivery method is the one that suits your needs and provides you with the answers that satisfy your project needs, timeline, and budget.
Food for thought (on the construction industry and design process)
Do you think great home staging would help you picture a property as your own? The National Association of Realtors (2025) determined that 83% of prospects find visualizing properties as their future homes easier when homes are staged.
We do just that at Jazz Construction. We make envisioning and building construction projects effortless.
From remodels to custom builds to additions and bump-outs, if you’re looking for inspiration, we’ve delivered dozens of quality finished products. If you need some food for thought for your next build, check out our extensive construction portfolio or our Instagram page.
Design-build vs. design-bid-build: which is best?
If you’re trying to determine which is best — the design-build method or the design-bid-build method — the answer relies on your timeline, amount of control you’d like with decisions, budget, and preference for communication and collaboration.
The great news is that when you choose a quality construction builder, the concern becomes less about which method is better and more about which builder will help me build the project of my dreams.
That’s how we operate at Jazz Construction Group. We’re here to make your vision a reality.
Our team has more than 20 years of experience delivering on-time and on-budget home builds and renovations for residents and businesses across New Jersey.
At the end of the day, our design-build team is here to make the design and construction phases a breeze, at a price that can’t be beat.
To learn more about our services, how our construction group works, or about building your next construction project, don’t hesitate to contact us today. We look forward to chatting and seeing what we build together.
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