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The design-build process can be broken down into five main steps: team selection, project planning, design, GMP/bidding, and construction. For the most part, these steps will happen sequentially, but not necessarily independent of one another. The project planning, design, and bidding phases may overlap.
A lump sum contract, also known as a stipulated sum contract, is a construction agreement in which the contractor agrees to complete the project for a predetermined, set price. Under a lump sum agreement, the contractor submits a total project price instead of bidding on each individual item.
The owner benefits by paying only the actual reimburs- able costs and knowing that the project won't exceed an ultimate price ceiling. The contract includes a fixed fee. The contract also includes an incentive provision for sharing some or all cost savings to control costs within the price ceiling.
Therefore, a "design and build" contract, in the absence of any terms to the contrary, necessarily incorporates a lump sum contract and is a subset of lump sum contracts.
The successful proposer is selected based on a number of factors including past experience, ability to innovate, cost, and any other specific factor the Owner chooses (e.g. the number of local sub-contractors used, the environmental approach, etc.).
Use of the Design-Build family of AIA Contract Documents is appropriate when the project delivery method is design-build. In design-build project delivery, the owner enters into a contract with a design-builder who is obligated to design and construct the project.
Design-Bid-Build (DBB)Two separate contracts: owner to designer and owner to contractor.
In Design/Bid/Build, also known as the general contracting project delivery method, the process is linear, where one phase is completed before another phase is begun with no overlap. This is the traditional method of project delivery and has been the most widely used construction delivery method since ancient times.
In Malaysia. Design-build is a project procurement process where one entity is contractually responsible. for both design and construction. The process consists of six stages namely Project Definition, Request. for Qualification, Request for Proposal, Proposal Submission and Evaluation, Contract Award, and.