Design-Build Effects on a Construction Company: A Case Study

A comparative study of the design-build and non-design-build project delivery experiences of one construction company was conducted to measure the advantages and disadvantages of both delivery methods. Five categories—business practices, employee satisfaction, safety, labor costs, and profit margins—were selected for study. The categories gave a broad analysis of the effect each project delivery method had on the construction project team. The business practice review revealed four categories of importance in design-build practices: team member roles and relationships, risks, strategies, and owner relationships. The employee survey targeted the contractor’s field-level management and consisted of seven open-ended questions. The respondents were consistently optimistic about design-build practices within the company. The contractor’s design-build and non-design-build safety records, from 1991 through 1997, were compared. The results indicated that the design-build projects experienced more minor accidents but fewer major accidents. Labor reports from two similar highway projects, one design-build and one design-bid-build, were compared. The design-build project had lower labor costs but increased quantity and cost variability. The profit margin analysis revealed that design-build project average profit margin was 3.5 percent greater than non-design-build.