Popularity of an alternative delivery method referred to as progressive design-build (PDB) is increasing across the United States, and Dynamic is proud to be a part of Caltrans’ first ever PDB on the $128 million Coronado Bay Bridge project in San Diego. The Dynamic team has been involved in several PDBs, including some of the most complex infrastructure projects in the country, like LA Metro’s $393 million G-Line and others. Project owners look to Dynamic to provide input on their PDB programs and use our expert advice to deliver exceptional projects through this collaborative delivery method. When it comes to PDB and all alternative delivery, Dynamic is leading the way with ICE and scheduling services that truly add value.

We wanted to share some of the key differences between traditional design-build and PDB, as well as considerations when choosing between these two project delivery methods:

Key Differences between Traditional Design-Build and Progressive Design-Build Delivery Methods

Traditional Design-Build (DB):

• Contractual Relationships: Involves a contractor partnering with a design firm. The owner provides conceptual plans (often 30% complete or less) and requests a fixed price to complete the design and construction.
• Risk Allocation: The Design-Build team assumes significant risk by completing the design and estimating construction costs based on incomplete plans, leading to higher contingencies and bid time profit margin expectations.
• Budget and Quality: Quality and aesthetics can be compromised, as the contractor is working within a fixed hard budget, without early owner involvement and collaboration.
• Market Trends: High risk has led many top contractors to avoid Traditional DB, reducing competition and increasing project costs.

Progressive Design-Build (PDB):

• Design Progression and Flexibility: Allows design progression before finalizing the Guaranteed Maximum Price (GMP). Estimates are provided at stages (e.g.,30%, 60%, 90%) before finalizing the GMP, with the owner able to off-ramp the contractor at any design stage.
• Risk Mitigation: Lower risk for contractors due to more accurate cost estimates at higher design completion percentages.
• Construction Speed and Benefits: Enables early construction starts while design continues, expediting timelines and offering schedule savings.

Advantages and Disadvantages of Progressive Design-Build vs. Traditional Design-Build

Advantages of Progressive Design-Build (PDB):

• Enhanced Collaboration and Flexibility: Early and continuous collaboration helps identify and address potential issues, with the owner retaining flexibility in decision-making stages.
• Improved Cost Certainty and Risk Management: More accurate cost estimates reduce the need for large contingencies, leading to potentially lower overall costs.
• Expedited Project Delivery: Early construction starts and overlapping design and construction phases accelerate project completion.
• Quality and Performance: Maintains higher quality standards with the ability to off-ramp contractors, ensuring accountability.

Disadvantages of Progressive Design-Build (PDB):

• Potential for Increased Initial Costs: Involvement of key parties early can increase initial design and preconstruction costs.

Advantages of Traditional Design-Build (DB):

• Virtually all risk is shifted from the owner to the Design-Builder at bid time.
• Allows for selection of the Design-Builder with a hybrid model that involves both qualifications and cost, allowing for a “best value” type of selection.

Disadvantages of Traditional Design-Build (DB):

Limited Flexibility:  Project owners have less say in the design of the project, and design input is usually limited to minimum standards of quality. Project aesthetics are usually compromised with traditional DB, due to the competitive nature of pricing at time of bid.

With all the risk shifting to the Design-Builder at time of bid, this comes with a significant price tag to project owners, as contractors tend to demand margins in excess of 25% to account for risk contingency with traditional DB.

Quality and Performance Concerns: Fixed-price nature may incentivize cost-cutting, leading to potential quality issues.