Researchers at TTI’s Transportation Policy Research Center recently completed a study examining specific characteristics of highway projects using the design-build method, which is sometimes pursued over more traditional approaches as a way to reduce project duration and cost. The design-build approach enables the state to execute a single contract for both the design and construction awarded on either a low-bid or best-value basis. In contrast, design-bid-build requires two separate contracts.
The approach has been popular in Texas, where nearly all of the state’s design-build project contracts from 2009 to 2015 were located in the state’s four largest metropolitan areas: Houston, Dallas-Fort Worth, Austin, and San Antonio. Several of those have been completed or are nearly finished, and researchers say the results have been positive.
In examining other case studies, researchers found instances of limited benefits of design-build, as most academic studies on the topic varied widely in their findings. While a reduction in project change orders and lower legal expenses have the potential to reduce costs, evidence of project cost savings was mixed. The same was true for claims of improved project quality. The design-build approach did produce time savings in some cases, mostly due to the elimination of a second procurement process.
Read the full report, “Design-Build Highway Projects: A Review of Practices and Experiences Phase I Report,” by Research Scientist, Dr. Jeff Borowiec and his team of research scientists.