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Contracting guide

Design and Build vs Traditional Contracting: Which Is Right for Your Project?

One contract or two? How design and build compares with design–bid–build on timeline, cost certainty, control and accountability, and when each fits.

By CAD Construction Corporation · Updated

Key takeaways
  • Traditional contracting (design–bid–build) uses two contracts: one with the designer, then one with the contractor who builds the finished plans.
  • Design and build uses one contract: the same company is responsible for the design and the construction.
  • Design and build is usually faster and gives you one party accountable for cost and quality; traditional gives you more direct control over the design and lets contractors bid on identical plans.
  • Whichever you choose, plans must still be signed and sealed by licensed architects and engineers and approved for a building permit.

In traditional contracting you hire a designer first, then bid the finished plans out to contractors, so you hold two contracts. In design and build you sign one contract with a company that handles both the design and the construction. Design and build is usually faster with one point of accountability; traditional gives you more direct control over the design and competitive bids on identical plans.

Traditional contracting (design–bid–build)

This is the method most owners know. It runs in three stages:

  1. Design. You hire an architect and engineers to prepare the complete plans, specifications and bill of quantities.
  2. Bid. Contractors price the same plans, and you choose one.
  3. Build. The contractor builds to the plans while your designer checks the work.

Because the design is finished before bidding, quotations are easy to compare. The trade-off is time, since construction cannot start until design and bidding are done, and the split responsibility: if the plans and the site do not match, the designer and contractor may each point to the other.

Design and build

With design and build, one company takes responsibility for both. The design develops together with the cost estimate, the permit documents are prepared as part of the same scope, and construction can be planned while the design is being finished.

  • One contract and one point of contact for design, cost, schedule and quality.
  • Design priced as it develops, so you see the cost of choices before they are locked in.
  • Shorter overall timeline, because design, costing and permits overlap instead of running one after another.

The trade-off is that you give the builder more say in design decisions, so a clear written brief and budget at the start matter more.

Side-by-side comparison

Traditional (design–bid–build)Design and build
ContractsTwo: designer, then contractorOne
Design errors or gapsCan fall between designer and contractorThe design-and-build contractor is responsible
TimelineLonger; stages run one after anotherShorter; design, costing and permits overlap
Cost certaintyKnown once bids come in on complete plansDeveloped with the design; fixed once the design is agreed
Owner control of designHigh; your designer works only for youShared; set out in your brief and approvals
Comparing contractorsEasy; everyone prices the same plansHarder; compare proposals, track record and value
Best forOwners with time, a designer they trust, or a design-led projectOwners who want speed, a fixed budget and one accountable party

When traditional contracting fits

  • You already have, or want, an architect who works only for you.
  • The design itself is the priority, such as a signature building or a detailed custom home.
  • You want several contractors to price identical plans.
  • You have time for design and bidding to finish before construction starts.

When design and build fits

  • You have a fixed budget or opening date, such as a store, office, clinic or plant.
  • You want one company to answer for design, cost, permits and quality.
  • Your requirements are clear but you do not have plans yet.
  • You would rather not manage the designer and contractor separately.

Questions to ask a design-and-build contractor

  • Which licensed architects and engineers will sign and seal the plans?
  • What exactly is included: design, permits, construction, furnishings, utilities connection?
  • At what stage is the contract price fixed, and how are changes priced?
  • Who owns the drawings, and can you use them if the contract ends early?
  • Can you see completed projects of a similar type and size?

The same checks apply as for any builder. See our 10-point contractor checklist and the building permit process.

Working with CAD Construction

CAD Construction Corporation offers both. Bring us finished plans and we build them under general construction, or start with a brief and budget and we take it from concept to turnover through design and build. We have completed more than 300 projects across Luzon since 1985. Message us for a quotation.

Frequently asked questions

Is design and build cheaper than the traditional method?

Not automatically. Design and build often saves time and reduces costly changes, because the design is priced as it develops. Traditional contracting can produce sharper prices when several contractors bid on the same complete plans. Compare total cost, schedule and risk, not just the contract price.

Who owns the plans in a design and build contract?

It depends on the contract. Agree in writing who owns the drawings and whether you can use them if the contract ends early. The plans must still be signed and sealed by licensed professionals.

Can I start with my own architect and still use design and build?

Yes. A common middle route is to have your architect prepare the concept and key requirements, then engage a design-and-build contractor to complete the technical design and build it.

Do government projects use design and build?

Some do, under the rules of the government procurement law, but most public works in the Philippines are still bid out on completed plans. Private owners are free to choose either method.