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Architecture | Engineering | Featured | Operations

Design-Build Now Delivers Nearly Half of all Projects Nationwide

by DBIA on July 10, 2018

Design-build used to be considered an “alternative” way to build. New research shows it’s now the fastest growing and most popular method delivering construction projects in America.

Industry analysts at FMI have completed a comprehensive assessment of the nonresidential, highway/street and water/wastewater design-build construction market. This long-awaited research provides the most comprehensive look at design-build’s market size, direction, trends and drivers seen in years. It details how design-build is, literally, changing the way America builds.

“This research is incredibly important as design-build transitions from what used to be considered an ‘alternative delivery’ process, not so many years ago, to the preferred delivery method for a growing number of public and private Owners. Collaboration and innovation are delivering better projects that also achieve cost and schedule savings, which is especially important as cash-strapped states and communities have to do more with less,” said Lisa Washington, DBIA Executive Director/CEO.

Design-build’s growth is impressive. Data shows design-build is helping deliver vital infrastructure in all sectors and regions of the United States. Respondents report saving time and money while allowing for more innovation and collaboration to deliver better projects, leading to high design-build satisfaction and increased usage.

Here are highlights from the FMI Design-Build Market research:

Market Growth – Now and Into the Future

Overall, design-build is anticipated to account for 44% of construction spending in the assessed segments (nonresidential, highway/street and water/wastewater) delivering $1.2 trillion in construction put in place by 2021.

Design-build spending is anticipated to grow 18% overall, with the highway/street and water/wastewater sectors seeing 30% growth by 2021.

Design-build spending in Manufacturing (16%), Highway/Street (14%) and Educational (15%) represent the greatest percentage of design-build construction spending by segment over the 2018-2021 period.

The Mountain (6.3%), Pacific (6.1%) and South Atlantic (6.2%) census divisions are anticipated to yield the highest design-build growth rates.

Owners Give Design-build Their Highest Satisfaction Rankings

Experience with design-build was rated highest across all project delivery methods with 76% reporting very good and excellent experiences.

Over half of owners have already or will use design-build in the next five years.

Design-build utilization continues to expand into smaller project sizes (<$25 million) as owners continue to gain exposure to the benefits of design-build.

Opportunities to innovate and the ability to fast track a project were identified as top benefits associated with design-build.

Access the full FMI Design-Build Market Report here.

Topics: Architecture, Engineering, Featured, Operations
DBIA, Design-Build, project delivery

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