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Guide · Process · 12 min read

The Design-Build Process: How It Works and When It Fits

Design-build means one company designs, engineers, permits and builds your project under one agreement, instead of you hiring a designer and then bidding the drawings to contractors. It fits remodels where structure, budget and design affect each other. The trade-off is less price competition at the end in exchange for cost control throughout.

Reviewed by Marcus T. Alvarado · WA L&I ECDENGC812K4

What are the ways to deliver a remodel?

Every remodel needs the same things: a design, engineering where structure changes, a permit and construction. What differs is who you hire to do them and in what order. There are four common arrangements.

Design-bid-build

You hire an architect or designer, who produces drawings with an engineer. The drawings go out to several contractors for bids, and you choose one to build. This is the traditional model, and it gives you competitive pricing on a fixed set of drawings.

Design-build

One company is responsible for design, engineering, permitting and construction. You work with the same team from first meeting to final inspection. Pricing develops alongside the design rather than arriving at the end.

Owner as general contractor

You hire the designer, then hire each trade yourself and manage the schedule. It can save the general contractor's overhead, but you take on coordination, scheduling, inspection readiness and the risk of gaps between trades.

Construction manager

A contractor joins early as an advisor during design, then manages construction for a fee, often with an agreed maximum price. Common in commercial work, less so in residential remodels.

How do the models compare side by side?

QuestionDesign-bid-buildDesign-buildOwner as GC
Contracts you signTwo or moreOneMany
When you learn the costAfter drawings are completeDuring design, refined at each stepAs each trade bids
Price competitionHigh at bid timeLower; relies on open-book pricingHigh per trade
Who resolves design-construction conflictsYou, between designer and contractorThe design-build companyYou
Typical total scheduleLongest, with a bid periodShorter; design and pricing overlapVaries with your availability
Best suited toWell-defined projects with flexible timingStructural remodels, additions, ADUsOwners with construction experience

When does design-build fit, and when does it not?

Design-build is strongest when the design and the cost are tightly linked. Structural remodels are the clearest case: whether a wall can come out, how deep the beam is, whether the footing needs replacing and what that does to the ceiling all affect both the design and the price. When one team answers those questions together, the design converges on something buildable at a known cost.

It also helps on tight schedules, because design, engineering, permit preparation and pricing can overlap instead of happening in sequence.

Design-bid-build can be the better choice when the scope is simple and fully defined, when you already have an architect you trust and want independent representation during construction, or when your priority is the lowest possible bid on a fixed set of drawings and you are comfortable managing changes that arise in the field.

How does pricing work in design-build?

In design-bid-build, price arrives once, at the end of design. In design-build, it arrives in stages, each more precise than the last.

  1. Budget range. After a site visit and a conversation about goals, the company gives a range based on similar projects and the structural concept.
  2. Schematic estimate. Once layout options exist, each is priced. You choose a layout knowing its cost.
  3. Detailed estimate. With construction drawings and selections, the estimate is built line by line from quantities and subcontractor pricing.
  4. Contract price. After permit approval, the estimate becomes the construction contract, with allowances for items not yet selected.

The safeguard in this model is transparency: ask to see how the estimate is built, including subcontractor quotes and markup. A design-build company that shares its numbers gives you most of the benefit of competitive bidding without the delays.

Which contract structures are common?

StructureHow it worksWho carries cost risk
Fixed priceOne price for the defined scope, with allowances and change ordersContractor, within the defined scope
Cost plus feeActual costs plus a fee or percentage, with open booksOwner
Guaranteed maximum priceCost plus fee up to a ceiling; savings may be sharedShared

Allowances deserve attention in any structure. An allowance is a budget placeholder for something not yet selected, such as tile or light fixtures. If you choose items above the allowance, the difference is added. Realistic allowances, based on what you actually like, prevent surprises late in the project.

What protections does Washington law give homeowners?

Washington requires contractors to be registered with the Department of Labor & Industries, carry a bond and hold liability insurance. You can verify all three through L&I's contractor lookup. For residential work, contractors must also give homeowners a written disclosure explaining that subcontractors and suppliers who are not paid may have lien rights against the property, and what the homeowner can do about it.

Practical protections follow from that: pay against completed milestones rather than far in advance, ask for lien releases from major subcontractors and suppliers as payments are made, and keep change orders in writing with price and schedule effect before work proceeds. L&I publishes consumer guidance on hiring contractors on its website.

What should you ask a design-build company?

  • Who on your team designs, who engineers and who runs construction? Are they employees or outside consultants?
  • How will the budget be updated during design, and can I see how estimates are built?
  • Do I own the drawings if I decide not to build with you?
  • How are allowances set, and how are change orders priced?
  • Who is my point of contact during design, and during construction?
  • What is your payment schedule, and what triggers each payment?
  • Can I speak with two clients whose projects were similar to mine?

Next steps if design-build fits your project

ECD's own process, step by step with durations, is on our How We Work page. If you want a budget before talking to anyone, start with a calculator.

Related questions

More about choosing a delivery model

Is design-build more expensive than bidding drawings?

Not necessarily. Bidding can produce a lower initial price, but projects bid from drawings that were never priced during design often see more change orders. Design-build tends to cost about the same in total while reducing time and surprises. The best comparison is total project cost at the end, not the bid.

Can I bring my own architect into a design-build project?

Often, yes. Some design-build companies work with an owner's architect, taking over engineering, pricing and construction once the design direction is set. This keeps the design relationship you value while adding the builder's input early. Agree at the start on who owns which decisions and drawings.

What if I disagree with the design-build company's estimate?

Ask to see the line items and subcontractor quotes behind it. You can also have an independent estimator review the numbers. If the drawings belong to you once design is paid for, you can bid them elsewhere, which is the ultimate check on a design-build price.

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