What is a delivery method in construction?
A delivery method is the structure an owner uses to buy a building: who designs it, who builds it, who holds which contracts, and who carries the risk when cost or schedule moves. Common methods are design-bid-build, design-build, CM at risk, and integrated project delivery. It differs from contract type, which sets how the money works.
A delivery method (often called a project delivery method) is the framework that sets up the relationships on a job. It answers three questions before anyone draws a line: who is under contract with the owner, when the builder gets involved, and how the price is set. The common methods are design-bid-build, design-build, construction management at risk, and integrated project delivery.
Delivery method and contract type are not the same thing. Delivery method is the org chart. Contract type is how the money works: lump sum, cost plus, GMP, or unit price. A design-build job can be lump sum or GMP. A CM at risk job is usually GMP. Mixing up the two causes a lot of confused conversations in owner meetings.
The main delivery methods side by side
| Method | Owner's contracts | When the builder joins | Who carries design risk |
|---|---|---|---|
| Design-bid-build | Separate contracts with the designer and the builder | After design is complete, through bidding | Owner, through the designer |
| CM at risk | Separate contracts with the designer and the CM | During design, for preconstruction services | Owner, with CM input on constructability |
| Design-build | One contract with the design-builder | At the start, before or with design | Design-builder |
| Integrated project delivery | One multi-party agreement | At the start, as a core team member | Shared among the parties |
The owner's choice drives almost everything the contractor does next: how estimating is staffed, when preconstruction starts, how much design risk the builder carries, and how change orders get argued.
How the delivery method plays out on a real job
Say a school district is building a $14 million classroom addition. Under design-bid-build, the architect finishes the drawings, the district advertises, and the low responsive bidder wins. The general contractor first sees the plans when the bid package goes out, prices them in three or four weeks, and lives with whatever gaps the drawings carry. Every missing detail becomes an RFI and, often, a change order.
Under CM at risk, the same district hires a construction manager during schematic design. The CM prices the job at each design milestone, runs constructability reviews, and later commits to a guaranteed maximum price. The CM gets paid for preconstruction services and has a voice in design, but it also signs up to a ceiling on cost.
Under design-build, the district signs one contract with a team that both designs and builds. Design errors are now the builder's problem, which shrinks the owner's exposure to change orders but means the builder needs strong design management and good contingency planning.
Common mistakes and disputes
- Bidding a design-build job like a hard-bid job. If you carry the design, you carry the risk of what the design leaves out. Price it.
- Ignoring public procurement rules. Many public owners can only use alternative methods when a statute allows it, and the rules differ by state and agency. Check the solicitation and the authorizing law before chasing the work.
- Assuming the GMP covers everything. A guaranteed maximum price is built on a defined set of documents and assumptions. Scope added after that point is a change, but only if the assumptions were written down.
- Unclear roles under CM at risk. Who owns the design gaps, the architect or the CM? Spell it out in the contract, not in the kickoff meeting.
Related terms
See project delivery, owner's representative, fast-track construction, and best-value procurement. For how risk shifts between methods in the contract language, read how to read a construction contract before signing.
Frequently asked questions
What is the most common construction delivery method?
Design-bid-build is the traditional method and is still widely used on public work, because it fits low-bid procurement rules. Design-build and CM at risk are common alternatives where the owner is allowed and wants earlier builder involvement.
Is design-build a delivery method or a contract type?
Design-build is a delivery method. The design-build contract itself can be priced as a lump sum, a GMP, or cost plus a fee.
Who chooses the delivery method?
The owner chooses it, usually with advice from its architect, owner's representative, or program manager. Public owners are often limited to the methods their enabling statutes allow.
Does the delivery method affect subcontractors?
Yes. On CM at risk and design-build jobs, trade contractors may be brought in early for design assist or design-build scopes, and their subcontracts often carry more design responsibility than a hard-bid subcontract.
