International Research Journal of Engineering and Technology (IRJET)
e-ISSN: 2395-0056
Volume: 12 Issue: 05 | May 2025
p-ISSN: 2395-0072
www.irjet.net
Financial Impact of Design-Build and Design-Bid-Build on Initial Design and Construction Costs in Multi-Storey Buildings Shrijith.R1, Fathima Taskeen Z 2 1Student, Faculty of Architecture, Dr. M.G.R. Educational and Research Institute. Chennai, India 2Asst H.O.D, Faculty of Architecture, Dr. M.G.R. Educational and Research Institute. Chennai, India
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Abstract - This study critically evaluates the financial
allowances—is essential for optimizing financial outcomes. To investigate this, a structured approach is followed that compares the cost behaviour and performance indicators under DB and DBB methods. This enables clearer insights into their financial implications and helps inform better decision-making for future project planning.
implications of Design-Build (DB) and Design-Bid-Build (DBB) delivery methods on the initial design and construction costs of multi-storey buildings. It evaluates key components such as design fees, procurement, labor, and contingencies using two live case studies from Chennai, the study aims to assess how integration and sequencing in project delivery influence cost efficiency. To facilitate comparison, Cost performance Indicators like Construction Cost Overrun (CCO) and Cost Performance Index (CPI) are utilized to capture deviations and measure financial efficiency during execution. Additionally, the study will propose recommendations aimed at optimizing project delivery methods to achieve better financial outcomes.
1.1 Problem Identification In urban construction, the choice of delivery method significantly impacts a project's initial costs. Cost escalations often stem from inefficiencies in task distribution and sequencing rather than material or labor fluctuations. Design-Bid-Build (DBB) projects, with separate entities managing design and construction, frequently face delays and coordination issues. DesignBuild (DB) integrates both aspects under one contract, offering efficiency but potentially reducing design control. The construction sector struggles with aligning timelines and costs due to inconsistent implementation of these methods. Despite widespread use, lack of contextual analysis hinders stakeholders' ability to predict cost effectiveness. This study addresses this gap by examining how DB and DBB influence early financial stages of multistorey construction projects. By exploring their structural and cost-related behaviors, the research aims to identify which approach better supports financial efficiency, providing valuable insights and recommendations to optimize project delivery and cost management in the construction industry.
Key Words: Design-Build, Design-Bid-Build, Project Delivery, Initial Cost, CPI, Cost Overrun, Procurement, Risk Allocation 1.INTRODUCTION In today’s construction industry, selecting the right project delivery method is crucial in shaping both the financial structure and execution efficiency of a project. Among the widely adopted approaches, Design-Build (DB) and Design-Bid-Build (DBB) offer contrasting frameworks that significantly impact cost control, coordination, and risk allocation. DB offers a unified contract that merges design and construction responsibilities, facilitating faster execution and integrated collaboration. Meanwhile, DBB maintains separate contracts, providing greater design freedom but often resulting in communication gaps and project delays. These fundamental differences influence not only the coordination of work but also the financial trajectory and risk management throughout the project lifecycle.
2. METHODOLOGY This research adopts a comparative case study approach to analyze the cost performance of Design-Build (DB) and Design-Bid-Build (DBB) methods in live residential projects.
In many multi-storey building projects, particularly in growing urban centres, stakeholders encounter challenges such as cost overruns, delays, and fragmented responsibilities. These challenges often arise from the way tasks are sequenced and contracts are structured under the chosen delivery model. Understanding how these frameworks affect initial costs—including design fees, procurement timing, labor efficiency, and contingency
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Case Study Analysis: The three real project case scenarios were selected and compared to understand the results for different delivery methods in terms of cost performance, deviations from initial estimates, and overall financial efficiency in multi-storey construction projects :
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