FMI, provider of management consulting and investment banking services to engineering and construction, infrastructure and the built environment, has released a new white paper titled “The Growing World of Design Build.” Recent years show significant growth of design-build across various market sectors and geographies, particularly in the transportaton sector. This method of project delivery combines the design and construction phases into a single contract, with designer and contractor working together from the start. The process helps streamline projects by eliminating multiple contracting efforts. The collaboration helps keep projects on schedule and within budget.
According to FMI’s “2018 Design-Build Utilization” report, the project delivery method will make up 44% of construction spending between 2018 and 2021. Meanwhile, construction spending will grow by 18%, reaching over $320 billion.
Manufacturing, highway/street, and education will represent the greatest percentage of design-build construction spending over the next three years. Geographically, the Mountain (6.3%), Pacific (6.1%) and South Atlantic (6.2%) census divisions will yield the highest growth rates between 2018 and 2021.
The white paper is based on research conducted for the Design Build Institute of America and highlights key trends in the North American design-build market. It describes why owners are opting for this process and provides recommendations for engineering and construction (E&C) firms to set themselves up for successful design-build projects.
Paul Trombitas, senior FMI consultant and lead researcher says, “On track to account for $1.19 trillion in construction spending through 2021, design-build presents opportunities and challenges for the E&C industry. With more agencies adopting the design-build model, the future looks bright for this project delivery method. From an industry perspective, alternative project delivery methods have become a more frequent option for both public and private owners.”
Key statistics include:
- In the DBIA study, experience with design-build was rated highest across all project delivery methods, with 76% reporting very good and excellent experiences.
- In addition to larger and more complex projects, design-build continues to expand into project sizes of less than $25 million, as owners continue to gain exposure to the benefits of the delivery method.
For over 65 years, FMI has been the leading management consulting and investment banking firm dedicated exclusively to engineering and construction, infrastructure and the built environment
To access FMI’s design-build white paper, please click here.
