Progressive design-build selects a project team early and develops the design, scope, price, and other terms with that team in stages.
Definition
In progressive design-build, an owner selects a team, often based mainly on qualifications, then works with it to develop the design and define the project scope, price, schedule, and other terms. The contract sets the stages for design development, pricing, approvals, and any negotiation or off-ramp if the parties do not agree on the next phase. For a civil engineering firm, the arrangement can include design services during early collaboration and later design work tied to an agreed project plan. The compensation method and responsibilities depend on the procurement documents and contract. Progressive design-build is a form of design-build, but it is not a fixed final price established at the outset in every arrangement. It also is not the same as an owner selecting a designer and contractor under separate contracts. Firms should distinguish authorized early services from later work that still depends on agreement.
How owners use it
- Owners compare the contract's design stages, pricing milestones, and decision rights before committing staff to early work.
- A firm tracks authorized preconstruction fees separately from potential later design fees when forecasting revenue.
- If early design services are authorized at $80,000 and the team has completed $30,000 of that work, the remaining authorized fee is $80,000 - $30,000 = $50,000.
- Leaders use the contract's process for unresolved pricing or scope to assess how much proposed work is firm backlog.
