Design-Bid-Build vs Design-Build vs CM at Risk

By Wyatt Cooper · Published · 4 min read

Key takeaways

  • Design-bid-build: two contracts, design first, and the price fixed by bid on finished drawings.
  • Design-build: one contract for design and construction, with the price set early (best value) or as the design develops (progressive).
  • CM at risk: two contracts, the builder hired during design, and a guaranteed maximum price set before construction.

Design-bid-build, design-build and construction manager at risk differ in how many contracts the owner signs and when price is fixed. Design-bid-build has separate design and construction contracts, priced by bid on finished drawings. Design-build is one contract for both. CM at risk keeps two contracts but hires the builder during design and fixes a guaranteed maximum price before construction.

The three methods side by side

Three delivery methods from the owner's seat
Design-bid-buildDesign-buildCM at risk
Contracts the owner holdsTwo: designer, and contractorOne: the design-builderTwo: designer, and construction manager
When the builder joinsAfter design is completeAt the start, with the designer on its teamDuring design
How the builder is chosenUsually low bidQualifications, then a best-value proposal, or qualifications alone (progressive)Qualifications and fee
When the price is fixedAt bid, on finished drawingsAt award (best value) or once design is far enough along (progressive)When the GMP is agreed, before construction
Who usually answers for design errors (check your contract)The owner, to the contractorThe design-builderThe owner, to the CM
Best forWell-defined work where cost certainty at bid matters mostSpeed and one point of responsibilityComplex work that benefits from the builder's input during design

What each source says

The Construction Management Association of America's owner's guide says design-bid-build "usually leads to the sealed bid, fixed price contract" and describes CM at risk as the construction manager acting "as consultant to the owner in the development and design phases, but as the equivalent of a general contractor during the construction phase". The Design-Build Institute of America (what is design-build) calls "the single contract for both design and construction" the fundamental difference.

Federal rules show how each is bought. Two-phase design-build (FAR subpart 36.3) rates qualifications without price in phase one, then takes priced proposals from generally no more than five firms. GSA's construction manager as constructor (GSAM subpart 536.71) buys design-phase services at a fixed price with an option for construction at a guaranteed maximum price.

An example: one clinic, three timelines

Take a made-up clinic with 8 months of design and 12 of construction. Under design-bid-build, add a month to bid and award: 21 months, price known at month 9. Under CM at risk, the builder joins at month 2, the GMP is set at month 7, and early packages can start before design ends, so the price is known two months sooner. Under design-build the owner signs one contract at month 0. Overlap shortens the job only when the work allows it, so ask each firm for its own schedule.

Whichever you choose, select the builder with written criteria (how to choose a general contractor) and level priced proposals the same way (how to compare contractor proposals).

The bottom line

Pick the method by what you need most: cost certainty on a finished design (design-bid-build), one point of responsibility and speed (design-build), or the builder's input during design with a capped price (CM at risk).

Conflo puts the owner, the contractor and the subs on the same job under any of the three. Join the waitlist to try it.

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Sources

  1. An Owner's Guide to Construction and Program Management (2011) — Construction Management Association of America. Read October 16, 2026.
  2. What is design-build? — Design-Build Institute of America. Read October 16, 2026.
  3. FAR subpart 36.3, Two-Phase Design-Build Selection Procedures — Acquisition.gov (U.S. General Services Administration). Read October 16, 2026.
  4. GSAM subpart 536.71, Construction-Manager-as-Constructor Contracting — Acquisition.gov (U.S. General Services Administration). Read October 16, 2026.

Questions

Is CM at risk the same as CM/GC?

Yes, the names are used for the same method. GSA calls it construction manager as constructor. Agency construction management is different: there the CM advises the owner and holds no construction contracts.

Which delivery method is cheapest?

None is cheapest by rule. Design-bid-build gives a competitive price on a finished design but no builder input during design; the others trade some price competition for speed or earlier cost information. Your project, schedule and staff decide it.

Can public owners use design-build or CM at risk?

Federal agencies can, under FAR subpart 36.3 and GSA's construction manager as constructor rules. State and local owners need authority under their own state's law, which varies.