Design-build: This is the method you need to know about for marketing in the construction industry!
- Jörg Appl
- Jan 8
- 12 min read
The design-build method is the modern answer to the challenges of today's construction projects. It combines design and construction into a single, seamless project delivery method, and in doing so, is changing what building owners, funders, structural engineers, and architects can actually ‘get away with wanting’ – and, more importantly, how you as a marketing manager in the construction industry should respond to this. 🏗️
This method has a massive impact on how you position your offering with your target group – without slipping into bullshit marketing. 🚨
In this blog post – part of our series on technical marketing in the construction industry – I'll show you how to understand the phases of the modern design-build method.
📚 Sounds good? At the end, you'll find practical case studies that will help you take your skills to the next level and assert yourself in the marketing Olympus of the construction industry 🚀.
Design-build: an integrated approach to project delivery in the construction industry
In recent years, the Design-Build method has established itself as a modern and efficient alternative to traditional project management. It is based on the integration of planning and construction in a single contract, which leads to better cooperation and a smoother project flow. ✅
In contrast to the traditional design – bid – build method, the elimination of the bidding phase means that the client selects a single contractor – the design-build partner – to take on both the design and construction from the outset. 🎯 This direct award eliminates the often time-consuming and complex process of tendering and ensures early coordination between all project participants.
In contrast to the traditional separation of phases, in this case architects, engineers and construction companies work together as a team, which can save both time and money. ⏳💰
In this method, the design-build partner – a general contractor, architectural firm or consortium – bears primary responsibility for the project. They take on both the planning and the construction work, which means that the client has a single point of contact. This central role ensures smoother communication and faster decision-making. 🔑
By closely integrating the phases, the design-build model offers more flexibility and scope for innovation, but it also presents specific challenges – especially for marketing managers.
📈 Technical offers must be aligned with the needs of the client and the executing design-build partner at an early stage, since many decisions are already made in the concept phase. 🚀
The three phases in the design-build model
Concept and preliminary planning phase
In the design-build model, the project begins with a comprehensive concept and preliminary planning phase. Here, the design-build partner develops initial designs, cost estimates and technical specifications based on the client's requirements.
🔗 The close collaboration between the client and the design-build team makes it possible to find practical solutions at an early stage. For marketing managers, this means that their offers must be tailored to the specific requirements of the entire project. Products, services or software solutions that save time, costs or resources have particularly good chances in this phase.
📖 According to Hosseini et al. (2016), the concept phase is crucial because it lays the foundation for the entire course of the project. Technical solutions that offer innovative approaches, such as sustainable building materials or digital planning tools, can be crucial in this phase to convince the design-build partner.
Design development and preconstruction
The design development phase is a central part of the design-build model. Unlike in the traditional model, architects and construction companies work closely together to further develop the design while preparing for construction.
⚙️ Marketers need to make sure during this phase that their proposals will not only be integrated into the design but will also provide practical benefits during construction. Close collaboration with the design-build team may reveal the need for adjustments to meet the project's specific requirements.
✨ The ability to make changes during the construction preparation is a major advantage of the design-build model. It allows flexibility, but also places high demands on the providers of technical solutions, who must respond quickly and efficiently to new requirements.
Construction phase 🏗️
In the construction phase, the project is implemented according to the previously created plans. The design-build partner remains responsible for adhering to schedules, cost frameworks and quality standards.
📌 For marketing managers, this means that their products or services must be resilient in practice. Technical offers that, for example, shorten construction time, optimise processes or improve the quality of construction are particularly valuable in this phase.
💡 Support services during construction, such as training courses or technical assistance, can also provide a decisive competitive advantage. This first tip should be really good. It has to encourage people to read on.
Price structuring and selection criteria
In the design-build model, the selection of the contractual partner plays a crucial role, since the contract is awarded directly to an integrated provider who is responsible for both the planning and the construction. Compared to the traditional method, the tendering phase is eliminated, which means that the selection criteria and their weighting can be made significantly more flexible.
The most common selection criteria in the design-build model include:
Price-performance ratio: The focus is often on a balanced relationship between the costs, quality and added value of the offer. For marketing managers, this means that they have to emphasise the long-term benefits and efficiency of their solutions.
Qualification and experience: The suitability of the design-build partner is strongly evaluated on the basis of references, project experience and innovation potential. This provides technical solution providers with the opportunity to highlight their expertise through case studies and success stories.
Project time and risks: Since design and construction are closely interlinked in the design-build model, clients often place a great deal of emphasis on adherence to schedules and the management of potential risks. Providers can set themselves apart through transparent schedules and proven risk management approaches.
In the design-build model, pricing is therefore focused less on the lowest price than on the price-performance ratio and the total project costs. This means that providers need to pay more attention to how their products or services can save time, costs and resources in the long term.
In the US, the selection of design-build partners is often handled more flexibly, with qualifications and experience playing a central role. In Germany, on the other hand, where public procurement is regulated by the Federal Procurement Act (Bundesvergabegesetz, VgV), price continues to play an important role, although there is increasing emphasis on value for money.
These differences require adapted marketing strategies. Suppliers in Germany should focus their offers more on cost efficiency and quality, while in the USA, emphasising innovative strength and project references can be more promising.
Comparing marketing approaches: design-build vs. design-bid-build
The main difference between design-build and design-build-build in terms of award criteria lies in the weighting of price and qualifications:
Design-Bid-Build (DBB): Price is the deciding factor, and selection is typically made on the lowest bid. Marketing strategies should focus on cost-effective solutions that minimise price while ensuring efficiency and quality
Design-Build (DB): The best price-performance ratio is crucial here. The qualifications of the contractor and the overall performance of the team play a major role. Marketers should offer solutions that not only take into account the price, but also promote collaboration and efficient communication between project participants and enable seamless integration.
Marketing messages in detail
For design-bid-build: Focus on cost-effective, quick solutions that keep pricing low while also meeting requirements.
For design-build: Emphasise integrated solutions that both optimise pricing and improve collaboration and communication within the team. Marketing messages should emphasise the added value that your solution brings to the entire project and how it efficiently manages time and costs.et.
Differentiation strategies for marketing managers in the design-build model
High-quality providers:
Marketing managers who work for providers of high-quality products, software or services can differentiate themselves by emphasising long-term benefits and innovation.
Engineering firms: An engineering firm could highlight the added value of high-quality planning software that reduces overall costs and shortens construction time through more precise calculations. Concrete savings figures from previous projects and the presentation of synergies between planning and construction can convince potential customers.
Construction companies:A construction company could differentiate itself through adherence to deadlines and high-quality execution. An example would be a successfully completed project that was realised on time and within budget despite short-term changes and challenges.
Suppliers:A supplier of high-quality building materials could emphasise the advantages of their products, such as a longer lifespan, energy savings or sustainability Certificates, independent test results and real-life examples could boost confidence in the quality.
In addition, value-added services such as extended warranties, training or consulting can make all the difference. Emotional storytelling approaches that show how products or services have successfully supported complex construction projects create a lasting impression.
Cost-conscious providers:
Even in the design-build model, cost-effective providers can score points with clever strategies:
Engineering firms: An engineering firm specialising in cost-effective solutions could emphasise the benefits of standardised processes that provide fast and reliable results. One example would be design software that is ideal for smaller projects and convinces with short implementation times.
Construction company:A construction company could differentiate itself by emphasising fixed prices and efficient execution. Marketing strategies could focus on optimised processes that guarantee savings without compromising on quality.
Supplier:A supplier that focuses on affordable building materials could highlight the fact that they meet all minimum requirements while also being low in cost. Customer reviews and simple application examples could boost confidence in these solutions.
Price-conscious providers can score points with special offers, volume discounts or flexible delivery models. A strong online presence and transparent communication build trust and credibility.
Summary
The Design-Build method (Design-Build) has established itself as a modern and efficient alternative to the traditional project execution method. For marketing managers, it is crucial to understand the process of this integrated method and to align their offers accordingly with the needs of the client and the specific requirements of the Design-Build partner.
In contrast to the traditional design – bid – build method, the design-build model eliminates the bidding phase, which significantly changes the selection criteria. Instead of an exclusive focus on price, more weight is placed on the price-performance ratio, the qualifications and the ability to cooperate of the design-build partner.
Higher-priced providers are more likely to succeed in the design-build model
In the design-build model, the chances for higher-priced providers increase significantly due to the consideration of quality and performance factors. Clients often choose partners who not only impress with cost reductions but also with innovations, efficiency and sustainability.
Data from comparable projects show that the probability of success for more expensive providers is around 40–60% when long-term perspectives such as operating costs, quality or sustainability are taken into account. These criteria are central to the design-build model because clients and design-build partners work closely together to develop the best overall solutions.
By contrast, the chances of success in the traditional model often fall to 10–20% when the focus is exclusively on price, which makes the design-build model particularly attractive for providers of high-quality solutions.
Different national framework conditions also apply in the design-build model. In Germany, regulations such as the Federal Procurement Act (Bundesvergabegesetz – VgV) continue to influence the design of contracts, even when price is no longer the sole deciding factor. In the US, on the other hand, the qualifications of the design-build partner play an even greater role, which requires marketing strategies that are more strongly focused on experience and innovation.
These differences require a market-specific strategy to meet the specific requirements and expectations of clients in different regions.
Questions that will take your marketing expertise in the construction industry to the next level!
Case study 1: Positioning of design software in the concept phase
Situation:You work as a marketing manager for an engineering firm that has developed a new design software. Thanks to an AI-powered module, this software can predict construction costs with an accuracy of ±5% as early as the concept phase. A potential design-build partner who is planning a large logistics centre is about to decide on his design tools He is looking for solutions that both optimise costs and offer adaptability.
Question: How do you position your design software to win the bid?
Highlight that the software is affordable and has low licensing costs
Present the accurate cost forecasting feature and show how it reduced overall costs by 12% on a similar project. ✅
Focus on generic software features, unrelated to the prospect's project.
Promise complete cost optimisation without disclosing the software's technical limitations.
Solution:2
Explanation: In the concept phase, design-build partners are looking for tools that enable them to be sure of their designs at an early stage and to plan them with precision. The combination of a specific practical example and the emphasis on accurate cost forecasting shows the added value of your software for the potential partner's project.
Case Study 2: Marketing sustainable building materials during the design development phase
Situation:
You work as a marketing manager for a supplier of sustainable building materials. An architectural firm that is part of a design-build team is looking for environmentally friendly alternatives for the facade of an office building. Your company offers an innovative material that reduces CO₂ emissions by 30% while also providing high thermal insulation values
Question: How do you convince the design-build team to choose your material?
Highlight the lower cost of your material compared to conventional materials.
Present the environmental benefits of the material and underline them with a life cycle analysis showing how the material reduces the building's operating costs. ✅
Provide only technical data without visual examples
Avoid any value-added services and focus only on product delivery.
Solution: 2
Explanation: During the design development phase, architects are seeking materials that are aesthetic, functional and sustainable. The combination of environmental benefits, long-term cost savings and robust data (life cycle analysis) is convincing and helps to establish the material as a preferred choice.
Case Study 3: Flexibility in the event of changes in the construction preparation phase
Situation:
Your construction company is responsible for a residential construction project under a design-build contract. The client wants to make changes to the floor plan of the apartments at short notice due to a new market analysis in order to improve rentability. Your company already has experience with such adjustments, thanks to an optimised planning tool that enables quick iterations.
Question: How do you market your flexibility to the client?
Present a previous project in which your team successfully implemented similar changes within three weeks. ✅
Emphasise that although changes are possible, they will result in high additional costs.
Point out that changes are not part of the original contract and will require additional time.
Avoid any communication about previous adjustments to minimise risks.
Solution:1
Explanation:In the design-build model, flexibility is a major advantage. By presenting a comparable project that was successfully completed, you demonstrate your ability to implement changes efficiently and strengthen the client's trust in your company.
Case Study 4: Innovation and risk management in the construction phase
Situation: You are the marketing manager of an engineering firm that provides digital monitoring tools for construction sites. A design-build partner has been contracted to build a new hospital and is looking for solutions to minimise delays during the construction phase. Your solution enables real-time monitoring of progress and automates risk reporting.
Question: How do you convince the design-build partner to use your solution
Present how your solution has reduced delays by 25% in a similar hospital project and show examples of the identified problems. ✅
Highlight only the low price of your solution without going into the specific advantages.
Present general advantages of digitisation without giving a practical example
Focus exclusively on technical details and avoid discussing practical benefits.
Solution: 1
Explanation: During the construction phase, it is crucial to minimise delays and risks. A concrete example not only demonstrates the practical benefits of your solution, but also strengthens your credibility as a reliable partner.
Case Study 5: Marketing for ‘Design-Bid-Build’ versus ‘Design-Build’
Situation: You are the marketing manager of a construction company that works in both the design-bid-build and design-build models. A public project in Germany (e.g. school construction) will use the design-bid-build model, while a private client will realize a residential construction project using the design-build method. Your company wants to develop appropriate marketing strategies for both projects
Question: How should you design your marketing messages for these two models?
Possible answers:
Use the same marketing messages for both projects because the quality of construction is the most important factor.
For the design-bid-build model, focus on low prices and fixed-price guarantees, and for the design-build model, emphasise integrated solutions and long-term benefits.
In the design-bid-build model, emphasise innovation and teamwork, while in the design-build model, focus exclusively on quick solutions.
Do not make any differences in the presentation and trust in the reputation of your company.
Solution: 2
Explanation:The design-bid-build model focuses heavily on low costs, since public tenders in Germany often have price as the main criterion. Here you should emphasise how your company can maintain fixed prices while ensuring quality. In the design-build model, on the other hand, the focus is on the price-performance ratio and efficient cooperation between design and construction. The focus here should be on integrated solutions and the long-term benefits of your approaches (e.g. through time savings or higher sustainability).
Case Study 6: Challenges for a US company seeking to implement a public project in Germany using the design-build method
Situation: A US company that has been successful in the design-build sector wants to participate in a large public infrastructure project in Germany. It plans to propose the design-build method to complete the project more efficiently and quickly. However, the company encounters difficulties in gaining acceptance from the German authorities, which traditionally rely on the design-bid-build model
Question: Why might it be difficult for the company to implement the design-build method in Germany for public projects?
Possible answers:
Because German authorities generally prohibit the design-build method.
Because the German Federal Procurement Act prioritises the selection of the lowest price, while design-build methods focus on long-term efficiency and collaboration.
Because the design-build method is not suitable for complex projects.
Because German construction companies have no experience with the design-build method.
Solution: 2
Explanation: In Germany, public procurement is regulated by the Federal Procurement Act (VgV), which requires a strong focus on the lowest price and transparency of tenders The design-build model, which focuses on value for money, innovation and integrated approaches, does not fit well into this system. There is often a lack of acceptance for a direct award to a single consortium or company that takes on both planning and construction.
Additional challenge: Another obstacle can be the lack of experience of German authorities with the design-build method, especially in the public sector, where risks must be minimised and all process steps strictly documented. US companies must therefore adapt their marketing strategy by highlighting their track record with design-build projects and presenting specific examples of cost savings and efficiency gains.
Looking forward to more insights on this topic—perhaps a comparison with IPD or CMAR models could provide even deeper context! Excellent work!