Which statement describes the contract structure difference between design-bid-build and design-build?

• A. Design-bid-build has separate design and construction contracts
• B. Design-build uses only one contract
• C. Both always use separate contracts
• D. There is no difference

Answer: (A)

Design-bid-build and design-build differ in how contracts are organized for design and construction. In design-bid-build, the owner signs separate contracts: one with a design professional to create the plans, and another with a builder to construct the project once the design is ready. This creates two distinct agreements and tends to separate the design and construction processes and teams. In design-build, a single contract binds one entity or team to deliver both design and construction, integrating the two phases under one umbrella and providing a single point of responsibility for the owner. Because of this structure, the statement that design-bid-build has separate design and construction contracts best captures the difference. The other options misstate the typical arrangements, since design-build is characterized by one contract, not two, and there is a real distinction between the approaches.