Source: Design-Build Institute of America, Washington, D.C.
Leading construction management and merger & acquisition consultant FMI Corp. projects the design-build delivery method accounting for 47 percent of construction spending by 2028, surpassing $1.1 trillion in total outlays over the next five years. Prepared for the Design-Build Institute of America (DBIA), the FMI 2024 Design-Build Utilization Study spotlights these factors impacting architectural/engineering/construction stakeholders in the 2024-2028 window:
Market growth. Design-build is forecast to climb at a 2.9 percent compound annual growth rate, with public and private owners increasingly adopting the method to mitigate challenges such as labor shortages and supply chain disruptions.
Sector expansion. Manufacturing, highway/street and educational sectors are expected to see the largest design-build investments. Education is seeing rapid adoption due to delivery method practitioners’ ability to handle tight schedules and meet evolving owner needs.
Progressive design-build. Method is gaining momentum, particularly for water/wastewater and healthcare projects, offering flexibility and fostering innovation while maintaining cost predictability.
Talent retention. Design-build’s collaborative approach supports talent retention through enhanced team engagement and early involvement, addressing critical AEC industry workforce challenges.
Equity and inclusion. Study authors highlight the increasing emphasis on involving Underutilized Business Enterprises (UBE), with strategic mentorship programs and early engagement helping to unlock new opportunities for smaller firms.
The Design-Build Utilization Study reflects survey responses from more than 250 general or design-build contractors, construction managers, public project owners, engineers and architects. Survey findings point to the critical importance of skilled Owner Advisors in navigating complex projects and ensuring effective communication across teams. Authors highlight the growing need to engage UBEs to address scalability challenges and promote meaningful participation in design-build project delivery. They reveal how the delivery method’s early collaboration, innovative approaches and integration of UBEs provide unique opportunities to address supply chain challenges and enhance project outcomes.
“This report reaffirms the versatility and resilience of design-build, even in uncertain markets,” says DBIA Executive Director Lisa Washington. “When executed in accordance with proven best practices and techniques, design-build can continue to drive optimal outcomes for owners and practitioners.”