The share of design-build projects among total construction spending is anticipated to grow 18 percent from 2018 to 2021, reaching more than $320 billion. It is expected to represent up to 44 percent of construction spending in the assessed segments* by 2021 according to the “Design-Build Utilization” report from FMI.

“Owners have traditionally employed design-bid-build as the project delivery method of choice. As owner needs and project demands have changed, owners have become increasingly likely to assess the option to employ alternative delivery methods,” reads the report. Overall, owners surveyed identified delivery schedule as the greatest influence in project delivery method selection. As the education process for design-build continues to expand, adoption and use of design-build on projects is expected to grow, according to the report.

“Overall, owners indicated receiving significant value from design-build when employed on larger and more complex projects. These projects allowed for greater opportunity to provide project innovations and subsequent cost savings,” reads the report. “In addition to larger and more complex projects, design-build utilization continues to expand into project sizes less than $25 million as owners continue to gain exposure to the benefits of design-build.”

From 2018 to 2021, design-build will represent $1.2 trillion out of $2.7 trillion in total U.S. construction put in place for the assessed segments. The commercial market will make up 13 percent of the design-build spending, offices will represent 12 percent, educational will represent 15 percent, manufacturing will represent 16 percent and health care will represent 6 percent.

Growth rates are anticipated to be highest in the Mountain (6.3 percent), Pacific (6.1 percent) and South Atlantic (6.2 percent) regions of the U.S. from 2018 to 2021. Design-build construction put in place is expected to grow from $22 billion to $26.4 billion in the Mountain region, from $45.7 billion to $54.5 billion in the Pacific region, and from $54.7 to $65.6 in the South Atlantic.

From 2013 to 2017, design-build represented a 39-percent share of construction spending. Design-bid-build represented 27 percent and construction manager/general contractor (CMGC)/construction manager at risk (CMAR) represented 32 percent.

While design-build is expected to grow to 44 percent within the period from 201 to 2021, design-bid-build is expected to drop to 19 percent of total construction spending. CMGC/CMAR is expected to grow slightly to 35 percent.

According to the report, design-built is anticipated to account for 45 percent of nonresidential construction spending, or $990 billion out of $2.2 trillion in U.S. nonresidential construction put in place for the target segments. That’s an increase of 3 percent from the 2013 to 2017 period.

*Editor’s note: Assessed segments include religious, public safety, communication, amusement and recreation, lodging, health care, transportation, office, commercial, manufacturing, educational highway/street and water/wastewater.