Construction & Development

Design-Build

Synonyms: Design and Build، D&B، Design-Construct، Single-Point Responsibility Contract

Last updated: 2026-09-25

Short Definition

Design-build is a project delivery method in which the owner contracts a single entity to handle both design and construction under one contract, giving single-point responsibility for design, quality, cost and time.

Overview

Design-build is a project delivery method in which the owner contracts a single entity to handle both design and construction under one contract, giving single-point responsibility for design, quality, cost and time. It allows design and construction to overlap to speed up the project, unlike the traditional design-bid-build approach that separates designer and contractor. In Saudi Arabia the method is used in both the private and government sectors, and its contracts are often based on FIDIC forms such as the Yellow Book (plant and design-build) and the Silver Book (EPC/turnkey), usually amended in the employer's favour. In government procurement, Art. 95 of the Implementing Regulation of the Government Tenders and Procurement Law permits turnkey contracts for major construction, infrastructure and industrial facilities, with the contractor responsible for the conformity of design and execution at a lump-sum price; a new procurement law published in September 2026 replaces the 1440H law 120 days after publication. The method does not waive licensing: design must be prepared by accredited engineers and licensed offices under the Engineering Professions Practice Law, construction by a classified contractor where required, and the code remains binding throughout. In practice, design-build reduces designer-contractor disputes because responsibility is unified, speeds up delivery and gives the owner an earlier, clearer price. But it reduces the owner's control over design details and requires precise written employer's requirements and an independent supervisor representing the owner, since the same entity designs and builds.

Legal Basis

The Civil Transactions Law issued by Royal Decree No. (M/191) dated 29/11/1444H governs construction contracts (Arts. 461–478), including Art. 471 (under a lump-sum contract based on an agreed design, the contractor may not claim a price increase except in limited cases) and Art. 473 (the contractor remains liable when subcontracting). The Implementing Regulation of the Government Tenders and Procurement Law (Art. 95: turnkey contract), together with the new procurement law published in September 2026. The Engineering Professions Practice Law issued by Royal Decree No. (M/36) dated 19/4/1438H, the Contractors Classification Law issued by Royal Decree No. (M/9) dated 18/1/1443H, and the Saudi Building Code Implementation Law (Art. 7).

Practical Example

A private school in Khobar needs a new three-storey building ready for the school year in 16 months. It tendered the project as design-build on the basis of written performance requirements (number of classrooms, areas, finish level and energy efficiency), contracting a consortium of a licensed engineering office and a classified contractor for a lump sum of SAR 19,500,000, and appointed an independent supervising office to represent it. Excavation started once the structural design was approved while detailed finish designs were completed, and the building was finished in 15 months. When steel prices rose during construction, the consortium was not entitled to claim an increase because the contract was a lump sum based on an agreed design.

Common Mistakes

  • ✗Writing general or vague performance requirements and then disputing quality and finish levels later.
  • ✗Dispensing with an independent supervisor representing the owner on the grounds that the contractor designs and supervises itself.
  • ✗Assuming the method removes the requirements for accredited engineers, a licensed design office and a classified contractor.
  • ✗Requesting many changes after signing a lump-sum contract, opening the door to price-increase claims.
  • ✗Failing to allocate responsibility for design defects versus construction defects within the consortium.

International Differences

In the US the method is common in public and private projects and has a dedicated institute; in the UK, JCT design-and-build contracts are widely used; in the UAE many developers use FIDIC's Yellow and Silver forms; and in Turkey it is known in large infrastructure projects within turnkey contracts. Internationally, success depends on precise employer's requirements and independent oversight, which applies equally in Saudi Arabia, where code and professional licensing requirements stay fixed whatever the contracting method.

FAQs

How does design-build differ from the traditional method?▾
In the traditional method the owner first contracts a designer and then tenders construction to a separate contractor, while in design-build it contracts one entity for both. The latter offers unified responsibility and more speed, in exchange for less control over design details.
Do Saudi government entities use design-build?▾
The Implementing Regulation of the Government Tenders and Procurement Law permits turnkey contracts for major construction, infrastructure and industrial facilities, with the contractor responsible for the conformity of design and execution. A new procurement law was published in September 2026, taking effect 120 days after publication.
Who bears design defects under a design-build contract?▾
The single contractor bears them towards the owner because it undertook both design and construction, and it can recover from its engineering office or subcontractors. The ten-year liability for hidden structural defects under the building code regulation also remains.
Can the contractor claim a price increase under a lump-sum design-build contract?▾
Under the Civil Transactions Law, a contractor under a lump sum based on an agreed design may not claim an increase even if material prices or wages rise, unless the change results from the employer's fault or was authorised with an agreed increase. The court may rebalance the contract in unforeseeable general exceptional circumstances.
Which contract forms are common for design-build in Saudi Arabia?▾
FIDIC forms are widely used, especially the Yellow Book for design-build and the Silver Book for EPC, usually with amendments. The Saudi Contractors Authority also prepares model contract forms for the contracting sector.

In Other Languages

Arabic
التصميم والبناء

التصميم والبناء (Design-Build) هو أسلوب لتنفيذ المشاريع يتعاقد فيه المالك مع جهة واحدة تتولى التصميم والتنفيذ معاً بموجب عقد واحد، فتكون نقطة المسؤولية الوحيدة عن التصميم والجودة والتكلفة والمدة.

English
Design-Build

Design-build is a project delivery method in which the owner contracts a single entity to handle both design and construction under one contract, giving single-point responsibility for design, quality, cost and time.

Turkish
Tasarla-İnşa Et

Tasarla-inşa et (design-build), malikin tek bir sözleşmeyle hem tasarımı hem inşaatı üstlenen tek bir kuruluşla anlaştığı ve tasarım, kalite, maliyet ve süre için tek noktadan sorumluluk sağlayan bir proje teslim yöntemidir.

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