Design-Bid-Build vs. Best Value: What Public Agency CMs Should Know

When it comes to public works construction, the method of contractor selection can set the tone for the entire project. As a construction manager (CM) representing a public agency, you’re on the front line: making sure the process — and ultimately the project — runs smoothly.

And, in my experience most small and mid sized projects use Design-Bid-Build (aka, DBB) procurement, but one that I've seen work very well lately is Best Value, and I felt it was important to share my personal (limited) experience with this, and what I've noticed.

Overall, each has its place. Understanding their differences, pitfalls, and how they play out in practice supports you in managing risk and keeping your agency (and project) out of trouble.

Disclaimer: The following is based on professional experience and should not be interpreted as legal advice. Always consult qualified legal counsel for guidance specific to your agency’s contracting authority and applicable laws.

Design-Bid-Build (DBB)

How It Works

The agency hires a designer to complete the plans and specs. The project is advertised, contractors submit sealed bids, and the lowest responsive and responsible bidder wins.[^1]

🆗Pros

• Clear and Defensible: The low-bid process is transparent and easy to explain to boards, councils, and the public.
• Competitive Pricing: The focus on price drives contractors to provide their lowest number.
• Established Legal Framework: DBB is supported by decades of statutes and case law, making it the default process for many agencies.

⛔Cons

• Lowest Price, Not Best Performance: You may end up with a contractor who meets minimum qualifications but isn't ideal for complex or high-visibility work.
• Limited Collaboration: The contractor's involvement starts after design is complete, which can limit constructability input.[^2]
• Risk of Change Orders: Tight margins and incomplete plans often lead to claims and disputes.

🔊CM Tips

• During Bidding: Watch for unbalanced or unusually low bids. They often indicate cash flow manipulation or a lack of understanding of the scope.
• Contract Documents: Precise specs and complete drawings are your first line of defense.
• Pitfalls: Don't assume "low bid" means "best value." It simply means lowest upfront cost.

Best Value

How It Works

In a Best Value procurement, contractors are evaluated on both price and qualitative factors such as relevant experience, key staff, safety, and approach. The evaluation criteria and weighting are disclosed in the RFP.[^3]

🆗Pros

• Selects for Performance: You can choose a contractor whose team and track record best fit the project's needs. Research has shown that best-value selected contractors can deliver improved quality outcomes compared to low-bid selection.[^4]
• Encourages Innovation: Proposers may offer better materials, methods, or sequencing strategies.
• Better Alignment: Contractors have skin in the game beyond price, leading to stronger collaboration.

⛔Cons

• More Complex Process: The evaluation is subjective and must be carefully documented to withstand protest.
• Higher Administrative Load: Writing the RFP, reviewing proposals, and conducting interviews require more staff time.
• Legal Risk if Poorly Managed: Without clear scoring and documentation, protests or audit findings can arise.[^5]

🔊CM Tips

• Get Experienced Counsel: Use an attorney who understands both DBB and Best Value. Public Contract Code requirements vary, and compliance is critical.
• Lock-In Key Personnel: Make sure the individuals proposed in the RFP are named in the contract. Don't let the "A team" get swapped out after award.
• Use Best Value Strategically: It's ideal for projects with specialty or aesthetic elements, such as parks, civic plazas, or custom structures — where coordination, craftsmanship, and collaboration matter more than lowest cost.

💡For Example: A typical waterline or paving project likely doesn't warrant Best Value. But if your project involves a custom park with unique artistic trees, decorative concrete, or numerous deferred submittals, it's worth having a contractor you know can manage that complexity successfully.

Common Questions from Public Agency CMs

1. "Is every agency allowed to choose between Best Value and DBB?"

Not always. The authority to use Best Value depends on state law and local enabling legislation. In California, for example, only certain types of agencies or project categories are authorized under specific Public Contract Code sections to use Best Value.[^6] Always verify your agency's statutory authority before proceeding — and consult legal counsel early in the process.

2. "Is price allowed to be negotiated during the Best Value process?"

Generally, no — price is proposed and fixed at submittal, and negotiations focus on clarifications, not changing dollar amounts. However, some RFP structures allow discussions around scope refinement or alternative proposals before final scoring. The key is to ensure all proposers are treated equally and the process remains transparent.[^3]

3. "What are some evaluation criteria that are less likely to be protested?"

Stick to objective, documentable factors such as:

• Contractor's recent experience with similar project types
• Performance history with the agency or other public owners
• Qualifications of key personnel (with resumes and references)
• Demonstrated safety record (e.g., EMR or OSHA rates)
• Quality control and project approach narratives

Subjective factors like "innovation" or "overall impression" can be used but should be weighted lightly and backed by clear written justifications.[^5]

4. "Which method delivers faster projects?"

Contrary to popular belief, DBB isn't necessarily slower. While it requires a complete design before bidding, the Best Value process can take additional time for proposal evaluations, interviews, and legal review. Schedule advantages depend more on project readiness and procurement planning than on the method itself.[^2]

Final Thoughts

Both Design-Bid-Build and Best Value have a place in public works. The best approach depends on your project's complexity, level of design detail, and tolerance for administrative workload.

DBB remains the workhorse method for straightforward infrastructure — efficient, transparent, and legally defensible when the plans are solid.

Best Value shines when projects demand: collaboration, craftsmanship, and performance — where "who builds it" truly matters as much as the price.

Above all, surround yourself with an experienced team:

✅Legal Counsel who knows both methods

✅Procurement Staff who understand public contract compliance

✅CM Team who can anticipate the risks inherent in whichever method your agency chooses

When done right, either method can deliver a successful project. The difference lies in preparation, documentation, and disciplined administration.

References

[^1]: Trimble Construction. (2024). "Design Bid Build (DBB): A Comprehensive Guide to the Traditional Construction Delivery Method."

[^2]: Gordian. "Comparing 5 Project Delivery Methods." 

[^3]: Associated General Contractors of America. "Project Delivery - Best Value Selection: Best Practices Guide." 

[^4]: Hale, D. R., Shrestha, P. P., Gibson, G. E., Jr., & Migliaccio, G. C. (2018). "Best-Value Procurement in Design-Bid-Build Construction Projects: Empirical Analysis of Selection Outcomes." Journal of Construction Engineering and Management, 144(9). 

[^5]: Associated General Contractors of America. "Project Delivery - Best Value Selection: Best Practices Guide." AGC Best Practices Documents. 

[^6]: California Public Contract Code § 20155.1 (Best Value for Counties). and California Legislative Information, Public Contract Code 

Additional Resources

For further reading on public procurement methods and California-specific requirements:

• California Public Contract Code
• FHWA Design-Build Resources
• AGC Best Practices Library