The Transition from Design-Bid-Build Contracts to Design-Build

Abstract

Purpose For a number of years, the construction industry has seen an ongoing shift from design-bid-build to design-build contracts. This transition in contract type entails changes for both the organizations and the individuals involved. Consequently, the purpose of this paper is to investigate how the client manages the transition between the different contract types from an organizational change perspective in a project-led organization. Design/Methodology/Approach A multiple case study of six infrastructure projects with DB contracts, all managed by the Swedish Transport Administration, was conducted. The major source of data is semi-structured interviews with respondents from both the client and the contractors. Findings Results suggest that the transition has resulted in a mix of design-bid-build and design-build as contract type owing to issues when changing in a project-led organization. A change in vision also requires a concomitant change in culture, systems and roles. Research Limitations/Implications The study only includes cases from the Swedish transport infrastructure sector, which limits the generalizability. The findings are also indicative owing to the small number of cases. Practical Implications The findings further our understanding of managing change in complex projects, which might help practitioners to manage change in a more integrated way. Originality/Value The findings enrich our understanding of the systemic change that a switch in contract types can have in inter-organizational complex projects such as transport infrastructure projects. Furthermore, it emphasizes the intricate task of change management in project-led organizations and its effects on roles and responsibilities.