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Design-build vs construction management vs general contracting

How each one handles price, risk, schedule and control — and how to pick for a commercial project in Ontario.

Structural steel frame of a new single-storey commercial building under construction

Short answer

Design-build puts design and construction under one contract — fastest, with one party accountable. Construction management makes the contractor your agent with open-book trade pricing — most control. General contracting gives a fixed price against complete drawings — most price certainty, slowest to start.

Pick on what you can't compromise: one accountable party, control over every trade price, or one fixed number before you commit.

Side by side

Design-buildConstruction managementGeneral contracting
Contracts you holdOneDesigner + CMDesigner + contractor
When price is knownBudget at concept, firm during designPackage by packageAt tender, on complete drawings
Who carries design riskContractorOwnerOwner
Who carries cost riskContractor, once pricedOwner (with full visibility)Contractor, for the drawn scope
Speed to siteFastestFastSlowest
Owner control of tradesLowerHighestLower
Typical CCDC formCCDC 14CCDC 5A or 5BCCDC 2

Design-build

One firm designs and builds. You agree a brief and a target budget; the design-builder prices as the design develops, so you see a budget while scope can still change cheaply. Design, permits and procurement overlap, which is why it is usually the fastest route to site.

Choose it when you want one accountable party, budget certainty before design is finished, or a schedule that can't absorb design-then-tender. It goes wrong when the brief is vague — the design-builder will design to the budget, and you only get what you asked for.

Construction management

The contractor acts as your agent: budget, schedule, trade procurement and site coordination, for an agreed fee. Trade prices come to you as they are, and you approve each award. Packages can be tendered as the design firms up, so early work starts before the last drawing.

Choose it when you want transparency and control, the design will keep evolving, or the project is complex or phased. It goes wrong when the owner doesn't have time to review packages — the flexibility only helps if someone uses it. What a construction manager does.

General contracting

The traditional route: your designer completes the drawings, contractors bid, and one signs a stipulated price to build what's drawn. It gives a clean, comparable tender and one number before you commit.

Choose it when drawings are complete and coordinated, you need a fixed number, or your procurement rules require a tender. It goes wrong when drawings are incomplete — every gap becomes a change order, and the "fixed" price moves.

Ontario specifics that apply to all three

  • Holdback. Ontario's Construction Act requires the owner to hold back 10% of payments until the holdback is released under the Act.
  • Prompt payment. The same Act sets deadlines for paying proper invoices down the contract chain.
  • Standard contracts. The Canadian Construction Documents Committee (CCDC) publishes the standard forms most Ontario commercial projects use, listed in the table above.

A quick way to choose

  1. If you need one fixed number and have complete drawings, start with general contracting.
  2. If you want one party accountable and speed matters, start with design-build.
  3. If you want to see and approve every trade price, start with construction management.

Or answer six questions in the delivery model selector and get a recommendation with the reasons behind it.

Which is cheaper: design-build, construction management or general contracting?

None is cheaper by default. General contracting gives the most competitive price on a complete design; design-build and construction management reduce redesign, change orders and time, which often matters more to total cost.

Which delivery model is fastest?

Design-build is usually fastest, because design, permits and procurement overlap. Construction management can also start early work before design is finished. General contracting is slowest because design, tender and construction run in sequence.

Can you switch delivery models partway through?

Sometimes. A construction management engagement can convert to a fixed price once drawings are complete, for example. It is simpler to choose deliberately at the start.

References

  • Construction Act, R.S.O. 1990, c. C.30 (Ontario) — holdback and prompt payment provisions.
  • Canadian Construction Documents Committee — CCDC 2 (stipulated price), CCDC 5A/5B (construction management), CCDC 14 (design-build stipulated price).

General information, not legal advice. Have your contract reviewed by your own lawyer.

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