Report: State Procurement Laws Impede Public-Sector Use Of Design/Build

State procurement laws continue to be an impediment to the use of the Design/Build project delivery method in the public sector. This is one of many findings included in the 2003 Design/Build Survey of Design & Construction Firms, released by management consulting firm ZweigWhite, Natick, MA.

According to the survey, nearly half (46%) of survey respondents report that procurement laws in their state have effectively shut them out of acquiring public-sector Design/Build work. This is the highest percentage in the six years ZweigWhite has conducted the Design/Build Survey. Firms headquartered in the Middle Atlantic (63%), Mountain (57%), and North Central (54%) regions of the U.S. are most likely to report being shut out of public-sector design/build projects due to state procurement laws.

Respondents are still optimistic about design/build's future in the public sector, however. More than three-quarters of respondents predict there will be an increase in the use of design/build in the public sector in the next five years.

Other findings from ZweigWhite's 2003 Design/Build Survey include:

• Design/consulting firms experienced impressive growth in Design/Build revenue between 2000 and 2002. Design/Build revenue as a percentage of gross revenue for design/consulting firms grew a median of 60% over the past three years. Construction companies saw a median growth of 25%, and Design/Build firms a median growth of 12%.
• Thirty percent of design, construction, and Design/Build firms' gross annual revenue was derived from Design/Build projects in 2002. Both design/consulting firm and construction company respondents derived a median of 10% of their gross annual revenue from Design/Build projects in 2002, while Design/Build firm respondents derived a median of 60% of their revenue from Design/Build projects in 2002.