Design-Build Construction Projects in New York

Design-build is a project delivery method in which a single entity holds contractual responsibility for both the design and construction phases of a project. This page covers how the model operates in New York State, the regulatory and procurement frameworks that govern it, the scenarios where it applies most effectively, and the boundaries that separate it from alternative delivery structures. Understanding these distinctions matters because New York has specific statutory authorization requirements that differ from federal practice and from many other states.

Definition and scope

In a design-build arrangement, the owner executes one contract with a design-build entity — typically a joint venture between a general contractor and an architect, or a firm that employs both disciplines in-house. That entity assumes responsibility for coordinating design documents, obtaining permits, managing subcontractors, and delivering a completed facility. This structure contrasts with the traditional design-bid-build sequence, in which design and construction are procured separately.

New York State expanded its statutory authorization for design-build through the New York State Design-Build Law, initially passed in 2011 and subsequently extended and broadened. The law authorizes state agencies and certain public authorities to use design-build for infrastructure and facility projects. New York City has separate enabling authority under provisions administered through the New York City Department of Design and Construction (DDC), which has run a formal design-build program since 2019.

For New York commercial construction project types, design-build is one of several recognized delivery models. The full landscape of alternatives — including construction management at-risk and integrated project delivery — is covered under New York construction project delivery methods.

Scope of this page: Coverage here is limited to design-build as practiced under New York State law and New York City administrative frameworks. Federal design-build contracting (governed by the Federal Acquisition Regulation, Part 36) and design-build projects in New Jersey or Connecticut are not covered. Private-sector projects that adopt a design-build structure contractually but are not governed by New York's public procurement statutes fall partially outside this scope, though state licensing and building code requirements still apply to all work performed in New York.

How it works

Design-build projects in New York follow a structured progression regardless of project type.

  1. Owner defines requirements. The owner prepares a Request for Qualifications (RFQ) and subsequently a Request for Proposals (RFP) that specify performance criteria, functional requirements, budget parameters, and schedule targets rather than prescriptive design specifications.
  2. Qualification and shortlisting. Proposers submit qualifications demonstrating financial capacity, relevant project experience, and team composition. Public agencies typically shortlist 3 to 5 teams.
  3. Proposal development. Shortlisted teams develop technical proposals, which may include preliminary design documents, and cost proposals. Stipends are sometimes paid to unsuccessful proposers to offset proposal costs.
  4. Selection and award. Award is made on a best-value basis, weighing technical merit and price. New York's design-build statute explicitly requires best-value evaluation for covered public projects.
  5. Design development and permitting. Once under contract, the design-build entity develops construction documents and coordinates permit applications with the applicable authority — the New York City Department of Buildings (DOB) for city projects, or county and municipal building departments elsewhere in the state. Permit requirements specific to New York are detailed at New York construction permit requirements.
  6. Construction and inspection. Construction proceeds concurrently with final design phases. The design-build entity manages inspections and code compliance. Applicable standards include the New York City Building Code (NYC Building Code overview) and the New York State Building Code based on the 2020 International Building Code with state amendments.
  7. Commissioning and closeout. The entity delivers a completed, code-compliant facility and provides warranty coverage as specified in the contract.

Safety obligations throughout are non-negotiable. All design-build work in New York is subject to OSHA standards, including 29 CFR Part 1926 (Construction Industry Standards), and to New York State Labor Law Section 241, which imposes non-delegable duties on owners and contractors for construction site safety.

Common scenarios

Design-build appears most frequently in three categories of New York construction activity:

Infrastructure and transportation. The New York State Department of Transportation (NYSDOT) and the Metropolitan Transportation Authority (MTA) have used design-build for bridge rehabilitation, highway reconstruction, and transit facility projects. The method compresses schedules, which is critical when lane or service closures carry high economic costs.

Institutional and civic facilities. State agencies including the Dormitory Authority of the State of New York (DASNY) have procured correctional facilities, courthouses, and university buildings through design-build. DASNY's enabling legislation explicitly lists design-build among permitted procurement methods.

Water and wastewater infrastructure. Municipal water authorities and the New York City Department of Environmental Protection (DEP) have applied design-build to treatment plant expansions and pipeline projects where process performance specifications lend themselves to performance-based contracting.

On the private commercial side — office towers, mixed-use developments, and high-rise construction — owners adopt design-build structures contractually without statutory constraint, typically to accelerate delivery and fix cost earlier than traditional delivery allows.

Decision boundaries

Design-build vs. design-bid-build. Design-bid-build requires completed design documents before competitive bidding, providing maximum price certainty from bid but no schedule overlap between design and construction. Design-build compresses the overall schedule by 10 to 30 percent on comparable projects (as documented in research published by the Design-Build Institute of America), but transfers more design risk to the owner through performance specifications.

Design-build vs. construction management at-risk (CMAR). In CMAR, the owner retains a separate designer under a direct contract and hires a construction manager who provides a guaranteed maximum price. Design authority remains with the owner's architect. Design-build consolidates that authority in one entity, which reduces owner coordination burden but limits owner control over design decisions mid-process.

Licensing requirements. New York General Business Law and Education Law require that licensed architects or engineers of record hold professional responsibility for design documents, regardless of how the project is contractually structured. A design-build entity must demonstrate that a licensed professional in New York holds responsible charge. Licensing requirements applicable to this structure are covered at New York construction licensing.

Labor and wage obligations. Public design-build projects in New York are subject to prevailing wage requirements under New York Labor Law Article 8. These obligations bind all subcontractors within the design-build team. Details on wage thresholds and reporting obligations are addressed at New York prevailing wage construction.

Bonding and insurance. Public agencies require performance and payment bonds, typically at 100 percent of contract value, from design-build entities. Private owners structure bonding requirements contractually. Insurance requirements — including professional liability coverage, which becomes more complex when design and construction are held by one entity — are addressed at New York construction insurance requirements.

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