Design and Build (D&B) is a model in which a general contractor is responsible for both the design and construction of a project. For factory building projects that need to be operational early, this is an increasingly popular choice for foreign investors in Vietnam. This article explains what D&B is, compares it with DBB and EPC, and shares experience in risk control from Hai Long Construction – a general contractor that has been implementing Design and Build since 2006.
What is Design and Build?
Design and Build is a form where the investor signs a single contract with a general contractor to carry out everything from design to construction, acceptance, and handover. The investor provides requirements regarding functionality, scale, standards, and budget; the general contractor is responsible for turning those requirements into a complete project.
In the construction contract system in Vietnam, this model corresponds to a design and construction contract.
Comparing D&B, DBB, and EPC
| Criteria | DBB (Design – Bid – Build) | D&B (Design – Build) | EPC (Engineering – Procurement – Construction) |
| Number of main contracts | Two or more: design consultant and construction contractor | One contract | One contract |
| Scope | Construction based on drawings provided by the investor | Design and construction of the project | Design, procurement of technological equipment, and construction |
| Progress | Slowest: sequential steps | Fast: overlapping design and construction | Fast, but dependent on equipment schedule |
| Level of investor control over design | Highest | Average, through technical requirements and approvals | Lower, focused on output performance |
| Responsibility for errors | Dispersed between design and construction | Single point of contact | Single point of contact |
| Suitable for | Projects with complete designs | Factories, warehouses, manufacturing plants | Plants with complex technological lines (energy, chemicals, etc.) |
For most factory projects in industrial parks, D&B is a good balance: fast and streamlined like EPC, but the investor still selects and installs their own production lines.
4 benefits of a Design and Build general contractor
- Shortened schedule: design, steel structure fabrication, and foundation construction run in parallel instead of waiting for each step to be completed.
- Cost optimization from drawings: the design team and construction team belong to the same entity, so plans are calculated based on actual construction feasibility. [LINK: SEO-03 – Factory construction costs]
- Single point of responsibility: no more disputes over "design error or construction error".
- Reduced management burden: suitable for foreign investors who do not yet have a project management team in Vietnam.
Risks of D&B and how to control them
The biggest risk is that the investor has less involvement in design details, so quality depends heavily on the capacity and transparency of the general contractor. How to control:
- Establish clear technical requirements from the beginning: functionality, load, applicable standards, materials, and fire protection requirements.
- Approve design by stage: basic design, technical design, and construction drawings.
- Hire an independent supervision consultant to check construction quality.
- Payment based on completion milestones accompanied by performance bonds and warranties.
- Choose a general contractor with sufficient design and construction capacity instead of a unit that outsources the design part.
D&B experience of Hai Long Construction
Hai Long has implemented the D&B model since 2006 and currently possesses three core competencies within the same system:
- Design: Design consultancy center with over 30 engineers, Grade I design and verification capacity certificates.
- Fabrication: 35,000 tons/year steel structure factory in Hai Phong.
- Construction: Grade I industrial construction capacity certificate, own crane and transport equipment fleet.
Recent general contractor projects such as GawNP Nam Dinh Vu, GawNP Dong Van III, Jinka, U.D. Electronic and Sirtec International all have scopes including general construction contracting, design consultancy, and steel structure fabrication and erection.
Frequently Asked Questions
How are D&B and EPC different? EPC includes additional procurement and installation of technological equipment. D&B focuses on design and construction of the facility; production lines are usually provided by the investor themselves.
Can the investor approve the design when doing D&B? Yes. The investor approves the design at each stage before construction.
Should small projects use D&B? Yes. For small and medium-sized factory buildings, D&B helps save time in finding and coordinating multiple units.
Get advice on contract models
Are you unsure whether to choose D&B or another form? Contact Hai Long for advice on the model suitable for your project.
- Hotline: (+84) 846 625 888
- Email: info@hailongjsc.vn
- Headquarters: 8th Floor, Taiyo Building, No. 97 Bach Dang, Hong Bang Ward, Hai Phong
