Design-build is a project delivery method that consolidates the design and construction phases of a capital project into a single contract to improve efficiency and reduce costs. This page covers CBC’s work on design-build authorization for New York City and State agencies, the impact of Wicks Law requirements, the use of Construction Manager-Build procurement, the role of project-labor agreements, and strategies for accelerating infrastructure project delivery.
This page was created with AICBC Insights uses AI to group, analyze and present data and recommendations from CBC's publications. Always reference the cited sources to verify important details..
NYCHA's federal monitor, along with NYCHA and the City, should strongly advocate for HUD to grant waivers from restrictive federal public housing procurement rules, which prohibit the use of alternative methods like design-build and require NYCHA to accept the lowest responsible bidder instead of the bidder that offers the best value.
The Trust legislation should be structured with enough flexibility so that the most cost-effective approaches and tools, such as design-build, are available.
Policymakers should address provisions like Wicks Law and the Scaffold Law, which have been demonstrated to increase the cost and complexity of public projects, to ensure the Trust can deliver capital work in a timely and cost-effective manner.
The Trust should be granted the flexibility to modify work rules or job descriptions and engage private management, rather than being mandated to retain staff in their current roles, to ensure efficient and effective management of properties.
The federal monitor should work with the new Chair to identify changes to federal laws and regulations, including lifting the federal prohibition on design-build and best value procurement for federally-funded capital projects.
NYCHA should increase the use of private service and job order contracts to reduce overtime, improve the deployment of existing skilled trade staffers, and contribute to improved conditions for residents.
Key Data
In September 2024, the CBCNY noted that the New York City Public Works Investment Act of 2019 was expanded to allow design-build procurement on water, sewer, and coastal resiliency projects and Construction Manager-Build on cultural institutions and libraries.
In November 2021, the CBCNY reported that NYCHA had begun procuring City- and State-funded capital projects under its design-build powers, though it still lacked authorization for construction manager-build or construction manager-at-risk methods.
In March 2020, the CBCNY explained that requiring design-build projects to comply with Wicks Law for projects greater than $3 million in New York City and $1.5 million elsewhere undermines coordination and increases construction costs.
In March 2019, the CBCNY highlighted that federal procurement rules prohibited alternative methods like design-build for federally backed capital projects.
In December 2018, the CBCNY noted that the replacement of the Kosciuszko Bridge was completed on budget and within a month of the original contract completion date.
New York City requires legislative approval to utilize efficient procurement methods like joint bidding, design-build, and Construction Manager-Build to accelerate infrastructure projects and reduce construction costs. These alternative delivery methods allow the City to prioritize value and experience over the lowest bidder, mitigating the risk of costly delays in public works.
Recommendations related to Design-Build
The Governor should sign A10401/S9709 and A10400/S9710 to extend authorization of joint bidding on public works contracts for one year.
The Governor should sign A10543/S9849 to authorize New York City to contract for capital projects using design-build and Construction Manager-Build (CM-Build) procurement to save time and money.
The State should enact future legislation to make joint bidding authorization permanent to ensure long-term efficiency in capital project delivery.
The State should expand or make permanent the legislation allowing for alternative project delivery methods to ensure continued improvements in capital project delivery.
While the New York City Housing Authority has begun using its newly authorized design-build powers to speed up projects, federal rules still prevent the use of these methods for projects funded by federal subsidies. Securing federal waivers to allow alternative procurement methods like design-build is critical as the authority stands to gain a significant share of $65 billion in federal capital funding.
Recommendations related to Design-Build
NYCHA's federal monitor, along with NYCHA and the City, should strongly advocate for HUD to grant waivers from restrictive federal public housing procurement rules, which prohibit the use of alternative methods like design-build and require NYCHA to accept the lowest responsible bidder instead of the bidder that offers the best value.
The proposed New York City Public Housing Preservation Trust aims to address massive capital needs, but its effectiveness relies on operational flexibility and the ability to utilize efficient procurement methods like design-build. Legislative mandates requiring adherence to Wicks Law, the Scaffold Law, and restrictive labor agreements threaten to undermine the potential cost savings and project delivery improvements offered by these alternative procurement tools.
Recommendations related to Design-Build
The Trust legislation should be structured with enough flexibility so that the most cost-effective approaches and tools, such as design-build, are available.
Policymakers should address provisions like Wicks Law and the Scaffold Law, which have been demonstrated to increase the cost and complexity of public projects, to ensure the Trust can deliver capital work in a timely and cost-effective manner.
The Trust should be granted the flexibility to modify work rules or job descriptions and engage private management, rather than being mandated to retain staff in their current roles, to ensure efficient and effective management of properties.
The proposed state budget includes changes to design-build authority that would undermine its effectiveness by mandating inefficient bidding practices and removing essential oversight. These modifications would force projects to comply with outdated Wicks Law requirements and eliminate pre-qualification steps, ultimately increasing costs and reducing transparency.
Recommendations related to Design-Build
The state should reject the requirement that agencies using design-build comply with the Wicks Law requirement to bid certain construction work individually for projects greater than $3 million in New York City and $1.5 million elsewhere.
Lawmakers should reject the proposal to allow design-build agencies to bypass the standard two-step design-build bidding process, which currently allows for the pre-qualification of teams.
The state should maintain oversight by rejecting the proposal to exempt public authority design-build contracts from oversight by the State Comptroller’s office.
Key Data
$3 million
— The threshold for Wicks Law compliance for design-build projects in New York City.
$1.5 million
— The threshold for Wicks Law compliance for design-build projects outside of New York City.
Expanding the use of design-build for public construction projects and information technology systems can help consolidate the bidding process and reduce high project costs. This approach builds on New York's successful prior use of the process to improve efficiency in state infrastructure and technology procurement.
Recommendations related to Design-Build
The State should expand the use of design-build, which allows for consolidating the design and construction bidding process, to other state agencies and to information technology systems.
Mandatory automatic debarment policies for contractors create excessive risk that discourages competition, as evidenced by vendors declining to bid on a $38.8 million design-build contract for station accessibility upgrades. These regulations, which go beyond legislative mandates, hinder the MTA's ability to deliver on its $55 billion capital plan by reducing the pool of available expertise and vendors.
Recommendations related to Design-Build
The MTA Board should work with MTA staff to revise the regulations to not mandate automatic debarment, but rather follow the law to allow the MTA discretion to take into consideration the circumstances of each project and the pool of vendors able to perform the particular work.
Key Data
$55B
— The size of the MTA's largest ever capital plan, which faces challenges due to mandatory debarment policies.
$38.8 million
— The value of a design-build contract for station accessibility upgrades that received no proposals from three vendors due to excessive risk.
three
— The number of vendors that declined to submit proposals on a design-build contract due to concerns over contract terms including debarment.
Authorizing New York City to utilize design-build and other innovative procurement methods would help reduce capital construction costs and accelerate project delivery. While concerns regarding project-labor agreements and contractor restrictions remain, the legislation represents a necessary step forward for the city's infrastructure projects.
Recommendations related to Design-Build
The Governor should sign A7636B/S6293A to authorize New York City to use design-build and other innovative capital procurement methods.
Future amendments should address concerns regarding the ties to project-labor agreements, protections for public sector capital project managers, and prohibitions on using outside contractors.
New York State legislation has authorized the use of design-build and construction manager-at-risk methods for certain capital projects to help complete repairs faster and more cost-effectively. However, federal law continues to prohibit these alternative delivery methods for the majority of capital projects, limiting their potential impact on the housing authority's infrastructure needs.
Recommendations related to Design-Build
The federal monitor should work with the new Chair to identify changes to federal laws and regulations, including lifting the federal prohibition on design-build and best value procurement for federally-funded capital projects.
NYCHA should increase the use of private service and job order contracts to reduce overtime, improve the deployment of existing skilled trade staffers, and contribute to improved conditions for residents.
The state budget includes measures to improve MTA capital project execution through the expanded use of design-build contracting. However, the mandate to use this method for all projects exceeding $25 million may be counterproductive, and the associated waiver process is considered unnecessarily burdensome.
Recommendations related to Design-Build
Mandating the use of design-build contracting on all projects greater than $25 million may be counterproductive on some projects.
Requiring a waiver from the State Division of the Budget for design-build contracting is unnecessarily burdensome.
Key Data
$25 million
— The threshold for projects mandated to use design-build contracting.
The New York City Housing Authority requires significant procurement reforms, including the authorization of design-build methods, to address its capital crisis and improve repair efficiency. By securing regulatory relief from federal and state authorities, the agency can better leverage private funding and modernize its operations to overcome long-standing physical deficiencies.
Recommendations related to Design-Build
The federal monitor should advocate for HUD to loosen rigid procurement rules that prohibit alternative procurement methods such as design-build for federally backed projects.
The monitor should urge the State to extend permanent design-build authority to all of NYCHA’s State- and City-funded projects.
Key Data
$2.2 Billion
— Capital funding committed by the City through 2027.
$972 Million
— Expense funding committed by the City through 2027.
66 percent
— Reduction in federal capital funding in 2017 compared to 2002, adjusted for inflation.
$450 Million
— Appropriated by the State for NYCHA capital repairs in the previous two budgets.
New York City's current construction procurement laws, which include mandates like the Wicks Law and restrictions on design-build contracting, contribute to project delays and cost overruns. To improve efficiency and reduce expenses, the City should advocate for state-level reforms that allow for best-value awards and broader design-build authority for capital projects.
Recommendations related to Design-Build
The City should continue to seek changes to state law to permit design-build authority for all City capital projects.
New York State's infrastructure projects frequently suffer from significant time and budget overruns due to traditional design-bid-build procurement methods. To address these inefficiencies, the state should expand the use of alternative delivery mechanisms like design-build, which has demonstrated success in delivering projects on time and under budget.
Recommendations related to Design-Build
The State should decrease the magnitude of cost overruns on projects by streamlining the procurement process and, in certain cases, expanding the use of alternative delivery mechanisms, such as design-build and public-private partnerships.
New York State’s infrastructure delivery entities should utilize design-build and other alternative delivery approaches more frequently to improve the cost-effectiveness and timeliness of project delivery throughout the State.
Expanding the range of project delivery options, including design-build, will ensure that the right methods can be used to deliver projects.
While design-build can be advantageous, it may not be appropriate for every project and should be evaluated on a case-by-case basis.
Key Data
$350 million
— The amount the Bayonne Bridge reconstruction, a design-bid project, ran over its budget.
25%
— The percentage over budget that the Bayonne Bridge reconstruction, a design-bid project, ran.
The New York City Housing Authority faces a $32 billion capital funding gap that threatens the structural integrity of its housing stock, requiring a shift toward more efficient management and alternative development strategies. To lower costs and improve construction outcomes, the authority should adopt flexible procurement methods like design-build while leveraging underutilized land and air rights to generate necessary revenue.
Recommendations related to Design-Build
NYCHA should work with the City and State to use more flexible procurement arrangements, such as design-build, and to improve construction management.
New York City should pursue procurement reforms, specifically the authorization of design-build contracting and the repeal of the Wicks Law, to lower project costs and speed up construction timelines. These changes are essential to modernizing the city's capital project delivery and improving overall efficiency in infrastructure development.
Recommendations related to Design-Build
The de Blasio Administration and the City Council should work with the State Legislature to enact procurement reforms, including the ability to use design-build and the repeal of Wicks Law, in order to reduce project costs and accelerate capital projects.
The state's proposal to extend design-build authorization to five additional agencies should be expanded to include New York City, which has sought this authority for several years. This procurement method is widely recognized for its ability to save time and money on infrastructure projects.
Recommendations related to Design-Build
The state should extend design-build authorization to New York City, which has requested this authority in the last three legislative sessions.
Key Data
5
— The Executive Budget extends design-build authorization to 5 additional State agencies and authorities.
3
— New York City has requested design-build authorization in the last 3 legislative sessions.
The New York State Executive Budget for Fiscal Year 2019 expands the use of design-build procurement tools to additional state agencies and authorities. However, this authorization is notably absent for New York City, limiting the city's ability to utilize this efficient project delivery method.
Recommendations related to Design-Build
The State should grant design-build authority to New York City, as the current proposal only expands the number of state agencies and authorities that can use this tool.
The MTA's Enhanced Station Initiative, which utilizes design-build procurement to accelerate subway station renovations, faces scrutiny due to its high costs and the trade-offs required against other critical capital needs. With an average cost of $37 million per station compared to $22 million for standard renewals, the initiative raises questions about whether these comprehensive enhancements are the most effective use of limited funds during a period of declining subway performance.
Recommendations related to Design-Build
As part of the MTA’s 60-day review, the question of whether the enhancement of 32 stations is worth the trade-off against other capital needs should be reexamined.
The MTA must consider whether future riders will be better off and more satisfied waiting out the delays at enhanced stations as it reviews its capital program to address the current state of emergency.
Key Data
$921 million
— Total allocation for the Enhanced Station Initiative in the 2015-2019 capital program.
$37 million
— Average cost per station for the Enhanced Station Initiative.
$22 million
— Average cost per station for renewal projects not part of the Enhanced Station Initiative.
The NYS FY2018 adopted budget fails to extend design-build authorization to New York City or state government, missing an opportunity to achieve considerable savings on capital projects. Expanding this procurement authority beyond currently specified projects remains a necessary reform to improve fiscal efficiency.
Recommendations related to Design-Build
The State should extend design-build authorization to New York City and for State government beyond specified projects to achieve considerable savings.
Expanding design-build authorization to New York City would allow the city to utilize a procurement method that combines design and construction into a single request for proposals, which is widely recognized for saving time and money. This authority should be granted alongside the proposed extension of design-build capabilities to all other state agencies, authorities, and counties.
Recommendations related to Design-Build
The state should extend design-build authorization to New York City, which has requested the authority in the last two legislative sessions.
The state should extend design-build authorization to all State agencies, authorities, and counties outside of New York City.
The proposed New York State fiscal year 2018 executive budget seeks to expand design-build authority to various state agencies, universities, and counties, yet it excludes New York City from this authorization. This omission ignores the city's repeated requests to utilize a procurement tool that has historically generated cost savings for the state.
Recommendations related to Design-Build
The state should expand design-build authority to include New York City, which has repeatedly requested access to this tool that has proven to provide savings.
The fiscal year 2018 executive budget proposal includes a provision to extend and expand design-build authorization for state agencies. This initiative is listed among various capital and operating budget proposals, though specific fiscal details for the measure remain to be determined.
The state's current authorization for design-build, which allows for combined design and construction requests for proposals to save time and money, should be expanded beyond specific projects like Penn Station and the Jacob Javits Center. This authority to utilize more efficient contracting methods should be extended to all state agencies and the City of New York to improve project delivery.
Recommendations related to Design-Build
The state should extend the authority to pursue design-build and public-private partnership arrangements to all State agencies and the City of New York.
New York City's bridge infrastructure requires significant investment, yet current project delivery methods are plagued by delays and cost overruns, with projects currently running 45 percent over budget. Granting the city authority to use design-build contracting, which bundles design and construction into a single contract, could streamline project delivery and potentially save $2 billion over the next decade.
Recommendations related to Design-Build
State legislators should enable New York City to benefit from design-build contracting to improve infrastructure project delivery.
The legislature should include design-build authority for the New York City Department of Transportation in the budget bills.
Key Data
$2 billion
— Potential savings for the City over 10 years if it realizes savings on par with the State’s experience using design-build.
45 percent
— Amount by which current bridge projects are over budget.
$7.7 billion
— Amount the City plans to spend on bridges over the next 10 years.
82
— Number of City-owned bridges classified as structurally deficient.
20 percent
— Increase in the cost of NYCDOT contracts in fiscal year 2015 due to design change orders.
27 percent
— Estimated savings produced by the first phase of the Accelerated Bridge Program using design-build contracts.
The Metropolitan Transportation Authority struggles to maintain subway stations in a state of good repair, as current rehabilitation efforts fail to keep pace with the system's deterioration. To address this, the agency should reallocate capital funds from expansion projects, improve project management to reduce cost overruns, and utilize public-private partnerships, including design-build models, to increase efficiency and secure additional investment.
Recommendations related to Design-Build
The MTA should increase the use of public-private partnerships (P3s) to inject private sector capital and expertise into station work to enhance progress toward a state of good repair.
The agency should identify opportunities for introducing station conservancies and inviting private partners into station-related P3s.
The MTA should conduct a well-designed experiment at subway stations to create a model that allows for an increased pace of investment and a higher standard of maintenance.
The agency should expand the use of design-build and other P3s to capture estimated savings of 6 percent to 8 percent.
Key Data
6 percent to 8 percent
— Estimated savings from the expanded use of design-build and other public-private partnerships.
$2.2 billion
— Estimated savings from the expanded use of design-build and other public-private partnerships.
$210 million
— Value of subway station improvements to be completed by the developer as part of the agreement with SL Green.
The MTA's 2015-2019 capital plan negotiations include a commitment to alternative project delivery methods like design-build, which are projected to generate significant savings. Leaders are urged to specify exactly which projects will utilize these methods to ensure the estimated $2.2 billion in savings is realized.
Recommendations related to Design-Build
The MTA should specify in the revised capital plan which projects will utilize alternative project delivery methods like design-build.
Key Data
6 percent to 8 percent
— Estimated savings from efficiencies including design-build, public-private partnerships, and procurement improvements.
$2.2 billion
— Estimated savings from efficiencies including design-build, public-private partnerships, and procurement improvements.
New York's limited trial of design-build contracting has demonstrated significant cost savings and efficiency improvements on major infrastructure projects like the Tappan Zee Bridge and the Accelerated Bridge Program. To modernize public works, the state should permanently authorize this procurement method for all agencies and expand its use to include public buildings.
Recommendations related to Design-Build
The State should permanently authorize and extend design-build authority as a first key step in modernizing the approach to public projects.
The State Legislature should approve the Governor’s Executive Budget proposal to make design-build authority permanent.
The State should make feasibility studies for all projects public so their underlying assumptions can be evaluated.
New York should expand design-build authority to all State agencies and public authorities, the City University of New York, and the State University of New York.
Key Data
27 percent
— Estimated savings on the Accelerated Bridge Program relative to the cost of using the standard design-bid-build process.
$1.7 billion
— Amount saved on the Tappan Zee Bridge design-build agreement compared to state and federal cost estimates.
$2 million
— Estimated savings on the $42 million South Beach Psychiatric Center construction project.
10 percent
— Estimated savings on the emergency reconstruction of State Route 42 in Greene County.
29 percent to 39 percent
— Increase in the share of non-residential construction projects using design-build between 2005 and 2013.
New York's authorization for design-build procurement, a method that combines design and construction phases to create more efficient and cost-effective projects, lapsed in 2014. The current executive budget proposal seeks to permanently extend this authorization to all state agencies, aligning New York with the 41 other states and the District of Columbia that currently utilize this approach.
Recommendations related to Design-Build
The legislature should support the proposal to permanently extend design-build authorization for all state agencies.
Key Data
41
— Number of states that currently allow design-build procurement.
Design-build, a method that issues a single contract for both the design and construction of capital projects, has proven to be an effective tool for reducing costs. New York's previous three-year authorization for this practice, which saved 27% on Department of Transportation projects, is being made permanent and expanded to all state agencies under the fiscal year 2016 executive budget.
Key Data
27%
— New York's three-year authorization for design-build saved 27% on Department of Transportation projects.
The fiscal year 2016 Executive Budget proposes permanently extending and expanding design-build procurement to all state agencies, a method that allows for better collaboration between architects, engineers, and contractors to reduce project costs. While the proposal includes a cumbersome requirement for Project Labor Agreements on projects over $50 million, the expansion of this widely used procurement method is a positive step for state capital projects.
Recommendations related to Design-Build
The state should permanently extend and expand design-build procurement to all state agencies to allow architects, engineers, and contractors to collaborate and produce better-designed and lower-cost projects.
Policymakers should ensure that design-build authority does not permanently lapse, as this procurement method is common in the U.S. and internationally.
Key Data
41
— Number of states and the District of Columbia that allow design-build procurement.
$50 Million
— Threshold for projects requiring Project Labor Agreements under the proposed design-build expansion.
5%
— Savings threshold below which Project Labor Agreements are not required for design-build projects.
The expiration of design-build authority, a proven method for lowering construction costs, necessitates that the Governor champion its extension or explore public-private partnerships. This critical tool must be reinstated to ensure continued efficiency in state infrastructure projects.
Recommendations related to Design-Build
The Governor should propose an extension of the design-build authority, which is a proven tool for reducing construction costs that has expired.
New York State should prioritize using its $5 billion bank settlement windfall for long-term fiscal health and infrastructure improvements rather than recurring expenses. As part of these infrastructure investments, the state should extend its design-build procurement authority, a method that has been shown to reduce project costs by 27%.
Recommendations related to Design-Build
State leaders should use the opportunity presented by a special session to extend design-build procurement authority, which is expiring on December 31.
Key Data
27%
— The Department of Transportation found the ability to use design-build procurement reduced project costs by 27%.
On November 12, 2014, the Citizens Budget Commission co-sponsored a conference titled Modernization of New York's Built Environment Laws: If Not Now, When? in Albany, New York. This panel discussion examined the problems with New York's "low-bid" and "design-bid-build" procurement rules and how "alternative" delivery methodologies, such as design-build,…
New York has successfully utilized design-build procurement to reduce costs by 27 percent on infrastructure projects, including the Tappan Zee Bridge and Kosciuszko Bridge repairs. To address pressing infrastructure needs and manage debt, the state should extend and expand the use of these procurement methods and broader public-private partnership strategies.
Recommendations related to Design-Build
New York should continue, and preferably expand, its ability to capture the benefits of P3 approaches to address pressing infrastructure needs.
The state should make the temporary design-build authority permanent and expand it to local governments to better utilize public-private partnership strategies.
The legislature should adopt the Governor's proposal for a three-year extension of design-build procurement as a necessary step to maintain infrastructure progress.
Key Data
$171.2 million
— Value of completed contracts using the design-build procurement method.
$750 to $850 million
— Value of design-build contracts currently in process.
27 percent
— Estimated reduction in costs on projects awarded pursuant to design-build.
$12 billion
— Value of planned highway and bridge construction projects over the next five years.
42 months
— Time by which the planned completion of repair on the Kosciuszko Bridge was accelerated.
Expanding design-build authority to all state agencies is a critical strategy for reducing construction costs and managing capital expenses as the state approaches its statutory debt cap. Although the legislature previously rejected this authority, adopting this model and other public-private partnerships would allow for more efficient project delivery similar to the approach used for the Tappan Zee bridge.
Recommendations related to Design-Build
The state should expand design-build authority for capital projects to all State agencies to reduce construction costs.
The legislature should reconsider and approve the expansion of design-build and other public-private models that have been successfully used in other jurisdictions.
The 2011 tax agreement in Albany includes the authorization of design-build procurement practices, a reform intended to accelerate infrastructure project delivery. This approach combines design and construction into a single contract, offering the potential for faster project completion and improved long-term facility maintenance compared to conventional methods.
Recommendations related to Design-Build
New York should proceed with the authorization of design-build procurement practices for infrastructure projects.
The state should utilize design-build procurement, which combines design and construction into a single contracted service, to deliver facilities more speedily than conventional procurement.
New York should combine design-build with longer-term maintenance contracts to lock-in commitments to keep those facilities in better condition than do public agencies under conventional arrangements.
Design-build contracts serve as a useful procurement mechanism for construction projects, as evidenced by the San Joaquin Toll Road in California opening three and a half months early and the I-15 reconstruction in Utah finishing five months ahead of schedule. However, these contracts are limited to the construction phase and lack the long-term life-cycle maintenance incentives found in broader public-private partnerships.
Key Data
three and a half months
— Time by which the San Joaquin Toll Road opened early under a design-build contract.
five months
— Time by which the I-15 reconstruction project opened to the public ahead of schedule using a design-build contract.
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