Design–Build with a Development Phase: The Underlying Theory

This study focuses on a design–build (DB) procedure that exploits the related parties’ (preconstruction) collaboration to improve the economic efficiency of construction projects. It is called design–build with a development phase (DBd). In the procedure, the owner and the selected contractor continue the development of the project solution in cooperation, adhering to the principle of benefit sharing, which is enabled by preagreed rules and the benchmark solution, formed as a result of requirement-based price-inclusive contractor selection where technical design is not included in the proposal; the formation of the final contract is a two-stage process, and a new owner decision is needed to enter the realization phase. More precisely, this study aims to discover and formulate a theory that underlies the DBd procedure that is a heuristic construct of the procedure’s origin. For that, the DBd procedure was conceptualized by determining its key elements and their relationships, and by showing how a coherent whole is achieved by the elements’ mutual interoperability. Therefore, the study contributes to the body of knowledge by crystallizing the DBd concept and its rationality. Even more importantly, the study eventually establishes the novel DBd procedure by combining consistent theoretical and practical views considering the earlier success of DBd in trial projects.