The NC Process for Design-Build

Step 1: Establish Criteria in Writing

To start, you must establish written criteria under which you will use design-build. This criteria must address at least the following six considerations:

1. The unit’s ability to “adequately and thoroughly” define the project requirements in the RFP;
2. Time constraints for project delivery;
3. The unit’s ability to ensure that a quality project can be delivered;
4. The availability of qualified staff or outside consultants experienced in design-build to manage and oversee the project;
5. Good faith efforts to comply with historically underutilized business participation requirements and to recruit and select small business entities (the term “small business entities” is not defined in the statute); and
6. The criteria used by the unit, including a cost-benefit analysis of using design-build in lieu of traditional construction bidding methods.

Best practice is to write this down on official letterhead and have your local elected leadership sign off on it in a public board meeting like Guilford County Schools did in their December 2024 board meeting.

Step 2: Release a Request for Qualifications (RFQ)

Following the establishment of its criteria, you must publicly post a Request for Qualifications (RFQ). By statute, the RFQ has to at least contain:

1. The project site
2. The project scope
3. The anticipated project budget
4. The project schedule
5. Selection criteria
6. HUB participation goals
7. Other information provided by the owner to potential design‑builders in submitting qualifications for the project
8. A statement directing each design‑builder to submit in its response to the request for qualifications an explanation of its project team selection (more on this later)

There are no specific requirements for how long respondents are given to respond. The State Construction Office’s policy is 21 days.

Best practices on the RFQ submission: you’ll want an easy way to understand the respondent’s experience with design-build on your specific project type, the qualifications of the team members assigned to the project and their recommended approach to the project. The best way to do this is to clearly lay out your selection criteria to show what you value, like this design-build RFQ from Thomasville City Schools.

The Project Team Selection

Back in 2022, the Legislature clarified what you need to request when you ask for an explanation of the project team selection method. The statute itself is a bit long and convoluted, but in short respondents have two options:

1. List of licensed contractors, licensed subcontractors and licensed design professionals the design-builder proposes to use on the project, or
2. The design-builder’s strategy for selecting contractors and subcontractors based on the requirements of Article 8 of Chapter 143 (in other words, competitive bidding procedures).

Step 3: Evaluating Design-Build Proposals for Contract Award

Like a formal bid, you need to get three RFQ responses the first time before you can open them. If you don’t receive three, you will need to resolicit. The second time, however, you can open them no matter how many you receive.

You will then rank each of them based on how well they score in your selection criteria. Once you have picked your top choice, you can begin to negotiate a contract at a “fair and reasonable price” with the top-ranked design-builder. Remember, the scope of the project still isn’t fully known, so the first contract is typically a preconstruction and design contract.

If you can’t come to an agreement with the top-ranked design-builder, you can end negotiations and get in touch with the second-highest ranked, and so forth, until all proposals are rejected or a design-builder is selected.