AEC Firms Report State Procurement Laws Impeding Public-Sector Use Of D-B
According to the survey, nearly half (46%) of survey respondents report that procurement laws in their state have effectively shut them out of acquiring public-sector D-B work. This is the highest percentage in the six years ZweigWhite has conducted the Design/Build Survey. Firms headquartered in the Middle Atlantic (63%), Mountain (57%), and North Central (54%) regions of the United States are most likely to report being shut out of public-sector D-B projects due to state procurement laws.
Respondents are still optimistic about design/build's future in the public sector, however. More than three-quarters of respondents predict there will be an increase in the use of D-B in the public sector in the next five years.
Other findings from the survey include:
- Design/consulting firms experienced impressive growth in D-B revenue between 2000 and 2002. D-B revenue as a percentage of gross revenue for design/consulting firms grew a median of 60% over the past three years. Construction companies saw a median growth of 25%, and D-B firms a median growth of 12%.
- Thirty percent of design, construction, and D-B firms' gross annual revenue was derived from D-B projects in 2002. Both design/consulting firm and construction company respondents derived a median of 10% of their gross annual revenue from D-B projects in 2002, while D-B firm respondents derived a median of 60% of their revenue from D-B projects in 2002.