There are three main advantages to a design-build contract. First, the construction team is motivated to work with the architect to develop a practical design. The team can find creative ways to reduce construction costs without reducing the function of the final product. The second major advantage involves the schedule. Many projects are commissioned within a tight time frame. Under a traditional contract, construction cannot begin until after the design is finished and the project has been awarded to a bidder. In a design-build contract the contractor is established at the outset, and construction activities can proceed concurrently with the design. The third major advantage is that the design-build contractor has an incentive to keep the combined design and construction costs within the owner's budget. If speed is important, design and construction contracts can be awarded separately; bidding takes place on preliminary plans in a not-to-exceed contract instead of a single firm design-build contract.