The introduction of project-based learning into university engineering programs has been shown to positively benefit students that prefer a hands-on experience and give future employers assurance that recent graduates have the tools to handle real-world problems as opposed to theoretical situations. Enhancing the engineering self-efficacy of students, recent graduates and seasoned engineers is made possible through the solution of complex, open-ended problems typically found in engineering design. A high engineering self-efficacy, in turn, positively reflects a person's perception of their complex problem-solving capacity which is critical throughout the design process. The decision to either work virtually with a team or onsite with group members nearby may also further influence self-efficacy and, ultimately, the designer's success. This raises the question explored in this study: Will a design challenge impact engineering self-efficacy equally for online and in-person participants? Two groups engaged in a design challenge to develop a mechanism meant for drone applications, where one group designed and tested their solution in-person, while the other group sent design plans to a third-party for fabrication and testing. Participants filled out a prototype engineering self-efficacy scale before and after the challenge, revealing a significant difference between these two modalities. The small sample size is noted as the cause for inaccuracies and surprising findings. Guidelines for methodology implementation in a larger scale study are included.