Design-Build Contracts

The design-build process combines the planning and construction phases of a project. Essentially, the functions of designing the project and actually completing construction according to such design are integrated into a single contract between the owner and the design-build contractor. Traditionally, the planning stage is completed first by a design professional with the contractor only coming in to execute the plans and specifications. With design-build, the process is consolidated under the umbrella of a single contractor. This often helps the owner realize a time- and cost-savings. Further, it reduces questions and concerns about the responsibility for construction problems as only one entity is serving the functions of architect, engineer, construction manager, and contractor.

Generally, the design-build contract is entered into prior to any design services being rendered. Payment for the design-build contractor can be accomplished in more than one way. Often, the contract will call for the design-build contractor to be paid on a cost-plus basis with a guaranteed maximum amount or will outline a fixed amount to which the design-build contractor will be entitled.

At its essence, the design-build contract will include provisions to accomplish the task of providing the owner with a completed project that is consistent with his design, timing, and cost expectations. Many general conditions routinely included in owner-contractor and owner-design professional agreements will be incorporated into the design-build contract. Naturally, identification of the roles played by the parties will be adjusted to conform to the design-build process.

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