Design-Build contract tools

By: Kevin F. Peartree

Much has been made of the virtues of design-build project delivery. More than a few dry research papers have analyzed and demonstrated that a design-build project can take less time to complete for perhaps less money, than traditional design-bid-build. Design-build is particularly adept at controlling the growth of costs and schedule over the life of a project.

There are many factors that make this possible. Critical among them are how the parties structure their relationships and how they promote the best practices that can achieve time and cost savings. The right contract form and language alone will not guarantee the desired outcomes, but it can put the design-builder, designer and owner in a position to succeed. The ConsensusDocs family of design-build standard contract documents is one highly effective tool for the job. Developed by a coalition of industry associations, the ConsensusDocs seek to advance the best interests of the project as a whole, and not any one constituency.

When Does the Design-Builder Enter the Picture? A staple of many construction industry presentations is the graph depicting the increasing impact of design changes and the decreasing ability of project participants to positively impact project costs and performance over the course of a construction project. The parties’ ability to control overall project costs is highest in the feasibility and conceptual planning stages, and decreases as the project evolves. At the same time, the cost of design changes is lowest in those stages and increases significantly as the project progresses through design drawings, construction drawings and into the construction phase. The earlier the design-builder – wedding design and construction expertise – is involved in the project, the greater the possibility to realize cost savings and control.

The ConsensusDocs provide for the earliest possible involvement of the design-builder in the development of the project. The ConsensusDocs 400 Preliminary Design-Build Agreement engages the design-builder to develop design through schematics so that an owner can make a go/no go decision on the project. The design-builder can assist with the development of the owner’s project and project criteria, providing information and concepts that can positively impact the cost and time of construction. ConsensusDocs 410, the full design-build agreement between owner and design-builder, can accomplish the same.

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