Design/build is generally described as a single contract in which final design and construction responsibility is vested in a single contracting party. Performance requirements and financial guarantees are often included in design/build contracting. The higher predictability of overall project costs from design/build is seen as a major advantage.

Design/build must-have's include:

• A fully communicated understanding of project scope,



• Effective communications systems and personnel,



• Full understanding of project roles and responsibilities in accordance with design/build methodology and rights and responsibilities under the design/build contract,



• Owner decision-making consistent with the design/build process, and



• Good technical staff with a working knowledge of design/build best-practices.

A number of industry organizations provide guidance on organizing a design/build project and selecting contract documents. Design Build Institute of America, the American Institute of Architects, Engineer's Joint Contract Documents Committee, Associated General Contractors and Federation Internationale Des Ingenieurs-Conseils all provide helpful guidance on organizing a design/build project. Each set of standard contract documents takes a slightly different approach to the design/build process.

Not all projects are well-suited for the design/build process. The Georgia Tech Design/Build Selector tool can assist in evaluating use of design/build for specific projects. The Construction Industry Institute also provides a project delivery system selection workbook.

For owners not familiar with design/build, consultants familiar with design/build delivery systems can help avoid serious mistakes in setting up a project. Recent reports of serious financial losses to several large, well-established engineer/constructors indicate the dangers of using a design/build delivery system without adequate attention to the details.

Design/Build Contract Considerations:

• Which standard contract forms best fit your project,



• Which method of compensation is appropriate, considering other risk allocation and scope considerations,



• Develop scope of work and allocations of responsibility consistent with design/build goals,



• What performance guarantees and remedies are appropriate for non-compliance,



• Are your contract terms insurable and bondable,



• How will you balance the need for minimum qualifications with public bidding requirements and need for reasonable level of competition, and



• Do owner reviews and approvals reflect changes in practice required for design/build.

Pre-Design Planning Techniques

Once you have selected your design/build team, communicated your wants and needs and have turned the project over to the sole-source responsibility contractor, some additional pre-design planning will help ensure the success of your project.

The largest benefit to improved cost, schedule and quality of performance is achieved at the pre-contract planning and development stage of any project.

Successful projects are achieved as a result of timely and adequate sharing of information to all project participants. This early construction concept was ignored during the 70's and 80's, but is now re-emerging on projects focused on improving performances and improved results.

Owners are increasingly implementing a team construction concept in the administration of construction contracts. Team construction describes a deliberate effort by owners and their advisors to select and utilize contract provisions, project management techniques and dispute avoidance/resolution processes that enhance communication, trust building and sharing of information. Tailoring of "off the shelf" contract documents specifically for the project will yield significant benefits. Building trust through open communication and equitable resolution of disputes are critical elements in the successful implementation of the Team Construction Contract. Teaming and Partnering is another phrase used to describe the Team Construction concept.

Pre-project planning includes planning how the work will get done, by whom and how. This requires looking at contractual responsibilities, examining the expectations and levels of effort of each of the parties, realistically assessing the levels of competency of each team member, (assemble project-specific teams with holistic skill-sets if necessary), planning for improved communication and relationship-building, and, pre-planning for disputes- preferably a multi-level or step process describing how disputes will be resolved.

Common problems that need to be addressed in evaluating whether the design/build process is appropriate include:

• Degree of owner definition of design criteria and details,



• Statutory authority (for public owners),



• Can selection of design/build be based on best value,



• What type of qualifications and experience is required and how can these be incorporated into a public bidding process,



• What are contractors and designer licensing requirements,



• Does the owner have experience in establishing appropriate RFP requirements and selection process for the design/builder,



• Can owner revise its traditional design/bid/build practices and roles to work within the design/build process,



• Performance guarantee definition, including financial security and other remedies for non-compliance, and



• Do design/build project participants have the additional skills and behaviors required for successful project results.

Contract Management and Project Management
Construction veterans know equitable or fair contract terms alone will not ensure successful project results. Good teamwork and communication are key elements in obtaining good results on any construction project. Thorough management includes attention to detail.

While good management principles apply to all types of contracts, design/build contracting also has demand of close coordination, excellent communication and collaboration and ability to limit level of effort as required by design/build processes. Visit the Contract Management section of this web site for information on how to streamline management of data, changes and other contract duties.