Legal and Business Issues Unique to Design and Build Construction Services



Having a design and build construction services provider can save you money, but there are also some legal and business issues that you should be aware of. You need to know what these issues are in order to decide if a design and build service is right for you.

Streamlines project delivery


Streamline project delivery is an efficient and cost effective way to manage construction projects. This process allows design and construction to work hand in hand to accomplish results.


The Design-Build Institute of America has a ton of information and tools on the subject. You should also take the time to investigate the construction firm you are considering. They will likely have a track record of successfully completing similar projects. This can be a big benefit to you in the future.


The best design and construction firms have a solid reputation and can offer references to their past projects. These firms will also be able to provide comprehensive solutions. This can include design and construction services, engineering and planning, project management and construction supervision.


The Construction Industry Institute recently released a study of project delivery systems. They discovered that design-build was the best performing of the various project delivery systems.

Reduces claims against A/E firms


Taking a proactive approach to risk management is a key element of reducing claims against design & build construction services. This approach will save time and prevent surprises that can disrupt the best laid plans.


Risks can arise from many sources. This includes material supply, labor availability, building conditions, and operational continuity. Each of these is specific to the construction industry. The project team must take a proactive approach to risk management, thereby reducing the incidence of changes later in the project.


A/E shall perform site visits during the Design Build Period. These visits will include weekly visits, partial final inspections, and intermediate systems inspections. The travel time from A/E's office to the site must be at least one and one-half hours. Site visits of two hours or less will be reimbursed at fifty percent of the full daily rate.

Creates a "team" of contractor and designer


Having a team of designers and engineers is not the only way to go. Many architects prefer the freedom of having more control over the construction phase of the project. This is a good thing as it allows for better coordination and higher quality end results.


A good contractor is one of the most important stakeholders in any project. Their financial capital allows them to make the most of the budget they are given. A good contractor is also an invaluable ally in the long run. A bad contractor is an expensive adversary whose bad behavior may spell doom for the project.


Using a design & build construction services contractor can reduce the risks afoot in the design phase and the construction phase. A good contractor will also have a clear idea of how to keep the design and construction process on track. A good contractor will also be able to re-design the project as needed in the event of cost overruns.

Legal and business issues unique to design-build


Regardless of whether you are a contractor or a client, there are legal and business issues unique to design-build construction services that you should be aware of. Design-build is an increasingly popular method of project delivery in the United States, and there is an increase in the number of projects being built using the method. It can reduce risks to owners, save time, and save money. But it is not always the best option for every project.


In a traditional construction project, a general contractor is chosen through a competitive bid process. This contractor then self-performs the critical portions of the work, which often provide the most value to the owner. This contractor's liabilities are capped, in proportion to the amount of the contract. This ensures that the taxpayer's exposure to errors and improper practices is minimized.


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