5 Important Points You Should Know About Design Build Contracts

Points you should know about design build contracts include methods, features, awarding, selecting of staff, and benefits.

A design-build contract is an arrangement made between a client and a contractor of a building company wherein the contractor will be provided the sole obligation of developing, constructing, and completing the customer's construction work. The contract mainly starts with the discussion of the project, and its finalization will be based on what was arranged between the owner and also the contractor.

Processes

The entire process of a design-build contract is somewhat similar to a design-bid-built method wherein a customer will have to meet a developer to formulate a plan, as well as to make details which will be utilized for the bidding offer of the construction phase. The project will then be awarded to the lowest bidder.

Features

A design build process is comparable to design-build-operate, design-build-finance, and design-build-maintain methods. A design-build contract is a unique kind of project delivery system that is utilized in building and restoration activities. Usually, agreements follow the design-bid-build program, wherein the manager of the project starts by hiring the services of an architect. When the design period is done, the project is then presented for bidding to general contracting companies. The builder with the cheapest bid is generally the one who gets the project and will be liable for its completion in line with the planned project which was designed and submitted by the architect. Furthermore, a design-build contract is more like a design contract and a build contract combined into a single agreement. In addition, in a design-build contract, the smallest bidder will not necessarily be the one who will acquire the project, but rather to the contractor who was able to create the great offer.

Awarding

With design-build contracts, the project owner provides the entirety of the project to just one corporation. Normally, it is the contractor who wins the bidding, although designers or architects may also be granted a design-build contract for certain special cases. Once the contract is signed by both parties, the contractor will then take full duty of the designs and the construction works needed for the completion of the job. This type of system will let the job owner deal with just one person during the completion of the job, rather than having to coordinate with different groups.

Hiring of workers

The bidder granted with the deal will take the responsibility of hiring all the required architects and also engineers who will assist in completing the job. The bidder will also be the one to coordinate with or manage the project design group, and the offered designs of the project should be shown to the proprietor for approval. If the proposed design is approved by the owner, the builder then gets ahead with the task and its finalization.

Advantages

With design-build contracts, task managers have lesser functions and obligations to perform in the construction process. These contracts generally create an environment that's more team-oriented, resulting to lower claims and legal problems during the complete course of the task. Furthermore, budgets and estimations are much more precise, and completion time of the project is also faster.

A single key disadvantage for design-build deals is that the project owner might end up working with a builder and an architect who functions together. This is unlike the traditional system wherein either party will have to watch each other for the best interest of the project owner.


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Written by Patricia Strasser. Learn more about Arizona design build deals by visiting http://www.calviswyant.com/


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