Design Build Contract Example: A Comprehensive Guide
A design build contract is a legal agreement between a project owner and a design-build contractor. This type of contract is becoming increasingly popular in the construction industry because it puts the responsibility of both the design and construction of a project on the contractor, rather than dividing the two responsibilities among multiple parties. If you`re considering entering into a design build contract, it`s important to understand exactly what you`re getting into. In this article, we`ll walk you through everything you need to know about design build contracts, including an example of what a comprehensive contract might look like.
What is a Design Build Contract?
A design build contract is a legal agreement that outlines the terms and conditions of a project between the owner and the design-build contractor. This type of contract differs from traditional construction contracts in that it combines both the design and construction phases into a single contract. This allows the owner to have a single point of contact throughout the entirety of the project, and it puts the responsibility for both the design and construction on the contractor. In other words, the contractor is responsible for everything from the initial conception of the project to the final construction.
Example of a Comprehensive Design Build Contract
While design build contracts can vary widely based on the project and the parties involved, there are certain elements that most design build contracts will include. Here is an example of what a comprehensive design build contract might look like:
1. Scope of Work: This section will outline the specific work that will be performed under the contract. It should include a detailed description of the project, including any relevant drawings or specifications.
2. Design Services: This section will outline the design services that the contractor will provide. This might include schematic design, design development, construction documents, and any necessary revisions.
3. Construction Services: This section will outline the construction services that the contractor will provide. This might include site preparation, demolition, construction, and any necessary testing and inspections.
4. Change Orders: This section will outline the process for making changes to the project. It should include a detailed process for requesting and approving changes, as well as a process for adjusting the contract price and timeline.
5. Payment: This section will outline the payment terms for the project, including the contract price, payment schedule, and any penalties for late payment.
6. Termination: This section will outline the circumstances under which the contract can be terminated, as well as the process for doing so.
7. Warranties and Guarantees: This section will outline the warranties and guarantees that the contractor provides for the project, including any warranties on materials, workmanship, or equipment.
8. Insurance and Liability: This section will outline the insurance requirements for the project, as well as the liability limits for both the contractor and the owner.
9. Dispute Resolution: This section will outline the process for resolving disputes that may arise during the course of the project.
10. Governing Law: This section will identify the governing law for the contract and the jurisdiction in which any legal disputes will be resolved.
Conclusion
Design build contracts can be a great way to simplify the construction process and ensure that the project is completed on time and on budget. However, it`s important to carefully review and understand the terms of any design build contract before signing it. By working with an experienced design build contractor and reviewing a comprehensive contract example like the one provided here, you can be sure that you`re getting a fair deal and that your project will be a success.