DESIGN/BUILD: HOW AN ARCHITECT/ENGINEER AND CONTRACTOR CAN SUCCESSFULLY COLLABORATE TO WIN AND PERFORM DESIGN/BUILD PROJECTS

Abstract

This paper is based on design-build of typical turnkey industrial projects in Texas. Additional considerations would apply to design-build of residential projects.

1. Four Key Differences Between Design-Build and Traditional Design-Bid-Build Delivery
2. Three Alternate Approaches That Allow a Constructor and an Architect/Engineer to Participate in Design-Build Projects
1. Preliminary Considerations
2. Joint Ventures
3. Prime-Subcontractor
4. Consortium
3. Analysis of Key Issues Under Each Model
1. Licensing of Contractors and Architects/Engineers
2. Bonding/Letters of Credit
3. Inter-party Security for Performance
4. Schedule Liquidated Damages
5. Performance Liquidated Damages
6. Costs of Construction Rework
7. Costs of Construction Delay/Acceleration
8. Liability for Engineering Errors or Omissions
4. Liability for Bodily Injury and Property Damage

Appendices

Appendix A: Model Joint Venture Agreement
Appendix B: Model Prime-Sub Agreement (Constructor as Prime)
Appendix C: Model Consortium Agreement (with “Pool”)
Appendix D: Model Consortium Agreement (without “Pool”)
Appendix E: Model Provisions from Design-Build Agreement
     1. Waiver of Consequential Damages
     2. Exclusive Remedies provision
     3. No Damage for Delay provision

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