DESIGN-BUILD JOINT VENTURE AGREEMENTS: PROBLEMS AND SOLUTIONS

1. Common Allocation of Responsibilities of the Design/Builder in Design/Build Agreement to Various Team Members 4
   1. Design Responsibilities 4
      1. Who is responsible for programming 5
      2. Obligation of Architect to design to budge 6
      3. Redesign if over Budget; Liability to the Owne 10
      4. Control of the Design by Contractor or Architect; Liability to a Third Part 10
      5. Licensing Requirement 15
      6. Is the Contractor liable for Design Errors 17
      7. Value Engineering/Cost of Redesign/Allocation of Saving 17
      8. Compensatio 18
      9. Professional Obligations vs. Obligations as a Team Membe 19
   2. Construction Responsibilities 21
      1. Purchasing 21
      2. Project Management 21
   3. Surety Bonds 22
      1. General Indemnity Agreement 22
      2. Bond Premium Cost 25
      3. Bonding of Design vs. Construction 26
2. Contract Administration Issues among Team Members 28
   1. Insurance 28
      1. General and Professional Liability 28
      2. Wrap up Programs/Project Insurance 30
3. Post Construction Issues 31
   1. Warranty Liability: Expense and Control 31
   2. Post Construction Liability Tail 32
   3. Statutes of Limitations and Repose 32
      1. Texas 33
      2. New York 34
      3. California 35
      4. The Teaming Agreement 36
4. National Form, Contracts are just a Beginning 37

Abstract

Current national design-build agreements, their problems and shortfalls. Problems with public design-build bidding in Texas. Sample supplements are included.

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