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Contracts

Design-Build

Definition

A delivery method where one entity holds a single contract with the owner for both design and construction.

In design-build, the owner signs one contract with a design-builder who is responsible for both the design and the construction. The design-builder may be a contractor with in-house designers, or a contractor teamed with an architecture firm under a subcontract. It contrasts with design-bid-build, where the owner hires the designer and the builder separately.

Why it matters

One point of responsibility means fewer finger-pointing fights between designer and builder, and design and construction can overlap to save schedule. But the design-builder now owns design errors. An RFI that would be the architect’s problem in design-bid-build may be your cost in design-build.

Worked example

Illustrative: on a design-build version of Riverside Medical Center, the missing fire dampers behind RFI-212 would likely be a design error inside the design-builder’s own scope. Instead of an $86,400 change order to the owner, it could be an internal cost charged against contingency or the designer’s errors-and-omissions coverage, depending on the contract.

Common mistakes

  • Pricing design-build like hard bid without carrying design contingency.
  • Weak scope definition in the owner’s criteria, leading to disputes about what was promised.
  • Not managing design team deliverables with the same rigor as trade schedules.

How os.construction handles it

We’re building RFIs, design changes and cost impacts on one record, so a design-builder can see whether a change hits contingency or the owner. It’s being designed with founding contractors.