What is a Design Build Construction Contract?

When initiating a construction project, owners or developers need to have a design for the finished product. The owners or developers must enter into an agreement with a contractor or builder to take the blueprints and build the structure to make the design a reality.  In some cases, the owner will have an architect or design professional create the blue prints for the project. The owner will then shop around among different builders, allowing for the builders to submit bids and then entering into a contract for project completion. In other situations, however, the owner will take a different approach and the same professionals will be hired to both design and build the project.

When the same contractor or builder is hired to both facilitate the design of a structure and then take the project to completion, a design build construction contract must be created. This contract will specify the builder’s obligations for creating an acceptable design and constructing the project according to its terms. The stakes are high when a design build contract is created, and an experienced Las Vegas real estate lawyer should be consulted for help negotiating and drafting the agreement. Pinter Albiston LLP has extensive experience with design build construction agreements and we can help you throughout your project. Call today to learn more.

Understanding a Design Build Construction Contract

A design build construction contract streamlines the process of getting a project completed because the builder is involved from the beginning. The builder and owner will sit down, discuss the project and set basic parameters such as a budget and style. A design will be created collaboratively and a contract will be created to build the project as designed. The contract should be as specific as possible, with clear details about costs; materials; and risk sharing.

A design build contract can benefit both a builder and an owner if they work effectively together on the project. As the design process is underway, the builder can provide useful information on the actual costs of construction and how design decisions affect the difficulty of taking the project to completion.  One entity (the builder) is responsible for the success of the project, and it is possible to get the project done more quickly. The contractor also has certainty that he will not lose the project to a lower-cost bidder.

However, there are also risks associated with a design build construction contract. Without an outside designer, for example, the owner or developer will not have a third party looking out for his interests and overseeing the project. Architects, for example, can catch some problems in the field and can stop projects from getting off-track.  To protect against some of the pitfalls that a design build construction contract creates, the contract needs to be detailed and the developer needs to ensure that he is working with a high-quality design build firm.

Pintar Albiston, LLP can provide you with advice on negotiating a contract and can help to draft or interpret contract terms. Call today to schedule a consultation with a Las Vegas real estate lawyer and learn more about whether a design build construction contract is a good choice for your project.