Design-Build Contract: Definition, How It Works, Risks
Jump to Section
Quick Facts — Design-Build Contract Lawyers
- Avg cost to draft a Design-Build Contract: $480.00
- Avg cost to review a Design-Build Contract: $670.00
- Lawyers available: 70 real estate lawyers
- Clients helped: 67 recent design-build contract projects
- Avg lawyer rating: 5.0 (2 reviews)
What is a Design-Build Contract?
A design-build contract, sometimes called a design/build, D-B, or D/B contract, is a project delivery system often used in construction. While the traditional approach to construction requires contracts with two separate entities, a designer and a contractor, a design-build contract combines these two entities, so only one company is responsible for the designing and building contract for a project.
Design-build contracts save time and money and can prevent situations where an owner may be caught in the middle of a dispute between a contractor and a designer. With this kind of contract, the designer and the contractor work together from the beginning of the project as a team.
Some advantages that owners enjoy from a design-build contract include:
- Unified project recommendations
- Collaborative problem solving
- No blame-shifting between designer and contractor
- One point of responsibility
- Savings in time and money
Design-build contracts are becoming more popular to tackle home building and remodel projects while saving time and money.
Click here to read more about design-build contracts.
Design-Build Contract Templates
100% Lawyer Drafted
100% Lawyer Drafted
100% Lawyer Drafted
100% Lawyer Drafted
How a Design-Build Contract Works
Design-build contracts work by providing an owner with just one contract to design and build a project. Rather than hiring a separate architect and contractor, a design-build firm provides both professionals who work together on the project from the beginning.
Using a design-build contract, rather than the traditional design-bid-build contract, owners benefit from the possibility of beginning construction before the final design is completed.
This project is a single-source collaboration so that it can be completed in stages with the designer and contractor working hand in hand. Some design-build firms are now even providing services like acquiring licenses, permits, approvals, and inspections for the construction.
Read this article for more information about how design-build contracts work and how they are used.
CC verified
Risks of a Design-Build Contract
Design-build contracts come with many advantages, but there are also risks associated with this type of project delivery.
Some risks or downsides that clients need to consider include:
- The contract doesn't usually impact or include labor costs
- If it is not scheduled correctly, there could be delays in construction
- Final expenses can sometimes be higher than the original estimates
- You cannot use an integrated design with a design-build contract
- The final outcome may not be the expected result
Another significant disadvantage of the design-build contract is the loss of control and project oversight that the owner faces. In a traditional construction contract, the owner hires a separate architect and contractor. This allowed the owner to use the architect like a private consultant to ensure quality control and that the project was completed as per the design.
However, in a design-build contract, the architect and the contractor work for the same company and are on the same team. This could leave the owner of a project in the dark without a way to detect quality control issues.
Advantages of a Design-Build Contract
However, an owner considering a design-build contract should also weigh the advantages of using this type of contract.
Advantages of a design-build contract that you do not get with a traditional design-bid-build contract include:
- Time Savings: When the designer and contractor work together, it eliminates lost time associated with the traditional design-bid-build process. D-B contracts also allow for the start of construction before the final design is complete.
- Cost Savings: The close coordination between the architect and the contractor allows for cost savings because the contractor can provide the designer with their firsthand knowledge about purchasing and installing different materials.
- One Point of Contact: Rather than reaching out to and communicating with a designer and a contractor separately, the D-B contract provides one point of contact for the owner.
- Fewer Change Orders: Because the architect and contractor work together, fewer change orders will occur throughout the project. However, the downside of this is that if an owner wants a change order, it will usually not be covered by the defined scope of the project and could cost extra.
- Reduced Risk to Owner: Design-build contracts shift the design liability from the owner to the D-B firm. The owner is not liable for design errors because the designer is part of the D-B contract team.
Some other advantages also include:
- Simplified construction drawings
- Fast-tracking schedules
- Customization of the design to the site conditions
The best way to determine if a design-build contract is suitable for your project is to meet with the design-build firm to discuss your construction project and options. Generally, projects best suited for a design-build contract are projects that are on a tight schedule or where an owner is looking for reduced costs.
If you still have questions about design-build contracts, you can also contact a construction lawyer who has experience with design-build project delivery systems.
Image via Pexels by Burst
Role of a Contractor in a Design-Build Contract
The contractor in a design-build contract is usually a general contractor. However, in some cases, the project will be led by a professional designer like an architect, engineer, or architectural technologist.
The contractor's primary role in a building project is to coordinate construction activities to ensure that the project is completed on time and within the specified budget. Contractors will plan, lead, execute, supervise, ad inspect the project throughout the duration of the project.
When a contractor is working under a design-build contract, they will also work closely with the designer on the project. Together, these two professionals can ensure that the project is completed to the specifications of the client.
What is Included in a Design-Build Contract?
Design-build contracts are not "one size fits all" contracts and can be customized to fit the needs of both the design-build firm and the customer. Although the specifics of the contract may change, the following elements should appear in any construction contract:
- Name and contact information of the design-build firm
- Name and contact information of the customer
- The legal description of the property, usually based on the deed on record with the clerk's office
- The cost
- What happens if the customer cannot secure financing
- Description of the work and the completion date
- Requirements for licenses, permits, and insurance
- The process for a change order
- Liability clause
- Remedies for breach of contract
- Dated signature of both parties
Design-Build Contract FAQs
Do design-build contracts save money?
How much money an owner using a design-build contract may save depends on the type of project being completed. On average, clients save between 6% and 10% on projects when using a design-build contract.
How do design-build firms charge?
The cost of hiring a design-build firm for your project will vary; however, design-build firms usually charge fees of around 5% of a project's total cost.
Who takes the risk in a design-build contract?
In a design-build contract, most of the risks shift from the homeowner and fall on the design-build firm. Instead of the homeowner being responsible for design issues, the firm is responsible because the designer and contractor work together.
Get Help with A Design-Build Contract
Do you have questions about design-build contracts and want to speak to an expert? Post a project today on ContractsCounsel and receive bids from construction lawyers who specialize in design-build contracts.
See Real Design-Build Contract Projects
California Contract Review for Real Estate New Construction Review
- California
- 3 lawyer bids
- $795 - $1,500
Georgia Residential Construction Agreement Review Drafting
- Georgia
- 2 lawyer bids
- $500 - $590
California Contract review for a large HVAC upgrade project for a non-profit building Review
- California
- 4 lawyer bids
- $650 - $2,000
Pennsylvania Buyer/seller contract review Review
- Pennsylvania
- 6 lawyer bids
- $400 - $850
California Review a contract for architectural design services for a commerical kitchen in Southern California Review
- California
- 10 lawyer bids
- $400 - $1,500
See all Design-Build Contract projects
ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.
Need help with a Design-Build Contract?
Meet some of our Design-Build Contract Lawyers
Nicholas M.
Nicholas Matlach is a cybersecurity expert (CISSP) and an attorney who is dedicated to helping small businesses succeed. He is a client-focused professional who has a deep understanding of the challenges that small businesses face in the digital age. He also provides legal counsel to small businesses on a variety of issues, including formation, intellectual property, contracts, and employment law.
"Enjoyed his demeanor. Professional yet down to earth. The document created for me was very explicit and easy to read. I would recommend :)"
Joshua B.
Josh Bernstein has been serving real estate and corporate transactional clients since 2002. His experience is varied, and he enjoys working on and puzzling out novel and complex corporate and real estate matters. Josh’s experience includes, among other things, the following: representation of public companies in connection with SEC reporting and compliance work (proxies, 10-K’s; 10-Q’s; 8-K’s, etc.); representation of public and private company securities issuances (including private placements, and other similar offerings); assistance in structuring and drafting joint ventures, both for investors and operating partners, and including both real estate and corporate ventures; handling public and private company mergers and acquisitions; and asset sales and dispositions; assisting clients, big and small, with real estate acquisitions, sales and financings; managing large-scale and multi-state real estate portfolio acquisitions, dispositions and financings; complex condominium creation, structuring and governance work, including: commercial condominiums, use of condominiums as a land planning tool, wholesale condominium property acquisitions and dispositions, and rehabilitating failed or faulty condominium legal structures to make ready for sale; development of restrictive covenants and owners’ association documents for master-planned communities; compliance with federal statutes governing real estate sale and development (including, without limitation, the Interstate Land Sales Full Disclosure Act, the Housing for Older Persons Act, and the Americans with Disabilities Act); representation of real estate lenders, for both improved and unimproved property, and including numerous construction financings secured by real estate; assistance with commercial leasing; from both the landlord and tenant side, and including condominium leasing; training residential home and condominium sales staff for compliance with applicable local and federal law; and workouts of all kinds. When he’s not busy lawyering, Josh may be found watching 80’s commercials, flying a single-engine plane, playing poker, or trying to be a good dad.
"Josh has been extremely helpful sorting through issues with a tenant."
Samuel R.
My career interests are to practice Transactional Corporate Law, including Business Start Up, as well as Real Estate Law, Estate Planning Law, and Intellectual Property Law. I am currently licensed in Arizona, Pennsylvania and Utah, after having moved to Phoenix from Philadelphia in September 2019. I currently serve as General Counsel for a bioengineering company. I handle everything from their Business Transactional Agreements, Private Placement Memorandums, and Corporate Structures to Intellectual Property Assignments, to Employment Law and Beach of Contract settlements. Responsibilities include writing and executing agreements, drafting court pleadings, court appearances, mergers and acquisitions, transactional documents, managing expert specialized legal counsel, legal research and anticipating unique legal issues that could impact the Company. Conducted an acquisition of an entire line of intellectual property from a competitor. In regards to other clients, I am primarily focused on transactional law for clients in a variety of industries including, but not limited to, real estate investment, property management, and e-commerce. Work is primarily centered around entity formation and corporate structure, corporate governance agreements, PPMs, opportunity zone tax incentives, and all kinds of business to business agreements. I have also recently gained experience with Estate Planning law, drafting numerous Estate Planning documents for people such as Wills, Powers of Attorney, Healthcare Directives, and Trusts. I was selected to the Super Lawyers Southwest Rising Stars list for 2024 - 2026. Each year no more than 2.5% of the attorneys in Arizona and New Mexico are selected to the Rising Stars. I am looking to further gain legal experience in these fields of law as well as expand my legal experience assisting business start ups, and also trademark registration and licensing.
"Thanks Samuel for your thorough review of my materials. I'm incredibly impressed by your prompt turnaround in drafting my letter. The letter captured the facts perfectly and struck exactly the right tone."
Daniel D.
Attorney with 14 years experience in transactions, civil litigation and criminal law
"Great Job. Daniel is very responsive and he understood what I needed done."
Anna C.
I am a business attorney focused on practical, efficient contract drafting, review, and negotiation for healthcare organizations and growth-stage and established businesses. My work includes commercial agreements such as NDAs, MSAs/SOWs, leases, vendor and services agreements, SaaS, and employment and severance agreements. I partner closely with clients to identify key legal and business risks, deliver clear, business-minded redlines with concise issue summaries, and keep transactions moving. Clients value my responsive turnaround, judgment, and ability to balance risk with commercial objectives.
"Working with Anna was great! She took the time to review and build out all the documents I needed (privacy policy, t&c, health data policy, etc.) to start going on my online business. Would definitely work with her again."
Namrita N.
Retired Dentist transitioned to Law, with a special interest in Commercial Real Estate, Startup businesses, Asset Purchase Agreements, and Employment Contracts. I love to help dentists and physicians with legal issues pertaining to licensing, credentialing, employment, and general business-legal questions.
"Dr Notani is a top lawyer. We very much appreciate her attentiveness and expertise."
Jim S.
Jim Slattery most recently served as General Counsel at Regional News Network, a large owner of broadcast television stations. Jim is an experienced attorney with broad-based expertise. He is a seasoned negotiator who has been involved in negotiations as complex as the Olympic Games. Jim spent 18 years as Vice President for Business and Legal Affairs at NBCUniversal. Previously, Jim worked in the media industry in various roles at All American Television. Jim’s success can be attributed to his ability to properly analyze data, manage projects, lead teams, develop creative solutions for complex problems, focus on strategically optimizing assets, manage/allocate risk and collaborate with divergent constituent groups to achieve objectives. Jim received a J.D. and a B.B.A. from the University of Notre Dame.
Find the best lawyer for your project
Browse Lawyers NowLawyer Reviews for Design-Build Contract Projects
Review a contract for architectural design services for a commerical kitchen in Southern California
"Good job guys! Thanks for the quick turn-around and the quality work!"
ContractsCounsel User
Contract review for a large HVAC upgrade project for a non-profit building
"Justin is responsive, professional, friendly, and knowledgeable. He advised us on a large scale HVAC project by reviewing a contract and suggesting updates. We are happy to have worked with him, and would do so again. We highly recommend Justin."
ContractsCounsel User
Liability Protection
Design-Build Contract
Texas
Can a design-build contractor be held responsible for design errors in a Design-Build Contract?
Can a design-build contractor be held responsible for any design errors or deficiencies that may arise during the construction process in a Design-Build Contract? I am considering entering into a Design-Build Contract with a contractor for a construction project, and I want to understand the extent of the contractor's liability for any potential design-related issues that may arise. I have heard conflicting information about the allocation of design responsibility in such contracts, and I want to ensure that I am fully aware of the legal implications before proceeding with the agreement.
Darryl S.
Yes, under a Design-Build Contract, the design-build contractor is typically responsible for both design and construction, meaning they can indeed be held responsible for design errors or deficiencies that arise during the construction process. I recommend you have a lawyer specifically review the contract you have with the db contractor to see the exact language regarding design errors and responsibility
Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.
View Trustpilot ReviewNeed help with a Design-Build Contract?
Real Estate lawyers by top cities
- Austin Real Estate Lawyers
- Boston Real Estate Lawyers
- Chicago Real Estate Lawyers
- Dallas Real Estate Lawyers
- Denver Real Estate Lawyers
- Houston Real Estate Lawyers
- Los Angeles Real Estate Lawyers
- New York Real Estate Lawyers
- Phoenix Real Estate Lawyers
- San Diego Real Estate Lawyers
- Tampa Real Estate Lawyers
Design-Build Contract lawyers by city
- Austin Design-Build Contract Lawyers
- Boston Design-Build Contract Lawyers
- Chicago Design-Build Contract Lawyers
- Dallas Design-Build Contract Lawyers
- Denver Design-Build Contract Lawyers
- Houston Design-Build Contract Lawyers
- Los Angeles Design-Build Contract Lawyers
- New York Design-Build Contract Lawyers
- Phoenix Design-Build Contract Lawyers
- San Diego Design-Build Contract Lawyers
- Tampa Design-Build Contract Lawyers
ContractsCounsel User
Contract Review for Real Estate New Construction
Location: California
Turnaround: Less than a week
Service: Contract Review
Doc Type: Design-Build Contract
Page Count: 65
Number of Bids: 3
Bid Range: $795 - $1,500
ContractsCounsel User