Strategies for Managing Risk on Design/Build Teams

When you are looking to pick up the right contractor for your Design/Build team, the Design Build Institute of America (DBIA) suggests that it should be a firm that you already know and with which you have done prior business. The report, Strategies for Managing Risk on Design/Build Teams, can guide you in developing an effective project team using risk averse parameters and guidelines. A handy “Checklist for Evaluating Potential Design Build Partner” is included.

Project contractual structures are explored with pros and cons given for each type, including a “Checklist of Considerations for Evaluating Structure of Design-Build Team.” Examples of vertical and horizontally structured relationships are provided. Both the design professional’s and the contractor’s perspectives are presented to help understand team member expectations and objectives.

Case studies are presented to illustrate challenges that can arise as well as steps to take to manage or avoid them altogether. Frequently used documents such as DBIA Document No. 580, Standard Form of Agreement Between Design-Builder and Teaming Party, and AIA Document C102-2015, Standard Form of Teaming Agreement Between Team Manager and Team Member for the Purpose of Responding to a Solicitation and Pursuing a Project, are reviewed with suggestions for provisions to consider during contract negotiations.

Key liability issues are examined with suggestions for questions to ask which can affect exposure and profitability. Emphasis is given to the contracted duties traditionally allocated solely to the contractor and how to avoid the risk of “flow-through” to the design professional when the contractor is the prime.

When you are looking for the right contractor to fulfill your design dreams as you spend your design/build days together in blissful project delivery, be sure to include this report among your planning documents.

Did I say that you look really nice in that hard hat and safety vest?

You may also be interested in:

Connecting the Dots: Business Risks and Climate Change

The relationship between business and climate change involves both risks and opportunities. Three risks, in particular, deserve close consideration as each of them highlights future business opportunities.

Do You Know?

Do you know what you need to know about contracting?