Construction contract Vs Design Build

There is no this or that answer to this quesiton as the project outcome depends on many factors. The choice of type of contract for the Owner also depends on factors like his own contract management skills, construction management skills etc. So to start with any Owner will be entering the Contract with the beleif that it is the best for him.

If the owner wants the adversarial set-up of a consultant engineer and a contractor, which of itself generates duplication of effort in order to prepare for disputes and claims by generating a shield of protective paper, so be it.

If there was a little more trust of the ethics of the contracting industry, the more efficient method of design and build would always be preferred. The consulting engineer would do what he has been trained for - designing things; and the contractor would build them - what he has been trained to do.

If the form of payment is a Lump Sum, risk is apportioned mostly to the Contractor, but the Employer does not have as much freedom to change his mind on requirements.

Ram,

If you still need some remarks...

From a contractor’s view, design-build gives substantial benefits to the owner such as: potential reduction in const. claims, single-point of responsibility (for design & construction), total project cost known at the start, shortened time-frame, and innovations (perhaps) during construction.

Regards,

Hernan

Russell

I want to add on some comments on your third point that if the form of payment is a Lump Sum then the Employer does not have as much freedom to change his mind on requirements. Surely if he does such in respect of change of specification/requirements or issue instructions for additions beyond the defined work scope, definitely he will about that as he has to pay for that.

Overall view is that Design and build Contract is beneficial to the Owner because in such cases all responsibilities and risks lie upon Contractor and Consultants.

Ram,

If you wish to have more light on such interesting topic you may refer to the following article

http://www.cwilson.com/newsletters/legalfw/lfsep05.htm

good luck