Our Tallahassee construction lawyers understand that the need to be more efficient, productive, and profitable is ever-present in the construction industry. The selection of a project delivery system is an integral component that will have an impact on the three aforementioned goals. A project delivery system is a process by which a team of construction professionals will execute a construction project through the assigning of responsibilities and risks. In this article, we will introduce you to the design-bid-build project delivery system.
The Design-Bid-Build Method
The Design-Bid-Build project delivery system is a general contracting method that is the most frequently used in commercial projects. Each phase of the process is completed methodically and the contractor is selected by a price bid. The owner will contract with the architect to design the project first before moving on to a contractor selection. The owner will provide bidding contractors with the design documents. After a review the bid documents, the contractors will submit a bid and the owner will typically select the lowest bidder and, from there, a contract is formed with the newly selected contractor. The contractor will form contracts with subcontractors for the scopes of work outlined in the construction contract.
Advantages and Disadvantages
Every project delivery system has benefits and risks. Following are the advantages and disadvantages of choosing the design-bid-build method.
Advantages: Design-Bid-Build projects are more traditional and easier to manage. The architect becomes an advocate to the owner. There is only one bid package for construction.
Disadvantages: Relationships between the contractor, architect, and engineer can be potentially strained which causes owners to end up serving as a middleman. Selection of a lower bid can lead to an increase in change orders. Our Tallahassee construction lawyers have seen that projects with an increase in change orders experience more legal disputes compared to those that keep change orders to a minimum. The linear structure of this system can be slower and cause delays overtime since a new phase cannot begin until the previous has ended.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.