For anyone embarking on a design-build project, having a solid design-build agreement in place is crucial. A design-build agreement is a contract between an owner and a design-build team that defines the scope of work, responsibilities, timelines, and payment terms for the project.
If you`re new to design-build agreements, it can be helpful to review a sample agreement to understand what elements should be included. Here are some key components to consider when drafting your design-build agreement:
Scope of Work: The scope of work should outline the specific tasks and responsibilities of the design-build team, as well as any deliverables that are expected. This should include provisions for any changes to the scope of work during the project.
Timeline: The timeline should outline the expected start and end dates for the project, as well as any key milestones along the way. It`s important to include provisions for delays or extensions due to unforeseen circumstances.
Payment Terms: Payment terms should be clearly outlined in the agreement, including the total cost of the project, payment schedule, and any penalties for late or non-payment.
Intellectual Property: If the design-build team will be creating any original designs or materials, it`s important to include provisions for ownership and use of those materials after the project is complete.
Insurance and Liability: The agreement should specify the insurance requirements for the project, as well as any liability limitations for the design-build team.
Dispute Resolution: In the event of a dispute, the agreement should outline the process for resolving it, whether through mediation, arbitration, or litigation.
Confidentiality: If there are any sensitive or proprietary materials involved in the project, the agreement should include provisions for maintaining confidentiality.
While every design-build agreement will be unique to the specific project and team involved, using a sample agreement as a starting point can provide a useful framework. Be sure to work with legal and construction professionals to ensure that all necessary provisions are included and that the agreement meets your needs as both an owner and a design-build team.