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Design-build is a project delivery method in which the owner contracts with a single entity for both design and construction. The design-build contract is based on the owner's ?program,? a statement of project requirements.
Hear this out loud PauseThe predominant payment method for design and build contracts are awarded under a lump sum JCT contract as it reduces the risk and management on the client. The Design and Build procurement route has a lot of advantages & disadvantages.
Hear this out loud PauseA Design-Build Contract is a variation on either a Fixed-Price or Cost-Plus contract.
Hear this out loud PauseA: As an example, a cost-plus contract may establish that the total estimated cost of a building project is $10 million plus a fixed fee of $1.5 million, roughly 15% of the total cost, as the contractor's profit. So the total expense to the buyer would be approximately $11.5 million ?the cost plus the fee.
fixedprice contract provides for a price that is not subject to any adjustment on the basis of the contractor's cost experience in performing the contract. This contract type places upon the contractor maximum risk and full responsibility for all costs and resulting profit or loss.
Hear this out loud PauseThe JCT Design and Build Contract is designed for construction projects where the contractor carries out both the design and the construction work. Design and build projects can vary in scale, but the Design and Build Contract is generally suitable where detailed provisions are needed.
A project delivery method in which a single fixed price ? which encompasses both designing and constructing the project ? is established when the contract is signed.
The JCT Design and Build Contract is designed for construction projects where the contractor carries out both the design and the construction work. Design and build projects can vary in scale, but the Design and Build Contract is generally suitable where detailed provisions are needed.