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Design-build and Design-Bid-Build Contracts: Their Advantages and Disadvantages - Research Paper Example

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Design-build and Design-Bid-Build Contracts: Their Advantages and Disadvantages

The design-build and design-bid-build are the two forms of contracting in this regard that are most commonly considered while planning for a construction project. While the design-build is a traditional method, the other is an alternative form of contracting involving greater complicacies. Also, these two systems have their respective advantages and disadvantages that can significantly affect the effective completion and quality of work. This particular study thus considers the concept of these two contracting systems and discusses about the advantages and disadvantages of both the systems of contracting. Introduction: Design-build and design-bid-build are two contract forms as involved in building projects and improvements. Design-build represents single solicitation or contract where the statute after authorization allows alternating methods of contracting. In this process of contracting the contractor takes the responsibility of both architectural or engineering projects as well as projects for construction, and these are considered under a single contract. On the other hand, design-bid-build contracts include multiple solicitations. Unlike the design-build contract system, this is a traditional approach that has been designed by the statute. The design-bid-build contract system considers the public owner improvement projects. In this system of contract, the agency of contracts either “performs the design work in-house or solicits for an architectural/engineering design firm to prepare drawings and specifications under a design services contract, and then separately contracts for construction by engaging a contractor through competitive bidding (“low bid” method)” (Design-Bid-Build vs Design-Build, 2011, p.2). The design-bid-build contract system is generally used when a new construction is in plan. On the other hand, the design-build system of contract is used as an alternative when the projects are complex and well defined, particularly requiring an engineering component and construction fix, like the construction of Courthouse Square Complex (Design-Bid-Build vs Design-Build, 2011, p.2). Both these systems have their advantages and disadvantages. The present study focuses on an understanding of the concepts of design-bid-build and design-build contracting systems and the various advantages and disadvantages associated with these systems. Literature Review: Different studies have been conducted on the two forms of contracting systems in building and construction- design-build and design-bid-build. As Bramble (2003, p.15) in his studies discussed, in a design-build team, the designers are encountered with risks and troubles associated with the estimates of the designs. In the design-bid-build contract system, the risk is generally to the owner since with any problem with the details of the documents, the contractor generally demands an increase in price. In case of design-build, the estimates are however dependent on contracts of designs that are less detailed and at times incomplete as well. The contractor’s and owner’s risks have also been discussed in studies conducted by Gransberg, Koch and Molenaar. In design-build contracts the contractors’ risks include rework resulting from poor workmanship, design errors causing redesign and reworking of construction, defaults made by subcontractors, and fluctuation in the market. The owners’ risks include contract amount of DB, on time payment, and major default. In design-bid-build contract systems, the risks of the contractors include rework resulting from poor workmanship, defaults made by subcontractors, and fluctuation in the market. The risks of the owners in this regard include design errors resulting into redesign and rewor ...Show more

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The system of contracting proves to be an essential part in the construction projects since the planning of the design and the execution of the project depends on this contract. …
Author : boganlaila
Design-build and Design-Bid-Build Contracts: Their Advantages and Disadvantages essay example
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