What Are Design-Build Contracts?
In the traditional transportation project development process, the state DOT prepares a complete project design-either in-house or with a consultant-with specifications. Based on these specifications, the state DOT requests bids for construction contracts. Design-build contracts allow agencies to contract for both design and construction services in a single contract. Design-build contracts have the potential to make the project implementation process more efficient by: • Eliminating the administrative burden of issuing two contracts • Improving and streamlining both the design and construction of the project since both are done by the same company and therefore save the time required for the construction company to become familiar with the design. • Reducing the contractor’s risk by eliminating its exposure to lawsuits between the design and construction companies. However, design-build contracting also can also introduce potential problems such as: • Some contracting agencies may fee
