Design Build Contract Template for United States

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Key Requirements PROMPT example:

Design Build Contract

"I need a Design Build Contract for a $50M healthcare facility in Texas, with construction starting March 2025, that includes specific provisions for medical equipment installation and phased occupancy requirements."

Document background
The Design Build Contract is a sophisticated project delivery method widely used in the United States construction industry where a single entity is responsible for both design and construction services. This contract type is particularly suitable for complex projects where coordination between design and construction phases is crucial for project success. It's commonly used when owners seek to reduce their administrative burden and expedite project delivery by having a single point of responsibility. The contract includes comprehensive provisions for design development, construction execution, quality control, payment mechanisms, and risk allocation, all while ensuring compliance with federal and state construction laws, professional licensing requirements, and building codes. Design Build Contracts are increasingly preferred over traditional design-bid-build approaches due to their potential for reducing project duration, minimizing disputes, and fostering innovation through early contractor involvement in the design process.
Suggested Sections

1. Parties: Identification of the Owner and Design-Builder, including their legal status and contact details

2. Background: Context of the project and the reason for entering into the agreement

3. Definitions: Detailed definitions of terms used throughout the contract

4. Scope of Work: Comprehensive description of design and construction services to be provided

5. Contract Price and Payment Terms: Total contract sum, payment schedule, and payment procedures

6. Project Timeline: Project schedule, milestones, and completion dates for both design and construction phases

7. Design Development and Approval: Process for design development, submissions, and owner approvals

8. Construction Phase Services: Details of construction execution, quality control, and management

9. Changes and Change Orders: Procedures for handling changes to design or construction scope

10. Insurance and Bonds: Required insurance coverage and bonding requirements

11. Warranties and Guarantees: Design-Builder's warranties for both design and construction work

12. Testing and Inspections: Requirements for testing, inspections, and quality assurance

13. Substantial and Final Completion: Criteria and processes for completion and acceptance

14. Dispute Resolution: Procedures for handling disputes between parties

15. Termination Rights: Grounds and procedures for contract termination

16. General Provisions: Standard legal provisions including governing law, notices, and assignment

Optional Sections

1. Building Information Modeling (BIM): Include when BIM is required for project delivery, specifying protocols and requirements

2. Sustainability Requirements: Include for projects targeting specific environmental certifications (LEED, etc.)

3. Commissioning: Include for complex facilities requiring formal commissioning process

4. Early Work Package: Include when fast-track delivery requires early construction activities

5. Owner-Furnished Equipment: Include when owner will provide significant equipment or materials

6. Subcontractor Relations: Include when specific subcontractor selection or management requirements exist

7. Value Engineering: Include when formal value engineering process is required

8. Site Security: Include for projects with specific security requirements or sensitive locations

9. Phased Occupancy: Include when owner requires partial occupancy before full completion

10. Hazardous Materials: Include when site has known or suspected hazardous materials

Suggested Schedules

1. Schedule A - Design Criteria Package: Owner's project requirements and performance specifications

2. Schedule B - Site Information: Site surveys, geotechnical reports, and existing conditions

3. Schedule C - Price Breakdown: Detailed breakdown of contract price components

4. Schedule D - Project Schedule: Detailed project timeline with milestones and deadlines

5. Schedule E - Key Personnel: List of key team members and their roles

6. Schedule F - Required Insurance: Detailed insurance requirements and coverage limits

7. Schedule G - Forms: Standard forms for applications for payment, change orders, etc.

8. Schedule H - Technical Specifications: Detailed technical requirements and standards

9. Appendix 1 - Drawing List: List of all design drawings and specifications

10. Appendix 2 - Permits and Approvals: List of required permits and responsible parties

11. Appendix 3 - Quality Management Plan: Detailed quality control and assurance procedures

12. Appendix 4 - Safety Plan: Project-specific safety requirements and procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Commercial Real Estate

Residential Development

Industrial Construction

Infrastructure Development

Healthcare Facilities

Educational Facilities

Hospitality

Retail Development

Technology Centers

Manufacturing Facilities

Sports and Entertainment Venues

Government Facilities

Transportation

Energy and Utilities

Relevant Teams

Legal

Commercial

Operations

Project Management

Design

Construction

Procurement

Risk Management

Quality Assurance

Finance

Business Development

Technical Services

Contract Administration

Relevant Roles

Project Director

Construction Manager

Design Manager

Contract Administrator

Project Engineer

Architect

Procurement Manager

Risk Manager

Legal Counsel

Commercial Director

Development Manager

Technical Director

Operations Manager

Quality Assurance Manager

Cost Controller

Chief Executive Officer

Chief Financial Officer

Vice President of Construction

Director of Design Services

Industries
Federal Acquisition Regulation (FAR): Primary regulation for federal government procurement, including construction contracts. Important for public projects and as industry standard guidance.
American Institute of Architects (AIA) Design-Build Documents: While not legislation, these standardized documents are widely recognized in US courts and provide important contract framework aligned with legal requirements.
State Licensing Laws: Requirements for architectural and contractor licensing in the relevant state, as design-build contracts involve both professional design services and construction work.
State Construction Lien Laws: Mechanics' and materialmen's lien rights vary by state and must be addressed in the contract terms.
Davis-Bacon Act: Federal law requiring payment of prevailing wages on public works projects, relevant if the project involves federal funding.
Occupational Safety and Health Act (OSHA): Federal regulations governing workplace safety, particularly important in construction projects.
National Environmental Policy Act (NEPA): Environmental impact considerations required for certain projects, especially those with federal involvement.
Americans with Disabilities Act (ADA): Requirements for accessibility in design and construction of facilities.
State Building Codes: Local and state-specific requirements for construction standards and safety.
Miller Act: Federal law requiring performance and payment bonds on federal construction projects, often mirrored in state 'Little Miller Acts'.
Copyright Act: Protects architectural works and drawings, relevant for the design portion of the contract.
State Insurance Requirements: State-specific requirements for insurance coverage in construction and design projects.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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