{"id":904948,"date":"2025-10-28T14:54:54","date_gmt":"2025-10-28T20:54:54","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=904948"},"modified":"2025-10-28T14:54:59","modified_gmt":"2025-10-28T20:54:59","slug":"design-build-delivery-risk-associated","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/design-build-delivery-risk-associated\/","title":{"rendered":"Risk Associated With Design-Build Project Delivery Method"},"content":{"rendered":"\n

David Adelstein | Florida Construction Legal Updates<\/a><\/p>\n\n\n\n

The\u00a0design-build project delivery method<\/a><\/strong>\u00a0is when the design-builder (typically the contractor) is responsible for both the design and construction of the project. Thus, the responsibility for both the design and construction falls under the same umbrella and, naturally, carries more risk. The discussion below demonstrates risk involved in the design-build project delivery method, particularly in the government contracting arena:<\/p>\n\n\n\n

Design-build contracts are common for construction, renovations, and repair projects, where the government provides the contractor with its requirements, but the contractor is free to exercise its ingenuity in achieving that objective or standard of performance and selecting the means to do so. It is not uncommon for issues to arise in design-build contracts. One of the more common issues is when the contract describes a certain requirement, but later during the design process, the contractor will submit in the 35% or 100% design submittal with a lower requirement. The government will unknowingly approve that design, not realizing the contractor may have \u201cslipped in\u201d or made an error on one of the requirements; thus, the approved 100% design has a lower requirement as compared to the contract. In these situations, we have found that the government is justified in demanding the contractor provide the requirements specified in the RFP and resulting contract.<\/u><\/strong><\/p>\n\n\n\n

Thus, our long-held rule has been that the government cannot properly be blamed for approving the design when the contractor failed to inform the government that its design deviated from Task Order minimum requirements<\/u>.<\/strong><\/p>\n\n\n\n

Appeals of \u2013 Meltech Corporation, Inc.<\/em>, ASBCA No. 61766, 2025 WL 2166133 (ASBCA 2025) (internal citations omitted).<\/p>\n\n\n\n

What about the opposite? If the government approves a design that contains components of a HIGHER, not lower, quality?<\/p>\n\n\n\n

In a recent appeal with the Armed Services Board of Contracts Appeal, the design-build contractor made a mistake during the design process where it was giving the government a higher quality than required of it in the RFP with the design criteria for the project. (It is typically the opposite where the design-builder gives the government a lower quality than required of it in the RFP.) The design-build contractor sought to substitute the higher quality material for the material required by the RFP. Through the substitution, the government wanted a credit claiming the design-builder should be bound by the 100% design that the government approved with the higher quality material.  The Board, however, did not see it the unfair way the government saw it:<\/p>\n\n\n\n

As we have held that the government does not waive RFP requirements when it unwittingly approves a lesser quality design, a contractor\u2019s reasonable mistake should not require it to provide materials above and beyond the contracts requirements. This is an example of a contractor\u2019s mistake during the design-build phase, in which the contractor ultimately provided a finished material at the quality specified in the RFP\/Design Criteria. There was no savings by [the design-builder] nor a loss to the government. The equitable adjustment should not increase or decrease the contractors\u2019 loss at the government\u2019s expense. Moreover, the government presented no evidence to the Board that it incurred any costs of significance associated with its review of [the design-builder\u2019s] submittals on these issues. Accordingly, the government has failed to carry its burden of establishing that it is due a deductive credit\u2026.<\/strong><\/p>\n\n\n\n

Appeals of \u2013 Meltech Corporation, Inc.<\/em>, ASBCA No. 61766, 2025 WL 2166133 (ASBCA 2025) (internal citations omitted).<\/p>\n\n\n\n

Thus, while the design-builder cannot skirt its responsibilities by providing a lesser quality than required of it. The government can\u2019t take advantage of the design-builder\u2019s mistake with a higher quality when the higher quality exceeds the benefit of the bargain.<\/p>\n\n\n\n

\n\n\n\n

When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes – please call Advise & Consult, Inc. at 888.684.8305, or email experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

David Adelstein | Florida Construction Legal Updates The\u00a0design-build project delivery method\u00a0is when the design-builder (typically the contractor) is responsible for both the design and construction of the project. Thus, the responsibility for both the design and construction falls under the same umbrella and, naturally, carries more risk. The discussion below demonstrates risk involved in the… Continue reading Risk Associated With Design-Build Project Delivery Method<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[14],"tags":[9895,12,10633],"class_list":["post-904948","post","type-post","status-publish","format-standard","hentry","category-construction-2","tag-advise-consult","tag-construction","tag-design-build-projects","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nRisk Associated With Design-Build Project Delivery Method - 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