Perspectives on Critical Design Build Contractual Issues-Perspectives on Critical Design Build Contractual Issues Recording

Video Transcription

Video Summary

The presentation "Perspectives on Critical Design, Build Contractual Issues," by William Tinsley and Larry Borda, explores common contractual challenges in design-build projects. Key topics include delay claims, liquidated damages, standards of care, performance specifications, and unforeseen site conditions. Delay claims often involve strict notice requirements and owner discretion on time extensions, emphasizing the need for careful contract review and compliance. Liquidated damages, when properly crafted, add cost certainty by reasonably estimating potential damages linked to substantial completion. Standards of care vary, with typical contracts holding design professionals to customary industry norms, but some impose higher, sometimes unclear liabilities, complicating insurance coverage and risk management. Performance specifications shift design responsibility from the owner to the design-build team by focusing on measurable outcomes rather than detailed methods, which requires clear, objective criteria to avoid disputes. Contracts should explicitly address design flexibility and risk allocation. Unforeseen site conditions raise questions about the owner's duty to provide accurate site data; while law mandates owners avoid misleading bidders, contractors generally bear responsibility for site inspections, though allowances for change orders are recommended when conditions materially differ. Both speakers stress understanding one's contractual role, carefully flowing down obligations to subcontractors, and negotiating terms to manage risks effectively. The session highlights evolving public owner practices improving risk sharing and contract clarity in design-build projects.

Keywords

Design-Build Contracts

Delay Claims

Liquidated Damages

Standards of Care

Performance Specifications

Unforeseen Site Conditions

Risk Management

Contractual Obligations

Public Owner Practices