Design-Build Contract Risk Allocation - Design-Build for Water and Wastewater Projects - page 117

costs associated with its errors or omissions and then would assume responsibility for any
problems and associated costs exceeding that amount.
Finally, team members may be rewarded with an incentive payment or bonus if they
have contributed to the success of the project. A designer, for example, could earn an
incentive payment if it completes its design on time and produces a design that satis-
fies the owner's requirements, enabling the design-builder to complete the project within
budget.
SUMMARY
Design-build contracting, because of its inherent advantages over other delivery systems,
offers owners and design-builders of water and wastewater projects a vehicle for deliver-
ing projects on time and on budget. The parties must, however, recognize that the DB
process in and of itself does not guarantee a successful project. The parties have to tailor
the DB process to address the unique risks and challenges presented by these projects.
Parties must first identify the risks each party faces, and then to adopt creative strategies
for containing and managing the risks as they arise.
REFERENCES
D.C. Municipal Regulations. 2001. Regs, tit. 19, §305 (2001).
Design-Build Institute of America (DBIA). 2008. Design-Build Manual of Practice, Doc-
ument Number 308, Design-Build Teaming Agreement Guide, 2nd ed. Washington,
D.C.: DBIA, www.dbia.org.
DBIA. 2010a. Design-Build Manual of Practice, Document Number 530, Standard Form
of Agreement Between Owner and Design-Builder Cost-Plus Fee With an Option for
a Guaranteed Maximum Price, art. 6.6.1.2. Washington, D.C.: DBIA, www.dbia.org.
DBIA. 2010b. Design-Build Manual of Practice, Document Number 530, Standard Form
of Agreement Between Owner and Design-Builder Cost-Plus Fee With an Option for a
Guaranteed Maximum Price, art. 11.1. Washington, D.C.: DBIA, www.dbia.org.
DBIA. 2010c. Design-Build Manual of Practice, Document Number 540, Standard Form
of Agreement Between Design-Builder and Design Consultant, art. 1.5.2. Washington,
D.C.: DBIA, www.dbia.org.