Category: Contracts & management
Prepared by Eng. Ahmed Fathy, Projects Manager ·
Definition
Design and build puts design and construction under one party against the owner's requirements, instead of separating the design consultant from the contractor. In FIDIC it corresponds to the Yellow Book.
Why it matters on a project
It shortens time because design and construction overlap, and puts design errors on the contractor. But the owner loses some control of detail if the requirements are not clear.
Measurement and pricing
Usually priced as a lump sum against the owner's requirements, with payments tied to design and construction stages.
Common mistake
Tendering design and build with very general owner's requirements, so the contractor designs to the lowest specification that meets the text.
Frequently asked questions
Is design and build cheaper?
It can save time and coordination, but price depends on clear owner's requirements and the risk passed to the contractor.
Who reviews the design?
The owner usually appoints a consultant to review design and construction on his behalf.
Related terms
- FIDIC contractsInternational standard forms of engineering contract defining rights, notices, claims and change management.
- TurnkeyDelivering the complete project ready for use with one party responsible for design and construction.
- Lump-sum contractA fixed-price contract for a defined scope; the contractor carries the quantity risk.
- Concept designThe first design stage: idea, massing and general layout without construction detail.
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