What You Should Know About Entering into a Design/Build Contract

Published on February 14, 2012 by

Legal Pitfalls of Design/BuildA project owner enjoys unique advantages when using the Design/Build method of construction. Check out our last post: Design/Build…A Construction Method that Saves Time and Money.

But there are three pitfalls that are important for the owner to avoid to stay within the limits of New York State law and to get the most from the architect/contractor team.

1. The first thing to watch out for is a general contractor offering you Design/Build while also selling you the services of the architect. It sounds good to you, the client, because the contractor seems to have a “ready made” team that can start work right away. But in reality, this arrangement is illegal under New York State Education law and is considered a Class E felony.

Here’s why…In accordance with the law, an entity not authorized to provide architectural services, such as a general contractor, cannot subcontract with, or employ, an architect in order to provide architectural services to you, a third party client (except if that contractor is the sole Owner of the project).

Because of the laws and regulations that the architect/engineer is required to uphold, the contractor can never have leverage over the design professional. This also violates the special relationship that the contractor and architect have with you, the owner. Each is responsible and answerable to you.

The upshot…be wary if a general contractor offers you Design/Build that includes an architect either on his payroll or as a subcontractor.

2. A second problem that may arise during the project is similar to the illegal relationship explained above. The architect and contractor may collude with each other against the client. This could cost you time and increase the price of the project. If you suspect this is happening, you should report it to the New York State Education Department immediately.

3. And a third issue is, the opposite could happen where the architect and contractor grow to distrust one another. This undermines the advantages of Design/Build. It not only makes for an inefficient process, but it could slow down the momentum that distinguishes Design/Build projects.

One of the most important aspects of the due-diligence every owner must perform before entering into Design/Build contracts (or any construction contracts, for that matter), is to research the record of the team and thoroughly vet their references.

As we said in our previous post, we know some excellent contractors here in Central New York who would make good candidates for Design/Build projects. Give us a call and we can help you find the right people for your project.

Until next time,

Dan Berkhoudt, Architect

Tom Davis. Engineer

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