Teaming Agreement Design Build

April 12th, 2021

[8] This risk is not addressed in AIA C102-2015. If you use the AIA C102-2015 document, it is recommended that the design professional add a language that limits the right of the construction contractor to rely on the services of the design expert`s proposal. This is precisely what happened in C.L. Maddox, Inc. v. Benham Group, 88 F.3d 592, 596 (8th Cir. 1996). [3] The lead designer commissioned an engineer to conduct an “in-depth study of the installation of equipment, equipment size and the provision of information and assistance to [the principal builder] to prepare the final construction costs (lump sum) for the project.” [4] The project did not go well based on the proposals of the engineering phase services and the premium design builder tried to recover more than $2.7 million by the engineer based on errors in the services provided by the engineer during his service design. The engineer submitted that he was not held responsible for the accuracy of the information provided by the engineer in the course of his offer phase services and therefore could not be held liable for the alleged damages resulting from the contractor`s reliance on that information. The 8th Circuit rejected the engineer`s argument and stated that “if a company presents itself as capable of performing work with a particular character, there is a guarantee that the work is performed correctly.” [5] The DBIA team agreement then contains a list of DBIA form contracts that could be used as a follow-up agreement for the project. If the design professional signs the DBIA team agreement without specifying the volume and royalty in the “follow-up contract,” there is a risk that if a dispute arises between the contractor and the design professional over the extent of the work and the costs of the building expert after the project award, the contractor may argue that the DBIA team agreement has created an applicable agreement to accept. In order to prevent the contractor from having to “make purchases” after the project is awarded to a less expensive design professional, the prudent design expert will insist that the parties to a team agreement agree on the design terms of the project and adhere to the parties` contract for the project work to the team agreement. In addition, the design expert may include a language in the team agreement, which provides the contractor with only a limited license for the use of design documents developed by the design expert during the proposal phase.

If the contractor`s price is based on the design developed by the design expert, the preservation of ownership of the design documents developed during the proposal phase may give the contractor leverage if the contractor agrees to work with the design specialist in the development of the proposal and project design services. If the design professional has chosen the right design partner and is able to communicate effectively with his build design partner about the reasons for including such a provision in the team agreement, then there should not be much pressure when including such a provision in the team agreement. If the design partner removes such a provision in the team agreement, the design expert may be required to reassess whether he has chosen the right design partner. AEPC has released the new D-580 agreement, which recognizes that, in many cases, team collaboration will increase and significantly increase the likelihood that it will be selected for the provision of design construction services. The new EJCDC® D-580 Teaming Agreement to Pursue Joint Business Opportunity for Design-Build Project provides the basic structure for pooling forces for preparing and submitting proposals for professional design services and addresses significant risk and cost allocation issues.

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