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Design-Build Projects: Key Issues; Drafting to Mitigate Risk for Contractors, Design Professionals, and Owners
Defining the Parties' Relationship; Standard of Care; Performance Warranties; Licensing Requirements; and More
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About the Course
Introduction
This CLE webinar will provide practitioners with an in-depth look at the design-build project delivery method. The expert panel will provide insight into issues unique to each project participant involved in a design-build project, as opposed to the more traditional design-bid-build method, and describe best practices for customizing the project agreement to mitigate risk for owners, contractors, and design professionals.
Description
The design-build project delivery method is popular due to the potential time and cost savings it may provide the owner. However, it presents unique project planning issues and contractual drafting considerations for owners, contractors, and design professionals as compared to the traditional design-bid-build method. Counsel representing all parties should be aware of these differences so that they can best customize the project agreement to protect their clients, even if beginning with form documents.
For instance, in design-build projects, the relationship among the parties is unique in that the design professional is the contractor's teammate, not the owner's consultant. Therefore, the duties owed among the project participants differ from the traditional model. Where the designer may have worked directly for the owner and acted primarily in the owner's interests to protect them from defects in the contractor's work, under the design-build model, the designer has financial counterincentives to making the owner aware of construction problems. Therefore, the owner may want to set up checks and balances in the contract's terms.
Other considerations that differ from the traditional method are the standard of care owed by the designer compared to the contractor which may change from the ordinary duty of care owed by the traditional design professional to a more stringent standard typically expected of the contractor. Furthermore, where the contractor traditionally is asked to warrant the results of their work, not the overall success of the project, the design-build contractor may be required to warrant most of the project's performance.
Listen as our expert panel provides an in-depth look at the design-build project delivery method. The panel will provide insight into issues unique to each project participant and describe best practices for customizing the project agreement to mitigate risk for owners, contractors, and design professionals.
Presented By
Mr. Leonelli focuses his practice on strategic counseling and dispute resolution in the areas of construction and engineering, manufacturing and supply, energy (conventional and renewable), and commercial disputes. Justin takes pride in providing results-oriented legal solutions to help clients navigate complex challenges, mitigate risk, and secure favorable outcomes. As a part of his construction practice, Mr. Leonelli represents owners and contractors on public and private construction projects globally. He services his clients through all project phases as both project counsel and litigation counsel. Mr. Leonelli also assists clients in negotiating supply agreements and navigating manufacturing-related disputes. He has significant experience with domestic and international supply issues that implicate both the UCC and United Nations Convention on Contracts.
Mr. Wickard is a construction lawyer, concentrating his practice on dispute resolution, construction contract negotiation, and public procurement. He has a very active procurement practice, handling local, state, and federal bid protest proceedings throughout the country and advising clients on a multitude of issues that arise during and after the procurement process. He also has familiarity with public records and sunshine acts and routinely assists clients obtain public records or maintain the confidentiality of their own information submitted to public agencies. Mr. Wickard’s litigation practice includes representing clients in disputes subject to arbitration, before a number of state and federal courts and before government agencies with respect to a wide variety of matters. He has extensive construction litigation experience and has represented owners, contractors, subcontractors, suppliers, engineers, and architects in various disputes involving scheduling, delay, inefficiency claims, defective work, mechanics’ liens, prompt payment claims, bond and insurance claims. Mr. Wickard also has a very active construction transaction practice. He drafts, negotiates and advises on all types of construction and design contracts. He has extensive experience with all AIA contract forms. He has drafted and negotiated numerous construction and design contracts for a wide variety of domestic and international projects.
Ms. Wolfe practices in the firm’s Construction and Infrastructure Practice Group, focusing on assisting clients with a variety of contract and construction disputes. These disputes involve a range of issues, including those related to design and construction defect, warranty, termination, disruption and delay, regulatory and code violations, interconnection, licensing, liens, leases, tenancy, and payment. She has handled issues in the energy industry related to coal, natural gas, onshore wind, offshore wind, solar, geothermal, and other projects. In addition, she has worked on issues for clients in the manufacturing, automotive, healthcare, finance, technology, and hospitality industries. Ms. Wolfe has significant experience in U.S. federal and state courts as well as in arbitrations seated in the U.S. and around the world, taking her client’s disputes through jury trials, bench trials, and final hearings. She leverages this experience in tandem with her industry knowledge to craft a litigation and dispute resolution approach intended to put her clients in a position to achieve effective resolutions and satisfy their business goals, whether that means achieving favorable settlements, securing precedent-setting decision, or taking the case to a tribunal or jury.
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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Live Online
On Demand
Date + Time
- event
Tuesday, April 29, 2025
- schedule
1:00 p.m. ET./10:00 a.m. PT
- Introduction: overview of the design-build project delivery method
- Issues unique to design-build projects vs. design-bid-build projects
- Relationship between the project participants and duties of loyalty
- Standard of care
- Performance warranties
- Entitlement to change orders
- Licensing requirements
- Insurance/bonding considerations
- Taking the issues into account: project agreement drafting considerations
- Team structure
- Financial terms
- Risk shifting and legal liabilities
- Design phase services
- Construction phase services
- Insurance/indemnity
- Dispute resolution
- Other considerations
- Practitioner takeaways
The panel will review these and other important considerations:
- What are the advantages and disadvantages to using the design-build project delivery method as compared to the more traditional design-bid-build method?
- How does the relationship between the parties, including standard of care, differ using the design-build method?
- What business considerations are unique to the design-build method, such as licensing requirements and insurance/bonding?
- What are unique terms and best practices for drafting design-build project agreements to best protect each project participant?
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