1. Topics of Discussion
l Contracting Methods
l Advantages and Disadvantages
l Design/Build Subcontractors
l Terminology

2. Types of Contracting Methods
l Design/Build
l Traditional (Design – Bid – Build)
l Construction Manager (CM)

3. Contractual Relationships
 Design/Build
Owner
Design/Builder
Contractors /
A/E
Subcontractors

4. Design/Build Definition
l Design/Build
 Method where design and construction are a
single source of responsibility for one entity.
 Design/Builder may or may not self perform
some or all of the design and construction work.
 Design/Builder accountable from the earliest
stages of the project.
 Thisform of construction services has become
more popular in the last 5-10 years; however,
Duke has been doing this for 25 years.

5. Design/Build Process
l Owner conceives Project.
l Owner receives price/budget for design and
construction from single entity, up front, prior to full
design.
l Owner contracts directly with the Design/Builder.
l Design/Builder has full responsibility for design and
construction.
l Design/Builder contracts with all A/E Firms and
subcontractors.
l Design/Builder then works with Owner to design
project and create construction documents.
l Design/Builder hires subcontractors, manages
construction.

6. Contractual Relationships
l Traditional
 Design – Bid – Build
Owner
A/E General
Contractor
Subcontractors

7. Traditional Definition
l Design – Bid – Build
 Architect is responsible for design.
 General Contractor is responsible for
construction.
 General Contractor is obligated to perform
exactly what is indicated or inferred by contract
drawings and specifications.
 Method is oldest way to buy construction
services.
 Normally General Contractor is not involved in
the design or preconstruction phase - builds
only.

8. Traditional Process
l Traditional
 Design – Bid – Build
– Owner conceives project
– Owner hires architect
– Architect provides budget / feasibility
– Architect designs project
– General Contractor bids project
– Owner hires General Contractor
– General Contractor hires subcontractors,
manages construction

9. Contractual Relationships
l Construction Manager
Owner
A/E Construction
Contractors
Manager

10. Construction Manager Definition
l The Construction Manager (CM) is a professional
management team with focus on construction.
Many CM firms are also GC’s or used to be a GC.
l Specialize in organizing and buying the various
components of the Project and administer the work
on behalf of the Owner.
l Preconstruction phase likely to involve interface
with Architect, but no control of Architect.
l Architect control is left up to the Owner
l This term did not exist 25 years ago.
l In purest form does not hold contracts.
l Usually used on larger projects.

11. Construction Manager Process
l Owner conceives project
l Owner hires an Architect
l Owner hires Construction Manager, fee based
l Architect designs, Construction Manager monitors
design
l Construction Manager manages bidding process
l Construction Manager administers contracts
l Contractors (subcontractors) contract with Owner
l Prime Contractors manage construction day to day
l Construction Manager oversees construction