In construction project delivery methods, which method places the greatest risk on the contractor?

In construction project delivery methods, which method places the greatest risk on the contractor?

• A. Design-bid-build
• B. Design-build
• C. CM at risk
• D. Integrated project delivery

Answer: (B)

Design-build places the greatest risk on the contractor because one entity is responsible for both design and construction under a single contract. That means the contractor must meet the owner’s goals for cost, schedule, and performance while handling design decisions and potential design changes, with liability for design-related issues staying with the design-builder. The owner benefits from a single point of accountability, but risk is concentrated in the contractor who controls the design and must deliver a complete, workable project within the agreed parameters. In other delivery methods, risk is more distributed: design-bid-build separates design and construction, CM at risk shifts some risk to the construction manager under a GMP, and integrated project delivery shares risk among the team.

Design-build places the greatest risk on the contractor because one entity is responsible for both design and construction under a single contract. That means the contractor must meet the owner’s goals for cost, schedule, and performance while handling design decisions and potential design changes, with liability for design-related issues staying with the design-builder. The owner benefits from a single point of accountability, but risk is concentrated in the contractor who controls the design and must deliver a complete, workable project within the agreed parameters. In other delivery methods, risk is more distributed: design-bid-build separates design and construction, CM at risk shifts some risk to the construction manager under a GMP, and integrated project delivery shares risk among the team.