Design-Build Poses a Greater Risk to Contractors Than Conventional Delivery

Source:, April 26, 2023
By: David Pacifici

Design-build delivery carries much greater risk to a contractor than conventional project delivery methods. Chief among these risks is the potential for increased actual or final costs to a general contractor or design-build entity compared to the estimates presented in their bid. The result is that many contractors using design-build are experiencing lower profitability or even taking losses.

In addition, contractors are making claims against their prime engineering subconsultants and the mitigation coverage in their contractor’s professional liability (CPrL) insurance at a much higher frequency and severity than the subconsultants and insurers had anticipated.  Read more.

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