Design Liability in the Procurement Phase

This article serves as a technical report focusing on design liability during the procurement phase of firm-fixed price design-build projects. It outlines the challenges faced by contractors in the US infrastructure industry, particularly regarding design errors and the associated risks. The text discusses the importance of understanding risk allocation in owner contracts and the necessity for contractors to negotiate key terms before submitting proposals. It emphasizes the need for collaboration between contractors and designers, especially in the early stages of procurement, to mitigate risks. The article details critical aspects such as the standard of care for design, payment terms, dispute resolution mechanisms, and the implications of professional liability insurance. Additionally, it addresses the responsibilities of contractors in determining material quantities and the process of value engineering to maintain project budgets. Overall, the report highlights best practices for managing design liability and reducing project losses in the procurement phase.