Establishing secure connection…Loading editor…Preparing document…

Design Build Construction Contract

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

DESIGN BUILD CONSTRUCTION CONTRACT

This Design Build Construction Contract ("Contract") is made and entered into as of by and between Owner: whose address is and Design-Builder: whose address is .

RECITALS

WHEREAS, Owner intends to construct the project known as located at (the "Project");

WHEREAS, Design-Builder is qualified and licensed to provide integrated design and construction services and represents that it shall perform design, procurement and construction of the Project in accordance with this Contract and the Contract Documents; and

WHEREAS, Owner desires to engage Design-Builder to provide design and construction services under the terms set forth herein and Design-Builder desires to provide such services on the terms and conditions set forth in this Contract.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties agree as follows:

1. DEFINITIONS

1.1 "Contract Documents" means this Contract, attached Exhibits, Drawings, Specifications, any issued Change Orders, and other documents incorporated by reference. Conflicts among documents shall be resolved in the order set forth in Exhibit A unless otherwise agreed in writing.

1.2 "Work" means all labor, materials, equipment, design services and services required by the Contract Documents for the completion of the Project.

1.3 "Substantial Completion" means the stage when the Work is sufficiently complete so Owner can occupy or use the Project for its intended purpose, subject only to minor punch list items that do not materially interfere with such use.

2. SCOPE OF WORK

2.1 Design-Builder shall provide all design services, construction administration, procurement, labor, materials, equipment and supervision necessary to perform and complete the Work in accordance with the Contract Documents. The detailed scope is described as follows:

2.2 Design-Builder shall perform the design in a professional manner consistent with applicable codes and industry standards and shall coordinate design and construction to achieve timely project completion.

3. CONTRACT TIME

3.1 Commencement of Work shall occur on or before and Substantial Completion shall be achieved by , subject to adjustments for approved Change Orders and Excusable Delays.

3.2 If Design-Builder fails to achieve Substantial Completion by the date set forth above, liquidated damages in the amount of $ per day shall apply as full liquidated damages and not as a penalty, unless otherwise agreed in writing.

4. CONTRACT PRICE; PAYMENT

4.1 Owner shall pay Design-Builder the Contract Sum of $ subject to additions and deductions for approved Change Orders.

4.2 Retainage: Owner shall retain of each progress payment until Substantial Completion, unless otherwise agreed in writing.

4.3 Final payment shall be due upon final completion, receipt of all warranties, releases and lien waivers, and submission of the final invoice and as-built documents.

5. CHANGES; CHANGE ORDERS

5.1 No change in the Work or Contract Sum shall be effective unless authorized by a written Change Order signed by Owner and Design-Builder. The Change Order shall state the change in Work, the adjustment to the Contract Sum, and any change to the Contract Time.

6. PERMITS; LAWS; SITE CONDITIONS

6.1 Design-Builder shall obtain and pay for all permits, fees and inspections necessary to perform the Work unless otherwise specified in the Contract Documents. Design-Builder shall comply with all applicable laws, codes and regulations.

6.2 Owner shall disclose known site conditions materially affecting the Work. Design-Builder shall promptly notify Owner of differing site conditions discovered during the Work.

7. SUBCONTRACTORS AND PROCUREMENT

7.1 Design-Builder may engage subcontractors and suppliers. Design-Builder shall be responsible for payment and performance of its subcontractors and suppliers and shall require them to comply with applicable provisions of this Contract.

8. WARRANTIES

8.1 Design-Builder warrants that the Work will be free from defects in materials and workmanship for a period of from the date of Substantial Completion, except as otherwise provided in the Contract Documents. Design-Builder shall remedy defects promptly at its expense.

9. INSURANCE AND BONDS

9.1 Design-Builder shall maintain insurance coverages customary for projects of similar size and scope, including commercial general liability, employer's liability, automobile liability, and workers' compensation, and shall provide certificates of insurance to Owner upon request.

9.2 Performance Bond required: Yes

10. INDEMNIFICATION

10.1 To the fullest extent permitted by law, Design-Builder shall indemnify, defend and hold harmless Owner and its agents, officers and employees from and against claims, damages, losses and expenses, including reasonable attorneys' fees, arising out of or resulting from performance of the Work, provided such claim is caused in whole or in part by any negligent act or omission of Design-Builder or its subcontractors, regardless of whether caused in part by a party indemnified hereunder.

11. DEFAULT; TERMINATION

11.1 If either party materially breaches this Contract and fails to cure within a period of fourteen (14) days after written notice, the non-breaching party may terminate this Contract for cause. Owner may also terminate for convenience upon written notice and shall pay Design-Builder for Work performed and costs reasonably incurred as of termination date.

12. DISPUTE RESOLUTION

12.1 The parties shall attempt in good faith to resolve disputes promptly by negotiation between senior representatives. If unresolved within thirty (30) days, the parties agree to mediation before commencing arbitration or litigation.

12.2 Any dispute not resolved by mediation shall be finally resolved by binding arbitration administered in accordance with the parties' agreement to arbitrate, and judgment upon the arbitration award may be entered in any court of competent jurisdiction.

13. NOTICES

13.1 All notices required or permitted under this Contract shall be in writing and delivered to the addresses below by personal delivery, certified mail, or overnight courier and shall be effective upon receipt.

14. ASSIGNMENT

14.1 Neither party shall assign its rights or delegate its obligations under this Contract without the prior written consent of the other party, which shall not be unreasonably withheld, except that Owner may assign to a lender for security purposes.

15. GOVERNING LAW; ENTIRE AGREEMENT; SEVERABILITY

15.1 This Contract shall be governed by and construed in accordance with the laws of the state in which the Project is located, without regard to conflict of laws principles.

15.2 This Contract, together with the Contract Documents, constitutes the entire agreement between the parties and supersedes all prior agreements, negotiations and representations, whether written or oral, relating to the subject matter hereof.

15.3 If any provision of this Contract is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

16. MISCELLANEOUS

16.1 Waiver: The failure of either party to enforce any provision shall not constitute a waiver of that provision or of the right to enforce it later.

16.2 Counterparts: This Contract may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.

Owner:

By:

Date:

Design-Builder:

By:

Date:

Enter text✕
Prepare your document for signing right on this page
  • 01 Edit the text and complete the fields
  • 02 Click Sign Now and on the next screen add recipients and signature fields in SignNow
  • 03 Start your free trial to sign and send your doc
Sign Now

What a Design Build Construction Contract Is and when it applies

A Design Build Construction Contract combines design and construction responsibilities under a single agreement in which one entity (the design-builder) delivers both architectural or engineering design and construction services to an owner. The contract typically defines scope, deliverables, design standards, schedule, payment structure, change-order procedures, warranties, insurance requirements, dispute resolution, and assignment rules. This integrated delivery model shifts coordination risk to the design-builder, can accelerate timelines by overlapping design and construction phases, and requires clear allocation of responsibilities, design-liability limits, and approval milestones to avoid scope gaps or cost disputes.

Why use a Design Build Construction Contract for project clarity

A single-source contract centralizes accountability for design and construction, reduces handoff delays, and simplifies claims allocation. It can shorten delivery schedules and provide a single point of responsibility for defects, but it requires detailed scope language and buyer protections to control cost and quality risks.

Why use a Design Build Construction Contract for project clarity

Who commonly completes and signs this agreement

Typical participants include owners, design-build firms, subcontractors, lenders, and named insurers; each has distinct interests and required contract provisions.

  • Owner / Developer: Purchaser of the project who sets performance and budget requirements and holds the design-builder to delivery milestones and warranty obligations.
  • Design-Builder / Prime Contractor: The integrated firm or joint venture responsible for design, construction, permitting, and coordination with subcontractors and vendors.
  • Lenders, Investors, and Insurers: Parties that review the contract for collateral security, payment provisions, bonding, and insurance coverage requirements.

Identify each party role clearly on the signature page and attach organizational details and authorization letters for entities signing on behalf of companies.

Core contract sections to include for a professional agreement

A robust design build contract contains six core areas that allocate risk, define performance, and set remedy procedures so all parties understand obligations across design and construction.

Scope of Work

Precise description of design deliverables, construction scope, specifications, and excluded items; include exhibits and drawings to avoid later disputes over implied duties or missing elements.

Schedule

Detailed milestones, critical-path dates, liquidated damages for delay, and procedures for time extensions tied to defined force majeure and owner-caused delays.

Payment Terms

Contract price structure (lump sum, GMP, or target cost), progress payment schedule, retainage percentage, payment applications, and procedures for disputed invoices.

Change Orders

Authority and process for issuing design or work changes, pricing methodology for changes, and time impact evaluation to control scope creep and cost overruns.

Risk & Insurance

Indemnities, limits of liability, required insurance policies, performance bonds, and waiver of subrogation terms that align with lender or owner requirements.

Warranties & Remedies

Express warranties on design and construction quality, correction periods, defect notice procedures, and dispute resolution mechanisms including mediation or arbitration paths.

Essential information fields to capture on the contract

Project Name: Full project title
Project Address: Street, city, state, ZIP
Parties: Legal entity names
Contract Price: Amount and currency
Effective Date: MM/DD/YYYY format
Scope Reference: Exhibit or drawing IDs

Step-by-step: completing the contract reliably

Follow a structured filling order to minimize omissions and ensure enforceability.

  • 01
    Prepare Exhibits: Attach drawings, specs, and schedules.
  • 02
    Enter Parties: Use legal entity names, authorized signers.
  • 03
    Set Dates: Use MM/DD/YYYY for all key dates.
  • 04
    Sign and Date: All parties sign full signature blocks.

How to set up an online signing workflow

Configure digital routing to match the contractual signing order and required authentications before eSignature.

Field Configuration
Signer Order Sequential or parallel
Authentication Email or SMS code
Attachments Require exhibits uploaded
Audit Trail Enable full event log

Where to send or file the executed contract

Routing depends on role: owner, design-builder, lender, and project file owner each get copies and retain signature evidence.

  • Owner Copy: Retain executed original in contract file.
  • Design-Builder Copy: Keep for project administration and warranties.
  • Lender / Escrow: Deliver if contract secures financing draws.
  • Permitting Agency: Submit attached documents if required by local code.

Digital signing and eSubmission: platform considerations

Choose a platform that captures audit trails, supports required authentication, and stores tamper-evident signed PDFs for record retention.

  • Authentication: Email, SMS, or stronger
  • File Types: PDF and DOCX support
  • Integrations: Connect with project systems

Ensure the chosen provider supports ESIGN/UETA compliance and retention capabilities that meet your legal and lender requirements; document export must preserve signature metadata.

Common timing rules and contract deadlines to track

Contracts include milestone dates and recurring deadlines; track them in a master schedule and link payment triggers to verified completion events.

Contract Effective Date:

Date when obligations and warranties begin

Notice to Proceed:

Start-of-work deadline tied to schedule

Substantial Completion:

Triggers final payment and commissioning

Final Completion:

Punchlist completion and release of retainage

Warranty Start:

Begins at substantial completion or specified date

Common mistakes to avoid when preparing the contract

  • Vague scope descriptions that omit deliverables or acceptance criteria, leading to contractor-owner disputes and costly change orders.
  • Missing or inconsistent dates for milestones and payment triggers, which can void liquidated damages clauses or delay draws.
  • Insufficient insurance, bond, or indemnity clauses that fail lender or owner requirements, exposing parties to uninsured loss.
  • Improper signatory authority or unsigned amendments; failing to attach exhibits or signature authority documents creates enforceability gaps.

Penalties, liabilities, and common contract risks

Lien Risk: Failure to pay can result in mechanic’s liens
Delay Damages: Liquidated damages reduce contractor recovery
Breach Remedies: Termination and damages provisions apply
Regulatory Fines: Noncompliance with permits invites penalties
Warranty Exposure: Correction obligations after turnover
Insurance Gaps: Unmet coverages shift financial risk

Supporting documents and export options to include

Attach clear supporting exhibits and ensure signed copies export as tamper-evident PDFs with embedded metadata for legal retention and lender review.

Signature Blocks

Full printed name, title, date, and corporate block for each signatory; include evidence of signing authority for agents and corporate officers.

Scope Exhibits

Attach governing drawings, specifications, and schedules as numbered exhibits with revision dates to prevent scope ambiguity during construction.

Bond & Insurance

Include performance and payment bond forms, certificate of insurance requirements, and insurer contact details as contract exhibits.

Change Log

Maintain a signed change-order register showing approval date, cost impact, and time impact to preserve auditability.

Who typically signs and why

Owner / Developer

The owner signs to accept the design-builder’s obligations and to commit project funds; signatory should be an authorized executive or authorized agent with documented signing authority to bind the owner entity.

Design-Builder (Firm)

An authorized representative of the design-build firm signs to assume design and construction responsibilities, warranty obligations, and to accept payment terms; include evidence of corporate authority when signing.

Key project milestones from award to turnover

A sequential milestone plan helps track delivery and payment triggers from contract award through warranty period.

01

Contract Award

Execution and effectiveness of the agreement; procurement and bond delivery follow.

02

Design Completion

Final design submission and owner approval milestone before construction start.

03

Construction Start

On-site mobilization and start of physical work after permits and NTP.

04

Substantial Completion

System handover, commissioning, and start of warranty obligations.

eSignature vendor comparison for executing construction contracts

Cost and capability vary across providers; signNow is shown first for direct comparison of baseline pricing and common enterprise features used in contract execution workflows.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by vendor Varies by vendor Varies by vendor Varies by vendor
Bulk Send Yes Yes Yes Yes Varies
Audit Trail Yes Yes Yes Yes Yes
Envelope Cap No cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Frequently asked questions about Design Build Construction Contracts

Answers to common questions about validity, signatures, notarization, amendments, and risk allocation when preparing and executing a design build contract.


Need help? Contact support

be ready to get more
Join over 28 million airSlate SignNow users
Sign Now
Company
Forms
Pricing
Resources
Knowledge base
Other Products
© 2026 airSlate Inc. All rights reserved.