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Project Management Design & Builds Agreement

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PROJECT MANAGEMENT DESIGN & BUILDS AGREEMENT

Project Identification

This Project Management Design & Builds Agreement (the Agreement) is entered into as of between Client Name: and Service Provider: .

Recitals and Definitions

Recitals: Client desires to engage Service Provider to provide project management, design and build services for the Project identified above. Service Provider represents that it has the necessary experience, personnel and resources to perform the services described in this Agreement.

Definitions: Capitalized terms used in this Agreement shall have the meanings set forth in this Agreement. "Deliverables" means the tangible outputs described in the Deliverables section. "Acceptance" means written confirmation by Client that a Deliverable meets the Acceptance Criteria set forth for that Deliverable.

Scope of Work

Service Provider shall perform project management, design, procurement, construction coordination and commissioning services as described below. Services shall be performed in accordance with industry standards, applicable codes and the schedule set forth in this Agreement.

Deliverables and Acceptance

The following Deliverables shall be provided by Service Provider and are subject to Client Acceptance based on the Acceptance Criteria specified.

Timeline & Milestones

Budget, Payments & Change Orders

Confidentiality

Each party shall hold confidential and not disclose to any third party Confidential Information of the other party. Confidential Information includes nonpublic technical, financial, commercial and other information disclosed in connection with the Project. Obligations shall survive termination of this Agreement for a period of five (5) years, except for trade secrets, which shall be protected for so long as they remain trade secrets under applicable law.

Intellectual Property

Unless otherwise agreed in writing, Service Provider grants Client a perpetual, nonexclusive, worldwide license to use project deliverables delivered under this Agreement for the Project. Pre-existing materials and tools of Service Provider remain the property of Service Provider; Service Provider grants a nonexclusive license to the extent necessary for Client to use the Deliverables.

Insurance, Indemnity & Liability

Service Provider shall maintain insurance customary for projects of comparable size and scope, including commercial general liability and professional liability as applicable. Each party shall indemnify and hold harmless the other from claims arising out of its negligence or willful misconduct. Neither party shall be liable for indirect, incidental or consequential damages except to the extent resulting from gross negligence or willful misconduct.

Force Majeure

Neither party shall be liable for delays or failures to perform due to causes beyond its reasonable control, including acts of God, labor disputes, governmental actions, or material shortages. The affected party shall notify the other promptly and use commercially reasonable efforts to resume performance.

Termination

This Agreement may be terminated by either party for material breach following thirty (30) days' written notice and opportunity to cure. Either party may terminate for convenience upon providing sixty (60) days' written notice; in such event, Client shall pay Service Provider for work performed and reasonable demobilization costs.

Dispute Resolution & Governing Law

The parties shall attempt in good faith to resolve disputes through negotiation. If unresolved, disputes shall be submitted to mediation prior to filing any lawsuit. This Agreement shall be governed by the laws of without regard to conflict of law principles.

Notices

Representations & Certifications

Each party represents and warrants that it has full corporate power and authority to enter into this Agreement and perform its obligations hereunder. Service Provider certifies that it will perform services in a professional and workmanlike manner consistent with industry standards.

By signing below, the parties acknowledge that they have read, understood and agree to be bound by the terms of this Agreement. Authorized signatories confirm authority to bind their respective parties.

Client — Printed Name:

By (Signature):

Date:

Title/Capacity:

Service Provider — Printed Name:

By (Signature):

Date:

Title/Capacity:

Enter text✕

What the Project Management Design & Builds Agreement Is

A Project Management Design & Builds Agreement is a single contract that combines project management services with integrated design and construction delivery. It defines the parties, scope of design and build work, project schedule, milestones, payment and change order procedures, risk allocation, warranties, insurance and dispute resolution. The agreement governs responsibilities from concept through closeout, including permitting, subcontractor oversight and deliverables acceptance. It is commonly used where an owner wants a single accountable party to manage design, procurement and construction under one coordinated contract.

Why this Agreement Matters for Project Clarity and Risk Control

Using a combined Project Management Design & Builds Agreement centralizes responsibility, reduces interface disputes between designers and builders, and clarifies payment and change order processes to keep the project on schedule and within budget.

Why this Agreement Matters for Project Clarity and Risk Control

Who Typically Prepares or Signs This Agreement

These agreements are used by organizations that require a single integrated delivery team for design and construction.

  • Owners and developers managing commercial, residential, or institutional projects needing single-source responsibility.
  • Design-build contractors and construction managers who provide design coordination and construction execution together.
  • Project management firms or program managers acting on behalf of an owner to oversee complex deliveries.

Parties should ensure signatory authority and internal approvals are in place before execution.

Core Elements to Include in a Professional Agreement

A complete agreement sets clear technical, commercial and administrative rules so all parties understand deliverables, timing, obligations and remedies.

Scope of Work

Detailed description of design and construction tasks, drawings, specifications, excluded work, and accepted deliverables to avoid scope disputes.

Schedule & Milestones

Specific milestone dates, schedule of values, critical path responsibilities, and liquidated damages or incentives tied to timely completion.

Payment Terms

Progress payment schedule, retainage, invoicing requirements, conditions for final payment, and remedies for late or disputed payments.

Change Order Process

Formal procedures for submitting, pricing, approving and documenting scope changes including time and cost adjustments.

Risk Allocation

Insurance, indemnity, warranties, performance bonds, and limits of liability that determine who bears construction risks.

Acceptance & Closeout

Punchlist, substantial completion criteria, warranty period, turnover deliverables, and final lien waiver and release requirements.

Essential Data to Record in the Agreement

Parties: Legal entity names
Project ID: Owner project number
Project Address: Street, city, state, ZIP
Effective Date: MM/DD/YYYY
Contract Sum: Total price
Completion Date: Target date

Step-by-Step: Completing and Executing the Agreement

Follow these sequential steps to prepare, review, sign and distribute the agreement to reduce execution errors and delays.

  • 01
    Draft: Assemble scope, exhibits, insurance and payment terms into a single draft document.
  • 02
    Internal Review: Obtain legal, procurement and finance approvals before sharing with counterparty.
  • 03
    Counterparty Review: Exchange redlines, confirm commercial terms and resolve outstanding design responsibilities.
  • 04
    Execution: Collect signatures, notarizations if required, then distribute final signed copies to all parties.

Configuring an Online Signing Workflow

Set up fields and routing to match the agreement’s signatory order and approval checkpoints before sending for signature.

Field Configuration
Signature Order Set role-based sequential routing or parallel signing as required
Required Fields Enable mandatory initials, dates, and typed names where legally necessary
Authentication Select email, SMS code, or advanced signer authentication per risk
Attachments Include exhibits and warranty bonds as required documents

Typical eSubmission and Distribution Flow

Use a predictable online flow so signers receive the right documents in order and audit records are captured automatically.

  • Upload: Add the agreement and exhibits to the signing platform.
  • Add Fields: Place signature, initials, date and text fields in the document.
  • Invite Signers: Enter signer emails and confirm signing order and authentication.
  • Archive: Send completed copy and audit trail to designated recipients and storage.

Technical and Integration Considerations for eSigning

Confirm that the chosen eSignature platform supports required authentication, audit trails, and integrations with your document and project systems.

  • Authentication: Email, SMS or advanced options
  • Audit Trail: IP, timestamp, action log
  • Integrations: CRM, ERP and cloud storage

Key Dates and Typical Deadlines to Track

Document the schedule milestones and payment deadlines in both the agreement and your project control system to avoid disputes.

Effective Date:

Date when obligations begin; controls schedule counting

Notice to Proceed:

Owner issues NTP to start construction or procurement

Design Milestone:

Completion of schematic and final design submissions

Construction Start:

Mobilization and field start date

Substantial Completion:

Date for owner use and warranty start

Project Milestones from Contracting to Closeout

A sequential view of milestones helps teams coordinate approvals, procurement and inspections across design and construction phases.

01

Contract Award

Finalize and sign the agreement; issue notice to proceed next.

02

Design Phase

Deliver conceptual, schematic and construction documents per approved schedule.

03

Construction Phase

Begin site work, coordinate inspections and manage change orders.

04

Project Closeout

Complete punchlist, transfer warranties and issue final payment.

Common Preparation and Execution Mistakes

  • Vague scope descriptions that omit critical design deliverables lead to change order disputes and schedule delays.
  • Failing to require specific milestones or payment triggers allows misunderstandings about completion and retainage release.
  • Using unsigned or initialed drafts for construction mobilization can create ambiguity about binding obligations and liability.
  • Omitting insurance, bond or indemnity limits increases risk exposure for owners and lenders during construction.

Penalties and Legal Risks of an Incorrect or Incomplete Agreement

Delay Damages: Liquidated damages apply
Payment Default: Stop-work or lien exposure
Warranty Gaps: Costs for remedial work
Lien Risk: Contractor/subcontractor liens
Regulatory Noncompliance: Permitting fines
Termination Costs: Unrecoverable mobilization expense

eSignature Vendor Comparison for Design & Build Agreement Workflows

Compare basic plan pricing and core capabilities that affect signing, bulk distribution and compliance when selecting an eSignature provider.

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 plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes (Business Premium) Yes Yes Yes Limited
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Frequently Asked Questions and Troubleshooting

Answers to common legal, signing and practical questions about executing Project Management Design & Builds Agreements to reduce confusion at signing.


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