Who’s on the hook for design defects in design-build projects? It may not always be who you think. In this episode, Dirk Haire, co-chair of Fox Rothschild’s Construction Law Practice Group, and David Hecker, group general counsel overseeing all claims, litigation, and investigations for Kiewit Corporation, share their wealth of knowledge on design-build risk. Find out when and why contractors do not always bear the risk of design errors or omissions on a design-build project. This episode explains design-builders’ liability standard and discusses certain types of overreach by owners that merit pushback from design-builders.

This podcast episode will help you:

1. Understand the differences between design and performance specifications and how they may govern design liability on a design-build project.

2. Determine when the Spearin Doctrine applies to design-build contracts.

3. Identify cases where a design-builder has received equitable adjustment for defect designs, as well as examples of cases where the design-builder incurred liability for design.

4. Learn how contracting officers’ actions and federal contracting rules and regulations can dramatically raise a design-builder’s risk exposure.

Guests:

Dirk Haire, Fox Rothschild LLP - https://www.foxrothschild.com/

David Hecker, Kiewit Corporation - https://www.kiewit.com/

Brian Perlberg (co-host), AGC of America - https://www.agc.org/contract

Resources:

AGC 2022 Convention Slides – https://www.agc.org/sites/default/files/Files/AGC%20Design%20Build%20Presentation%20March%202022(132260853.1)-C%20(1).pdf

AGC Article -- Unfair Risk Allocation on Design-Build Project: https://www.agc.org/news/2022/05/23/unfair-risk-allocation-design-build-projects

AGC Article -- When is the Price Right? Setting the GMP for Design-Build: https://www.agc.org/news/2022/06/27/when-price-right-setting-gmp-design-build

AGC design-build page -- https://www.agc.org/design-build