Which delivery method has the most risk for the contractor?

Design-build is considered to have the most risk for the contractor due to the nature of this delivery method, which consolidates both design and construction responsibilities into a single contract. In contrast to other models, where responsibilities may be more clearly delineated, the design-build method requires the contractor to take on the full scope of project responsibility.

Since the contractor is responsible for both the design and the construction, any design flaws or miscalculations directly impact the contractor’s financial position. The contractor’s risk increases significantly because they must manage their own design team and ensure that the design meets the client's needs while also adhering to budget and schedule constraints. Any issues arising from design errors can lead to additional costs and delays that the contractor must absorb.

In other delivery methods such as design-bid-build, the roles are more divided. The owner typically assumes more of the risk regarding design issues, while the contractor focuses on executing the construction based on the completed design. Similarly, in CM at risk and integrated project delivery methods, there are often collaborative frameworks and shared risks that can mitigate the burdens borne by the contractor alone. Thus, in a design-build scenario, the contractor has a heightened exposure to risk, making it the delivery method that carries the most significant risk for them.