Which delivery method has the most risk for the contractor?

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In the context of construction delivery methods, design-build is often associated with higher risk for contractors compared to the other methods. This is primarily because under the design-build model, the contractor is responsible for both the design and construction of the project, which means they assume a greater degree of liability for the final outcome.

The contractor must ensure that the design meets the client's requirements while also being constructible and within budget. This dual responsibility can lead to significant challenges if there are design flaws, changes in project scope, or unforeseen construction difficulties. Additionally, the contractor bears the risk of coordinating between the design and construction teams, which can complicate communication and project management.

In contrast, methods such as design-bid-build separate the design and construction phases, thereby allowing for clearer delineation of responsibilities. Similarly, the construction manager at risk method allows for some level of partnership with the owner, which can distribute risk in more equitable ways. Integrated project delivery incorporates collaboration among all stakeholders, which can also mitigate risk.

Thus, the design-build method, with its comprehensive responsibility placed solely on the contractor, inherently carries the most risk for them compared to the alternatives.

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