Owner and Design Builder Agreement (Cost of Work Plus Fee with GMP)

(Updated 2017) Purchase Options

Construction Contracts: Deliver Better Project Outcomes

In today’s construction market, choosing the proper delivery method is fundamental for success on any project. A variety of delivery choices are available to owners and widely used across the design and construction industry.

But before deciding on a project delivery method, owners must properly evaluate their budget, schedule, design process, risk assessment, and level of expertise. Then they can tailor a delivery method that best meets the unique needs and challenges of each project.

Owners interested in a single point of delivery, certainty that they can meet their budget, and no surprises at the end of the project often choose the design-build method.

The design-build delivery method:

  • Allow owners to start construction sooner, even before the design plans are complete, and set the GMP as the design develops.
  • Provides design-builders’ expertise when choosing materials and meeting overall requirements of the project, which optimizes speed and cost.
  • Offers implied fitness of design plans because the design team and build team are under the same contract.
  • Limits finger pointing between designer and builder and solves the liability gap that the owner faces.
  • Doesn’t require 100% finished design before selecting the build team.
  • Reduces paper shuffling, removes approval process, and streamlines the submittals while still safeguarding the owner.

ConsensusDoc 410: The Right Choice for Design-Build Projects

ConsensusDocs’ 410 Owner and Builder Agreement (Cost of Work Plus Fee with GMP) is a popular design-build agreement between an owner of a construction project and the design-builder that integrates one contract for the design and build services.

This construction document is a cost of work plus a fee agreement with a Guaranteed Maximum Price (GMP) and assumes the Design-Builder will hire a Design Professional (architect or engineer) to provide design services. This agreement requires the ConsensusDocs 400 Preliminary Agreement Between Owner and Design-Builder in order to develop the Owner’s program and some schematic design documents. The parties set the GMP through an amendment using the ConsensusDocs 410.1 – Guaranteed Maximum Price (GMP) and Completion Dates document at a mutually agreed-upon development in the project.

The ConsensusDocs 410 Owner and Design Builder Agreement also addresses critical construction law contract issues, including but not limited to:

  • Parties relationship and responsibilities to each other
  • Scope of work and execution obligations
  • Design delegation
  • Worksite conditions
  • Contract price
  • Permits and taxes
  • Schedule changes
  • Payment schedule
  • Indemnification
  • Insurance and bond
  • Termination
  • Claims and notice
  • Waiver of consequential damages
  • Dispute resolution and mitigation
  • Construction defects

Every construction project is unique, and for each project, there is an ideal project delivery method that offers the best opportunity for success. For owners who want a simplified construction process and to realize cost and time savings by streamlining responsibilities, the 410 Owner and Builder Agreement is the right choice. See sample and purchase options below.

Purchase Options


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