Design Builder and Subcontractor Agreement (Cost of Work Plus Fee with GMP) - 460

This is a standard form agreement between a Design-Builder and design-build Subcontractor, where the Subcontractor is going to provide a portion of the Design-Builder’s work which does includes a substantial portion of the design phase services and the portion of the subcontract work may not be clearly defined. This agreement is appropriate when the design-build Subcontractor’s payment is to be cost of work, plus a fee, with a guaranteed maximum price (GMP). This Subcontract agreement takes into consideration the design-build project delivery method and therefore is different than the ConsensusDocs 750 Subcontract Agreement. This agreement conveniently integrates the general terms and conditions and the construction agreement terms into one document. The general conditions include the responsibilities allocated to each party and address critical construction law contract issues. The contract issues include: the parties relationship and responsibilities to each other, definitions of key terms, scope of work, schedule, subcontract price, contract documents, changes, payment, indemnification (defend and hold harmless against all losses), insurance and bond, termination, dispute resolution and mitigation, and more. The included construction law contract issues are fair for the Design-Builder as well as Subcontractors.

This document presumes that the Design-Builder will be hiring a Design Professional (architect or engineer) to provide apportion of the design services (Basic and possibly Additional Services). The ConsensusDocs 420 agreement covers that relationship. Parties should use the ConsensusDocs 460.1 to set the GMP.