Design Builder and Subcontractor Agreement (Cost of Work Plus Fee with GMP) - 460 (2014)

The ConsensusDocs 460 Subcontract Agreement is a standard contract used in design-build projects, where the Subcontractor is responsible for both design and construction portions of the work. Unlike traditional subcontract agreements, this contract is tailored for design-build arrangements, where design and construction responsibilities are integrated under one contract. This agreement is particularly relevant when the Subcontractor is tasked with providing substantial design services along with construction duties, making it a key document for modern construction projects.

Ideal for Subcontractors with Design Responsibilities

The ConsensusDocs 460 is appropriate when the Subcontractor’s payment structure is based on the cost of work plus a fee, with a Guaranteed Maximum Price (GMP). This structure helps manage project costs effectively while providing financial transparency for both the Design-Builder and Subcontractor. The payment terms, combined with the GMP, ensure that both parties are aligned in terms of expectations and financial accountability.

Key Features of the ConsensusDocs 460 Agreement:

• Design and Construction Scope: Clearly defines the design and construction tasks assigned to the Subcontractor, ensuring no confusion regarding responsibilities.
• Guaranteed Maximum Price (GMP): Payment terms based on a cost-plus-fee structure with a set GMP, which helps to control project costs and ensure budget compliance.
• Critical Contract Provisions: Includes general terms and conditions that govern the relationship between the Design-Builder and Subcontractor, such as:
• Scope of work
• Subcontract price and payment structure
• Schedule and timeline expectations
• Indemnification, insurance, and bond requirements
• Dispute resolution mechanisms
• Design Professional Integration: Assumes the Design-Builder will engage a Design Professional (such as an architect or engineer) to handle the design services. This relationship is covered separately by the ConsensusDocs 420 agreement.
• GMP Setting: To formalize the Guaranteed Maximum Price (GMP), the ConsensusDocs 460.1 document should be used to set the specific GMP details.

The ConsensusDocs 460 agreement provides a comprehensive framework for handling both design and construction tasks within a design-build project. It ensures that all responsibilities and expectations are clearly outlined, helping to prevent disputes and streamline project execution. This makes it an essential tool for Design-Builders and Subcontractors seeking to efficiently manage design-build projects with integrated design and construction services.