Design-Build Performance Bond - 470

ConsensusDocs 470 is a groundbreaking standard performance bond uniquely tailored for design-build project delivery. Unlike traditional performance bonds, which typically focus solely on construction-related responsibilities, ConsensusDocs 470 explicitly addresses issues that arise in the design-build context, where design and construction are integrated into a single contract.

This document establishes a formal agreement between the surety and the Design-Builder, holding the surety responsible not only for the execution of the construction work but also for the design obligations of the Design-Builder. As the only standard bond of its kind in the construction industry, it plays a critical role in risk management for design-build projects.

Key Features of the ConsensusDocs 470 Performance Bond:

• Design Responsibility: The surety is explicitly liable for the design portion of the project in addition to construction. This is a unique and essential feature not found in most other performance bond forms.
• Surety Obligations: The bond outlines the responsibilities of the surety if the Design-Builder defaults, including the requirement to complete the design and construction or compensate the project owner accordingly.
• Dispute Resolution: Provisions are included to address how disputes between the surety and the owner will be handled, providing clarity and minimizing project disruptions.
• Protection for Owners: Owners of design-build projects benefit from enhanced protection, knowing the surety has comprehensive obligations that reflect the integrated nature of the design-build delivery method.
• Fair and Balanced Language: Drafted with input from a coalition of industry stakeholders, this document balances the interests of project owners, Design-Builders, and sureties, ensuring clarity, fairness, and enforceability.

Why Use ConsensusDocs 470?

Design-build projects continue to grow in popularity due to their efficiency and single-source accountability. However, they introduce complexities that standard performance bonds do not address—especially related to the design aspect. ConsensusDocs 470 fills this gap, offering a robust solution that ensures all parties are protected under a clear and comprehensive bonding framework.

This performance bond is ideal for any owner seeking additional financial security in a design-build arrangement and ensures continuity and accountability throughout all phases of the project, from concept through completion.