Design-Build Payment Bond - 473

ConsensusDocs 473 is a standard payment bond for design-build projects that ensures payments to subcontractors and suppliers, while excluding surety liability for design services under the Design-Builder’s scope.

Document Description: ConsensusDocs 473 is a standard payment bond specifically developed for design-build project delivery, ensuring that subcontractors, suppliers, and vendors involved in the construction phase of the project are properly compensated. This bond is executed between a surety and the Design-Builder, and it focuses exclusively on the payment obligations related to construction labor, materials, and equipment.

Unlike the ConsensusDocs 472, which extends surety coverage to include potential liabilities for design services, the 473-payment bond is limited to addressing construction-related payment risks. It does not cover non-payment for services rendered by Design Professionals, such as architects or engineers, who may also be involved in the design-build project. This distinction makes it ideal for projects where the Design-Builder is not directly managing or contracting the design services or where design liabilities are otherwise accounted for.

This bond form was developed by ConsensusDocs—a coalition of leading construction industry associations—to reflect the integrated yet distinct roles within a design-build project. It offers clear terms and conditions that align with industry best practices and helps mitigate payment disputes.

Key Features of ConsensusDocs 473:

• Focused Construction Payment Protection: Ensures payment for construction work, subcontractors, and material suppliers only.
• Excludes Design Professional Services: Specifically excludes liabilities related to design services, reducing surety exposure.
• Design-Build Specific: Tailored for the unique needs of the design-build delivery method.
• Collaboratively Drafted: Developed with input from a broad group of stakeholders, ensuring fairness and industry acceptance.

Who Should Use This Bond?

The ConsensusDocs 473 payment bond is best suited for Owners, Design-Builders, and Sureties involved in design-build projects where construction is the primary focus of the Design-Builder’s responsibilities. It is especially useful when design services are performed under separate agreements or managed independently, eliminating unnecessary risk exposure for the surety.

By using ConsensusDocs 473, project stakeholders gain peace of mind with a fair and enforceable tool that supports prompt and reliable payments throughout the construction phase of a design-build project.