Public entities/agencies will want to get funding to work as quick as possible. They will want to avoid the time constraints and design-liability associated with design-bid-build. As a result, there will be a move to design-build (sometimes referred to as Engineer/Procure/Construct (EPC) projects) in order for these projects to be started as quickly as possible, and to hopefully mitigate exposure for claims. Mike McKenna outlines the benefits and challenges of different project models in this National Academy of Continuing Legal Education program on the new infrastructure bill.
The problem is that the change in legal dynamics associated with design-build are not really understood. Particularly, owners do not understand this change and how it greatly impacts their ability to shape the projects using design-build as a procurement method or the impact on their relationship with the engineer.
Engineers do not understand the significant impact on their liability exposure. Subcontractors do not understand the difficulties of bidding partially designed projects and the impact on pricing, particularly material escalation risks. Sureties do not understand how the basics of their business are changed with the addition of the engineer on the contractor’s team.