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A201®–2017, General Conditions of the Contract for Construction
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October 20, 2022
Delegated design is a collaborative approach where a contractor assumes responsibility for designing a specific portion of a construction project. While it offers significant advantages, contractors new to this type of service should understand the associated risks. Below are key features of delegated design services and practical tips to help contractors navigate potential challenges.
Understanding Delegated Design: Key Responsibilities and Risks
Delegated design involves a division of responsibility between the design professional (typically an architect or engineer) and the contractor. The contractor takes on design responsibility for a specific element of the project, such as curtain walls or fire protection systems. However, the design professional retains overall responsibility for the project’s performance specifications.
The Role of Performance Specifications
In delegated design, the contractor’s work is typically guided by performance criteria set by the design professional’s specifications. These specifications establish the expected performance of the delegated element, such as strength, durability, and safety standards. It’s important to note that while the contractor handles the design of these elements, they must meet the specified performance criteria, adhere to applicable building codes, and follow the professional standard of care.
Key Considerations for Contractors in Delegated Design
If you’re entering into a construction contract involving delegated design, ensure the agreement covers the following elements to mitigate risk:
- Clear Scope of Work: Define the contractor’s responsibilities, ensuring that delegated design tasks are clearly outlined.
- Delegated Design Responsibilities: Specify who is accountable for the adequacy of the performance criteria and design tasks for each party involved.
- Information Exchange: Outline how design information will be exchanged and reviewed. Address the use of digital models and any necessary approvals.
- Contractor Compensation: Clarify the contractor’s compensation for the delegated design services.
- Professional Liability Insurance: Include requirements for the contractor to procure professional liability insurance, as design liability can extend beyond traditional construction responsibilities.
Navigating the Additional Risk of Design Liability
One of the primary risks of delegated design is the contractor’s exposure to design liability. When the contractor takes on design responsibility, they may be liable for the adequacy of their design. It’s essential that contractors consider obtaining professional liability insurance to protect against potential claims arising from design defects.
Recognizing the Limitations of Delegated Design
While delegated design provides flexibility, it’s important to understand its limitations. In some cases, professional design responsibility must remain with the design professional of record. Contractors should be aware that they cannot delegate all aspects of a project’s design, particularly those that fall outside the scope of the contract.
How Delegated Design Affects the Spearin Doctrine
The Spearin Doctrine, which holds owners responsible for the adequacy of design documents provided to contractors, can be impacted when a contractor performs delegated design. By assuming design responsibility, the contractor may no longer be able to rely on the owner’s implied warranty of adequacy for the plans and specifications.
AIA A201-2017: The Standard for Delegated Design
The AIA’s General Conditions of the Contract for Construction (A201-2017) serves as the industry standard for delegated design in construction contracts. Section 3.12.10.1 of A201-2017 outlines the process for delegating design responsibilities, including performance specifications, design criteria, and the contractor’s role in completing the design through a licensed professional.
Under this framework, the architect specifies the performance criteria for systems, materials, or equipment to be designed by the contractor. The contractor then provides design services through an appropriately licensed design professional who signs and seals the design documents. Both the architect and contractor can rely on the information exchanged in this process, which is essential for maintaining the project’s integrity.
Best Practices for Contractors in Delegated Design Projects
To ensure successful outcomes and minimize risk, contractors should follow best practices when engaging in delegated design:
- Establish Clear Contracts: Outline all design responsibilities and expectations in the contract.
- Maintain Open Communication: Regularly communicate with the design team and other stakeholders to address any design challenges.
- Stay Informed on Codes and Standards: Keep up with the latest building codes, standards, and regulations to ensure compliance.
- Procure Adequate Insurance: Consider professional liability insurance to protect against potential design-related claims.
- Use Technology Effectively: Leverage digital models and collaboration tools to streamline information exchange and reduce errors.
By following these strategies, contractors can better navigate the complexities of delegated design while protecting their interests and ensuring the successful completion of projects.
AIA Contract Documents has provided this article for general informational purposes only. The information provided is not legal opinion or legal advice and does not create an attorney-client relationship of any kind. This article is also not intended to provide guidance as to how project parties should interpret their specific contracts or resolve contract disputes, as those decisions will need to be made in consultation with legal counsel, insurance counsel, and other professionals, and based upon a multitude of factors.