-
What: the
Owner needs to have the proposed Project designed and constructed by
licensed professionals. The Design/Build Construction Contracting
approach provides for one party to manage the design and construction of the
project - the "Design/Builder".
-
When: the
Design/Build Construction Contract is executed as soon as the market
feasibility study, pro forma financial presentation and business plan of
operations are complete and accepted by the Owner.
-
Why: commercial
construction is never undertaken on a "hand shake basis". To
protect the interests of the syndicate investors, the Owner and the
Design/Builder a formal construction contract is used. Because the
Owner is not the key manager of the construction program who is capable of
most efficiently managing construction risk to the benefit of the Owner (or
the syndicate) the object of the business would be to have the contractor
manage it.
-
Where: at
the pre-construction phase because the Architectural Services Agreement (see
Exhibit A-1) and the Interior
Design Services Amendment to Architectural Services Agreement (see Exhibit
A-2) cannot be executed until the overall Design/Build Services
Agreement (this exhibit) is executed and legally enforceable.
-
How: due to
the legal complexities arising out of the construction contracting component
of the Owner's Program, the DBIA530 and DBIA535 documents (or equivalent)
are used.
-
What's important: the
contract must be complete with no blank spaces and executed by the
Design/Builder and the Owner.
-
This exhibit is
not required for syndications of existing properties that do not contemplate
any new construction.
