Construction Industry Risk Shifting in the Design-Build and Public Private Partnership Arena
Broward County Bar Association Construction Section
Ben Nolan and Paul Bough presented "Construction Industry Risk Shifting in the Design-Build and Public Private Partnership Arena." The rapid growth of design-build (D-B) and public private partnerships (P3) as construction delivery models has resulted in risk shifting away from the owner and onto the design-builder or P3 concessionaire. The contractors that typically lead D-B teams have, in turn, shifted risk to their design firm partners and subcontractors. This risk-shifting has resulted in an increase in claims and litigation between the parties involved in D-B and P3 projects. This course focused on the financial aspects of D-B and P3 that cause the risk, contractual clauses being used to shift the risks, equitable and non-equitable contingency usage clauses, and potential solutions to non-equitable risk shifting.