A design-build contract template is your starting point for combining the design and construction stages into one single, cohesive agreement. Think of it as the ultimate project playbook. This essential document lays out the entire scope of work, who's responsible for what, and the legal nitty-gritty for both the owner and the design-build team.

By creating a single point of responsibility, you streamline the entire process from start to finish. This guide hands you a fillable template, one we've refined over our 21+ years of proven results, building trust and quality structures right here in our local communities.

Why a Solid Design-Build Contract is Your Project's Bedrock

Let’s be honest: a well-put-together design-build contract is more than just a pile of legal papers. It’s the very foundation of a successful, trusting partnership. After managing projects for over two decades in communities from Fayetteville to Lumberton, our local leadership team has learned a thing or two. The most important lesson? A crystal-clear agreement from day one is the best defense against expensive, time-sucking headaches later on.

The design-build model itself is taking the industry by storm for a reason. Projections show that design-build contracts are on track to make up nearly 47% of U.S. construction spending in major sectors by 2025. That’s not just a trend; it's a testament to how efficient this approach really is. You can see more on this growth over at ENR.com.

The Real-World Benefits of a Strong Agreement

A solid contract gives you something every major construction project needs: clarity and security. It’s the framework that gets everyone pulling in the same direction. At Southeastern General Contracting (SEGC), we see this every day on our job sites.

Here’s what that looks like in practice:

• Single Point of Accountability: No more finger-pointing between the architect and the builder. With one team handling both design and construction, the buck stops in one place. This is a core principle we stand by.
• Smarter Risk Management: A good contract clearly defines who handles what risks, protecting everyone from surprises and outlining a clear path for managing change orders.
• Fewer Communication Breakdowns: The agreement sets up the official channels for talking, making decisions, and getting approvals, which is key to keeping the project humming along.

Getting a handle on what design build construction is really drives home why this type of contract works so well. At the end of the day, a great contract isn't just about covering your bases legally; it’s about building legacies, not just structures.

To make sure your project runs like a well-oiled machine, it's not enough to just sign the contract. You need to manage it effectively, which is where mastering your workflow with project management templates comes into play.

Get Your Hands on Our Free Design-Build Contract Template

Alright, this is what you came for. We're handing over our design-build contract template, and no, this isn't some flimsy, generic document you'd find floating around the internet. Think of it as a battle-tested starting point, forged from over 21+ years of getting projects done right here in North Carolina, from Fayetteville all the way to Lumberton.

We've made this fillable document easy to use but packed it with the nitty-gritty details. You'll find clear placeholders and our own expert notes peppered throughout, walking you through every crucial section so nothing gets missed. It’s built with the same precision and commitment to quality that earned us our reputation as a Native American-owned, 8(a), and HUBZone certified firm.

So, What Sets This Template Apart?

Look, our goal is to empower you with a real advantage. This template isn't meant to be a rigid document; it’s a solid framework that you can mold to fit the unique needs of your specific project. We’ve flagged all the key areas that need your attention to help you sidestep those common, costly mistakes.

• Project-Specific Deliverables: We'll show you how to nail down the scope with crystal clarity. No more gray areas or "I thought you meant…" conversations later.
• Clear Timelines and Milestones: The layout pushes you to set a realistic schedule from day one—a habit that's been central to our own success in the Fayetteville community.
• Annotated Clauses: You'll get plain-English notes explaining the "why" behind the legalese, so you can walk into negotiations feeling confident.

Here at SEGC, we’ve always said a contract is more than just paper; it’s the start of a partnership. It’s the handshake that turns a great idea into a lasting structure. This template is us sharing the playbook that's guided us for more than two decades, building legacies for our clients.

By sharing this, we want to give you a serious head start in crafting an agreement that's fair, protective, and clear for everyone involved. It’s the first step in building on a foundation of trust—and that’s the same foundation we pour into every single project. Go ahead, grab your free template below and start your next build with total confidence.

Getting to Grips with the Core Contract Components

Think of your design-build contract as the script for your project's success. Before you even think about signing on the dotted line, you have to know the main characters and the plot. These first few sections are the bedrock of the whole deal, laying out who's who, what's being built, and what everyone's agreeing to.

Nailing these core parts right from the get-go isn't just good practice; it's essential. After 21+ years of handling projects across Fayetteville and Lumberton, we've learned that starting with crystal-clear terms is the only way to build a partnership on solid ground. This is how client trust is built from day one.

Identifying the Parties Involved

Okay, this sounds like a no-brainer, but you'd be surprised how often it gets botched. This section needs to lock down the exact legal names and details of everyone signing the contract. We're talking about the Owner (that’s you) and the Design-Builder (that’s the firm you're hiring).

If you're a business, use your full, registered name—"Smith Properties, LLC," not just "Smith Properties." Trust me, it matters. As a Native American-owned, 8(a) and HUBZone certified firm often dealing with government projects, we live by this rule. Precision is everything.

A simple typo or an incorrect name can cause massive headaches down the road. There was even a case in Pennsylvania where a court tossed out a whole design-build contract because the architect wasn't explicitly named, even though everyone knew who they were. That little detail shows why strict compliance with naming conventions is essential.

The Project Description

This is your project’s elevator pitch, its mission statement. It needs to go way beyond just listing an address. This is where you paint a clear, high-level picture of the vision.

• A vague description looks like this: "Construction of a new commercial building in Fayetteville, NC." Yawn.
• A specific, useful description is more like this: "Design and construction of a two-story, 10,000-square-foot medical office building located at 123 Main Street, Fayetteville, NC, including associated site work, parking facilities, and landscaping."

See the difference? The second example draws a clear line in the sand. We always push our clients to get granular here, using our local knowledge of the Fayetteville and Lumberton areas to sniff out potential misunderstandings before they can cause trouble.

Think of a solid Project Description as your project's North Star. It's the one thing everyone can look back to, making sure the design and construction crews are always pulling in the same direction and honoring the original vision.

Contract Documents and Preliminary Design

Last but not least, this section is essentially the "attachments" list for your agreement. It officially names all the other documents that are part of the contract, like drawings, spec sheets, any addenda, and the initial design concepts. By listing them here, you're making them legally binding.

The Preliminary Design is a huge piece of the puzzle in the design-build world. It's the concept that the price and scope are built on. Your contract template has to point directly to this document to avoid any "I thought we agreed to…" moments later. It's the visual handshake that backs up all the legal jargon.

Defining Project Scope and Responsibilities

Getting the project scope and responsibilities nailed down is hands-down the most important part of your design-build contract. It’s your project’s DNA—the one document that keeps scope creep, budget blowouts, and crossed wires from ruining a great build. With over 21+ years in the trenches on projects in communities like Fayetteville and Lumberton, we at SEGC can tell you from experience: a crystal-clear scope is what builds trust and gets everyone pulling in the same direction.

This section isn't just a fluffy project description. It’s where you roll up your sleeves and itemize every single task, deliverable, and obligation for both the Design-Builder and the Owner. Think of it as the project's official rulebook. It ensures no one can say "I thought you were handling that" down the line.

The Design-Builder’s Obligations

Remember, the Design-Builder is playing a dual role—they’re both the architect and the contractor. Your contract has to spell out their duties for both phases, leaving zero room for interpretation. This kind of transparency is fundamental to how we operate as a Native American-owned firm, where we believe straight talk is the best foundation for building a legacy.

Your template should break down their responsibilities into specific buckets:

• Design Phase Duties: This covers everything from creating architectural drawings and engineering plans to getting all the specifications ready for permits and construction. Critically, it must state that all designs will comply with local codes.
• Construction Phase Duties: This is the hands-on part. It includes sourcing all labor, materials, and equipment, managing every subcontractor, sticking to the schedule, and, of course, keeping the job site safe.
• Administrative Duties: The paperwork and communication. This means pulling all necessary permits, delivering regular progress reports, and managing the mountain of project documentation.

This detailed approach is part of a bigger shift in the industry. The design-build model is growing fast, and it's being powered by an entire ecosystem of construction and design software—a market that hit $10.96 billion in 2024. If you want to get into the weeds on that, you can check out the full market report on construction and design software.

The Owner’s Responsibilities

Just as important are the owner's responsibilities. A great project is a partnership, and the contract has to be clear about what the owner needs to bring to the table to keep things moving.

Typical owner obligations include:

• Timely Information: Handing over all site-related information, like surveys, soil tests, and environmental reports, right at the start.
• Decision-Making: Being available to make quick decisions on design choices, materials, and any change orders. Nothing kills a timeline faster than indecision.
• Financial Duties: Having project financing locked down and making payments like clockwork, based on the agreed-upon schedule.
• Access: Providing the Design-Builder and their crews with unimpeded access to the project site whenever they need it.

To keep these roles from blurring, it helps to have a quick cheat sheet. This table breaks down who typically handles what, which is a fantastic way to prevent misunderstandings before they start.

Quick Reference Design-Builder vs Owner Responsibilities

By clearly defining every role right in the contract, you’re not just writing a legal document—you’re setting the stage for a smooth, collaborative, and successful project.

Check out this infographic, which really drives home why the design-build model works so well when compared to the old-school design-bid-build approach.

The numbers don't lie. When everyone knows their job from day one, projects get done faster, stay on budget, and leave clients much happier. That’s the power of a well-defined scope.

Getting Paid and Getting it Done on Time

Let's talk about the engine room of any design-build contract: the money and the schedule. These clauses are where the rubber meets the road, dictating how cash flows and setting the rhythm for the entire project. After more than 21+ years running builds in places like Fayetteville and Lumberton, our local leadership team can tell you this: a crystal-clear, fair financial plan is what keeps a project moving and everyone trusting each other.

This is the part of the contract that turns abstract figures into a concrete, predictable roadmap. It’s where you’ll nail down the Contract Sum, hash out the Payment Procedures, build a Schedule of Values, and lock in the Project Schedule. If you get these details right up front, you'll dodge the cash-flow nightmares and timeline arguments that can sink even the most promising projects.

How Are You Getting Paid? Choosing a Compensation Structure

Before you can slap a price tag on the job, you have to decide how you're going to bill for it. In the design-build world, it usually comes down to two main flavors: Lump Sum or Cost-Plus. Each one has its own vibe and is suited for different kinds of projects.

• Lump Sum (or Fixed Price): This one's simple. You and the client agree on one single, fixed price for everything outlined in the scope. It gives the owner total budget certainty, which makes it a go-to for projects that are already clearly defined before you break ground.
• Cost-Plus: Here, you bill the client for the actual costs of labor and materials, then add an agreed-upon fee to cover your overhead and profit. This approach is way more flexible and works great when you know the project scope is likely to change or grow as you go.

We've used both models to great effect here at SEGC. A recent commercial project in Fayetteville had a rock-solid budget and a nearly complete preliminary design, so a Lump Sum contract gave the client the peace of mind they needed. On the flip side, we built a complex custom home in Lumberton where the owner wanted to finalize unique features during construction. A Cost-Plus agreement gave us the wiggle room we all needed to make it happen.

Setting Up a Smooth Payment Process

Once you've settled on the total price, the contract needs to spell out exactly how payments will be handled. This isn't just about getting paid; it’s about preventing confusion and keeping the project fueled. The key to this is the Schedule of Values, which is basically an itemized breakdown of the total contract price into different construction phases or tasks.

As you hit milestones, you'll submit a payment application that lines up with the Schedule of Values, showing what work has been completed. Your contract needs to be unambiguous about:

1. Application Deadlines: The specific day of the month applications are due.
2. Review Period: How much time the owner gets to look over and approve the application.
3. Payment Due Date: The deadline for the owner to cut the check after approval.

This steady, predictable cycle is absolutely vital. It ensures you have the cash on hand to pay your subs and suppliers on time, which is what keeps the whole machine running smoothly. One hiccup in this process can create a domino effect that impacts the entire job.

“A well-documented payment process is about more than just money—it’s about respect and partnership. It shows that both parties are committed to a transparent, professional relationship, which is the foundation every great project is built on.” – An SEGC Leadership Insight

Building a Timeline You Can Actually Stick To

Last but not least, a realistic Project Schedule with clearly defined milestones is non-negotiable. This isn’t a wish list; it's a strategic sequence of events. The schedule should pinpoint critical dates for design approvals, permit issuance, major construction phases, and, of course, the final completion date.

This timeline becomes your baseline for measuring progress and dealing with any delays that pop up. Having a solid schedule in place makes it infinitely easier to handle unexpected changes. For example, it provides the framework you need for effective construction change order management without letting a small detour throw the entire project off the rails.

Diving Into Risk Management and the Legal Nitty-Gritty

Let's be real: no project is a risk-free paradise. But a rock-solid design-build contract is your best shield against the chaos. This is where you get ahead of the "what-if" scenarios before they morph into budget-destroying nightmares. After spending over 21+ years building in communities like Fayetteville and Lumberton, we at SEGC have seen it all. Trust me, strong legal clauses are what keep a project moving and protect everyone's bacon.

Think of these clauses as the official rules of engagement for when things go sideways. Proactively managing risk isn't just about covering our bases; it's a fundamental part of how we protect our clients and build projects that last.

In the world of design-build, managing risk is everything. For a bird's-eye view of the topic, this comprehensive guide to risk management is a great place to start.

Insurance and Bonds

First things first, let's talk about your safety net. The contract has to spell out, in no uncertain terms, the exact types and minimum amounts of insurance the design-builder must carry. This isn't a friendly suggestion—it's an absolute must-have to protect your investment.

You'll typically see these requirements:

• General Liability Insurance: This covers you if someone gets hurt or property gets damaged.
• Professional Liability (Errors & Omissions): Your defense against design mistakes that could lead to expensive fixes down the road.
• Workers' Compensation: The legally mandatory coverage for any worker injured on your job site.

The contract should also address performance and payment bonds. These are your guarantee that the project gets finished and the subcontractors get paid, even if the design-builder runs into trouble. Our 8(a) and HUBZone certifications mean we're old pros at navigating the tough bonding requirements that come with federal projects.

Indemnification and Changes in the Work

The indemnification clause is basically a "hold harmless" agreement. It's a powerful way to assign risk, making it clear that one party (usually the design-builder) will cover the other's losses if specific problems pop up, like a lawsuit from a third party.

Just as critical is the Changes in the Work section. Projects evolve; it's a fact of life. This clause creates a formal, written process for handling change orders. It ensures that any tweaks to the scope, budget, or timeline are documented and signed off on by everyone before a single hammer is swung.

A well-defined change order process is the ultimate weapon against scope creep. It turns a potential argument into a structured, transparent conversation, preserving the trust that holds a project together.

Dispute Resolution and Termination

Even with the best-laid plans, people can disagree. The Dispute Resolution clause lays out the playbook for resolving conflicts without heading straight to a costly court battle. It usually starts with a lower-key approach like mediation before escalating to arbitration or litigation. It’s all about partnership; we'd much rather solve a problem together than fight about it.

Finally, the Termination clause. This section defines the specific conditions under which either party can legally walk away from the contract. It covers everything from the owner not paying to the builder abandoning the job, providing a clear exit strategy if the relationship just isn't working anymore.

How To Customize Your Contract Template

Think of a design-build contract template as a fantastic starting point, but never the finish line. Real protection, the kind that lets you sleep at night, comes from tailoring that document to fit your project like a glove. Here at SEGC, we’ve been at this for over 21 years, shaping agreements for everything from sprawling commercial hubs in Lumberton to high-stakes federal projects under our 8(a) and HUBZone certifications. This isn't just about filling in blanks; it's about transforming a generic template into a strategic roadmap for your specific build.

Customizing your contract is all about making the words on the page match the reality on the ground. You're tweaking clauses to reflect your project's true size, complexity, and unique challenges. Skipping this part is like trying to navigate a new city with a map of a different town—you'll probably get lost and hit a few unexpected dead ends.

Your Pre-Signature Review Checklist

Before anyone picks up a pen, a meticulous review is absolutely essential. Our own leadership team won't move forward without a pre-contract meeting to get everyone on the same page. This isn't just about spotting typos; it's about forging a true partnership and confirming the contract is a perfect reflection of the shared vision.

Use this actionable checklist to walk through your own review:

• Project Scope Verification: Does the scope of work in the contract perfectly mirror your project brief? Every single deliverable, from the first sketch to the final coat of paint, needs to be listed.
• Roles and Responsibilities: Is it completely obvious who is responsible for what? Think about owner-supplied materials, pulling permits, and managing the subs. No gray areas allowed.
• Financials and Timeline Alignment: Do the payment schedule, total contract sum, and key milestones line up with your budget and deadline? Double-check that the change order process is spelled out clearly.
• Site-Specific Clauses: Have you added any clauses unique to your project's location or type? This could be anything from specific zoning rules in Fayetteville to tricky access requirements on a rural site.
• Legal and Insurance Review: Has your lawyer given the thumbs-up on the indemnification, dispute resolution, and insurance clauses? Make sure your interests are fully covered.

Once you’ve hammered out all the details, this finalized contract becomes your project’s single source of truth. Getting it loaded into solid construction document management systems ensures the entire team is singing from the same hymn sheet from day one.

Before signing, it’s a great idea to run through one final checklist to ensure you’ve covered all your bases. This table will help you confirm that you've thought through the most common areas that need a personal touch.

Contract Customization Checklist

Going through this checklist item by item turns the customization process from a daunting task into a manageable one. It's your last chance to make sure the document truly works for your project.

"We treat the pre-contract meeting as the official groundbreaking for the partnership. It's where we move from 'client and contractor' to a unified team. When everyone leaves that meeting confident that the contract reflects their goals, we've laid the foundation for a successful build." – An SEGC Leadership Insight

Tailoring Clauses For Project Complexity

Let's be honest, not all projects are built the same. A simple commercial fit-out is a world away from a multi-phase federal campus. Your contract needs to reflect that difference.

For a more straightforward job, you can probably get away with simpler reporting requirements. But for a highly complex build? You’ll want to bolt on clauses that demand more frequent progress reports, detailed submittal schedules, and a rigorous multi-stage quality control process. That kind of detail is what keeps things from falling through the cracks, protecting your investment and making sure the final product is something everyone can be proud of.

It All Starts with Trust (and a Rock-Solid Contract)

You know, after more than 21 years in this business, you learn a thing or two. The most important lesson? A project is only as strong as the piece of paper it’s built on. I'm talking about the contract. It's not just legal jargon; it's the blueprint for a promise. A really good design-build agreement gets everyone on the same page, protects all parties, and keeps us all pulling in the same direction.

That’s why we obsess over getting it right. It’s the very first step in building client trust. Our certifications as a Native American-owned, 8(a), and HUBZone firm aren't just badges we hang on the wall. They’re a reflection of our commitment to doing things the right way, with integrity and quality baked into every nail, beam, and decision.

A Promise Proven in Fayetteville

Let me tell you a quick story. We had a commercial project in Fayetteville not too long ago. The client had a fantastic vision, but the budget and timeline were tight—no room for error. Before a single shovel hit the dirt, we spent a ton of time hammering out the design-build agreement together. We defined everything, from the exact materials we’d use down to the nitty-gritty of the change order process.

And thank goodness we did. A completely unexpected supply chain snag popped up, threatening to derail the whole schedule. Because we had that clear contract, we had a playbook. We were able to pivot, get the client's approval on a material substitution, and transparently adjust the timeline without any drama. The result? We finished on time and on budget, and what started as a contract became a real partnership.

"A contract is the first step in building a relationship. It's where we prove that our word is our bond. Our mission isn't just to construct buildings but to create lasting value for the communities we serve, like Fayetteville and Lumberton. We're building legacies, not just structures."

Look, choosing a construction partner is a big deal. You're entrusting them with your vision. When you work with us at SEGC, you’re not just hiring another contractor. You're getting a team that’s genuinely dedicated to building on that foundation of trust, from day one.

Ready to see what building a legacy looks like for your project? Let's talk.

Your Burning Questions About Design-Build Contracts, Answered

Even with the best template in hand, you're going to have questions. It’s only natural. After more than 21 years of running projects and proving our results in Fayetteville, Lumberton, and all over, we've pretty much heard them all. So, let’s tackle the big ones head-on.

Our aim here is simple: pull back the curtain and give you straight, actionable answers. As a Native American-owned, 8(a) and HUBZone certified firm, we believe that transparency isn't just a buzzword—it's how you build trust from day one.

What Are the Biggest Mistakes People Make with These Contracts?

Oh, we've seen a few. The three horsemen of the contract apocalypse are a fuzzy scope of work, murky payment terms, and a sloppy process for handling change orders. A poorly defined scope is practically an invitation for arguments down the line because everyone has a different idea of what "done" looks like.

Vague payment schedules are just as bad. They can wreck a project's cash flow and poison the relationship between the owner and the builder. A rock-solid contract nails these things down from the start. Think of it as the official rulebook for the project—it keeps everyone on the same page and the build moving forward. After all, we're here to build legacies, not just buildings.

How Does Liability Work in a Design-Build Project?

This is where the design-build model really shines. In the old-school approach, you’d have one contract with your architect and a totally separate one with your builder. When something goes sideways, the finger-pointing begins. The architect blames the builder, the builder blames the architect, and you're stuck in the middle.

With design-build, that whole mess disappears. The design-builder is your single point of responsibility for everything, from the blueprints to the final nail. It simplifies liability in a huge way. If there’s a problem, you know exactly who to talk to. There's no playing mediator; the buck stops with the design-build firm. That kind of accountability is something we live and breathe on every SEGC project.

At its heart, the design-build model is about simplifying complexity and creating clear accountability. It removes the friction between design and construction, allowing for a more collaborative and efficient project from start to finish.

Do I Need an Owner's Representative? What Do They Even Do?

Think of an owner's representative as your personal project quarterback and advocate. Their entire job is to look out for your best interests. They oversee the day-to-day progress, make sure communication with the design-builder is crystal clear, and double-check that every decision aligns with your vision, budget, and quality standards.

They’re especially crucial on big, complex jobs where you might not have the bandwidth or the deep technical know-how to stay on top of every little detail. A great rep keeps the lines of communication wide open and ensures your vision becomes reality, reflecting the same client-first focus and commitment to quality we bring to every project.

At South Eastern General Contractors, a solid contract is just the start. We’re in the business of building partnerships based on trust, clarity, and an obsession with quality. We don't just build structures; we build legacies. If you're ready to create something that lasts with a team that puts your vision first, let's talk. Learn more about how we work at https://www.southeasterngc.com.