What are the 2 contract approaches in PDB?

What are the 2 contract approaches in PDB?

• A. Single contract approach; Two-contract approach
• B. Single contract approach
• C. Two-contract approach
• D. Hybrid contract approach

Answer: (A)

In PDB, contract structure influences who is responsible for design and construction and how risk is shared, which in turn affects coordination and decision-making on the project. There are two recognized contract approaches. One is the single contract approach, where the owner has one contract with a design-builder who handles both design and construction under that single agreement. This arrangement creates a single point of accountability and typically streamlines procurement and decision-making, since there’s a unified team and streamlined risk allocation. The other is the two-contract approach, where design and construction responsibilities are procured under separate contracts. This can allow more specialized attention to design and to construction, but it requires rigorous interface management and clear coordination between the design and construction parties to avoid gaps or conflicts. A hybrid approach can occur in practice, but the standard PDB categorizes the two primary models as the single contract and the two-contract approaches, which is why those two together represent the answer.

In PDB, contract structure influences who is responsible for design and construction and how risk is shared, which in turn affects coordination and decision-making on the project. There are two recognized contract approaches.

One is the single contract approach, where the owner has one contract with a design-builder who handles both design and construction under that single agreement. This arrangement creates a single point of accountability and typically streamlines procurement and decision-making, since there’s a unified team and streamlined risk allocation.

The other is the two-contract approach, where design and construction responsibilities are procured under separate contracts. This can allow more specialized attention to design and to construction, but it requires rigorous interface management and clear coordination between the design and construction parties to avoid gaps or conflicts.

A hybrid approach can occur in practice, but the standard PDB categorizes the two primary models as the single contract and the two-contract approaches, which is why those two together represent the answer.