The design-builder assumes responsibility for design adequacy and construction performance under one agreement. The owner has a single point of accountability, and Spearin protection is generally unavailable for design the builder produced.
Professional liability and general liability coverage interact.
Alternative Names:
Design-Build Contractor|DB Entity
Why it Matters?
Losing Spearin protection is the fundamental shift, since a design-builder cannot claim the owner warranted specifications it produced itself. That consolidates risk and is the tradeoff for the coordination benefit. Insurance also becomes complex because design errors fall under professional liability while construction defects fall under general liability, and claims spanning both can produce coverage disputes between the carriers.
Frequently Confused with
Related terms
Frequently asked questions
Does Spearin protect a design-builder?
Why is insurance complex?
