Jurisdiction(s):
United Kingdom

Key definition

Design and build contract definition

What does Design and build contract mean? A design and build contract is a construction procurement route in which the employer appoints one contractor to both design and construct the works, creating single‑point responsibility for meeting the employer’s requirements. It is a descriptive industry term, not defined by legislation, but widely used in standard forms and discussed in case law. Key features include transfer of design and buildability risk to the contractor, reliance on employer’s requirements and the contractor’s proposals, and frequent novation of the employer’s design team to the contractor. Design liability is commonly framed as reasonable skill and care, but wording can impose...

Design & Build and EPC in Project Finance: Procurement Options, Risk Allocation, Price and Programme Certainty, Variations, Performance Testing, Liability Caps, and Standard Forms including the FIDIC Silver Book

Published by a LexisNexis Banking & Finance expert

Practice notes

The route a project Sponsor selects to procure a construction scheme is pivotal to cost efficiency, quality, overall delivery success and the sponsor’s satisfaction with the final outcome. That decision is shaped by several factors, including:

Time permitted for tendering and completing the works
The chosen method of finance
The construction Contractor’s expertise

What is a Design and build contract?

A sponsor may opt for a design and build approach to lessen the risks it carries. Design and build (D&B) procurement is a widely used route for sponsors undertaking construction projects.

For the sponsor, procuring via D&B provides a more unified delivery model than traditional procurement, which keeps design and construction separate (see Practice Note: Traditional procurement of construction contracts). Under D&B, the sponsor appoints a single main contractor under a D&B contract, and that contractor takes responsibility for both the project’s design and its construction.

The extent of any initial design produced by the sponsor and its advisers can vary. D&B procurement is popular with sponsors who...

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Web page updated on 21/05/2026

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