Page 306 - TCDB combined Book

Chapter 6 MANAGEMENT 285

Chapter

MANAGEMENT 6

Introduction

The methods and systems outlined herein are based on current practices presently used in
the construction industry. Your need for a budget and the importance of a business plan should
not be overlooked. The information provided for office setup, personnel, accounting,
communications and computers is a guide and usually based on personal preference.
Design-Build signed contracts should be standard thorough documents covering all
aspects of the project at hand. Scope of work, schedule, design documents, and terms of payment
should all be defined precisely.
Insurance coverage for your Design-Build Projects is imperative and recommends a full
and complete review with a knowledgeable insurance executive for all your insurance needs, prior
to commencing work on any projects. Bonding will not be required on all your Design-Build
projects and point out the importance of understanding the commitment that is required in
obtaining a bonding facility. Beware of the pitfalls in working as a prime contractor/subcontractor
on projects with no lien privileges or Labor and Material Bonds to guarantee payments.
There will be no limit to legal, accounting and other professionals available to deal with
problems that will arise. There are situations and conflicts considered by many to be inherent with
the Construction Industry. To avoid, minimize, or alleviate legal problems that may arise we
emphasize the importance of using accepted standard, clear and enforceable forms of contract,
supported by complete design documents. Remember to prepare a complete scope of work and
receive written confirmation that project funding is available. Recognizing the difference between
opportunity and risk and applying the basic principle of "Know Thy Client" should be main
concerns of management for a Design-Builder.