This new exercise physical therapy facility involves very complex mechanical, electrical, and

plumbing $($MEP$)$ systems, totaling over $45\%$ of the entire construction budget. The owner had a

bad prior experience with a fully designed$-$bid$-$built mechanical project. Under the

recommendation of the architect and estimating consultant, they decide to employ design$-$build

$($D$-$B$)$ mechanical and electrical subcontractors directly.

$$ Legally based on this case do you agree utilization of D$-$B MEP subcontractors helps

control costs?

$$ What role could a third$-$party MEP designer play with respect to $$criteria

documents$?$ How much are design fees for MEP subcontractors?

$$ Who should carry these design contracts, the owner, the architect, or the general

contractor?

$$ Who carries the insurance for this work?

$$ Who is named as additional insured?

$$ What risks do all of the parties assume?

Assume in the above case the client carries the design portion of the MEP contracts and a

negotiated general contractor will ultimately carry the construction portion of the contracts

when a guaranteed maximum price $($GMP$)$ contract is developed. The design agreements are

very loose and the subcontractors$$ deliverables and detailed schedules of values $($SOVs$)$ are not

defined. The subcontractor$-$design team reports that the documents are complete, and the

general contractor submits their GMP to the owner. It is significantly over their earlier budget,

especially in the areas of mechanical and electrical. The subcontractors refuse to negotiate their

construction estimate and the owner announces they will bid this portion of the work out.

$$ Is this ethical?

$$ Is the owner guaranteed a lower construction price if this portion of the work is put

on the street for open bidding?

$$ Will the original design$-$build subcontractors submit competitive lump sum bids on

their own drawings?

$$ If so$,$ will they be successful submitting change orders for discrepant documentation?

$$ What are the risks for all parties?