You are currently viewing Contract Spotlight Series: The Design-Build Stipulated Price Contract (CCDC 14)

Contract Spotlight Series: The Design-Build Stipulated Price Contract (CCDC 14)

Throughout this series, each contract has demonstrated a different way of balancing project risk, responsibility, and flexibility. Some models separate design from construction, while others encourage collaboration before the design is complete. CCDC 14 takes a different approach by combining both design and construction under a single contract. Rather than engaging separate parties for each phase, the owner works with one design-build entity responsible for delivering the completed project.

Under CCDC 14, the design-builder assumes responsibility for both the design and construction of the project. This single-source approach replaces the traditional arrangement in which the owner contracts separately with a consultant and a contractor. Instead, the design-builder coordinates architects, engineers, and construction teams to deliver the project in accordance with the owner’s requirements and the agreed-upon contract price.

One of the primary advantages of CCDC 14 is streamlined project delivery. Because design and construction activities are managed by the same organization, communication can be more direct and design decisions can be evaluated with constructability, scheduling, and budget considerations in mind. Construction activities may also begin before every aspect of the design is finalized, allowing certain phases of work to overlap and potentially reducing the overall project schedule.

This integrated approach also creates a single point of accountability. Rather than determining whether an issue stems from the design or the construction, the owner deals with one entity responsible for coordinating both. This can simplify project administration and reduce the potential for disputes between designers and contractors regarding responsibility for project outcomes.

Although CCDC 14 offers greater integration, it also changes the owner’s role during project development. Instead of providing a complete set of design documents before tender, the owner typically develops a comprehensive set of performance requirements that define the project’s objectives, functional needs, quality expectations, and operational requirements. The design-builder then develops a solution that satisfies those requirements while meeting applicable codes and regulations.

Because the design-builder has greater control over both design and construction, contractor selection often extends beyond price alone. Owners frequently evaluate design-build teams based on technical expertise, relevant experience, proposed methodology, and the ability to deliver projects with similar complexity. Qualifications, collaboration, and innovation can all influence the selection process.

Like any delivery method, CCDC 14 is best suited to certain project types. It is often selected when owners are seeking schedule efficiencies, simplified project management, or opportunities for integrated design and construction solutions. At the same time, success depends on clearly defined owner requirements and effective communication throughout the project lifecycle. Ambiguous performance criteria can lead to differing expectations, making early planning especially important.

CCDC 14 demonstrates how integrating design and construction can streamline project delivery while creating a single point of accountability for the owner. Next, we examine CCDC 15, the design services contract, which works alongside CCDC 14 to define the design services provided before and during the execution of a design-build project.

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