Stipulated Price Contract (Design-Bid-Build or Stipulated Sum)
The most common form of project delivery is almost self-explanatory
and is well-addressed in CHOP, needing little if any additional
commentary. This method of project delivery typically utilizes the
CCDC-2 Stipulated Sum Contract between the Owner and Contractor.
Key benefits include a known, fair and transparent process with
competitive pricing. With quality Construction Documents, a good
architect – client – general contractor relationship, and barring
extenuating circumstances (such as wildly varying existing conditions),
Stipulated Sum can also serve to better manage construction cost,
contrary to the commonly-perceived notion that ‘extras’ are more
prevalent. Keep in mind however that the price being bid to win the
project may be the cost to build the project less the cost of
The scope of an architect’s/consultant’s services is perhaps the most straightforward here, too.
Usually there are no particularly noteworthy considerations in the preparation of Construction Documents:
- During Construction Procurement, the key decisions that need to be
implemented relate to whether it is an open or closed bid, single or
- Construction Administration is likewise straightforward in that it likely results in a single contract to administer.
Fundamental when considering this method of project delivery is
that the quality and completeness of the CDs may have the greatest
impact on the success of a project. ‘Loose’ or incomplete documents lead
to ambiguity, questions, potential additional costs, and additional
time and effort during the Construction Administration phase.