Utah General Contractors - Business and Law Practice Exam

What type of contract involves one contractor assuming full design and construction responsibilities?

1. Design/Build

2. General Contract

3. Subcontract

4. Joint Venture

The correct answer is: Design/Build

The type of contract that involves one contractor assuming full design and construction responsibilities is known as a Design/Build contract. In this arrangement, the contractor is responsible for both the design and the construction phases of a project, which promotes a single point of accountability. This can streamline communication and reduce the complexities that typically arise from having separate contracts for design and construction, as the same entity manages both aspects. This contract structure allows for more integrated project delivery, encouraging collaboration and innovative problem-solving while potentially reducing costs and project timelines. In contrast to a General Contract, where responsibilities may be divided among different entities for design and construction, or a Subcontract, which typically involves a contractor hiring another contractor to perform a portion of the work, the Design/Build arrangement centralizes these responsibilities. A Joint Venture, on the other hand, involves two or more parties working together on a project but does not inherently include the integrated approach characteristic of Design/Build contracts.