Real Estate 2025

USA – NORTH CAROLINA Law and Practice Contributed by: John Livingston and Brittani Miller, Kilpatrick

• Owner: Responsible for overseeing the process, hiring the design professional and managing the bidding process. • Design professional (architect/engineer): Responsible for creating the project’s plans and specifications, and ensuring compliance with building codes and regulations. • Contractor: Responsible for executing the construction work according to the design specifications. The contractor assumes liabil - ity for construction defects but is not respon - sible for design errors. Design-Build Overview: • The owner hires a single entity (design-build firm) to handle both design and construction under one contract. • This approach streamlines communication and minimises conflicts between design and construction teams. Responsibility allocation: • Design-build firm: Responsible for both the design and construction phases. The firm assumes liability for both design errors and construction defects. • Owner: Responsible for providing project requirements and oversight but relies heavily on the design-build firm for execution. • Subcontractors: Typically hired by the design- build firm to complete specific portions of the work. Construction Manager at Risk Overview: • The owner hires a construction manager during the design phase to provide input on costs, scheduling and constructability.

• The construction manager acts as the general contractor during construction and guaran - tees the project will be completed within a specified maximum price. Responsibility allocation: • Owner: Responsible for hiring the design pro - fessional and construction manager. • Design professional: Responsible for com - pleting the design and ensuring compliance with codes and regulations. • Construction manager: Responsible for pre- construction services, managing subcontrac - tors, and delivering the project within the guaranteed maximum price. • Subcontractors: Perform the actual construc - tion work under the construction manager’s supervision. Integrated Project Delivery (IPD) Overview: • This collaborative method integrates all par - ties – owner, architect, contractor and other stakeholders – into a single contract. • IPD emphasises shared responsibility, risk and reward to achieve project goals effi - ciently. Responsibility allocation: • Owner: Responsible for assembling the IPD team and approving major decisions. • Design professional: Collaborates with the team to ensure design aligns with project goals and construction feasibility. • Contractor: Works closely with the design team to optimise construction methods and manage execution. • Subcontractors: Actively participate in the collaborative process.

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