What compensation mechanism refers to the contract that the parties will enter into if the Design-Builder wins the procurement?

The compensation mechanism that refers to the contract entered into by the parties if the Design-Builder wins the procurement is known as the Teaming Party Price. This term specifically relates to the financial arrangement that is established between the Design-Builder and other stakeholders involved in a project, particularly in the context of design-build contracts.

When a Design-Builder successfully wins a procurement process, they typically enter into a partnership or contractual agreement that outlines the pricing structure and compensation for their services, as well as any subcontractors or team members who are part of the project. The concept revolves around collaboration and mutual agreement on the costs associated with design and construction, which is essential for ensuring that all parties understand their financial commitments once selected for the project.

In contrast, differing site conditions refer to unexpected physical circumstances encountered during construction that may affect the project timeline and cost, while constructive acceleration involves the project schedule being expedited due to delays caused by the owner or other factors, imposing additional costs on the contractor. Finally, arbitration is a method of dispute resolution where disagreements are settled outside of court but does not pertain to a compensation mechanism based on winning a procurement process. Thus, understanding the Teaming Party Price is crucial in the design-build environment, as it directly influences the financial