When a Project’s Performance Specifications Lead to Risky Performance Guarantees




ABA Forum on the Construction Industry show

Summary: What do you do if you are a design professional working on a design-build or EPC project and the design-builder, EPC contractor, or the Owner requires that you guarantee the performance of the built structure or system – such as achieving a certain LEED certification rating, providing a 20% energy savings, or complying with certain regulatory requirements? This is your opportunity to hear a Utility Owner’s perspective on why it must transfer certain business risks to the design- builder through performance specifications and performance guarantees, and a Designer’s perspective on why this type of risk transfer creates insurability problems. In addition, you will receive practical advice on how to limit or reduce the Designer’s potential risk of exposure.