ConsensusDocs New Roll Out Includes Two Dual Obligee Riders  

Dual Obligee Riders

ConsensusDocs now includes four new documents, two of which are dual obligee riders that extend bond guarantees to a non-contract party while limiting the surety’s aggregate liability to the surety’s original bond sum in issued performance and payment bonds.

“A dual obligee rider—an amendment made to a surety bond to extend bond benefits and guarantees to a non-contract party, such as a construction lender at the prime contract level or a project owner at the subcontract level, as an additional obligee—is a frequent and important component of today’s commercial construction environment,” said Mark McCallum, CEO of NASBP. “NASBP applauds ConsensusDoc’s recognition of the need for publishing such standardized riders—one at the prime contract level and the other at the subcontract level.”

The new ConsensusDocs 264, Dual Obligee Rider Between Surety and Constructor (https://www.consensusdocs.org/contract/264/) is a rider that extends a bond guarantee to a non-contract party, such as a construction lender, as an additional obligee under existing performance and payment bonds issued by the Surety on behalf of a Constructor. The new ConsensusDocs 708, Dual Obligee Rider Between Surety and Subcontractor (https://www.consensusdocs.org/contract/708/) is a rider that extends a bond guarantee to a non-contract party, such as a project owner or a lender, as an additional obligee under existing subcontract performance and payment bonds.

“These riders help address the interests certain non-contract parties may have, ensuring that dual obligees gain appropriate rights and responsibilities in line with their interests.” he said. “ConsensusDocs again demonstrates its adherence to its mission to improve the construction industry through dissemination of useful standardized forms that equitably apportion risks among project parties.”

ConsensusDocs states in its November 2025 press release that both riders include standard language widely accepted by surety companies, simplifying the process when a dual obligee rider is required and giving all parties greater confidence. NASBP has endorsed both standard riders.

ConsensusDocs Embraces Progressive Design-Build

In addition, the ConsensusDocs rollout included two new documents that address progressive design-build (PBD). This project delivery method, which adopts a collaborative and transparent approach, uses a qualifications-based or best-value selection process followed by a process that allows the Owner and Design-Builder to “progress” toward a final design and price, offering significant advantages: [1]

• Faster procurement. Gets projects started sooner.
• Greater transparency. Encourages collaborative work towards a budget.
• Reduced upfront costs. Lower initial expenses for preliminary designs.
• Lower proposer costs. No significant proposal design​.

To meet the demand for this delivery method, ConsensusDocs added ConsensusDocs 411, Standard Progressive Design-Build Agreement and General Conditions Between Owner and Design-Builder (Cost of the Work Plus a Fee with a GMP) (https://www.consensusdocs.org/contract/411/), a standard document specifically tailored for PDB projects, and added ConsensusDocs 411.1, GMP Amendment to ConsensusDocs 411 (https://www.consensusdocs.org/contract/411-1/).

While the existing ConsensusDocs 410, Owner and Design Builder Agreement (Cost of Work Plus Fee with GMP)  (https://www.consensusdocs.org/contract/410-owner-and-design-builder-agreement-cost-of-work-plus-fee-with-gmp/) can be adapted for PBD projects, the ConsensusDocs’ working group found that many project owners prefer a contract tailored to progressive design-build.

The ConsensusDocs 411 incorporates key aspects of progressive design-build such as:

• Phased terminology. Instead of referring to the design and construction phases, the ConsensusDocs 411 uses Phase 1 and Phase 2 to reflect the flexibility of when design work is completed.
• Multiple GMPs. Explicitly allows for agreeing to multiple Guaranteed Maximum Prices (GMPs) on a progressive basis, so construction can begin on earlier phases while later phases are still being designed.
• Clear off-ramps. Includes milestones that provide clear exit points if the parties cannot agree on a GMP.

With these two new PBD documents added, the 400 Design-Build series now includes 25 documents, further reinforcing ConsensusDocs commitment to providing contracts that reflect current industry trends and best practices.

[1] Loulakis, M. C., Kinsley, P., Neumayr, G. W., & Unger, C. H. (2017). Progressive Design-Build Design-Build Procured with a Progressive Design & Price A Design-Build Done Right TM Primer. Washington, DC; Design-Build Institute of America.