Comprehensive and Detailed Explanation From Exact Extract (CSI-based)
In Design-Bid-Build (DBB), CSI describes a clear, linear sequence of phases:
Programming and design
Procurement (bidding/negotiation and selection of contractor)
Award of the construction contract
Construction
At the end of the procurement phase, the owner has received and evaluated bids, determined the successful bidder, and is ready to award the contract. CSI’s project delivery guidance explains that the award step typically involves:
Issuing a Notice of Award or letter of intent to the successful bidder; and/or
Forwarding the owner–contractor agreement (and other contract forms) for execution.
Only after this step do the parties fully execute the contract and the owner issues a Notice to Proceed, marking the official start of the construction phase. This matches Option D:
The owner issues a letter of intent or forwards the owner-contractor agreement to the successful bidder.
Why the other options are incorrect:
A. The contractor begins negotiating agreements with subcontractors.Subcontractor negotiations and subcontracts typically occur after the contractor has been formally awarded and has a binding contract with the owner. This is not the immediate step that awards the contract for construction.
B. The owner forwards construction contract agreements to subcontractors.The owner’s contract is with the prime contractor, not with subcontractors. Subcontracts are between the prime contractor and subcontractors. The owner does not award contracts directly to subs in standard DBB.
C. The contractor and owner issue an amendment indicating the project is in the construction phase.There is normally no “amendment” to enter the construction phase. The project enters the construction phase upon execution of the owner–contractor agreement and issuance of the Notice to Proceed, not by amendment.
Key CSI References (titles only):
CSI Project Delivery Practice Guide – chapters on Design-Bid-Build and the Procurement and Contract Award processes.
CSI Construction Specifications Practice Guide – discussions on contract formation and Notice of Award/Notice to Proceed.
CSI CDT Body of Knowledge – “Project Delivery Methods” and “Procurement and Award of Contract.”
