Professional Construction Consultants.
O
R I G I N A L A R T I C L E S
The Owner's Duties in Construction:
The
Owner's Duties in Construction,
Continued
CONSTRUCTION PHASE
- Execution of the construction contract. Before work can begin, the contract with the constructor must be executed. In addition, the constructor should provide his bonds and evidence of insurance before mobilizing on the site.
- Approval of the construction schedule. The constructor should provide a comprehensive construction schedule soon after execution of the contract. It is the owner's responsibility to not only review and approve the schedule, but also to monitor the schedule during construction, require periodic updates from the constructor, and to put the constructor on notice if the work falls behind schedule.
- Reconciliation of allowances. In order not to impede the progress of the work, the owner must finalize the scope of work for each cost allowance and provide a change order to the constructor reconciling each allowance as quickly as possible.
- Inspection and testing of the work. The architects and engineers have limited responsibility to inspect and approve the work as its being completed. It is the owner's responsibility to continuously and comprehensively inspect the work to insure compliance with the contract documents. Outside testing firms must be retained by the owner to provide certain quality assurance work not normally provided by the constructor.
- Project safety. The owner is responsible to insure that the constructor has a safety plan in place at the site.
- Approval of changes. architects do not warrant that their plans will be perfect. Conflicts in the plans may arise which will require change orders to the construction contract. It is the owner's responsibility to provide these change orders and to fund the cost of the changes. In addition, the owner's program may change during the construction, which may effect the design. Prompt preparation and execution of change orders is necessary to keep the project on schedule.
- Approval of colors and products. The architect will ask the owner to make final decisions on colors, materials, and other design matters.
- Monitoring subcontractors' and suppliers' payments. In order to protect himself, and to protect his rights under the constructor's bonds, the owner must have a program that enables him to insure that all subcontractors and suppliers are being paid in a timely manner by the constructor.
- Resolution of disputes. Differences of opinion will occur from time-to-time on every project. It is the owner's responsibility, and to his benefit, to resolve them quickly.
- Adjustment and administration of property insurance claims. In the event that the project suffers a casualty loss covered by property insurance, sometimes referred to as "builder's risk insurance", then it is the owner's responsibility to promptly administer the adjustment of the claim on behalf of all the covered parties.
- Procurement and installation of F.F.&E. As stated above, this function must be administered in a timely manner by the owner, if the final product is to be functional.
- Development of an operations and maintenance staff. Upon substantial completion of the project, the constructor will turn over to the owner the responsibility for operating and maintaining the facility. The owner needs to have a staff in place prior to this event.
- Coordination of separate contractors. Sometimes the owner decides to have more than one prime contractor involved in the project. Specialty contractors are a good example, such as kitchen equipment contractors or data processing contractors. It is the owner's responsibility, not the constructor's, to coordinate the various prime contractors on the site.
- Conduct project meetings. A system of periodic management meetings needs to be established at both the staff and executive levels. Agendas and minutes need to be prepared by the owner for these meetings, if they are to have value.
- Acceptance of the work. Once the work is completed, only the owner has the authority to accept it from the constructor.
- Establishment of a warranty program. Since the owner is the beneficiary of the construction and manufacturers' warranties, the owner must set up a program to manage and administer these warranties.
- Provide continuing architectural and engineering (AE) services. During the construction phase, certain AE services will be required. These include certification of the constructor's pay requisition and approval of shop drawings and submittals. Failure of the owner to provide these services on a timely basis is a common root of constructors' claims against owners.
©2000 John A. Jones, PE, CBO
