व्हाट आर द फंक्शंस ऑफ ऑनर इन कंस्ट्रक्शन टीम
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It was during one of those interminable construction site meetings that a comment was made that caused this writer to pause then agree. The architect and the general contractor were arguing as usual about the typical question of whether cost saving techniques proposed by the architect would actually save money or cause chaos and their dispute deteriorated into mutual recriminations then mutual protestations that each had the hardest task in the construction project and no one else on the project understood how hard their particular task was.
The Owner, who was suffering through his first real construction project broke in. “You guys have it easy. Each of you has a job that’s tough. I have the job of supervising the big picture and getting the money…plus I have to handle you guys as well.”
He was right.
Risk allocation is a fundamental consideration in all contracts. Usually, parties to construction contracts will seek to include provisions that limit and distribute their respective risks, duties, responsibilities and liabilities. Such provisions can be unreasonable in their attempts to shift responsibilities from one party to another, and should, therefore, be scrutinized very closely during contract formation and negotiation. Even where express contract provisions are provided, the law generally imposes implied warranties, duties, and responsibilities on the parties. See the other articles on this web site on Construction Law and Litigation.
The person “in charge” of the overall project is usually termed the “Owner” and is often the only nonprofessional in the entire project. It is critical for each Owner, until he or she has built numerous projects, to understand that they are operating under a significant handicap. Not only must they contend with professionals who do these types of projects (and create form contracts) for a living, but the various builders and suppliers have finite tasks while the Owner must assume financial responsibility for the success of the entire project.
Owner duties and responsibilities that have arisen in typical disputes include:
1. Providing financing for the project.
2. Providing site surveys.
3. Securing and paying for easements.
4. Warranting the plans and specifications.
5. Warranting owner furnished materials.
6. Disclosing superior knowledge.
7. Acting on clarifications and changes.
8. Interpreting the documents.
9. Cooperating with the contractor.
10. Selecting all professionals on the project.
11. Interacting with various governmental bodies.
12. Interacting with real estate professionals to sell the finished project.
13. Interacting with title companies to facilitate the sales.