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Construction Law Authority / Posts tagged "Contracts" (Page 3)

Construction Contracting for the Owner – Scope of Work

It is an easy enough question, what is the scope of your project? For example it may be simply to reroof the building. However, what materials should be used, what will be done with damaged plywood decking, does the existing roof need to be pulled off or can it be roofed over? These are all basic questions that need to be addressed from what appeared to be a simple question. As the owner, the scope is very important for purposes of knowing what your expectations are and that the contractor understands those expectations.  The scope will also impact the price. In our reroof example, what is the contractor doing with the air conditioner stands on the flat roof? Are they being removed and put back, or the being removed and new ones put in? Can the work be done with the air conditioning units in place?  Whether a reroof or any construction work...

Construction Contracting for the Owner: The Owner – Contractor Relationship

   In choosing a Contractor, often the Owner chooses a Contractor through a bidding process. Sometimes the Owner engages a Contractor on their own.  However the Contractor is contracted it is important to spell out the details of the terms. Courts will not protect an Owner from a bad deal that the Owner has voluntarily entered. This means that those multimillion dollar one page contracts floating around (I have seen a number of them over the years) will be enforced by a court if the Owner does not live up to the terms, no matter how one sided. In the bidding process, the Owner, with the help of the Design Professional, sends out a bid packet to various contractors and invites them to bid on the project.  The Owner and Design Professional then evaluate the bids and review the responsiveness of the bid, the responsibleness of the bids (is the bidder lowballing now in hopes of issuing...

Construction Contracting for the Owner: The Owner – Design Professional Relationship

Once the owner has decided to undertake a project they generally retain the services of a design professional. The design professional is the engineer or architect hired by the owner to be used at various points throughout the project. General discussions between the owner and design professional should include the owner’s expectations of the projects, budgets, specific materials which need to be used or special considerations about the project. In both renovations and new construction these discussions would also include aesthetic considerations.  Although all these discussions may happen, the scope of the design professional’s relationship with the owner is that which is spelled out in the contract between the owner and design professionals. An owner in retaining the design professional needs to define his expectations of the design professional, and those expectations should be reduced to a written contract. As an owner, if you want the design professional to provide contract administration then you must ask...

Construction Contracting for the Owner – Parties to a Construction Project

  This is part 1 of our series on Construction Contracting for the owner.  Once you have decided to begin a construction project, whether this project is a reroof, concrete restoration, painting, repaving or anything else, there are generally 3 main groups involved. The first of these groups is the owner. The owner is the person or entity on whose behalf the work is being done. The types of owners range from an individual, development entity, hotel, condominium association, homeowner's association or a governmental agency.  Although the owner may be using a bank to finance the construction, the owner is the party generally responsible for ensuring payment to the other 2 groups. The second group is generally the design professionals. This group consists of the engineer or architect hired by the owner to prepare any drawings or specifications for the work to be done.  In larger projects, the owner may contract with an Architect who then hires various subconsultants (geotechnical engineer, structural...

Construction Contracting for the Owner

Whether new construction, renovations or repairs, as an owner you have decided to begin a construction project.   Before you start any work some basic questions must be answered: What are you trying to accomplish?  What is your budget?  What type of warranties are you receiving?  I will attempt to outline some of these issues in a new weeklu series on construction contracting for the owner.  The series will consist of the following topics:  1. Parties to a construction project 2. The Owner - Design Professional relationship 3. The Owner - Contractor relationship 4. Scope of work 5. Types of contracts 6. Essential Terms of construction contracts 7. Closing out the project If you are an owner, and that may be an individual, hotel, condominium or homeowner's association, I hope that you will be able to take some valuable information away from this series as you begin your construction project.  ...