THE CONSTRUCTION PROJECT
Do we have a team? Part 1
Owners, Contractors
and Design Professionals - the three
major players in a construction project. Are they partners in the project? Are they members of the same team?
The answers are: No, Maybe and Depends. From both a legal and financial perspective, these
parties are not partners and you, whether an owner, contractor or design
professional, should not think that is the relationship you have.
Construction Team Objectives
Are the parties part of the same team? If the objective of
the team is to complete the construction project in accordance with the owner's
vision, (with valuable input from the design professionals), for the price
agreed upon and on the date expected by the owner, (with valuable input from
the contractor), then maybe all are playing on the same team. However, the
team's objective is only realized if the plans, specifications and other
contract documents accurately reflect the owner’s vision; the price specified
in the construction agreement is the total amount the contractor will demand to
build the owner's vision; and the time frame expected by the owner is realistic
and met.
Construction Team Agreements
These goals will not
be achieved unless prior to the commencement of construction, the owner,
contractor and design professionals enter into agreements which:
1. Clearly and fully describe all
labor, materials and services the contractor is required to deliver for the
price listed in the agreement?
2. Clearly and accurately assign
responsibilities between the owner, contractor and design professionals--and
the parties understand all of their responsibilities versus those of the other parties.
3.
Provides an initial communication and follow up dispute resolution
process between the parties whenever an event or dispute arises which threatens
the successful completion of the project on time, on budget, and as envisioned
by the owner.