Responsibilities of Owner

Responsibilities of the Owner

The Owner agrees to cooperate with the C.M., and to promptly render decisions.  The Owner agrees to provide timely critical to the process including budget, schedule and physical requirement information.  The Owner states that is has the funds to complete the process, and agrees to pay invoices in a timely fashion.  The Owner also agrees to thoroughly track its own expenses, soft costs, furnishings, equipment and the like. 
Possible Additions:

Pre Construction Phase

Above plus, develop cost management procedures, coordinate design comments, review and advise on constructability, develop bidding procedures, coordinate permit process, assist in public relations, generate and expedite bidder interest, expedite bid document delivery, conduct pre-bid conference, bid evaluation.

Construction Phase

Contract administration, manage submittal process, coordinate testing and inspections, recommendations regarding non-conforming work, monitor construction schedule, review contractor claims, receive and review equipment instruction manuals. 

Post Construction

Assist in occupancy permit, coordinate as built documents, coordinate training sessions, claim analysis, coordinate punch list items, final project reports.

Owner's Questionaire

The Problem: All "team" members must be accountable, responsible. The Owner will be in the best position to be, and will naturally become, the team leader. Yet he is often doing this for the first time. The Owner must be realistic about his own capabilities and experience, recognizing that problems are bound to occur during the process.
The Solution: Through answering questions honestly, the Owner should set realistic goals and expectations.

Possible questions:
• What is my experience in this game?
• What are my expectations re: timing, costs, input, overruns, staff time, etc?
• How much time and effort am I willing to put in?
• What are my ideas regarding integrity of team members?

Questions Owner should ask Contractor:
• Experience in this type of work.
• All references – not just the good ones.
• Capabilities of key people.
• Financial strength.
• Any other skills that can be useful in the process?
• How much work is negotiated vs. bid?
• Subs to be used. Work with same ones on a regular basis?
• Repeat business with owners?
• Longevity of employees?
• Worker's Comp modifier.

Potential problems/solutions during design and construction
• Have a clear understanding by all parties of what's expected. Being "optimistic" alone isn't enough.
• Spend time to fully develop budget. Consider owner equipment, furniture and fixtures, and all soft costs including fund raising, legal, accounting, financing, etc.
• Allow for contingencies in both the budget and schedule. Not just for weather, labor, site conditions, and surprises, but for owner electives.
• Plan for an owner's representative and a substantial time commitment to review submittals and other documents, attend job meetings, and make decisions.
• Establish a communications platform. Who speaks to whom and about what, to ensure timely review, decision and transmission.
• Establish program for monitoring both the schedule and budget, especially up front. 80% of funds are committed during the first 20% of the project's life cycle.
• If problems arise, focus on the solution and not where to place blame. When parties work together as a team, the impact on the project is minimized.
• Be firm and fair. Develop explicit and complete contractual language whenever possible, but be flexible when unknowns and the unexpected happen.
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