Owner`s Rep Construction Agreement

The reasons for the increase in the use of third-party representatives are likely due to the combination of the increasing technological complexity and economic risk associated with modern construction projects, the development of new and complex project implementation methods, and the increased specialization of design professionals who have in the past served as the owner`s representative. Both private owners and contracting authorities have project advisors to complement their internal management and management capabilities and fill gaps in the builder`s, agent and contractor`s services. iii) Scope and authority. Developing the right level of performance to meet the owner`s needs and align with the technical and technical skills of the owner`s representative is essential to success. Unless the owner`s representative has proven expertise in areas such as cost estimation, design controls, development advice, authorization, E-E services and project financing, they should not be responsible for these tasks. When the owner`s representative provides services for which he is not “best placed,” he exposes the owner to an unnecessary risk, especially when the owner`s representative provides services that go beyond his contract and that may not be covered by his professional liability policy. Engineering or design studies, development advice and land use analysis, verification and negotiation of claims, as well as the guarantee of the financial performance of the project or the execution of the contract by the project team can be examples of this magnitude, which requires careful consideration on the part of the owner. Similarly, all project participants should have a clear understanding of the owner`s representative`s authority to act on behalf of the owner and to engage the owner with respect to the actions and decisions in the development and construction contracts. The limits of authority should be clearly defined in the treaty and applied consistently in practice. It seems that paying for completed work is only a basic concept in construction. However, the requested payment often does not match the project`s current equity. Maintaining the balance between completed work and distributed capital is an essential part of the financial health of your project, as it leaves you with the least risk.