Assist owner in preparing Owner-Contractor Agreement

3m 32s

In this ARE 5.0 Construction and Evaluation Exam Prep course you will learn about the topics covered in the ARE 5.0 CE exam division. A complete and comprehensive curriculum, this course will touch on each of the NCARB objectives for the ARE 5.0 Construction and Evaluation Exam.

Instructor Mike Newman will discuss issues related to bidding and negotiation processes, support of the construction process, and evaluation of completed projects.

When you are done with this course, you will have a thorough understanding of the content covered in the ARE 5.0 Construction and Evaluation Exam including construction contract execution, construction support services, payment request processing, and project closeout. 

When assisting the owner in preparing the owner-contractor agreement, you should: review changes in the contract itself, review any changes the contractor wants to make to the contract, and make sure provisions are consistent between all the agreements and contract documents. First, you need to review any changes in the contract itself. You should pull up and review the A101 contract and make sure that it includes all applicable bonds, such as performance and payment.

You should also make sure that any liquidated damages have been noted. Next, review any changes that the contractor wants to make to the contract, along with any changes there may be to the exhibits noted in the contract. You should inform the owner of any potential cost or liability implications of the changes that the contractor is proposing. The general contractor should have put together a list of all of the drawings and specifications sections that they are referencing to complete the work.

You will need to verify that the contractor is using all of the appropriate documents and that the documents listed have the correct date of issue. You also need to verify that this list is complete without any missing documents and that they have been reviewed and coordinated with the A101 contract. Next, you need to clarify that the contract has been reviewed and approved by the owner and general contractor, including all substitutions and any value engineering that came up in the bidding process.

Additionally, you should have knowledge of: the project start date, how and when the date of substantial completion will be determined, how payment processing and change orders will be handled, and how the parties have agreed to handle dispute resolution. The last step is to make sure that the provisions in the owner-contractor agreement are consistent with those in the owner-architect agreement, the general conditions, and the rest of the contract documents.

For example, the owner-architect agreement may not include commissioning of systems, but the contractor would like that included in their agreement with the owner. If this is the case, a modification would need to be made to the owner-architect agreement to include this. You should review all of the contract documents to verify that they are in alignment with each other, and that there are no conflicts.

This requires an understanding of the contracts, as well as the wants and needs of each party. Here, you should also double check that all of the reference documents are the appropriate ones. Additionally, you will need to understand the roles of each of the parties in the contract. If you don't properly assist in the preparation of the owner-contractor agreement, there could be a miscommunication of expectations and responsibilities that could result in lost time, increased cost, and potential lawsuits.

So to sum it up, when assisting the owner in preparing the owner-contractor agreement, you will need to: review changes in the contract itself, review any changes the contractor wants to make to the contract, and make sure provisions are consistent with all the agreements and the contract documents.

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From the course:
ARE 5.0 Construction & Evaluation Exam Prep 2020

Duration: 1h 35m

Author: [email protected]