Client’s Contract Responsibilities: A Full-Time Job

Many clients are surprised to learn when they enter into standard design and construction agreements, that they take on an extensive list of duties which they must perform during the project—or risk breaching these contracts. Although some of these tasks can be delegated to other parties, all too often these tasks fall through the cracks, leaving the client with an unexpected and unwelcome burden late in the project.

On any successful project, every member of the project team understands and accepts his or her role, and fulfills his or her responsibilities to the other participants. This does not happen by chance. Early in the project, while structuring the contractual relationships among the project team, MEP-C will break down and explain the mutual promises of the contracts, particularly the scope-of-work, timing and financial responsibilities of each of the parties, and help determine which party performs each task in the proper sequence, a process that avoids misunderstandings which can cause finger-pointing, delays, and unexpected costs.

MEP-C performs these duties, or assigns these duties to appropriate members of the project team, to free the client and its team for other important tasks. In addition, MEP-C enforces the contracts on behalf of the client to ensure that designers, contractors and other members of the project team fulfill all of their contractual responsibilities.

MEP-C can offer all of the following specific services, depending upon the Owner’s needs:

• Identify the Owner’s building and facilities needs, resource opportunities and limitations (through project programming, feasibility studies and the Cost/Time/Quality triangle)
• Explore and identify the Owner’s tangible and intangible goals for the project;
• Identify the pros and cons of a potential new project;
• Identify and procure necessary pre-design documentation (existing documentation, site conditions studies, governmental planning and regulatory documents);
• Select the appropriate project delivery model—traditional design/bid/build for a stipulated sum; construction management at-risk with a guaranteed price; design/build for a guaranteed maximum price; or other approaches;
• Select the appropriate designer(s), consultants and other partners, including cost and schedule consultants and other construction management specialists;
• Set up and negotiate fair and sustainable contractual relationships between owners, designers, consultants, financing entities, contractors and other participants, with the primary goals of clear relationships and minimal disputes;
• Advise on appropriate risk-management strategies (insurance, indemnities, bonding, etc.);
• Identify and navigate institutional, regulatory, financial, construction and other issues arising before and during the project, including environmental issues, zoning, access/traffic, utilities;
• Review the design for program compliance, constructability, general budget compliance, value engineering opportunities (with CM and cost consultant);
  Assistance in bidding and negotiating construction contracts;
• Assistance in setting up schedule, budget, quality and safety tracking processes (with CM and consultants);
• Identify necessary late-construction and post-construction needs and consultants, such as FF&E coordination, commissioning, etc.;
• Troubleshoot troubled projects and relationships and intra-project relationships;
• Resolve disputes and put projects and relationships back on track without litigation;
• Advise parties when litigation is unavoidable, including selection of dispute resolution method and forum (with a strong preference for alternative dispute resolution), assistance in preparation for dispute resolution, and/or selection of appropriate counsel and consultants if circumstances require.