Party Responsibilities - OWNER

Question 1

Owner’s responsibilities in regard of INSURANCE

Answer 1

1. Responsible for STIPULATING which types of insurance coverage and the limits of coverage the contractor must carry for the project in the contract documents.
2. The final decisions about insurance must be made by the owner on the basis of professional insurance advice.
3. may require the contractor to provide BONDS assuring that the Work will be performed in accordance with the contract documents.
4. according to A201 MUST PURCHASE PROPERTY INSURANCE unless otherwise specified in the supplementary conditions ( eg. may ask the contractor to purchase but the owner is still responsible for payment )
5. will act as a trustee as a FIDUCIARY to the proceeds paid by insurance companies to the contractor.
6. MAY purchase LOSS OF USE INSURANCE
7. required to file with the contractor a copy of each policy that includes insurance coverages required of the owner before an EXPOSURE TO LOSS occurs.
8. HAS TO obtain the surety consent before any portion of the retainage is released to a contractor or reduced.
9. MUST inform the insurance companies and make necessary insurance changeover arrangements prior to occupying any portion of a project.

Question 2

Owner’s responsibilities in regard of INSURANCE

Answer 2

1. Responsible for STIPULATING which types of insurance coverage and the limits of coverage the contractor must carry for the project in the contract documents.
2. The final decisions about insurance must be made by the owner on the basis of professional insurance advice.
3. may require the contractor to provide BONDS assuring that the Work will be performed in accordance with the contract documents.
4. according to A201 MUST PURCHASE PROPERTY INSURANCE unless otherwise specified in the supplementary conditions ( eg. may ask the contractor to purchase but the owner is still responsible for payment )
5. will act as a trustee as a FIDUCIARY to the proceeds paid by insurance companies to the contractor.
6. MAY purchase LOSS OF USE INSURANCE
7. required to file with the contractor a copy of each policy that includes insurance coverages required of the owner before an EXPOSURE TO LOSS occurs.
8. HAS TO obtain the surety consent before any portion of the retainage is released to a contractor or reduced.
9. MUST inform the insurance companies and make necessary insurance changeover arrangements prior to occupying any portion of a project.

Question 3

Owner rights and responsibilities in regards to STARTING WORK

Answer 3

A201 / A101 / B101 [ B102 / B201 ]

1. Responsible to order SOIL INVESTIGATIONS and Other Tests in regards to the construction site.
2. recommended by A201 to hire and pay the GEOTECHNICAL consultants necessary for testing the soil at the construction site.
3. Unless otherwise indicated in the contract document, the owner shall SECURE and PAY for necessary approvals, easements, assessments and charges required for construction, use or occupancy of permanent structures, or for permanent changes in existing facilities. Should also PROVIDE surveys describing physical characteristics, legal limitations, and utility locations for the site of the project and legal legal description of the site.
4. IMPLICITLY promises that contractors will have access to the construction site.
5. Furnish the contractor, within 15 DAYS after receipt of a written request by the contractor, information necessary and relevant for the contractor to evaluate, give notice of, or enforce mechanic’s lien rights
6. muse Provide the contractor with as many copies of the drawings and specification as are reasonably necessary during the construction period.
7. Can HIRE more than one contractor at the same time –> separate prime contractors , multiple prime contracts
8. can ASSUME “ Contractor “ responsibilities and liabilities once he carries out work.

Question 4

Owner rights and responsibilities in regards to DURING WORK

Answer 4

1. has the RIGHT to CARRY OUT the Work. If the owner wishes to exercise this right he must notify the contractor. If the contractor fails to respond, he can proceed to have the work done by others. He must issue a CHANGE ORDER to deduct from the the contract amount the cost of such work performed by others.
2. If within 10 DAYS of written notice to continue work, the contractor does not commence or correct the work, the owner can exercise the above in same manner and preapproved by the architect.
3. may ORDER changes in the work within the general scope of the contract documents, by the issuance of a CONSTRUCTION CHANGE DIRECTIVE, if the change will affect contract time and/or sum.

Question 5

Owner rights and responsibilities in regards to SUSPEND / STOP WORK

Answer 5

1. may SUSPEND Work
2. THE ONLY ONE has the right to STOP Work
3. after notifying the contractor and the Surety within 7 DAYS written notice, TERMINATE the contract with the contractor.
4. may terminate or suspend IN WHOLE or PART a contract at his own CONVENIENCE and WITHOUT CAUSE. In either case, the contract sum should be paid and adjusted accordingly.
5. may terminate the contract if the contractor:
   a) Repeatedly refuses or fails to supply enough properly skilled workers or proper materials.
   b) Fails to make payment to Subcontractors for materials and labor with respect to the Contractor-Subcontractor agreement.
   c) Repeatedly disregards applicable laws, statutes, ordinances, codes, rules, and regulations, or lawful orders of a public authority.
6. When the owner terminates the contract for one of the reasons provided above, the contractor shall not be entitled to receive further payment until the work is finished.