Construction parties and their responsibilities and obligations

Introduction
Construction work may include building of a new structure, additions, alterations, expansion,
replacement, dismantling, erection, commissioning, rehabilitation, renovation, etc. Construction is a
high-risk activity and must be actively managed from inception through completion. When
constructing a project, many parties/specialists are involved in the process of planning, designing,
financing, monitoring, and building. Each of these parties has a different role to play, but they are
temporarily joined together for certain period by a legal contract. However, this legal
contract/agreement is signed by two main parties. The Owner, the first party, intends to carry out
certain works for the implementation of a project and is sponsoring the works. The first party then
appoints a Contractor, the second party, to execute the works. No doubt the agreement is usually
signed by two parties; however, taking a construction project from inception through to completion
and commissioning requires the concerted and coordinated efforts of three distinct parties: the
Owner of the project, the Consultant, and the Contractor. The Consultant is not a party to the
contract but is appointed by the Owner to carry out duties that are stated in the contract.

The goals and objectives of each of these parties are unique and often partially in conflict. In most
situations the conflict and related disputes come to surface during the actual construction process.
However, if the Owner understands the role and responsibilities of its construction Contractor, it will
increase the prospects of a project with minimal conflict and adversity and greater opportunity for
success. For most projects, the Contractor has little or no involvement until the bidding phase.
During the planning and design phases, the focus is on the design of the project and in the
preparation of the Contract Documents. It is the Contract Documents that
Contain the definitions of the roles and responsibilities of the Owner, the Consultant, and the
Contractor during the construction phase.

Prepared by Dr.Yusuf M. Al‐Malki, 2020 ‐ CENG 406

Construction parties:

Owner (s), Contractor(s), Consultant(s)

The Owner
The Owner, when planning to construct a project, will have to face many challenges, such as time
and cost constrains, program and quality goals, selection of a management team, a Constructor,
etc. The Owner basically decides the scope, program, and budget for a project before starting the
project design. During the design and construction phases, the Owner monitors the progress of
work being done including its quality and makes periodic payments to the Consultant and
Contractor. In traditional contracts, the Owner has separate contracts with the Consultant and the
Contractor. The Consultant provides professional services to undertake the responsibility of design
and construction administration of the required project, whereas the Contractor is responsible for
the construction phase. The success of every construction project depends as much on the project
Owner as it does on the Consultant and Contractor.

As soon as the Consultant is appointed by the Owner, a sequence of activities like feasibility
report, sketch design, detailed design, bill of quantities, Contract Documents, tendering,
construction supervision, and commissioning are undertaken. All these activities involve many
professionals like architect, structure and services engineers, quantity surveyor, geo-consultants,
General Contractor, subcontractor, etc.
Generally the role of the Owner may include:

1. Identify needs.
2. Set out the parameters that define the project.
3. Establish reasonable goals for the project.
4. Arrange adequate funds.

Prepared by Dr.Yusuf M. Al‐Malki, 2020 ‐ CENG 406

The Consultant

The Consultant in the context of a construction project means a consulting firm, the Consultant’s
authorized representative. The Consultant may be an architectural firm or an engineering firm or a
sole proprietorship firm that is legally engaged/licensed in rendering professional services. The role
of the Consultant varies based on the services required. For full professional services, under a
traditional approach, the Consultant is responsible for two separate functions: design and
construction administration. Construction administration is essentially the monitoring of the
Contractor’s work in executing the design. The responsibilities incumbent on the Consultant as well
as the limits of authority should be clearly defined in the agreement between the Owner and the
Consultant and within the construction Contract Documents.
In general, the role of the Consultant, based on provision of full professional services, will cover
stages of pre-constructing, construction, and post-construction phases. Services provided by the
Consultant as part of the preconstruction phase include:

1. Design and supervise the project.

2. Preparing preliminary budget and cost estimates.
3. Undertake conceptual, preliminary, and detailed design including site investigations.
4. Obtain the permit and all the necessary permits of the project.
5. Preparation of Contract Documents.
6. Preparation of bid (tender) documents and contract formation.

Prepared by Dr.Yusuf M. Al‐Malki, 2020 ‐ CENG 406

The Contractor
The Contractor is second party to the contract and, therefore, the Contractor is mentioned
extensively in every Conditions of Contract. The Contractor under most forms of contract is
required to execute and complete the works and remedy any defect in accordance with the
Contract Documents and the instructions from the Consultant. Despite various difficulties and
inclement weather conditions or troubles, the Contractor is expected to complete the project and
finish the work in the prescribed manner. The Contractor, who is responsible for constructing the
entire project, is referred to as the “main,” “prime,” or “general” Contractor. Contractors may also
function as a subcontractor or specialty Contractor, in which case will have responsibility for only a
limited aspect of the project. All contractors will agree to do awarded work within a stipulated time
period and for an agreed amount of money. The Contractor’s main responsibilities can be
summarized as follows:
1. Supply and provide labor, material, and equipment as necessary to perform the works
within the contract period.
2. Provide competent, experienced management and supervision for performance of the work.
3. Comply with all statutory laws and regulations during execution of the works and ensure
that all who are employed on the site abide by these conditions.
4. Select and provide the means, methods, techniques, sequences, and procedures of
construction. Schedule and coordinate the work with other groups like suppliers,
subcontractors, etc. working on site.
5. Warrant and guarantee that all work done will be in accordance with the Contract
Documents and will not be defective.

Prepared by Dr.Yusuf M. Al‐Malki, 2020 ‐ CENG 406

Contractual relationship between the parties:
There is two types of contractual relationships between the contract parties ( see the
figure below:
1. Direct relationship means there is an exchange of considerations or promise
(example: money to building). It means there is a written contract between the
parties and sign by both. Which means they can sue each other in cause of
default. Example: the relationship between client and contractor ( client pay
the contractor to build his/ her project for certain about of money, both sign
contact. , another example the relationship between client and consultant,
client hire the consultant to design and supervise the project for sum of
money.
2. Indirect relationship means there no). It means there is no written contract
between the parties and no signature. Which means they cannot sue each
other in cause of default. Example contractor and consultant, contractor is not
hiring be the consultant and the consultant not hiring the contractor.

Reference: https://www.springer.com/cda/content/document/cda.../9783319666846-c1.pdf?

Prepared by Dr.Yusuf M. Al‐Malki, 2020 ‐ CENG 406