Construction Law Outline.docx - Downloaded From CONSTRUCTION LAW WHO\u2019S WHO 1.2 Participants in the Construction Process a

Construction Law Outline.docx - Downloaded From...

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Downloaded From 1 CONSTRUCTION LAW WHO’S WHO 1.2 : Participants in the Construction Process a. Owner : -Provides the site, concept, organizational process, and financing to construct a Project (entire undertaking for any improvement to real property) -Hires DP to design a Program (objectives, schedule, budget, constraints and criteria) to accomplish owner’s goals/prepare Construction Documents -Owner’s Expectations: 1. project will be designed in accordance with the owner’s performance, aesthetic and financial objectives 2. DP will administrate the construction contract (which DPs might downplay, but is essential for inexperienced owners) - Public Owners : 1. More Regulations: disadvantaged/minority business enterprise regs, federal/state false claims acts, special procedures for instituting claims or protests 2. Control dispute resolution by contract, law or arbitration 3. Competitive Bidding : goods/services required by public authorities are acquired at the lowest possible cost 4. Budget fixed by referendum…financed by Bonds - Private Owners : not subject to such regulations, but do have 1. Consumer protection laws (Fla Condo Act & Lien Law) 2. Biggest Difference: private owner can select its DP & GC by competitive bid or negotiation, & select any method for contracting and payment system 3. Financed by lenders - Owner’s Project Perspective 1. Owner does Market Study (feasibility), then goes to DP 2. DP (engineer or architect) prepares Plans (graphic depictions of what the project will look like and how to build it) & Specs (Contract Documents, describe materials, criteria, standards, codes, how-to build) 2. Owner solicits bids from a GC, selects lowest responsible bidder 3. Throughout, owner should review/limit the obligations imposed upon it to those it is capable of undertaking - Owner Obligations : 1. Give timely info regarding requirements/limits on project 2. Periodically update the budget 3. Render timely decisions on documents submitted by architect 4. Furnish services of consultants 5. Furnish tests, inspections, and reports required by law 6. Provide prompt written notice to architect if owner becomes aware of any fault or defect in the project 7. Owner should provide the architect with legal information concerning ownership of the project, location and use of the site, realistic budget - Owner Concerns : cost, time and function/purpose of the project (may change in relative priority depending on the project) documents -Owners typically include Lien Waiver Provisions in construction
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Downloaded From 2 1. e n s u r e p r o p e r t y w i l l n o t b e e n c u m b e r e d b y l i e n s 2. in most states, lien waivers entered into before signing the contract are unenforceable b. Construction Lender : lending institutions or private lenders usually provide most, if not all of the funding -Lender may disperse payment to the owner or directly to the contractor -Must comply with Florida Statutes and Florida Construction Lien Law - Construction Lenders fill in the short-term credit need of owners (when the project finished, lender is repaid from the proceeds of the Permanent Mortgage Loan)
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