Owner’s Representative’s Potential Liability for Defects, Delays, and Damages
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This article describes the potential scope of work and roles and responsibilities of the owner’s representative (OR) during the construction phase, discusses specific risks accepted by the OR under full-scope OR agreements, and identifies events that could trigger potential liability for damages due to resulting defects or delays from the performance of OR services.
The Role of the Owner’s Representative
The need for an OR often arises when an owner does not have staff with relevant experience or availability to manage the owner’s responsibilities or when an owner decides to transfer key owner contractual risks to its OR. Thus, the typical owner responsibilities can be generally limited to making timely decisions, providing timely information, making timely payments, and providing liability insurance coverage. The OR provides the professional skills and services that supplement the owner’s staff to manage almost all of the remaining owner’s responsibilities under a construction contract. While OR services can extend across the full spectrum of project development, design, construction, commissioning, and operations and maintenance, this article is limited to construction phase responsibilities.
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