Who Pays for the Unexpected in Construction?—Owner as Engineer's Point of View

by Daniel L. Redmond, Jr., Claridge House I, Verona, United States,

Document Type: Proceeding Paper

Part of: Preparing for Construction in the 21st Century


In the case of an unexpected discovery or development, it potentially may evolve into a three-cornered dispute among the Owner, Engineer, and Contractor. Frequently, it may become a two-sided dispute, with the Engineer siding with the Owner, by whom he was initially engaged. The least desirable alternative is litigation, while the most desirable one is equity without having to go to court. Examples are quoted how contracts have been drawn up so as to minimize disputes and still protect the interest of the Owner. Some of the points discussed are: providing full disclosure of information; disparity between bid documents and actual conditions; early recognition of problems and early solution, if possible; fair treatment by both sides; no outrageous contingencies by Contractors; Contractor effort concentrated on construction; cooperation and fair treatmenmt by owner benefit owner.

Subject Headings: Construction management | Case studies | High-rise buildings | Bids | Team building | Construction industry | Contracts | Construction costs

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