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Construction Engineering 380 Chapter 13 Owner Obligations.

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Presentation on theme: "Construction Engineering 380 Chapter 13 Owner Obligations."— Presentation transcript:

1 Construction Engineering 380 Chapter 13 Owner Obligations

2 Fee structure is determined by the project needs A variety of compensation methods are legally valid Cost and time methods –Multiple of direct salary expense –Multiple of direct personnel expense –Professional fee plus expense –Hourly rates

3 Owner Obligations Project attribute methods –Fixed sum –Percentage of total project cost –Multiple of billings –Square footage –Unit cost –Royalty

4 Owner Obligations Additional services and reimbursables can add to fee basis Compensation (fee) should be based on risk, owner attitudes, and technical difficulty Payment schedules are articulated in the contract: – interim –packages –monthly –late

5 Owner Obligations Failure to perform is usually considered a material breach and cause for damage recovery Prevention or hindrance (owner won’t answer questions required to complete design) does not prevent recovery Unjust enrichment and forfeiture are well- established legally (process is clear)

6 Owner Obligations Procedure for completion of design in alternative delivery or fast-track is not as clear –Financial exigency –Bankruptcy –Repudiation –Unwillingness or inability to perform (death of a partner)


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