Pros of a Construct Only Contract
Cost Control: One significant advantage of a construct-only contract is the ability to exercise greater control over costs. With this arrangement, the project owner assumes responsibility for the design and planning stages, allowing for a fixed budget. Contractors, in turn, focus solely on construction activities, limiting the potential for unforeseen design changes and cost escalations.
Specialised Expertise: By employing a construct-only contract, project owners can benefit from the specialised expertise of contractors. These professionals bring years of experience and technical know-how to the table, ensuring that construction work is executed efficiently, accurately, and in compliance with applicable regulations.
Flexibility: Construct-only contracts provide flexibility in terms of project customisation and modification. As the project owner retains design authority, they can easily adjust plans and specifications during construction without renegotiating design contracts. This flexibility allows for adaptability to changing circumstances or emerging requirements.
Clear Responsibilities: In a construct-only contract, the division of responsibilities is clear. Project owners are responsible for the design, permits, and procurement of materials, while contractors are solely accountable for executing the construction work. This clarity helps minimize confusion and potential disputes between parties.
Cons of a Construct Only Contract
Increased Owner's Liability: By assuming responsibility for design and planning, project owners also assume greater liability for any design errors or omissions. Should any issues arise during construction due to design flaws, the burden falls on the owner to rectify them. This liability can lead to additional costs and potential legal disputes.
Limited Contractor Involvement: In a construct-only contract, contractors are brought into the project at a later stage, limiting their involvement in the initial design and planning processes. This may result in missed opportunities for contractors to contribute their expertise and suggest improvements or cost-saving measures.
Less Collaborative Approach: The construct-only approach can sometimes foster a less collaborative environment between project owners and contractors. With limited contractor involvement in design decisions, the synergy between design and construction may suffer. Close collaboration between both parties is essential to ensure the project's success.