The customer in construction is Definition, responsibilities and functions

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The current role of the customer as a figure of a certain type in construction is regulated by regulatory documents. The customer in construction is the person who manages the process. According to the characteristic features of the activity and functions, it can be equated to a developer, and in terms of the amount of work performed - to an investor or general contractor. The Civil Code has a special provision on the customer during construction, which sets out in detail the target tasks of the authorized person, as well as the pen alties provided for in violation of the law.

The term and its definition

The customer can be both a legal entity and an individual, to whom investors have given authority to implement the project. The customer in construction is the entity that manages the construction entrusted to him.

The activities of contractors and relations between all interested parties are organized by the customer. He can act on behalf of the investor, and on behalf of the developer. The work is aimed at fulfilling all items of project documentation, regulating the progress of construction, as well as engineering pen alties.

Investor-customer relations

The functions of the customer in construction can be performed by the one who invests in construction, and the one who acts as a customer. These two definitions can be identified or separated. Investors are people who attract their own or other people's money to the project. It is this factor that is the key difference between the concepts of the customer and the investor. Those who act as a hired person and in the course of the project are given the authority to manage the construction. At the same time, they are vested with the rights to own capital investments and use them during the term of authority, which is prescribed in the contract. When the terms of the agreement are violated by the investor, the customer has the right to suspend the fulfillment of the assigned obligations.

Powers from the developer

For the period of implementation of the construction project, the developer has a certain responsibility on the part of the customer. All obligations are specified in the contract. The role of the customer and the developer can be performed by one person. In order for the combined functions of the customer in construction to be documented, the customer must be a legal entity, have the right of ownership or be a tenant of a land plot. And also have the authority to make decisions on the implementation of the construction program. This is the only way to get permission for:

• construction;
• commissioning of the building;
• registration of ownership.

According to the Civil Code, one of the main requirements for customers for the construction of facilities is the timely provision of a land plot.

Business relationship with designer

The customer is a person who intends to carry out the construction or restoration work of a particular architectural object. In this case, he needs to have a project executed according to the architectural and planning assignment by a licensed architect. The customer can contact a specific specialist or announce the selection of designers with the definition of technical specifications. He must conclude an agreement with the general designer, whose task is to subsequently attract subcontractors. It is noteworthy that the issues of obtaining approval and other related permits for surveys and design work are the responsibility of the customer.

Customer and contractor in construction

Conclusion of a contract with a general contractor to perform construction work is not a rare planned action by the customer, which requires him to control subcontractors. Such a generally accepted scheme does not always satisfy the customer due to the fact that he initially does not have the necessary information about who will be involved in the construction as a result - there can be many subcontractors. To reduce the likelihood of such ignorance,the contract with the general contractor prescribes in a separate clause that he must personally perform the key and most basic work (indicated by the transfer). Thus, the general contractor does not have the right to transfer a significant part of the construction work to the subcontractor.

In practice, non-compliance with deadlines for even seemingly insignificant work can disrupt the schedule. Often, in order to be sure of the general contractor, the customer for the construction of houses coordinates the lists of subcontractors. With this approach, he initially approves the subcontractors in writing.

This can happen:

1. Integrated: when bidding, the general contractor provides a list of subcontractors who will work on the project. Thus, the customer is initially aware of who will carry out the work, and makes an informed choice.
2. Localized: during the work, potential candidates for the post of subcontractor are agreed.

When choosing the second option, it is recommended to deal with the approval of the subcontractor before signing the contract. If this has not been done, the customer is not responsible for the unilateral refusal by the general contractor to work with the subcontractor, and all responsibility will fall on the lead contractor.

Invite a subcontractor directly

A customer in construction is a person who has the right to engage a subcontractor, bypassing the general contractor. Agreements can be signed for the performance of specific works. With such a development of relations, the parties bearresponsibility to each other for compliance with all clauses of the contract, including direct payment. But not every construction can take place in this way. Some projects have their own specifics, which do not allow deviating from the generally accepted "classic" format of relationships between the customer, the general contractor and the subcontractor.

The role of the customer in the supply of equipment

Working as a customer in construction is building the right and mutually beneficial relationships with suppliers. Previously, they resorted to standard relationship patterns, now, with the development of technology, the increase in certain needs and the level of requirements, 2 models are common:

1. Narrow, in which the customer is associated only with equipment suppliers. Those who supply inventory items, structures and raw materials sign a contract with contractors directly.
2. Extended - represents a relationship when the customer can partially decide on the purchase of raw materials and materials for construction. In such cases, suppliers work directly with the customer, subcontractors and the general contractor.

In both situations, the Civil Code en titles the private and public construction customer to control the quality of materials purchased by the contractor. Such a process requires complex coordination of actions, but as a result, constant supervision and signed sales contracts with suppliers, which spell out all the possible nuances of the relationship,contribute to the completion of construction work on time.

Customer Responsibilities

In order for all stages of the construction process to proceed without failures, it is necessary to have an idea of the functions of the technical customer in construction, which are formed depending on the stages of the work being carried out:

1. Preliminary design preparation. It includes developing a business plan, agreeing and obtaining all necessary permits, processing available data to generate project documentation, holding tenders, signing contracts with subcontractors, resolving issues with investors, analyzing risks and choosing an insurance company.



2. Preparation of all the necessary components of the construction site. This may include the selection of a territory for the construction of a building, obtaining permission from the relevant authorities, the formation of documentation, the coordination of resources and communications, the selection of responsible persons, the creation of a geodetic base, the breakdown of routes, the organization of a special place for the export and import of soil, negotiations on the demolition of an existing dilapidated building on the considered site, calculation of the residual value, control over the condition of buildings located near the potential structure.
3. Control over the construction process. This is the approval of responsible persons and authorized organizations on behalf of the customer, who will carry out quality control of equipment, structures, materials. Only approved and recorded persons can suspend construction, carry out workhigh-risk, take on the balance of the building, materials, approve work schedules, conserve the facility, deal with the documentation of the commissioning of the facility, control the availability of licenses and certificates from contractors.

The customer in construction is an authorized person who is responsible to the investor not only for compliance with all documentation, but also for the timely commissioning of the facility.

Finance accounting

In the construction process, we must not forget about the accounting side, which is the opening of a bank account, analysis of invested funds, control over payment terms (interim, compensatory, bonus, advance and other forms of calculation), operational and statistical accounting, comparison invested funds and costs, organizing an audit and reporting to investors.

In this process, the client's capital management responsibilities are project-specific and documented in agreements.

In the work of the customer, it is important to separate the roles of the performer and the controller, as well as to observe all public and unspoken rights and functions.

List of powers

Customer is en titled to:

• defending the interests of the investor in government agencies and private, as well as other supervisory services;
• appearing in court as a plaintiff or defendant on behalf of an investor;
• obtaining a conclusion on compliance with building standards;
• taking the construction order forgovernment and commercial needs;
• selection of contractors and subcontractors, conclusion of an agreement with them;
• disposal of finances and resources allocated by the investor;
• approval of working documentation;
• approval of the estimate, taking into account costing;
• monitoring the quality control of used equipment, materials, structures;
• making a decision on the compliance of the finished structure with all norms and requirements;
• acceptance of the facility and putting it into operation;
• transfer of the completed object to the investor;
• making a decision on the conservation of construction;
• control of the construction process, the activities of the contractor and the supplier.

Quality control

A customer in construction is a person who pursues 2 tasks in his work:

1. Fulfillment of TOR based on their technical documentation.
2. Preventing the qualification of the future structure as unauthorized construction.

The customer must monitor the possible mistakes of the contractor and point out to him the shortcomings found. Otherwise, in the future, he is deprived of the right to refer to these shortcomings in controversial issues.

The customer is the manager of the construction process. He can act both as an investor and also as a contractor. In order to avoid questions about the observance of all rights and obligations, it is recommended that everything be documented in contracts and agreements.