Why Owners Should Oversee Construction Subcontracts

Law360 (December 3, 2019, 5:16 PM EST) -- This article explains why owners should participate actively in the development of subcontracts under a construction management agreement.[1] Owners often pay too little attention to this part of the subcontracting process and yield too much control to the construction manager.

While this conduct is more prevalent where the construction manager is acting as the principal under the subcontracts, not as the agent of the owner, or is otherwise assuming certain cost, schedule or other risks related to the subcontractors’ performance, the owner’s lax attitude will sometimes also surface when the owner is the named principal under the subcontract. This attitude can...

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