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 managing the process. According to the characteristic features of the activity and functions, it can be equated to the developer, and in terms of the volume of work performed - to the investor or general contractor. The Civil Code has a special provision on the customer during construction, which details the target tasks of the authorized person, as well as the penalties 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 the authority to implement the project. A customer in construction is an entity managing the construction entrusted to him.
The activities of contractors and the relations between all interested parties are organized by the customer. It can act on behalf of the investor, and on behalf of the developer. The work is aimed at fulfilling all points of project documentation, regulating the progress of construction, as well as engineering penalties.
Relations between investor and customer
The functions of the customer in construction can be performed by the one who invests in construction, and the one who acts as the customer. These two definitions can be identified or shared. Investors are people who attract their own or other people's money into a project. This factor is the key difference between the concepts of customer and investor. Those who act as a hired person and in the process of project implementation receive the authority to manage construction. At the same time, they are vested with the rights to own capital investments and use them during the term of their powers, which is prescribed in the contract. When the clauses of the agreement are violated by the investor, the customer has the right to suspend the fulfillment of his obligations.
Credentials from the developer
For the period of the construction project implementation, the builder has a certain responsibility on the part of the customer. All duties 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 to own or be a tenant of the land. And also have the authority to make decisions on the implementation of the construction program. This is the only way to obtain permission to:
- construction;
- putting the building into operation;
- registration of ownership.
According to the Civil Code, one of the basic requirements for customers for the construction of facilities is the timely provision of a land plot.
Business relationship with the designer
The customer is a person who intends to carry out construction or restoration work of a particular architectural object. In this case, he needs to have a project executed according to the architectural-planning assignment by an architect who has a license. The customer can contact a specific specialist or announce the selection of designers with the definition of technical specifications. He must conclude a contract with the general designer, whose task is subsequently to attract subcontractors. It is noteworthy that the issues of obtaining approval and other related permissions for surveys and design work are the responsibility of the customer.
Customer and contractor in construction
The conclusion of a contract with the general contractor for construction work is not a rare planned action by the customer, which requires him to have concomitant control over the 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 an ignorance, a separate clause is prescribed in the contract with the general contractor that he must carry out the key and most basic work (indicated by listing) personally. Thus, the general contractor does not have the right to transfer to the subcontractor a significant part of the construction work.
In practice, non-observance of the deadlines for even seemingly insignificant work may violate the schedule. Often, in order to be sure of the general contractor, the homebuilder coordinates the lists of subcontractors. With this approach, he initially approves the subcontractors in writing.
This can happen:
- Comprehensive: putting forward his candidacy for 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.
- Localized: during the work, potential candidates for the post of subcontractor are agreed.
When choosing the second option, it is recommended that you approve 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 rest with the lead contractor.
Subcontractor invitation directly
A customer in construction is a person who has the right to attract a subcontractor to bypass the general contractor. Agreements can be signed for specific work. With this development of relations, the parties are responsible to each other for compliance with all clauses of the contract, including payment directly. But not every construction can take place in this way. Some projects have their own specifics, which does not allow departing from the generally accepted "classic" format of relations between the customer, general contractor and 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, resorted to standard relationships, now, with the development of technology, the growth of certain needs and level of requirements, 2 models are common:
- Narrow, in which the customer is associated only with suppliers of equipment. Those who supply inventory, structures and raw materials sign a contract with contractors directly.
- Expanded - is a relationship where the customer can partially decide on the purchase of raw materials for construction. In such cases, suppliers work directly with the customer, subcontractors and general contractors.
In both situations, the Civil Code gives the right to a private and public construction contractor to control the quality of materials purchased by the contractor. Such a process requires complex coordination of actions, but as a result of constant supervision and signed sales contracts with suppliers, where all possible nuances of relationships are written, they will contribute to the implementation of construction work on time.
Customer Responsibilities
In order for all stages of the construction process to go smoothly, you must have an idea of the functions of the technical customer in construction, which are formed depending on the stages of the work:
- Preliminary project preparation. It includes the development of a business plan, coordination and obtaining all necessary permits, processing of available data for the formation of project documentation, tendering, signing contracts with subcontractors, resolving issues with investors, risk analysis and choosing an insurance company.
- Preparation of all necessary components of the construction site. This may include the selection of the territory for the construction of the building, obtaining permission from the relevant authorities, the formation of documentation, coordination of resources and communications, the selection of responsible persons, the creation of a geodetic base, the breakdown of roads, the organization of a special place for the removal and delivery of soil, negotiations on the demolition of an existing dilapidated building under consideration site, calculation of residual value, control over the condition of buildings located next to a potential structure.
- Control over the construction process. This is a statement of responsible persons and authorized organizations on behalf of the customer, who will monitor the quality of equipment, structures, materials. Only authorized and written fixed persons can suspend construction, carry out work of increased danger, take the building, materials onto balance, approve work schedules, preserve the facility, deal with the documentation of commissioning of the construction, control the availability of licenses and certificates for contractors.
A 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 construction.
Accounting finance
In the construction process, one should not forget about the accounting side, which is opening a bank account, analyzing invested funds, controlling the timing of payments (interim, compensation, bonus, advance and other forms of calculation), maintaining operational and statistical accounting, comparing invested funds and costs, organization of audit and reporting to investors.
In this process, the responsibilities of managing the customer for capital construction are determined by a specific project and are documented in the agreements.
In the work of the customer, it is important to separate the roles of the contractor and the controller, as well as to comply with all public and unwritten rights and functions.
The list of powers
The customer has the right to:
- upholding the interests of the investor in state bodies and private, as well as other supervisory services;
- appearance in court by the plaintiff or defendant on behalf of the investor;
- obtaining a conclusion on compliance with the norms of the structure;
- taking an order for construction for state 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 estimates taking into account costing;
- monitoring the quality control of equipment, materials, structures;
- decision-making on the compliance of the finished structure with all standards and requirements;
- acceptance of the facility and its commissioning;
- transfer of the completed object to the investor;
- making decisions on the conservation of construction;
- control of the construction process, the activities of the contractor and supplier.
Quality control
A customer in construction is a person who pursues 2 tasks in his work:
- Implementation of TK, based on their technical documentation.
- Prevention of qualification of the future structure as an unauthorized building.
The customer must monitor the possible mistakes of the contractor and indicate to him the deficiencies found. Otherwise, in the future he will lose the right to refer to these shortcomings in contentious issues.
The customer is the manager of the construction process. He can act simultaneously as an investor, as well as as a contractor. In order not to raise questions on the observance of all rights and obligations, it is recommended to document everything in contracts and agreements.