Contracts

Owner-furnished equipment on the job

By Scavi Company · · 3 min read
Owner-furnished equipment on the job

Owners often buy some equipment directly and ask the contractor to install it. Without clear rules, those items become delays and disputes.

What it means

Owner-furnished items are bought by the owner. Some are installed by the contractor, others by the owner's own vendors.

Define the scope

List every owner-furnished item in the contract and who receives, stores, installs and connects it.

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Delivery dates

Late owner items delay your schedule. Put required delivery dates in the schedule and the contract.

Receiving

Decide who inspects the item on arrival and how damage is documented.

Storage

Who pays for storage and who is responsible for theft or damage on site.

Installation information

Ask early for specifications, weights, utility needs and installation manuals.

Warranty

The manufacturer's warranty usually stays with the owner. Your warranty covers your installation.

Schedule risk

Track owner items in look-ahead meetings like any other long-lead item.

Example

A contractor on a restaurant job listed all owner kitchen equipment with delivery dates in the schedule. When the hood arrived late, the delay was documented and the time extension was granted.

Common mistakes

Vague scope, no delivery dates and accepting damaged items without notes.

Getting started

Ask the owner for a complete list of owner-furnished items at the preconstruction meeting. Add each one to the schedule with a required delivery date and assign a person to receive and document every delivery.

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Frequently asked questions

Who is responsible for owner-furnished equipment?

It depends on the contract. Usually the owner is responsible for buying and delivering the item and its warranty, and the contractor for installing it, but receiving, storage and damage must be clearly defined.