The construction contract documents’ prime purpose is to clearly delineate the roles and responsibilities of the owner, engineer and contractor on a rural or regional water system project. While the existence of a contract, in one form or another, is common to all construction, there is an astonishingly wide variety of types of contracts and contract documents used.  Therefore, types of contracts are often dictated by the agency funding selected for the project. The most familiar type of contract is the traditional design-bid-build arrangement, wherein an owner retains the services of a professional engineering firm to act as the owner's agent in designing the new facilities, preparing construction contract documents (drawings, specifications, and the like), advertising for bids, opening bids at a predetermined time, reviewing the bids and recommending to the owner the apparent best bidder to whom the contract should be awarded, and performing certain limited tasks during construction.   USDA Rural Development, for example, uses documents based on the Engineering Joint Contract Documents Committee (EJCDC).  The EJCDC documents incorporate a coordinated family of documents related to the project construction, including contracts between the owner and the contractor, and the owner and the engineer.   In those documents, the specific roles of project owner, engineer and contractor are detailed as part of the legal agreement.  As such, the owner's attorney should review those documents.

A variety of areas are addressed in the contract and front end documents, from advertising for bids and bidder information to insurance forms, performance and payment bonds, and standard conditions or the general conditions of the construction contract.  These documents outline the duties and responsibilities of each member of the construction project team—owner, engineer, and contractor.

But while each contract is different, some common practices apply. Generally, the owner provides the land and easements needed to successfully complete the project. The owner is also responsible for securing any necessary permits. The owner retains the authority to grant change orders, which are typically requested either by the contractor or owner and reviewed, prepared, and recommended by the engineer. It is the owner’s responsibility to approve or disapprove change orders as needed in a timely fashion, and of course to issue monthly progress payments within the time provided by the contract until the project is complete and final payment is made.

The engineer on the project plays a key role on behalf of the owner in the implementation of the contract. Generally, the engineer interprets contract documents and the intent of the plans and specifications when questions arise, clarifying any issues and answering any questions regarding the design of the project. The engineer is charged with determining acceptability of the work, and serves as the owner’s representative at the job site, reviewing all changes to work before recommending change orders. The engineer also prepares or reviews and recommends pay estimates, handles day-to-day correspondence with the contractor, and reviews shop drawings. The engineer is also responsible for periodic site visits to the project, and depending on the contract with the owner, provides daily construction observation. In short, the engineer serves as a trusted advisor and representative of the client in the construction of the project.

The contractor is the member of the project team that is responsible for the construction of the project. The contractor's responsibilities include scheduling and supervising all construction activity—including means, methods and implementation. The contractor is required to perform all work to design specifications, and is also responsible to see that all subcontracted work is also completed according to the design plans and specs. As such, the contractor is ultimately responsible for the schedule, work environment, protection of property, and quality of the work. Importantly, the contractor is also in charge of safety on the site, and the engineer and the owner are to conform to the contractor's safety plans while on the project.

By far the most crucial aspect of a construction project is communication. Communication during a construction project includes not only the contract documents, specifications, and plans, but also all spoken and written communication of each party during the construction process.  Communication is used by the engineer/owner to clearly portray to a wide variety of people just what they want constructed and to what standard they want it constructed. Bidders communicate their inquiries to the engineer/owner in the form of questions during the bidding process and the engineer/owner communicate their answers in the form of addenda.  At the time of award and contract execution, the owner and the contractor each communicate their acceptance of terms of an agreement by signing the appropriate documents. Communication continues throughout the construction process as a means of informing, coordinating, and moving the project forward.  When communication suffers, typically the project suffers and problems arise.  It is important to keep all parties to the contract informed and on task with their responsibilities.

It is important that neither the engineer nor the owner crosses the line that separates them from the contractor in terms of responsibility. Serious liability issues can result, particularly if there is interference by the Owner or Engineer with the contractor's means and methods.  If the Owner or the Engineer cross the line and interfere with the Contractor’s responsibilities including selection of means and methods, this may give the Contractor grounds for making a successful claim against the Owner.  This can also pertain to scheduling of the project unless it is something specifically addressed in the construction contract.  In general, if the Owner or Engineer direct the contractor’s personnel in the methods used for the work they may be placing the Owner in a position of defending a claim.  Either may make suggestions or recommendations but they should not specifically direct the contractor’s personnel in the way the work is performed.  The crucial item for the Owner and the Engineer is the quality of the completed work.