The traditional structure of contracting involves, fundamentally, an idea by an owner that is then designed, then bid and finally built; all done according to a defined model.
This model involves the typical roles of owner, design professional, prime contractor, subcontractors, and suppliers. Click on each tab below to learn more about each entity.
Who is the project for? Could be either a public or private entity.
Depending on the type of project this role could be filled by an architect or engineering firm. Contracts with the owner.
The prime contractor that directly contracts with the owner.
Typically provides a service within a specific industry (e.g. structural steel erector, plumbing, electrical etc.). Contract is not with the owner. Special liens rights considerations and procedures.
Provides material as opposed to a service. Contract typically governed by Uniform Commercial Code. Special lien rights considerations and procedures.
Why does the contracting method matter? An important distinction of the traditional contracting method is that it prevents privity of contract between the contractor and the design entity. Basically, each respective entity’s contract is with the owner, therefore, the contractor typically cannot sue the design entity for breach of contract because there is no contractual relationship with the design entity.
For more information on Alabama Construction Law, contact Alan Duke