Prefabrication continues to grow in usage and impact. It is a hybrid of construction and manufacturing. Also, prefabrication includes on-site and off-site performance requirements. As such, several interesting legal issues arise that must be addressed contractually. Consequently, ConsensusDocs has just published the .
The ConsensusDocs 253 is based upon the risk allocation principles in the . This new document empowers an Owner to contract directly with the Prefabricator with an off-the-shelf best practices standard agreement. The agreement presumes the most common type of prefabrication, in which a prefabricated component is made off-site at the prefabricator’s site, and then, that component is delivered and installed at the worksite. Some highlights include:
- Establishes industry standard definitions for Fabrication Site, a prefabricated Component, and a prefabricated Storage Area;
- Guides users to delineate work to be performed off-site versus at the worksite in an exhibit;
- Specifies adequate storage areas that must be provided for prefabricated components;
- Requires three days’ advanced notice for inspections of the Prefabricator’s site to protect sensitive proprietary information (§9.6);
- Recognizes that a Prefabricator’s fabrication methods and methods may be confidential (§3.22 and §9.6);
- Addresses warranty issues when a Prefabricator acts as a manufacturer versus providing other materials and equipment that are incorporated in the Work (§3.8);
- Addresses several scenarios regarding the risk of loss of a prefabricated component during different stages of transportation and delivery (§3.10); and
- Provides an option to require an upfront payment to account for the large capital outlays needed to make for prefabricated components (§9.1).