Owner‐Furnished Equipment (OFE) Contract Practices

Abstract

Owner‐furnished Equipment (OFE) procurement is a contract administration technique utilized on many construction projects to save costs and time. Presently, little is known factually about the specific tactics that contribute to a successful OFE procurement, or what the magnitude of those benefits may be. This article presents the results of a comprehensive research study of OFE practices, problems, and benefits. Fifty‐five OFE construction projects are analyzed, allowing a series of conclusions and recommendations to be developed. The major points examined include: characteristics of typical OFE projects and products; the quantified extent of project benefits and costs realized; the likelihood and consequences of related contract disputes; effective contract monitoring strategies; and whether owners or third‐party contract administrators should manage the supply contract.