CHAPTER TWO
RESPONSIBILITY AND
AUTHORITY
THE RESIDENT PROJECT
REPRESENTATIVE AND
INSPECTORS AS MEMBERS
OF THE CONSTRUCTION
TEAM
The effective management of a construction operation can be
achieved only through a well-coordinated team effort. The
Resident Project Representative and the inspectors are vital
members of that team, for without them there would normally
be no direct involvement in the construction of the project by
the architect/engineer or the owner. The Resident Project
Representative and the inspectors are the eyes and the ears of
the architect or engineer and the owner. Their authority and
responsibility on the project is largely based upon that con-
cept. To be sure, one architect or engineer may delegate more
or less authority to the Resident Project Representative or
inspector than another architect or engineer; however, that is a
matter of employeremployee relations between the Resident
Project Representative or inspector and his or her employer.
In addition, many federal construction contracts require a
resident inspector in the employ of the contractor under the
principle of contractor quality control (CQC). Generally, in the
absence of specific instructions to the contrary, the guide-
lines in this chapter are considered by many members of the
construction industry to be the normal standards.
LINES OF AUTHORITY ON
CONSTRUCTION PROJECTS
Almost all construction projects involve organizations.
The participantsowner, contractor, subcontractors, and
suppliersare not individuals. They are corporations, part-
nerships, or other forms of business associations.
Organizational decision making can be ponderous. Yet
decisions and approvals are required on a daily basis during
the performance of a construction contract. It is obvious that
each organization must establish lines of authority by desig-
nating the individuals who are authorized to make necessary
decisions (see The One-to-One Concept in Chapter 1). If
this is done in a careful, thoughtful manner, the project will
benefit. If it is done in a haphazard manner, the likelihood of
misunderstandings and disputes will increase.
Agency Relationship
An agency relationship is established when one party, such
as the owner or architect/engineer, designates another party,
such as a Resident Project Representative or inspector (the
agent), to act on its behalf. Once the agency relationship is
established, the owner or architect/engineer is bound by the
acts and omissions of its Resident Project Representative or
inspector, as its agent. If on-site representatives are not des-
ignated and given the authority that they need, communica-
tion will break down and confusion will result. There will
also be some unanticipated legal ramifications.
Actual Authority
The most common way for an agency relationship to be
established is by an express grant of actual authority. The
contract documents simply state that a particular individual
shall have the authority to make certain decisions. On public
construction projects, the existence of actual authority is
important because statutes protect public agencies against
acts or decisions of unauthorized individuals.
Apparent Authority
An agency relationship can also be created when the owner
or architect/engineer allows another party to operate with
the appearance of authority to act on behalf of the owner or
architect/engineer. The contractors who reasonably believe
that they are dealing with a duly authorized agent will be
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