The prime contract establishes scope, price, schedule, and the administrative framework governing the project. Multi-prime delivery involves several contractors holding separate prime contracts with the owner.
Subcontracts flow down prime contract terms.
Alternative Names:
Prime Agreement|Owner-Contractor Agreement
Why it Matters?
Multi-prime delivery shifts coordination risk to the owner, since no single contractor is responsible for sequencing among the primes and delays by one affect others without a contractual remedy between them. Owners adopting multi-prime for cost reasons frequently absorb that coordination exposure without recognizing it. Contractual provisions requiring cooperation among primes and allocating delay responsibility are what address the gap.
Frequently Confused with
Related terms
Frequently asked questions
What risk does multi-prime delivery create?
How is the gap addressed?
