Chapter 26 - § 26.7 • WHO PERFORMS THE WORK?

• Jurisdiction: Colorado

§ 26.7 • WHO PERFORMS THE WORK?

Work letters usually specify whether the landlord or the tenant is to do the work. The decision regarding which party will do the work largely depends on the experience and capabilities of the parties in doing the work and economic efficiency. In many buildings, the landlord will insist that it do the work — or, at least, that its contractors do the work. If the landlord does not require that its contractors perform all the work, it may provide that its contractors perform the work on specific items that affect the building systems (especially the HVAC, the life safety systems, and any work on the roof). The reason for this is that the landlord knows the building and its systems, and it does not want someone who is unfamiliar with the building doing work that could adversely affect the building or its systems. The landlord also wants to keep control over the quality of the construction in the building and avoid disputes over existing conditions that might become claims for payment above the bid or contract amount. It also wants to reduce the likelihood of mechanics' lien problems with subcontractors (because the landlord can financially qualify the contractor). Having one contractor for the work also prevents "finger pointing" between the two contractors if something is not done properly.

§ 26.7.1—If the Landlord Does the Work

If the landlord does the work, it may be able to do the work at a lower cost than the tenant because the landlord has contractors who are familiar with the building. The tenant may not believe that the landlord can do the work less expensively, so the tenant may want to control the construction process so it can control costs. This is particularly true, since it is in the landlord's interest to get the work done as quickly, and not necessarily as cheaply, as possible, so that it can start collecting rent. Plus, it is always easier to spend someone else's money than one's own. The tenant also loses some measure of control over the construction schedule when the landlord does the work, so the specified date for completion, and the events that excuse the landlord from meeting it, become more important. If the landlord performs the work, the tenant will want:

• The right to inspect construction as it progresses;
• The right to register complaints or make objections for nonconformity with the plans and specifications;
• To avoid any negative consequences if the work is not performed on time (e.g., an

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