Skip to main content


The full text article is not available for purchase.

The publisher only permits individual articles to be downloaded by subscribers.

or click here to sign up for a free trial


Owner-furnished equipment is a common practice on large private and Public Works projects where an owner purchases process equipment directly from a supplier and provides them as “Owner-Furnished Equipment (OFE)” to be installed by the contractor. This practice can result in measurable savings since Public Works owners are exempt form paying sales taxes on equipment purchases. Advantages also include allowing owners to negotiate lower prices directly with suppliers, thus avoiding paying additional overhead and profits if the contractor provides the equipment. Despite the perceived advantages of OFE, this practice carries technical and contractual risks and can result in disputes and construction claims. Risks include poor integration of the OFE with the contract, limited coordination by the contractor, inadequate warranty, and performance risks. These risks are often the source of delay claims, extended overhead claims, different site condition (DSC) claims, impact claims, change orders, and litigation. The costs of settling these claims often exceed and offset the derived savings of OFE procurement.

Document Type: Research Article


Publication date: January 1, 2005

More about this publication?
  • Proceedings of the Water Environment Federation is an archive of papers published in the proceedings of the annual Water Environment Federation® Technical Exhibition and Conference (WEFTEC® ) and specialty conferences held since the year 2000. These proceedings are not peer reviewed.

    WEF Members: Sign in (right panel) with your IngentaConnect user name and password to receive complimentary access.
  • Subscribe to this Title
  • Membership Information
  • About WEF Proceedings
  • WEFTEC Conference Information
  • Ingenta Connect is not responsible for the content or availability of external websites

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more