What Does OFCI Mean In Construction

By Bella Sungkawa | Published: | Construction | 2 min read

Short Answer

In construction contracts, OFCI stands for Owner Furnished, Contractor Installed. It designates items supplied by the owner but installed by the contractor, outlining shared responsibilities.

Complete Explanation

OFCI is an abbreviation used in construction specifications and contracts to indicate that a particular item or system will be supplied by the project owner but the installation work will be performed by the contractor. This arrangement clarifies procurement responsibilities, cost allocation, and coordination requirements between the parties.

  • Definition:
    Owner Furnished, Contractor Installed – the owner provides the material or equipment, and the contractor installs it on site.
  • Typical Items:
    Specialty equipment (e.g., elevators, HVAC units), custom fabrications, and high‑value components that the owner prefers to source directly.
  • Contractual Allocation:
    The contract’s scope of work and specifications specify OFCI items, assigning procurement to the owner and labor to the contractor.
  • Benefits:
    Allows owners to control product selection and pricing while leveraging the contractor’s expertise for installation.
  • Potential Risks:
    Mis‑timing of deliveries, mismatched specifications, or unclear responsibility can cause delays if coordination is insufficient.

Common Misconceptions

Myth

OFCI means the contractor has no responsibility for the item.

Fact

The contractor remains fully responsible for proper installation, testing, and integration of the owner‑supplied item.

Myth

OFCI items are always cheaper for the owner.

Fact

While owners may secure preferred pricing, overall project cost can increase if coordination or re‑work is required.

FAQ

How is an OFCI item listed in a contract?

OFCI items are typically identified in the specifications section with a notation such as “Owner Furnished, Contractor Installed (OFCI)” and are cross‑referenced in the Bill of Quantities or Schedule of Equipment.

Who bears the risk if an OFCI item is damaged during installation?

Risk allocation is defined in the contract; generally, the contractor is responsible for damage occurring during installation, while the owner bears risk before delivery.

Can an OFCI item be changed after contract award?

Changes to OFCI items usually require a formal contract amendment or change order, as they affect both procurement (owner) and installation (contractor) schedules.

References

  1. Construction Specification Institute (CSI). 2020. MasterFormat 2020 Edition.
  2. American Institute of Architects (AIA). AIA Document B101-2017, Standard Form of Agreement Between Owner and Contractor.
  3. Project Management Institute (PMI). 2017. A Guide to the Project Management Body of Knowledge (PMBOK® Guide).
  4. Construction Industry Board (CIB). 2019. Glossary of Construction Terms.
  5. National Association of Home Builders (NAHB). 2021. Residential Construction Handbook.

Related Terms

Owner Furnished Equipment (OFE)
Equipment purchased and supplied by the owner, without specifying who installs it.
Contractor Installed Equipment (CIE)
Equipment that the contractor both supplies and installs under the contract.
Scope of Work
A document defining the tasks, deliverables, and responsibilities of each party in a construction project.

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