Which party holds all of the liability for a performance specification?

The correct answer is that the contractor holds all of the liability for a performance specification. In a performance specification, the owner typically outlines the required outcomes or performance standards for a project without detailing the specific methods or means for achieving those outcomes. It is the contractor's responsibility to develop the design and construction methods to meet those defined specifications.

When the contractor agrees to a performance specification, they assume the risk of not only delivering the final product but also ensuring that the methods employed effectively satisfy the performance criteria. This liability includes any consequential issues or defects that arise as a result of the contractor’s decisions during the execution of the project.

Architects and engineers may provide input or design assistance, but since they do not guarantee the performance under a performance specification, they do not carry the same level of liability. Similarly, subcontractors operate under the direction of the contractor and typically do not hold liability for the overall performance of the project. The owner remains involved as the party commissioning the work, but the ultimate responsibility for meeting the performance standards lies with the contractor.