Quick Notes Flashcards
Construction Management At Risk
- services provided by independent contractor
- project must be completed by established substantial completion date
- project must be completed within agreed upon budget
- owner can be compensated for any work that does not conform to the contract documents
As-built drawings
Created during and after course of construction to not forget small details/changes along the way.
Used to determine if all elements of a site design were built according to construction documents.
Used to document any changes from original design due to unforeseen site circumstances, design changes, and the like. For future reference to owners/maintenance/additions etc. on site
Legally contain absolutely everything as it was built or exists
Way of documenting any changes to the design that occurred during the course of construction due to such factors as owner-authorized changes to the design and errors in accounting for existing site conditions. In essence, they serve as a record of the design as it is built and could be used for:
- compare final built conditions to those in the record drawings
- determine liability in construction-related litigation
- used by a future party to make modifications, additions or alterations to a project site
Record Drawings
Document changes that have occurred during the construction process
A record of all changes that occurred in the field and that are documented through change orders, addenda, or contractor/consultant drawing markups.
Within the context of a private project, which party has ownership of design documents
Ownership of the documents must be established in the design contract.
In absence of agreement, design would control ownership.
In public, often owner retains ownership.
What is covered in contractor’s cost summary included with bid?
Transportation items
Incidental items (not explicitly listed, integrated into other line items)
Operation costs and profit
- would not address the price of anything deemed to be an additional service because service would be outside scope of services being bid by contractor.
Mediation
Voluntary method of resolving disputes in which the parties come to a common agreement that is intended to end the conflict in question.
- led by a third party
- occurs outside municipal court system
- less formal process than other techniques
- non-binding results
Arbitration
- led by impartial third party
- occurs outside municipal court system
- binding and final (cannot be repealed or reheard)
- not always court-enforceable
- do not establish legal precedents
- to be court enforceable, both parties must engage in a process known as “binding arbitration”
Time and Materials contract
Fee structure by which design firm is paid for time and materials spent, paid for labor and other direct costs like printing. Hourly labor rates negotiated and established in advance of performing the work.
“Maximum Not-To-Exceed” is added to this contract type to ensure that the owner is not billed past a maximum dollar amount unless there is a change of scope and a subsequent contract amendment.
Of contract options, typically best suited to work with an unclear scope and
Adding maximum not to exceed could alleviate the client’s concerns about the total cost of design services given that it would put a hard cap on the amount billed to the client.
How to determine percentage completion of construction documents
Make an estimate based on the number of drawings completed in relation to the list of drawings required
- this would give project manager a relatively detailed understanding of the amount of work completed, which when combined with their experience on past projects and overall team performance, could be used to determine the percentage completion of a project.
Project Work Plan
Organizational framework to plan how and in what sequence project work will occur.
Takes the scope of services (outlined in the contract documents and client agreement) and divides this scope into specific tasks and clarifies how and when this work will be accomplished by the design team.
Establishes the project communication procedures/hierarchy and the reporting structure, as well as safety, accounting and quality control procedures (e.g., CAD Standards).
Provides design project’s management team with a high-level plan of the project work so that they can assess whether the project has been properly planned and - as the project progresses - if the project work is being completed in reference to its stated goals.
Lump Sum Contract
Cost Plus Fixed Fee
Guaranteed Maximum Price
Bidding private sector
- site owner can choose any contractor they desire
- allow the bid advertisement to be shown to a select group of well-regarded contractors
- reserve right for owner to reject any and all bids
Private owners have the ability to negotiate the bid advertisement and contractor selection process as they see fit.
Bidding public sector
Torts
Private or civil wring doing or injury that occurs independent of a contract and are not criminal in nature.
Because they do not involve contracts and are not explicitly criminal acts, torts are often settled through common law interpretations.
Torts generally result from a specific action or failure to act and, in this sense, violate social norms.
For a tort to occur:
- one party (generally the defendant) must owe another party a duty (generally the plaintiff)
- there must be a breach of performance of that duty (this is where the concept of “social norms” applies)
- someone must be harmed by this breach of performance
- and there must be a clear relationship between the harm suffered and the breach of performance
Quality control of construction drawings generally takes place at which percentage of completion in the evolution of a drawing?
90%
Agreement for professional services would be formed between which of the following parties:
Owner
Consultant
Public bidding process awarding
Bid awarded to lowest responsible bidder submitting a regular bid.
Responsible bidders are determined through post qualification, and regular bids are considered to be those bids that conform to the requirements set forth in the bidding documents (e.g., bid is not late, contains all requested information, contractor is properly bonded)
Project design budgets vs.
project construction budgets
Design budget is amount of money allocated for design services
Construction budget represents amount of money available to have the project built.
Designer is expected to provide client with design that reflects construction budget, but the designer’s budget to produce that design does not incorporate the construction budget into the designer’s fee structure.
Lien rights
…
Generally waived for public works projects because public property is generally not subject to liens.
In many states, workers, suppliers and subcontractors are allowed to file a “stop notice” for public works projects in which they remain unpaid by the general contractor. In this sense, “stop notice” protects their interest in a capacity similar to a lien.
Benefits of lump sum/fixed fee contract
All parties have agreed to a predetermined budget for a defined scope of services. While the total budget for a project can be altered by mechanisms such as change orders, the lump sum contract deuces the potential for significant cost overruns.
- does not require precise measurements of in-place quantities to determine payment.
Items found on utility plan
location of:
- sewer lines and infrastructure
- telephone poles and overhead wires
- water meters and lines
- electrical and storm water drainage infrastructure
- other comparable information
Work Breakdown Structure (WBS)
- simple and straightforward as possible to manage project in question
- should relate to the contractual requirements specific to the project in question
- be able to accurately track project financials
- be able to be accessed by the entire project team
- establishes a hierarchy of tasks that illustrates the relationships between various tasks and show certain (smaller scope) tasks as components of other (higher-level) tasks
Partnerships
- Each partner is an agent of the partnership
- each partner has the power to enter into the binding contracts in the name of the partnership
- each partner has unlimited liability to creditors
- limitations can be placed on the powers of any partners in a partnership and may be used to regulate some aspect of the powers available to said partner
Limited partners
Generally contributes some tangible asset to business partnerships (such as cash or real estate) and shares in the profits and losses of the business
Provides no services, has no management role and their liability is limited (generally to no amount greater than the amount of investment made in the firm)
Meeting minutes
- include date, time and location of the meeting
- names, positions and firms/organizations of all attendees
- any and all notable and relevant statements made by the attendees
Design-Build Contract Method
Design work and construction work are not performed by the same firm/business entity
General Contract Method
Penalties if a contractor forfeits bid bond and withdraws from awarded project
- forfeiture of money is amount of the difference between their bid and that of the next lowest bidder, up to face value of the bid bond.
- in some instances, contractor may have to forfeit the face value of the bid bond outright.
Malfeasance
Alteration to an existing contract, contractual agreement or construction document set
- change order
- addenda
- field order
Payment Bond
Legal instrument or guarantee that ensures payment for labor and other services rendered should an employed fail to issue wages due to default or bankruptcy
Notice to Proceed
Notice of award
Means of notifying the contractor that they have been awarded the contract and specifies the terms under which the contract (and thus construction activities) will begin.
Bidding timeline
…
- bidding period closes
- bids reviewed
- owner issues a contract to winning contractor
- contractor returns signed contract
- owner issues notice to proceed
- schedule kickoff meeting
Errors and Omissions Insurance
Generally purchased to protect a professional services firm (including architects, surveyors, and landscape architects) from claims of negligence or failing to perform their professional duties.
Contractors generally do not carry errors and omissions insurance because bodily or physical damage are not covered by this type of policy.
Types of specifications
“Or equal”
“Or approved equal”
Proprietary
Design
Performance
Performance and Design
Closed
Open
Multiple Proprietary
All-Inclusive
Reference
How can a project manager most efficiently minimize risk within a project?
Proper planning
Schedule of Values
- line items in excess of construction budget
- plant materials and other “softscaping”
- materials measured by tonnage
- materials measured in linear feet
Request for Qualifications (RFQ)
To determine the most qualified firms to proceed a specific scope of professional services
Design firms would reply to a RFQ with a SOQ (statement of qualifications)
Further screening device to determine which of the firms responding to the RFQ are most qualified to provide the solicited professional services
Sometimes a public agency will use the RFQ format to prequalify a select list of firms capable of providing services for a specific type of project or a specific range of services. The agency will then draw upon the prequalified pool of firms as specific project needs arise, selecting first one firm, then another, and resolving through the list of prequalified firms.
May ask for info that will prequalify firms in terms of the firm’s financial stability, availability of insurance, proximity of the firm’s office to the project site, and other considerations.
Direct Selection
Avoids costly process of developing a statement of qualifications or a proposal and preparing for an interview in a competitive selection process
Statement of Interest (SOI)
Confirms the firm’s interest in a project and is a response to a request for interest or RFI issued by a public- or private-sector client.
Brief overview of a design firm sent from firm to owner in response to RFI. Confirms firm interest in proposed project. Owner does not use SOI to screen potential providers, instead replying to the SOI with a request for qualifications (to screen them) or sending them a request for proposal outright.
Submitting an SOI is a prerequisite to receiving further information, such as a RFP
Tends to be brief, letter sent of firm’s letterhead or email response to RFI
May include a brief statement about the firm’s previous experience or the background and experience of the firm’s principals or key staff
Not typically a screening process, used solely to identify the firms that are interested in the project
Statement of Qualifications (SOQ)
Response to a request for qualifications or RFQ.
Lengthier document than SOI
Include information about firm’s prior experience, staff capabilities, and resources.
Can include full-length resumes or resumes in shorter paragraph formats.
May be bound as a document.
Process is expensive in terms of time and out-of-pocket costs
Proposal
Responds to a request for proposals or RFP
May include same information as SOQ but will also include scope of work and scope of services to be provided by firm (these are likely to become part of contract if firm is selected to carry out the services)
May include full resumes and information on sub consulting firms
Usually includes fees
Written understanding of the project or problem, how the firm will approach the project, an estimate of hours, and a cost proposal.
