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The Construction Specifications Institute
Audio Sessions
Session 1
DOCUMENTS USED DURING CONSTRUCTION AND PROJECT
DELIVERY METHODS
Construction Contract Administration
Education ProgramCertified Construction Contract Administrator (CCCA)
Preparatory Course2011
1www.csinet.org
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© The Construction Specifications Institute 2011
The Construction Specifications Institute is a Registered Provider with The AmericanInstitute of Architects Continuing Education Systems. Credit earned on completion ofthis program will be reported to CES Records for AIA members. Certificates ofCompletion for non-AIA members available on request.
This program is registered with the AIA/CES for continuing professional education.As such, it does not include content that may be deemed or construed to be anapproval or endorsement by the AIA of any material of construction or any method ormanner of handling, using, distributing, or dealing in any material or product.Questions related to specific materials, methods, and services will be addressed atthe conclusion of this presentation.
AIA
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Source Material• The CCCA examination tests candidates' knowledge and understanding of
the following source materials: • Construction Contract Administration Practice Guide • Project Delivery Practice Guide• MasterFormat™• SectionFormat/PageFormat• UniFormat™ • General Conditions of the Contract and Contract Forms
– AIA A201-2007 General Conditions of the Contract for Construction – EJCDC C-700-2007 Standard General Conditions of the Construction Contract – AIA B201 – 2007 Standard Form of Architect’s Services – EJCDC E-500 – 2002 Agreement Between Owner and Engineer for Professional
Services
• Agreement Forms – AIA A101-2007 Standard Form of Agreement Between Owner and Contractor – EJCDC C-520-2007 Suggested Form of Agreement Between Owner and
Contractor for Construction Contract (Stipulated Price)
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Source Material• Exam Summary The proportion of the exam dedicated to each subject area is as follows:
• Study Unit No.1: Documents Used During Construction and Project Delivery Methods 6%
• Study Unit No. 2: Roles and Responsibilities 4%
• Study Unit No. 3: Preconstruction 5%
• Study Unit No. 4: Procurement references the PDPG 12.1 8%
• Study Unit No. 5: Meetings 5%
• Study Unit No. 6: Submittals 8%
• Study Unit No. 7: Site Visits, Observation, and Inspection 10%
• Study Unit No. 8: Quality Assurance and Quality Control 6%
• Study Unit No. 9: Interpretations and Modifications 16%
• Study Unit No. 10: Executing the Work 6%
• Study Unit No. 11: Claims and Disputes 8%
• Study Unit No. 12: Measurement and Payment 7%
• Study Unit No. 13: Project Closeout 8%
• Study Unit No. 14: Facility Management references the PDPG 14.1 3%
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From the Study Guide• This can be a difficult examination for the unprepared candidate.
• The exam thoroughly tests the candidate’s knowledge and comprehension of the Construction Contract Administration Practice Guide and related CSI publications and the general conditions and agreements in common use (AIA Documents A101, A201, B201 and EJCDC C700, C-520, E-500).
• Candidates who took the CDT exam prior to 2009 will have studied different source material and should take care to review all sections of the Construction Contract Administration Practice Guide as well as the updated source materials referenced above.
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The Construction Specifications Institute
Learning Objectives• To define construction contract administration
• To list the basic principles in each of the Contract Documents and their relationships
• To recognize Contract Document requirements for each major construction contract administration activity
• To describe the importance of feedback to improve future construction documents
• To distinguish between the various types of construction contracts, how construction contract administration is affected by each type of contract, and the roles and responsibilities change with each project delivery method
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The Construction Specifications Institute
Session OutlineSTUDY GUIDE: Subject Matter Area No. 1 6%
DOCUMENTS USED DURING CONSTRUCTION AND PROJECT DELIVERY METHODS
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A. Definition of Construction Contract Administration
B. Contractual Documents Used in Construction Contract Administration1. Owner-A/E agreements2. Owner-Contractor agreements3. Conditions of the contract4. Division 01 – General
Requirements5. Division 02-49 specifications6. Contract drawings7. Addenda
8. Modifications9. Notice to Proceed
C. Contract Documents Relationships
Continued on following slide
The Construction Specifications Institute
Session OutlineSTUDY GUIDE: Subject Matter Area No. 1
DOCUMENTS USED DURING CONSTRUCTION AND PROJECT DELIVERY METHODS
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D. Contract Document Requirements for Each Major Construction Contract Administration Activity
1. Meetings (session 5)2. Submittals (session 6)3. Site visits, observations, and
inspection (session 7)4. Quality assurance and quality
control (session 8)5. Interpretations and modifications
(session 9)
6. Executing the work (session 10)7. Claims and disputes (session 11)8. Measurements and payment (12)9. Project closeout (session 13)
E. Project Feedback
F. Contract Administration and Project Delivery Methods
1. Single prime contract2. Multiple prime contracts3. Construction management
contracts in both advisor or agent and constructor roles
4. Design-build contract5. Owner-build contract
Continued from previous slide
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The Construction Specifications Institute 9
DOCUMENTS USED DURING CONSTRUCTION AND PROJECT
DELIVERY METHODSSTUDY GUIDE AREA NO. 1
The Construction Specifications Institute
DEFINITION OF CONSTRUCTION CONTRACT ADMINISTRATION
STUDY GUIDE: Submit Matter Area No. 1 - A.
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Construction Contract Administration• Activities necessary to
effect and determine fulfillment of contract requirements by parties to construction contract
Construction Contract Administration Practice Guide: 1 Introduction
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The Construction Specifications Institute
CONTRACTUAL DOCUMENTS USED IN CONSTRUCTION CONTRACT
ADMINISTRATIONSTUDY GUIDE: Submit Matter Area No. 1 – B.
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1. Owner-A/E agreement2. Owner-Contractor agreement3. Conditions of the contract4. Division 01 – General Requirements5. Divisions 02-49 – Specifications6. Contract drawings7. Addenda8. Modifications9. Notice to proceed
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Owner-A/E Agreements• Advise and consult Owner
• Interpret contract documents
• Observe the work
• Review and certify payments to Contractor
• Review and approve submittals
• Prepare modifications
• Prepare revisions to Contractor’s initial punch list
• Inspect to determine date of– Substantial completion
– Final completion
Construction Contract Administration Practice Guide: 3.3.1.1
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Owner-Contractor Agreements• Project delivery methods
• Number of contracts
• Basis of payment
• Contract document list
• Contract time
• Contract price/sum
• Payment procedures
Construction Contract Administration Practice Guide: 3.3.1.1
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Conditions of the Contract• Includes
– General conditions are typically one of the standardized forms published by a professional association
– Supplementary conditions are typically written to modify the general conditions for the specific project
• Establishes responsibilities for– Owner
– A/E - Construction contract administration
– Contractor - Construction project management
Construction Contract Administration Practice Guide: 3.3.1.3
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TypicalGeneral Conditions Provisions
• General provisions and definitions
• Owner’s responsibilities
• Contractor’s responsibilities
• A/E’s responsibilities
• Subcontractors (definition and relationships)
• Construction by Owner or separate contractors
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Construction Contract Administration Practice Guide: 3.3.1.3
Continued on following slide
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TypicalGeneral Conditions Provisions
Continued from previous slide
• Changes in the work
• Contract time
• Payments to Contractor and completion of work
• Protection of persons and property
• Insurance and bonds
• Correction, removal, or acceptance of defective work
• Miscellaneous provisions
• Suspension of work and termination of contract
• Claims and disputes
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Construction Contract Administration Practice Guide: 3.3.1.3
Typical Supplementary Conditions Provisions
• Performance
• Responsibilities of certain parties
• Project related insurance requirements
• Progress payment arrangements
• Wage rate requirements
• Equal employment opportunity requirements
• Other project specific requirements
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Construction Contract Administration Practice Guide: 3.3.1.3
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Division 01 – General Requirements• Expands, amplifies and customizes following on project
specific basis– Administrative requirements
– Procedural requirements
– Temporary facilities and controls
• Governs execution of work specified in Divisions 02-49
• Basic rights and responsibilities in general conditions, including supplementary conditions
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Construction Contract Administration Practice Guide: 3.3.1.4
Division 01 Sections• 01 00 00 GENERAL
REQUIREMENTS
• 01 10 00 SUMMARY– 01 11 00 Summary of Work
– 01 12 00 Multiple Contract Summary
– 01 14 00 Work Restrictions
– 01 18 00 Project Utility Sources
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• 01 20 00 PRICE AND PAYMENT PROCEDURES– 01 21 00 Allowances
– 01 22 00 Unit Prices
– 01 23 00 Alternates
– 01 24 00 Value Analysis
– 01 25 00 Substitution Procedures
– 01 26 00 Contract Modification Procedures
– 01 29 00 Payment Procedures
Construction Contract Administration Practice Guide: Figure 3.3
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Division 01 Sections
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• 01 30 00 ADMINISTRATIVE REQUIREMENTS– 01 31 00 Project
Management and Coordination
– 01 32 00 Construction Progress Documentation
– 01 33 00 Submittal Procedures
– 01 35 00 Special Procedures
• 01 40 00 QUALITY REQUIREMENTS– 01 41 00 Regulatory
Requirements
– 01 42 00 References
– 01 43 00 Quality Assurance
– 01 45 00 Quality Control
Construction Contract Administration Practice Guide: Figure 3.3
Division 01 Sections
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• 01 50 00 TEMPORARY FACILITIES AND CONTROLS– 01 51 00 Temporary Utilities
– 01 52 00 Construction Facilities
– 01 53 00 Temporary Construction
– 01 54 00 Construction Aids
– 01 55 00 Vehicular Access and Parking
– 01 56 00 Temporary Barriers and Enclosures
– 01 57 00 Temporary Controls
– 01 58 00 Project Identification
• 01 60 00 PRODUCT REQUIREMENTS– 00 61 00 Common Product
Requirements
– 01 62 00 Product Options
– 01 64 00 Owner Furnished Products
– 01 65 00 Product Delivery Requirements
– 01 66 00 Product Storage and Handling RequirementsConstruction Contract Administration
Practice Guide: Figure 3.3
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Division 01 Sections
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• 01 70 00 EXECUTION AND CLOSEOUT REQUIREMENTS– 01 71 00 Examination and
Preparation
– 01 73 00 Execution
– 01 74 00 Cleaning and Waste Management
– 01 75 00 Starting and Adjusting
– 01 76 00 Protecting Installed Construction
– 01 77 00 Closeout Procedures
– 01 78 00 Closeout Submittals
– 01 79 00 Demonstration and Training
Construction Contract Administration Practice Guide: Figure 3.3
Division 01 Sections
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• 01 80 00 PERFORMANCE REQUIREMENTS– 01 81 00 Facility
Performance Requirements
– 01 82 00 Facility Substructure Performance Requirements
– 01 83 00 Facility Shell Performance Requirements
– 01 84 00 Interiors Performance Requirements
– 01 85 00 Conveying Equipment Performance Requirements
– 01 86 00 Facility Services Performance Requirements
– 01 87 00 Equipment and Furnishings Performance Requirements
– 01 88 00 Other Facility Construction Performance Requirements
– 01 89 00 Site Construction Performance Requirements
Construction Contract Administration Practice Guide: Figure 3.3
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Division 01 Sections
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• 01 90 00 LIFE CYCLE ACTIVITIES– 01 91 00 Commissioning
– 01 92 00 Facility Operation
– 01 93 00 Facility Maintenance
– 01 94 00 Facility Decommissioning
Construction Contract Administration Practice Guide: Figure 3.3
Division 02-49 – Specifications • Identifies specific requirements for each material or
systems along with relevant standards
• Indicates submittal information required
• Specify QC and QA provisions
• Indicates requirements for product storage, handling, and installation
• Indicates specific sequencing or scheduling requirements
• Specifies product warranties
• Indicates requirements for preparation, installation, and protection
• Other specifics of material or system being specified
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Construction Contract Administration Practice Guide: 3.3.1.5
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Contract Drawings • Graphic representations of
work
• Shows – Location
– Materials
– Dimensions
– Size
– Interrelationship of materials
• Drawings are complementary with specifications
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Construction Contract Administration Practice Guide: 3.3.1.6
Addenda and Modifications• Written or graphic changes that clarifies, revises, adds, or
deletes information
• Addenda – In procurement documents or in previous addenda before contract is executed
• Modifications – In contract documents after contract is executed
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Construction Contract Administration Practice Guide: 3.3.1.7 – 3.3.1.8
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Notice to Proceed• When Owner is satisfied that pre-construction documents
have been submitted after contract is executed, Owner issues notice to proceed directing Contractor to begin work
• Lists date work is authorized to commence and establishes beginning of contract time
• Includes number of calendar days or date of substantial completion
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Construction Contract Administration Practice Guide: 3.2
The Construction Specifications Institute
CONTRACT DOCUMENT RELATIONSHIPS
STUDY GUIDE: Submit Matter Area No. 1 - C.
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Contract Documents Defined• Written and graphic documents prepared and assembled by
A/E for communicating the project design for construction and administering the construction contract
• Legal basis of the contract
• Describes the construction (work) that results from performing services, furnishing labor, and supplying and incorporating materials and equipment into the construction
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Construction Contract Administration Practice Guide: 1.3
Contract Documents• Contracting requirements
– Agreement
– Conditions of the contract
– Revisions, clarifications, and modifications
• Specifications– Written requirements for the work
– Defines quality requirements for products, materials, and workmanship
– Establishes requirements for administering and performance
• Drawings – Graphic illustrations of the physical form of work to be performed
– Show quantitative extent and relationships of elements to one another
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Construction Contract Administration Practice Guide: 1.3.1
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The Construction Specifications Institute
CONTRACT DOCUMENTS REQUIREMENTS FOR EACH MAJOR
CONSTRUCTION CONTRACT ADMINISTRATION ACTIVITY
STUDY GUIDE: Submit Matter Area No. 1 – D.
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1. Meetings 2. Submittals3. Site visits, observation, and inspection4. Quality assurance and quality control5. Interpretations and modifications6. Executing the work7. Claims and disputes8. Measurement and payment9. Project closeout
Meetings (Session 5)• Preconstruction
– Procedural
– Site mobilization
– Utility coordination
– Authorities having jurisdiction
• Progress
• Contractor/subcontractor
• Preinstallation
• Closeout
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Construction Contract Administration Practice Guide: 4
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Submittals (Session 6)• Administrative and procedural requirements contained in
– General conditions
- Requires Contractor to prepare, review and forward submittals to A/E
- Clarifies A/E’s role in using professional judgment to review, approve, or take other appropriate action
– Division 01 – General Requirements
- Stipulates amount of review time by A/E- Contractor should allow sufficient time for A/E’s review, rejection,
and re-review without causing delay
• Should not include requests for substitution
• Are not contract documents
• Important part of quality assurance
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Construction Contract Administration Practice Guide: 5
Categories of Submittals• Preconstruction
• Construction– Action
– Informational
– Closeout
– Maintenance
• Project closeout
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Construction Contract Administration Practice Guide: 5
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Site Visits, Observations, and Inspections(Session 7)
• Basic to quality control is that participants have certain responsibilities for making observations and inspections– Observe – Perceive, notice,
see
– Inspection – Examine carefully and crucially, especially for defects
• Distinction between observation and inspection is important
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Construction Contract Administration Practice Guide: 6
Authorities Having Jurisdiction (AHJ)• Federal, state, county, and city authorities oversee safety
and welfare of public
• Verifies that design complies with codes and ordinances before issuing permits
• Verifies that construction complies with codes and ordinances by site inspections
• Reject work not complying with codes and ordinances
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Construction Contract Administration Practice Guide: 6
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Quality Assurance (QA)Quality Control (QC)
(Session 8)• Construction is
process of executing requirements of contract documents
• Quality requirements established by contract documents
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Construction Contract Administration Practice Guide: 7
Interpretations and Modifications(Session 9)
• Not a substitute for clear, concise, correct, and complete contract documents
• However, extent of design and construction process is such that modifications and changes are necessary
• Contract documents are not perfect and following required of A/E – Interpretations
– Clarifications
– Modifications
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Construction Contract Administration Practice Guide: 8
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Interpreting Contract Documents• Well coordinated and produced contract documents
– Reduce potential for conflicts
– Need for contract interpretations and modifications
– Information stated clearly without conflicts
– Drawings and specifications should be complementary
• Conflicts within contract documents require interpretations and modifications
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Construction Contract Administration Practice Guide: 8
Standard Contracts• Define contract documents as complementary
• State what is required by one is required by all
• Establishes A/E (Initial Decision Maker) as impartial interpreter of contract documents
• Requires A/E (or IDM) to render decisions according to intent of contract documents
• When contract documents are interpreted, contents of drawings and specifications must be considered together
• Require modifications made according to a specified process
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Construction Contract Administration Practice Guide: 8
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Requests for Interpretations (RFI)• Contracts typically require A/E, as
interpreter of contract documents, to respond to requests for– An interpretation
– Information that is missing or in conflict
• Requests for interpretations should not be used to– Substitute a product for one specified
– Attempt to transfer Contractor’s responsibility for timely and thorough review
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Construction Contract Administration Practice Guide: 8
Contract Modifications• Modifications that change
contract sum or time– Change orders
– Construction change directive
• Modifications that do not change contract sum or time– Minor changes in the work
– Architects supplemental instructions
– Field orders
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Construction Contract Administration Practice Guide: 8
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Executing the Work (Session 10)
• Supervision of construction– Contractor responsible for supervision of the work
– Complying with contract documents
– Quality assurance and quality control procedures
• Coordinating construction activities– Issues related to coordinating the work
– Coordination drawings
• Sequencing the work– Scheduling
• Field engineering– Surveying
– Layout
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Construction Contract Administration Practice Guide: 9
Executing the Work• Contractor record keeping
– Daily reports
– Use of photographs and video
– Use of forms and log forms
– Filing and retrieval of documentation
– Posting modifications to the contract documents
– Record documents
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Construction Contract Administration Practice Guide: 9
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Projects are Successful When• Completed on time
• Within budget
• All claims resolved
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Construction Contract Administration Practice Guide: 10
Claims and Disputes (Session 11)• Interpretation or modification may become a claim
• Unresolved claims may lead to disputes
• Claims are initially requests for adjustments in contract sum or time
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Construction Contract Administration Practice Guide: 10
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Contractor Claims• Conditions contrary to those indicated or shown in contract
documents may be initiated as a claim• Changed conditions include
– Active interference by Owner or A/E– Conditions beyond control of Contractor or Owner– Unknown or concealed conditions that affect extent of work– Modifications made to contract documents– Errors or omissions in contract documents
• Contractor is required to provide documentation that changed condition– Was not foreseeable at time of pricing– Resulted in demonstrable damages
• Claims may be submitted by Contractor on behalf of subcontractors and suppliers
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Construction Contract Administration Practice Guide: 10
Owner Claims• Belief that value of work received is not commensurate with
contract sum• Increased costs because of actions or inactions by Contractor
• Claims that are grounds for withholding payment– Correction of non-conforming or defective work – Failure to clean– Repair of damages to existing property– Liquidated or compensatory damages for late performance– Ineffective management and/or control of work resulting in added costs
for- Inordinate number of submittal reviews- Reviews of substitution requests- Interferences with Owner’s operations- Additional site visit, inspections, and
related administrative time
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Construction Contract Administration Practice Guide: 10
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Resolving Claims• Standard Contracts typically stipulate A/E or initial decision
maker will resolve claim
• Once claim is documented and understood, A/E may generate written preliminary response summarizing– Essence of claim
– Identifies any concerns requiring reconciliation
– Establishes proposed schedule for resolving claim
• Justification often apparent from outset
• Such claims can be handled with less effort by promptly addressing issues and negotiating settlement if possible
• Claims involving adjustments in contract sum or time require support documentation
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Construction Contract Administration Practice Guide: 10
Periodic Progress Payments(Session 12)
• Standard contracts typically establishes procedures for periodic progress payment to the Contractor
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• Typical procedure– Contractor prepares
application for payment and forwards to A/E
– A/E reviews and executes certificate for payment and forwards to Owner
– Owner obligated to make payment on or before time established in contract documents
Construction Contract Administration Practice Guide: 11
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Periodic Progress Payments• When payment has been made to Contractor, Owner has
discharged Owner’s payment obligation for the work completed to date
• Contracts typically stipulates that progress payments do not constitute acceptance
• Standard contract typically includes provisions for Owner to reject the work and adjust payment accordingly
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Construction Contract Administration Practice Guide: 11
Substantial Completion(Project Closeout - Session 13)
• Standard contracts typically define substantial completion when the project, or portion, is determined by A/E to be substantially complete for its intended use
• Substantial completion, or occupancy, does not constitute acceptance of Work not completed according to contract documents
• A/E issues certificate of substantial completion for acceptance by Owner and Contractor
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Construction Contract Administration Practice Guide: 11
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Final Completion• Standard contracts typically define final completion
– When Contractor has completed Contract requirements
– A/E has inspected to determine completion
– Owner has made final payment to Contractor
– Contractor has accepted final payment
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Construction Contract Administration Practice Guide: 11
Retainage• Standard contracts typically establish procedures for
retaining a prescribed percentage of amount due for each progress payment
• Not intended to force Contractor to perform
• Protects Owner by making money available to correct
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– Errors in estimating cost of the work
– Defective work
– To settle third party claims against Contractor before release of final release
– Latent defects discovered in portions of the work previously paid
Construction Contract Administration Practice Guide: 11
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Withholding Payment• Standard Contracts typically give A/E right and
responsibility to withhold certification of whole or any part of application for payment to protect the Owner
• Common conditions for A/E to recommend withholding payments to protect interests of Owner– Damaged or non-conforming work requiring repair or correction
– Damaged property, adjacent to project, requiring repair or replacement
– Failure by Contractor to meet scheduled milestone or Contractor’s own approved schedule to extent that liquidated or compensatory damages may be reasonable anticipated
Continued on following slide
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Construction Contract Administration Practice Guide: 11
Withholding PaymentContinued from previous slide
– Claims made against Owner on account of Contractor’s failure to perform
– Liens filed in connection with nonpayment of subcontractors, suppliers, laborers, and mechanics
– Failure to keep record documents current
– Cost of doing cleaning work, by Owner or others, resulting from Contractor’s failure to perform cleaning work
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Construction Contract Administration Practice Guide: 11
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Final Payment• Final change order balances previous payments against
final payment and final contract sum
• Final change order items may include adjustments– To unit price item quantities
– To stipulate allowances
– For liquidated damages or penalty/bonus clauses
– For testing reimbursement when Owner employs testing services and pays for only passing tests
– For reimbursement of utilities
– Adjustments for reimbursement of Owner’s expense for additional A/E services
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Construction Contract Administration Practice Guide: 11
Project Closeout• Participant roles
• Closeout meeting
• Closeout – Demonstration of systems and equipment and training
– Starting of systems and equipment
– Project record documents
– Operations and maintenance manuals
– Commissioning
– Time of completion
– Substantial completion
– Final completion
• Post construction services
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Construction Contract Administration Practice Guide: 12
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The Construction Specifications Institute
PROJECT FEEDBACKSTUDY GUIDE: Submit Matter Area No. 1 - E.
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Project Feedback• Determination should be made if interpretations and
modifications on a project were– Specific to project
– More general in nature requiring modification of A/E’s standards
• If standard detail or specification requires interpretation or clarification
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Construction Contract Administration Practice Guide: 8.4
– A/E should review drawing or specification to prevent future need for interpretation or clarification
– Time required to make interpretation or clarification can become costly
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Project Feedback• Should occur on a continual basis
• Purpose is to provide actual project experience to project team
• Benefits – Enhanced experience in various project types, systems, and process
– Input of valuable information for use on future projects
– Better quality assurance and control methods
– Refinement of innovative designs, materials, and construction techniques
– Identification of correctable situations for benefit of future projects
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Construction Contract Administration Practice Guide: 8.4
The Construction Specifications Institute
CONTRACT ADMINISTRATION AND PROJECT DELIVERY METHODS
STUDY GUIDE: Submit Matter Area No. 1 – F.
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1. Single prime contracts2. Multiple prime contracts3. Construction management contracts in
both advisor or agent and constructor roles
4. Design-build contract5. Owner-build contract
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Contract Types(from PDPG & CH 1)
• Prime contract – Original contract between two original parties for an original purpose
• Subcontract – When either party to prime contract enters into another contract that will be part of the original purpose
Project Delivery Practice Guide: 5.6 65
Single Prime Contracts• A common form of construction contracting
• Owner has separate contracts with A/E and Contractor, but no agreement between A/E and Contractor
• A/E has agreements with consultants
• Contractor has agreements with subcontractors and suppliers, but Contractor remains solely responsible for all of the work required to fulfill the contract
• Neither Owner or A/E have contracts with subcontractors and suppliers
Project Delivery Practice Guide: 5.6.1 66
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Single Prime Contracts• Contractor and Owner
enters into an agreement formalizing their relationship and their obligations
• Centralization of responsibility can result in simpler project scheduling and coordination
• Lines of responsibility to Owner clearly defined
Project Delivery Practice Guide: 5.6.1 67
Single Prime Contracts
Project Delivery Practice Guide: Figure 5.2 68
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Single Prime Contracts• Typically used on
– Design-bid-build projects (D-B-B)
– Design-negotiate-build projects (D-N-B)
– Design-build projects (D-B)
Project Delivery Practice Guide: 5.6.1 69
Project Delivery Practice Guide: Figure 7.3 70
Project DeliveryDesign-Bid-Build (D-B-B)
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Project Delivery Practice Guide: Figure 7.4 71
Project DeliveryDesign-Negotiate-Build (D-B-B)
Single Prime Contracts• A/E typically responsible for following construction contract
administration services– Represents Owner during construction
– Observes work for compliance with contract documents
– Observes project progress associated with review of Contractor’s applications for payment
– Preparation and recommendation of contract modifications
– Attends project meetings
– Inspects project to determine
- Substantial completion- Final completion
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Construction Contract Administration Practice Guide: 1.4.1
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Single Prime Contracts• Contractor typically responsible for following construction
project management services
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Construction Contract Administration Practice Guide: 1.4.1
– Preparing applications for payment
– Administering subcontracts
– Purchasing
– Preparing, monitoring, updating project schedules
– Attending project meetings
– Communicating with A/E and subcontractors
– Preparing proposal requests and responding to A/E
– Issuing contract modification proposals
– Preparing and implementing safety programs
– Requesting clarifications and interpretations of contract documents
– Administering submittal process
Multiple Prime Contracts• Work is divided among several contractors, each enters into
an agreement with the Owner
• A/E may prepare a separate set of documents for each contract
• Unless a contracted entity is assigned responsibility and authority for coordination of multiple contracts, Owner must be responsible
Project Delivery Practice Guide: 5.6.2 74
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Multiple Prime Contracts
Project Delivery Practice Guide: Figure 5.3 75
Multiple Prime Contracts• Typically used on
– Construction management projects (CMa and CMc)
– Owner-build projects (O-B)
Project Delivery Practice Guide: 5.6.2 76
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Construction Management Contracts• Owner (CMa) or construction manager (CMc) enters into
separate contracts with multiple prime contracts
• A/E’s construction contract administration similar to design-bid-build project delivery, except administration is for multiple contracts
• Key to success is coordination of prime contractors
• Flow of communications
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Construction Contract Administration Practice Guide: 1.4.2
– Through A/E for CMa
– Through construction manager for CMc
Project Delivery Practice Guide: Figure 7.5 78
Project DeliveryConstruction Management as
Advisor or Agent (CMa)
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Construction Management Contracts• Construction manager as advisor or agent (CMa)
• Divides project into multiple contracts for– Procurement
– Contracts
• Provides construction project management services– May provide many services typically provided by A/E
– Represents Owner during construction
– Observes project progress associated with review of Contractor’s applications for payment
– Coordination among contracts
– Reviewing and approving contract modifications
– Attends project meetings
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Construction Contract Administration Practice Guide: 1.4.2
Project Delivery Practice Guide: Figure 7.6 80
Project DeliveryConstruction Management as
Contractor (CMc)
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Construction Management Contracts• Construction manager as Contractor (CMc)
– Functions as a Contractor
– Provides construction management services
– Guarantees cost of construction
– Executes subcontracts for most of construction work
• Owner may retain A/E for construction contract administration
• Construction manager provides following to A/E during design stage– Supervises construction
– Construction expertise
– Cost estimating experience
– Scheduling services
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Construction Contract Administration Practice Guide: 1.4.2
Project Delivery Practice Guide: 7.5 and Figure 7.7 82
Project DeliveryDesign-Build (D-B)
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Design-Build Contracts• Owner contracts with single D-B entity to design and build
project
• D-B entity may – Retain an independent A/E to provide design services
– Provide design services as part of D-B entity
• Distinction between following services may become blurred because D-B may provide both– A/E’s construction contract administration
– Contractor’s construction project management
• Owner typically retains some construction contract administration responsibilities however, those normally provided by A/E are typically provided by D-B entity
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Construction Contract Administration Practice Guide: 1.4.3
Design-Build Contracts• D-B agreement must clearly address following
administration and management responsibilities– Construction contract administration
– Construction project management
• Administration and management responsibilities typically provided by one of following– D-B team member
– Owner retains an administrative professional to represent Owner’s interests
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Construction Contract Administration Practice Guide: 1.4.3
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Design-Build Contracts• A/E’s services are provided to D-B rather than Owner
– Observes work for conformance with contract documents
– Observes project progress associated with review of Contractor’s applications for payment
– Reviewing contract modifications
– May make recommendations to D-B entity
– A/E must comply with state licensing regulations
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Construction Contract Administration Practice Guide: 1.4.3
Design-Build Contracts• D-B entity without separate agreement with Contractor
– Assumes responsibility for construction project management services
– Observes project progress associated with review of Contractor’s applications for payment
– Reviewing contract modifications
– May make recommendations to D-B entity
– A/E must comply with state licensing regulations
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Construction Contract Administration Practice Guide: 1.4.3
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Project Delivery Practice Guide: 7.6 and Figure 7.8 87
Project DeliveryOwner-Build (O-B)
Owner-Build Contracts• Owner provides many of Contractor’s construction
management services
• Owner may retain an A/E for design services however, amount of construction contract administration services are at Owner’s discretion other than those required by state licensing regulations
• Because Owner is providing Contractor’s construction management services, requirements for submittals, approvals, and similar activities will likely be reduced
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Construction Contract Administration Practice Guide: 1.4.3
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The Construction Specifications Institute
Review OutlineSTUDY GUIDE: Subject Matter Area No. 1
DOCUMENTS USED DURING CONSTRUCTION AND PROJECT DELIVERY METHODS
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A. Definition of Construction Contract Administration
B. Contractual Documents Used in Construction Contract Administration1. Owner-A/E agreements2. Owner-Contractor agreements3. Conditions of the contract4. Division 01 – General
Requirements5. Division 02-49 specifications6. Contract drawings7. Addenda
8. Modifications9. Notice to Proceed
C. Contract Documents Relationships
Continued on following slide
The Construction Specifications Institute
Review OutlineSTUDY GUIDE: Subject Matter Area No. 1
DOCUMENTS USED DURING CONSTRUCTION AND PROJECT DELIVERY METHODS
90
D. Contract Document Requirements for Each Major Construction Contract Administration Activity1. Meetings2. Submittals3. Site visits, observations, and
inspection4. Quality assurance and quality
control5. Interpretations and modifications
6. Executing the work7. Claims and disputes8. Measurements and payment9. Project closeout
E. Project Feedback
F. Contract Administration and Project Delivery Methods1. Single prime contract2. Multiple prime contracts3. Construction management
contracts in both advisor or agent and constructor roles
4. Design-build contract5. Owner-build contract
Continued from previous slide
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Questions?
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