CM Leadership Manual Document Control & Contract Administration Presented by: Heather Howard Kay Jackson

Now Available on MBP TeamNet! CM Leadership Manual Now Available on MBP TeamNet! Log onto TeamNet (link below) Select “Technical Resources Select “Manuals” Select “Construction Management” Select “CM_Manual2010” https://63.100.85.140/dana-na/auth/url_default/welcome.cgi

Now Available on MBP TeamNet! Corporate Style Guide Now Available on MBP TeamNet! Log onto TeamNet Select “Marketing” Select “Shared Documents” Select “StyleGuide2009” (There is also a hyperlink to the Style Guide on page 8 of the CM Leadership Manual.)

Living Document This is a work in progress. This section is intended to provide you with a resource in the event that your client/project lacks a document control program. The lesson does not address the document control and monitoring of the schedule. That is addressed in a separate section of the manual. This document is not intended to duplicate what your client is already using; it is here to fill your site specific needs.

Agenda Introduction of Presenters Heather Howard Kay Jackson Overview of the CM Leadership Manual and MBP Style Guide Document Control Flow of Communication Control and Storage Examples Contract Administration Monthly Requisitions Contract Changes Resources Questions and Answers

Section 1 DOCUMENT CONTROL Subsections 1.1 Flow of Communications 1.2 Document Control and Storage 1.3 Daily reports 1.4 Meeting minutes 1.5 Submittals 1.6 Correspondence 1.7 Logs RFI’s Potential Change Orders Change Orders Issues

Section 1 DOCUMENT CONTROL Overview “The CM is the communication hub for all project communications and is responsible for the timely and appropriate compilation, analysis, dissemination, file storage and retrieval of all communications and documentation associated with the project.” “If the owner does not have a document control process in place, the following procedures should be implemented, following the MBP Style Guide. If the owner does have his own process, the CM is to follow the [owner’s] established procedures including the use of any software system chosen by the owner. (Adhere to the Style Guide for all written correspondence.)”

Communication Flowchart:

Communication Plan Lists types of correspondence commonly needed on a construction project Not all are needed and other may be needed that are not included in this list

Filing Plan Being organized is key to successful storage of all project communications Be diligent in filing Similar folders can be set up for electronic storage If you can’t locate a file, you don’t have a successful system.

Construction Manager’s Daily Progress Report First line of defense if there is a problem – no substitute for written history Salient points Weather Manpower Non-compliant item tracking Construction progress (tie to the approved schedule whenever possible) Starts and stops Change order work Testing and inspections CONSTRUCTION MANAGER'S DAILY PROGRESS REPORT PROJECT:   DAY: DATE: WEATHER: (circle one) RAIN SNOW SLEET HIGH WIND CLEAR OTHER___________________________ REMARKS: _______________________________________________________________ TEMP am pm GENERAL CONTRACTORS' EMPLOYEES ON SITE: SUPERINTENDENT ASST. SUPERINTENDENT . ENGINEERS_______ FOREMEN CARPENTERS OPERATORS FINISHERS LABORERS PLUMBERS MASONS ELECTRICIANS TEST TECH OTHER 1 DELINQUENT ITEMS: (state in full when first notified and when to be resolved) MATERIALS RECEIVED: WORK PERFORMED: Item Schedule LI No. ISSUES: TESTS AND INSPECTIONS: SAFETY COMMENTS:

Preconstruction Meeting Sets the tone for the team Puts the CM in the driver’s seat Defines roles and responsibilities Defines expectations

Meeting Minutes

Meeting Minutes, continued

Meeting Minutes, continued

Submittals CM receives submittal from the Contractor and transmits to the Architect or Owner for approval CM logs and files the submittal of record Yes No CM returns the submittal to the contractor Approved? Typically, the contractor prepares the submittal log. CM to verify all submittals are included CM to verify critical submittals are included on the schedule CM to monitor submission and return dates.

Correspondence Tracks issues Identifies open items to address at progress meeting

RFI Process: YES NO Contractor submits RFI to CM who logs and tracks Is RFI valid? CM forwards to Designer of Owner for response. CM forwards response to Contractor and posts to as-built drawings Does RFI have a cost/time impact? See flowchart in Section 3.2 to initiate change CM returns to Contractor and advises Designer and Owner YES NO

The RFI Form Salient Points Contractor can claim cost or time impact, but it is not approved on the RFI – simply used as a flag to track the issue Make sure RFI’s are not frivolous Enforce contract requirements for response times Post in a timely manner Check to make sure the contractor is posting

RFI Log

Potential Change Order Log Totals Original contract amount Total approved changes Revised contract amount Change Order #1 Change Order #2 Change Order #3 Original contingency Remaining contingency Changes pending Contingency pending % of original contract for all changes Project Name Potential Change Order Log Potential Change Order No. Initiator Date Issue Date Resolved Description Comments General Contractor's Proposed Cost Approved Cost Change Order No. 1 Unforeseen condition Owner requested GC claimed Error/Omission   2 3 4 5 TOTALS Original contract amount Total Approved Changes Revised contract amount Change Order #1 Change Order #2 Change Order #3 Original contingency Remaining contingency Changes pending Contingency pending % of original contract for all changes

Change Order Log 11 Unforeseen conditions Relocate sanitary line in McKinley Road due to gas line and electrical pole obstructions and re-route water line $45,114.00 3 12 Zoning required Provide sequenced surveys for excavation and wall plats $5,987.00 24   Revisions to power, voice and data in L116 -$2,895.33 31 Storm reroute re: RFI #49 $5,797.00 36 Undercutting for stepped footing $2,547.00 37 Owner request Additional voice and data in S211. $7,761.00 $64,310.67 4 Permit comments Several changes were made after the bid documents were released There were 9 addenda to the bid set due to varying sources such as permit responses, owner requests, clarifications, etc. $75,967.00 6 Owner adjustment Door hardware changes Lever locks in lieu of push/pull plates were added to gang toilets. $1,283.00 21 Design change Changed feeders to panel LPL $0.00 25 Revisions to circuit breaker sizes $1,110.00 27 Remove portion of footing to accommodate storm leader 39 Provide batterty backup for elevator sump pump Requested during the submittal review process $3,705.00 41 Revise electrical per RFI #085 $2,215.00 $84,280.00

Section 3 CONTRACT ADMINISTRATION Subsections 3.1 Monthly Requisition 3.2 Contract Changes

Monthly Requisition CM role is to verify that the requested payment accurately reflects the actual work in place. Many components Schedule of values Certified payrolls Small/minority business utilization reports Lien releases Offsite storage of materials

The Payment Application

Schedule of Values

Contract Changes Types Owner requested Unforeseen or differing site conditions Design error or omission Required through process of RFI’s and submittals Weather related Other Sources of Change and Designators link

Sources of Change and Designators

Change Order Process A change is initiated and a proposed modification is issued by the designer – or a potential change order (or a request for equitable adjustment) is submitted by the contractor Contractor submits pricing for review CM reviews pricing for completeness and fairness CM negotiates final pricing with agreement from the owner and the designer. Once one or more proposed changes are negotiated, the owner or an authorized representative issues a contract modification or contract change which is executed by the designer, the contractor and the owner. Contractor can not claim payment for any change work until fully executed and approved by the owner.

Change Review and Negotiations All changes must consider: Labor Materials Equipment Allowed overhead and profit Time impacts Sufficient backup must be submitted to support these considerations Time sheets Material invoices Equipment logs Supporting impact schedules

Change Review and Negotiations Change Negotiations CM records all negotiations in writing Get concurrence from the designer What happens when you can’t agree? Force accounts Construction change directives Higher management involvement

Additional Resources There is a lot to learn! Don’t hesitate to reach out for help. The CM Best Practices Team Other MBP project managers Your supervisor Your mentor Always maintain the MBP values Teamwork – Quality – Hardworking – Integrity – Community – Forward Looking

Questions

Thank you!