CVE 4070 Construction Engineering Contract Documents Prof. Ralph V. Locurcio, PE

Looking ahead 8/181 Introduction, course requirements 8/202Project Organization & Stakeholders 8/253Contract Types & Construction Planning 8/274Work Breakdown Structure; HW #1-WBS Handout 9/35Construction Contract Documents 9/86Preconstruction & Bidding Processes; HW#2-Write Resume due 9/107WBS; Shop Drawings & Inspection ProcessesWBS due 9/158Tour Construction Project; Construction Handout Resume due 9/179Project Organization & Responsibilities Resume due 9/2010Disaster Recovery Construction 9/2211Test #1 & Critique Note: all PPT are on

Project Organization…

Project Delivery Process… We are here

Part I – Contract Documents

Contract Documents… 1.The Agreement or Contract 2.The Specifications 3.The Drawings Important Note: Unless otherwise specified this list is the “order of precedence” of the contract documents

The Agreement or Contract…  The agreement is the legal document signed by the owner and the builder that outlines the terms under which the project will be built.  It includes such items as cost, time, management, reports, quality, penalties and all such details that define the owner’s “intent”.

Parts of a Contract  Scope of work  Terms & conditions

The Specifications…  Define the “qualitative” requirements of the project that is to be built.  Provide a detailed description of the performance features of all components of the project.  Describe the nature of the materials and the workmanship & procedures to be followed in constructing the project.  Include those aspects of assembly or construction that affect the performance of the components.

Components of a spec…  Instructions to bidders: May be part of General Conditions Proposal & bid format Bonding & certificates Affidavits  General conditions: Contract administration Correlation of documents Authority of parties Supervision Payment Damages Disputes  Technical provisions Installation or fabrication instructions Materials & performance criteria

General Conditions…  Specify procedures for contract admin  Not intended to change the contract  Typical provisions: Define terms used in contract docs Preconstruction matters Use/reuse of contract documents Contract times & schedule Changes Payments Suspension of work Dispute resolution Many more

Technical Provisions…  Three-part format assures consistency … Part I – General  Summary of work  Standards to be followed; ASTM, UBC, Federal, AWWA, ANSI, ACI  Building codes & permits; coordination between agencies  Submittals & shop drawings  Quality control  Temporary facilities & controls  Storage & protection Part II – Products  Quality of materials  Performance standards  Warranty & certification Part III – Execution  Assembly into the project  Forming & curing instructions  Finishing details

The Drawings or Plans…  Define the “geometry” of the project and all of it’s components.  Include the general form, dimensions and details of all project features that are to be fabricated on site.  Show the relationship of all components to each other.  May include details, notes and instructions that amplify the specifications.

Drawings in standard set… 1.Title Sheet 2.Index Sheet 3.Architectural (A) 4.Civil & site utilities (C) 5.Structural (S) 6.Mechanical (M) 7.Plumbing (P) 8.Electrical (E) 9.Fire protection (FP) 10.Finish schedules 11.As-built/record drawings

Construction Drawings

Architectural

Specifications

Door Schedule

Hardware

Structural

Plumbing

HVAC

Electrical Wiring

Symbols & Abbreviations

Agreement of plans & specs…  Plans are frequently updated as the design progresses.  Specifications may be written independently of the plans.  Specifications are very complex and detailed; some changes are missed.  Specifications are often prepared by different authors.  Master or standard specifications may have been used.  Project budget may not allow for proper coordination of plans & specs

Conflicts between plans & specs…  The specifications take precedence over the plans.  The contract or the specifications may state otherwise.  Builder must notify the owner’s rep of any conflict he encounters.  Owner’s rep or inspector must know the specs and observe the work.

Other Problems with specs…  Use of generalities… terms not “specific”  Scope of work issues… intent not clear  Unenforceable phrases or conditions… Ambiguity generally settled in favor of the builder!

Using Specifications

Construction spec formats…  Construction Specification Institute (CSI) Commonly called “CSI Format” 16 Division breakout of work items Organized by construction trades Typically used for construction of “buildings” Widely accepted by owners & builders

CSI Format… 1. General requirements10. Specialties 2. Site work & utilities 11. Equipment 3. Concrete12. Furnishings 4. Masonry13. Special construction 5. Metals14. Conveying systems 6. Wood & plastics15. Mechanical 7. Thermal & Moisture Prot.16. Electrical 8. Doors & windows17. Instrumentation & Controls 9. Finishes

Industry specific specs…  ASCE Civil Engineering Format  AIA Standard Specifications  State & Federal DOT Highway Format  City & County Civil Formats  AASHTO Standard Hiway Format  Non-DOT Standard Formats  International Federation of Consulting Engineers (FIDIC)

Standard Specifications

Benefits of using standard specs…  Produced by collaboration with government & industry; critiqued by AE & legal professionals.  Withstood test of time & experience; complete, up to date.  Accepted as fair & equitable, builders familiar with them, terms understood.  Tested in court  Result in more stable bid prices

Standard Specs & Contract Provisions  Standard Specification: General contract conditions Standard technical specs Covers all possible project types; highway & bridge May cover alternative methods  Special/Contract Provisions: Must accompany Standard Spec Adapts standard to a “specific” project Contains special provisions particular to the project Provides additions or deletions to standards

Special Provisions…  Info similar to CSI Divisions… Tailored to “civil” or heavy engineering works Tailor standard specs to a specific contract application  Part I-Proposal & Contract Notice Inviting Bids Bid formats & related items Agreement & related forms  Part II-Special Provisions 1. Definitions & terms7. Legal relations & public 2. Bidding req & cond8. Prosecution & progress 3. Award & execution9. Measurement & payment 4. Scope10.Construction details which add 5. Project Controls modify or delete standard spec 6. Control of material

Specs in Construction

Specs in Contract Admin…  Contract documents never perfect… Field condition vary from design assumptions Spec writers usually have no construction experience Specs sometimes out of date PM/CM must evaluate & respond Requires considerable judgment & experience  CM & builder must “read” the specs Specs not a legal document for claims & disputes Good communications between writer & inspector needed Feedback to spec writer is essential

Differing Site Conditions…  Unforeseen underground conditions Latent physical conditions; unknown or unusual Differ significantly from printed contract docs or data Require increased work not included in bid  Architect/Engineer’s responsibility in design Make “reasonable” subsurface investigations Advise builder of all available data & design assumptions Not responsible for 100% accuracy  Builder’s responsibility in bidding Not expected to perform subsurface investigation Become familiar with all conditions of site Cover risk with pricing & contingency  Federal Guidelines Pay for reasonable “compensable” conditions Reduces bidder’s risk & contingencies in contract  Sharing the risk Parties agree to a formula in contract documents

Materials used in the contract…  AE obligation to ensure that materials & products conform to those specified. Owner may claim negligence if components do not perform Care must be exercised in accepting “alternatives” Be especially aware of new or non-standard materials  Builder constantly seeking lowest market price for “acceptable” materials. Must prove that all materials used meet spec Must obtain owner’s (representative) approval to substitute May not submit alternatives during bidding process

Shop Drawings & Samples…  Function & Purpose of Shop Drawings Link between design & construction Show details of fabrication, assembly & installation Allow introduction of commercially tested products Show method of accomplishing “special” requirements Contracts usually require approval prior to ordering

Shop Drawings & Samples…  Approval of Shop Drawings Contract SPs usually specify list of shop drawings Builder must submit schedule of submissions Owner must “approve” submittals for conformance to specs Builder responsible for accuracy, means & methods, quality  Misuse of Shop Drawings Submissions may not change contract requirements or design intent Builder’s responsibility to conform, even if missed by AE/Owner review

Quality Control Process…  Must have a Quality Control Plan… an inspection" system”  Special considerations:  Timing of inspections; preclude delays  Protection of work in place  Most work is irreversible; i.e.. concrete, foundations  Logistical sequencing  Follow plans & specifications; changes not authorized  Report and correct errors & deviations from spec; documents  QC Staff must be qualified, trained & dedicated

Construction Inspections  Three phased inspection system  Preparatory inspection – meeting 1 wk prior  Pre-inspection – on site; prior to construction  Final inspection – after completion

Allowances & Tolerances…  No tolerance is poor management There are no “absolutes” in reality Design doesn’t require “absolute” compliance  Specified tolerances a better method Manufacturing always specifies tolerances Reasonable tolerances are justified PM/CM sets the standard in the field Practice would reduce bid prices

Dealings with subcontractors…  Concept of “one-to-one” authority PM deals solely with the General Contractor. General Contractor’s rep is the Construction Manager (CM) General Contractor is responsible to hire subcontractors.  Includes evaluation of subcontractor’s competence  Includes all acts & omissions of any sub General Contractor must have effective contracts, admin procedures & management  Architect & Owner/rep not responsible for how the Builder subcontracts the work

Stopping the work…  Work is defective… Owner’s right to stop work that is defective Contract provisions govern Communicate in writing Contractor may dispute  Unsafe conditions… Risk of death or serious injury Obligation of Owner’s rep and Builder Follow verbal order with written order  Risk of stopping work… Cost incurred for labor & materials Schedule slippage might incur damages Work must be torn out and rebuilt

That’s all for today…