1. Class #1 Contract Delivery Systems
CONST 260
Class #1
Contract Delivery Systems

2. Three Management Facts!
You have to:
Know your project
Be well prepared
Believe!

3. If you don’t believe, who will?
What do I have to ‘believe’?
Believe:
In your project in all ways! (what does that mean?)
In your team! (what does that mean?)
If you don’t believe, who will?

4. Which of these are going to work?

5. Things to Believe in! What things are key to a great project?
Schedule?
Pricing?
Payment?
Smooth Processes?
Smooth Communication?
Lack of Conflict?

6. What causes conflict?

7. Basics of Project Management
Plan
Implement
Monitor
Evaluate and Modify
Implement Revised Plan
Implement Revised plan
Moni………………………..tor…………..Repeat!

8. A Successful PM Systematic Planning Organization
Management of the Team
Documentation
Management of the team?
Endearing Loyalty!
Trust!
Note: If you have those two things, the rest follows

9. Contract Delivery Systems
First: The Standard Team?
Owner
Designer
Constructors

10. The Contract
What does the contract define?
Everything!

11. Contract Delivery Systems
Force Account
General Contract or Traditional Contract
Agency CM
CM ‘at risk’
Design- Build

12. Force Account Small and Maintenance Projects
Usually T&M at agreed rates
Advantage: no bidding or timely negotiations
Change Orders? Ongoing work?

13. General Contract or Traditional
Competitive bid
Stipulated Sum Contract
Highly defined scope
Solid Contract Document Package

14. Agency CM Owners representative No vested interest CM services only
Brought in early
Helps Select: design team, pre-con services, GC selection, owners rep during project

15. CM ‘at risk’ Combine CM and General Contractor under one contract
Pre-con Services
Constructability Review
Value engineering
Fast Track, Negotiated work, Cost plus, Relationship Based

16. Design-Build One entity does it all: Design and Build Very Expedient
Can start with incomplete design
Often with a focused budget

17. Communication Has to: be formal and standardized Move smoothly
Transmitted with a minimum of work
Be based on a ONE to ONE communication format!

18. A ONE to ONE Communications format
NOT a ‘multiple person’ communication!
ONE entity (company?/ owner?)
ONE contact
‘Authorized Person’
A sole responsible person!

19. Apparent Authority Issues
CONTROL = RESPONCIBILITY
If you act like you are in control, you bought that responsibility?
Yes and no!
Yes, if it affects you poorly!
No, if it affects you poorly!
This issue can sting you both ways!

20. Apparent Authority Do you get paid?
An owner (designated representative) is out of town, her husband says ‘do this extra cost item!’
Do you get paid?
An Architect, not the designated representative, says: ‘rip this wall out!’
Maybe??????? Is Maybe good enough?

21. Who owns any possible problems?
Apparent Authority
A PM tells the plumber: ‘use these unspecified fittings!’
Who owns any possible problems?
A PM directs the painters workers in how they get their work done. ‘get that area done now!’. A painter falls from the project and is injured
Who owns it?

22. Avoid all Apparent Authority
All Authority is in writing (contract)
Disclaim Apparent Authority in all contracts
Live by the rules!

23. Final Apparent Authority example:
“you are behind schedule on this excavation, I want you to bring in bigger or more machines immediately!”
Or:
“you are behind schedule on this excavation and will not complete work on time, how are you going to correct the situation?”

24. A manageable process! You have to believe in a manageable process
You have create a manageable process
If you don’t create a manageable process, who will?
Your replacement?

25. Your replacement will! In Summary: YOU create the Manageable Process
EVERYTHING is in writing
To the DESIGNATED REPRESENTATIVE
If you don’t do it well……..
Your replacement will!

26. Questions?
Yes No
Maybe….??????