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									Construction Contract Administration
            Randy Over
District Construction Engineer, ODOT District 12




      Ohio Department of Transportation
Construction Contract Administration

• Getting Contract Administration off on the Right
  Foot….. Prior to PreCon
   – DBE Goals
      • ODOT Qualified DBE’s
      • Total $s Meet Goal or….
      • Approved Waiver
   – Qualified Staff
      • Names and qualifications of engineers and inspectors
      • Testing Lab is AMRL certified
Construction Contract Administration

• Getting Contract Administration off on the Right
  Foot….. Prior to PreCon
   – Make sure District Construction & LPA Coordinator are
     involved in PreCon planning, 2 weeks prior to meeting,
     invitations sent
   – Draft invoice from District Construction, review funding
     amounts and categories w/DCE or designee
   – Hold stand alone PreAward meeting if LPA and/or
     consultant is new to process, project is unique, etc.,
     otherwise complete by phone or combine w/PreCon
Construction Contract Administration

• Getting Contract Administration off on the Right
  Foot….. Prior to PreCon
   – Last, but not least DBE/EEO/Prevailing Wage
     personnel understand Federal and State
     requirements, District personnel available to answer
     questions, “shadow” LPA/consultant personnel
Construction Contract Administration
                  ABC Bri d g e Co nsul tan ts , LLC                  1909 Portage Path
                  (330) 775-1909, Fax (330) 775-1910                          hio
                                                                      Akron, O 44308



Example           March 15, 2006

                  Randall S. Over, P.E.
                  District 13 Construction Engineer
                  Ohio Department of Transportation

PreCon/PreAward   Columbus, Ohio 43333

                  Re: BAB-Slagle Street, Local Let Project 06N001; PID 80001



Letter
                  Dear Mr. Over:

                  Based on our phone conversation, we have scheduled a combined Pre-Aw ard and
                  Preconstruction Conference on Apr il 1, 2006. The meeting will take place at the Hillm an
                  Heights City Hall. The Pre-Awa rd meeting will occur first at 9:00am, followed by the
                  Preconstruction Conference at 10:00am with the contractor.

                  In terms of the City’s project manage ment team for this project, it is as described in
                  previous correspondence including Construction Project Engineer David J. Smith, P.E. of
                  our office. Testing Services will be performed by Universal Testing of Columbus, Ohio.
                  We have ve rified that they are AMRL certified. All Prevaili ng Wage and DBE
                  compliance efforts will be conduc ted by our office.

                  The contractor, Bridges -R-Us, Inc. has already submitted approved JMF’s for this project
                  as well as a list of subcontractors. Due to specialty work included in the project, the
                  contractor requested and was granted a DBE Goal Waiver of 2%, resulting in a new goa l
                  of 5%. A list of DBE contractors and suppliers will be presented at the meeting. We
                  have already reviewed the names and they are currently approved by ODOT.

                  Your office has kindly submitted a draft of the first invoice on which we will complete on
                  the City’s letterhead for your approval and payment. We will require some exp lanation
                  of the 30 or so forms submitted to this office as examples.

                  We look forward to seeing you and your Construction Monitor, Michael J. Jones on Apr il
                  1, 2004.

                  Respectfully,


                  Terry M. O’Conner, P.E.
                  Chief Construction Engineer

                  C: Ronald Overmaher, Mayor
                  Cairn Cuchmark, City Engineer
Construction Contract Administration
           April 1, 2006

           Pre-Award Meeting Outlin e
           BAB-Slagle Street

Example
           PID 80001

           Discussion Topics:



PreAward
           1. Names, qualifica tions, role s of en gineering, inspection and other staff
                  David J. Smith, P.E., Construction Project Engineer ( CPE), Universal Te sting of Columb us,
                  (AMRL Certifie d)

           2. Preconstruction Confere nce, Progre ss Meetings



Outline    3. Revie w of E nvironmental Commi tments

           4. ODOT support and involvement Š Michae l J. Jones, Construction Monitor (CM),
                 Jeffery A . Humphrey, Area Engineer (AE), Doreen Enders, Distric t Testing, Viole t Shepherd,
                 Dis trict EEO/DBE/Prevailing Wage

           5. Contractor and railr oad forc e account payment & LPA reimbursement

           6. Change Order Revie w Process Š ups and downs, documented process for es tablishing new items,
                  ODOT ap provals

           7. Maintenance of traff ic require ments

           8. Railr oad force acc ounts, temporary cr ossings, flagger services-status

           9. Utility re locations-status

           10. Construction sc hedule tracking, time extensions, liquidated damages

           11. Claims Management Process Š Chain of co mm and, reviews prior to le gal act ion

           12. Materials Management Process Š Frequency of te sts, ODOT JMFÕ certifie d materia l sources, process
                                                                           s,
                   of resolving fai led tests

           13. Prevailing Wage, EEO & DBE C omp liance req uirements Š 7% DBE Goal
                   Fie ld Intervie ws, 30% Payroll Wa ge Checks, DBE Sub Comm ercia lly Usefu l Function Revie ws,
                   Quarterly Reports for DBE Goals

           14. Documentation Process

           15. Public re lations, damage cla ims resolution Š contact na me for ODOTÕ PIO
                                                                                     s

           16. Final Inspection, acceptance , project closeout procedures Š Jim Musia l part of t he off icia l final
                   inspection an d DBE aff idavits
Construction Contract Administration

• Having a successful PreCon…. Best Practices
   – Contractor comes prepared with….
      •   List of subcontractors
      •   List of suppliers (ODOT approved)
      •   List of proposed JMF’s
      •   Proposed schedule showing important milestones
   – Everyone prepared with….
      • Contact info and sign-in sheet
      • Contractor’s and LPA/Consultants Decision Trees and hierarchy to
        resolve disputes
   – LPA/Consultant
      • Tape recorded and/or minutes taken and circulated
      • Rep of Design Consultant, Testing Lab, ODOT CM, ODOT LPA
        Coordinator, District EEO/DBE/Prevailing Wage, LPA
        EEO/DBE/Prevailing Wage personnel
Construction Contract Administration

• The First Shovel of Dirt Has Moved….Best
  Practices as the project moves forward
   – Weekly submissions of payrolls
   – Completion of Daily Diaries
   – Weekly, Biweekly or Monthly Progress Meetings
     including Construction Monitor (CM)
   – Materials are checked against ODOT certified
     materials lists
   – JMF’s are ODOT approved
Construction Contract Administration
Example Job Mix Formula (JMF)
Construction Contract Administration

• The First Shovel of Dirt Has Moved….Best
  Practices as the project moves forward
   – Through District Testing, OMM involved for steel fab,
     concrete beam shop approvals, if there is a timely
     request and staff is available
   – Track disposition of failed materials
   – Track materials use against PreCon suppliers
Construction Contract Administration

• Getting Everyone Paid….Best Practices for submitting
  invoices and getting approvals
   – Aim for a 30 day turnaround for all parties….
       • Daily Diaries w/quantities
       • LPA, Consultant and ODOT reviews in parallel
       • 10 working days for ODOT to approve and submit for reimbursement
         or direct pay
       • Central Office turnaround 10 working days
       • Include only approved change orders
       • Don’t pay for it if it isn’t acceptable (don’t rely on retainage)
       • Don’t include retainage
       • Clearly note 100% local items
Construction Contract Administration

• Getting Everyone Paid….Best Practices for submitting
  invoices and getting approvals
   – Consultant & LPA Staff Invoices
       • ODOT approved overhead rates
       • Summary sheet
       • Include timesheets and/or monthly reports
       • Request for increases must be accompanied by justification, project
         completion date extended, extensive extra work, change in overhead
         rate mid-project, etc.
       • Should be in the range or 10-15% of contractor payments
   – Requests to District Construction Offices
   – Plan for Encumbrance Increases in advance…..
   – Proof of matching funds paid
Construction Contract Administration
              LPA-AU10B




Example
                                                     City of Hillman Heights, Ohio

                 Ronald Overmaher, Mayor                                                                                    Cairn Cuchmark. P.E., P.S.
                                                                                                                                        City Engineer



Invoice for                                          Local Let Summary & Payable Invoice


Contractor    Remit To:                  BAB-Slagle Street
                                         Bridges R Us Inc
                                         Bridges R Us Lane
                                                                                                 Invoice No.
                                                                                                 Date:
                                                                                                 Agree. No.
                                                                                                                            1 CO
                                                                                                                            1-Jul-06
                                                                                                                            29999
                                         Middleton Heights, Ohio                                 FAP No.                    E066(666)
                                         45678                                                   Enc. No.                   599998
                                                                                                 PID                        80001
                                                                                                 Proj. No.                  06N001


              The City Of Bryne certifies that the work as shown on this invoice has been performed and in no
              way represents any degree of duplication of payments that have been or will be received.

              LPA's Signature____________________________________                                Date: ______________

              Please indicate Final Invoice by Initialing: _________


                  Payment Item             Participation %            Total Cost to Date           Previous Payments          Amount Due This Invoice
              Construction STP                                                     $67,000.00                      $0.00                                $67,000.00
              Construction Enh                                                      $5,000.00                      $0.00                                 $5,000.00
              Engineering STP                                                           $0.00                       $0.00                                    $0.00
              Engineering Enh                                                           $0.00                       $0.00                                    $0.00
              Less LPA                                    20%                      $14,200.00                       $0.00                               $14,200.00
              Less LPA                                   100%                        $1,000.00                      $0.00                                $1,000.00
              Totals                                                                $56,800.00                     $0.00                          $56,800.00

              Max Amount                                                          $700,000.00
              Funds Encumbered                                                    $671,000.00
              Construction                              599998                    $610,000.00
              Construct Engineering                     599999                     $61,000.00
              Funds Remaining                                                     $643,200.00




              The District has reviewed this invoice in accordance with the Departments written procedures and recommends
              payment of the amount shown above.

              By:___________________________                     Date: _____________
              District Approval



              LPA-AU10B (Original & 2 copies)
              2 Copies of Supporting Documentation

              2-Apr-03


                                             The City Where Roebling Lived for 30 Days
                                                 1955 Bridges Lanes, City of Hillman Heights, Ohio 45779
Construction Contract Administration

Example
              LPA-AU10B

                                                      City of Hillman Heights, Ohio

                  Ronald Overmaher, Mayor                                                                                     Cairn Cuchmark. P.E., P.S.


Invoice for
                                                                                                                                          City Engineer




                                                      Local Let Summary & Payable Invoice

Consultants   Remit To:                   BAB-Slagle Street
                                          City of Hillman Heights
                                                                                                  Invoice No.
                                                                                                  Date:
                                                                                                                              1 CE
                                                                                                                              1-Jul-06


& LPAs
                                          1955 Bridges Lane                                       Agree. No.                  29999
                                          Hillman Heights, Ohio                                   FAP No.                     E066(666)
                                          45779                                                   Enc. No.                    599999
                                                                                                  PID                         80001
                                                                                                  Proj. No.                   06N001


              The City Of Bryne certifies that the work as shown on this invoice has been performed and in no
              way represents any degree of duplication of payments that have been or will be received.

              LPA's Signature____________________________________                                 Date: ______________

              Please indicate Final Invoice by Initialing: _________


                  Payment Item              Participation %            Total Cost to Date           Previous Payments           Amount Due This Invoice
              Construction STP                                                      $67,000.00                  $67,000.00                                    $0.00
              Construction Enh                                                       $5,000.00                   $5,000.00                                    $0.00
              Engineering STP                                                        $7,500.00                        $0.00                               $7,500.00
              Engineering Enh                                                            $0.00                        $0.00                                   $0.00
              Less LPA                                     20%                      $15,700.00                   $14,200.00                               $1,500.00
              Less LPA                                    100%                        $1,000.00                   $1,000.00                                   $0.00
              Totals                                                                 $62,800.00                  $56,800.00                           $6,000.00

              Max Amount                                                           $700,000.00
              Funds Encumbered                                                     $671,000.00
              Construction                               599998                    $610,000.00
              Construct Engineering                      599999                     $61,000.00
              Funds Remaining                                                      $637,200.00




              The District has reviewed this invoice in accordance with the Departments written procedures and recommends
              payment of the amount shown above.

              By:___________________________                      Date: _____________
              District Approval



              LPA-AU10B (Original & 2 copies )
              2 Copies of Supporting Docum entation


              2-Apr-03


                                                 The City Where Roebling Lived for 30 Days
                                                  1955 Bridges Lanes, City of Hillman Heights, Ohio 45779
Construction Contract Administration

• So there is a changed condition, what next….
   –   Extend existing bid items….
   –   Extra Work…. No existing bid item
   –   Funding Caps and Contract limits?
   –   Contractor won’t agree to a price?
   –   Hope and pray…..
   –   Justification to ODOT for additional funds….
Construction Contract Administration

• Justification to ODOT for additional funds….
   – Establishment of a fair price….
       • Extend bid items
       • Establish a new bid item, similar work on other contracts, cost
         analysis
       • Last choice, force account
   – Required to complete project as scoped
   – Doesn’t impact environmental approvals/permits
   – Communication to CM before work begins
       • Approval can be verbal, but noted in writing, via email or by letter
   – Summary of smaller changes so costs “reconcile”
Construction Contract Administration

• And the Contractor Yells, “Unless I am paid for the claim
  right now, I’m walking off the job!” What to do if you
  can’t agree….. And how to not get there in the first
  place……
   – Make everyone follow an administrative process established prior
     to bid, preferably as part of the contract
   – Use comparatives, historical data such as days in the bid for
     traffic control, prorate the days….
   – Resolve the changed condition if at all possible without stopping
     work, otherwise home office overhead claims could occur, keep
     the contractor working
Construction Contract Administration

• Claims solutions and avoidance
   – Pay estimates and changes promptly
   – Seek third party assistance, experts that both parties trust
   – Use formal Partnering
   – Don’t write yet another letter when a phone call or a personal
     visit has a chance to break the deadlock
   – Completing by the completion date is to everyone’s benefit, don’t
     be afraid to pay for some OT, MS concrete, etc., it builds goodwill
     with the public and the contractor
   – Before the attorneys take control, consider mediation, arbitration,
     etc., ODOT has names
Construction Contract Administration

• And one last comment on Claims…..
   – A contract is overall, an equally shared agreement although
     various specific responsibilities are not equally shared. If there is
     no clear solution yet there is agreement there was a changed
     condition, split shared responsibility items in half.
Construction Contract Administration
                ABC Bri d g e Co nsul tan ts, LLC                    1909 Portage Path
                (330) 775-1909, Fax (330) 775-1910                           hio
                                                                     Akron, O 44308


Example         June 15, 2006

                Randall S. Over, P.E.


Justification
                District 13 Construction Engineer
                Ohio Department of Transportation
                Columbus, Ohio 43333


Letter
                Re: BAB-Slagle Street, Local Let Project 06N001; PID 80001

                Dear Mr. Over:

                As discussed in our phone conversations with your Construction Monitor, and at the last
                progress meeting, the condition of the substructure is worse than depicted in the plans.
                Also, ODOT has recently adjusted our overhead rate upwards based on a new accounting
                format. The following pa ragraphs describe the financial im pacts in detail as you have
                requested.

                Substructure Repairs: The plans included approximately 15 c.y. of concrete for repairs to
                pier caps for a total of $9000.00 . The contractor is required to perform additional
                forming and supporting of the structure to make repairs significantly below the pier caps.
                As such, the contractor will not accept additional cubic yards of concrete repairs at the
                bid price. Based on ODOT’s Summary of Contracts Awa rded, we have agreed to a new
                unit price for the original and additional work of $850/c.y. for a total of 45 c.y. This
                results in a contract increase of $29,250.00. We have evaluated the remaining areas and
                believe this will be sufficient. Since we did not prepare the plans, you might want to
                contact your design con sultant regarding this issue. However, the additional work, even
                if included in the original bid, would have been bid close to this price. This adjustment
                will be listed in the next invoice as Change Order #1.

                Overhead Rates: For calendar year 2005, ODOT approved an overhead rate of 239%.
                For calendar year 2006, the approved rate is 245%. Based on our contract with the City
                of Hillm an Heights, we respectfully request the new rate be applied for reimbursement
                for the month of June forward. The anticipated increase is approximately $10,000.00
                through the end of this year.

                Should you require additional information, please do not hesitate to contact this office.

                Respectfully,

                Terry M. O’Conner, P.E.
                Chief Construction Engineer
                C: Ronald Overmaher, Mayor
                Cairn Cuchmark, City Engineer
Construction Contract Administration

• Adequate DBE/EEO & Prevailing Wage Contract
  Administration……
   – Weekly payroll submissions and wage checks
   – Track the DBE $s against goals, approved subs and suppliers
     each pay request
   – DBEs actually doing the work, if not involve District
   – Monthly or quarterly DBE reports to District EEO/DBE
   – Jobsite EEO & Prevailing Wage Posters
   – Regular employee interviews, proper records
   – Complaint follow-through w/guidance and communication to
     District EEO/DBE or Prevailing Wage
 Construction Contract Administration

Example
Monthly
Prevailing
Wage
Report
Construction Contract Administration

Example
DBE
Quarterly
Report
Construction Contract Administration

Example
EEO/DBE/Prevailing
Wage Interview Form
Construction Contract Administration
The Project is almost complete…..
Construction Contract Administration

• So the project is open to traffic, but all that “paperwork”
  remains to final the project…..
   – Final Inspection by contractor, LPA, consultant, ODOT, official
     punchlist is developed
   – All claims resolved or dismissed, both with the contractor and
     with 3rd parties
   – Documentation compiled for failed materials have been removed
     or a deduct made
   – Contractor and DBE subs/suppliers sign affidavits
   – Final certification is signed and sealed by the CPE
Construction Contract Administration

Example
DBE Affidavit
Construction Contract Administration

• Remaining “paperwork”…..
   – Upon completion of punchlist, ODOT completes the C-85
   – Final estimate is processed when all required paperwork is
     completed
   – District notifies Central Office to close all encumbrances
Construction Contract Administration

Example
Final Certification
Construction Contract Administration

Example
C-85
All personnel and their respective employers
 portrayed in this example are fictional. Any
   resemblance to an existing or proposed
   project and involved personnel is purely
                 coincidental.

								
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