Certificate of Compliance Template by iax30592

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									Construction Oversight

Ensuring quality homes for service
members and their families
   Goals and Objectives
   Oversight Approach
   Roles and Responsibilities
   Key Legal Documents
   Initial Development Phase (IDP) Components
   Levels of Construction Review
   On-site Construction Surveillance
   On-site Discrepancy Identification and Correction
   Tools and Reporting Requirements
   Formal Dispute Resolution Process
   Bottom Line

            The Air Force no longer owns the houses, but retains the inherent
            right to ensure the transaction documents are adhered to.
Goals and Objectives
Like all Air Force housing privatization oversight functions, the
primary goal of Construction Oversight is to ensure compliance
with the Project’s transaction documents.
 As the Air Force shifts from MILCON to Privatized housing
  construction, the oversight approach must reflect this change.
 Construction oversight provides the mechanism to identify and resolve
  development issues early.
 On-site construction surveillance verifies the Project Owner’s quality
  assurance and quality control processes are working.
 Ultimately, construction oversight protects the Air Force’s interest in
  providing quality housing to service members and their families.
Oversight Approach
Construction oversight is an Asset Level responsibility. However,
the MAJCOM will continue to assist Base Asset Management and
the Portfolio Level will provide training and additional assistance
upon request.
   Be welcoming
   Encourage partnering
   Facilitate start-up processes
   Leverage lessons learned
   Engage in proactive communication
   Resolve issues informally and at the lowest level
   Request assistance if necessary
Roles and Responsibilities
Under Privatization, the Project Owner is ultimately responsible for
adherence to codes, laws, and the transaction documents.

 The Asset Manager is responsible for providing oversight of the Project
  Owner’s construction compliance.
 Asset Managers should set the tone regarding partnering, teamwork,
  and proactive communication.
 If a Construction PM is assigned/contracted, this person will have day-
  to-day responsibility for managing construction oversight.
 The Asset Manager / PM will ensure routine construction progress
  partnering meetings take place.
 The Asset Manager / PM and contracted construction oversight
  personnel will review design plans on behalf of the Air Force.
Roles and Responsibilities (cont.)

 If necessary, the Asset Manager / PM will provide any written “Design
  Criteria Exception Notices”.
 The Asset Manager / PM will facilitate issuance of “Notices to Proceed”
 The Asset Manager / PM will monitor construction progress and track
  excusable delays.
 The Asset Manager / PM will manage contracted on-site construction
  surveillance personnel and ensure any QA/QC issues are properly
  reported to the PO’s Construction Supervisor and appropriately
Key Legal Documents
In order to manage the construction oversight process effectively,
Asset Managers / PMs, must become completely familiar with the
following transaction documents:
 Ground Lease                   Unit Occupancy Plan
 Construction                   Utility Services Plan
  Management Plan
                                 Final Design Plans
 Community Development
                                 Historic Preservation Plan
                                 Demolition Plan
 Facility Design and
  Construction Plan              Environmental Management Plan
 Quality Control Plan           Transition Plan
Initial Development Phase (IDP) Components
The IDP commences when the transaction documents are signed
and ends when the construction team demobilizes, followed by
issuance of government certificate of compliance/completion.
         Initial             Design            Construction    Closeout &
       Partnering            Phase               Phase        Demobilization

The Portfolio Management Team will conduct several training,
assistance, and assessment visits during the IDP to include:
   Asset Management Start-Up (AMSU) Visit
   Initial Development Period (IDP) Assistance Visits
   Annual Site Visits (ASV)s
   MRC Attendance Visits - upon request
Initial Development Phase (IDP) Components
During Initial Partnering, good first impressions are essential. This
is the time to build rapport and get started on the right foot.

         Initial           Design            Construction         Closeout &
       Partnering          Phase               Phase             Demobilization

1.   Host initial partnering meetings and “Pre-Design Conference”
2.   Exchange key personnel contact information lists
3.   Review start-up issues and establish priorities
4.   Formalize document/official correspondence routing process
5.   Establish weekly meeting schedule
6.   Explain relevant installation Standard Operating Procedures (SOPs )
7.   Offer assistance as necessary
Initial Development Phase (IDP) Components
During the Design Phase, the Air Force participates in the design
review process and verifies that the plans are in compliance.

         Initial            Design             Construction          Closeout &
       Partnering           Phase                Phase              Demobilization

1.   Review and discuss transaction documents, design responsibilities, & processes
2.   Review and discuss local permitting procedures, timelines, & requirements
3.   Review and discuss local & federal code requirements applicable to project
4.   Review and discuss “65% and 100% Plans” (document gov’t comments)
5.   Resolve issues informally during routine partnering meetings (meeting minutes)
6.   If necessary, provide written “Design Criteria Exception Notices”
7.   Ensure adherence to the “Plan Dispute” resolution process
8.   Issue Govt Acceptance of “Final Plans” and issue written Notice to Proceed (NTP)
9.   Host the formal “Pre-Construction Conference”
Initial Development Phase (IDP) Components
During the Construction Phase, the Air Force conducts daily on-site
construction surveillance and participates in construction meetings.

         Initial            Design           Construction        Closeout &
       Partnering           Phase              Phase            Demobilization

1.   Facilitate construction personnel and equipment mobilization
2.   Monitor job site safety and environmental compliance
3.   Conduct day-to-day on-site construction surveillance*
4.   Continue to resolve issues during routine partnering meetings (document in
     meeting minutes)
5.   Monitor phasing plan, unit delivery schedule, and track delays
6.   Inspect and approve delivered units and issue “Certificates of Acceptance/
             * On-site construction surveillance discussed in detail on
             upcoming slide
Initial Development Phase (IDP) Components
During the Closeout & Demobilization Phase, the Air Force verifies
the PO’s cessation of construction activities and site clean up.

         Initial            Design             Construction         Closeout &
       Partnering           Phase                Phase             Demobilization

1.   Verify all construction equipment, machinery, and temporary
     improvements are removed
2.   Verify all construction refuse and excavated materials are removed
3.   Secure all temporary construction ingress and egress routes
4.   Issue final completion/compliance certificate for complete project to
     include all neighborhoods and site work
Levels of Construction Review
Under Housing Privatization, multiple levels of review ensures that
construction is completed in accordance with the plans,
specifications, and jurisdictional codes for the project. The
following levels of review are conducted throughout the Project’s
development period:

   Project Owner Quality Control
   City or Local Municipality (as appropriate/applicable)
   Lender / Bank Inspector (Bondholder’s representatives)
   Government Oversight and Compliance
On-site Construction Surveillance
Under Privatization, Title II as we know it no longer exists.
However, the Air Force remains involved in the oversight process.
Title II Inspectors:            Construction Surveillance Personnel:
  Manages Design Reviews         Participates in Design Reviews
  Inspects drawings / work       Participates in Construction meetings
  Ensures compliance             Monitors work progress
  Provides Quality Assurance     Monitors transaction doc compliance
  Acts as COR / stops work       Checks code compliance
  Approves submittals            Liaisons between Owner and Base
  Accepts work segments          Provides day-to-day assistance to
  Handles dispute resolution      installation functional staff
  Performs final acceptance      Reports discrepancies to base staff
  Authorizes payments            Provides routine written progress and
                                   issue report
On-site Discrepancy Identification and Correction
Under Housing Privatization, the Project Owner is fundamentally
responsible for QA / QC. The Air Force’s oversight approach first
allows the Owner’s QA / QC process to work unless safety is a
 Construction Surveillance personnel identifies a discrepancy
 Construction Surveillance personnel reports discrepancy to Asset Manager/PM
 Asset Manager/PM and/or Construction Surveillance personnel notifies
  Construction Supervisor
 Construction Supervisor discusses issue with Project QA / QC Inspector and
  takes corrective action
 Construction Surveillance personnel verifies discrepancy is corrected
 Construction Surveillance personnel notifies Asset Manager/PM of correction
 Asset Manager/PM monitors and documents discrepancy trends
 Asset Manager/PM facilitates dispute resolution process
            * Asset Managers and PMs are responsible for dispute resolution,
            not Construction Surveillance Personnel.
Tools and Reporting Requirements
The Asset Manager’s Toolkit contains several useful tools and
templates including:
 Schedule Monitoring Tool          Construction Deficiency Notice
 Delay Tracking Tool                Template
 Design Criteria Exception Notice  Final Design Acceptance Template
  Template                          Gov’t Certificate of Compliance /
 Notice To Proceed (NTP) Template   Acceptance Template
Asset Manager’s will report construction status information to
installation leadership and the Portfolio Level that may include:
   Construction Surveillance Reports
   Construction Milestone and Unit Delivery Variance Report
   Construction Progress Meeting Minutes
   Detailed Information Concerning Delays or Disputes
Formal Dispute Process
If informal efforts do not resolve an issue, the Asset Manager is
responsible for ensuring formal dispute processes are followed.
           Typical Design / Build Agreement Dispute Escalation Process

     Written               Field Level          Non-binding               Binding
     Notice                Resolution            Mediation               Arbitration

 The Air Force must provide a written Design Criteria Exception Notice that
  describes the inconsistency to the Project Owner
 Commander has final and conclusive decision authority for disputes valued
  at $10,000 or less
 For disputes valued at more than $10,000, the Commander has decision
  authority, but the finding may be appealed
Bottom Line
Construction crews will do a better job when the Air Force
oversight process is in place and daily on-site construction
surveillance personnel are present.
 Proactive communication and teaming are essential for success
 Through partnering, disputes can be avoided or remedied at the lowest levels
 Unit delivery dates are important, but construction schedules are flexible
 Final unit turnover delays may impact revenue forecasts and eventually may
  negatively impact financial health and potentially available development funds
 Documentation of all required Project Owner notifications and changes to
  Operating Agreement Exhibit Plan requirements must be formalized in writing
  and provided to AFCEE/HDP Portfolio Management for document management

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