CVE 4070

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CVE 4070 Powered By Docstoc
					CVE 4073/5073
Construction Cost Estimating
Class #2: Contract Documents
 Prof. Ralph V. Locurcio, PE
Part I – Contract
        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
        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”.
              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.
           The Drawings or Plans…

   Define the “geometry” of the project and all of it’s
   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.
       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 contract takes precedence over the specifications.

   The specifications take precedence over the plans.

   Builder/contractor must notify the owner’s rep of any
    conflict he encounters.
    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!
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
            Common spec formats…

   Construction Specification Institute (CSI)
       Commonly called “CSI Format”
       17 Division breakout of work items
       Organized by construction trades
       Typically used for construction of “buildings”
       Widely accepted by owners & builders
                 CSI Format…
1. General requirements              10. Specialties
2. Site work & utilities             11. Equipment
3. Concrete                          12. Furnishings
4. Masonry                           13. Special construction
5. Metals                            14. Conveying systems
6. Wood & plastics                   15. Mechanical
7. Thermal & Moisture Prot.          16. Electrical
8. Doors & windows                   17. Instrumentation & Controls
9. Finishes

See pp.156-157 Fisk for detailed breakdown
     Industry specific specs…

   ASCE Civil Engineering Format
   State & Federal DOT Highway Format
   City & County Civil Formats
   AASHTO Standard Hiway Format
   Non-DOT Standard Formats
Standard Specs & Contract Provisions
   Standard Specification:
       General contract conditions
       Standard technical specs
       Covers all possible highway & bridge projects
       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 & terms    7. Legal relations & public
    2. Bidding req & cond     8. Prosecution & progress
    3. Award & execution      9. Measurement & payment
    4. Scope                  10. Construction details which add
    5. Control                modify or delete standard spec
    6. Control of material
Part II – Specifications
      in Contract
    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
Most Common Spec Formats…
   Engineers Joint Contract Documents
    Committee (EJCDC)… recognized by ACEC,

   American Institute of Architects (AIA)

   International Federation of Consulting
    Engineers (FIDIC)
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
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

   Estimator must “read” the specs
       Specs not a legal document for claims & disputes
       Good communications between writer & inspector needed
       Feedback to spec writer is essential
Look for: 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
Look for: 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
       Architects 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
        Look for: Materials specified…
   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
               Look for: Subcontracts…

   Concept of “one-to-one” authority
       PM/CM deals solely with the General Contractor.
       General Contractor is responsible to hire subcontractors for the job.
       Selection includes evaluation of the subcontractor’s competence
       Responsibility 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
Look for: Shop Drawings & Samples…
     Function 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
     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
Last Slide…