Construction Administration: Contact, Contract or Crisis? AIA St. Louis CONTINUING EDUCATION WORKSHOPS

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1 Construction Administration: Contact, Contract or Crisis? Presented by the St. Louis Chapters of the: AMERICAN INSTITUTE OF ARCHITECTS CONSTRUCTION SPECIFICATIONS INSTITUTE AIA St. Louis CONTINUING EDUCATION WORKSHOPS Construction Administration Contact, Contract, or Crisis? Scott Whitcraft, RA, CSI, CCS, LEED AP Specifications and Technical Consultant D.L. Neuner Company STL-CSI Certifications Chairman AIA St. Louis CONTINUING EDUCATION WORKSHOPS 1

2 AIA is a Registered Provider with The American Institute of Architects Continuing Education Systems. Credit earned on completion of this program will be reported to CES Records for AIA members. Certificates of Completion for non-aia members available on request. This program is registered with the AIA/CES for continuing professional education. As such, it does not include content that may be deemed or construed to be an approval or endorsement by the AIA of any material of construction or any method or manner of handling, using, distributing, or dealing in any material or product. Questions related to specific materials, methods, and services will be addressed at the conclusion of this presentation. 3 What s in a name? The three practice models: Contact management: Interpersonal relations Contract management: Forms and procedures Crisis management: Reaction and response 4 2

3 What is it? Construction Contract Administration: The activities necessary to effect and determine the fulfillment of the Contract requirements by all parties. Established and controlled by the Contract Documents. Implemented by team effort with a common goal: A completed facility ready for its intended use. 5 How Documents define CA The entirety of Contract Documents define the cost, time and extent of the Work = the quality you intend. Technical provisions guard the process by requiring sound practices from everyone. Administrative requirements balance roles & responsibilities Contract Documents set the boundaries of performance. 6 3

4 DOCUMENT CONTROL 7 Starts with Standard Agreements AIA Family concept of documents. Advantage of commonly used legal terms, consistently applied. Integrated contracts balance team responsibilities. 8 4

5 Standardization Benefits: More quickly locate errors / deviations Identify missing elements Use terminology and concepts shared widely Information is located in the same place Allow consistent and repeatable communications Let s you focus on what counts. 9 Opportunities for standardization Contract forms and provisions Informational structure CAD standards Product standards Specification formats Field forms and communication 90% of all document creation procedures are the same across firms. Standardize, and focus on the 10% that matters. 10 5

6 Relationship of requirements 11 Information Management OMNIClass 11 Construction Entities by Function 12 Spaces by Function 13 Construction Entities by Form 14 Spaces by Form 21 Elements 22 Work Results 23 Products 31 Phases 32 Services 33 Disciplines 34 Organizational Roles 41 Information 42 Materials 49 - Properties 12 6

7 Developed by CSI UniFormat TM Uniform classification system for organizing preliminary construction information into a standard order or sequence on basis of systems and assemblies Numbering used for BIM object families. 13 UniFormat TM Project Description Categories 14 7

8 1 A Substructure 2 A10 Foundations UniFormat TM Example of Levels 3 A1010 Standard Foundations 4 A Wall Foundations 5 A CF Continuous Foundations 15 Developed by CSI, CSC Major revision in 2004 MasterFormat TM Organization structure for the subject matter for construction of a project, and operation, and maintenance of a facility

9 MasterFormat TM Divisions 50 division format Not organized around traditional subcontracts or construction trades Follows logical groupings of work results Sections 6 digit numbers (some 8) Section covers one portion of work results Broad and narrow scope versions Consistent location of information 17 MasterFormat TM Levels of decision making 1 Division 04 - Masonry 2 Section Unit Masonry (Broad Scope) 3 Section Clay Unit Masonry (Medium Scope) 4 Section Brick Masonry (Narrow Scope) 5 Section Brick Veneer Masonry (Very Narrow Scope) 18 9

10 AIA E203 Digital documents LOD development BIM: LEVEL OF DETAIL 19 The Contract Documents Basic Definitions Enumerated in Owner-Contractor Agreement Agreement Conditions of the Contract Drawings Specifications Addenda Other documents listed Modification Modifications Written amendment Change order Construction change directive Written order for a minor change 20 10

11 Characteristics of Drawings Drawings indicate quantitative requirements Size Form Quantity Relationships Generic representations Drawings are not: Dumping grounds for undeveloped decisions 21 Characteristics of Specifications Defines qualitative requirements for Product, materials, equipment Physical properties of products Performance requirements Standards of workmanship Describes administrative procedures Specifications are only one part

12 Elements of Project Manual Incorrectly referred to as the Specifications Collects technical provisions, administrative requirements, and Owner procurement procedures Content varies with Project Delivery Method No boiler plate allowed. 23 Four C s of Communication Proper grammar Simple sentence construction Avoid ambiguity Clear Correct Accurate and precise information Selected words to convey exact meanings Eliminate unnecessary words, but not at expense of clarity, correctness, or completeness Concise Complete Important information not left out 24 12

13 Coordinating Drawings and Specifications Drawings and specifications are complementary Shared terminology Drawing detail should be consistent with specification detail 25 Components of Coordination Organization Selecting team members Establishing management procedures Organizing information Execution Project design Production of construction documents Quality Assurance Meetings Checklists Communications Checking and crosschecking construction documents 26 13

14 Effective Coordination Is primarily a process of client decision tracking & validation Employs a clear communication process with milestones Stops to handle the hard stuff Prioritizes the interface issues between design disciplines Involves more of the team members as quality control Make a sufficient number of decisions proportionate to the stage of Work 27 MYTHS AND REALITIES OF TEAM BUILDING 28 14

15 Owner Team Responsible for regulatory, testing and finances Design Team Responsible for conformance to requirements Contractor Team Responsible for managing construction processes Supplier Team 4 TEAMS Responsible for product performance and delivery 29 TEAMWORK GOALS Contractually Balanced risk Effective communications Intentional coordination effort Increased productivity to meet schedules Reduced project costs Earlier completion Improved team morale Fewer claims and disputes 30 15

16 TEAM REALITIES Adversarial relationships / personalities Incomplete or inaccurate documents Unreasonable schedule requirements Unplanned and excessive changes Labor issues Delays in fabrication or delivery Poor AND poorly followed communications Ineffective construction management 31 Understand your Role Construction Documents B101 Owner: Authorizes Pays Accepts Architect: Reviews Interprets Rejects The Contractor A201 Reviews Conforms to Docs The Work Provides Materials & Labor Schedules, Organizes, Informs 16

17 BUILDING-IN COOPERATION Establish balanced contract requirements Ensure all parties understand their roles under the contract Clear and complete contract documents Act ethically Discuss the benefits of partnering with client before procurement phase. Use financial incentives carefully and equally. Create a team mission statement if needed. 33 PRE-CONTRACT PREPARATIONS 34 17

18 Life Cycle of Documents: Stage 1 Design stage Drawings Setting form to decisions Progressing at the speed of validation. Technical Specifications Gathering requirements Set performance criteria Organizing data Validating decisions 35 Construction Documents: Stage 2 Preparation for Bidding: Expanding Specifications into a Project Manual Procurement Requirements Bidding and Contracting info Conditions of the Contract Technical Specifications Adding Resource Information Geotechnical reports / diagrams Existing site features / utilities Hazardous abatement reports Other unusual project elements Answer the AIA G612 questions 36 18

19 Construction Documents: Stage 3 Procurement Conveying information to potential Bidders requires: Project Manual: Procurement Requirements Contracting forms Contract conditions Technical Specifications Drawings Other available resource information (e.g. soils reports) Plus Addenda (during bidding) 37 Construction Documents: Stage 4 Signing the Agreement: Establishing which documents are to be part of the overall Contract: Specifications Drawings Approved Addenda (which become Contract modifications) Critical Resource information Not listed Not binding. CONTRACT DOCUMENTS 38 19

20 Commit to Pencils up. Assign CA as soon as practical. Final Drawing Review CA review of docs to shadow Project Architect review Have at least one team comment period to identify missing information. 39 PART 1 administrative requirements Preconstruction activities Submittal requirements DIVISION 01 Review Critical performance criteria Testing requirements Closeout provisions 40 20

21 Spearin Doctrine U.S. Supreme Court decision of 1918, United States v. Spearin A Contractor is entitled to rely on the construction documents provided by the Owner to be sufficient for their intended purpose, and is not responsible for the consequences of defects (errors, inconsistencies, and omissions) Your actions (or inaction) may change the terms of the Contract. If you act outside your contracted responsibilities, or take an action that was not originally in the contract, it can be held that the particular activity is now part of the contract. Also, if you fail to perform your role, you can be held in breach of contract. Your obligations exceed the client s 41 Article 3.2.3: Key Provision The Contractor is not required to ascertain that the Contract Documents are in accordance with applicable laws, ordinances, codes, rules, and regulations or lawful orders of public authorities... BUT, the Contractor shall promptly report to the Architect any nonconformity discovered.. By implication, the Owner is also not required to ascertain compliance with the law. It s the Architect s job to design to code

22 Questions? 43 BASIC COMPONENTS OF CA PRACTICE 44 22

23 General Conditions as Cheat Sheet Defines basic rights, responsibilities, and relationships of parties involved in performance of the Contract Inherent part of Owner- Contractor Agreement Is the legal framework of all interactions with the contract documents. 45 What s the point? General conditions support requirements. Helps you discern a procedural problem from a technical one. When conflicts arise, you can make the right argument to solve the right problem

24 In General Architect is a part of the Owner-Contractor Agreement Designated representative has express authority to bind Contractor to matters pertaining to the Contract Duties, responsibilities and limitations of authority of Architect as set forth in Contract Documents shall not be Restricted Modified Extended If Architect is terminated, Owner shall employ successor architect as to whom Contractor has no reasonable objection 47 Administration of the Contract Architect will Provide administration of the Contract as described in Contract Documents Be Owner s representative during construction Have authority to act on behalf of Owner to extent provided in Contract Documents Conditions of the Contract:

25 Administration of the Contract Architect will keep Owner reasonably informed about progress and quality of Work completed and report to Owner Known deviations from Contract Documents and schedule Defects and deficiencies observed in the Work Architect not responsible for Contractor s failure to perform Work in accordance with Contract Documents 49 FORMS ENFORCE REQUIREMENTS 50 25

26 Purpose of CA Forms Standard forms reinforce the contractual nature of the relationship Standard forms enforce contract compliance Forms prepared and published by professional associations are widely used and well understood Forms provide documented verification of decisions Legally binding. 51 Contracting Requirements Notice of award Agreement forms Agreement form supplements Supplementary scope statement Allowances schedule Unit price schedule Notice to proceed 52 26

27 Performance and payment bonds Lien bond Maintenance bond Retainage bond Special bond Bonds Protect Owner 53 Certificates provide accountability Submittal transmittal Certificate of insurance Infection control Construction waste diversion Product certification Recycled content of materials Minority business enterprise certification Continued on next slide 54 27

28 Schedules enforce management Continued from previous slide Schedule of values Application for payment Stored materials Construction schedule Work plan schedule Construction equipment 55 COMMUNICATIONS 56 28

29 Communications The Agreement set the limits and role of communications Contract Documents set the forms of communication: Meetings Submittals Interpretations / RFIs Contract modifications Site observation Payments Claims Punch lists 57 Communications Standard Contracts typically stipulate basic lines of communications: A/E is hub. Subs and Suppliers to (General) Contractor to A/E to Owner Consultants through A/E to Contractor or Owner Separate contractors through Owner, CM, etc. to A/E One point of contact from Owner to A/E is recommended. At minimum, a PoC should be CA staff authorized to make decisions. Follow all oral communications in writing to confirm decisions or interpretations 58 29

30 Contractual Limits of Meetings Division 01 Specifications Types of meetings to be held during construction Establish administrative and procedural requirements Frequency Participants Meeting administration Topics for discussion Divisions 02 through 49 Specifications Meetings required prior to installation of certain products Coordination meetings 59 Meetings: Less is not more Effective meetings are important part of Contractor s construction project management A/E construction contract administration Provides attendees opportunity to share Information Exchange ideas Make decisions Meeting purposes Facilities coordination of Work Resolution of issues Helps to prevent or resolve problems 60 30

31 Communications Meetings should be documented, distributed, and an opportunity offered to make corrections CA Groundwork: Set rules that clearly identify official communication Standardize types of communication considered legally binding Agree on how distribution to other parties will be handled Record keeping procedures Approved forms The single biggest problem in communication is the illusion that it has taken place. George Bernard Shaw 61 Have PAL Purpose - Agenda - Limit on time Have a published agenda Controlled discussions to stay on topics Convene and adjourn on a pre-determined schedule Contribute to team approach Meetings Effective Meetings 62 31

32 SUBMITTALS 63 Submittals Communicates information about systems, equipment, materials, products, and administrative matters An important part of quality assurance Indicates how Contractor Team intends to fulfill portions of Contract Documents Normally prepared by suppliers, fabricators, or subcontractors Should be Complete and accurate Conform with specified requirements Consistent with Project conditions 64 32

33 Submittals Are Not Contract Documents. They belong to the Contractor. To be used by Contractor or A/E to modify the Contract To be used to request or imply substitutions To be used to change the Division 01 requirements 65 Submittal Review Contractor to prepare, pre-review and forward to A/E A/E reviews are limited by contract: With reasonable promptness using professional judgment Limited to determining if information is consistent with design intent indicated in Contract Documents Is not to determine accuracy and completeness of dimensions or quantities 66 33

34 Contractual Sources for Submittals Administrative and procedural requirements contained in Conditions of the Contract Division 01 Specifications Expands upon Conditions of the Contract Defines project-specific administrative and procedural requirements for preparation, transmittal, review, approval, and return of submittals Divisions Specifications stipulates specific submittal requirements applicable to the Section A/E: Only specify submittals you will need. 67 INTERPRETATIONS 68 34

35 Interpretations and Modifications Not a substitute for clear, concise, correct, and complete Contract Documents However, extent of design and construction process is such that modifications and changes are necessary Contract Documents require the following of A/E Interpretations Clarifications Modifications 69 Interpretations Before receipt of bids Addenda Substitution requests Between receipt of bids and contract execution Post-bid addenda Negotiations Substitution requests After contract execution Change orders Substitution requests Requests for interpretation Supplemental Instructions Written amendments Construction change directive Field Order 70 35

36 Contractual Limits of Interpretations Defines Contract Documents as complementary States what is required by one is required by all Establishes A/E as impartial interpreter of Contract Documents Requires A/E to render decisions according to intent of Contract Documents When Contract Documents are interpreted, contents of drawings and specifications must be considered together Require modifications be made according to a SPECIFIED process 71 Requests for Interpretations (RFI) The RFI is intended for: Interpretations Missing or unclear information RFI abuse: Reinventing design intent Single user communication Issuing clarification sketches Substitute a product for one specified Answering how to build it questions. Relieving Contractor of responsibility for timely and thorough review 72 36

37 CONTRACT MODIFICATIONS 73 Modifications Extent, Cost, Time. The later the change, the more complex and costly A/E duty to evaluate and consider consequences Coordination of change effect is an Additional Service 74 37

38 Substitutions are Changes Under some Project Delivery Methods, Owner may encourage Contractor to propose alternatives after award of Contract or during construction To reduce costs To evaluate alternative products and systems Substitution procedures after execution of agreement are established in Division 01 specification Use of substitution request form is required A/E reviews and makes a recommendation to Owner 75 Request for information Clarification Substitution request (during construction) Modification forms Supplemental instruction Field order Written amendment Construction change directive Continued on next slide 76 38

39 Modification Forms Continued from previous slide Work change directive Request for proposal Proposal worksheet summary Proposal worksheet detail Change order request Change order 77 Evidence based Changes No time or money Supplemental instruction Written amendment Time or money Change Order When you don t know Construction change directive Field order 78 39

40 SITE VISITS, OBSERVATIONS, AND INSPECTIONS 79 Site Visits, Observations, and Inspections Basic to quality control is that participants have certain responsibilities for making observations and inspections Observe Perceive, notice, see Inspection Examine carefully and crucially, especially for defects Distinction between observation and inspection is important The Construction Specification Institute 80 40

41 CA Quality Assurance Tools Procedures for discovering Defects Deficiencies Deviations Includes Submittals Certifications Observation Discovery Testing Punch Lists 81 Contractor Responsibilities Standard Owner-Contractor Agreements and standard Conditions of the Contracts typically stipulate Contractor to Prior to bidding or commencing the Work, visit site to Correlate conditions Coordinate observations with Contract Documents Observe conditions at site affecting the Work Correlate with review of Contract Documents Report errors, omissions, and inconsistencies to A/E Direct and supervise the Work Ensure the Work is according to Contract Documents Controls means, methods, techniques, sequences, and procedures for all portions of the Work Continued on next slide 82 41

42 Site Visits, Observations, and Inspections Contractor Responsibilities Continued from previous slide Continually inspect the Work to ensure each portion is ready to receive subsequent portions Inspect the Work performed by Owner or separate Contractor if Contractor s Work is dependent on that Work Arrange for inspections required by authorities having jurisdiction Required to inspect Work to qualify for Substantial Completion Prepare comprehensive list (initial punch list) of items to be completed or corrected prior to final payment 83 Site Visits, Observations, and Inspections Owner Responsibilities Standard Owner-Contractor Agreements and standard Conditions of the Contracts typically stipulate Owner to Provide site information Physical characteristics Legal limitations Utility locations Provide other information or services to Contractor upon request Be responsible for the Work By Owner By other Contractors 84 42

43 Authorities Having Jurisdiction (AHJ) Federal, state, county, and city authorities oversee safety and welfare of public Verifies that design complies with codes and ordinances before issuing permits Verifies that construction complies with codes and ordinances by site inspections Reject Work not complying with codes and ordinances 85 PAYMENTS 86 43

44 Withholding Payment Standard Contracts typically give A/E right and responsibility to withhold certification of whole or any part of application for payment to protect the Owner Common conditions for A/E to recommend withholding payments to protect interests of Owner Damaged or non-conforming Work requiring repair or correction Damaged property, adjacent to Project, requiring repair or replacement Failure by Contractor to meet scheduled milestone or Contractor s own approved schedule to extent that liquidated or compensatory damages may be reasonable anticipated Continued on next slide 87 Continued from previous slide Withholding Payment Claims made against Owner on account of Contractor s failure to perform Liens filed in connection with nonpayment of subcontractors, suppliers, laborers, and mechanics Failure to keep record documents current Cost of doing cleaning work, by Owner or others, resulting from Contractor s failure to perform cleaning work 88 44

45 CLAIMS 89 Claims and Disputes Interpretation or modification may lead to a claim Unresolved claims may lead to disputes Claims are initially requests for adjustments in Contract Sum or Time A/E responsibilities Evaluates claim Verify total impact Presents findings 90 45

46 Contractual Source of Resolutions Standard Conditions of the Contract typically includes a procedure for dispute resolution obligated to start a path of dispute resolution Either party can demand mediation If other party does not file for mediation, then both parties waive mediation and can use any other method of dispute resolution If mediation unsuccessful, parties may choose to invoke other types of dispute resolution stipulated 91 A/E Determinations Determination of reasonable inference. Notification and timing of the claim Reviews supporting documentation In most cases, disputes are not understanding and/or accepting rights, responsibilities, and requirements established by Contract Documents. Claims can be handled with less effort by promptly addressing issues and negotiating settlement if possible 92 46

47 PROJECT CLOSEOUT 93 Punch Lists Contractor creates the punch list (audience laughs ) Standard Contracts typically stipulate List of incomplete Work and items needing correction prior to final completion Prior to Date of Substantial Completion and beginning of correction period 94 47

48 Project Record Documents Construction documents subsequently modified to show actual construction Contracts typically stipulate Contractor to provide following prior to Date of Substantial Completion Record drawings Record specifications Record submittals Startup logs BIM records per contract. The Construction Specification institute 95 Prepare Owner to Occupy Information resources necessary to operate and maintain facility should be required Information resources are used in a variety of ways Operations and maintenance planning and budgeting Modifications, renovations, and additions Custodial and maintenance staff Outsourced service providers working at facility Should be permanently retained and accessible 96 48

49 Certificate of compliance Certificate of substantial completion Certification of completion Warranty Statutory declaration Closeout Forms 97 PREPARING FOR THE ROLE 98 49

50 Common Red Flags Owner Custom Agreement forms No General Conditions / No Division 01 A/E administrative role lacking some essential tasks Extensive or numerous post bid addenda Extended bidding and buy out period Contractor unfamiliar with pre-construction requirements No direct A/E involvement in Change Orders A/E Project Manager duplicating CA tasks CA staff acting as place-holder 99 What NOT to give up Writing Division 01 Submittals Review Agenda control Active, documented observation Pay application review Review of Change Orders Certificate of Substantial Completion

51 Pre-Requisites for good CA A good contract Clearly defined Additional Services A firm-wide CA process; purpose, tasks, and tools. Teach with the A201 Assign experienced person(s) Set project ground rules clearly in documents Be clear on authority to decide Be a first responder in all things 101 Preparing for the Role Technically competent. Recommend 5 years project experience and 1 shadow CA project before solo. Time spent on drawing and/or checking drawings Familiar with Contracts / General Conditions / Spec provisions Verbal and writing skills to be clear and concise Experience leading discussions with an agenda. Inherently organized. Understands documentation. Pro-active in task assignments, follows a plan. Knows the firm s CA practices and goals

52 For further study 103 Questions?