ROLES AND RESPONSIBILITIES

Transcription

1 Audio Sessions Session 2 ROLES AND RESPONSIBILITIES Education Program Certified Construction Contract Administrator (CCCA) Preparatory Course 2011 The Construction Specifications Institute This presentation is protected by US and International copyright laws. Reproduction, distribution, display and use of this presentation without written permission of the speaker and The Construction Specifications Institute is prohibited. The Construction Specifications Institute AIA The Construction Specifications Institute 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. 2 1

2 Learning Objectives To differentiate between the roles, responsibilities, and expectations of the Owner, A/E, and Contractor during construction To recognize the importance of the team approach, as well as the benefits and obstacles To distinguish between the appropriate lines of communication between the Owner, A/E, and Contractor during construction To identify the contractual responsibilities of the Owner, A/E, and Contractor for the payment process The Construction Specifications Institute 3 Session Outline STUDY GUIDE: Subject Matter Area No. 2 4% ROLES AND RESPONSIBILITIES A. Role of Each Party During Construction 1. A/E s administrative duties 2. Participants expectations of the A/E 3. Owner s responsibilities and roles 4. Participants expectations of the Owner 5. Contractor s responsibilities 6. Participant s expectations of the Contractor 7. Initial decision maker B. Team Approach 1. Team approach 2. Benefits to working as a team 3. Obstacles to working as a team 4. Team building and partnering C. Communications During the Construction Process D. Contractual Responsibilities for Payment Process The Construction Specifications Institute 4 2

3 ROLES AND RESPONSIBILITIES STUDY GUIDE AREA NO. 2 The Construction Specifications Institute 5 ROLE OF EACH PARTY DURING CONSTRUCTION STUDY GUIDE: Submit Matter Area No. 2 - A. 1. A/E s administrative duties 2. Participants expectations of the A/E 3. Owner s responsibilities and roles 4. Participants expectations of the Owner 5. Contractor s responsibilities 6. Participant s expectations of the Contractor 7. Initial decision maker The Construction Specifications Institute 6 3

4 A/E s Administrative Duties Standard Owner-A/E agreements stipulate A/E to administer the construction contract A/E s responsibilities during construction Represents Owner Observes work to be generally familiar with progress Certify and recommend validity or contract compliance of work Interpret contract documents Resolve disputes Modify contract documents should that be necessary Review submittals Perform inspections of the work Participants Expectations of A/E Owner expects A/E To exercise reasonable care in preparing construction documents and be error free To provide information on progress and quality of work To design project within budget To exercise reasonable care in preparing construction documents To be knowledgeable and professional To take leadership role in decision making process To evaluate proposed change orders to ensure extra costs are fair and reasonable To exercise caution in assuming roles not stipulated in contract

5 Participants Expectations of A/E Contractor expects A/E To be fair and responsive when interpreting the contract documents To process submittals, applications for payment, modifications, and other items in timely fashion Subcontractor expects A/E To process contractor s applications for payment in timely fashion To process submittals in timely fashion To communicate and act in fair and timely fashion Participants Expectations of A/E Testing and Inspection Agencies expects A/E To provide clear definition of services to be performed To be present when tests are conducted if required by contract documents To promptly review documentation

6 Owner s Responsibilities and Rights To provide information to Contractor To pay fees and charges associated with the work To make payments to Contractor To properly terminate for convenience or cause when required Owner has the right to Stop work Carry out work Perform construction Award separate contracts Clean Partial occupancy Participants Expectations of Owner To understand Contract documents are not perfect Changes should be expected during construction To provide reasonable contingency allowance To give full disclosure of all information To be accessible for decisions or consultations To make progress payments, modifications, and other documents requiring Owner s approval To be reasonable and not make demands beyond the intent of the contract documents

7 Participants Expectations of Owner Contractor expects Owner To have reasonable financial resources To be reasonable and fair in Owner s interpretation of scope of work To provide accurate information about site To understand responsibilities of partial occupancy To process approvals To understand modifications may involve time and cost Owner and A/E expected to be reasonable in determining Substantial completion Final completion Contractor s Responsibilities Typically general conditions stipulate To review contract documents and notify A/E of errors and omissions To follow procedures for substitutions To furnish competent supervision To maintain accessible and current contract documents To schedule and coordinate material deliveries and subcontractor s work Continued on following slide

8 Contractor s Responsibilities Continued from previous slide To indemnify and hold harmless Owner and Owner s agent To furnish payment and performance bonds to Owner To furnish contractor s liability insurance To furnish worker s compensation insurance To implement and enforce project safety programs To comply with local, state, and federal safety requirements To schedule and facilitate testing Continued on following slide Contractor s Responsibilities Continued from previous slide To implement and monitor - Quality assurance (QA) - Quality control (QC) To promptly pay subcontractors and suppliers for work performed and materials provided To furnish submittals and samples as required by contract To schedule and obtain required inspections by AHJ s To furnish record drawings, operations and maintenance manuals, and other product data

9 Participants Expectations of Contractor A/E expects Contractor To be knowledgeable To be in compliance with contract documents To be experienced with type of construction specified A/E expects qualified project superintendent To be conscientious in construction project To base decisions on what is reasonably inferable from contract documents Participants Expectations of Contractor Owner expects Contractor To be financially sound To complete the project according to the contract documents To be reasonable in pricing modifications To accommodate Owner s use of partially completed facility Subcontractors expects Contractor To properly schedule and coordinate the work To enforce quality control provisions To get clarifications and interpretations in timely fashion To make prompt progress payments

10 Initial Decision Maker Typically general conditions allow Owner and Contractor to designate an independent entity to be initial decision maker for claims In absence of a designated initial decision maker, A/E retains traditional role Claims, even those alleging errors by A/E goes through initial decision maker Decision of initial decision maker may be subject to mediation or other means of dispute resolution under terms of contract AIA Document A TEAM APPROACH STUDY GUIDE: Submit Matter Area No. 2 - B. 1. Team approach 2. Benefits to working on a team 3. Obstacles to working on a team 4. Team building and partnering The Construction Specifications Institute 20 10

11 Team Approach Success of project depends on how well participants Understand their respective roles and responsibilities Understand responsibilities of others Carry out those roles Meet expectations of other participants Success of completed project Conscious effort of participants working as a team toward common goal of well constructed project Completed on time and in budget Team Approach Expectations that Owner, A/E, and Contractor have of each other stem from their responsibilities identified in Agreements Conditions of the contract Specifications (div 01 in particular) Other expectations based on Standard of care Basic moral obligations

12 Benefits to Working as a Team Better communication and coordination Increased productivity Reduced project costs Earlier project completion Improved project team morale Fewer claims and delays Benefits to Working as a Team Benefit from increased productivity Reduction of downtime while waiting for responses from questions Resolution of disagreements Reduction of work that needs to be redone Reduction of paperwork associated with claims and disputes Reduction of project costs for all participants Reduction in number of contract modifications and claims Reduces cost of project to Owner Reduces labor and paperwork costs to A/E and Contractor Reduces labor and material costs to Contractor by minimizing delays and confusion that reduce efficiency in advancing work

13 Obstacles to Working as a Team Adversarial relationships and personalities Incomplete or inaccurate contract documents Unreasonable schedule requirements Unplanned or inordinate number of changes to project scope Labor issues Delays in product fabrication or delivery Poor communications Delays caused by ineffective management Obstacles to Working as a Team Personality conflicts may stand in way of getting project completed Important to maintain professional demeanor Remove personality differences Focus on issues to get project completed May involve using alternative people on project to work through problems

14 Obstacles to Working as a Team Incomplete or inaccurate contract documents Require additional time and effort of participants Progress may be delayed Contract interpretations are typically required to resolve issues Time and effort of contract interpretations may distract participants from focusing on project Negotiating price and time revisions often result in disagreement and conflict Unreasonable schedule results in conflict among participants Obstacles to Working as a Team If participants not allowed reasonable time to complete work May incur costs and inefficiency Increased crew size or overtime work May cut corners to appear to maintain schedule May utilize means and methods that produce quickest result rather than desired result Proper work sequencing may be set aside to increase productivity in order to make up time Unplanned, extensive, or an excessive number of changes to project scope requested by Owner May result in inaccurate and incomplete contract documents Unreasonable schedule requirements have negative effect on participants

15 Obstacles to Working as a Team Owner-A/E agreement normally modified to include Additional services necessary for design and redesign Modification of contract documents Extended or reduced construction contract administration Change orders for modifications to Contract price Contract duration Both price and duration Changes also impact Purchase orders and scheduling Usually result in higher costs to Owner Obstacles to Working as a Team Product fabrication or delivery delay Creates challenges to project completion If cannot be fabricated, alternate product may need to be considered Product substitutions increase risk that Inferior products will be incorporated in project than that originally specified Interaction with other products may be in installation conflict When delivery dates are not met Expedited delivery may be required to keep project on schedule Increased delivery costs Delivery delays may adversely impact performance of related work

16 Obstacles to Working as a Team Poor communications and poorly followed communications procedures inevitably result in conflicts Participants need to follow communication procedures included in contract documents to minimize potential of future conflicts Obstacles to Working as a Team Ineffective management May delay project process and completion Reduced efficiency Incorrectly ordered materials Poorly scheduled deliveries and installation Lack of coordination of dependent construction activities On part of one or more participants can significantly affect working relationship of an entire team Unanticipated work may result in significant Additional effort Project costs

17 Team Building and Partnering Each of parties actively works to Understand extent of their contractual rights and responsibilities and effectively carry them out Work fairly, efficiency, and swiftly to solve problems through communications Act in an ethical manner Partnering collaborative effort increases perception of all parties to contract that they have same common goals Reduced exposure to litigation Open communications Issue resolution strategies Team Building and Partnering Lower risk of cost overruns and delays means better time and cost control over project Increased productivity and lower administrative costs helps to eliminate defensive case building Increased opportunity for innovation Open communication Element of trust Development of value analysis changes Constructability improvements Increased opportunity for financially successful project

18 Team Building and Partnering Partnering process Set ground rules for communication Establishes how problems will be addressed Identifies critical decision makers from each of parties of contract Often includes mission statement for project Often includes written and signed pledge to work to resolve problems without conflict Partnering does not change terms and conditions of the contract COMMUNICATION DURING CONSTRUCTION PROCESS STUDY GUIDE: Submit Matter Area No. 2 - C. The Construction Specifications Institute 36 18

19 Communications During Construction Process General conditions Between Owner and Contractor through A/E To consultants through A/E To subcontractors and suppliers through Contractor To separate contractors through Owner, Construction Manager, or coordinating contractor Traditional agreements No contract between A/E and Contractor Respective agreements with Owner and conditions of the contract stipulate A/E and Contractor communicate with each other Important that participants follow contractual lines of communication for proper documentation and coordination Communications During Construction Process Communication roles may be IS different for Design-build project delivery method Integrated project delivery method

20 Communications During Construction Process Product representatives Prior to construction stage have direct communication with A/E During construction maintain communication with Contractor Subcontractor Supplier holding purchase order Until purchase order is received may assist and supply technical service to A/E After purchase order is executed information is through party receiving goods CONTRACTUAL RESPONSIBILITIES FOR PAYMENT PROCESS STUDY GUIDE: Submit Matter Area No. 2 - D. The Construction Specifications Institute 40 20

21 Contractual Responsibilities for Payment Process Owner-A/E agreement typically stipulates A/E will certify amounts due Contractor based on A/E s observation of work in progress Evaluation of Contractor s application for payment A/E certification is Representation that Contractor is entitled to payment of amount certified Based only on A/E s knowledge, information, and belief work conforms to requirements of contract documents Contractual Responsibilities for Payment Process A/E certification does not mean A/E has Made exhaustive on-site inspections Reviewed construction means, methods, sequences, or procedures Reviewed requisitions of subcontractors or suppliers Determined disposition of previously certified payments Contract Documents contain Terms, conditions, and procedures for payment Application by Contractor Review and certification by A/E Payment by Owner

22 Contractual Responsibilities for Payment Process Payment provisions commonly included in contract documents Submittal, review, and approval of schedule of values prior to first payment Submittal of cash flow projection for Owner s financing, coordinated with construction progress schedule might be stipulated Identification of measurement criteria for unit price items Identification of payment schedule interval of payments Provisions for retainage and reduction or release of retainage Application to be submitted according to stipulated days prior to established date of payment Provisions for payment for stored materials Continued on following slide Contractual Responsibilities for Payment Process Continued on previous slide Provisions for unit prices and allowances Requirements that Owner pay amount certified by A/E Conditions for withholding payment Contractor s rights if Owner fails to make payment Procedure for final payment

23 Review Outline STUDY GUIDE: Subject Matter Area No. 2 ROLES AND RESPONSIBILITIES A. Role of Each Party During Construction 1. A/E s administrative duties 2. Participants expectations of the A/E 3. Owner s responsibilities and roles 4. Participants expectations of the Owner 5. Contractor s responsibilities 6. Participant s expectations of the Contractor 7. Initial decision maker B. Team Approach 1. Team approach 2. Benefits to working as a team 3. Obstacles to working as a team 4. Team building and partnering C. Communications During the Construction Process D. Contractual Responsibilities for Payment Process The Construction Specifications Institute 45 Questions? 46 23