Construction Contracting Methods. By: Nick Thornsbury Falcon Engineering

Transcription

1 Construction Contracting Methods By: Nick Thornsbury Falcon Engineering

2 Typical Contracting Methods Used Key Elements that Affect Design Engineers How Changes Affect Design Engineers

3 Typical Contracting Methods Used Design Bid Build (Single Prime) Design Bid Build (Multiple Prime) Construction Risk Design / Build Negotiated General Contracting (Private)

4 Key Elements that Affect Design Engineers Contractual Relationships Owner s Best Interest Projected Project Cost Bidding Procedures

5 How Changes Affect the Design Engineers Changes During the Design Changes During the Construction Errors and Omissions

6 Design Bid Build (Single Prime)

7 Design Bid Build (Single Prime)

8 Design Bid Build (Multiple Prime)

9 Design Bid Build (Multiple Prime)

10 Construction Risk

11 Construction Risk

12 Design / Build

13 Design / Build

14 Negotiated General Contracting (Private) May Have Similar Set-up As Any Other May Be a Hybrid of Many Others Often Have Different Terms/Conditions

15 Key Elements For Any Project How Much Does it Cost? How Long Will it Take? How Well Will it Be Built? Are These Three Inter-related?

16 Key Elements For Any Project

17 Key Elements For Any Project

18 Key Elements For Any Project Reduce The Time Cost and Quality Are Affected Reduce The Cost Time and Quality Are Affected Reduce The Quality Cost and Time Are Affected

19 Contractual Relationships Direct From Owner to Design Team Direct From Owner to Contractor Between Design Team and Contractor

20 Contractual Relationships Direct From Owner to Design Team Direct From Owner to Contractor Design-Bid-Build Risk Between Design Team and Contractor Design-Build Negotiated Private Contracting

21 Owner s Best Interest Design Team Contractor Design-Bid-Build Risk Design-Build Negotiated Private Contracting Risk Design-Build Negotiated Private Contracting

22 Projected Project Cost Design Team Contractor Design-Bid-Build Risk Design-Build Negotiated Private Contracting Risk Design-Build Negotiated Private Contracting

23 Bidding Procedures Design Team Contractor Design-Bid-Build Risk Design-Build Negotiated Private Contracting Negotiated Private Contracting

24 Changes During Design Design Bid - Build Design Team Contractor Determine Need For Changes Check Pricing Review for Options Incorporate Changes Request Owner s Approval??

25 Changes During Design Risk Design Team Determine Need For Changes Contractor Confirm Need For Changes Check Pricing Review for Options Review for Options Incorporate Changes Request Owner s Approval?? Request Owner s Approval??

26 Changes During Design Design Build Design Team Determine Need For Changes Check Pricing Review for Options Incorporate Changes Request Owner s Approval?? Contractor Determine Need For Changes Check Pricing Review for Options Incorporate Changes Request Owner s Approval??

27 Changes During Construction Design Bid - Build Design Team Generate Bulletin Review Pricing Contractor Provide Pricing Adjust Pricing Approve/Reject Generate Change Order Adjust Schedule; Generate Sub C.O. Request Owner s Approval and Payment TIME = MONEY CONFRONTATIONAL

28 Changes During Construction Risk Design Team Generate Bulletin Review Pricing Contractor Provide Pricing Adjust Pricing Approve/Reject Generate Change Order Generate Sub Change Order Request Owner s Approval and Payment Determine Funding Source (Added Scope: Owner s Contingency) (Scope Gap: Contractor s Contingency)

29 Changes During Construction Design - Build Design Team Generate Bulletin Contractor Provide Pricing Request Owner s Approval and Payment Determine Funding Source (Added Scope: Owner s Contingency) (Scope Gap: Contractor s Contingency)

30 Standard Contracts American Institute of Architects (AIA) Associated General Contractors (AGC) Construction Management Association of America (CMAA) Design Build Institute of America (DBIA)

31 Contract Administration Programming Phase: Plan, Procedures, Feasibility, Etc. Design Phase: Schedule by Design Phase, Cost Studies, Etc. Bidding Phase: Legalities, Qualified Bidders, Contracts, Etc. Construction Phase: Schedule, Cost Control, Closeout/Turnover

32 Summary All Parties Should Have General Construction Knowledge Multiple Contracting Methods Available Stay Delivery Neutral: Look For The Best Fit For The Specific Project Make Sure All Parties Understand Their Contractual Responsibilities Always Keep The BIG PICTURE In Mind