Construction management midterm review
Discuss the primary clauses found in the General Conditions component of a contract. (time, payment, changes, disputes, ... etc.)
Offer Acceptance Consideration Parties who have legal capacity Lawful subject matter Mutual agreement among both parties Mutual understanding of the obligation
understand and describe OSHA safety requirements such as: purpose of experience modification rate, incident reports, required record keeping requirements, and reporting requirements.
Purpose of experience modification rate: the number that insurance companies use to represent a business' prior workers' comp claims and potential for future injuries. (Lower EMR's = pay less for workers' comp insurance) this number includes # of claims/injuries a company had in the past and their corresponding costs. (Average EMR = 1; <1 = safer than most) incident reports: A work-related injury or illness must be recorded under the Occupational Safety and Health Act if it results in one or more of the following: - Death (within 8 hours of finding out about it) - Days away from work. - Restricted work or transfer to another job. - Medical treatment beyond first aid. - Loss of consciousness. - A significant injury or illness diagnosed by a physician or other licensed health care professional. Record keeping: employers with more than 10 employees are required to keep a record of all serious injuries or sickness requiring more than first aid treatment for at least 5 years. February through April, employers are required to post a summary of the sicknesses and injuries of the previous year. (if requested, to current or former employees or their representatives.) Reporting requirements: - fatality: 8 hours - serious injury: 24 hours
understand the difference between quality control and quality management
Quality control is the set of different processes used to measure the quality of the project by assessing its result. It totally depends upon the outcome. Quality control works on tracking and controlling all functions whereas quality management is used for the planning and managing phase and who is managing the job.
Define Request for Information (RFI) and discuss it's function and process.
(Define) The goal of a Request for Information (RFI) is to act as a partnering tool to resolve gaps, conflicts, or subtle ambiguities, during the bidding process or early in the construction process to eliminate the need for costly corrective measures. (Function) It is a common business process whose purpose is to collect written information about the capabilities of various suppliers. Normally following a format that can be used for comparative or reference purposes. (Process) As part of its formal process, an RFI is usually submitted by a form. However, since requests for information are such a standard part of any construction process, each architect, designer, contractor and subcontractor may have their own particular method of submitting one.
Perform a simple parameter estimate, similar to the one illustrated in class.
(When costs are forecast using parameters related to the scope of the project and product as well as resource cost information) https://pm4id.pressbooks.com/wp-content/uploads/sites/47278/2015/12/fig9-4.gif
understand the primary causes of construction fatalities.
- Falls from elevations - Electrocution - Struck by equipment - Caught in between equipment - Tench excavation cave-ins
understand and describe the general concepts/ activities that occur in Job Site Management
- setting standards for quality and safety - planning the sequence for construction - monitoring construction - controlling progress and expenditures - communicating effectively with owner and designer - coordinating the work of subcontractors - managing submittals, change orders, and periodic pay estimates - closing out the project
identify factors that impact project costs.
- similar construction projects - construction material costs - labor wages - construction site conditions - inflammation factor - project schedule - quality of plans and specifications - reputation of engineer - insurance requirements - size and type of construction project - location of project - engineering review - contingency
responsible bidder
A "responsible" bidder is one who is able to satisfactorily perform the work. A contract does not have to be awarded to the lowest bidder if that bidder is not responsible, as determined by the University.
responsive bidder
A "responsive bid" is an unequivocal offer by the bidder to do everything required by the construction and bid documents, without exception
change order
A change order is work that is added to or deleted from the original scope of work of a contract, however, depending on the magnitude of the change, it may or may not alter the original contract amount and/or completion date. A change order may force a new project to handle significant changes to the current project.
hold harmless
A hold harmless agreement is a clause typically included in construction contracts to release one party from consequences or liabilities due to the act of the other. ... A hold harmless agreement clause in a contract document should have specific language to protect the contractor or the intended parties.
negotiated bid
A negotiated bid is when an owner negotiates a price for services rendered with a single contractor. In this method, contractors do not compete against each other for the lowest possible price and owners are not provided comparative pricing.
notice to proceed
A notification letter from the owner addressed to the contractor stating the date on which the contractor can begin project work. The NTP date marks the beginning of the performance time of the contract.
progress payment
A payment to the contractor that compensates the contractor for work performed up to a given date. Such payments generally are made monthly and are reduced by a given percentage that is retained by the owner until final completion
Punch list
A punch list is a list of tasks and items that need to be fixed or completed before a construction project can be considered finished. ... This step in the construction project is performed last so that all work can be reviewed, and double checked.
termination for cause
A right of termination for cause is standard in public and private construction projects, permitting a party to terminate a contract as a result of the lower-tiered contractor's actual breach of the contract.
Describe the 'site visit' component of preparing a bid and identify key items to consider when conducting a site visit.
A site visit is an opportunity granted to the potential bidders of a project to give them an idea of the scope of work that is required and to give an idea about the amount of materials will be required to give them a better idea about estimating a price for the project and will allow for a more accurate bid. This also allows potential bidders to get an exact look at the job itself to give them a better idea about if the job fits their work abilities as well as allows them to figure out if they would like to accept the project or not. Some topics to focus on while conducting a site visit is to look specifically for things that can potentially cause setbacks or problems while conducting work as well as gathering a detailed look at the site and the specifics to rooms, the surrounding environment, risks, the foundation, the intended job outcome, the land that the job will take place, and other safety hazards that could potentially arise. There is no set guideline as to what to look for on a site visit as every site is different and contains different characteristics that can be potentially dangerous or challenging depending on each site.
describe teams, team member types, successful teams, and the importance of understanding various behavioral types
A team is a group of people that work together to accomplish a task through collaboration. Team members: sheep, yes, alienated, survivor, effective successful teams: - high level of trust - high level of respect - commitment to a clear/ common purpose - willingness and ability to resolve conflict - focus on results - mutual responsibility and accountability Importance of knowing behaviors: Knowing behaviors means that you understand what type of worker you are which better allows you to understand what type of workers you work better with as completely opposite workers tend not to see eye to eye when trying to come to a conclusion.
termination for convenience
A termination for convenience clause is a clause in a construction contract that allows one or both parties to terminate the agreement without a specific reason for doing so (such as a default or breach of the contract)
transmittal
A transmittal doesn't accompany any item or document. Transmittals can be updated documents or other documents that are necessary for construction. Transmittals are to help update the documents in the organization but don't require any response
acceleration
Acceleration is the process of speeding up the work of a contractor so that a particular activity, or the project as a whole, can be completed before the date required under the contract. Generally, it is the client that requires the acceleration of construction work
request for information
An RFI is a request for information that is used in construction to clarify any uncertainties or to fill in any gaps in information that may be found in any specifications, plans, contracts, or other documents.
define leadership and its components
Being someone who is followed by others due to their traits of leadership such as honesty, forward looking, competent, inspiring, intelligent, supportive, etc.
Name and define the purpose of the 3 types of bonds.
Bid bonds: The bid bond protects the project's owner if the bid is not honored by the principal, such as a contractor. Performance bonds: A contractor, or principal, uses a performance bond to guarantee that it will complete the contract in accordance with its terms. Payment bonds: A payment bond guarantees all payments that are due to subcontractors and others from the principal.
bid withdrawal
Bids may be modified or withdrawn by written notice or in person by a bidder if the request is received prior to the exact hour and date set for the bid opening.
Identify the major steps of project development from lecture and put them in correct order from the start of a project to the end.
Concept Design Document Bid Start up Build Operate Demolish
litigation
Construction Litigation involves the representation of stakeholders involved in a governmental, commercial, or residential construction project. ... payment claims (both claims for payment of sums promised in the construction contract and claims for the payment of additional sums due to changes in the scope of the work)
Identify at least two things that should be considered during the conceptual design phase of the project for each of the following categories: demographics, land, environmental issues, site access, zoning and building codes, financing, and political considerations.
Demographics: Population, Growth rate Land: Area, soils Environmental issues: Climate, Pollution (Air, water, Noise). Site Access: Vehicular Access, Pedestrian Access Zoning and Building Codes: Solar Rights, Water rights Financing: Private Buildings (Capital Investors, Loans), Public Buildings (General tax revenues, bonds) Political Considerations: Image of locale, Traffic/congestion
Discuss the advantages and disadvantages of design-bid-build, design-build, and construction management at risk contracts.
Design-Bid-Build: - Pros: Linear, straightforward and easy to follow Owners can actively contribute Since the scheduling of the design and construction do not overlap it allows things to be easy to follow and straightforward Roles for both construction and design are easy to decipher because of the setup of this system of work Owners can review competitive bids for construction costs Contractors are familiar with this approach making their job easier - Cons: Construction costs are not firmly established until design stage is completed If the bid is too expensive, redesigning, value engineering, and the rebidding process can lead to project delays and additional design costs The architect does not usually get the benefit of the contractor's advice on how to construct or the cost of the bid Knowledge of some advanced construction technology offered by specialty subcontractors and general contractors is not as readily available in this approach Since contractors compete based on the price of the bid, changes in the design documents can lead to opportunities for contractors to delay and or request change orders to the project The long process of this approach sometimes can anger the client Design-Build - Pros · Greater opportunity for innovation and allows for faster project delivery · Very efficient · More flexibility to changes in plans · Less responsibility for the owner allowing for less stressful experience - Cons · Loss of control due to reduced owner involvement in the design process · Takes time and is difficult to compare designs · Increase cost due to tendering to both sides · Limited options for qualified professional · Changes and difficulties tend to be larger and more complex Construction Management at Risk: - Pros: · Good cost estimating early on in the process · Can create the best team to work together on the process · Contractors are chosen through qualifications and then on price to ensure project gets done more efficiently rather than on price of the project · Faster transition from design to start of construction - Cons: · Must ensure that multiple bids are given to ensure competitiveness is there ·Must keep an open book policy to ensure that you can see the correct prices and distribution of materials for the project
addendum
Document or information attached or added to clarify, modify, or support the information in the original document or written work. In construction industry, for example, an addendum issued by a client during the bidding process becomes part of the contract documents when the contract is awarded.
Discuss the differences between an engineer's estimate and a bid estimate done by a contractor.
Engineer's estimate: - determines expected cost - assumes market rate, without access to proprietary costs - assumes probable construction methods - actual quotes rarely used ( only specific items) Contractor's bid estimate: - Determines actual cost (bid) - uses detailed company cost data - knows construction methods - uses actual sub-contractor bids and material quotes
be prepared to develop a network schedule, perform forward and backward passes to determine the duration and critical path.
Forward/ backward pass: scheduling technique used to calculate an activity's early start and early finish, must be completed before the project duration can be determined : a scheduling technique used to calculate an activity's late start and late finish.
understand the concepts of general overhead and project overhead.
General overhead costs: ex. rent, utilities, supplies, communications, insurance, taxes, licenses, dues, subscriptions, advertising, marketing, tools Project overhead costs: general conditions, facilities, personnel, equipment, other
identify and describe the elements of direct and indirect costs of a detailed bid estimate
Indirect: costs not directly accountable for a particular facility product or function. variable or fixed. (personnel, security, administration) no direct connection to the construction project. Direct: the costs and expenses that are accountable directly on facility, function or product. (labor, material, equipment)
liquidated damages:
Liquidated damages are damages defined in the construction contract and chargeable against funds due to the contractor for each day the contractor fails to complete the project beyond the contract completion date.
Describe the selection methods: low bid, best value, and qualifications based
Low Bid: (most common way for contractors to get their work)Based solely on the price of the bid. Qualified bidder with the lowest or best bid price, and whose business and financial capabilities, past performance, and reputation to meet the required standards. Best Value: Judges include qualifications as well as price in this method of their selection method. For example, in a Design-bid-build type project, judges will be looking at the price of the bid as well as say completing a design for a project to be considered "best qualified" to take on the project. Qualifications: This selection method for projects focuses solely on the qualifications of a bidder to make their decision. This is not typically a popular method of selection as only focusing on the qualifications of a group leaves out an important piece of the project which is the price. Many people can be qualified for a job but the price is usually the driving factor as who to choose to take on the job.
arbitration
Many of these construction disputes are resolved through arbitration, which is a process by which the parties in dispute, instead of going to court to resolve the matter, agree to submit their case to a third-party neutral, known as the arbitrator, who acts as a judge and jury.
mediation
Mediation is a consensual process of dispute resolution in which a third-party mediator, appointed by the parties to the dispute, assists in the negotiated resolution of the dispute. Advantages: It is an informal process. It can be initiated at any time agreed between the parties.
Discuss the current trends in dispute resolution. Understand/describe the various types of dispute resolution.
Mediation: an impartial third party (the mediator) facilitates the negotiation between the disputing parties. Minitrial: an informal private process combining aspects from mediation and litigation. Neutral outside advisor is engaged (mediation) as well as an attorney is assigned to each of the disputing parties to represent them. Arbitration: Use of binding arbitration in lieu of litigation, often stipulated in the general conditions of the contract for construction.
Discuss the current trends in dispute resolution. Understand/describe the various types of dispute resolution.
Mediation: an impartial third party (the mediator) facilitates the negotiation between the disputing parties. Minitrial: an informal private process combining aspects from mediation and litigation. Neutral outside advisor is engaged (mediation) as well as an attorney is assigned to each of the disputing parties to represent them. Arbitration: both parties agreeing on an independent person to litigate the conversation to come to a conclusion about it.
meeting of the minds
Meeting of the minds (also referred to as mutual agreement, mutual assent or consensus ad idem) is a phrase in contract law used to describe the intentions of the parties forming the contract. In particular, it refers to the situation where there is a common understanding in the formation of the contract.
Identify three key participants in a project team, as well as at least two other project participants.
Owners:The most basic information provided by the owner includes the project property lines, or at least the contract limit lines within which the contractor has the right to operate. Designers (architects and engineers): A designer is an organization or individual whose business involves preparing or modifying designs for construction projects, or arranging for, or instructing others to do this. Designs include drawings, design details, specifications, bills of quantities and design calculations. Contractors:A general contractor is responsible for providing all of the material, labor, equipment (such as engineering vehicles and tools) and services necessary for the construction of the project. A general contractor often hires specialized subcontractors to perform all or portions of the construction work. Subcontractors:A subcontractor is a company or person who is hired by a general contractor (or prime contractor, or main contractor) to perform a specific task as part of the overall project and is normally paid for services provided to the project by the originating general contractor. Suppliers:In the construction industry, 'supplier' is a very general term which refers to organizations contracted as part of the delivery of a built asset.
partnering
Partnering (sometimes referred to as alliancing, for example, in the rail sector) is a broad term used to describe a collaborative management approach that encourages openness and trust between parties to a contract. ... It is most commonly used on large, long-term or high-risk contracts.
List the items in a bid package and discuss the purpose of each
Plans & specifications: general standards, contract terms and provisions and other information about the bid and contract Instructions to bidders: Requirement that bidder follow proposal form, List all documents that are part of the bid documents, state whether or not alternatives will be considered, Proper signing of bids, qualifications/Pre Qualifications of bidders, Discrepancies, Exam of site, Bonding Requirements, Pre-bid conference, Provision for return of Bid deposits to unsuccessful bidders. Proposal/bid form: To outline all the terms and conditions of a bid on a construction project stating that the contractor has reviewed the project documents, and contains all the bid details. General conditions: The total cost of a project that generally don't involve swinging a hammer or installing something permanently in your home falling into three categories: site management, material handling, and project management. Supplementary/Special conditions: Addition, deletion, or substitution to revise any statements made in the general condition portion of a contract. Addenda: An item of additional material, typically omissions, added at the end of a book or other publication.
Identify several factors that influence the decision to bid a project.
Price Qualifications Reputation Best Value
Retainage
Retainage is a portion of the agreed upon contract price deliberately withheld until the work is substantially complete to assure that contractor or subcontractor will satisfy its obligations and complete a construction project
List and define a minimum of five items included in a notice (instructions) to bidders.
Specifications/Scope of work:The Scope of Work (SOW) is the area in an agreement where the work to be performed is described. Attachments:This section includes the governing, hard copy set of guidelines in which set the specifics of complying with the set conditions by both the bidder and employer Instructions to Bidders:This section includes directions as to where and how bidders are expected to submit bids and well as what information is to be included in the bid as well as a bid title and a bid number on the outside of the envelope. Terms and General Conditions: This section includes information about the liabilities and insurance of projects as well as the right to decline or revise insurance requirements based off of city rules and limits. Bid Submission Checklist: This bid sheet checklist includes all necessary components of a bid that are expected before submitting a bid to ensure all aspects of the bid are included.
what are ethics and why are they important to the construction industry
THE STUDY OF MORAL VALUES, ISSUES, AND DECISIONS IN BUSINESS PRACTICE. Ethics are important in the construction industry because it keeps people from taking advantage of others in all aspects of construction from the bidding process all the way until the final product and payment.
substantial completion
Substantial Completion refers to a stage of a construction or building project or a designated portion of the project that is sufficiently complete, in accordance with the construction contract documents, so that the owner may use or occupy the building project or designated portion thereof for the intended purpose.
prevailing wage/Davis Bacon
The Davis-Bacon Act of 1931 requires contractors and subcontractors working on federally funded jobs to pay their laborers wages and benefits no less than what others locally pay their workers for similar projects. This is called the "prevailing" wage.
competitive bid
The basic structure of the bidding process consists of the formulation of detailed plans and specifications of a facility based on the objectives and requirements of the owner, and the invitation of qualified contractors to bid for the right to execute the project.
Discuss the level of influence on cost vs. cost spent over the life of a project.
The level of influence on cost of a construction project is based on the factors in which costs are based on which can include things like land acquisition, permits, construction costs, and extra finances to keep aware of including maintenance, repair, replacement, and facility and system maintenance. Though the projected outcome does not always line up exactly as the estimate states as things like maintenance, repair, replacement, and facility and system maintenance are hard to account for which is why the actual outcome of a project differs from the intended outcome stated in the estimated bid price. (level of influence lowers as it gets closer to the end of a project)
prequalification
The purpose of such prequalification shall be to limit prospective bidders for the specific construction project to contractors who demonstrate themselves to be qualified to construct the project
weighted criteria matrix
The weighted criteria matrix is a valuable decision-making tool that is used to evaluate program alternatives based on specific evaluation criteria weighted by importance. ... The matrix itself is constructed with the alternatives listed along one side and the review criteria along the other.
unbalanced bidding
Unbalanced bidding is where a bidder places a high price on some items and a low price on other items in a unit price contract. ... Before a bid can be rejected as unbalanced, it must be found both mathematically unbalanced and materially unbalanced
pre-bid meeting
pre-bid meetings are held during the bid/proposal preparation period. The purpose of a pre-bid meeting is to clarify any concerns bidders may have with the solicitation documents, scope of work and other details.
Name and define the purpose of workers' compensation, builders' risk, and general liability insurance.
Workers' compensation: a type of business insurance that provides benefits to employees who suffer work-related injuries or illnesses. Specifically, this insurance helps pay for medical care, wages from lost work time and more. (Varying by state) Builders' risk: Coverage that protects a person's or organization's insurable interest in materials, fixtures and/or equipment being used in the construction or renovation of a building or structure should those items sustain physical loss or damage from a covered cause. General liability: A standard insurance policy issued to business organizations to protect them against liability claims for bodily injury (BI) and property damage (PD) arising out of premises, operations, products, and completed operations; and advertising and personal injury (PI) liability.
pay when paid
a "Pay-When-Paid" clause is the prime contractor informing the subcontractor that they will pay them once they receive payment from their customer (usually the property owner, but can also be the developer)
no damage for delay
a clause contained in contracts which grants a party to the contract an extension of time but does not reimburse that party for any additional costs suffered during that time.
bid shopping
bid shopping is the practice of divulging a contractor's or subcontractor's bid to other prospective contractor(s) or subcontractor(s) before the award of a contract in order to secure a lower bid
consideration
careful thought, typically over a period of time.
describe the components of a bid estimate and various considerations which impact each.
components: - quantity takeoff for each item (supply and demand, location purchased) - price items and "extend" ie. calc. total price in respect to each item and its unit price (material storage, quantity purchased, government regulations, quality of material needed) - material cost - labor cost (Productivity, labor rates) - equipment cost (moving equipment, cost of erection and dismantling equipment on site, small tools) - analyze and add subcontract costs (complete?, work items critical, subs reputation, select any sub, parameter done just in case) - add bonds and insurance required for project - add overhead cost - add profit
identify the major types of estimates, discuss when each type would occur during the life of a project, identify the likely person performing the estimate, and how accurate each type of estimate is likely to be (for the accuracy, knowing that a conceptual estimate is likely to be +/- 15-20% is good enough).
conceptual estimates: No drawings, inaccurate, concept stage of a project, experienced estimator can help with the estimation once the owner knows a rough estimate of what materials are needed and to what scale. ie. hospitals use this for say hospital beds and calculate based on the intended amount of beds needed. (about +/- 30% accurate) preliminary estimates: preliminary set of drawings, higher level of accuracy, common use: square foot method, can be used after the initial design stage of the project. (conceptual stage?) (about +/- 15-20% accurate) detailed estimates: complete set of plans "count every brick and stick", most reliable estimate (about 90-95% accurate)
understand and describe the importance of emotional intelligence in the work environment
emotional intelligence is being able to identify and control and manage your emotions in situations. This is important as when people are working together there are very frequent occasions of seeing things differently as well as how people plan on going about things and being able to keep yourself controlled and professional to work through misunderstandings efficiently.
agreement
harmony or accordance in opinion or feeling; a position or result of agreeing.
name factors that impact project performance
labor and equipment weather constructibility of the design length of the workday day shift vs. night shift efficiency of tools and equipment effort expended by the labor force level of training crews number of crews working in the same space government regulations
alternate
occur in turn repeatedly.
understand the different behavioral trait a person possesses and how understanding them will improve individual performance and team success.
yes
Discuss the differences between the following types of contracts.
· Lump sum: a single 'lump sum' price for all the works is agreed before the works begin. · Unit price: a type of contract based on estimated quantities of items and unit prices · Cost plus percentage of cost: This type of contract specifies that the buyer must pay all the project costs incurred by the seller, plus an additional amount for profit. · Cost plus fixed fee: A cost-plus-fixed-fee contract is a cost-reimbursement contract that provides for payment to the contractor of a negotiated fee that is fixed at the inception of the contract. · Cost plus fee with guaranteed maximum price: Compensation is based on a fixed sum of money. The total project cost to the owner will not exceed an agreed upper limit.
identify and understand characteristics of the 4 major types of construction sectors.
· Residential Housing Construction: - Residential construction is the business of building and selling individual and multi-family dwellings. · Institutional & Commercial Building: - Commercial & Institutional Facilities comprises the building of business and commercial facilities such as, medical buildings and hospitals, universities, correctional facilities, industrial and manufacturing facilities, professional office buildings, government office buildings, municipal buildings, hotels, · Specialized Industrial Construction: - Industrial construction is a specific form of building that requires expert training and highly experienced workers who can multi-task. Many industrial construction companies are large, multi-national firms. Projects are run by a bevy of managers, engineers and architects. · Infrastructure & Heavy Construction: Infrastructure is often called heavy civil or heavyengineering that includes large public works, dams, bridges, highways, railways, water or wastewater and utility distribution. Industrial construction includes refineries, process chemical, power generation, mills and manufacturing plants.
List the important items included in an advertisement for bid.
• Date/Place of Bids • Lowest Responsible Bidder • Right to Reserve • Deposits, Bonds • Withdrawal/Rejection • Start Date/Completion Date •Award Date
