ARE 5.0 Construction & Evaluation

Structural, Mechanical, and Electrical engineering services are part of the Scope of the Architect's Basic Services.

(3) Services, other than Architectural Services, that are part of the Architect's Scope of Basic Services, per AIA B101.

1. Architect's Supplemental Instructions 2. Change Order 3. Construction Change Directive

(3) ways in which the Contract may be changed or modified

Factors that can have an effect on cost estimates

1. Availability of labor & material, labor rates, material prices, resources to produce the material, convenience of transportation, location (more remote = more costly), less predictable costs of rural areas. 2. High Interest Rates = less housing construction = lower material prices Increased cost of living = increased union wages and higher labor costs

(5) Contract elements between Owner and Architect

1. Description of Services Provided 2. Fees of Services 3. Name, Address, and License Number of Architect 4. Provisions for Additional Services 5. Terminal Clause

(4) Conditions outside the Architect's control in developing cost estimates

1. Market Conditions 2. Inflation and the Cost of Goods & Services 3. Contractor Means & Methods of Construction 4. Unknown Site Conditions

(5) phases used by firms to help in cost estimating

1. Pre-planning/Proposal Phase: Cost is broken down by units, which would come from the occupancy of the building. 2. Programming Phase: Function of spaces and unit costs come from similar buildings. 3. Schematic Design: Determines major elements in the building, such as number of plumbing fixtures, electrical layout, structure, and mechanical systems. 4. Design Development: Defined materials like windows, doors, dropped ceilings, and cabinets are added. 5. Construction Documents: Finishes are in place and should reflect the pre-bid cost breakdowns.

(7) Steps in Project Development Budget

1. Site Acquisition & Purchase 2. Construction: Off-Site and On-Site 3. Professional Services (Architect, Engineers, and Consultants) 4. Miscellaneous Fees (bids, permits or reports) 5. Inspection and Testing 6. Contingencies 7. Financing Costs

(3) ways cost estimates can be performed during Programming

1. Unit cost system. 2. Historical data on similar types of projects. 3. Cost per square foot.

(4) Negative effects possible from shortening a schedule

1. Work overtime - costly and inefficient. 2. Hire more people - new to project, inexperienced, requires time to train. 3. Reduce man hours - poor quality of drawings. 4. Overall - causes higher costs for Design and Construction, and lower quality project.

Typical profit margin factored into the Construction Cost estimate

15-20% for smaller projects 10-15% for larger projects 5-10% for ver large projects

If the Contractor encounters human remains, archaeological sites or wetlands not indicated in the Contract Documents, he/she shall immediately suspend Work and notify the Owner & Architect. Upon receipt of such notice, the Owner shall take action to obtain governmental authorization required to resume operations. [See AIA A201 3.7.5]

A Contractor discovers a wetland on the site not indicated on the Contract Documents? What must he/she do?

Supplemental Instruction

Additional instructions or interpretations by the Architect. They call for minor changes in the Work and assist the Architect in performing obligations as interpreter of the Contract Documents. There is NO change in contract time or sum and this document only requires the Architect's signature.

After the work has commenced, the Contractor may only request evidence when: 1. Owner fails to make payments to the Contractor. 2. Change in Work that changes the Contract Sum. 3. Contractor identifies in writing reasonable concern regarding the Owner's ability to fulfill obligations under the Contract. [See AIA A201 2.2.1]

After work has commenced, when can the Contractor request evidence from the Owner of financial ability to fulfill the contract requirements?

Allowance

An amount set aside to cover the cost of certain items not yet specified. For example, an allowance of $1,000 was put into the bid since the actual dishwasher has not yet been selected.

An invitation to bid

An invitation to a selected list of Contractors to solicit bids for a project.

1. Prepare construction documents. 2. Prepare written specifications. 3. Prepare the project manual. 4. Prepare the drawings for submittal to local agencies. 5. Coordination of consultants' drawings.

Architect's basic responsibilities during Construction Documents

1. Prepare preliminary evaluation of Owner's program. 2. Exploration of different design alternatives. 3. Meeting with local officials. 4. Meeting and preliminary coordination with consultants. 5. Submit to the Owner an estimate of the Cost of Work.

Architect's responsibilities during Schematic Design

The Architect reviews shop drawings only for the limited purpose of checking for conformance with the contract documents and compliance with the design intent.

Architect's responsibility in reviewing shop drawings

Project Development Budget

Budget for the entire project, including but not limited to Site Acquisitions, Construction Costs, Professional Service Fees, Permit and Inspection Costs, Financing Costs, and Contingencies.

Yes. If the Owner prefers to accept Work that is not in accordance with the requirements of the Contract Documents, the Owner may do so instead of requiring its removal or correction, in which case the Contract Sum will be reduced as appropriate and equitable. [See AIA A201 12.3]

Can the Owner accept work that is NOT in accordance with the requirements of the Contract Documents?

Quantity and Quality (in regards to project budget)

Change in one will ultimately affect the other. Sometimes these changes are negative, such as if the Owner decides to increase the quantity of an item in the building and thus reduce the quality in order to keep the budget intact.

Cost estimating method used during the Construction Documents

Complete and final pricing of the project, based on direct quotes from suppliers, installers, sub-contractors and manufacturers. Requires great deal of effort and can only be done once nearly everything in the building has been specified. This pricing is a final check before construction begins/allows for revision to the design as needed to meet the budget.

Fast track schedule

Construction documents are issued in phases and construction begins while design is still being completed.

ENR 20 Cities Building Cost Index

Cost estimating with Parameter Costs can be adapted to a city by using ______ or adding an inflation factor.

1. Contractor notifies in writing of the proposed change (Owner and Architect may request as well). 2. Architect completes a Proposal Request detailing changed work and sends to Contractor. 3. Contractor submits an impact of Cost & Time of proposed work to Architect for review. 4. If Owner decides to proceed with Work, Architect prepares the Change Order and three parties sign.

Describe the Change Order process.

1. Contractor submits the final Application for Payment to the Architect. 2. Architect makes inspection to determine Final Completion, that all remaining Work is completed in accordance with the Contract Documents. 3. Architect issues final Certificate of Payment to the Owner, which states that the work has been completed in accordance with the Contract Documents and the outstanding balance is now due. [See AIA A201 9.10]

Describe the process for Final Completion and Final Payment.

Cost estimating method used during the Design Development

Detailed pricing based on the actual components being considered, including windows, curtain walls, finishes and equipment.

Construction Change Directive is used when parties can't agree to the terms of a Change Order, or time is of the essence. They do not require the agreement of the Owner and Contractor prior to issuing.

Difference between a Change Order and Construction Change Directive.

No, the Contract Documents consist of the Owner-Contractor Agreement; the conditions of the Contract (general, supplementary, and other); the drawings, specifications and any addenda issued prior to executing the Contract; and any modifications issued after the execution of the Contract.

Do the Contract Documents include bidding instructions?

No, a Contract allowance shall cover the cost to the Contractor of materials and equipment delivered to the site and all required taxes. The Contractor's costs for unloading and handling at the site, labor, installation costs, overhead, profit and other expenses shall be included in the Contract Sum, but not in the allowances. [See AIA A201 3.8.2]

Does a Contract allowance cover labor, installation or overhead costs?

No. The Contractor is not required to determine that the Contract Documents are in accordance with applicable laws, statutes, ordinances, codes, rules, regulations or lawful order of public authorities, but should notify the Architect of any nonconformities.

Does the Contractor review the Contract Documents for compliance with applicable laws, codes and regulations?

No, unless otherwise provided in the Contract Documents, the Contractor shall secure and pay for the building permit as well as for other permits, fees, licenses, and inspections by government agencies necessary for proper execution and completion of the Work.

Does the Owner pay for the building permit?

Addenda

Drawings or additional instructions that modify the Contract Documents after they have been issued to the bidder (but before received bids). Must be sent to all bidders.

If a portion of the Work is covered contrary to the Architect's request of to requirements specifically expressed in the Contract Documents, it must (if requested in writing by the Architect) be uncovered for the Architect's examination and be replaced at the Contractor's expense without change in the Contract Time. [See AIA A201 12.1.1]

During a site visit, the Architect discovers a portion of the Work was covered prior to a required inspection. What can the Architect require of the Contractor?

Depreciation

Federal tax benefit given for the decrease in the value of assets over time.

Estimate

Forecast of the likely cost of a the work (as opposed to a firm bid).

If the Owner files the Notice of Completion with the County Clerk Recorder's Office, it has the following effect on lien periods: 1. Prime Contractors - reduces the lien period from 90 to 60 days. 2. Subcontractors - reduces the lien period from 60 to 30 days. If no Notice of Completion is filed, the lien period is 90 days for both Prime and Subcontractors.

How does filing the Notice of Completion affect the period for Contractors and Subcontractors to file liens?

A Change Order is prepared by the Architect, signed by the Architect, Owner and Contractor. It includes a description of the change and cost or time adjustment. A Construction Change Directive is only signed by the Architect and Owner. It directs a change in work prior to an agreement in the Contract Sum or Time adjustment and is typically used in the absence of a total agreement on the terms of a Change Order.

How is a Change Order different from a Construction Change Directive?

The Owner and Contractor shall communicate with each other through the Architect, unless otherwise provided in the Contract Documents. Communication by and with Architect's consultants shall be through the Architect. Communication by and with subcontractors shall be through the Contractor. [See AIA A201 4.2.4]

How is communication between the Owner and Contractor provided for in AIA A201?

The Architect may request to see Work and it shall be uncovered by the Contractor. If such Work is in accordance with the Contract Documents, costs of uncovering and replacement shall, by appropriate Change Order, be at the Owner's expense. If such Work is NOT in accordance with the Contract Documents, such costs and the cost of the corrector shall be at the Contractor's expense. [See AIA A201 12.1.2]

If Work uncovered at the Architect's request is found to be in accordance with the Contract Documents, who is responsible for the expense of the Change Order?

1. Mutual acceptance of a lump sum properly itemized and supported by sufficient data. 2. Unit prices states in the Contract Documents or subsequently agreed upon. 3. Cost to be determined in a manner agreed upon by the parties and mutually acceptable fixed or percentage fee. [See AIA A201 7.3.3]

If a Construction Change Directive provides for an adjustment to the Contract Sum, what is the adjustment based on?

The Owner, upon (10) days' written notice of warning, may correct any deficiencies in the Work using his/her own forces. A Change Order will be issued, deducting from payments due the Contractor the reasonable cost of correcting the Work, including Owner's expense and compensation for the Architect's additional services if required. Such actions are subject to prior approval of the Architect. [See AIA A201 2.4]

If the Contractor neglects to carry out the Work according to the Contract Documents, what option does the Owner have to rectify the situation?

7 day's written notice

If the Owner suspends a project for more than 90 consecutive days for reasons other than the fault of the Architect, how many days' written notice must the Architect give before terminating the Contract, according to the AIA B101?

90 cumulative days

If the Owner suspends the project for reasons other than the fault of the Architect, what number of days must pass before the Architect can terminate their agreement, according to AIA B101?

1. Specifications 2. Conditions of the Contract for Construction: - General Conditions - Supplementary Conditions - Other Conditions 3. Invitation to Bidders / Instruction to Bidders

Information contained within the Project Manual

No, it must be incorporated into an Owner-Architect Agreement, such as AIA B102.

Is AIA B201 a standalone document?

Typical fees of Engineering Consultants (Struc., MEP, Civil)

Mechanical: 15% Electrical: 12.5% Civil: 10.5% Structural: 9.4% (% Construction Cost)

Direct Personal Expense Instead of a multiple of employee salaries, the client is billed for the salaries of staff working on the job, plus the cost of their benefits and set amount for overhead and profit. Since this is the exact cost of the employee for the Architect, this approach is best for new clients with speculative work, minimizing the risk for the Architect.

Method of compensation for Architectural Services that reduces risk to the Architect

General Obligation Bond

Municipal bond issues when a state or local government wants to raise money for a project. Shareholders (investors) are guaranteed to be repaid using future tax revenues.

Before commencing the work, the Contractor is required to: 1. Visit the site. 2. Become familiar with the Contract Documents. - Execution of the Contract by the Contractor is a representation that he/she has performed these actions. [See AIA A201 3.2.1]

Name (2) requirements of the Contractor prior to execution of the Contract.

N.I.C.

Not In Contract (Items not part of the contract and not provided or installed by the Contractor.)

Cost estimating method used during the Schematic Design

Preliminary (rough) estimates are based on pricing major elements, such as structural system selected and the MEP systems used.

AIA A201

The "General Conditions of the Contract for Constructions," which sets out the duties, responsibilities and relationships of the three parties (Owner, Architect & Contractor) during construction.

1. Contract Drawings (project plan set) 2. Project Manual (specs, general/supplementary conditions) 3. Invitation to Bidders / Instructions to Bidders 4. Updated estimate of the Cost of Work

The Architect is responsible for coordinating these (4) documents during the Construction Documents Phase.

Time Based billing methods

The following are examples of what type of billing method? 1. Multiple of Direct Salary Expense 2. Direct Personnel Expense 3. Hourly Billing Rate

Critical Path Method

The path with the longest required time is the Critical Path and the activities on that path are called Critical Activities. Reducing the critical path reduces the whole schedule and increases job costs, but decreases overhead costs.

Contract Sum [Per AIA A201]

The total amount payable by the Owner to the Contractor for the performance of the Work under the Contract Documents. [See AIA A201 9.1]

Revenue Bond

Type of municipal bond where the shareholders are promised payment from the revenue collection of the project, such as tolls from a new bridge, instead of being repaid by future tax revenue. It is less secure than a General Obligation Bond and typically offer slightly higher interest rates.

1. Schematic Design: Time to complete affected by project size and complexity; quality of Client's program info; decision making ability of Client; design team. Usually 1-2 months. 2. Design Development: Time to complete affect by complexity of project. Usually 2-6 months. 3. Construction Documents: Time to complete affect by complexity of project. Usually 3-7 months. 4. Bidding & Negotiation: Usually 3-6 weeks. 5. Construction Administration: Varies depending on size/complexity of project. May require years to complete.

Typical project schedule, itemized by phase

Before commencing the work, the Contractor may request the Owner to provide reasonable evidence that the Owner has made financial arrangements to fulfill the Owner's obligations under the Contract.

Under what conditions may the Contractor request the Owner to provide evidence of financial ability to fulfill the requirements of the contract?

1. Shop Drawings are drawings, diagrams, schedules, and other data specific to the Work. 2. Product Data are illustrations, standard schedules, performance charts, instructions, brochures, diagrams, etc., illustrating materials or equipment for some portion of the work. 3. Samples are physical examples that show materials, equipment or workmanship and help establish standards during construction of the project. [See AIA A201 3.12]

What are shop drawings, product data and samples?

If the Architect does not issue a Certificate for Payment through no fault of the Contractor, or if the Owner does not pay the Contractor within 7 days after the date established in the Contract Documents, then the Contractor may (upon 7 additional day's written notice to the Owner and Architect) stop the Work until payment of the amount owed to the Contractor is received. [See AIA A201 9.7]

What conditions must be present in order for the Contractor to stop the Work?

Upon (7) days' written notice to the Owner & Architect, the Contractor may terminate: 1. If work is stopped for 30 consecutive days through no act or fault of the Contractor. 2. Acts of government or court order stopping Work. 3. Non-payment by Owner. 4. Owner fails to furnish financial evidence of being able to complete requirements of contract.

What conditions must exist for the Contractor to terminate the Contract?

1. Bid Security Form 2. Subcontractor List 3. Substitution List

What could be some of the supplements to the Bid Forms?

The Owner shall furnish surveys, legal limitations, utility locations and a legal description of the site. The Owner must also furnish all information or services required by the Contract Documents. [See AIA A201 2.2.3]

What documents is the Owner required to give to the Contractor?

The Standard Form of Agreement between the Owner and Architect, without a Predefined Scope of Architect's Services. This document provides agreement terms only and does not include a scope of the Architect's services. This must be inserted into Article 1 or attached as an Exhibit. B102 also contains provisions for mediation and arbitration of claims and disputes.

What does AIA B102 define?

1. A101 - Agreement between Owner and Contractor 2. Performance Bond and Payment Bond [A312] 3. Certificates of Insurance

What forms could be included as part of the contract between the Owner and the Contractor?

1. Invitation to Bid 2. Prequalification Forms 3. Instruction to Bidders 4. Information available to Bidders 5. Bid Forms

What forms would be a part of the Bidding Requirements?

Also called "accelerated" or "telescoped." CD's are issued in phases. Requires coordination and precludes against major design revisions. Requires staged bidding - may get many contractors and therefore makes it hard to get a fixed price early on. Usually needs a CM to oversee.

What happens when a project is "fast tracked"?

On the basis of the site visits, the Architect will keep the Owner informed about the progress and quality of the Work and report to the Owner: 1. Known deviations from the Contract Document. 2. Defects and deficiencies observed in the Work. [See AIA A201 4.2.3]

What information should the Architect report to the Owner during construction?

A Pro-forma is a financial analysis of the building project, showing costs and return on investment. This report is typically done by the client at the beginning of the project to determine if the project will be profitable.

What is Pro-forma? Who does it? During what phase of the project is it typically done?

This document allocates the entire Contract Sum to the various portions of the Work. It is submitted by the Contractor to the Architect prior to the First Application for Payment. The schedule is used by the Architect as a basis for reviewing Contractor's Applications for Payment. [See AIA A201 9.2]

What is a Schedule of Values? How does the Architect use this document?

The Contractor represents that he/she has: 1. Reviewed and approved the documents. 2. Determined and verified materials, field measurements and field construction criteria, or will do so. 3. Checked and coordinated information with the Contract Documents. [See AIA A201 3.12.6]

What is represented to the Owner and Architect when the Contractor submits shop drawings, product data and samples?

The Architect will visit the site at intervals appropriate to the stage of construction to become generally familiar with the progress and quality of the Work and keep the Owner informed about the progress of the Work, as well as notify the Owner of any non-conforming conditions at the site. The Architect will not be required to make exhaustive or continuous site inspections. [See AIA A201 4.2.2]

What is the Architect required to do regarding site visits?

The Architect will review work for compliance with Contract Documents and keep Owner informed of the progress of the Work. The Architect will also provide administration of the Contract as described in the Contract Documents and will be the Owner's representative during construction until the date the Architect issues the final Certificate of Payment.

What is the Architect's primary obligation during the construction phase?

If the Contractor knowingly performs Work in violation of laws, codes and/or regulations, the Contractor shall assume responsibility of the Work and bear the costs of correction. [See AIA A201 3.7.3]

What is the Contractor subject to if he/she knowingly performs Work in violation of laws, codes, and/or regulations?

If the Architect is unable to resolve a conflict between the Owner and Contractor, or if doing so would be a conflict of interest to the Architect, the next step would be a formal process of Mediation administered by the American Arbitration Association. [See AIA A201 15.2.5]

What is the next step if the Initial Decision Maker fails to settle a conflict between the Owner and Contractor?

The primary obligation and responsibility of the Contractor is to perform the Work in accordance with the Contract Documents. [See AIA A201 3.1.2]

What is the primary obligation of the Contractor?

The Architect will review and certify the amounts due to the Contractor and will issue Certificates for Payment in such amounts. [See AIA A201 4.2.4]

What is the responsibility of the Architect in regards to Contractor's Applications for Payment?

According to the A201, General Conditions, the Contractor must correct any work not found to be in compliance with the Contract Documents within (1) year of the Substantial Completion. [See AIA A201 12.2]

What is the warranty period for the Contractor's work?

The one-year period for correction of Work shall be extended with respect to portions of Work first performed after Substantial Completion by the period of time between Substantial Completion and the actual completion of that portion of the Work, according to A201 General Conditions. [See AIA A201 12.2]

What is the warranty period for work performed after Substantial Completion?

1. Establishing a list of prospective contractors. 2. Obtaining either competitive bids or negotiated proposals. 3. Confirming responsiveness of bids or proposals. 4. Determining the successful bid or proposal. 5. Awarding and preparing contracts for construction.

What items does the Architect assist the Owner with during the Bidding & Negotiation Phase?

The Contractor shall carefully study and compare varios Contract Documents (drawings, specs, etc.) before starting each portion of the Work. [See AIA A201 3.2.2]

What must the Contractor do before commencing each portion of the Work?

If the Contractor encounters concealed or unknown conditions during construction, he/she shall promptly notify the Owner and Architect before conditions are disturbed and in no event later than 21 days after the first observance. [See AIA A201 3.7.4]

What must the Contractor do if concealed or unknown conditions are encountered on the site?

1. Affidavit that payroll, bills for materials and equipment and other indebtedness have been paid or satisfied. 2. Submit Contractor's Affidavit of Release of Liens. 3. Certificate state that the insurance is in effect and no known reason for it not being renewable. 4. Consent of Surety. 5. Proof of release of all applicable liens from Subcontractors, material suppliers, and vendors. [See AIA A201 9.10.2]

What must the Contractor submit to the Architect in order to receive Final Payment?

If the Contractor fails to correct Work that is not in accordance to the Contract Documents or repeatedly fails to carry out the Work, the Owner may issue written order to stop the Work until the cause of the order has been eliminated. [See AIA A201 2.3]

What rights does the Owner retain in regards to stopping the Work?

1. Distribute proposal documents to prospective contractors. 2. Organize and participate in selection interviews with the prospective contractors. 3. Participate in negotiations with prospective contractors. 4. Prepare a summary report of the negotiation results.

What services is the Architect responsible for regarding the negotiated proposals?

1. Distribute Bidding Documents to prospective bidders, maintaining a log of distribution. 2. Organizing and conducting a pre-bid conference for bidders. 3. Preparing responses to questions from bidders and issuing addenda. 4. Organizing and conducting opening of the bids and distributing the bid results.

What specific responsibilities does the Architect have in bidding the project?

The Architect has the authority to reject Work that does not conform to the Contract Documents. The Architect may also require inspection of testing of the Work whenever she considers it necessary or advisable. [See AIA A201 4.2.6]

When does the Architect have the authority to reject Work?

Owner may terminate the contract within (7) days' written notice if Contractor: 1. Repeatedly refuses or fails to supply enough workers or proper materials. 2. Fails to make a payment to Subcontractors. 3. Repeatedly disregards applicable laws, codes, etc. 4. Is guilty of substantial breach of the Contract Documents. [See AIA A201 14.2]

When may the Owner terminate the Contract for cause?

The Owner may, at any time, terminate the Contract for the Owner's convenience and without cause. Upon receipt of written notice from the Owner of such termination, the Contractor shall cease operations, take actions necessary for the protection and preservation of the work, and terminate all existing subcontracts except for Work directed to be performed prior to the effective date of termination.

When may the Owner terminate the Contract for convenience?

AIA B201 - Standard Form of Architect's Services: Design and Construction Contract. This is based on the five traditional phases: Schematic Design, Design Development, Construction Documents, Bidding/Negotiation, and Construction Administration.

Which AIA document, other than the B101, provides the Architect's Scope of Basic Services?

The Architect generally establishes the requirements for the construction schedule, while the Contractor prepares the actual schedule of how the work will be performed.

Who established the requirements for the construction schedule?

The Architect is responsible for ensuring all applicable codes, laws, and regulations have been addressed in the drawings. The Contractor is only responsible to build per the Contract Documents.

Who is responsible for making sure the drawings comply with the building codes and other regulations?

The Contractor shall provide and pay for labor, materials, equipment, tools, construction equipment and machinery, water, heat, utilities, transportation and other facilities and services necessary for proper execution and completion of the Work, unless otherwise provided for in the Contract Documents. [See AIA A201 3.4.1]

Who is responsible for paying for labor and materials?

The Architect. She may also authorize minor changes in the work that do not affect Contract Time or Sum. [See AIA A201 4.2.8]

Who is responsible for preparing Change Orders and Construction Change Directives?

The Contractor shall review shop drawings, product data and samples for compliance with the Contract Documents, approve and submit to the Architect for review.

Who is responsible for receiving and approving shop drawings before they are sent to the Architect?

- The Contractor shall make arrangements for tests and inspections and shall bear all related costs of tests, inspections and approvals as indicated in the Contract Documents. - The Owner shall bear costs of tests, inspections or approvals that do not become requirements until after bids are received or negotiations concluded; and tests, inspections or approvals where building codes prohibit the Owner from delegating costs to the Contractor. [See AIA A201 13.5]

Who is responsible for the costs related to tests and inspections?

The Contractor shall be solely responsible for the construction means, methods and techniques, sequences, and procedures as well as for coordinating all portions of the Work, unless the Contract Documents give other specific instructions. [See AIA A201 3.3.1]

Who is responsible for the supervision and construction procedures of the Work?

The person identified to render initial decisions on claims, usually the Architect, unless the Owner and Contractor choose otherwise. The Architect shall endeavor to fairly and impartially try to resolve a dispute. [See AIA A201 15.2]

Who is the Initial Decision Maker and what do they do?