Chapter 10
Ethics role with bidding projects
GC are to keep subcontractor's bid confidential/ bid shopping or bid peddling is the process of showing competitors bids to contractors in hopes of them lowering their overall bid is unethical/ To prevent this from happening some owners may require contractors to list their subs on bid form and require their use as a condition of award
Contractors typically mark up thier submittals in which color?
Green
Plans and Specs
If there is any discrepancies between the two, specifications will govern
Litigation
Litigation through courts. Last resort due to high cost of legal and cost fees. Whos going to lose the least
Technical Specifications
Materials required to be submitted, number of copies, and the specific information to be provided
Which of following statements is true if the contract documents required #6 Rebar but #5 rebar was submitted and approved by the general contractor and the architect?
The approved submittal does not change the scope of the contract documents
Close out and Turnover
The final phase of a construction project. Time when punch list is completed, the building is operated and used by the owner, and the contractor receives their final payment. Getting 5% of money is the hardest
Minor Changes
With AIA documents allows architect to make small changes without approval from owner or contractor. Changes in price would need to be processed as change order
Millwrights
assemble and align rotating machines and equipment, such as turbines, and pumps
Project Executives
commonly referred to as vice president of operations, Construction manager, and project executives. Usually oversee multiple projects and have multiple project managers report directly to them Overall goal is to make sure project is going well from high level Look at overall project profitability, scheduling trends, and relationship with owner rarely involved with day to day operations/ set strategic goals and direction of the company Salaries are part of office overhead
Schedule of values
required at beginning of the project and provides breakdown of cost of work. Used for progress payments
Tapers or jointers
seal the joints in drywall board or other types of similar board
Notice to proceed
document issued by the owner after contract is signed which starts the project.
Contractors Stamp Includes
1. is accepted 2. is accepted with comments 3. needs to be revised 4. is rejected contractors use green ink, architects red, engineers blue
Claims and Disputes
Construction claim is an unresolved request by the contractor for additional time of money for something outside contract Examples: Slow change order, RFI, Submittal, Differing site conditions, weather conditions, errors and omissions in contract documents
Closeout Documentation
Contractor provides owner with all closeout documentation. Three Ring Binders will include: operational and maintenance data, subcontractor contact information, warranty info.
Quality Control
Cost, Time, Quality Examples: Inspections and Testing, Pre-Installation Meeting, Use of Qualified Contractors, Factory Inspections, Mock Ups and Samples, Stored Material
Which of following statements is true about the procurement process?
Submittals do not supersede the contract documents even if they have been reviewed by the general contractor and designer
Which of the following documents typically starts the warranty period?
Substantial completion
Notice of award an letter of Intent
documents provided by owner after bid has been awarded but before contract is issued. Start the administrative process: acquiring insurance, obtaining bonds, and starting the submittals
Permits
documents provided by the municipality having jurisdiction to approve the construction of a project. GC is responsible for gathering master permit. Specialty contractors such as MEP gather own permits
Illegal Immigration Reform and Immigrant Responsibility Act
eligibility is ensured with I-9 form filed within three days of starting work. E-verify is new way form is filed W-4 (Employee Witholding Exemption Certificate)- deals with paycheck tax witholdings
Pipefitters
fabricate and assemble highpressure piping often in industrial settings such as refineries, power plants, and water treatment facilities
Boilermakers
fabricate and assemble structural steel for steam assemblies, such as boilers, pressure vessels, and pipes
Iron workers
fabricate and erect structural steel
Sheet metal workers
fabricate and install HVAC ductwork
Rodbusters
fabricate, tie, and install reinforcing bars for concrete structures
Project Engineers
field engineer or assistant project manager Responsible for supporting the project manager and superintendent Managing submittals, RFI's and meeting minutes, taking field dimensions, negotiating minor change orders, scheduling updates, BIM files, tracking and documenting LEED points, creating punch lists, closing out documents
Submittal Process
first assembled by subcontractor. Product/material data also called cut sheets are produced by the manufacturer of the material. Cut sheets provide the specific tests and standards that the material meets. Shop drawings are different since they are custom documents for the specific project Trasmittal Contractors stamp will approve drawings
Sub's with significantly low bids for work most likely
improper estimate which could ultimately result in multiple change orders
Arbitration
included in contract as a required alternative to litigation. American Arbitration Association is the most well recognized certifying body for arbitrators. Can be legally binding
Certificate of Substantial Completion
indicates owner has accepted the building and that it can be used for its intended purpose. This starts warranty period. Project not finished until punch is complete
Transmittal
need when formally submitting submittal packages. Include here are indicates what is submitted, number of copies, and what the relevant specification sections are
Procurement phase
often called the bidding and award phase/ period of time between design and construction phases
Operators
operate machinery and equipment, such as backhoes, cranes or skid steers
Fair Labor Standards Act
passed in 1938 also called minimum wage law. Establishes minimum wage, overtime pay, record keeping requirements, and youth employment standards
Six Steps of Procurement Process
1.Bid scope of work- design is complete and contract is sent contractors (most likely three or more) 2. Award- bids are evaluated for complete scope of work in compliance with bid documents. Contractor will be notified with letter of intent or notice of award/ this starts precontract administrative activities, such as generating submittals, insurance, and obtaining bonding 3. Contract- formal contract with scope of work is negotiated and agreed to by involved parties/ specific conditions such as freight cost, taxes, bonding, accounting terms, warranty terms, and insurance cost must be allocated to appropriate parties 4. Submittals- submittals include shop drawings, product/ material data and samples are provided by the subcontractor and reviewed by the prime contractor and design team for consistencies between contract documents. Contract documents always supersede reviewed submittals 5. Order materials and Equipment- materials are only ordered after submittals have been reviewed. Bill of landing is used by freight companies. Freight on board (FOB) refers to when ownership is transferred. Vendor has ownership of the material until it arrives at the hob site 6. Installation and invoicing- Typically contractor can bill for the material even if it isn't installed in their next billing cycle
Punch List
After Contractor quality check, owner and designer to walk to the project and generate their punch list.
Which of following alternative dispute methods is often required by contract to resolve a claim?
Arbitration
Negotiation
Best option. Involve all parties working out situation among themselves without expensive outside involvement.
What is the act of showing subcontractors the price of their competitors in the hope that they will lower their bid called?
Bid shopping
Accounting terms
COD- Collect on delivery/ vendors require payment in full once material is delivered Payment is normally due within 30 days from the date material is received 1/10 Net 30 - means that if payment is provided within 10 days a 1% discount is given but regardless full payment is due in 30 days
Crew Leaders
Commonly referred to as field superintendent Responsible for supporting superintendent in field, leading crews, daily time cards, conducting safety inspections, performing manual labor in support crews and training new personnel
Which of following documents starts the contractor's schedule to complete the project?
Notice to Proceed
FF&E (Furniture Fixtures and Equipment) is either
Owner furnished/owner installed(OFOI) or owner furnished/contractor installed (OFCI)
Normally but subs are responsible for purchasing equipment but there are cases its not the case
Phased Construction- Owner will long lead material and equipment while the rest of scope is bid out. Phased construction accelerates the entire schedule and saves the money of subs OH and Profit
What is the process of screening subcontractors before they bid a project to ensure they are capable of completing the work called?
Prequalifying
Which of the following is a term used to describe minor incomplete or deficient items that need to be completed before final acceptance of a building?
Punch List
Which of following documents is considered a submittal?
Shopdrawing
Project Managers
Similar to SPM's for small to midsize projects
Superintendents
Similar to Senior Super's
Who is most commonly responsible for creating shop drawings?
Subcontractor
Glaziers
cut and install glass, plastic material, and mirrors for windows, curtain walls, and storefronts
Stop work order
document by the owner ordering contractor to stop work. Financial issues, labor concerns, unsatisfied liens, contractors poor performance
Architect Supplemental Instructions (ASI)
document included with AIA contracts and used for minor changes in scope without any changes in schedule or cost
Certificate of Occupancy
document issued by municipality that building is safe to occupy and formally closes out permit. Project not finished until punch is complete. Allows owner to start installing FF&E
Construction Change Directive (CCD)
document issued by the owne/designer directing the contractor to proceed with changes to the work without necessarily agreeing to a price Advantage: work can proceed without having formally completing change order/ However if there are disputes in price, contractor loses leverage if work is already complete With AIA CCD require agreement by owner and architect
Change Order
document that formally changes the cost, duration, scope of the contract agreement. With AIA contracts owner, contractor, and designer must agree to changes
Record of as-built drawings
documents maintained by the contractor that show all of the deviations and changes in installation of the work from how it was shown on the contract documents
Substantial Completion
point when owner can use the building for its intended purpose. Need CO by building department, approval by fire marshall, lien releases for all work in place, and completion of all of the work except for minor punch list items. This date starts warranty period. This is important for contractors because this releases retainage which shifts leverage to contractor
Bids have a priority of being sent out
priority is driven by by either which material is needed first or by how long it takes to procure the material/ Examples: would be concrete, glazing, elevators
Request for Information (RFI)
question or request for clarification by the contractor to the designer. Response does not formally alter the scope, time, or price and should not be used as a substitute for a change order
Senior Superintendents
report to the SPM's or PM's Responsible for planning and scheduling construction activities, coordinating with subcontractors, maintaining daily logs and records, coordinating changes in the field, managing inspections, quality control and assurance, safety inspections, and all activities related to putting work in place
Senior Project Managers
responsible for overall success of the project daily basis- overall project plan, drafting subcontracts and purchase orders, processing progress payments, scheduling, change orders, negotiating claims, and managing relationships with owner and designer Also responsible for job-site HR responsibilities, such as evaluations and disciplinary actions
What does prequalifying sub's mean
screening to make sure they have the financial stability, past experience, safety record, and overall competence needed to complete work
Claim Resolution
several techniques at the parties disposal used to resolve claims: Negotiation, Mediation, Arbitration, Litigation
Mediation
similar to negotiations but involves neutral third party mediator who assist with the negotiations. Process is non-binding
Once the GC forms contract with subcontractor what is the sub responsible for
subcontractor is normally responsible for providing all labor, equipment, and material needed to perform there scope of work. Not uncommon for sub to sub out to other subcontractors.
Procurement
the overall process of finding and purchasing the materials and hiring the best possible subcontractors to build the project.