Chapter 10

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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.


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