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Contract Training Class I

Contract Review and Approval Process. Contract Training Class I. This course will consist of three classes Class 1: Contract review and approval process Class 2: Managing Projects to the Prime Contract Class 3: Selecting, Issuing, and Managing Sub-Contracts, Work Orders and Purchase Orders.

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Contract Training Class I

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  1. Contract Review and Approval Process Contract Training Class I

  2. This course will consist of three classes • Class 1: Contract review and approval process • Class 2: Managing Projects to the Prime Contract • Class 3: Selecting, Issuing, and Managing Sub-Contracts, Work Orders and Purchase Orders

  3. The Contract Review Process • Two Categories • Our Prime Contracts • Our Sub Contracts

  4. PRIME CONTRACTS

  5. Contracts All Values • Prime Contracts • General Procedures • Contract received by the coordinator • Enter into tracking log • Make a review copy • Attach a review tracking sheet • Attach a project manager review sheet • Turn over to Project or Service Manager for review

  6. Contracts Less than 1 Million Dollars • Project Manager • Review contract using the Project Manager Review Sheet and answer the questions. • Make a copy of the contract for the superintendent or supervisor that will manage the contract. • Be sure to remove dollar values before issuing the contract. • Be sure to include the project manager review sheet • Contracts under 1 million dollars • Date and Initial the Contract Review Tracking Sheet • Turn over contract with all documents to the VP of Operations or the Director of Service for review and approval

  7. VP of Operations or Director of Service will fill out the contract summary sheet and will • 1. Recommend for signing and give to the President for signing • 2. Return to Project or Service Manager for action items The President will sign and return to the coordinator for filing and return mail. The Coordinator will ensure the superintendent or Service Tech receives a copy of the executed contract with review sheets. Ensure the contract values are removed from the field copies.

  8. EXCEPTIONS: • 1. Contracts which are Guaranteed Maximum Price • 2. Contracts involving Solar or Wind installations • Both of these types of contracts are to be treated as if they are contracts of 1 million dollars or greater regardless of the contract price.

  9. Contracts 1 Million Dollars or Greater • Project Manager • Review the contract using the Project Manager Review Sheet and answer all questions • Initial the Contract review tracking sheet • Turn over the contract and all documents to the Director of Education and Loss Prevention

  10. Director of Education and Loss Prevention • Make a copy of the Project Manager Review Sheet and a copy of the scope of work section and give to the Vice President of Preconstruction • Make a copy of the contract without prices for the Project Superintendent • Make a copy of the Guaranteed Maximum Price sections and a copy of the review sheet and give to the Vice President of Finance • Schedule a contract review meeting within 3 days with the Project Manager, VP of Operations or Director of Service, the Project Coordinator and the Project Superintendent. • Send all parties their copies for review in advance of the meeting • All parties need to review their copies prior to the meeting and be prepared to discuss the contract at the meeting

  11. Review Meeting • Chaired by the Director of Education and Loss Prevention • The Project Coordinator will complete meeting minutes and distribute after the meeting • Agenda • Overview of Contract: Director of Education and Loss Prevention • Potential Risks and Mitigations: Director of Education and Loss Prevention • Financial Risks and Requirements: VP of Finance • Work Scope Risks and Mitigations: Project Manager and VP of Preconstruction • Assignment of Action Items and Determination of Deadlines and Follow Up: Project Manager

  12. Post Review Meeting • Outlook tasks with deadlines will be sent by the coordinator for all action items • The project manager will negotiate any items needed as determined in the meeting • The project manager will document conversations and agreements • Upon completion of all action items and negotiations, all paperwork will be turned over to the project coordinator.

  13. The Project Coordinator will put together a completed contract version ready for signature • This will also include the review copies, notes and review sheets • This should also include signature highlights

  14. The project coordinator will give the final contract version to the Director of Education and Loss Prevention • The Director of Education and Loss Prevention will review the final version, ensure all action items are completed, complete the contact summary sheet and place on top of the contract. • The Director of Education and Loss Prevention will: • 1. Recommend Signing and give to the President for Execution • 2. Return to the Project Manager for further Action

  15. The President will sign and give to the coordinator for filing and return mailing.

  16. SUBCONTRACTS, POs, and WORK ORDERS

  17. SUBCONTRACTS AND VENDORS • PLEASE KEEP TWO THINGS AT THE FOREFRONT OF YOUR THOUGHTS • 1. Everyone in our industry attempts to push all liability to us. • 2. The Customer is Always Right……AND when it comes to subcontracts and POs……WE ARE THE CUSTOMER

  18. Subcontract Process • Subcontractor Approval and Pre-qual Process • All new sub contractors are to be sent the following: • Pre-qual Package • Copy of our template sub-contract • Be sure to include the correct type of sub contract. • The pre-qual package is to be returned to the Preconstruction Coordinator • The Preconstruction Coordinator will refer the pre-qual package to the Director of Education and Loss Prevention for review of safety and approval after checking credit references and EMRs. • The Preconstruction Coordinator will refer the pre-qual package to the VP of Finance for review and approval of financial stability • The preconstruction Coordinator will refer the reviewed package to the VP of Preconstruction for a reference check and final approval. The VP of Preconstruction will notify the manager if the contractor is not approved. • The preconstruction coordinator will enter safety record into database and add approved contractors to the approved contractors list and notify the Manager that the subcontractor has been approved. • The Preconstruction Coordinator will forward the completed package to the Accounting Manager for filing and vendor set up in accounting system

  19. SubContract, Work Order or Purchase Order • Subcontracts valued at less than 10,000 dollars do not need to be pre-qualed and can be issued a simplified subcontract in lieu of the standard subcontract. • Work orders are issued in lieu of a subcontract if we have a master sub contract with the contractor. • Our intent is to establish master sub contracts with as many contractors as possible if we intend to do more than one project with the subcontractor.

  20. Purchase orders are only issued to material suppliers. If labor is involved, use a subcontract or work order • New vendors: We will need a new vendor request and the request and W-9 sent to Angela. • We DO NOT ACCEPT other companies PO terms and conditions • Federal Projects: When issuing the subcontract or work order template, be sure to issue all pertinent exhibits for the project

  21. Types of Sub Contracts • Standard • The default contract • Simplified • For contracts less than 10K dollars only • Design only • For designers and engineers only • Labor or Equipment Only • For labor providers such as Aerotech or equipment providers such as equipment rentals or cranes only

  22. Letter of Intent, Notice to Proceed • If work needs to begin on a project before the contract process can be completed a Letter of Intent and Notice to Proceed to can be issued • These need to be limited in dollar amount • These need a clear limit and definition of scope • Must have attached to them the subcontract which will be executed (At least the template) • Must be signed by the contractor before work begins and we need insurance certificates before work begins • May be signed by President, VP of Operations or Director of Education and Loss Prevention before being sent to the contractor.

  23. Reviewing the Contract • Refer to the Review Packet you were given • 1. Contract Review Checklist • 2. Project Manager Review Checklist • 3. Contract Summary Sheet

  24. Lets do a quick contract review using the Project Mangers Contract Review Check List and the Sample Contract Supplied in Groups and then we will go over as a class.

  25. Summary • The contract is the agreement that the entire project will be managed by. We need to ensure that everyone that is involved in the supervision of the project understands the contract.

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