Roles & Responsibilities in Construction Management

1. Roles & Responsibilities in Construction Management Ben Shuman, PE Senior Environmental Engineer USDA, Rural Utilities Service (202) 720-1784 ben.shuman@wdc.usda.gov

2. First Let’s Talk AboutRoles & Responsibilities

3. Partners • Owner • Funding Agencies • Consulting Engineer • Construction Contractor

4. Owner • What are the owner’s responsibilities? • Need to be fully informed • Make final decisions on planning • Hire the engineer and contractor • Pay on time! • Resolve disputes

5. Consulting Engineer • Responsibilities before award: • PER (which defines scope) • Preliminary Design • Plans and specifications • Coordinates and assists in bidding/award

6. Engineer’s Role (continued) • After award: • Owner’s representative • Provide Resident Project Representation • Evaluate shop drawings • Visit site and observe construction • Reject defective work, evaluate change orders, and pay estimates • Determine final quantities for unit prices

7. Visits to Site by Engineer • Visit site as needed to observe as an experienced/qualified design professional; • Review progress and quality of work for benefit of owner; • Determine in general if work is proceeding per contract documents

8. Engineer’s Role (continued 2) • Evaluate substitutes and “or equals” • Make clarifications and provide initial decisions on disagreements • Determine substantial completion • Write punch list • Recommend Final Payment to the Owner

9. Limitations on Engineer’s Authority (and RPR) • Will not supervise, direct, control, have authority over or be responsible for: • means, methods, techniques, sequences, procedures of construction; • safety precautions or programs; • Acts or omissions of contractor, subs, or suppliers;

10. Limitations on Engineer’s Authority (continued) • Review of pay requests, documentation, operating instructions, schedules, guarantees, bonds, inspections, tests, approvals is: • only to determine generally that content complies.

11. Brief explanation of RD

13. Rural Development • Program Director • State Engineer • State Environmental Coordinator • Area Director • Area Specialist

14. Specialist • Provide information about the program • Main Point Of Contact • Performs some review of PER • completeness • financial info • Construction management • Loan servicing

15. State Engineer • 1/3 of job is engineering (the easy part) • 2/3 is people (the hard part)

16. Here’s the short story... • Reduce risk to the Agency and taxpayer • Provide an opinion to the Management

17. In Prioritized Order... • PER • Engineering Agreement • Review plans and specifications • Execute construction contracts • Construction management

18. Contractor • Build it per plans and specs • On time • Within budget • Absolute obligation to perform and complete the work in accordance with contract documents

19. Contractor’s Responsibilities • Supervise, inspect, and direct the work • Responsible for site, materials, equipment, and schedule • Responsible for all subs and suppliers • Responsible for site safety • Maintains record documents at site

20. What are the typical steps in a project?

21. From Cradle to Grave • Need for Project • Working with a Technical Assistance Provider • Selecting an engineer • Application • Design • Bidding and award • Construction • Operations (loan servicing)

22. Selecting an Engineering Firm • Owner develops Statement of Work (SOW) • Request For Qualifications (RFQ) process • Owner makes an informed decision

23. Statement of Work • What is a SOW • How to develop a good SOW

24. Request for Qualifications • What is an RFQ and its purpose • How to select the best engineering firm

25. Deliverables • What are the Engineering deliverables? • PER • 60% design • 100% design • Construction services • warranty inspection • What are the due dates for the deliverables?

26. Bid & Award of Contract • RD’s requirements • Open and free competition • Use of standard contracts unless approved otherwise • No conflict of interest • Competitive bidding • Low bid vs “Best Value”

27. Construction Management

28. Construction Management • Why do we even do it? • Protect the interest of the owner • Protect the interest of the taxpayer

29. Components • Pre-construction Conference • Monthly construction meetings (Partial Payments) • Change orders • Engineer Invoices • Prefinal Inspection • Punch List • Final inspections • Warranty Inspection

30. Pre-construction Meeting • Led by consulting engineer • All parties involved attend • RD has an outline of items to discuss • Clearly describe expectations for project – timelines, payments, change orders, etc. • Written record of meeting signed by all

31. Monthly Construction Mtgs • Led by consulting engineer • RD Specialist sometimes State Engineer or Construction Analyst also • Updated progress schedule from contractor if needed • Payment requests • The dreaded change order

34. Change Orders • Sometimes generated by contractor • Recommended by consulting engineer • May involve additional design work • RD • Confirms availability of funds • Scans for eligible purpose • Approval

35. Pay Requests • Quantities of work completed (unit prices) • Or based on schedule of values (lump sum) • Materials stored on or near site • RD forms signed by Engineer & Owner • RD Specialist confirms eligibility & funds • Compare % complete with % time complete

36. Roles of the Inspector • The inspector only does two things • Observe & report • Know the contract • Document in a daily log record book • Take photos • Safety

37. Safety • Know the safety plan • Inspector should let appropriate people know immediately of safety concerns or violations

38. What Inspector Should Not Do • Do not direct the contractor • Do not act as engineer • Do not act as owner • Know what authority you have (almost none)

39. Costs of Inspection • $50 - $100 per hour ($8K-$18K per month) • 4-7% of estimated construction cost • If contractor goes beyond allowed time, liquidated damages should pay for additional inspection costs • Budget enough money up front – should not use contingency funds

40. Common Problems • Inspector not on site • Inspector directs contractor • Inspector makes deals

41. Inspections – Prefinal and Final • Coordinate with Substantial Completion • Start of warranty period • Critical players • Owner/operator • Consulting Engineer/Resident Inspector • Contractor • Funding agencies • Final inspection confirms punch list completed • Triggers final payment

42. Warranty Inspection • 11 months after substantial completion • RD State Engineer should attend • Good idea to talk to operator • Any concerns should be addressed in writing to contractor • As-builts, O&M manuals

43. Liquidated Damages • Not a penalty • Should be enforced uniformly • Amounts established in advance • Interest • Engineering/Inspection • Administrative costs • Other costs

44. Contractor Default • Follow contract terms & notice requirements • Check state laws that may apply • Allow surety reasonable time to respond • Notify state licensing agency and Treasury Department if surety is unresponsive

45. Servicing andOperation & Maintenance • Run your system like a business • “Sustainable” systems

46. “Take-Aways” • Know your roles & responsibilities • If you’re more than one year past start of project and you haven’t gone to bid, it’s time to act • Owner is responsible for the project • Contractor is responsible for meeting terms of contract

47. Questions?Ben Shuman, PESenior Environmental EngineerRural Utilities Service202-720-1784ben.shuman@wdc.usda.gov