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CVE 4073/5073

CVE 4073/5073. Construction Cost Estimating Class #2: Contract Documents Prof. Ralph V. Locurcio, PE. Part I – Contract Documents. Contract Documents…. The Agreement or Contract The Specifications The Drawings Important Note: Unless otherwise specified this list is the

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CVE 4073/5073

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  1. CVE 4073/5073 Construction Cost Estimating Class #2: Contract Documents Prof. Ralph V. Locurcio, PE

  2. Part I – Contract Documents

  3. Contract Documents… • The Agreement or Contract • The Specifications • The Drawings Important Note: Unless otherwise specified this list is the “order of precedence” of the contract documents

  4. The Agreement or Contract… • The agreement is the legal document signed by the owner and the builder that outlines the terms under which the project will be built. • It includes such items as cost, time, management, reports, quality, penalties and all such details that define the owner’s “intent”.

  5. The Specifications… • Define the “qualitative” requirements of the project that is to be built. • Provide a detailed description of the performance features of all components of the project. • Describe the nature of the materials and the workmanship & procedures to be followed in constructing the project. • Include those aspects of assembly or construction that affect the performance of the components.

  6. The Drawings or Plans… • Define the “geometry” of the project and all of it’s components. • Include the general form, dimensions and details of all project features that are to be fabricated on site. • Show the relationship of all components to each other. • May include details, notes and instructions that amplify the specifications.

  7. Agreement of plans & specs… • Plans are frequently updated as the design progresses. • Specifications may be written independently of the plans. • Specifications are very complex and detailed; some changes are missed. • Specifications are often prepared by different authors. • Master or standard specifications may have been used. • Project budget may not allow for proper coordination of plans & specs

  8. Conflicts between plans & specs… • The contract takes precedence over the specifications. • The specifications take precedence over the plans. • Builder/contractor must notify the owner’s rep of any conflict he encounters.

  9. Other Problems with specs… • Use of generalities… terms not “specific” • Scope of work issues… intent not clear • Unenforceable phrases or conditions… Ambiguity generally settled in favor of the builder!

  10. Components of a spec… • Instructions to bidders: • May be part of General Conditions • Proposal & bid format • Bonding & certificates • Affidavits • General conditions: • Contract administration • Correlation of documents • Authority of parties • Supervision • Payment • Damages • Disputes • Technical provisions • Installation or fabrication instructions • Materials & performance criteria

  11. Common spec formats… • Construction Specification Institute (CSI) • Commonly called “CSI Format” • 17 Division breakout of work items • Organized by construction trades • Typically used for construction of “buildings” • Widely accepted by owners & builders

  12. CSI Format… 1. General requirements 10. Specialties 2. Site work & utilities 11. Equipment 3. Concrete 12. Furnishings 4. Masonry 13. Special construction 5. Metals 14. Conveying systems 6. Wood & plastics 15. Mechanical 7. Thermal & Moisture Prot. 16. Electrical 8. Doors & windows 17. Instrumentation & Controls 9. Finishes See pp.156-157 Fisk for detailed breakdown

  13. Industry specific specs… • ASCE Civil Engineering Format • State & Federal DOT Highway Format • City & County Civil Formats • AASHTO Standard Hiway Format • Non-DOT Standard Formats

  14. Standard Specs & Contract Provisions • Standard Specification: • General contract conditions • Standard technical specs • Covers all possible highway & bridge projects • May cover alternative methods • Special/Contract Provisions: • Must accompany Standard Spec • Adapts standard to a “specific” project • Contains special provisions particular to the project • Provides additions or deletions to standards

  15. Special Provisions… • Info similar to CSI Divisions… Tailored to “civil” or heavy engineering works Tailor standard specs to a specific contract application • Part I-Proposal & Contract • Notice Inviting Bids • Bid formats & related items • Agreement & related forms • Part II-Special Provisions 1. Definitions & terms 7. Legal relations & public 2. Bidding req & cond 8. Prosecution & progress 3. Award & execution 9. Measurement & payment 4. Scope 10. Construction details which add 5. Control modify or delete standard spec 6. Control of material

  16. Part II – Specifications in Contract Administration

  17. General Conditions… • Specify procedures for contract admin • Not intended to change the contract • Typical provisions: • Define terms used in contract docs • Preconstruction matters • Use/reuse of contract documents • Contract times & schedule • Changes • Payments • Suspension of work • Dispute resolution • Many more

  18. Most Common Spec Formats… • Engineers Joint Contract Documents Committee (EJCDC)… recognized by ACEC, ASCE, NSPE, CSI, AGC • American Institute of Architects (AIA) • International Federation of Consulting Engineers (FIDIC)

  19. Benefits of using standard specs… • Produced by collaboration with government & industry; critiqued by AE & legal professionals. • Withstood test of time & experience; complete, up to date. • Accepted as fair & equitable, builders familiar with them, terms understood. • Tested in court • Result in more stable bid prices

  20. Specs in Contract Admin… • Contract documents never perfect… • Field condition vary from design assumptions • Spec writers usually have no construction experience • Specs sometimes out of date • PM/CM must evaluate & respond • Requires considerable judgment & experience • Estimator must “read” the specs • Specs not a legal document for claims & disputes • Good communications between writer & inspector needed • Feedback to spec writer is essential

  21. Look for: Allowances & Tolerances… • No tolerance is poor management • There are no “absolutes” in reality • Design doesn’t require “absolute” compliance • Specified tolerances a better method • Manufacturing always specifies tolerances • Reasonable tolerances are justified • PM/CM sets the standard in the field • Practice would reduce bid prices

  22. Look for: Differing Site Conditions… • Unforeseen underground conditions • Latent physical conditions; unknown or unusual • Differ significantly from printed contract docs or data • Require increased work not included in bid • Architects responsibility in design • Make “reasonable” subsurface investigations • Advise builder of all available data & design assumptions • Not responsible for 100% accuracy • Builder’s responsibility in bidding • Not expected to perform subsurface investigation • Become familiar with all conditions of site • Cover risk with pricing & contingency • Federal Guidelines • Pay for reasonable “compensable” conditions • Reduces bidder’s risk & contingencies in contract • Sharing the risk • Parties agree to a formula in contract documents

  23. Look for: Materials specified… • AE obligation to ensure that materials & products conform to those specified. • Owner may claim negligence if components do not perform • Care must be exercised in accepting “alternatives” • Be especially aware of new or non-standard materials • Builder constantly seeking lowest market price for “acceptable” materials. • Must prove that all materials used meet spec • Must obtain owner’s (representative) approval to substitute • May not submit alternatives during bidding process

  24. Look for: Subcontracts… • Concept of “one-to-one” authority • PM/CM deals solely with the General Contractor. • General Contractor is responsible to hire subcontractors for the job. • Selection includes evaluation of the subcontractor’s competence • Responsibility includes all acts & omissions of any sub • General Contractor must have effective contracts, admin procedures & management • Architect & Owner/rep not responsible for how the Builder subcontracts the work

  25. Look for: Shop Drawings & Samples… • Function of Shop Drawings • Link between design & construction • Show details of fabrication, assembly & installation • Allow introduction of commercially tested products • Show method of accomplishing “special” requirements • Contracts usually require approval prior to ordering • Approval of Shop Drawings • Contract SPs usually specify list of shop drawings • Builder must submit schedule of submissions • Owner must “approve” submittals for conformance to specs • Builder responsible for accuracy, means & methods, quality • Misuse of Shop Drawings • Submissions may not change contract requirements or design intent • Builder’s responsibility to conform, even if missed by AE/Owner review

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