Construction Quality Assurance

1. Construction Quality Assurance

2. Objectives • Amerisure Results - Why We Are Here • Common causes of construction defect claims. • Two types of quality related claims impacting Amerisure. • How contractors can impact their overall results. • The basic components of a contractor quality assurance program. • Quality Built and Role of 3rd Party Vendors

3. Construction Defect Causes • Leading Causes: • Water Intrusion (80%-85%) • Windows, Roof, Water Lines, Balconies, EIFS • Foundations (10%) • Settling, Cracking, Improper Materials, Re-enforcement • Structural (5%) • Framing, Trusses, Walls, Decks

4. Why is Construction Quality Important? • Construction Defect Claims are caused by or resulting from the work or contract performance of an insured. • Any claim presented to an insurer by a third party owner, builder, association, developer or entity with a property interest seeking reimbursement of damages resulting from the insured’s or insured’s subcontractors’ work or materials inclusive of claims in which coverage issues exist.

5. Why is Construction Quality Important? • Construction Liability Claims • Liability arising out of my construction and/or operations that cause damages to other peoples property, not the project.

6. Impact Factors • Construction Defect and Liability are usually treated differently under a CGL policy. • Coverage for construction defects are significantly impacted by what items?

7. Bottom Line • If something goes wrong with a project that causes damage to the finished project and/or others property someone (contractor, insurer or owner) is going to defend and/or pay to repair/replace/fix.

8. Construction Quality • Quality Assurance vs. Quality Control. • Are there differences?

9. Construction Quality • Quality Assurance Program (QAP) • Is a proactive program implemented to prevent construction defects by focusing on each stage of the construction process. • Addresses each stage from the architectual design through each building construction phase until completion.

10. Construction Quality • Quality Control Programs • Is a component of a Quality Assurance Program. • Involves the inspection and on the job supervision to identify defects and correct them before the project is completed. • Only starts once the construction process begins.

11. Construction Defect and Liability • What are the benefits of an effective quality assurance process:

12. Construction Defect and Liability • How can a contractor impact these losses? • Develop and implement an appropriate and effective Quality Assurance Program!

13. Basic Quality Assurance Program • Basic Written Procedures • Key Components of the Program • Commitment Statement • Defined responsibilities and accountabilities • Subcontractor qualification and selection • Key employee selection • Risk transfer procedures • Material purchasing and monitoring • Construction sequence (critical/dependent paths) • Change order procedures • Key phase and building inspections • Documented corrective actions • Project Documentation • Program review and monitoring

14. Basic Quality Assurance Program • Sample Management Quality Statement At ABC, we take pride in our "quality workmanship" and our "outstanding results" which set us apart from other general contractors.  We operate daily knowing the difference between ordinary and excellent.  Our experienced team of construction professionals have provided our clients with design-build, construction management and consulting, value engineering, interior design, landscape design, site development and site management.  We pride ourselves in providing only the finest, most cost effective materials available and installing these using our well-seasoned field professionals.  Across the southwestern USA, you can find ABC "quality workmanship" displayed in residential and commercial new construction, residential and commercial renovations, and historical renovations.

15. Basic Quality Assurance Program • Sample Management Commitment Statement To perform for our customers the highest level of quality construction services at fair and market competitive prices. To ensure the longevity of our company through repeat and referral business achieved by customer satisfaction in all areas including timeliness, attention to detail and service-minded attitudes. To maintain the highest levels of professionalism, integrity, honesty and fairness in our relationships with our suppliers, subcontractors, professional associates and customers. BCD is committed to producing high-quality products that exceed the standards within the industry. It is this commitment that drives our passion, our progress, and our success. And, it is the people of BCD who exhibit pride in performance every day that translates into real-world quality for our customers.BCD produces a wide range of products and systems through our family of companies. We test products extensively to guarantee compliance as required by project specifications. As an organization, we will continue to test, assess and improve to ensure our customers receive top-quality and best-performance construction products.

16. Basic Quality Assurance Program • Subcontractor Selection • A documented procedure should be developed and implemented for selecting new subcontractors. • What would you check when selecting new subcontractors?

17. Basic Quality Assurance Program • Key Employee Selection • Applications/Interviews • Substance Abuse Testing • References • Qualification/Education Verification • Experience Verification • Professional Knowledge of Individual • Past Job Completions

18. Basic Quality Assurance Program • Risk Transfer Procedures • Signed subcontracts developed by a construction specialty attorney • Procedures for obtaining, documenting and maintaining insurance information and endorsements (subs and subs of subs)

19. Basic Quality Assurance Program • Signed Change Orders • Develop, maintain and document any construction changes to original plans that may be initiated by customer, their representative, architect and/or other involved parties. • Develop, maintain and document sign off on all change orders to assure all have been informed and evaluated the proposed changes.

20. Basic Quality Assurance Program • Internal Responsibilities and Accountabilities • Specific to an individual organization and their needs, defined responsibilities and accountabilities should be put in place for the following key positions: • Estimator • Project Manager • Superintendents • Foreman

21. Basic Quality Assurance Program • External Accountabilities and Responsibilities • Specific to an individual organization and their needs, defined responsibilities and accountabilities should be put in place for the following: • Subcontractors • 3rd Party Testing Organizations

22. Basic Quality Assurance Program • Material Purchasing/Monitoring • Identify and document mandatory materials, or acceptable alternatives, to be used in the original blueprints, change orders, sub contracts and/or other appropriate documents.

23. Basic Quality Assurance Program • Proper Sequence of Construction Followed • Identify, monitor and document critical/dependent sequential construction processes to avoid improper installation, damage to completed installations and/or future failures.

24. Basic Quality Assurance Program • Key Phase and Building Inspections • Identify, inspect and document overall project phases, individual phases and critical installations to assure processes are followed and proper installations are completed. • Inspection forms should be developed by individual contractors depending on the complexity of the contractor and jobs completed.

25. Quality Control Inspection Phases • Foundation Inspections • Walls and Decks • Framing Inspections • Dry In and Roofing Inspections • Pre-Drywall Inspections • Building Exterior Inspections • Building Interior Inspections

26. Quality Control Inspections Phases • Pre Foundation • Rough grade • Underground utilities • Slab forming • Soil compaction • Pest control • Reinforcement steel or post tension cables • Drainage

27. Quality Control Inspection Phases • Walls and Decks • Block w/rebar • Tilt Wall • Pre-Cast • Upper Floor Decks • Rebar/post tension

28. Quality Control Inspection Phases • Framing Inspection • Proper materials meeting applicable codes • Layout • Bottom plates properly anchored • Stud spacing • Trusses • Windows, doors, headers • Stairs • Fireplaces

29. Quality Control Inspection Phases • Dry-In and Roofing Inspections • Exterior sheathing • Roof decking, roofing materials • Roof vents

30. Quality Control Inspection Phases • Pre-Drywall Inspection • Plumbing • Electrical • HVAC • Automatic Sprinkler • Wet Areas – Showers, tubs, toilet, sinks, hot water heaters

31. Quality Control Inspection Phases • Building Exterior Inspection • Weatherproofing • Exterior veneer type and procedures • Balcony sloping and decorative attachments • Gutters and locations • Finish grade and landscaping

32. Quality Control Inspection Phases • Interior Finish Inspections • Signs of moisture • Visual appearance • Flooring • Doors

33. Questions