Construction Management Unit 2 Responsibility and Authority Lines of Authority ? Must be designated, ? Those in authority must make decisions. Lines of Authority ? Must be designated, ? Those in authority must make decisions. Authorized Line Of Field Communications ? Subcontractor to ? General Contractor to ? Construction Manager to ? Arch/Eng Project Manager to ? Design Team to ? Arch/Eng Project Manager to ? Construction manager to ? General Contractor to ? Subcontractor ? Line of command should always be followed ? Documents logged at each stage. Authorized Line Of Field Communications ? Subcontractor to ? General Contractor to ? Construction Manager to ? Arch/Eng Project Manager to ? Design Team to ? Arch/Eng Project Manager to ? Construction manager to ? General Contractor to ? Subcontractor ? Line of command should always be followed ? Documents logged at each stage. Agent ? Owner ? Architect/engineer ? Project manager ? Inspector Actual Authority ? Contractual authority ? Stated in contract Apparent Authority ? Because of ones position ? If allowed by architect, architect can be liable for persons mistakes Agent ? Owner ? Architect/engineer ? Project manager ? Inspector Actual Authority ? Contractual authority ? Stated in contract Apparent Authority ? Because of ones position ? If allowed by architect, architect can be liable for persons mistakes Delegate Authority ? Establish lines of authority as quickly as possible Limit Authority ? State in writing Important ? Establish actual authority with a specific individual ? do not designate a position ? do not designate a job title ? do nor designate groups of individuals ? Disclaim any apparent authority immediately ? Have authority written into contract ? Do not give authority to designated representative to appoint other authorities ? When granting limited authority, clearly state in writing guidelines Delegate Authority ? Establish lines of authority as quickly as possible Limit Authority ? State in writing Important ? Establish actual authority with a specific individual ? do not designate a position ? do not designate a job title ? do nor designate groups of individuals ? Disclaim any apparent authority immediately ? Have authority written into contract ? Do not give authority to designated representative to appoint other authorities ? When granting limited authority, clearly state in writing guidelines Responsibilities Of Inspector ? Become thoroughly familiar with plans and specifications. ? If any part of the work does not conform to specifications and plans, contractor should be notified - if contractor fails to act, owner should be notified. ? The inspector is a member of the construction team and must endeavor to co-operate and work with all parties. ? The inspector must avoid any inspection, testing or other activity, that might be construed as the responsibility of the contractor - by doing so might imply liability. ? Work that will be hidden (foundations) must be inspected continuously, failure to do so could leave void in report. Responsibilities Of Inspector ? Become thoroughly familiar with plans and specifications. ? If any part of the work does not conform to specifications and plans, contractor should be notified - if contractor fails to act, owner should be notified. ? The inspector is a member of the construction team and must endeavor to co-operate and work with all parties. ? The inspector must avoid any inspection, testing or other activity, that might be construed as the responsibility of the contractor - by doing so might imply liability. ? Work that will be hidden (foundations) must be inspected continuously, failure to do so could leave void in report. ? An inspector must be alert and observant, any situation that threatens to cause delays in construction, should be reported to arch/eng at once. ? An inspector must be alert and observant, any situation that threatens to cause delays in construction, should be reported to arch/eng at once. Inspection (Construction Management) ? Arch/eng usually do not provide, continuous on site quality control ? Design firm does not guarantee the work of the contractor ? Inspection after completion, does not insure quality control ? Inspection should be performed during the progress of the work Inspection (Construction Management) ? Arch/eng usually do not provide, continuous on site quality control ? Design firm does not guarantee the work of the contractor ? Inspection after completion, does not insure quality control ? Inspection should be performed during the progress of the work Inspectors Authority The inspector should: ? have the authority to approve materials and workmanship ? give these approvals promptly, where necessary ? establish detailed inspection procedures ? outline acceptance/rejection procedures ? prepare a chart outlining testing procedures in detail The inspector should not: ? issue stop orders ? approve deviations from the contract ? require more than plans and specifications specify, from contractor ? issue direction or advise contractor ? under any conditions direct contractors work ? instruction given only to contraction superintendent ? give permission to owner to occupy part of building ? participate in testing Inspectors Authority The inspector should: ? have the authority to approve materials and workmanship ? give these approvals promptly, where necessary ? establish detailed inspection procedures ? outline acceptance/rejection procedures ? prepare a chart outlining testing procedures in detail The inspector should not: ? issue stop orders ? approve deviations from the contract ? require more than plans and specifications specify, from contractor ? issue direction or advise contractor ? under any conditions direct contractors work ? instruction given only to contraction superintendent ? give permission to owner to occupy part of building ? participate in testing ? Inspector must keep a daily log of work by contractor, inspection results, instruction given and agreements made. ? Test work must be timely, completed and recorded accurately, and results forwarded to contractor immediately. ? Too literal interpretation of specifications and drawings can lead to disaster, therefore consultation with architect/ engineer may be necessary at various stages of construction. ? Try and anticipate problems in advance and notify contractor or foreman. ? Unacceptable work should be identified at early stages and contractor notifies. Inspector must recognize his/her limits and get help, when require ? Inspector must keep a daily log of work by contractor, inspection results, instruction given and agreements made. ? Test work must be timely, completed and recorded accurately, and results forwarded to contractor immediately. ? Too literal interpretation of specifications and drawings can lead to disaster, therefore consultation with architect/ engineer may be necessary at various stages of construction. ? Try and anticipate problems in advance and notify contractor or foreman. ? Unacceptable work should be identified at early stages and contractor notifies. Inspector must recognize his/her limits and get help, when require Authority Given To Representative ? Review progress schedules ? Attend meetings with contractor ? Serve as liaison between contractor and owner ? Record shop drawings and samples ? Conduct on-site observation of work in progress ? Report to arch/eng if any work unsatisfactory, faulty or defective ? Observe testing and report ? Accompany other inspectors during their inspections ? Maintain orderly files ? Keep a log book ? Review payment requests Authority Given To Representative ? Review progress schedules ? Attend meetings with contractor ? Serve as liaison between contractor and owner ? Record shop drawings and samples ? Conduct on-site observation of work in progress ? Report to arch/eng if any work unsatisfactory, faulty or defective ? Observe testing and report ? Accompany other inspectors during their inspections ? Maintain orderly files ? Keep a log book ? Review payment requests Resident Inspection Field Office ? Specified in the project specification ? Responsibility of the contractor to provide ? Security and privacy. Field Office Files ? Correspondents ? Job Drawings ? Shop Drawings Submittals ? Requisitions ? Reports ? Samples ? Testing ? Change Orders Resident Inspection Field Office ? Specified in the project specification ? Responsibility of the contractor to provide ? Security and privacy. Field Office Files ? Correspondents ? Job Drawings ? Shop Drawings Submittals ? Requisitions ? Reports ? Samples ? Testing ? Change Orders Daily Construction Report ? Project name and job number ? Clients name ? Design project manager ? Report number and date of report ? Day of week ? Weather ? Average Work Force ? name of subcontractors on job that day ? number of manual laborers ? number of tradesmen ? number and description of supervisors ? Visitors on site ? Major construction equipment in use (if not why) ? Log: ? work commenced ? status of all work in progress ? description of work and who performed it ? Sign report Daily Construction Report ? Project name and job number ? Clients name ? Design project manager ? Report number and date of report ? Day of week ? Weather ? Average Work Force ? name of subcontractors on job that day ? number of manual laborers ? number of tradesmen ? number and description of supervisors ? Visitors on site ? Major construction equipment in use (if not why) ? Log: ? work commenced ? status of all work in progress ? description of work and who performed it ? Sign report Monthly Reports ? Summary of daily report ? Special attention to actual progress vs anticipated progress. Monthly Reports ? Summary of daily report ? Special attention to actual progress vs anticipated progress. Construction Diary ? Legal document ? Usually remains the property of arch/eng ? Use only hard cover stitched field books ? Pages should be consecutively numbered ? No erasures should be made ? No pages should ever be torn out of the book ? Ever day should be recorded, no work days should be noted as No Work Day, along with weather ? All entries must be entered on the date they occur ? All entries must be entered directly into book (scrap pieces o paper can lead to legal complications) ? Record telephone calls ? Record any work, that is abnormal or does not coincide with drawings ? Note any apparent lack of activity on behalf of contractor ? Record time and place of any field orders given and who received them ? Record any important conversations ? Record any field errors and their probable effect Construction Diary ? Legal document ? Usually remains the property of arch/eng ? Use only hard cover stitched field books ? Pages should be consecutively numbered ? No erasures should be made ? No pages should ever be torn out of the book ? Ever day should be recorded, no work days should be noted as No Work Day, along with weather ? All entries must be entered on the date they occur ? All entries must be entered directly into book (scrap pieces o paper can lead to legal complications) ? Record telephone calls ? Record any work, that is abnormal or does not coincide with drawings ? Note any apparent lack of activity on behalf of contractor ? Record time and place of any field orders given and who received them ? Record any important conversations ? Record any field errors and their probable effect Field Correction Report ? Used, when there is any departure from the plans and specifications ? State the Problem and solution ? General in nature ? Not a change order ? Not an authorization to do work ? Forward copy to design team Field Correction Report ? Used, when there is any departure from the plans and specifications ? State the Problem and solution ? General in nature ? Not a change order ? Not an authorization to do work ? Forward copy to design team Standard Construction Forms Proposal Form ? from contractor to owner ? to complete certain work ? contractor supplies labour and material ? paid per completion of work ? work to be consistent with: ? standard industry practice ? local building code Short Form Proposal ? used for smaller projects ? above placed in short form Specification Sheet ? Written Instructions to contractor on what is required and what will be accepted. Standard Construction Forms Proposal Form ? from contractor to owner ? to complete certain work ? contractor supplies labour and material ? paid per completion of work ? work to be consistent with: ? standard industry practice ? local building code Short Form Proposal ? used for smaller projects ? above placed in short form Specification Sheet ? Written Instructions to contractor on what is required and what will be accepted. Bidding Requirements ? invitation and instructions To Bidder ? date of closing ? description of what is being bid on ? sub-contractors work included ? allowances must be allowed for ? examine drawing carefully ? read project manual/specifications ? visit site ? determine availability of utilities ? observe present condition of site ? provide certificate of insurance for: ? workman compensation ? property damage ? automotive ? provide the following bonds: ? labour ? material ? performance ? use included form ? do not alter form ? delivery of bids Bidding Requirements ? invitation and instructions To Bidder ? date of closing ? description of what is being bid on ? sub-contractors work included ? allowances must be allowed for ? examine drawing carefully ? read project manual/specifications ? visit site ? determine availability of utilities ? observe present condition of site ? provide certificate of insurance for: ? workman compensation ? property damage ? automotive ? provide the following bonds: ? labour ? material ? performance ? use included form ? do not alter form ? delivery of bids Bid Bonds ? Binds: ? principal ? heirs ? executors ? administrators ? successors ? If owner accepts bid: ? principal (contractor) will enter into contract ? provide remaining bonds ? If principal fails to enter into contract, contractor will pay difference between lowest bid and next bid. Bid Bonds ? Binds: ? principal ? heirs ? executors ? administrators ? successors ? If owner accepts bid: ? principal (contractor) will enter into contract ? provide remaining bonds ? If principal fails to enter into contract, contractor will pay difference between lowest bid and next bid. Performance Bonds ? If contractor defaults, bonding company shall promptly: ? remedy the default ? complete the contract ? Obtain bids to complete the contract if required by: ? using lowest responsible bidder ? arranging contract between owner and bidder ? Any suit must be within two years Performance Bonds ? If contractor defaults, bonding company shall promptly: ? remedy the default ? complete the contract ? Obtain bids to complete the contract if required by: ? using lowest responsible bidder ? arranging contract between owner and bidder ? Any suit must be within two years Labour and Materials Bond ? Remain in full effect until claimants are paid in full ? Claimant is: ? anyone on direct contact with contractor ? subcontractor ? suppliers ? laborers ? anything directly related to the performance of work of the contract ? Any claimant, that has not been paid within 90 days of due date, may sue on this bond for work, labour or material ? Owner shall not be liable for any cost due to these suits Labour and Materials Bond ? Remain in full effect until claimants are paid in full ? Claimant is: ? anyone on direct contact with contractor ? subcontractor ? suppliers ? laborers ? anything directly related to the performance of work of the contract ? Any claimant, that has not been paid within 90 days of due date, may sue on this bond for work, labour or material ? Owner shall not be liable for any cost due to these suits Bid Forms ? Bidder must: ? visited site ? examined condition affecting work ? furnish all: ? labour ? materials ? equipment ? Enter into bid within five days ? Furnish certificates for all insurance at this time ? Furnish labour that can work in harmony with all other contractors on site ? Contract price is good for thirty days Bid Forms ? Bidder must: ? visited site ? examined condition affecting work ? furnish all: ? labour ? materials ? equipment ? Enter into bid within five days ? Furnish certificates for all insurance at this time ? Furnish labour that can work in harmony with all other contractors on site ? Contract price is good for thirty days Construction Agreement - Specified Contract Price ? agreement between owner and contractor ? general project description ? description of work ? last date of commencing work ? last date for finishing work ? dates subject to adjustment per general agreement ? contract sum ? price is subject to additions and deductions as per general agreement ? list of progress payments ? 10% withheld ? final payment, when work completed to owners satisfaction ? contract documentation listed: ? Construction Agreement ? General Conditions ? Specifications ? Drawings ? Other documents ? any other provision can be listed at end Construction Agreement - Specified Contract Price ? agreement between owner and contractor ? general project description ? description of work ? last date of commencing work ? last date for finishing work ? dates subject to adjustment per general agreement ? contract sum ? price is subject to additions and deductions as per general agreement ? list of progress payments ? 10% withheld ? final payment, when work completed to owners satisfaction ? contract documentation listed: ? Construction Agreement ? General Conditions ? Specifications ? Drawings ? Other documents ? any other provision can be listed at end Construction Agreement - Cost plus ? agreement between owner and contractor ? general project description ? description of work ? contractor will: ? use his best skills, efforts and judgment to further the owner interest ? utilize efficient business administration and supervision ? furnish adequate number of skilled workers and materials ? perform work in the most economical manner consistent with quality and standards specified by owner ? last date of commencing work ? last date for finishing work ? dates subject to adjustment per general agreement ? contract sum ? price is subject to additions and deductions as per general agreement ? list of progress payments ? 10% to be withheld ? final payment, when work completed to owners satisfaction ? total costs can not exceed listed amount ? costs shall include: ? wages of workers ? cost of material Construction Agreement - Cost plus ? agreement between owner and contractor ? general project description ? description of work ? contractor will: ? use his best skills, efforts and judgment to further the owner interest ? utilize efficient business administration and supervision ? furnish adequate number of skilled workers and materials ? perform work in the most economical manner consistent with quality and standards specified by owner ? last date of commencing work ? last date for finishing work ? dates subject to adjustment per general agreement ? contract sum ? price is subject to additions and deductions as per general agreement ? list of progress payments ? 10% to be withheld ? final payment, when work completed to owners satisfaction ? total costs can not exceed listed amount ? costs shall include: ? wages of workers ? cost of material Subcontractor Agreement ? same as general contract ? agreement between general contractor and subcontractor ? general project description ? description of work ? last date of commencing work ? last date for finishing work ? dates subject to adjustment per general agreement ? contract sum ? price is subject to additions and deductions as per general agreement ? list of progress payments ? 10% withheld ? final payment, when work completed to owners satisfaction ? contract documentation listed: ? Construction Agreement ? General Conditions ? Specifications ? Drawings ? Other documents ? any other provision can be listed at end Subcontractor Agreement ? same as general contract ? agreement between general contractor and subcontractor ? general project description ? description of work ? last date of commencing work ? last date for finishing work ? dates subject to adjustment per general agreement ? contract sum ? price is subject to additions and deductions as per general agreement ? list of progress payments ? 10% withheld ? final payment, when work completed to owners satisfaction ? contract documentation listed: ? Construction Agreement ? General Conditions ? Specifications ? Drawings ? Other documents ? any other provision can be listed at end General conditions Of The construction Agreement 1. General ? 1.1 - work of contractor shall consist of: ? materials ? labour ? equipment ? services ? 1.2 - all work shall comply with local by-laws and codes ? 1.2 - all permits to be obtained before commencement of construction ? 1.3 - material and workmanship shall be to the highest standards and to satisfaction of owner ? 1.4 - substitution must be approved by owner General conditions Of The construction Agreement 1. General ? 1.1 - work of contractor shall consist of: ? materials ? labour ? equipment ? services ? 1.2 - all work shall comply with local by-laws and codes ? 1.2 - all permits to be obtained before commencement of construction ? 1.3 - material and workmanship shall be to the highest standards and to satisfaction of owner ? 1.4 - substitution must be approved by owner 2. Owner: ? 2.1- provide survey of site ? 2.2- will pay for necessary approvals etc. ? 2.3- can stop work, if contractor fails to meet contract documents ? 2.4- reserves the right to occupy parts of the building 2. Owner: ? 2.1- provide survey of site ? 2.2- will pay for necessary approvals etc. ? 2.3- can stop work, if contractor fails to meet contract documents ? 2.4- reserves the right to occupy parts of the building 3. Contractor ? 3.1- shall be responsible for work in contract and shall have control over construction methods ? 3.2- pay for labour, materials, equipment and services ? 3.3- contractors and subcontractors must be bondable ? 3.4- work will be according documents and free of defects ? 3.5- protect existing areas from damage ? 3.6- keep project clean ? 3.7- will be held responsible for mistakes of subcontractors ? 3.8- shall be responsible or any claims or legal fees incurred during the performance contract ? 3.9- provide owner access to work 3. Contractor ? 3.1- shall be responsible for work in contract and shall have control over construction methods ? 3.2- pay for labour, materials, equipment and services ? 3.3- contractors and subcontractors must be bondable ? 3.4- work will be according documents and free of defects ? 3.5- protect existing areas from damage ? 3.6- keep project clean ? 3.7- will be held responsible for mistakes of subcontractors ? 3.8- shall be responsible or any claims or legal fees incurred during the performance contract ? 3.9- provide owner access to work 4. Subcontractors ? contractor will select subcontractors 5. Disputes ? shall be resolved by arbitration 6. Work By Owner or Other Contractors ? 6.1- Owner is allowed to perform work outside the contract ? 6.2- Contractor must work with owner and other outside sub-contractors 7. Changes ? 7.1- owner may order changes, as long as the length of the contract is extended ? 7.2- changes will only be made by written order 8. Time ? If any interruption occurs, outside of control of contract, the contract time must be extended per length of time of delay. 4. Subcontractors ? contractor will select subcontractors 5. Disputes ? shall be resolved by arbitration 6. Work By Owner or Other Contractors ? 6.1- Owner is allowed to perform work outside the contract ? 6.2- Contractor must work with owner and other outside sub-contractors 7. Changes ? 7.1- owner may order changes, as long as the length of the contract is extended ? 7.2- changes will only be made by written order 8. Time ? If any interruption occurs, outside of control of contract, the contract time must be extended per length of time of delay. 9. Payments ? 9.1- payments are to be made by owner to contractor ? 9.2- payments are to be made according to payment schedule ? 9.2- 10% to be withheld by owner, up to 30 days upon acceptable completion of work ? 9.3- reasons for withholding payments: ? defective work ? contractor does not pay subcontractor, suppliers or laborers ? continued failure to perform work in accordance with contract ? legal or third party claims ? 9.4 - final payment is due when: ? work is completed with construction documents ? release of all legal leans - etc. ? operating manuals and warranties are presented to owner 9. Payments ? 9.1- payments are to be made by owner to contractor ? 9.2- payments are to be made according to payment schedule ? 9.2- 10% to be withheld by owner, up to 30 days upon acceptable completion of work ? 9.3- reasons for withholding payments: ? defective work ? contractor does not pay subcontractor, suppliers or laborers ? continued failure to perform work in accordance with contract ? legal or third party claims ? 9.4 - final payment is due when: ? work is completed with construction documents ? release of all legal leans - etc. ? operating manuals and warranties are presented to owner 10. Insurance ? Contractor shall meet all insurance requirements listed. 11. Work Safety ? Contractor is responsible for meeting all safety standards. 12. Correction of Deficiencies ? contractor shall promptly correct any deficiencies ? provide guarantee for one year 13. Termination Of Agreement ? if owner fails to pay contractor ? if contractor fails to carry outwork in accordance with contract 14. Jurisdiction ? As per location of project 10. Insurance ? Contractor shall meet all insurance requirements listed. 11. Work Safety ? Contractor is responsible for meeting all safety standards. 12. Correction of Deficiencies ? contractor shall promptly correct any deficiencies ? provide guarantee for one year 13. Termination Of Agreement ? if owner fails to pay contractor ? if contractor fails to carry outwork in accordance with contract 14. Jurisdiction ? As per location of project General Conditions ( Short Form ) ? Same as above only in short form General Conditions ( Short Form ) ? Same as above only in short form Forms Schedules ? Place pertinent information, in an easy to read chart form ? door ? window ? plumbing ? lighting ? appliance ? interior finishes Change Orders ? become part of existing contract ? signed by owner and contractor ? changes and additional work described ? price of revisions, previous contract price and revised contract price is stated ? payment schedule is stated Forms Schedules ? Place pertinent information, in an easy to read chart form ? door ? window ? plumbing ? lighting ? appliance ? interior finishes Change Orders ? become part of existing contract ? signed by owner and contractor ? changes and additional work described ? price of revisions, previous contract price and revised contract price is stated ? payment schedule is stated Subcontractors Change Orders ? become part of existing contract ? signed by subcontractor and contractor ? changes and additional work described ? price of revisions, previous contract price and revised contract price is stated ? payment schedule is stated Contractors Affidavit Of Release of Liens ? Liens can not placed against building by contractor, subcontractor or suppliers. Waiver Of Lien ? By-out of lien against building. Certificate Of Substantial Completion ? Statement that work has been inspected and found complete, any deficiencies are listed. Subcontractors Change Orders ? become part of existing contract ? signed by subcontractor and contractor ? changes and additional work described ? price of revisions, previous contract price and revised contract price is stated ? payment schedule is stated Contractors Affidavit Of Release of Liens ? Liens can not placed against building by contractor, subcontractor or suppliers. Waiver Of Lien ? By-out of lien against building. Certificate Of Substantial Completion ? Statement that work has been inspected and found complete, any deficiencies are listed. Punch List Record ? Deficiencies noted, date noticed and date corrected. Tickler File Record ? A file used to keep track of important items to be completed and the dates they are completed. Punch List Record ? Deficiencies noted, date noticed and date corrected. Tickler File Record ? A file used to keep track of important items to be completed and the dates they are completed.