CHOP 6.6 - CONSTRUCTION CONTRACT ADMINISTRATION AND FIELD REVIEW

Question 1

Certificate

Answer 1

A document attesting to the truth of a fact; in construction, a certificate is prepared by a professional, either an architect or an engineer.

Question 2

Certificate of substantial performance

Answer 2

A certificate issued under the appropriate lien legislation attesting that the contract between the owner and the contractor is substantially complete.

Question 3

Contract Administration

Answer 3

The services provided by an architect during the construction phase of a project.

Question 4

General Review

Answer 4

General review is synonymous with field review. It is review conducted by the architect and consultants during visits to the place of the work and, where applicable, to locations where building components are fabricated for use at the place of the work, at intervals appropriate to the stage of the construction.

Question 5

Holdback

Answer 5

A percentage of the monetary amount payable under a (construction) contract, which is held as security for a certain period of time. The percentage and period of time are based on the provincial lien legislation.

Question 6

Instruments of Services

Answer 6

Instruments of service are representations, in any medium of expression, of the tangible and intangible creative work that forms part of the services or additional services.

Question 7

Lien

Answer 7

A legal claim on real property to satisfy a debt owed to the lien claimant by the property owner. This claim can carry the right to sell the property upon default.

Question 8

Shop Drawing

Answer 8

A drawing, diagram, schedule or data prepared on behalf of the contractor to indicate precise details of the construction materials, products or installation. Usually prepared by the “shop” or the trade, or the manufacturer, supplier or fabricator responsible for the particular product.

Question 9

Construction Contract Administration

Answer 9

An architect provides the services known as “contract administration.” Many jurisdictions and provincial and territorial associations now require professional involvement in the construction phase of most building types.

At the start of construction, in a traditional design-bid-build contract, a new participant – the contractor – is introduced to the project and takes on the responsibility and control of the construction.

With other forms of project delivery, the architect’s relationship with the contractor may vary.

The office functions and field functions of contract administration are done concurrently and in a coordinating fashion.

The term “office functions” is used to describe those activities commonly associated with review of documents and samples submitted…

The terms used to describe the field functions of contract administration and activities conducted on site or out of the office are, field review, site review…

The terms “supervision” and “inspection” refer to completely different levels of service not normally provided by an architect. Supervision implies the overseeing of the construction work, Inspection means a “close examination” (of construction).

Question 10

Purpose of Contract Administration

Answer 10

Contract administration describes the services provided by the architect or contract administrator to fulfill the roles in standard construction contracts such as those duties outlined in General Condition GC 2.2 of CCDC 2.

The nature of the project, the type of construction contract, and the method of contract award and project delivery, as well as the architect’s agreed-to services and fees, all have a direct bearing on the level and scope of the monitoring that will be required.

For every specific project, the executed client-architect agreement and the construction contract, as well as their supplementary conditions, need to be reviewed by the contract administrator as there may be ambiguous, contradictory or conflicting provisions between these two basic agreements. Conflicts between the two agreements or between agreements and client-generated supplemental conditions should be resolved prior to the execution of either contract.

Question 11

Purpose for General Review

Answer 11

The architect’s activities on the construction site include four main functions:

1) Review the contractors performance.
2) Provide guidance to the contractor by interpreting the contract documents.
3) Fulfill performance standards for general review.
4) Analyze and adjust the contractor’s application for payment and certification of payment.

General reviews are essential to the project’s success. To achieve these four functions, the architect must perform these reviews personally or assign a qualified experienced staff member who is properly trained to perform site reviews.

Question 12

The Role of the Architect

Answer 12

The nature and scope of the architect’s services during the construction contract administration phase are outlined in the client-architect agreement.

Question 13

Office Functions

Answer 13

The architect’s specific office functions include:

1) Representing and providing advice to the client.
2) Review of the construction schedule and contractor’s schedule.
3) Preparing all documentation for the contractor and the client.
4) Coordinating the services of consultants.
6) Evaluating the contractor’s proposed substitutions.
7) Reviewing shop drawings.
8) Reviewing operating nd maintenance manuals.
9) Rendering interpretations.
10) Following up with warranty items.

Question 14

Field Functions

Answer 14

The architect’s role in a project changes from designer to contract administrator once the construction of a project is underway.

The architect is both a representative of the client and an interpreter of the contract documents.

In most agreements, the architect is not required to make exhaustive inspections or continuous on-site review.

Nor is the architect responsible for the construction methods or procedures, or for construction safety. Visiting a construction site carries with it inherent risks, and the architect must take responsibility for ensuring that employees are trained and prepared to conduct reviews on a construction site.

Question 15

Normally, the architect is present on site to:

Answer 15

1) conduct a general or field review
2) Attend site meetings
3) Interpret contract documents or resolve problems.
4) Observe testing
5) Review and accept samples
6) Meet with consultants, contractors or the client
7) Determine the percentage of the work completed

Question 16

The Role of Others in Contract Administration

Answer 16

The Client:

The client, or owner, is the entity that has entered into a contract with the contractor. The client’s basic responsibilities during the construction project are:

1) Providing financing information
2) Making payments to the contractor.
3) Authorizing changes.
4) Providing prompt decisions and directions.

Architects will need to adapt their communication style to the various types of clients.

Question 17

Consultants

Answer 17

Consultants will include those engaged by the managing or prime consultant, typically the architect. They may also be engaged directly by the client through separate contracts.

The field functions of consultants are also critical to the success of a project. Typically, the architect is responsible for notifying and coordinating consultants as well as ensuring their attendance on site at the appropriate times, such as for specialized meetings, progress claim reviews, tests, etc.

consultants assist the architect in preparing certificates for payment by attesting to the value of their portion of the work that has been completed. Consultants may also be involved in answering requests for information (RFIs), and reviewing mock-ups and other inspection and testing procedures.

Question 18

The Contractor

Answer 18

The contractor is responsible for the execution of all the work, means and methods required to carry out the construction work as described in the contract documents.

the contractor is responsible for maintaining an acceptable quality of every element of the construction, and the construction means, methods, and procedures.

The contractor is responsible for site safety and for supervising the workers and coordinating subcontractors. Depending upon a project’s construction value, most contractors will assign one or more individuals to manage the project.

The contractors main project manager is tasked with creating and managing the schedule; managing RFIs, submittals, supplemental instructions and changes to the work; preparing the schedule of values and monthly progress invoice.

The project coordinator will execute many contractor’s office functions, managing RFI’s, submittals, mock-ups, meeting minutes…

The site superintendent manage activities on site.

Question 19

Safety on the Construction Site

Answer 19

Although not responsible for construction safety, the architect should review all applicable provincial and territorial occupational health and safety legislation and regulations to determine the architect’s responsibilities in the workplace.

If an unsafe or life-threatening situation is observed, the architect is obliged to report this immediately to the contractor and the owner, and to record the verbal site discussions.

Question 20

Construction Contract Administration Processes and Documentation

Answer 20

Office and field functions for the contract administration phase of a building project include work undertaken at the following stages:

1) Prior to construction
2) During Construction
3) At close-out
4) during the warranty period

Documentation:

Many of the functions of construction contract administration result in documentation. The architect must develop and manage accurate and thorough documentation during the construction phase of the project. This documentation assists in providing:

1) A record of communication with all parties.
2) A project history.
3) Documentation in the event of a claim.

Checklist:

Supplementary conditions may be added to either/both the client-architect and client-contractor agreement. The architect should review both agreements before commencing contract administration activities.

Checklists for contract administration have been organized into the following stages:

1) Prior to construction:
- Getting started and review of agreements
- Pre-construction contract administration activities.

2) During construction

3) General communication requirements and procedures during contract administration:
- Requests for information
- Supplemental instructions
- Contract change management

4) Close-out services

5) During the warranty period

Question 21

Prior to construction

Answer 21

Getting Started – Review of Agreements:

Two significant milestones early in the construction project are the signing of the client-contractor agreement and the start of construction. The order of interrelated activities may vary, based on the specifics of the project and the policies and practices of the client, contractor and architect.

1) Review client-architect and construction contracts for clarity of issues. (Architect is responsible).

2) (Architect is responsible)

• Communications: Review and resolve any discrepancies.
• Requests for information “RFI”
• Submittals

3) Warranty (Architect is responsible).

Question 22

Pre-construction Contract Administration Activities

Answer 22

The following activities should be undertaken prior to mobilization and within time frames specified in the contract documents.

1) Attend pre-construction meeting. (Architect, consultants, general contractor and owner)

2) Assist in the preparation of the contract form (Architect)

3) Receive and forward bonds and insurance (General contractor to architect to owner)

4) Advise about property insurance policies ( Architect to client)

5) Advise (Architect to Owner)

6) Permits (Architect to general contractor to regulatory authority)

7) Health and Safety ( General contractor)

8) Construction schedule (General contractor to architect to consultants to owner)

9) Submittal schedule (General contractor to architect to consultants and owner)

10) (General contractor to architect to consultants and owner; returned with comments to general contractors)

• Schedule of values
• To review this schedule

11) Provide contract documents to contractor (Architect to contractor)

12) Service permits (Architect to consultants)

13) Obtain additional information from contractor (General contractor to architect)

14) Site organization and hoarding plan (General contractor to architect to consultant)

15) Designs for temporary supports “such as shoring and underpinning” (General contractor to architect to consultants)

16) Construction waste management plan (General contractor to architect)

Question 23

During Construction

Answer 23

The standard stipulated-sum construction contract require the architect to:

1) review shop drawings, samples, and product data submittals

2) Provide timely interpretation of the contract by responding to RFI’s.

3) Prepare and issue proposed change forms.

4) Review contractor’s quotations

5) Prepare and issue change directives, and change orders.

6) Review progress payment requests.

7) Prepare and distribute field review reports.

8) Prepare agenda for special site meetings

Question 24

General communication requirements and procedures during contract administration

Answer 24

Certain procedures need to be considered throughout the period of contract administration (CA).

1) Retain and organize project documentation in a project management information system, including: communications and construction contract change management communication (Architect to consultants).

Question 25

Minutes or records of meetings

Answer 25

The architect usually attends many meetings throughout the course of a project, and it is important that key decisions be recorded.

Minutes should be reviewed for accuracy and completeness, and minutes, together with any amendments, should be distributed to all parties.

Question 26

Requests for information (RFI’s)

Answer 26

A Request for information (RFI) is useful throughout the design and construction of a building project as a tool for the owner, architect, contractor or other party to request information from each other that cannot readily be obtained through research, document review, or other reasonable means. The RFI is a procedure for the contractor to request clarifications when the intent of the contract documents is:

1) unclear
2) incorrect
3) missing information

Each RFI should be tracked and resolved to completion and closure.

Some contractors abuse the RFI process by issuing an excessive number of unnecessary or “frivolous” RFIs. There are several possible reasons for this:

• Asking the architect is easier and searching.
• To attempt to transfer the responsibility to the architect.
• To imply non-existent errors or omissions.
• To set up circumstances to justify delay claims.
• To discredit the architect’s competence.

Whatever the reason for the request, the architect is obliged to respond to every RFI, however frivolous, unjustified, or unnecessary.

NOTE: if the contractor continues to issue unnecessary RFIs, the architect, after having identified a minimum of [insert number here (five)] RFIs as unnecessary, will invoice the client for the additional administrative cost of responding to each of the subsequent unnecessary RFIs.

Question 27

Suplemental Instructions (SI)

Answer 27

Supplemental instructions (SI), also referred to as site instructions, are issued in response to requests for information (RFIs) or to address issues raised on site or during a project meeting as clarifications or interpretations of contract documents. They provide direction to the contractor concerning a problem which may have surfaced during the course of construction.

Steps to take:

1) Determine that an SI is the appropriate instrument to respond to an RFI or interpretation of contract documents.

2) If appropriate, issue an SI using the common structure.

3) Log each SI.

4) Track the implementation of SI instructions

5) Track the status of SI’s

6) Close the SI

Question 28

Contract Changes Management

Answer 28

The change management process ensures that changes to the construction contract price and schedule are reviewed, analyzed and approved. The process includes the issuance of the instruments of service called:

1) Contemplated change notice (CCN)

2) Change orders (CO)

3) Change directives (CD)

Question 29

Proposed Change (PC)

Answer 29

The purpose of the PC form is to alert the contractor to the proposed change and to provide the contractor an opportunity to submit a quotation for additional cost (or credit) and/or a change in schedule (if any) for the proposed change.

When the need for a change occurs, the architect (and/or the appropriate consultant) prepares and issues to the contractor written and graphic documents, as necessary, to describe the proposed change or a notice of a change being contemplated.

If a supplemental instruction identifies work that is deemed to be a change in price and/or time, the architect should obtain a quotation for the changes from the contractor.

Question 30

Change Directives (CD’s)

Answer 30

If the contractor’s price cannot promptly be agreed to, the architect may issue on behalf of the owner a change directive if the proposed changes are within the general scope of work described in the contract documents. A change directive avoids delays and permits work to proceed while negotiations continue over the price of the proposed change.

The change directive form may be like the SI or PC form – not the CO, as there has been no determination about cost or time changes to the contract.

Question 31

Change Orders (CO)

Answer 31

COs cover adjustments to the scope of work that require changes to the contract price and/or contract time. They are prepared after acceptance of changes to contract time and/or value as proposed by the contractor, arising from the proposed change or change directive procedures.

The change order is the final form which indicates the agreement between the client/owner and the contractor on specific additions, deletions, or revisions to the contract documents.

Question 32

Summary of changes

Answer 32

When a proposed change is initiated, it should be entered immediately on a Summary of Changes Form or into the construction contract administration database used to track the status of all changes. This document is an important tool for the architect to manage a process which can become chaotic if it is not closely monitored.

Question 33

Numbering and Cross-Referencing Documents

Answer 33

It is common for architectural practices to employ database systems for monitoring and controlling construction contract administration.

There are two methods used by architects for assigning numbers and recording changes. If manually managing contract administration documents, the architect should use the selected method consistently:

1) The first method involves assigning consecutive numbers to each document in the change process as they are prepared, using a separate numbering sequence for each document type (separate numbering for supplemental instruction, proposed change, change directive, and change order) and entering the number on the Summary of Changes Form.
Approved change orders are consecutively numbered to avoid gaps when a proposed change does not proceed beyond pricing.

2) Many architects and large clients prefer to create a separate file and number for each document type in the change process and to keep the same number assigned to the change throughout the approval process.

Question 34

Inspection and Testing

Answer 34

Independent inspection provided by specialist inspection and testing firms is required on most construction projects.

Inspection and testing firms are frequently selected by methods typically used for selecting other professionals, that is, by soliciting proposals.

Establish with the contractor the requirements for testing and inspection of specific materials and work by inspection and testing companies.

Question 35

Submittal Review

Answer 35

Contract documents, and in particular specifications, identify many elements of construction and provide lists of pre-approved products and systems.

The submittal review is used to identify the actual combination of pre-approved systems, products and their characteristics that will be incorporated into the construction.

At the initial pre-construction meeting with the contractor, the architect usually establishes the standard procedures for submittal and review of shop drawings, samples and mock-ups. Before submitting submissions to the architect for review, the contractor is responsible for verifying:

1) Quantities
2) Dimensions
3) Accuracy
4) Completeness
5) Compliance with the specifications

Question 36

Shop Drawings

Answer 36

The submission requirements and the format for shop drawings should be contained in the specifications. Certain shop drawings must be reviewed by the consultants.

Note: Shop drawings do not supersede the contract documents but supplement them to assist in the construction.

The review of shop drawings carries certain liabilities for the architect. The architect must take care to review only those portions of the shop drawings which relate to the architectural design.

Question 37

Samples

Answer 37

Samples provide the architect with an opportunity to review and finalize selection of patterns and other specified colours, textures, etc.

Question 38

Hierarchy to submittal review

Answer 38

There is a recommended hierarchy to submittal review. If requested in the specifications, some items are reviewed first, then following in a specific order. This results in a more efficient review process. The recommended sequence for submittals is:

1) System performance
2) Product data
3) Shop drawings
4) Samples
5) Mock-ups

Question 39

Construction Site meetings

Answer 39

Contractors generally have many internal meetings associated with the progress of a construction project.

One of the architect’s responsibilities during construction is to participate in job-site meetings. The architect should be familiar with the progress of the job prior to any regularly scheduled job meeting.

Site meetings provide an excellent opportunity for the architect to establish an on-site presence. Minutes of the site meetings should always be recorded.

Question 40

General Review

Answer 40

There are many types of general review as noted below, including:

1) Periodic general review
2) On-site or Off-site
3) Milestone reviews
4) Mock-up review
5) Partial occupancy review
6) Substantial performance review
7) Completion review
8) Warranty review

General reviews typically occur in one of three locations:

1) The construction site

2) The “extended” site

• after approval that the products may be located away from the construction site.
• after the contractor has made provision for secure storage, insurance and bonding.
• after the architect has visited the extended site to observe the items there.

3) Plant or off-site locations

• examine the manufacturing facilities
• confirm progress of items in those locations
• check or confirm progress of items
• resolve problems noted by inspection and testing companies.
• resolve manufacturing problems concerning details which prove to be impractical.
• witness tests undertaken in the plant.
• review mock-ups.
• determine the source of problems occurring in the field which can be traced to plant manufacture or fabrication.

The architect should establish credibility on the job site from the start of the project. This is accomplished through a detailed knowledge and understanding of the project and the contract documents.

The architect should not leave the site without speaking with the site superintendent or the contractor. Observations should be reported to the contractor’s superintendent at the conclusion of the visit to indicate to the superintendent any problems which have been noted.

Question 41

Frequency and Timing of Site Visits

Answer 41

The architect should schedule site visits at intervals appropriate to the construction. The frequency and timing is left to the judgement of the architect. Visits should be conducted at different times of the day and on different days of the week. This prevents familiarity with the architect’s routine and the scheduling of some construction when it might not be readily observed.

Usually, more visits are required at the start-up and close-out of construction.

Because many types of work (masonry, for instance) cannot be corrected readily without replacement, timely field review is needed to preclude rejection of work which has been underway for several weeks.

Additional field reviews should be considered immediately before and during concrete placement.

Scheduling reviews before work is covered up allows for deficiencies to be corrected prior to permitting the completion of the remainder of the installation.

Question 42

Reporting

Answer 42

The architect should write a report after every visit spent observing work in the field.

Architects can take the checklist to the job site and use it to assist in recording observations and writing field review reports.

Checklist:

See chapter 6.5

Question 43

Mock-ups

Answer 43

Mock-ups are usually full-scale, partial constructions of a certain system or building component.

The architect should establish a schedule for construction of mock-ups and procedures for their review at a pre-construction meeting.

Question 44

Field review services of consultants

Answer 44

The architect is usually the prime or “managing and coordinating” consultant, and is responsible for coordinating the field functions of the engineering and other consultants. It is important to call upon the services of the consultants at the appropriate stages of construction.

Question 45

Certificates for Payment

Answer 45

In typical stipulated-sum construction contracts, the architect is responsible for preparing Certificates for Payment indicating when and how much a client must pay the contractor.

Schedule of values:

Usually the contractor submits a schedule of values at the start of the project. The schedule of values is typically subdivided by divisions, major subtrades, or quantifiable elements related to the construction. The architect should review the schedule of values for completeness and for an accurate and realistic distribution of cost. It can be compared with the most recent construction cost estimate to identify significant discrepancies.

Percentage of work complete:

Payments to a contractor under a construction contract are usually made monthly in response to the contractor’s submission of a “progress claim”. The architect should conduct a field review to determine if the percentage corresponds with the contractor’s progress claim.

Statutory Holdbacks:

The architect prepares a Certificate for Payment based on the percentage of work complete and the contractor’s progress claim. Change orders must be accounted for in the Certificate for Payment, as well as the appropriate holdback required by the provincial or territorial lien legislation.

Recording Change Orders on Certificates for Payment:

Each monthly Certificate for Payment states the current value of the contract in the section headed “Contract Summary” by adding the net total price of all changes agreed to up to the date of the Certificate for Payment. Construction contracts frequently include a contingency allowance against which the price of each change order is charged or credited.

Question 46

Other certificates and letters

Answer 46

The architect may be required to prepare other documentation attesting to the status of the construction contract and the actual performance of the work. Two common forms of certificates are listed below:

1) Certificate of substantial performance.
2) Letters of Assurance and Commitment to General Review.

Question 47

Close-out services

Answer 47

As a project approaches completion, there are a variety of specialized contract administration procedures that need to be considered.

1) Review contractor completion submittals as required by contract documents

2) Arrange for appropriate personnel to attend demonstrations of systems, including takeover of applicable operating systems and instructions. Obtain appropriate records of demonstration and operation.

3) Substantial performance

4) Issue certificate of substantial performance

5) Provide letters of assurance (LOA)

6) Obtain and review required documents for release of holdback monies.

7) Assist the client in obtaining occupancy permit if required or requested

8) Receive and review final application for payment

9) Architect services at completion

Question 48

After completion

Answer 48

Most construction agreements provide for a one-year warranty by the contractor in favour of the client. The standard RAIC Document Six client-architect agreement says that “the architect shall undertake a review of defects and deficiencies and notify the constructor in writing of items requiring attention by the constructor.” Meanwhile, CCDC 2 says, “The owner, through the consultant, shall promptly give the contractor notice in writing of observed defects and deficiencies which occur during the warranty period.”