Construction Administration

Question 1

What are the general responsibilities of the architect during construction for CM as Advisor?

Answer 1

Same as with Design-Bid-Build, except:

• Both architect and CM provide CA services:
• both can require testing/inspector or reject work
• both review submittals
• the CM only prepares Change Orders and Directive, but they still must be signed by the architect (as well as owner and contractor)
• The architect reports the findings of site visits to the CM. The CM also shares their site findings with the architect
• Communication between owner and contractor go through the CM, not the architect, but the architect is copied on all messages
• The CM receives RFIs and forwards them to the architect w/ recommendation
• The architect remains the Initial Decision-Maker on claims between the owner and the contractor

Question 2

What are the general responsibilities of the architect during construction for CM as Constructor?

Answer 2

Almost all aspects are the same as with Design-Bid-Build, except:

• The architect must both advise and consult with CM in addition to with the owner
• The architect’s CA responsibilities start when the owner accepts the CM’s GMP, Control Estimate, or with the owner’s Notice to Proceed
• The CM still submits Application for Payment to the architect, but there is a more complex method for calculating the progress payment

Question 3

What are the general responsibilities of the architect during construction for Design-Build?

Answer 3

The architects responsibilities are defined in the agreement between constructor and owner. The architect may have all, few, or no CA responsibilities. All CA responsibilities are for only the architect’s portion of the work.

If selected, these responsibilities may include:

• Full administration of the contract between the constructor and any sub-contractors (EG request for payment, approve/reject work, receive and forward legal/financial/insurance documents)
• Review RFI and submittals
• Make site visits on behalf of the constructor in order to help protect them from defects and determine conformance with the Contract Documents
• Prepare/review proposed Change Orders
• Require testing/inspections
• When employed by the constructor (“design-builder”), perform any CA responsiblities that are contractually assigned to the constructor, which the architect may be asked to perform on their behalf

Question 4

What are the general responsibilities of the architect during construction for Integrated Project Deivery?

Answer 4

Once construction as begun, all responsibilities are essentially the same as with Design-Bid-Build.

Question 5

What are the cases where work must be uncovered? Who is responsible for the cost in each case?

Answer 5

Firstly:

If the architect has made a prior request to view work OR the contract requires work to be uncovered until inspected, but that work has already been covered.

In this case, the contractor is responsible for the cost of uncovering and replacing the any work.

Secondly:

When the architect or owner requests that work be uncovered.

In this case:

• The owner is responsile for the cost of uncovering and replacing any work if the what is uncovered is found to be in compliance with the Contract Documents
• The contract is responsible for the cost if the work is found to be not in conformance, unless the non-conformance has been caused by the owner or a separate contractor

Question 6

What are the architect’s responsibilities with respect to safety?

Answer 6

The architect has no obligation to ensure and advise on safety with respect to the contstruction.

If the architect observes clearly unsafe conditions, they should notify the contractor immediately verbally and in writing.

The achitect should never provide any advice, comment, or evaluation on how to provide safety. If they do so, they become legally responsible for the outcome of their suggestion.

Question 7

What are the division of responsibilities for tests/inspections? Who pays for tests/inspections?

Answer 7

• The contractor is responsible for making arrangements for inspections to occur and informing the architect of times, ETC.
• The contractor initially pays for all tests/inspections
• If tests or inspections are required (by owner, architect, or AHJ) beyond what was originally stated in the Contract Documents, or if they are Special Inspections required by IBC, then the owner must pay/reimburse the contractor for them.
• No matter who pays for the tests/inspections, the contractor is allways responsible for the cost to correct any times, including additional tests/inspections of that work

Question 8

What additional responsibilities does the architect have for sustainable projects?

Answer 8

Within the sustainability goals defined in the agreement or the Contract Documents:

• Along with other progress reports, ETC, also advise on the progress of achieving sustainability goals.
• As part of any inspection for and notification of deviation from the Contract Documents, also do the same for the sustainability goals.
• The architect registers the project with any authority that certifies sustainability
• Collect any sustainability documentation, format/maintain it, and submit to any certifying authority, as well as appealling any ruling by that authority, but only if made while the contract is still active

Question 9

What are the general aspects of the ways the project schedule can be accelerated?

Answer 9

Three types of acceleration:

• Directed Acceleration: The owner elects to accelerate the schedule and pays the agreed additional price for this
• Voluntary Acceleration: The contractor elects to accelerate the schedule (such as if they have fallen behind schedule or they want to finish early for personnel or financial reasons)
• Constructive Acceleration: The project has been delayed by an unavoidable sitaution (weather, deliveries, Change Orders, ETC) but choses not to negotiate an extension of the schedule.

If an extension of the schedule is warranted (such as with Constructive Acceleration), but for whatever reason the contractor is not given an extension, then they must meet the project deadline but may claim damages from the owner for the additional cost of accelerating the schedule.

Question 10

What are the general aspects of changes to the Construction Documents made before the contract is awarded vs after?

Answer 10

Before Contract is Awarded:
Changes are issued through “Addenda” and are included in the contractors bid amount.

After Contract is Awarded:
Changes come in the form of:
- “Minor Change to the Work”
- Construction Change Directive
- Change Order
Changes at this point may have cost or schedule implications that modify the contract price or milestones.

Question 11

What are the general aspects of the three types of construction changes?

Answer 11

• *Minor Change in the Work**
• A low-consequence change that does not require a change in the contract sum or schedule
• The architect may issue an order for this change without approval from the owner or the contractor
• May use AIA form G710 “Architect’s Supplemental Instructions”
• *Construction Change Directive**
• A change that has an impact on contract sum and/or schedule
• Issued when the change must be made immediately but the owner and contractor have not yet agreed upon a price and schedule change.
• The architect prepares the Directive with the owner’s approval; the contractor does not have to approve
• May use AIA form G714 “Construction Change Directive”
• *Change Order**
• A change that has an impact on contract sum and/or schedule
• Include a description of the change to the work (including drawings) and the amount of change to the contract sum and/or schedule
• Any party may propose a change order, but they are typically prepared by the architect and sent to the owner
• The architect, owner, and contract must all approve and sign the change order

Question 12

What is the typical process of a Construction Change Directive?

Answer 12

• The architect prepares the CCD. It includes:
• a description of the change to the work (text and drawings)
• a proposed basis for adjusting the contract sum
• The basis for adjusting the contract sum may be a mutually agreed lump sum, based on unit prices agreed upon in the original contract, or some other method described in the CCD
• The architect sends the CCD to the contractor, who must immediately proceed with the work as described
• The contractor must adives the architect and owner of their agreement or disagreement with the proposed basis for adjusting the contract sum. If the contractor agrees, it is recorded as a Change Order
• If the contractor disagrees, the architect proposes an adjustment to the contract sum based on an evaluation of the materials, labor, other costs, and profit. The contrator may propose this. Ultimately, the owner and contractor must negotiate and agree on this amount.
• If in the meantime the contractor submits an Application for Payment that includes payment for the change in the work, the architect must make a determination whether it is justified, with the owners approval.
• If such an additional amount in an Application for Payment is approved, it becomes an adjustment to the contract sum.

Question 13

What are the general aspects of Submittals?

Answer 13

• They do not become part of the Contract Documents, even if approved
• The architect is not responsible for reviewing for:
• Accuracy of field measurements
• Verifying quantities
• Approving fabrication or installation procedures
• The General Conditions of the Contract usually requires the contractor to submit a Submittal schedule to the architect for approval at the beginning of the project. This schedule should include reasonable time for the architect’s receipt and review, including any time and proceedures given in the Specifications
• Submittals may be sent for informational purposes only, if they do not require the architect’s approval (such items that are for record purposes only).

Question 14

In reviewing Applications for Payment, what are the general aspects of “acceptable storage”?

Answer 14

• Materials purchased by the contractor but not yet part of the work, which are stored in an acceptable way
• Usually means stored on-site, but if agreed before-hand in writing, can be stored elsewhere
• Materials not in acceptable storage may not be included on the Application for Payment, even if they have already been purchased and received by the contractor

Question 15

What is and is not included in the architect’s review of an Application for Payment?

Answer 15

Included:

• Reasonable belief that the work and materials on the Application have been completed/received
• Reasonable belief that the work completed is to the necessary quality and conformance with the Contract Documents

Not Included:

• Exhuastive inspections and verifications
• Review of methods and practices
• Review of requisitions, receipts, invoices, ETC to the contractor
• Determination of how the money previous paid to the contractor was used (IE, that the contractor has actually paid vendors or sub-contractors)

Question 16

What is a “schedule of values” and how does it interact with Applications for Payment?

Answer 16

• Submitted by the contractor shortly after the contract is awarded
• List the major ‘phases’ of the work and what portion of the contract sum is allocated to that phase
• The amount on an Application for Payment is usually a percentage of complete of a particular ‘phase’

Question 17

For what reasons may the architect withold funds on or reject an Application for Payment?

Answer 17

• The amount of work/materials represented on the Application does not appear to be accurate
• Defective work
• Presence or likelihood of a third party claim
• Known failure of contractor to pay vendors or sub-contractors
• Reasonable evidence that in the current situation, the work cannot be completed with what remains unpaid in the Contract Sum
• Reasonable evidence that the work will not be completed on time and that the unpaid Contract Sum is not enough to cover resulting damages
• Damage to the owner or one of their contractors
• Pattern of failure to complete the work in conformance with the Contract Documents

Question 18

What occurs at the final Application for Payment? What is required of the contractor for it to be approved?

Answer 18

Steps:

• Contractor notifies the architect in writing that the work has been completed and is ready for final inspection
• If the architect determines that the work is complete, the remainer of the Contract Sum is paid
• The Retainage is usually paid at this time as well

Required of Contractor:

• Affidavit from the contractor stating that payrolls, invoices, and other debts have been paid (may use AIA G706)
• Certificate showing that required insurance will remail in effect after the final payment and will not be cancelled without 30 days written notice
• A written statement that the contractor knowns of no reason that the required isurnace will not be able to be renewed
• A consent of surety (may us AIA G707)
• Lein waiver, if required by owner.
• Contractor turns over as-built drawings (if required by the contract)
• All operation manuals, warranties, maintenance contracts, certificates of inspection, ETC are turned over to the owner

Question 19

What are the architect’s responsibilities with respect to non-conforming work?

Answer 19

• The architect ultimately has no responsiblity to the performance of the contract or the work itself
• The architect is not required or expected to make exhaustive inspections or observations of the work
• If the architect discovers non-conforming work, they are required to notify the contractor and owner in writing, typically through a field report
• The architect must help track and advise (as appropriate) the contractor on how to remedy non-conforming work

Question 20

What are the architects responsibilities and powers with respect to rejecting work?

Answer 20

• The architect may reject any work by the contractor which does not conform with the Contract Documents
• Such rejection may be made at any time, before or after Substantial Completion
• The architect must provide a valid and well-explained reason for rejecting work
• The architect may require any testing or inspection that is necessary to determine conformance or when work is suspected to not conform. (any testing/inspection required does not imply that the architect takes responsibility for the result)

Question 21

What are the procedures and responsibillities with respect to accepting non-conforming work?

Answer 21

• Even if accepted by the owner and/or architect, non-conforming work must be noted by the architect in Field Reports and on the Substantial Completion documents
• The architect may accept non-conforming work, with the approval of the owner
• The owner may accept non-conforming work without the approval of the architect
• If the cost of non-conforming work is less than that specified by the Contract Documents, the owner is entitled to a credit from the contractor (depending on the project delivery type)
• If the cost of non-conforming work is greater than that specified by the Contract Documents, the contractor bears the cost (if the fault was the contractor’s)

Question 22

What are the general aspects of a “claim” during contract administration?

Answer 22

• Any demand by the owner of contractor for relief from a term of the contract, such as payment/credit, time extension, a change in interpretation of the contract, ETC.
• Must be made in writing to all parties, within 21 days of the discovery of the earliest cause/reason for the claim
• The burden on substantiating the reasons for a claim (EG, providing documentation) is on the party making the claim

Question 23

What are the general aspects of an Initial Decision Maker?

Answer 23

• Typically the architect, but may be a third party designated by the owner in the contract
• The IDM must take preliminary action on how to proceed within 10 days of receiving a claim
• May accept or reject the claim
• May suggest a compromise
• May request additional information
• May advise that they are unable to resolve the claim due to lack of information
• May advise that it would be inappropriate for them to make a determination
• In requesting information from either party in evaluating the claim, the IDM may request testing/inspection or evaluation by a paid expert
• The party must respond formally within 10 days
• The party may provide the information, state when it will reasonably be available, or refuse
• The decision of the IDM is final and binding, but may be challenged by mediation/arbitration (per the contract)

Question 24

What are the general criteria for ‘claims of unknown conditions’ by the contractor

Answer 24

• The conditions must be concealed (such as below the ground)
• The conditions must cause the site to differ substantially from what was represented in the Contract Documetns
• The conditions must be unusual, in the sense that they are different form what the contractor should reasonably have expected or been prepared for

Question 25

What are the significant aspects that come along with Substantial Completion?

Answer 25

• In most States, it starts the statute of limitations for errors and omissions by the architect
• It is usually the end of the period where the contrctor is responsible for the schedule
• It is usually the end of the point to which liquidated damages can be claimed
• It is the point from which the owner is responsible for security, maintenance, utilities, insurance, ETC.

Question 26

What physical tasks must the contractor complete soon after Substantial Completion?

Answer 26

• Instruct the owner (or representative) on the special maintenance and operation of building systems, if any
• Complete keying of locks
• Turn over “attic stock” (extra/leftover materials for future repairs) if specified in the contract

Question 27

At what point is the work of the contract complete (“Final Competion”)? What

Answer 27

When the architect issues the final Certificate for Payment, after inspecing and accepting that the work is complete and all punch list items are corrected