Construction Administration Flashcards
What are the documents part of the contract documents? Who signs them? Who has authority to change them?
Documents:
1) Contract Forms (agreement, payment bond, performance bond, certificates)
2) Contract Conditions (gen and suppl. Conditions)
3) Construction Drawings (arch and consultant drawings)
4) Specifications (divisions)
5) Addenda (changes during tender)
6) Modifications ( change orders, change directives, site instructions)
Architect seals and signs all contract documents.
Owner and architect with owner’s approval can make changes to the documents.
Any changes to the construction contract document (CCDC) is binding between two parties and both parties must agree on any changes.
What is the purpose of shop drawings? What are architect’s looking for when reviewing them? What are architect’s responsible for?
Typically shop drawings are for pre-manufactured products
Architects Look for:
1) Contractors review + stamp (notes about discrepancies)
2) Review for general conformance with design intent
3) Review against life + safety codes, guidelines, standards
4) Distribute to relevant consultants for review. Architect only reviews own scope.
5) Identify/provide/ request letters of assurance where applicable
6) manage proper response time
What are the procedures for resolving disputes between architect and contractor over interpretation of the contract documents?
1) Review the contract conditions
a) consultant is interpreter
b) give objective/fair recommendation
c) if findings don’t resolve, review procedures under Dispute resolution (Doc 6)
Dispute resolution (Doc 6)
a) negotiation, mediation, arbitration
b) review rules for mediation and arbitration (CCDC 40)
If there is a conflict the order of priority of documents is the following:
i) agreement between owner and contractor
ii) definitions
iii) supplementary conditions
iv) general conditions
v) Div 1 of specifications
vi) material and finishing schedules
vii) Drawings (larger scale govern over small. Dimensions on drawing govern over scale)
viii) later dated documents govern
How do you confirm the value of changes? What are the procedures/documentation required to make a change to a CCDC2 contract?
1) Consultant: Prepares documentation + breakdown of changes in CCO (contemplated change order) aka PCN or CCN
2) Contractor: Prepares amount of adjustment to contract in time/price.
3) If client + contractor agree on change in time/price, client issues a change order (CO)
4) If client + contractor do not agree on change in price, Change Directive (CD) can be issued to not delay work. Price will be provided at a later date.
5) Value for work is included in the Application for Payment
Describe the typical bidding process.
1.Select tender type (open/public, invited, direct)
2.Prepare bid package (refer to CCDC 23 – A quide to calling bids and awarding contracts)
a) Bid Info/requirements (instructions to bidders)
b) Contract form and bond requirements
c) Specs
d) site info
e) drawings
f) scheduling restrictions
g) Addenda
- issue notice of tender, GC provides bid deposit if interested in bidding (fee for bid package prep).
- .Distribute bids
5.Bid Depository and Construction association collect all bids from sub contractors and suppliers
6. Pre bid meeting held for questioning. Architects releases addenda to all bidders. 4 days before closing for last release.
7.Closing of Bid – Contractors must have fair time to complete bid. Typ 4-6 weeks from release. Close in afternoon, not a mon/fri or after stat holiday.
7. Contractor submits bid - if meets all requirements they automatically enter a Bidding contract with owner (contract A). Legal rights and obligations on owner/contractor now enforceable.
8.Analysis of bids – architect assists in reviewing and advising bids. Review:
a) bid completeness
b) bid amount
c) proposed construction start/end date
d) addenda included
e) sub list, manufacturs and supplier list
f) alternative
9.Contract Awarded (letter of acceptance, notifications of unsuccessful bidders, preparation of the construction contract (Contract B))
How do you determine if a Bid is compliant?
Any bid is considered compliant if contains the following: (CCDC 23: guide to calling and awarding bids)
a) addenda are acknowledged + included
b) bid properly sign, sealed and dated
c) included bid bond + security bond
d) consent to surety or agreement to bond (ensures surety will provide performance bond)
f) alternatives and unit price listed
g) list of sub consultants and references
Not compliant if:
a) does not meet confidentiality requirements (i.e. not sealed
b) correct number of addenda not included
c) no bid bond or bid security
d) not properly signed or sealed
e) bonding requirements not submitted
What are the various types of bonds and what are they used for?
Bonds permit a contractor to prove an owner with a guarantee from a bonding company (surety)
1) Bid Bond: If contractor fails to enter into contract, contractor guarantees to pad the difference to the next bidder (typ 5% or 10%) or 2.5% on larger projects
2) Performance Bond: If contractor defaults, guarantees cost of completing the contract up to the bond amount (typ. 50% or 100%)
3) Labour and Materials Bond
Ensures suppliers and trades are paid for work completed
When does Architect apply their seal and to what documents?
Architect’s seal is a professional seal and can only be applied to certain documents by architect who is licensed to practice.
Architect applies seal with signature and date to:
1) letters of Assurance
2) rezoning, development permit and building permit drawings
3) Construction documents, specifications and addenda
4) Tender documents
5) Site instruction, payment certificates, substantial performance
Do not apply seal to Blank documents, As-builts and record drawings or any documents that were not prepared under supervision, direction or control of architect.
What are the procedures and documentation to process contractor’s progress claim? How do you check the value?
1) Collect Required Documents from contractor:
a) Application for payment
b) Schedule of values + work performed
c) Signed Work Safe BC form
d) Notarized Statutory declaration (subs were paid previous month)
2) Review/assess values based on:
a) Sub consultants feedback and respective scopes
b) field reviews of work done + materials on site
3) Track claim relative to Schedule of Values.
3) Respond to client within 10 days (contractual time) with Certificate of Payment including value adjustments, comments, and holdback to protect subs and client.
4) client has 10 days to pay contractor (20 from date of application)
Who is responsible for hidden and unforeseen site conditions?
The client. Captured as a change order.
What is the purpose of field reviews and how often do you need to do them?
1) conformance with design
2) required obligation under LOA by BCBC
3) Do them monthly for progress claim review, review at substantial performance, deficiency review, completion review, warranty review
4) review at important points during construction
a) excavation
b) start of new trades work and before work covered up by another trade
c) review moch ups required in specs
d) review after large weather events
4) frequency is up to architect to determine based on nature of project but enough to ensure fulfill obligations in Schedule B.
The Architect and Client are on site with the Contractor and it is discovered there is an omission in the contract documents and the contractor requests extra costs. There is a dispute over who should pay. How would you proceed?
1) Review contract documents and conditions
2) Architect is interpreter of contract documents and must Make unbiased interpretation
a) If no cost: Issue SI
b) If cost add owner required to pay: Issue PCN. If agree on cost, isssue CO. If no agreement, can issue CD to resolve price later date.
3) If no agreement is resolved on interpretation than can proceed with dispute resolution.
3) If owner is found responsible for payment
a) can use Architect’s Professional Errors + Omissions claims
b) can sue
What should you consider in deciding on a new/alternative building product?
Review:
1) Canadian life and safety testing standards (ASTM, ULC etc)
2) Warranty, budget and lead times
3) Reference projects
4) local usage, trade expertise and availability
What are the different CCDC construction contracts?
1) CCDC2 - Design-Bid-Build
a) Owner to contractor
b) Architect administers some aspects of construction contract
c) Pro: price construction known, common contract, program/design resolved pre constr.
d) Cons: Risk to GC, Design seperate to construction, thus limits constructability; contractor unknown during design, potential for unqualified low bidder
2) CCDC3 - Cost Plus
a) contractor compensated for actual costs + fee, costs paid regardles of work completion, small scale projects, Risk to client, guaranteed max price option available to owner
3) CCDC4 Unit Price Contract
a) heavy civil projects typ, measured in repeated quantity
4) CCDC5A - CM contract for Services
a) CM only provides services
b) owner engages architect for design services
c) CM provides constructability, cost estimating, bidding, scheduling, awards
D) extra communication btw architect and CM
5) CCDC5B - CM contract for Services + work
a) CM provides services and is builder
c) Pro: constructability, cost advice and time is essence (sequence tender)
d) Con: cost unknown until at end of tender, added communication with CM, Owner takes on risk
6) CCDC14 - Design build stipulated price
a) Owner-design builder contract
b) Design builder responsible for design and work.
c) costs known early in design
7) CCDC15 - Design Builder + consultant contract
a) Owner-architect contract to advise during design
b) con: arch. is added fee
8) CCDC30 - Integrated Project Delivery
a) single team in design-construction program of contractor, owner, architect and major trades
b) profit to all parties involved
a) Pro: constructability, scheduling, reduced inefficiencies
b) Cons: collaboration time consuming, owner fully engage, negotiation is key
What is a construction lien?
Claim against property by contractor or sub contractor who has not been paid for work done on the property. Intent to protect professionals for not being paid for services completed.
