Construction Evaluation (CE) Flashcards
Design-Bid-Build
“Typical” delivery method. Architect assembles a set of drawings, Contractors bid on it using estimates from various subcontractors, the lowest bid typically is awarded the project.
Liability Crisis of the 1980’s
Explosion of lawsuits caused architects to restructure their contracts to mitigate risk and put more liability on the contractor. Large complex projects brought on more disputes between architect and contractor so owners gravitated toward the single-entity design-build model.
Fast-Track
Multiple design packages that are bid as design is completed (called bid packages). Construction Managers are typically brought on to help control this complex project.
Credit Crunch of the late 1970’s
High cost of borrowed money accelerated design-bid-build and created the Fast-Track delivery method to get projects done quickly and at a low cost to the owner.
Integrated Project Delivery (IPD)
Focuses on increased collaboration with all parties along with a more intense presence of BIM.
CM-Advisor
Manages constructibility and cost to the owner but is not the builder.
Owner contracts with Architect, Contractor, and Construction Manager who acts as an advisor (and is not typically contracted directly with arch & contractor).
CM-Agent
Early construction consulting and may help assemble the construction trades but is not the builder.
Fee is typically fixed and assumes no risk of the actual construction cost. Owner assumes savings and overruns.
Owner hires a Construction Manager who contracts directly with the Architect and Contractor but reports to and acts as an agent to the Owner.
CM-Constructor
Begins as a constructibility and cost advisor and is eventually the builder.
Fee is typically a GMP which is usually based off an early set of design documents (DD). CMC is at risk for overruns and benefits from savings.
Similar to the DBB method but the contractor is also the Construction Manager.
Design-Build (Standard)
Typically a contractor that subcontracts with an architect directly. This means the owner has no agent or design advisor for building performance and quality.
Typically fixed fee for both construction and design services.
The owner contracts with a single architect/contractor entity.
Design-Build (Bridging)
Consists of a design architect who establishes design concept and performance parameters and a production architect who generates construction documents and builds the specs. Drawings are passed on to the production architect but the design architect stays on as an advisor to the owner through the remainder of design and construction.
Owner contracts with a design architect and also hires a single architect/contractor entity to carry out construction.
Delivery method if COST is the biggest driver
Design-Bid-Build
Delivery method if QUALITY is the biggest driver
DBB, Negotiated Select Team
Delivery method if SCOPE is the biggest driver
DBB, Cost Plus Fixed Fee
Delivery methods if RISK is the biggest driver
CM-Advisor
CM-Agent
Design Build (standard & bridging)
Delivery method if TIME is the biggest driver
CM-Constructor
In what delivery methods is construction cost determined after design?
Design-Bid-Build
Negotiated Select Team
Design Build (Bridging)
CM-Constructor
In what delivery methods is construction cost determined before design?
Design Build (Standard)
In what delivery methods is construction cost determined at completion?
Cost Plus Fixed Fee
CM-Agent
Negotiated Select Team
A variation of DBB in which the contractor is selected early. Price is determined after design is complete and subcontractors are selected. Great for complex projects.
Cost Plus Fixed Fee
Contractor is awarded the cost of labor and materials plus a fixed fee that does not vary depending on construction cost. There may be incentives baked into the contract to complete the project early or under budget. (Good for contractor - benefits from being under budget and early but does not suffer if project is extended or over budget).
Struggles with forming an IPD Team
It is difficult to find a fit IPL (IP Leader). Mistrust between architects and contractors leads each party to disbelieve thier trade will be considered equal in the process if one were to lead.
Characteristics of an ideal IPL
- Good listener
- Proactive
- Address issues head on
- Manage from the middle (highly engaged)
- Prefer dialogue over debate
- ## Comprehensive responder
Reasons for choosing CMc
Agressive schedule, budget, and unknown scope.
A133
Base agreement between owner and CMc
CMc services during Pre-construction Phase (per A133)
- Evaluate program, schedule, and budget
- Perform consultation on construction, materials, and labor
- Prepare and update schedule
- Provide recs for phased construction
- Provide preliminary cost estimates
- Develope subcontractor and supplier interest
GMP
Guaranteed Maximum Price. includes estimate of the cost of the work, contingencies, and CM fee.
CMc services during Construction (per A133)
- Obtain bids from subcontractors
- Review and accept bids with owner and architect
- Administer the work
- Schedule and conduct progress meetings
- Maintain schedules
- Track the cost against the GMP
How is a CMc selected?
Architect and owner review qualifications and conduct an interview. Architect involvement in selection is crucial for team chemistry.
CMc Contract Coordination
Making sure that roles and responsibilities are clearly laid out and coordinated between owner-architect and owner-construction-manager.
CMc constructability expertise
- Local building conventions
- Building systems
- Site selection
- Scope limitations (staying within budget)
Outline Specifications
Early brainstorming of specifications needed during the SD level.
Performance Specifications
Outlines what performance criteria must be met instead of specifying specific products to be used. Project roadmap
Narrative Specifications
Typically used early on for pricing. Narratives outlining the gist of scope without having to detail it in the drawings.
CMc & LEED
CMc to incorporate the cost of LEED measures as early on as possible - both LEED design and LEED construction.
B103
Designed for large scale projects
B104
Small projects with limited scope
B101
SFAOA most versatile contract
B101, Article I
Owner’s obligations. Establish project descriptions, anticipated milestone dates, procurement (fee structure), delivery method, sustainable objectives (from owner), parties, who other than owner will be reviewing submittals to the owner, etc
E204
Environmental pledge exhibit, signed by owner & architect. Sustainable project objectives.
Architect’s Representative
Authorized person to act as an agent to the owner. Contractor only required to act by arch rep.
Services
Basic services
Additional services
Supplemental services
Supplemental services
Change order to the contract for supplemental service after agreement is executed. Specifically when the initial information is changed.
E203
Rules that parties must follow when transmitting documents.
B101 Article 2
Architect’s obligations
B101 Article 2
Architect’s obligations
Main difficulty (for architects) with Fast Track
Certain details may need to be worked out sooner than usual to help assemble, complete, and respond to questions about the bid packages.
Why should an owner retain a CMc as Chief Estimator
- Experience in material costs
- Knows the market conditions for labor
- They may already be involved in pre-construction services.
- They have an incentive to provide an accurate estimate.
What risk(s) are involved with the CMc Estimator inflating the cost estimate?
Subcontractors may catch wind of the inflation and raise their labor rates / markups.
What risk(s) are involved with the CMc Estimator suppressive cost estimate due to owner pressure?
Scope either needs to be cut out completely or more time must be taken to re-evaluate the quality of design (VE exercise). It can also lead to the CMc making side deals with subcontractors to lower cost which usually results in reduced quality for that trade.
The date the GMP is set
CM prefers to set GMP as far into bid phase as possible so that real construction costs can be used to form the price.
Cost cutting vs. VE
VE is a change to the design with the hopes it will lower the cost. A cost cut is the CM’s attempt to lower cost by going with a cheaper solution that will yield a similar design.
CMc pitfalls (for architect)
- Unrealistic fast schedule
- Cost estimates not based on careful drawings
- Lower GMP that does not reflect design intent.
- Lack of coordination between bid packages
Defining characteristics of IPD
- Binding multiparty agreement (O+A+C)
- Shared risk and reward
- Multi-party involvement in early design & decision making
- Indemnification from litigation for those on project delivery team
10 Fundamental Principles of IPD
- Trust
- Mutual benefit / reward
- Risks identified / accepted early
- Collaborative decision-making
- Involvement of key participants early
- Set goal definitions Early
- Intensified Planning
- Open Communication
- Collaboration Technology
- Organization and Leadership
The IPD Agreement
Multiparty contract between O-A-C based on a relationship of trust and mutual respect. Specifies the obligations that team members have to one another in IPD and the allocation of risk.
IPD Behavioral Principles
Mutual respect & trust, willingness to collaborate, open communication.
Cluster Group
A team within a team on an IPD project. Broken into smaller group to heighten productivity but still required to collaborate with the greater IPD team.
Owner benefits of IPD
Predictability, Reduced Risk, Flexibility in decision making, Elimination of adversarial relationships, Increased value at less risk.
Contractor benefits of IPD
Influence early in the design process, influence construction efficiency, elimination of change orders, more collaboration and better team relationships.
Architect benefits of IPD
Heightened team collaboration, more time to develop a fully coordinated design, participate in more than just design, reduced risk with potentially increased profit, improved building performance.
What is the biggest challenge with adopting the IPD method?
Planning & organizing the right team, agreements, and establishing a process.
Qualifications of a good IPD owner
Trust the process, have knowledge of the industry, understand the impact of design decisions, and agree to make decisions informed by key participants.
Legal barriers to IPD
- Fluid information sharing
- Unsupportive insurance policies,
- Indistinct responsibilities and liabilities
- Inconsistent state licensing laws
How does cost and speed of Design-Build compare to that of Design-Bid-Build
Much faster (12%) and cheaper (6%).
QBS Procurement
Qualification Based Selection - procurement model which owners use to select architects for projects.
Best-Value Procurement
2-Step procurement model in which owners consider the team’s qualifications. If qualifications are competitive, the 2nd step is to evaluate the team’s proposed technical solution and the proposed price.
What are the main factors submitted in response to an RFQ?
Experience, past performance, reputation, financial capability.
Owner as additional insurer
Owner sits under the umbrella of the architect’s insurance. Protects the owner in the event of issue where they are not involved.
B101 Article 3
Scope of Basic Services.
Basic scope of services per B101
Architectural, Structural, Mechanical, Electrical
B101 Article 4
Additional Services
Architect responsibilities over consultant drawings
Is not responsible for errors and omissions from sub consultants of the owner. However, they must notify the owner if they become aware of an issue.
Architect’s Schedule with a hard deadline from Owner
Establishes the date required for substantial completion to meet owner’s timeline of use. Working backwards, estimated the date that construction must commence to make that happen.
If delay is at architects fault
Owner can sue architect for retainage and delay fees
Biggest cause for construction litigation
Schedule delays and associated costs
Typical phase durations
SD - 10-15%
DD - 15-25%
CD - 40-45%
B - 5-10%
CA - 15-25%
Win Strategy
A collective strategy from a design build entity that combines all of the assets of the team along with competitive schedule, budget, and design.
Teaming Agreement
Agreement between contractor and architect during the proposal stage to structure the relationship early on.
Target Value Design (TVD)
AKA Target costing. Incorporating cost in design to minimize waste and create value. Requires the contractor to be transparent about cost information.
Uniformat
Cost estimating model that helps contractors determine price early on.
Uniformat levels
Typically 3 levels are sufficient in developing a cost estimate.
1. General topic in question (shell)
2. More specific (exterior enclosure)
3. More specific (exterior wall construction)
Honorarium
An upfront cost sometimes provided by the owner to the design team for their efforts during the proposal stage. Typically only about 15-20% of the actual cost to put it together.
Design/Proposal Validation
Important step after being awarded a project. Its a kickoff meeting to determine communication, decision-making, review, payment, (and more) procedures.
What to do after winning a DB project
- Set up a design/proposal validation meeting.
- Discuss service allocations with your DB team.
- Develop an integrated design work plan (IDWP)
IDWP
Integrated design work plan. Coordinates design deliverables with the construction schedule.
Pros of Design-To-Budget projects
More cost-effective approach for all parties involved and reduces the need to redesign down the road.
Cons of Design-To-Budget projects
A reverse model that some architects are not comfortable with. Contractor-led budget restrictions on design.
Design Reconciliation Interfaces (5)
- Cost
- Schedule
- Construction
4 Performance - Value
Errors & Omissions Change Orders in DB
Does not exist! The contractor stands behind both the construction and design during DB.
ALDB Bidding & Negotiation
Architect has the opportunity to meet with subcontractors on trade-specific drawings and have a chance to incorporate their comments prior to formal bid.
Who is responsible for MEP Commissioning in ALDB?
The ALDB entity.
Why is ALDB not attractive to many architects?
Hyper-involvement in the construction process that was previously avoided to help protect the design entity from construction cost overruns or errors.
A141
AIA family of contracts specifically designed for the design-build model.
Why do contractors typically profit a higher percentage of their fee?
A large portion of the fee is reimbursable per the general conditions.
Pros of Architect as Developer
Strive for sustainability, design quality, and social impact of the project.
Expertise required for Affordable Housing Development
Obtaining housing subsidies, qualifying for low-income tax credits, negotiating tax credit syndication agreements and loan agreements.
Required expertise for Market Rate Housing
Access to construction investment capital, negotiating with housing finance agencies, lenders, and equity investors.
Required expertise for Transit-Oriented Development (TOD)
Accessibility to well-located land, zoning for high density development, integrate mixed uses, working with public sector agencies.
What is riskier, rental apartments or condominiums?
Rental apartments. Less prone to litigation and easier to finance.
How to manage risk in architect-developer scenarios? (6)
- Obtain outside resources
- Schedule and budget contingencies
- Do not provide personal financial guarantees
- Adequate insurance
- Mitigate risks before financial commitment
- Do not take on project too large to finance or lease
Elements of a Real Estate Development Plan
Financial model, marketing plan, feasibility analysis
Main risk during site control setup
Predevelopment budget is at risk until final commitment is secured
What must be completed prior to Site Control Final Commitment (per lender)?
Third party market analysis to assess the supply and demand of comparable real estate
Architect-developer ongoing roles (4)
Managing member, marketing, leasing, property enhancements
Examples of Hard Costs
Construction, furniture, construction contingency, final cleaning.
Examples of Soft Costs
Architectural services, testing & inspections, marketing, legal fees, permitting
Development Plan: Schedule Management
Key milestones for each stage of development, target dates for action items, abbreviated construction schedule
How to qualify for public grants and tax abatements?
Present a plan that addresses public priorities and appeals to the community.
Stages of Development (5)
- Feasibility and acquisition
- Design
- Financing
- Construction / Marketing / Leasing
- Operations / Management
3 Elements of Emerging Project Delivery Methods
- Collaboration of Project Participants
- Transparent exchanges of info
- Reliance on BIM
BOT
Build-Operate-Transfer. Transfer of rights to a property to update it and run it for a period of time to alleviate the originating institution from having that financial burden. Architect shares in profit for a contracted amount of time (25-99 years)
PPP
Public Private Partnership. Same as Build Operate Transfer
Incentive Payments
Payments to architect/contractor for project accomplishments such as maintaining schedule, budget, or LEED
Objective Side of Project Management
Tangible deliverables of a project manager that include attending project meetings, preparing agendas, adding to correspondence.
Subjective Side of Project Management
Intangible deliverables such as attitude, personality, and behavior.
Components of a Work Plan
- Project Description & Client Requirements
- Statement of Deliverables
- Team Organization
- Responsibility Matrix
- Preliminary Project Schedule
- Preliminary Staffing Needs
- Project Directory
- Internal project budget and profit plan
- Code Information
Types of meetings in a Meeting Management Plan (5)
- Executive
- Project Design
- General
- Coordination
- Red Line
Types of meetings in a Meeting Management Plan (5)
- Executive
- Project Design
- General
- Coordination
- Red Line
Types of meetings in a Meeting Management Plan (5)
- Executive
- Project Design
- General
- Coordination
- Red Line
Types of meetings in a Meeting Management Plan (5)
- Executive
- Project Design
- General
- Coordination
- Red Line
Executive Session
High level meeting with key decision makers
Project Design Meeting
Owner, key decision makers, and main project designers.
General Project Meeting
Design direction, scope, and schedule changes communicated to the full design team
Coordination Session
Meetings with design team members, client is usually not included
Red Line Work Session
Limited attendees and focused discussion. Objective is to have clear solutions and direction at end of meeting
Vertical organization
The way we do things. Same project team throughout
Horizontal organization
Project passed through different teams depending on phase
Matrix organization
Same project team throughout but with input from in house phase specialists
When to begin workplanning
Marketing phase - start with top-down budgeting. Cross check with bottom up budgeting.
Why does the size of the contractor’s in-house team NOT matter in contractor qualification review?
The contract can subcontract out roles to make it work.
When are addenda issued?
Prior to receipt of bids.
What project types are required to bid?
Government-funded projects at the federal, state, or local levels.
Who creates and maintains the punch list?
The Contractor
What is the Statute of Repose
It starts the warranty clock (substantial completion)
When claims arise involving a subcontractor, who does the sub contractor’s insurance company make payment to?
The general contractor’s insurance company
What is a liner panel?
a 1” thick layer of type X gypsum that is rated for 2 hours
Who owns the burden of proof in the first year after substantial completion?
the contractor
Who owns burden of proof after 1 year from substantial completion to 10 years after?
the owner
What must the owner do if they want to fire the architect?
Obtain certification from the architect and inform the surety + contractor in advance that there are plans for termination of contract for cause.
Who is responsible for creating the punch list?
The contractor
What is similar to a critical path chart?
A PERT Chart
How many gallons per cubic foot?
7.5
How is radon addressed under slab?
a pipe needs to be installed to vent it
What building types require AFCI outlets?
Residential - they prevent electrical fires
What does cathodic protection refer to?
The corrosion of metals
Upon completion of the work, what must the contractor submit?
Extra stock of materials, Certificate of occupancy, warranties and operating manuals
How long after project completion must the architect keep files?
15 years
What is AIA D200?
The Project Checklist
Who creates change orders in CM as Advisor structure?
the CMa
