Domain 6 - PreConstruction

Question 1

The Time period between the procurement phase and the beginning of actual construction work

Answer 1

Preconstruction

Question 2

Preconstruction activities before contractor can start the work.

Answer 2

1.) A successful bidder is selected by the owner to be the contractor.
2.) A letter of Intent to award the contract is issued by the owner.
3.) Bonds are furnished to the owner by the new contractor.
4.) Insurance certificates are furnished to the owner by the new contractor.
5.) The Agreement is signed by both the Owner and the Contractor
6.) Building Permits are issued by the AHJ
7.) Owner issues a Notice to Proceed.
8.) Contractor starts buying out the project and awards subcontracts, and purchase orders.
9.) Site Conditions are verified
10. Preconstruction meeting is held
11.) The contractor mobilizes onto the site

Question 3

What is the purpose of the Agreement

Answer 3

*Agreements signify that there is a “meeting of the minds”
*the two parties have freely mutually agreed to the stipulated terms; that the parties are bound until the terms of the
agreement are fulfilled;
*to legally protect the parties.

Question 4

Describe the advantages of using standardized agreements

Answer 4

• Language consistency and enforcement predictability.
• Legal preparation time and expense are less compared to custom-drafted documents.
• Reflect both industry practices and customs, or may be based on a consensus of those that use the forms.
• Risks and responsibilities are assigned to the party that is best able to control them or protect from unexpected costs.
• Developed with the understanding that they would be tailored by attorneys to fit the unique requirements of a specific project.

Question 5

Identify the elements of an Agreement

Answer 5

*Offer and Acceptance - creates a duty to perform the scope of the work as described in the Agreement.
*Mutual consent - “meeting of the minds”
*Capacity - competent to sign an agreement, fulfill obligations
* Scope of Work - description of the Work required for the exchange of consideration (money).
*Consideration - exchange of value (money) for doing the Work
*Legality - cannot violate a public policy in place
*Remedy for Breach of the Agreement - claim or lawsuit
*Written - put in in writing, oral agreement may not be enforceable
*Signature - by responsible parties with authority to bind an agreement.

Question 6

Identify the provisions of a typical construction agreement

Answer 6

• Preamble
• Identification of parties
• Identification of other participants
• Contract documents
• Scope of Work
• Date of Commencement of the work
• Date of Substantial Completion of the Work
• Liquidation damages
• Incentives, Bonuses, and penalties
• Contact Sum
• Adjustment of contract sum
• Unit Prices
• Payment Procedures
  *Due dates for payments
  *Work completed
  *Materials and Equipment stored off-site
  *Progress payment and retainage
  *Cutoff date
  *Payment at Substantial Completion
  *Due Date for Final Payment
  *Miscellaneous provisions
  *Termination or suspension
  *Signatures

Question 7

Establishes a fixed monetary amount per day, as a
result of failure by the contractor to complete the work
by the date of substantial completion, a stipulated time,
or by a stated calendar date

Answer 7

Liquidation damages

Question 8

Establishes the percentage of the contract sum that
will be due upon substantial completion

Answer 8

Payment at Substantial Completion

Question 9

Enumerates the graphic and written documents
(drawings and specifications) that constitute the work
required by the agreement

Answer 9

Contract documents

Question 10

Establishes a number of days for the duration of
the work, or a specific date when the work is to be
completed and the owner can occupy the project or
a designated portion thereof for its intended use

Answer 10

Date of Substantial Completion of the Work

Question 11

Records the date of the agreement and the legal
identification of the project

Answer 11

Preamble

Question 12

Establishes the monetary amount that is to be paid
for the performance of the agreement

Answer 12

Contact Sum

Question 13

Establishes the date on which the work is evaluated for payment (10 days or less)

Answer 13

Cutoff date

Question 14

30 to 60 days after Substantial Completion at which the owner will make final payment to the contractor, subject to fully completed work, and free of liens.

Answer 14

Due Date for Final Payment

Question 15

Establish monthly date for progress payments, owner may keep 5% to 10% to ensure full performance of the agreement. Retained funds may be place in interest earning accounts until project completion. Contractor is paid the retainage with interest accured.

Answer 15

Progress payment and retainage

Question 16

A document that lists the date work is authorized to commence if the date to proceed is not stipulated in the agreement. It may also list the number of calendar days that are allowed for the construction, or it might include the required date of substantial completion.

Answer 16

Notice to Proceed

Question 17

Describe the two responsibilities of the contractor during the buyout process

Answer 17

• The contractor’s first responsibility is to award contracts to subcontractors.
• The contractor’s second responsibility is to issue purchase orders to suppliers for products, materials, systems, and equipment.

Question 18

Identifies other participants who affect the agreement and may include the A/E for the project, or a CMa- advisor

Answer 18

Identification of other participants

Question 19

Contract documents are a subset of Procurement and are prepared by the architect/engineer and design team.
Identify the documents that make up the Contract Documents

Answer 19

Div.00 Contracting Requirements:
1.) Contracting Forms:
a.) Agreement
2.) Project Forms
a.) Performance Bonds
b.) Payment Bonds
c.) Certificates
3.) Conditions of the Contract
a.) General Conditions
b.) Supplementary Conditions
c.) Addenda, revisions, clarifications, modifications
4.) Contract Drawings (Civil, Arch, Struct, MEP etc.)
5.) Specifications
a.) Div 01 - General Requirements (for all sections)
b.) Div 02-19 - Facility Construction
c.) Div 20-29 - Facility Service
d.) Div 30-39 - Site & Infrastructure
e.) Div 40-49 - Process Equipment

Question 20

Identify the types of submittals that may be required prior
to construction.

Answer 20

Depending on the project delivery method and the contract specifics, preconstruction submittals may include the following:

• Certificates of insurance, including provisions for worker’s
  compensation coverage
• Performance bond
• Payment bond
• Schedule of values
• Submittal schedule
• Proposed subcontractor and product lists
• Construction progress schedule
• Building permit
• Proposed use of the site and site logistics, including signage
• Stormwater Protection and Pollution Prevention (SWPPP) Plan
• Traffic control plan

Question 21

Identify the types of permits that must be obtained
prior to start of construction

Answer 21

1.) Building Permit
2.) Specialty Permit for specific portions of the project: Utilities, Temporary erosion control, surface water management, environmental mitigation work, traffic control, mechanical work, plumbing work, fire sprinkler system, electrical work, and fire alarm system work.

Question 22

Identify the entity that is required to obtain the permit

Answer 22

Contractor

Question 23

Describe the purpose of the preconstruction meeting

Answer 23

The preconstruction meeting is the unofficial start of construction and is a time when the stakeholders and participants meet to disclose and discuss procedures before construction actually begins on the project site.

Question 24

Explain the purpose of verifying existing site conditions

Answer 24

The conditions documented in the contract documents establish the existing circumstances that are known during the design phase. Verification of those site conditions is necessary in case damage occurs to existing facilities or adjacent properties, or if unknown or concealed conditions are encountered later in the project.

Question 25

Mobilization

Answer 25

Mobilization is typically the contractor’s first activity on the project site and entails setting up the temporary facilities that the contractor will need to perform the work. Mobilization generally occurs after receipt of a notice to proceed.

Question 26

Elements of the Mobilization process

Answer 26

1.) Use of the Project Site: Access to work, traffic patterns, staging areas, site use coordination
2.) Project Site Security: Temporary fences and gates, lights, security guards, security bars, video cameras
3.) Temporary Facilities: Office Trailer, Storage trailers, and areas, testing laboratories service
4.) Temporary Utilities: Portable toilets, electrical power drops, water hook-ups, telephone/connectivity service
5.) Temporary Controls: pest, dust, water and runoff
6.) Equipment
7.) Environmental Protection: Sediment and erosion control, Tree and Plant protection, seeding/mulching, slope netting, project site safety
8.) Utility locations
9.) Survey/layout/datum information

Question 27

Describe the common types of field offices

Answer 27

For construction of new facilities, field offices are normally accomplished through the use of portable facilities. When an existing facility is being renovated or the project is on a restricted site such as a downtown location, it may be possible to establish field offices using designated space within an existing facility or to lease space within an adjacent facility.