Intro to MMCD Flashcards
What does MMCD Stand for?
Master Muncipal Construction Documents
What is the MMCD?
Integrated set of contract documents that forms the skeleton of a tender package.
Designed for:
- Municipal Works (Underground utilities to street level)
- Unit Price Contracts
- BC Legal Environment
When do we apply/need MMCD?
We need it when:
- BC Law needs to be applied
- Any form of municipal work needed such as utilities to street level design, lighting and traffic control, unit prices to form majorty of tender items
Why does MMCD use Unit Price Contract?
It works with them since their scope is less defined conditions that municipalities encounter in infrastructure works.
- quantity determination is difficult to output
- lots of unknown conditions
- decisions are made on site alot
- helps to reduce bid risk for little cost.
When do we NOT use the MMCD?
Large sum/Fixed Price Contracts
Any form of structural work - unless more specifications are added in relation to municipal
Hazardous material clean ups - usually for CCDC
What was the reason that MMCD was formed?
1988 - owners, contractors and consultant saw there were benefits to having a better standardization of contract documents.
1995 - entire package was published to MMCD to create document development and ever since then, main documents have been updated and reprint continously.
What kind of benefits did MMCD achieved from having these standardizations?
Benefits all parties from minimizing errors and effort in tender preparation and bidding
Also minimizes confusion in standard and contract terms.
Because there are less errors, there are reduced construction + adminstration costs
Maximizing and efficient words of understanding to everyone.
Benefits owners to improve confidence in credibility and defence.
- enables regular updates without duplicate efforts to each owner when there’s a change.
What are some measurements of their success in having MMCD?
Market penetration!
- purchased by over 90 municipalities and district $$$
- recommended by 2 gov ministries
Testimonial Benefits
- users have saved 10 % in contract costs
- users recommend MMCD to non users (ofc)
Litigation Reduction
- there has been no MMCD contract that needed to be resolved in COURT. wow!
Why are MMCD so successful as they say?
Language was used through consensus(harmony) representative of 3 parties involved (owner, consultant, contractors).
[wording was picked from the 3 parties involved]
Created in fairness and easy to understand and use.
MMCD Philosophies (basic fundamental rules)
Fair to all parties Fair way to resolve disputes Fair way to address changes Minimize risk taking by Contractor Write in plan english Avoid repetition
In terms of Risk Management, what principles does MMCD apply to regards to risk?
1) Not in Owner’s best interest to attempt to choose “all-in” risk.
> Owner will pay too much in the long run.
2) All risks (known/suspected) at the time of tender MUST BE DISCLOSED. It is a legal requirement
3) Any risk should be OBVIOUS in tender documents.
> Done by stating all changes to the base documents in Volume 2 through supplementary.
What is the role of the Owner in MMCD?
Own / Acquire the site and all its risk
Arranges for site’s:
- design
- financing
- owner permits
- utilities movement
Engages with Contract Adminstrator
Tenders and Select Contractors and Approve Sub-Contractors
What is the role of Contractors in MMCD?
Awarded the contract based on the tender documents from the owners.
Owner picks contractor usually based on the lowest price.
Owner chooses contractor based on their experience in the firm, and superintendent experience.
Owner CAN reject proposed subcontractors BEFORE awarding.
Once awarded, their role is to:
1) commit to all strict compliance in the contract
2) full responsibility for SITE SAFETY
3) full choice in method of construction, and responsible for contractor permits
4) Responsible to manage subcontractors to meet the same contract standards.
What is the General Role of the Contract Adminstrator? (CA)
It’s mandatory, and appointed from owner from their own staff or another consultant.
- Has to be placed at the Notice of Award bid
- Has to be remained throughout the contract
- Their role is done at TOTAL PERFORMANCE stage.
Their authority is deep but narrow (specific authorities)
- constrained to the specific wording of the contract. No other form of interpretation is allowed.
What are some limits on CA’s authority?
Their role is strict and has to be constrained by the exact wording of the document.
This is required to prevent abusive authority and prevent poor working relationship between parties.
If there are no limitations, their freedom attracts the owner’s liability to the contractor through tendering.
(miscommunications)
