NZIA Webinar D-E Flashcards
in CRC, do you define a updated cost estimate as a variation? How do you then treat prov sums?
Cost reimbursement – this is when the scope and quantity isn’t clear eg, emergency work so the contractor need to go ahead with works and the client pays.
High risk. Updated cost estimate is not a variation because there wasn’t a lump sum to begin with. If there scope was clear but the quantity unclear there go with measure and value.
Go to tender on foundations and basement as provisional sums
House – architect for a client, have a QS involved, rigorous whats fair, charged for by the contractor, huge amount of trust needed in this scenario.
House was just charge up, builder and client very close relationship, client was here all the time, quite rear to be doing this as an architect
Cost reimbursement contract, want to understand what the cost is at procurement, wouldn’t want to go into it without know what the costs could be, depending on QS and how it’s structured, divide it up into work packages: foundations, roof, framing and assign a rough cost but its not a prov sum in lump sum package. Try to work out when the costs come in at each month, how it tracks over the estimate.
At the start, would have rates, parameters and measuring against this.
Term engineer to describe PM role? When is this required.
in 3910 contracts, when PM is the engineer to the contract. Equally architect can be the engineer. SCC, the architecture undertakes administration. Architect may be identified as engineers rep. Could be structural or civil engineer.
Fidic
3910 gets rewritten will be rewritten to contracts administrator
What happens if tender comes 5mins late
4pm closed and box locked shut. Tenders go to PM/Client.
Resi - on time. late not acceptable. Late because of unforeseen event.
NZIA seminar - bottom 2017 jacobsen series - Graham truss.
Joint contracts tribunal contract
English contraction contract
Explain the differences. 5 difference clauses.
Pain to use SCC and Master builders (biased to builders).
Master builders
(biased to builders). NO retentions
levels of detail in SiD? for varying scales of building?
SiD for Gastro was 2 pages - height of joinery shelving, mitigating slipping from materials
SiD for Summset was more comprehensive. Refer approval F.
All consideratons related to the project
Examples - existing buried service lines, injury due to striking ex. service lines during construction, extreme, as-built services as much as practically possible. Test pitting to locate prior to bulk excavations/trenching. Be aware and look for existing services plans provided to ensure correct excavation practices are used. Electrical cables to be treated as live until proven otherwise. Transformer onsite in existing shed needs removing. Existing services site plan to be done (Civil / Services), Consultant team, civil, services, main contractor.
Buckland school - survey, located existing conduits, existing WW and SW line locations, bridging over these lines in the documentation.
Site contamination -
JC thoughts: during project initiation, site investigations, historical use, if aware of potential contamination advise the client to engage specialist consultant.
T&T undertake testing and prepare report. Report would inform structures and civils regarding membrane selection. Inform client of membrane options their advantages, disadvanages and risks
SiD: Hazard to human health, Flammable substances if exposed/encountered. During enabling works and piling. Detailed subsurface investigation to identify the risk and provide site management plans which outline methods to handle and dispose materials. Engage experience specialised contractor. Vapour barriers and passive ventilation trenches below occupied spaces (and other confined spaces which are to be accessible) to prevent build up of gases. Outlet of passive ventilation trenches to discharge 2.5 - 3m above ground level, clear of buildings and away from sources of ignition. Action list and procedures required for what to do with contaminants from Contamination specialist engaged by Main Contractor.
Voids in the design, safety from falling
Steep gradients, difficult vehicle and padestrian access, fall hazards from steep slopes,
provide clear pathways for access free of obstracles and trip hazards, good lighting
Flood storage areas - access confined area by general public/illegal access, public safety, screen off area, provide screens that prevent unwarranted access, but not cause blockage.
AirNZ - WSP undertook contamination report - hydrocarbons, impacted the lift pit 1.6m deep, water table at 3m.
Chandelier, risk 3m, falling from height, cleaning chandelair - could use scaffold, not possible, then drop scaffold, install a chandelier winch to be able to clean it.
Roof access strategy - no balustrade. H&S will want to know why a worked fell from heights.
all consultants input into this.
engineer to the contract
grad can be a representative. Clear my role is defined - everyone know’s who is an architect and who isn’t. Signing and authorisation of documents.
So not to mislead.
Talk to the client and contractor.
residential project were no QS involved, how can you know if the variations contractor is claiming are reasonable.
Day rates in their tender if these are reasonable. Phase 1 FCC was claiming a large amount for floor grinding, we divided it by the hourly rate and this turned out to be about 12 hours of grinding full time. This did not sound reasonable. raised this to the QS, principal amendment to the payment schedule…
ASK for evidence. Architect Approving values of work.
Mel - no QS and have variations coming through. Concern something isn’t right then ask for a breakdown. Expect to see margins and P&Gs, how much time and material cost. Not just $10K/number
integrity undermined.
What is your advice if the contractors excuse for not paying retentions is clash flow subbies?!
They need to be in a stable financial position at tender. Something we evaluate.
payment claim, Principal pays the Contractor except for 10% of 200K, 5% of 800K and 1.75% of 1million SCC. Or defined amount in 3910. This is deducted.
If they do not, they are in breach of 3910/SCC general conditions.
They are in default.
Give them opportunities and put in writing. If they aren’t able to continue their obligations to complete works in accordance with the contract.
Notify the contractor I will call up the bond in 10 working days.
estimate of costs of outstanding work. advise the contract and the principal. engage another contractor to do this.
Retentions in the contract they are tendering on. If they have an issue with retentions then its a red flag. Part of it is they need to have the financial backing to be able to deliver the project.
Wanting retentions to be released early due to cash flow. Dont want to release the retentions as they may not existing in business next week.
Contract is between Principal and Contractor it is not up to be to unilaterally say, as it is the clients risk.
Never enter into a contract with out securities in case the contractor goes into liquidation. Could be retentions, bond, guarantee from master builders, or halo garantee from. Personal opinion to not have retentions is dangerous. Need to have some money to remedy. Eg, roof leaks, contractor walks off, half a year later after practical completion, the client then has to pay, but they already paid for a roof so shouldnt have to pay for this again. High risk on client would not recommend.
Clearly outline this when going out to tender, contractors opportunity there to decline at this point.
Value of retentions is not that much $200K, normal clause in SCC projet needs to be 8-9milion. At end of project builder cleaned the windows and scratched all of them. Cost of the glass was $200K so retentions only went part of the way to resolving the dispute. including the glass balustrades, they used the wrong cleaning equipement.
Dispute is bigger than the retention thats a bigger issue. most defects can be covered by retentions.
