Practice Wide Delivery of Services

Question 1

Accepting a Project (Biggest Factors)

Answer 1

• sufficient client budget?

- reliable/reputable client?

Question 2

If the budget will be exceeded by professional fees, what can the architect do?

Answer 2

If they want the experience:

1) accept lower profit margin
2) negotiate lesser scope

OR
3) decline work

Question 3

Researching the client

Answer 3

• credit check
• litigation history
• finances for project
• construction/building/design experience
• reputation with associates/vendors/clients

Question 4

Other Factors to consider in accepting a project:

Answer 4

• are they using bidding to select design professional? (Can indicate a budget concern)
• do they seem to have unreasonably high expectations or unreasonable requests?
• do they want to use nonstandard contract? (Could be fine, but have lawyer carefully review before signing)

Question 5

In a Non Standard Contract look for…

Answer 5

• clear responsibilities and scope
• fee, payment method, right to suspend services for nonpayment
• no language suggesting fiduciary duty to owner
• clear language stating Architect is not responsible for Contractors defect
• NO professional services indemnity clause
• architects right to rely on owner furnished information
• no warranty or guarantee statements
• architect only responsible to meet standard of care
• architect is not responsible for means/methods/jobsite safety
• clear reqs. for insurance for all parties
• language stating that architect will review submittals for design intent but not accuracy

Question 6

If another architect has been connected to the project…

Answer 6

• determine if there was a formal or informal agreement

- do not accept the work unless this agreement has been dissolved

Question 7

Project Delivery

Answer 7

entire process to a completed building - team selection, establishing contracts, method of organizing contractors

Question 8

Factors in Selecting Project Delivery

Answer 8

• firm size
• firm experience
• size of project scope
• schedule concern
• budget concern
• quality concern

Question 9

6 project delivery methods

Answer 9

• Design Bid Build
• Construction Manager as Adviser (CMa)
• Construction Manager as Constructor (CMc)
• Design Build
• Design Assist Contracting
• Integrated Project Delivery

Question 10

Design Bid Build

Answer 10

“Traditional Method”
Architect Designs, Contractor selected by competetive bid or negotiation, Contractor builds while Architect does CA. Owner Contracts with each separately

Pros: clear roles, linear process, limited coordination, straightforward relationships, price fixed at start

Cons: longer schedule because design must be complete before bidding, adversarial relationships

Question 11

Construction Manager as Adviser

Answer 11

Owner hires CM to advise on constructibility, early cost estimates, manage multiple contracts, make early material purchases, and in some cases, set a GMP.

Cons: hired before design complete, so there isn’t competetive bidding, and this is more complex structure.

B132, A132, A232, C132

Architect advises/consults with both O and CM
A and CM split CA responsibility (CM coordinates contractor activity, coordination with O/C, and changes)

Question 12

Setting Price with CMa

Answer 12

Fixed Price: C sets price upfront, O is not responsible for overruns, O does not get any savings back

Cost Plus Fee w/ GMP: O pays actual cost of building (direct and indirect) plus a set fee (profit), and CM guarantees a max price. Any savings goes back to O.

Cost Plus Fee: same as above but no GMP

Question 13

Fast Tracking

Answer 13

Construction begins before design is complete
Arch. and Eng. sets issued in phase packages
most commonly done with a CM

Pros: much faster schedule
Cons: lots of coordination and many prime agreements

Question 14

Construction Manager as Constructor

Answer 14

CM is part of construction contracting firm, Single agreement with Owner.
Phases are Pre Construction and Construction
in Pre-Con, role is same as in CMa
Price is always Cost Plus (w or w/o GMP)

CM@Risk - GMP is calculated with partially complete documents (like DD set), estimating w/o full details is risk to the CM (which is why they prefer no GMP)

B133, A133, A134, A201

Architect does Preconstruction and CA
CA begins when O accepts GMP, or O accepts control estimate or when O issues notice to proceed

Question 15

Control Estimate

Answer 15

estimate of Cost Plus Fee for work

Question 16

Design Build

Answer 16

Owner contracts with one entity for both design and construction services

 - Contractor with in house designer
 - Contractor partnering with Architect (joint venture)
 - Developer who subs out both A and C services

Owner provides design criteria
DB develops a prelim design and proposed sum
if proposal is accepted, agreement is executed

Pros: single contract, team working together for best value, contractor input early for cost savings measures, price is fixed early, total schedule usually less

Cons: owner has less control once contract is signed (Owner sets criteria, but DB then controls material quality and methods)

Reqs for Success: educated/experienced owner, clear and complete project criteria, key contractors/engineers selected early, contract allows for time and cost adjustments along the way, contract provides dispute resolutions, good communication between parties

A141, and maybe B143 or DBIA contracts

Owner provides design criteria, takes on some CA duties (submittals, changes, site visits), certifies substantial completion

Architect responsibilities are selected from list of options on the B143 form, evaluate project criteria, design based on criteria, CDs and Specs

Question 17

Bridging

Answer 17

combines DB and DBB,
A is hired as PM, taking on some of the O roles from DB
A helps develop project criteria and preliminary scope drawings for use in DB bidding
A reviews/advises on final drawings, but is not responsible

Question 18

Design Assist

Answer 18

Specialty subcontractors are included early in the design to help with complex or unique portions of the building. Takes effort - very clear scope, schedule, budget, and design requirements

Question 19

Integrated Project Delivery

Answer 19

All entities collaborate from earliest conceptualization
gets best design, more efficient, cost effective, no adversarial relationships

Key difference from DB is multiple individual contracts

Phases:
Conceptualization (Predesign)
Criteria Design (SD)
Detailed Design (DD)
Implementation Documents (CD)
Agency Review
Buyout (Bidding)
Construction (CA)
Closeout

earlier phases take longer but later phases are shorter and overall is shorter

A295 - general conditions
 - Transitional Forms (B195, A195, A295, modeled after CM forms)
OR
- Multi party agreement (C191)
OR
single purpose entity (C195)

Question 20

single purpose entity

Answer 20

independent LLC created for a specific project, complete sharing of risk and reward