Shell 3 - Delivery of Services

Question 1

What aspects must the architect consider when deciding whether to accept a project?

Answer 1

• The firm’s current workload
• Does the project match the type work the firm is qualified to do (talent and experience)
• Does the project match the type of work the firm wants to do (business plan)
• Overall feasibility of the project
• Whether the client’s budget can cover construction, the architect’s fees, other fees, and contingency
• The abilities and history of the client

Question 2

What options does the architect have if the client’ budget doesn’t seem to be enough to cover all project costs AND the architectural fees?

Answer 2

• Accept the project know there will be a lower margin of profit (if the project offers other benefits, like experience in a new field)
• Negotiate to lower the scope of work or scope of architectural services
• Decline to accept the project

Question 3

What can the architect do to background check the client?

Answer 3

• Search them on the internet
• Reviewing trade journals in the client’s line of business
• Do a credit check
• Contact other professions who have worked for the client
• Talk with the client’s current or past associates (partners, vendors, customers, ETC)

Question 4

What potential “red flags” should the architect look for when deciding whether to accept a project proposed by a potential client?

Answer 4

• The client has little or no experience in the type of project they are proposing
• The client wants to use a non-standard contract
• The client is using a bidding process to select an architect
• The client has a history of litigation / disputes with service providers
• The client show unrealistic expectations in early meetings (such as regarding budget and schedule)
• The client seems fixated on certain specific products of design solutions

Question 5

What are the main aspects of an initial project agreement?

Answer 5

• First step after the architect decides to accept the project.
• A simpler document (can be a letter or memo) that outlines the scope of services and required fees
• May also outline project schedule or include an initial design
• Used as an initial understanding while the actual contract is being negotiated
• Can be used as a temporary owner-architect agreement while the project’s feasibility is being investigated

Question 6

What four factors should be considered when selecting a project delivery method?

Answer 6

COST
Not only how much the owner is willing to spend, but also what amount of variation in final price or risk the owner is willing to take. Some Delivery Methods carry more or less risk of price increase.
SCHEDULE
Fast completion is driven by cost of financing the project, desired move-in date, and/or wanting the project to start generating income. Certain Delivery Methods offer “fast-track” completion.
SCOPE
Certain Delivery Methods are more suited to projects of large and complex scope, or projects with more initial unknowns.
QUALITY
Certain Delivery Methods are more suited to a lower-quality, lower-cost building, and vice versa.
EXPERIENCE
For projects that are very complex, that have unusual situations / requirements, or that are slightly outside the “comfort zone” of the architect or owner, a Delivery Method where a constructor or adviser with special experience is part of the project delivery may be better.

Question 7

What are the six general types of project Delivery Methods?

Answer 7

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

Question 8

What are the main aspects and benefits / drawbacks of Design-Bid-Build?

Answer 8

• Also sometimes called “Design-Award-Build”
• Owner has separate contracts with the Architect and the Contractor
• Generally a simpler Delivery Method: roles are clearly defines, projects progresses linearly, price is fixed (though ‘cost’ is not)
• Often slower because design must be completed before construction can begin
• Contractor can be selected by open bidding process or by negotiating with a single / few contractor(s)
• Most successful when the project is thoroughly detailed and spec’d before bidding.
• Often sets up an adversarial relationship between contractor and owner over pricing
• Contractor may try to use errors/omissions in the drawings to make up money later in the project through change orders. Might fall on the architect to pay.
• Risk of the contractor underestimating the cost in an effort to bid a lower price

Question 9

What are the main aspects and benefits / drawbacks of Construction Manager as Adviser?

Answer 9

• The CMa can either be a contractor or a third party who acts as the Owner’s agent and is not constructing the project
• Architect and each constructor under separate contract
• The CMa:
• • Advises on project feasibility
• • Early cost estimating and value analysis
• • Develops project schedule
• • Assists with contract negotiation
• • Manages multiple construction contracts
• • Makes early material perchases
• In some contracts, the CMa can guarantees a project cost and/or completion date
• Sometimes increases project cost because CM is hired before design is complete, without competitive bidding.
• Management structure is more complicated
• Architect’s CA responsibilities are similar to other Delivery Methods, but Architect AND CMa both perform CA services jointly.
• Architect must report issues / deviations to BOTH the CM and the Owner
• CM coordinates activities of contractors and prepares change orders
• The CM must keep the Architect informed about contractor activities and issues / changes
• The Architect’s decisions on aesthetic are final, if they are consistent with the contract documents

Question 10

What are the three methods of determining project price with a CM?

Answer 10

FIXED PRICE
- Also called “Stipulated Sum” or “Lump Sum”
- The final cost is guaranteed to the Owner, but the Owner does not share in any savings made by the contractor
COST-PLUS-FEE w/ GMP
- Owner pays the actual cost of the project plus a stated CM fee
- CM guarantees a maximum project cost
- Sometimes also called CM@R (Construction Manager At Risk) method
COST-PLUS-FEE w/out GMP
- Same, but CM does not guarantee a maximum cost

Question 11

What is the Fast-Track method for delivering a project with a CM?

Answer 11

• Can technically be used with any Delivery Method, is recommended only for CM project
• Construction begins before the design is complete. design drawings come out in stages (“Bid Packages”)
• Owner or CM has multiple prime contracts for each stage of construction
• Faster completion time and often lower total project cost.
• Involves a great deal more coordination by the management team

Question 12

What are the main aspects and benefits / drawbacks of CMc?

Answer 12

• CMc acts as the owner’s agent but is part of the company that is constructing the project
• CM rservices fall into “pre-construction” and “construction” phases
• Pre-construction phase services are the same as CMa
• OFFICIALLY, there is no “stipulated sum” pricing option, only cost + fee w/ and w/out GMP
• CA services of CMc are same as those between CMa and Architect
• Architect’s responsibilities start when: owner accepts CMc’s GMP -or- owner approves CMc’s control estimate -or- owner issues notice to proceed to CMc

Question 13

Define: Control Estimate

Answer 13

In a CM (CMc) Delivery Method, is sum of the cost of work plus the CM’s fee. Is prepared by the CM and should include a list of drawings / spec’s used to generate the estimate.

Question 14

What are the main aspects and benefits / drawbacks of the Design Build Delivery Method?

Answer 14

• Owner contracts to one entity to deliver the project who then sub-contracts to the rest of the necessary parties
• It is possible that this entity is a joint venture between a contractor and designer
• Design-builder provides an initial design and a proposed contract sum before agreement is executed
• Local and State laws may limit the use of design-build on public projects
• Coordination and tracking responsibilities is generally more efficient
• Increased early collaboration between the designer and the constructor can avoid issues and added costs later
• The Owner gets a proposed cost earlier in the process
• The total price and total time of the project is general lower than other Delivery Methods
• The Owner is responsible for developing and maintaining the project’s performance requirements
• The Owner may hire a consultant with construction experience to act as client rep’ and help ensure the quality of the project
• Better choice for Owners who have more building experience.
• Owner has somewhat less control over the design and construction.
• There may be disagreement down the road between Owner and Design-Builder on what should have been included in the scope of work
• Constructor has more freedom to use lower-quality methods / materials in order to save money
• The Design- Build Institute of America also offers a series of more party-neutral contracts
• The contract sum can be determined by a stipulated sum, cost of work + fee, or cost + fee with GMP

Question 15

In Design-Build, what is the breakdown of responsibilities between parties?

Answer 15

OWNER
- Provide project criteria and performance standards for the building
- Reviewing submittals and performing site visits
- Certifying Substantial Completion
ARCHITECT
- Depends on whether the Architect is a sub-contractor and part of the Design-Build entity
- Can include evaluation of the Owner’s criteria & standards

Question 16

What are the applicable AIA documents for Design-Build?

Answer 16

• A141: Agreement Between Owner and Design-Builder
• A143: Standard Form of Agreement Between Design-Builder and Architect (if the Architect is a sub-contractor)
• G744: Certificate of Substantial Completion for a Design-Build Project (completed by the Owner)

Question 17

What are the applicable AIA documents for Construction Manager as Constructor?

Answer 17

• A133: SFoA Between Owner and Construction Manager as Constructor Where the Basis of Payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price
• A134: SFoA Between Owner and Construction Manager as Constructor Where the Basis of Payment is the Cost of the Work Plus a Free without a Guarantee Maximum Price
• B133: SFoA Between Owner and Architect, Construction Manager as Constructor Edition
• A201: General Conditions of the Contract for Construction

Question 18

What are the applicable AIA documents for Construction Manager as Adviser?

Answer 18

• A132: SFoA Between Owner and Contractor, Construction Manager as Adviser Edition
• B132: SFoA Between Owner and Architect, Construction Manager as Adviser Edition
• C132: SFoA Between Owner and Construction Manager as Adviser
• A232: General Conditions of the Contractor for Construction, Construction Manager as Adviser Edition

Question 19

What are the main aspects of the Bridging variation of Design-Build?

Answer 19

• Essentially the same as Design-Build, except the owner hires a designer (architect or engineer) separately to help develop project criteria and standards
• This designer is called AE or Criteria Architect
• The AE create an initial design, specs, and standards, and obtains needed initial approvals
• The Owner then bids the project to Desin-Build firms
• The Design-Builder’s Architect then takes over, making CDs and obtaining a building permit
• The AE reviews these documents on behalf of the Owner and might assist with the Owner’s CA responsibilities
• The AE has no legal responsibility for the building, except what is spell out in the agreement with the Owner

Question 20

What are the main aspects of Design-Assist Contracting?

Answer 20

• Not really it’s own Delivery Method, but more like a modification.
• Sub-contractors and trains are included early in the design processes
• Some vendors may be better suited to help develop early design of unique systems or projects with complex requirements
• This method require extra effort to make work
• The Owner must have a clear scope of work, budget, and schedule
• The Architect must work closely with these vendors to develop the design

Question 21

What are the main aspects of Integrated Project Delivery?

Answer 21

• All parties are chosen at the beginning and work collaboratively
• Tries to eliminate the adversarial nature of relationship between vendors and designers / owner
• Owner usually has multiple agreements with the separate design and construction entities
• Often depends heavily on BIM and other technology for efficient coordination
• Nominal phases are: conceptualization, criteria design, implementation documents, agency review, buyout, construction, and closeout.
• Often faster and cheaper than other Delivery Methods, since more design efforts occurs earlier, when there is more potential to effect the outcome of the building
• Early stages usually take longer than usual due to the amount of early coordination, but later stages tend to go faster

Question 22

What AIA documents are applicable to Integrated Project Delviery?

Answer 22

• A295 : General Conditions of the Contract for Integrated Project Delivery
• A195 : SFoA Between Owner and Contractor for Integrated Project Delivery
• B194 : SFoA Between Owner and Architect for Integrated Project Delivery
• C191 : Standard Form Multi-Party Agreement for Integrated Project Deivery
• C195 : Standard Form Single Purpose Entity Agreement for Integrated Project Delivery

Question 23

What are the three ways to establish contractual relationships in Integrated Project Delivery?

Answer 23

Transitional Forms
- Uses AIA forms A195 and B195
- Modeled after the CM agreements
Mutli-Part Agreements
- Uses AIA form C191
- All parties sign the same agreement, which sets up collaborative relationship and encourages every to meet cost, schedule, and performance goals.
- Sets up a “Project Management Team” to run the project and a “Project Executive Team” for oversight, each with one member from each party
Single Purpose Entities
- An independent limited liability company created for the sole purpose of planning,designing, and constructing a project
- Uses AIA C195
- Allows for equitable sharing of all risks and rewards

Question 24

What is each AIA document series for?

Answer 24

A - agreements: owner-contractor (or architect-contractor)
B - agreements: owner-architect
C - agreements: other types
D - miscellaneous documents
E - exhibits
G - contract administration forms