Task Item No. 5-4: Assist in the development of procurement and contracting requirements. Flashcards
You Should Understand
Task Item No. 5-4: Assist in the development of procurement and contracting requirements.
- Understand Owner’s requirements for the project, and the various types of contractual relationships that are possible
- Understand appropriate location of information (Uniform Location of Subject Matter)
- Understand standardized contracts (AIA, EJCDC, ConsensusDOCs)
- Comparative analysis between Div. 01 and Div. 00 documents to eliminate conflict
- Edit Division 01 to incorporate and not duplicate information
- Understand requirements and strategy for
- Analyzing bids,
- Developing monthly payment applications and
- Administering changes during construction.
Refer to Task Item 5-2
1.14.1 Document Variations for Design-Negotiate Build Project Delivery Method
The compilation of a project manual may be the continuation of negotiations that started during early design phases. The negotiations are frequently based on outline specifications and design development documents leading to a cost of the work with a guaranteed maximum price (GMP) agreement. The project manual and other construction documents are prepared to finalize the design, obtain required permits, and obtain actual prices for the cost of the work. These construction documents might then form contract documents.
Project Manual Variations There is some significant differences in project manual preparation between a design-negotiate-build and a traditional design-bid-build delivery method. The A/E will not necessarily be theon all the items that would normally be the A/E’s responsibility. Decisions are often shared by other project team members.
Procurement Requirements With a negotiated owner-contractor agreement, the contractor might prepare the contractor’s own procurement requirements for subcontract packages.
Contracting Forms The A/E might not always participate in negotiation of the owner- contractor agreement. The A/E, however, should request a copy of the form of the owner- contractor agreement to ensure that there are no conflicts between the agreement and the
or. The A/E should inform the owner if the proposed agreement does not mention required responses to the A/E’s responsibilities.
Conditions of the Contract The conditions of the contracts are the basis of the requirements established in Division 01. The conditions of the contract should be included in the project manual to establish this basis for the requirements. Requirements for , , and, including the process for payment applications and retainage, may be covered in the owner-contractor agreement and should not be repeated in the conditions of the contract. The owner-contractor agreement should be reviewed to ensure that conflicting requirements are not included in the conditions of the contract.
1.14.1 Document Variations for Design-Negotiate Build Project Delivery Method
The compilation of a project manual may be the continuation of negotiations that started during early design phases. The negotiations are frequently based on outline specifications and design development documents leading to a cost of the work with a guaranteed maximum price (GMP) agreement. The project manual and other construction documents are prepared to finalize the design, obtain required permits, and obtain actual prices for the cost of the work. These construction documents might then form contract documents.
Project Manual Variations There is some significant differences in project manual preparation between a design-negotiate-build and a traditional design-bid-build delivery method. The A/E will not necessarily be the sole decision maker on all the items that would normally be the A/E’s responsibility. Decisions are often shared by other project team members.
Procurement Requirements With a negotiated owner-contractor agreement, the contractor might prepare the contractor’s own procurement requirements for subcontract packages.
Contracting Forms The A/E might not always participate in negotiation of the owner- contractor agreement. The A/E, however, should request a copy of the form of the owner- contractor agreement to ensure that there are no conflicts between the agreement and the
Contracting Forms - conditions of the contract or Division 01. The A/E should inform the owner if the proposed agreement does not mention required responses to the A/E’s responsibilities.
Conditions of the Contract The conditions of the contracts are the basis of the requirements established in Division 01. The conditions of the contract should be included in the project manual to establish this basis for the requirements. Requirements for Conditions of the Contract - insurance, bonds, and payments, including the process for payment applications and retainage, may be covered in the owner-contractor agreement and should not be repeated in the conditions of the contract. The owner-contractor agreement should be reviewed to ensure that conflicting requirements are not included in the conditions of the contract.
1.14.2 Document Variations for Construction Management Project Delivery
Construction management project delivery usually affects the construction documents when the construction manager is an adviser or agent. When the construction manager provides assistance during the design process, negotiates a contract, and then provides construction, the construction manager is a contractor. In either case, the nature of construction management is to provideand generally divide the project into various “packages” representing. These packages are generally competitively bid. Construction documents involving multiple-prime contracts may be released at different times and may require separate sets of documents, including a project manual and specific drawings. During the construction document stage of a construction management project delivery, the A/E may not prepare procurement documents. Themay prepare these procurement documents for each bid package, including the bid solicitation, instructions to bidders, bid forms, and supplements, as well as a summary of work for each bid package or contract.
Project Manual Variations There is some significant differences in project manual preparation between a design-negotiate-build and a traditional design-bid-build delivery method. The A/E will not necessarily be theon all the items that would normally be the A/E’s responsibility. Decisions are often shared by other project team members.
Procurement Requirements The CMa may prepare the procurement requirements for the bid packages. The process of obtaining separate bids is not significantly different from that of a traditional design-bid-build project delivery method.
Preparing procurement requirements for construction management project delivery can be an extensive process when multiple packages are involved. The A/E will be affected by how the construction manager chooses to issue bid packages. The bid form, or Section 01 12 00— Multiple Contract Summary, should indicate the scope of work for each contract.
Contracting Forms Agreement forms are usually prepared by the construction manager for each bid package.
Conditions of the Contract General conditions for construction management project delivery requireensuring cooperation between and mutual responsibility among multiprime contracts. Special versions of standard documents are available and contain provisions for the CMa to provide special services not provided in other delivery methods.
Division 01—General Requirements Division 01 requirements for CMa (multiple-prime contracts) should be prepared with specific regard for the. Special coordination is necessary for certain procedures such as,, product submittals, quality control,, warranties, and. When separate bid packages are issued, not all Division 01 sections may be necessary for each bid package. Only the sections pertaining to the particular bid package should be issued with the respective package.
1.14.2 Document Variations for Construction Management Project Delivery
Construction management project delivery usually affects the construction documents when the construction manager is an adviser or agent. When the construction manager provides assistance during the design process, negotiates a contract, and then provides construction, the construction manager is a contractor. In either case, the nature of construction management is to provide management services and generally divide the project into various “packages” representing discrete scopes of work. These packages are generally competitively bid. Construction documents involving multiple-prime contracts may be released at different times and may require separate sets of documents, including a project manual and specific drawings. During the construction document stage of a construction management project delivery, the A/E may not prepare procurement documents. The Construction Manager as Adviser (CMa) may prepare these procurement documents for each bid package, including the bid solicitation, instructions to bidders, bid forms, and supplements, as well as a summary of work for each bid package or contract.
Project Manual Variations There is some significant differences in project manual preparation between a design-negotiate-build and a traditional design-bid-build delivery method. The A/E will not necessarily be the sole decision maker on all the items that would normally be the A/E’s responsibility. Decisions are often shared by other project team members.
Procurement Requirements The CMa may prepare the procurement requirements for the bid packages. The process of obtaining separate bids is not significantly different from that of a traditional design-bid-build project delivery method.
Preparing procurement requirements for construction management project delivery can be an extensive process when multiple packages are involved. The A/E will be affected by how the construction manager chooses to issue bid packages. The bid form, or Section 01 12 00— Multiple Contract Summary, should indicate the scope of work for each contract.
Contracting Forms Agreement forms are usually prepared by the construction manager for each bid package.
Conditions of the Contract General conditions for construction management project delivery require unique provisions ensuring cooperation between and mutual responsibility among multiprime contracts. Special versions of standard documents are available and contain provisions for the CMa to provide special services not provided in other delivery methods.
Division 01—General Requirements Division 01 requirements for CMa (multiple-prime contracts) should be prepared with specific regard for the scope of each contract. Special coordination is necessary for certain procedures such as payments, progress schedules, product submittals, quality control, substitutions, warranties, and contract closeout. When separate bid packages are issued, not all Division 01 sections may be necessary for each bid package. Only the sections pertaining to the particular bid package should be issued with the respective package.
1.14.3 Document Variations for Design-Build Delivery Method
In the design-build delivery method the documentation prepared by the owner is the owner’s project requirements or project description. The owner might issue an RFP, conditions of the contract between the owner-design-builder, technical specifications (Department of Defense) or, and the(including any schematic drawings). The design-builder will respond to the RFP,, and eventually prepare the construction documents consisting of the specifications, drawings, and subsequent modifications. Themay or may not be part of thebetween the owner and the designbuilder, depending on the contract arrangements. The construction documents for a design-build project are prepared by an A/E for the design-builder. Though performed in the interest of the design-builder, the basic services provided by the A/E may be similar to those of a traditional contract.
Procurement Requirements The design-build contract between the owner and design-builder may be acontract resulting from an RFP from. This process of selecting a design-builder may have occurred during the project delivery stage of the project.
During this construction document stage, thewill prepare any necessary procurement for subcontracts, including instructions to bidders.
Contract Requirements—Agreements and Conditions of the Contract Standard agreements and conditions of the contract between the owner and the design-builder for design-build projects are available. Most standard agreements are written for two phases: the
and the. Most agreements incorporate the conditions of the contract into the form itself and therefore do not appear as separate documents.
Division 01—General Requirements The design-builder should prepare the general requirements as part of the construction documents. The Division 01 sections for a design- build project delivery are developed for the construction and might involve a contractor or various subcontractors.
1.14.3 Document Variations for Design-Build Delivery Method
In the design-build delivery method the documentation prepared by the owner is the owner’s project requirements or project description. The owner might issue an RFP, conditions of the contract between the owner-design-builder, technical specifications (Department of Defense) or performance specifications, and the design requirements (including any schematic drawings). The design-builder will respond to the RFP, negotiate an agreement, and eventually prepare the construction documents consisting of the specifications, drawings, and subsequent modifications. The construction documents may or may not be part of the contract documents between the owner and the designbuilder, depending on the contract arrangements. The construction documents for a design-build project are prepared by an A/E for the design-builder. Though performed in the interest of the design-builder, the basic services provided by the A/E may be similar to those of a traditional contract.
Procurement Requirements The design-build contract between the owner and design-builder may be a negotiated contract resulting from an RFP from an owner. This process of selecting a design-builder may have occurred during the project delivery stage of the project.
During this construction document stage, the design-builder will prepare any necessary procurement for subcontracts, including instructions to bidders.
Contract Requirements—Agreements and Conditions of the Contract Standard agreements and conditions of the contract between the owner and the design-builder for design-build projects are available. Most standard agreements are written for two phases: the preliminary design phase and the construction phase. Most agreements incorporate the conditions of the contract into the form itself and therefore do not appear as separate documents.
Division 01—General Requirements The design-builder should prepare the general requirements as part of the construction documents. The Division 01 sections for a design- build project delivery are developed for the construction and might involve a contractor or various subcontractors.
1.14.4 Document Variations for Owner-Build Project Delivery Method
1.14.4 Document Variations for Owner-Build Project Delivery Method
Construction documents prepared for the owner are those required by the nature of the project extent. A project may range from simple maintenance or rehabilitation to a complete new facility. The documents are structured similar to those of other delivery methods. A simple project may bid the same as a traditional design-bid-build delivery method or may be separated into multiple contracts similar to construction management delivery methods. An owner might even consider a simple design-build delivery method for a pre-engineered structure.
Contracting Forms The owner-contractor agreement included in a project manual might be a standard form or determined by informal negotiations. The A/E might not always participate in this process. The A/E might simply include the owner’s standard documents that have been prepared by the owner’s attorney or in-house legal department. A copy of the owner- contractor agreement form should be available to ensure there are no conflicts between the agreement and the conditions of the contract or Division 01.
Conditions of the Contract The conditions of the contract may also be standard documents that have been prepared by the owner’s attorney or in-house legal department. The conditions of the contract should appropriately reflect the primary aspect of the similar project delivery methods. This means that provision might be required to ensure coordination between multiple contracts or specific issues for purchases or services.
6.4.1 Preparation of Supplementary Conditions
Deletion or rewording of provisions in standard general conditions should be avoided. The provisions and terminology have been carefully coordinated with companion documents, and the deletion or change of requirements of a provision may affect other documents. When rewording of the general conditions is necessary to adjust for local conditions, owner’s requirements, or other legitimate reasons, advice ofis necessary to avoid conflicts with, or weakening of, unmodified statements elsewhere in the contract documents. Properly prepared contract documents agree with one another as integral parts of a whole. The documents should agree with one another in. Modifications made to one of the documents should not contradict provisions contained in the other documents. The supplementary conditions must, therefore, be carefully coordinated not only with the general conditions, but also with the other documents, including procurement requirements and the various agreements.
6.4.1 Preparation of Supplementary Conditions
Deletion or rewording of provisions in standard general conditions should be avoided. The provisions and terminology have been carefully coordinated with companion documents, and the deletion or change of requirements of a provision may affect other documents. When rewording of the general conditions is necessary to adjust for local conditions, owner’s requirements, or other legitimate reasons, advice of legal counsel is necessary to avoid conflicts with, or weakening of, unmodified statements elsewhere in the contract documents. Properly prepared contract documents agree with one another as integral parts of a whole. The documents should agree with one another in terminology and nomenclature. Modifications made to one of the documents should not contradict provisions contained in the other documents. The supplementary conditions must, therefore, be carefully coordinated not only with the general conditions, but also with the other documents, including procurement requirements and the various agreements.
7.3.1 Procurement Requirements
By definition in American Institute of Architects (AIA) and Engineers Joint Contract Documents Committee (EJCDC) general conditions, procurement requirements are not a part of the. Provisions that are stated only inare not enforceable during administration of the construction contract.
The procurement requirements should not repeatprovisions but should instead refer to the appropriate Division 01 sections, by number and title, to direct the bidder to relevant information.
7.3.1 Procurement Requirements
By definition in American Institute of Architects (AIA) and Engineers Joint Contract Documents Committee (EJCDC) general conditions, procurement requirements are not a part of the contract documents. Provisions that are stated only in procurement requirements are not enforceable during administration of the construction contract.
The procurement requirements should not repeat Division 01 provisions but should instead refer to the appropriate Division 01 sections, by number and title, to direct the bidder to relevant information.
7.3.2 Owner-Contractor Agreement
The owner-contractor agreement includes by reference all other contract documents. Certain provisions of the owner-contractor agreement are supplemented by the provisions of Division 01 sections that define in greater detail the responsibilities of the parties to the contract.
7.6 Specifying Allowances
The use of allowances requires written provisions in several of the procurement documents that must be carefully coordinated with each other. Typically, allowance requirements will appear in the procurement requirements, conditions of the contract, Division 01—General Requirements, and the individual specification sections for the items covered by the allowances. The documents must state:
- How costs will be adjusted if the actual price, quantity, or time varies from the amount stated
7.6 Specifying Allowances
The use of allowances requires written provisions in several of the procurement documents that must be carefully coordinated with each other. Typically, allowance requirements will appear in the procurement requirements, conditions of the contract, Division 01—General Requirements, and the individual specification sections for the items covered by the allowances. The documents must state:
- Exactly what is included under the allowance
- Who is to authorize items covered by allowances
- How costs will be adjusted if the actual price, quantity, or time varies from the amount stated
7.7 Specifying Alternates
Most master guide specifications and standard documents do not contain extensive provisions for alternates, as they are generally unique to each project. If alternates are to be used, special provisions must be incorporated in the documents to make them effective.
Procurement Requirements The solicitation, such as the invitation for bids, should inform bidders or proposers of the request for alternate prices.may contain guidance for preparing alternate bids or proposals and state considerations for evaluation and award of contract. Bid or proposal forms should clearly identifywith spaces for the respective prices.
Agreement and Conditions of the Contract The executed agreement must indicate, as part of the description of the work, which alternates have been selected by the owner. The contract sum must accurately reflect those decisions. Modifications ofare not normally required because alternates listed in the agreement form become part of the work.
7.7 Specifying Alternates
Most master guide specifications and standard documents do not contain extensive provisions for alternates, as they are generally unique to each project. If alternates are to be used, special provisions must be incorporated in the documents to make them effective.
Procurement Requirements The solicitation, such as the invitation for bids, should inform bidders or proposers of the request for alternate prices. Solicitation instructions may contain guidance for preparing alternate bids or proposals and state considerations for evaluation and award of contract. Bid or proposal forms should clearly identify alternates with spaces for the respective prices.
Agreement and Conditions of the Contract The executed agreement must indicate, as part of the description of the work, which alternates have been selected by the owner. The contract sum must accurately reflect those decisions. Modifications of standard general conditions are not normally required because alternates listed in the agreement form become part of the work.
7.8 Specifying Unit Prices
Whether a project is based on a stipulated sum contract with a few unit prices listed for minor variables or is based entirely on unit prices, the requirements and procedures for handling unit prices must be defined in the procurement documents. These requirements will involve the bid or proposal form along with carefully written Division 01 sections, both of which must be coordinated with the applicable sections in Divisions.
7.8 Specifying Unit Prices
Whether a project is based on a stipulated sum contract with a few unit prices listed for minor variables or is based entirely on unit prices, the requirements and procedures for handling unit prices must be defined in the procurement documents. These requirements will involve the bid or proposal form along with carefully written Division 01 sections, both of which must be coordinated with the applicable sections in Divisions 02 through 49.
7.8.1 Conditions of the Contract
Specified unit price requirements must be coordinated with statements in thein order to avoid conflicts, duplication of information, or omission of essential requirements. Most standard general conditions address unit prices. Typically, these requirements need to be expanded in Division 01.
7.8.1 Conditions of the Contract
Specified unit price requirements must be coordinated with statements in the conditions of the contract in order to avoid conflicts, duplication of information, or omission of essential requirements. Most standard general conditions address unit prices. Typically, these requirements need to be expanded in Division 01.
9.3.1 Addenda
Addenda are written or graphic instruments issued to clarify, revise, add to, or delete information in theor in previous addenda. Typically, addenda are issuedalthough the AIA Document 201 allows addenda to be issued up to the execution of the agreement.
9.3.1 Addenda
Addenda are written or graphic instruments issued to clarify, revise, add to, or delete information in the procurement documents or in previous addenda. Typically, addenda are issued before the opening of bids/proposals although the AIA Document 201 allows addenda to be issued up to the execution of the agreement.
9.3.2 Purpose
The primary purpose of addenda is to; to issue new requirements, including changes to the extent of work; andin procurement documents. Addenda are used when it is necessary to change the documents in any way. Examples include the following:
- To change date, time, or location of receipt of bids or proposals
- To add to, delete from, or revise
- To include additional qualifiedor approved
References to addenda, the method of issue, and other pertinent facts concerning addenda are included in the:
- the agreement
*
- the agreement
9.3.2 Purpose
The primary purpose of addenda is to clarify questions raised by bidders or proposers; to issue new requirements, including changes to the extent of work; and to correct errors or omissions in procurement documents. Addenda are used when it is necessary to change the documents in any way. Examples include the following:
- To change date, time, or location of receipt of bids or proposals
- To add to, delete from, or revise procurement documents
- To include additional qualified products or approved substitutions
References to addenda, the method of issue, and other pertinent facts concerning addenda are included in the:
- instructions for procurement
- the bid/proposal form
- the agreement
- the conditions of the contract
