final

profileedyron
material.pdf

Catalog

Negotiating - Updated.pdf ·················································································································································································································································· 1 Partnering.pdf ··································································································································································································································································· 16 Microsoft PowerPoint - Permits.pdf ·································································································································································································································· 29 Record Drawings.pdf ························································································································································································································································ 47 Schedules.pdf ··································································································································································································································································· 55 Terminations.pdf ······························································································································································································································································· 91 Warranties - Updated.pdf ··············································································································································································································································· 103 Change Order Management.pdf ····································································································································································································································· 123 Claims short version.pdf ················································································································································································································································· 140 Communication - Updated.pdf ········································································································································································································································ 154 Engineering Estimates.pdf ············································································································································································································································· 181

Negotiating

Virginia Regorrah

20 April 2022

First and Most Important Rule of Negotiating

Follow the Boy Scout Motto

Alternately, read Sun Tzu

“Know thy self, know thy enemy. A thousand battles, a thousand victories.”

Know Thy Self

• Understand your position • Scope of work of the change • The numbers

($, time and quantities) – how did you arrive at them?

• The issues – what are the impacts? • Have a flexible plan • Identify where your line-in-the-sand is

– Where can you give? Where can’t you?

Know…the Other Guy

• Seek to understand their position • Learn as much as you can about the

other negotiator and their firm. • What are their concerns in the

negotiation? • Anticipate their moves.

Be Prepared

• Have someone else take notes

• Use a computer

• Set the stage – negotiate where you are comfortable

• Have a plan with your team

Tips for Successful Negotiation

• Most people don’t like conflict

• Start with agreement

• Don’t get bogged down

• Ask questions and listen

• Silence is a great tactic

• It’s not always about money

• Don’t be afraid to call for a break. Or to walk out.

Many Different

Terms for Strategies

Domination

Compromise – arbitrary; a shortcut to actually negotiating

Concession – changes in positions are substantiated

Different Philosophies

Regarding Sharing of

Information

Reveal No Position

Reveal Minimum Position

Reveal Full Position

Tips for Successful Negotiation

• He who talks money first, loses…usually

• You’re not Solomon…. ”splitting the baby” is not negotiating

• This isn’t a competition – but Americans often treat it that way

Be Aware of Different Tactics • “Blow your Top”

• Ultimatum

• Gotta-catch-a-plane

• Good ole’ boy

• The Flirt

Alternate title – recognize when you’re being played

Cultural Differences

• Different cultures have different customs – and different things are important in negotiation.

• Americans get straight to business, treat negotiation like a competition…and then wonder why negotiations were not successful

• Some cultures want to spend time getting to know the other party first

• Some cultures are seeking consensus in the negotiation

Example: Thailand

• Relationships are important; personal relationships are key to conducting business

• It takes time to build relationships

• Politeness and “saving face” are important

• “Yes” does not mean acceptance or agreement

Example: Turkey• Organizations are important;

organizational hierarchy is important

• Relationships are morally based; time must be invested to establish a relationship of trust

• Consensus and tradition are important

QUESTIONS?

1

Partnering

CE 444

Contracts and Specifications

Virginia Regorrah 21 April 2021

What is Partnering?

Partnering builds goodwill and trust, encourages

open communication, and helps the parties

eliminate surprises and adversarial relationships. It

enables the parties to anticipate and resolve

problems, and avoid or minimize disputes through

development and use of Issue Resolution

processes.

What is Partnering?

Partnering is often called dispute prevention.

•Working TOGETHER instead of against each other

•A PROCESS for relationship building

•A PHILOSOPHY of teamwork and understanding the

other parties’ needs

•A COMMITMENT to cooperate and communicate

•An ATTITUDE of goodwill and trust

•SHARING RISKS with a “win-win-win” attitude

What Partnering isn’t: •Relaxing contract terms

•Circumventing the processes

•Expecting extra work for free

•An excuse for poor performance

•A cure-all

•Easy to achieve!

Key

Elements

of

Partnering

Commitment

Communications

Shared

Resolution

of Problems

Empower

Others

Timely

Issue

Resolution

Trust

Successful Project completed Safely

The ultimate goal is the same

Owner Contractor

Successful Project completed Safely

But the sub-goals are often different

Owner ContractorMinimize Cost

Timely

Completion

Maximize

Investment

Minimize

Operational

Cost

Subcontracting

Goals

Maximize

Profit

Minimize

Risk

Early

Completion

What is Partnering?

Partnering is a process of gaining trust through respect and

honesty. It is the realization that this is “our” project and that any

problems or challenges are jointly owned. It is the understanding

that what you are constructing is for the good of the community and

that they deserve your best product. It is the acknowledgement that

you are working with professionals from many fields and while they

all bring something different to the table, the end goal is the same.

Partnering is the faith you have in the other stakeholders and the

faith you keep with them.

Partnering Vocabulary

• SOLUTION vs. PROBLEM

• WE vs. YOU or THEM and US

Not Really Partnering

Vocabulary

• “In the Spirit of Partnering….”

PARTNERING

• May be Formal or Informal

• Commitment to Communication and Resolution of Issues at the Lowest Possible Level

• Does not add to the price of the Contract

• Takes two (+) willing Partners

Tuckman’s Stages of Group

Development

Langton, Nancy; Robbins, Stephen P; Organizational Behaviour : Concepts,

Controversies, Applications; Pearson Education Canada; 2006

Partnering Agenda

• Project Overview, Challenges & Concerns

• Project Vision Development

• Goal Development

• Lines of Authority

• Charter Finalization

QUESTIONS?

1

Permits CE 444

Contracts and Specifications

Virginia Regorrah 21 April 2021

Permits CE 444

Contracts and Specifications

Virginia Regorrah 21 April 2021

PermitsPermits • Contractor is generally responsible for

securing permits

• Initiated at the beginning of the project

• Must be closed out at the end of the project

• May be inspected by the permitting authority for compliance

• Permit jurisdictions include City, County, State, Tribal, Federal and specific installations

• Contractor is generally responsible for securing permits

• Initiated at the beginning of the project

• Must be closed out at the end of the project

• May be inspected by the permitting authority for compliance

• Permit jurisdictions include City, County, State, Tribal, Federal and specific installations

General Types of PermitsGeneral Types of Permits

• Building Permits

• Work Permits

• Transportation Permits

• Environmental / Cultural Permits

• Security Permits

• Building Permits

• Work Permits

• Transportation Permits

• Environmental / Cultural Permits

• Security Permits

Building Permits *depends on the jurisdiction

Building Permits *depends on the jurisdiction

• Residential Construction

• Commercial Construction

• Demolition

• Scaffolding – if a scaffold will be used

• Sign – if moving or removing building signs

• Residential Construction

• Commercial Construction

• Demolition

• Scaffolding – if a scaffold will be used

• Sign – if moving or removing building signs

Building PermitsBuilding Permits • Building (includes paving, roofing)

• Electrical

• Elevator

• Plumbing

• Mechanical / Heating

• Fire System

• Interior or Exterior Remodeling

• Building (includes paving, roofing)

• Electrical

• Elevator

• Plumbing

• Mechanical / Heating

• Fire System

• Interior or Exterior Remodeling

Transportation PermitsTransportation Permits

• Haul Route

• Street Use

• Access Driveway Permit

• Drainage Permit

• Work in Navigable Waters

• Haul Route

• Street Use

• Access Driveway Permit

• Drainage Permit

• Work in Navigable Waters

Environmental PermitsEnvironmental Permits • Water

• Air

• Noise

• Waste

• Dredged Material

• Hazardous Remediation

• Cultural and Natural Resources

• Water

• Air

• Noise

• Waste

• Dredged Material

• Hazardous Remediation

• Cultural and Natural Resources

Environmental PermitsEnvironmental Permits

• National Pollutant Discharge Elimination System/State Disposal System Construction Stormwater General Permit (NPDES/SDS) http://www.pca.state.mn.us/index.php/water/water-ty pes-and- programs/stormwater/construction-stormwater/index.h tml

• SWPPP (Stormwater Pollution Prevention Plan) is a part of the NPDES permit

• In Minnesota, the Minnesota Pollution Control Authority (MPCA) reviews/approves the SWPPP

• In North Dakota, the ND Department of Health is responsible for reviewing/approving the SWPPP

• National Pollutant Discharge Elimination System/State Disposal System Construction Stormwater General Permit (NPDES/SDS) http://www.pca.state.mn.us/index.php/water/water-ty pes-and- programs/stormwater/construction-stormwater/index.h tml

• SWPPP (Stormwater Pollution Prevention Plan) is a part of the NPDES permit

• In Minnesota, the Minnesota Pollution Control Authority (MPCA) reviews/approves the SWPPP

• In North Dakota, the ND Department of Health is responsible for reviewing/approving the SWPPP

For Federal ProjectsFor Federal Projects

• National Environmental Policy Act: • Requires Federal Agencies to integrate environmental

values into their decision-making processes. • Requires an Environmental Impact Statement (EIS) and an

Environmental Assessment (EA) • Process includes a mandatory public comment period

• National Historic Preservation Act: • Requires agency review of potential cultural or historic

significance to sites prior to beginning construction

• National Environmental Policy Act: • Requires Federal Agencies to integrate environmental

values into their decision-making processes. • Requires an Environmental Impact Statement (EIS) and an

Environmental Assessment (EA) • Process includes a mandatory public comment period

• National Historic Preservation Act: • Requires agency review of potential cultural or historic

significance to sites prior to beginning construction

For Federal ProjectsFor Federal Projects

• Endangered Species Act: • Requires a determination from USFW on whether a project

will impact Endangered Species

• Clean Water Act (Section 404): • Regulates discharge of dredged or fill materials into

wetlands • Permitting process includes a minimum 30-day public

comment period

• Clean Water Act (Section 401): • Water quality certification requirement from the State

• Endangered Species Act: • Requires a determination from USFW on whether a project

will impact Endangered Species

• Clean Water Act (Section 404): • Regulates discharge of dredged or fill materials into

wetlands • Permitting process includes a minimum 30-day public

comment period

• Clean Water Act (Section 401): • Water quality certification requirement from the State

11

Example – NHPA

12

Example – NHPA

13

Example – NHPA

14

Example – Wetlands Permitting

Wetland PermittingWetland Permitting

PermitsPermits • Identify permit requirements early

• Determine who is responsible for procuring the each permit

• Ensure permitting time is included on the schedule

• Monitor compliance

• Close -out upon project completion

• Identify permit requirements early

• Determine who is responsible for procuring the each permit

• Ensure permitting time is included on the schedule

• Monitor compliance

• Close -out upon project completion

Other Government RegulationsOther Government Regulations

• Drug -Free Workplace

• Equal Opportunity

• Wages and Overtime Compensation

• Buy American

• Payment of Taxes

• Drug -Free Workplace

• Equal Opportunity

• Wages and Overtime Compensation

• Buy American

• Payment of Taxes

QUESTIONS?QUESTIONS?

1

Record Drawings

CE 444

Contracts and Specifications

Virginia Regorrah 28 April 2021

Record Drawings

• Developed from Red-Line Drawings, also known as As-Built Drawings, or sometimes “Mark-ups”

• Record Drawings are developed from the Red Lines by the A/E

• Show the conditions as constructed

Record Drawings

• Incorporate all changes – to include Amendments, modifications, field changes, supplemental instructions

• Critical value for future work and in the event of an emergency

Red-Line Drawings • Red-Lines or As-Builts are Deliverables

required of the Contractor upon completion of the physical work

• Should be updated daily during the contract; may be included as a required item for progress payments

• Should be inspected by the A/E during site visits

Red-Line Drawings - Example

Refresher: Drawing Types

• Design Development – drawings produced during the Design Phase (conceptual, schematic, design)

• Construction Drawings – Final set of design drawings; part of contract documents, often called “For Construction Drawings” or simply “Design Drawings.”

• Shop Drawings – Used by the Contractor to illustrate fabrication or installation. Often a “deliverable” or submittal.

Refresher: Drawing Types

• As-Built Drawings – Also called “Red-Lines.” Contractor maintains a marked-up set of drawings of all the changes which occur during construction.

• Record Drawings – Produced by the A/E from the As-Built Drawings. Final Set of Drawings provided to the Customer.

Questions?

1

Schedules

CE 444

Contracts and Specifications

Virginia Regorrah 7 April 2021

What is a Schedule?

Answer: A tool to determine the

necessary activities, the sequence

and the time frame to complete the

project in an efficient and economical

manner.

Who uses Schedules?

Answer: Everyone

(Owner, Owner’s Agent, Contractor

and Stakeholders)

Why are Schedules important?

Answer:

Allows the Owner and Contractor to

monitor time, determine if a project is

on-track or behind schedule and if it

needs to be accelerated. Determines

if time is due for modifications or

“force majeure”

How do I make a project schedule?

Answer: There are 5 Steps.

1. Determine the Activities

2. Put them in sequence (order)

3. Determine the relationship

between activities

4. Determine the activity durations

5. Determine the project duration

How do I start?

Answer:

Identifying the activities involved

A Work Breakdown Structure (WBS)

is a good place to start

WORK BREAKDOWN STRUCTURE • Not so much a Schedule as a Planning method

• Breaks the project into activities by organizing the

work as a series of increasingly more detailed layers

• Portrays a logical sequence of work supporting

construction schedule preparation

• Example: • Level 1 Project

• Level 2 Sub-project

• Level 3 Sub-network

• Level 4 Activity

• Level 5 Sub-Activity

WBS Example: Building a House

Level 1House

Top Level is the “end product” – what you are constructing

WBS Example: Building a House

Level 1

Level 2

Next level are the major elements of work.

House

WBS Example: Building a House

Level 1

Level 2

House

Sitework Foundation Exterior Interior Services

WBS Example: Building a House

Level 1

Level 2

House

Sitework Foundation Exterior Interior Services

Level 3

Next level are specific items within the major elements of work.

WBS Example: Building a House

Level 1

Level 2

House

Sitework Foundation Exterior Interior Services

Level 3

Excavate

Utility

Connect.

Landscape

Concrete

Footing

Concrete

Slab

Walls

Windows

Doors

Roof

Framing

Drywall

Doors

Carpet

Electric

Plumbing

HVAC

WORK BREAKDOWN STRUCTURE

How many types of Schedules are

there?

Answer:

Depends on your source.

For this course, we’re going to talk

about 4 – Program Schedule, Bar

Chart, CPM, Network Analysis

Schedule

PROGRAM / PROJECT SCHEDULES

- Developed by the Owner or Designer

- Utilized for managing a project - Includes time for studies, design, advertisement and award

- Includes the estimated construction timeline

- May include O&M events

- Should be adjusted as changes occur

- Should be updated and maintained as construction

proceeds

Program Schedule

• Remember our second class and the Life Cycle of

Design?

Dec 2001Aug 2001 Jun 2002 Jul 11 2002 Aug 2003 Oct 2003Mar 2002

Bar Chart

- Also known as a Gantt Chart

- simple and easy

Activity

Mobilize

Clear & Grub

Strip

Excavate

Install forms

Place bedding

Compact

Install forms

Install wire

Inspect

Place concrete

Cure

Remove Forms

Week 1 Week 2 Week 3 Week 4 Week 5

Critical Path Method

- Critical Path Method (CPM)

- identifies the critical path *

- identifies time required to complete activities

- shows float time

- identifies early & late start, early & late finish

* Critical Path is the sequence of activities which takes

the longest to complete

ES

LS

D EF

LF

Activity Description

ACTIVITY

The Activity is the building block, the basic element of

a schedule

Early Start

(ES)

Early Finish

(EF)

Late Start

(LS)

Late Finish

(LF) TF

Duration (D)

Total Float

(TF)

DEFINTIONS

Duration (D): How long the activity takes

Early Start (ES): The earliest the activity can start, based on the finish of

previous, or predecessor activities

Early Finish (EF): The earliest an activity will be completed.

Late Start (LS): The latest an activity can start without delaying the

project

Late Finish (LF): The latest an activity can finish without delaying the

project

Total Float (TF): Amount of time an activity can be delayed without

affecting the project completion

Forward Pass - The process in a critical path analysis which

calculates activity early possible start and finish dates.

ES + D = EF

Backward Pass - The process in a critical path analysis which

calculates activity late allowable start and finish dates.

LF – D = LS

Calculation of Float- Determining how long an activity can be

delayed before it delays the project

LF – EF = TF = LS - ES

Critical Path – The path of activities, which if delayed, will delay

completion of the entire project

Network Analysis Schedule

- Network Analysis Schedule (NAS)

- Scheduling software

(Primavera P6, Microsoft Project)

- identifies the critical path

- identifies time required to complete activities

- shows float time

- identifies early & late start, early & late finish

- includes cost loading

- produces multiple reports

SCHEDULES REQUIRED DURING

CONSTRUCTION

- Preliminary Schedule

- activities to 90 days

- Initial Schedule

- “first look” (through completion)

- Progress Schedule

- Periodic updates

- Schedule of Values

- Shows prices associated with each event

WHEN ARE SCHEDULES

REQUIRED?

Schedules are Required:

- Within 10 days of NTP

- Upon Submission of Progress Payments

- With any requests for additional time

- Upon inclusion of additional work

- When the Contractor’s schedule has changed

- With any request for additional time

See Article 2 “Preliminary Matters”

WHAT GOES ON A SCHEDULE?

Activities:

- Features of work

- Permit submission and review time

- Submittals and Review Time

- Material ordering and delivery time

- Inspections

- Time for punchlist correction

- Project Milestones/Key Events

- Time for turn-over

The Scheduler should include those items that will

impact the project time

WHAT ELSE?

Items on a schedule:

- Duration of work

- Predecessor and Successor Events

- Start and Finish Dates

- Float

- Critical Path

- Value of work

CONTRACTOR ACTIONS

- Resourcing – ensure critical resources are properly

scheduled

- Lead Times – ensure you’ve accounted for material

lead times, shipping, submittal review

- Crew Balance – schedule crews efficiently, don’t

overwhelm your site; don’t leave too much lag

CONTRACTOR ACTIONS

- Inspections – schedule time for inspections

- Sequencing – make sure the activity sequencing

makes sense

- Restrictions – Include constraints and restrictions

OWNER ACTIONS

- Review and accept (or reject) the schedule

- Pay attention!

- Do the start/finish dates make sense?

- Do the durations make sense?

- Does the sequencing make sense?

- Withhold payments if the schedule is not acceptable

- Ensure time extensions are justified

Cost Loaded

Critical PathSubmittals

Permits

Based on a WBS

QUESTIONS?

1

Terminations

CE 444

Contracts and Specifications

Virginia Regorrah 28 April 2021

TERMINATIONS

• DEFAULT – Contractor has not performed in

accordance with the contract requirements.

• CONVENIENCE – Owner no longer requires part

or all of a project; may be a Partial Termination

• BAD FAITH BREACH OF CONTRACT –

Contractor has misrepresented his qualifications

TERMINATION CONSEQUENCES

• DEFAULT (T4D) – Contractor may owe additional

costs of re-procurement in addition to damages.

• CONVENIENCE (T4C) – Settlement value limited to

balance of contract price; no anticipatory profit is

allowed.

• BAD FAITH BREACH OF CONTRACT - No cap on

damages; Contractor may be debarred

DEFAULT PROCESS

• Letter of Concern – Identify the item(s) of concern,

remind the Contractor of the contract requirements

and tell the Contractor to correct the issue

• Cure Notice – State that the issue has not been

corrected and the Contractor now has X days to

correct (X is usually 10)

• Show Cause – Written at X+1. State that the

Contractor has not corrected the issue and ask him

to “Show Cause” why the Contract should not be

Terminated for Default

REASONS FOR DEFAULT • Failure to Perform - Did not complete by CCD

• Cannot T4D if substantially complete

• Failure to Make Progress - Endangering timely

completion of the project

• “No reasonable likelihood” of timely completion

• Failure to Comply with Specs

• No bonds/lapsed insurance

• Fraud/False Claims/Bribery/Kick-backs

• Davis-Bacon/non-payment

SURETY OPTIONS ON T4D

• TAKE OVER the project and act as the prime

contractor

• HIRE A CONTRACTOR to complete the project

• HAVE THE OWNER COMPLETE THE PROJECT by

providing them the remainder of the bond to re-solicit

• FIGHT THE T4D - Take the position the contractor was

wrongfully terminated

Grounds for Termination by the

Contractor • According to AIA Document A201, there are 3

grounds for Termination by the Contractor:

• Stoppage of work by the Owner in court action,

through no fault of the Contractor for more than 30

days

• Stoppage of work for 30 days because the architect

has not issued a certificate of payment

• Owner has not furnished evidence of financial

arrangements.

• INVENTORY – Used only for partial terminations of

construction projects; Costs chargeable to

terminated portion of contract

• TOTAL COST – Required for total T/C construction

contracts; Itemize all costs incurred up to the date of

termination

METHODS OF PAYMENT T4C

Inventory vs. Total Cost

• Work in-place.

• Costs to terminate subcontracts.

• Return/restocking costs materials.

• Termination administration / proposal preparation **

• Profit on preparations made and work done

** Different from mods where admin costs aren’t allowed

T4C COSTS

Termination for Convenience

vs

Termination for Default

Termination for Convenience does not reflect upon

the Contractor. It does not affect the Contractor’s

reputation or bonding ability.

Termination for Default is a negative action. It effects

the Contractor performance evaluation and

reputation. It can have a very negative effect on the

Contractor’s bonding capacity and ability to bid

future jobs.

• DEFAULT –

• Bad contracts don’t get better. Don’t drag the

decision out.

• Be prompt and timely with the letters! You miss the

time and you turn a T4D into a T4C

• Documentation is critically important!

• CONVENIENCE

• Documentation is critically important!

• Attention to detail and an in-depth examination of the

Contractor’s records is required

TERMINATION ADVICE

Questions?

Warranties

Virginia Regorrah

27 April 2022

Warranties

• Contract Warranty: Generally 1 year; established in General Conditions of the Contract

• Special Warranty (Express Warranty): Manufacturer’s warranty or installer’s warranty on specific items • Roof • Lighting controls • Pumps

• Implied Warranty: “Goods will be fit for the ordinary purpose for which they are normally used.”

Warranties

Contract Warranties: Established in General Conditions of the Contract:

AIA:

Article 3, section 5

Article 9, section 8.4

EJCDC:

Article 6, section 19

Federal Government:

FAR Clause 52.246-21 Warranty of Construction

52.246-21 Warranty of Construction

(a)In addition to any other warranties in this contract, the Contractor warrants, except as provided in paragraph (i) of this clause, that work performed under this contract conforms to the contract requirements and is free of any defect in equipment, material, or design furnished, or workmanship performed by the Contractor or any subcontractor or supplier at any tier.

(b) This warranty shall continue for a period of 1 year from the date of final acceptance of the work. If the Government takes possession of any part of the work before final acceptance, this warranty shall continue for a period of 1 year from the date the Government takes possession.

52.246-21 Warranty of Construction

(c) The Contractor shall remedy at the Contractor’s expense any failure to conform, or any defect. In addition, the Contractor shall remedy at the Contractor’s expense any damage to Government-owned or controlled real or personal property, when that damage is the result of –

(1)The Contractor’s failure to conform to contract requirements; or (2) Any defect of equipment, material, workmanship, or design furnished.

52.246-21 Warranty of Construction

(d) The Contractor shall restore any work damaged in fulfilling the terms and conditions of this clause. The Contractor’s warranty with respect to work repaired or replaced will run for 1 year from the date of repair or replacement.

(e) The Contracting Officer shall notify the Contractor, in writing, within a reasonable time after the discovery of any failure, defect or damage.

(f) If the Contractor fails to remedy any failure, defect or damage within a reasonable time after receipt of notice, the Government shall have the right to replace, repair or otherwise remedy the failure, defect or damage at the Contractor’s expense.

52.246-21 Warranty of Construction

(g) With respect to all warranties, express or implied, from subcontractors, manufacturers, or suppliers for work performed and materials furnished under this contract, the Contractor shall –

(1) Obtain all warranties that would be given in normal commercial practice; (2) Require all warranties to be executed, in writing, for the benefit of the Government, if directed by the Contracting Officer; and (3) Enforce all warranties for the benefit of the Government, if directed by the Contracting Officer.

(h) In the event the Contractor’s warranty under paragraph (b) of this clause has expired, the Government may bring suit at its expense to enforce a subcontractor’s, manufacturer’s, or supplier’s warranty.

52.246-21 Warranty of Construction

(i) Unless a defect is caused by the negligence of the Contractor or subcontractor or supplier at any tier, the Contractor shall not be liable for the repair of any defects of material or design furnished by the Government nor for the repair of any damage that results from any defect in Government-furnished material or design.

(j) This warranty shall not limit the Government’s rights under the Inspection and Acceptance clause of this contract with respect to latent defects, gross mistakes, or fraud.

Special Warranties –

Identified under each feature of work

Special Warranties

https://www.owenscorning.com/en-us/roofing/warranty

Special Warranties

• Contractor must provide warranties to the owner

• Points of contact must be provided

• Warranties should be included in the Operations and Maintenance Manuals

Implied Warranties

• Implied Warranties: Unwritten promise; interpreted by the Courts

• Includes 2 elements: • Warranty of Habitability: Structure will be devoid of defects that would render it

uninhabitable

• Warranty of Construction: Contractor must use a professional standard of skill in the construction process.

• “Work shall be constructed in a good and workmanship manner.”

https://trspencer.com/blog/how-implied-warranties-play-a-role-in-construction-contracts

Warranty Inspections

• Pre-Final Inspection: Before project turn-over

• Warranty Inspections: • Recommended at 4 months and 9 months • Alternative – one inspection at 11 months

• Think about – Do you retain money for warranty inspections?

When do Warranties commence?

• Contract Warranty: Upon Substantial Completion or Beneficial Occupation

• Special Warranty (Express Warranty): Upon installation

• Implied Warranty: Immediately

(j) This warranty shall not limit the Government’s

rights under the Inspection and Acceptance clause

of this contract with respect to latent defects,

gross mistakes, or fraud.

Defects

• Patent Defect – obvious, discoverable by a reasonable inspection

• Latent Defect – Hidden, concealed. Not discoverable by a reasonable inspection.

Latent Defects

In determining if a defect is latent, the court would look at factors such as:

• Was the defect known prior to Acceptance? • Was there a test that would identify the defect? • Is that test required per the contract? • Degree of difficulty and expense in conducting the

tests • Is the number and type of tests reasonable? • Availability of test facilities • Contractor assurances • Operation of equipment and the number of hours to

failure

Source: www.cohenseglias.com

Latent Defects - Examples

• Kaminer Construction v. United States • 16 undersized bolts in a 11,967 bolt structure

• Keco Industries, Inc., ASBCA 13271, 71-1 BCA ¶ 8727 (1971) • Defects in a sealed clutch assembly could only be discovered by operation beyond the 500-

hour service life

• Triple “A” Machine Shop, Inc., ASBCA 16844, 73-1 BCA ¶ 9826 (1972) • Defect only manifested after test runs were completed

Source: www.cohenseglias.com

Defects – Time Limits for Discovery

• Statute of Repose – number of years to find a defect

• Statute of Limitation – number of years to file a lawsuit after a defect has been discovered

• A contractor may be held liable for a latent defect for the life of the facility.

Defects – Time Limits for Discovery

State Statute of Repose Statute of Limitation

California – patent defect

4 years after substantial completion

1 year after discovery

California – latent defect 10 years after substantial completion

N/A

Indiana – design defect 12 years after completion

2 years after discovery

Indiana – construction defect (“all others”)

10 years after substantial completion

2 years after discovery

Minnesota 10 years after substantial completion

2 years after discovery

New York No Statute of Repose 3 years after discovery

North Dakota 10 years after substantial completion

2 years after discovery

Source: www.sdvlaw.com

QUESTIONS?

1

Change Order Management

CE 444

Contracts and Specifications

Virginia Regorrah 22 April 2020

DEFINITIONS

Modification / - Any written change in the Terms or Conditions.

Change Order after award of the contract.

Amendment / - A change to the contract while it is still in

Addenda solicitation.

Equitable - “The ultimate goal of an equitable adjustment is

Adjustment to do equity” – to compensate the Contractor for

costs incurred in the performance of additional

work.

Administrative - A unilateral change, in writing, which doesn’t

Change affect the rights of either party.

DEFINITIONS

Constructive - A change which occurs as a result of the Owner’s

Change actions or failure to act in a timely manner. The

lack of a written change order does not preclude

payment to the contractor.

Claim - Contractor’s petition to the Contracting Officer

and/or judicial courts for monetary adjustments

due to disputes and/or constructive changes.

DEFINITIONS

“In Scope” - A change which falls within the description of

Changes work in the contract. Contractor must proceed

with work, even if agreement on cost is not

reached.

“Out of - Adding materially to the work; not addressed in

Scope” the original contract documents. Must have

Changes a bilateral agreement; generally not allowed in

federal work.

Examples

SOW: The East Grand Forks Levees Phase 1 contract consists of

the following major features:

- Construction of approximately 10,000 linear feet of earth levee.

- Five pump stations.

- Three Stop-log closures

- Recreation features, including three restroom facilities, park

equipment and trails.

The PM wants to:

- Add a pump in two of the pump stations

- Change pump sizes

- Add a road closure

- Add construction of garage for the fire department

DEFINITIONS

Claim - A request for compensation

Change - An undisputed claim

Order

Dispute - A claim that cannot be resolved by parties to the

contract without assistance of an independent

third party

From Construction Specifications Institute: Construction Contract Administrative Practice Guide

ADDENDA

• Issued to clarify, revise, add to, or delete information in

procurement documents or in previous addenda

• Depending on which standardized general conditions are

used, addenda is issued:

• During solicitation, before bid opening (EJCDC)

• After bid opening, but before signing the contract (AIA)

• Addenda become part of the contract documents

• If issued during solicitation, Contractors must acknowledge

receipt

PURPOSE OF ADDENDA

• Clarify questions raised by bidders

• Issue new requirements, including changes to

extent of work

• Correct errors or omissions in contract documents

From Construction Specifications Institute:

METHOD OF MODIFICATION

AIA Document A201 • Change orders

• Negotiated Changes – require signature of Owner, A/E,

Contractor

• Construction change directive

• No agreement on pricing between the Owner and Contractor

• Becomes a Change Order after negotiation

• Requires signatures of Owner and A/E

• Architect’s Supplemental Instructions (Minor Changes to Work)

• Interpretations not involving adjustment to contract sum or time

• Requires signature of A/E only

METHOD OF MODIFICATION

EJCDC Documents

• Change order – Negotiated change, signed by Owner, A/E

and Contractor

• Work change directive – Un-negotiated directive from A/E

to Contractor; becomes change order after negotiation

• Field order – Minor variations which do not involve a

change in contract price or time; signature of the A/E

• Written interpretation or clarification – Involves non-

technical issues; requires signature by Owner and A/E

Instruments of Change

AIA EJCDC

AIA

Addenda

AIA

Architect’s

Supplemental

Instructions

Preparation of

Procurement Documents

Contract Award

Bid Opening

EJCDC

Addenda

AIA

Change

Orders

AIA

Construction

Change

Directive

EJCDC

Change

Order

EJCDC

Directive

Work

Change

Final Acceptance

EJCDC

Field Order

From Construction Specifications Institute: Construction Contract Administrative Practice Guide

MODIFICATIONS

• Identified, negotiated and issued after award

• Modifications result from:

• User Requests

• Unforeseen field conditions

• Changes in regulatory code provisions

• Changes in market conditions (if a cost

• Correction of contract documents to eliminate errors,

omissions, or discrepancies

• Requests for equitable adjustment from the Contractor

• Directed work or Constructive acceleration

• Also – errors/problems with Contract Administration

MODIFICATION PROCESS

Need for change

is recognized

ROM Estimate to

determine funding

requirement and

availability

Issue a Request

for Proposal

Prepare Estimate

Negotiate Determine

funding Prepare Proposal

Issue Change

Order

Begin Work

Increase Bond

POTENTIAL ALLOWANCES ON CHANGES

POTENTIAL ALLOWANCES ON CHANGES:

- Direct Costs

- Field Office and Home Office Overheads

- Profit

- Bond

- Impact Costs

- Shared Cost Savings

CONSTRUCTIVE SUSPENSION CAUSES

• Delay in Approving Shop Drawings

• Delay in Issuing Change

• Delay in Investigating Differing Site Conditions

• Delay in Making Site Available

• Delay in Issuing Notice to Proceed

TIME RESTRICTIONS ON REAs / CLAIMS

• AIA Article 3.7.2 CONCEALED OR UNKNOWN

CONDITIONS – 21 days from first observance

• AIA Article 15.1.2 NOTICE OF CLAIMS – Must be

initiated within 21 days of occurrence

QUESTIONS?

Claims

CE 444

Contracts and Specifications

Virginia Regorrah 28 April 2021

Claims and Disputes – EJCDC/AIA

• Successful project

• Completed on time

• Within budget

• Safely

• With all claims resolved

• Claim is request for compensation

• Change order is an undisputed claim

• Dispute is a claim that cannot be resolved by parties of

contract without intervention of independent third party

Claims – EJCDC/AIA

• Sources of Claims

• Contractor claims

• Owner claims

• Third-party claims

• Contractual provisions governing claims:

• Subcontractors, suppliers and other third party must make

claims through the prime contractor

• General conditions of the construction contract include

time constraints for filing and taking action on a claim

• Claims must include sufficient documentation for a

decision

Claims – EJCDC/AIA

• Submitting Claims:

• A/E acts as the impartial interpreter of the contract

documents

• Claims must be filed initially with the A/E

• After initial decision, a denied claim may be dropped

or moved on to disputes resolution

Owner Claims – EJCDC/AIA

• Owner may initiate a claim if:

• Owner costs have increased due to Contractor fault

• Value of work does not match the cost

• Owner claims may include:

• Defective work

• Damages to existing property

• Liquidated damages for late completion

• Ineffective management by Contractor resulting in

added costs

Contractor Claims – EJCDC/AIA

• Contractor may file a claim for the following issues:

– Interference or Direction by Owner or A/E

– Conditions beyond control of Contractor or Owner

– Unknown or concealed conditions affecting extent of

work

– Modifications made to contract documents

– Errors and omissions in contract documents

– Breach of contract (failure to pay, poor contract

administration)

Claims Processing – EJCDC/AIA

• General conditions typically state the A/E is

responsible to interpret contract documents and make

a decision involving the claim

• If either party takes exception to A/E’s decision, claim

may be

• Negotiated

• Mediated

• Arbitrated

• Litigated

Claims Processing – EJCDC/AIA

• Negotiated – between Owner and Contractor

• Mediated

• Outside 3rd Party, Single Mediator

• Both sides must agree to decision

• If a decision is agreed upon, it is legally

enforceable

Claims Processing – EJCDC/AIA

• Arbitrated

• Outside 3rd Party, Panel of Arbitrators (1 – 3

individuals)

• Decision through arbitration is legally binding

• Litigated

• Lawyers, Judge, Court, Lots of time, Lots of

money…

The Claims Process (Private)

The Claim

The Owner

Court

Arbitration

Response

30 days

30 days * (depends

on Division 01)

The Engineer

Mediation

11

The Litigation Process

• Discovery

• Interrogatories

• Depositions

• Requests for Production

• Pre-Trial Settlement Discussions

• Trial

Key Components of a Claim

Know the Contract! • Specs

• Designs

• Bid Item Schedule

• Division 01 (General Conditions)

Documentation! • Have your Reports, Emails, Submittals, Test

Reports, Meeting Notes, Records of Conversations, Correspondence

• Review them and have them handy

• DON’T EVEN THINK ABOUT DELETING THEM!!!

Key Components of Litigation (Advice for the Engineer)

Practice with the lawyer

Make sure your lawyer knows about the skeletons

Tell the Truth

(But – don’t answer more than you are asked)

Best Advice: Don’t go to Court! Can a Settlement be reached?

QUESTIONS?

Communication

Virginia Regorrah

20 April 2022

Verbal Communication

Communication: Exchange of information so the other person behaves in a manner that demonstrates understanding.

• Communication takes up 80% of your time

Words are transferred– but words can have many different meanings.

For example, the 500 most common words in construction have more than 14,000 definitions

Hammer

Hammer

Hammer

Hammer

Communication is a BIG Topic

• Verbal Communication

• Serial Letters

• Memorandums

• Phone Conversations

• Emails

• Texting

• Daily Reports (Job Diary)

• Meetings

• Presentations and Reports

• RFIs, Submittals, Schedules

Advice

• Treat ALL your communication like you will end up in Court having to explain it.

• Be professional – in tone, in grammar, in timeliness

• Remember the 4 C’s: Clear, concise, correct, complete

• All communication is official. Everything conveys your intent.

• Follow up verbal communication with written verification

What the Sender Remembers

70% OF WHAT THEY SAY 90% OF WHAT THEY SAY AND DO

What the Listener Remembers

10% OF WHAT THEY HEAR

20% OF WHAT THEY READ

30% OF WHAT THEY SEE

50% OF WHAT THEY HEAR AND SEE

Meeting Pre-Planning

What do I want to accomplish?

Who do I need there?

What do I need from each person in order to accomplish the objectives?

Have I provided a working agenda with sufficient time to review and revise?

What is the purpose? What are the specific objectives?

Are the topics identified and sequenced properly?

Meetings

• Have an agenda and a time frame

• Maintain control of the meeting

• “Pin the rose” on someone for each open item

• Practice Effective Group Leadership Skills

• Listen Attentively

• Respond Constructively to Ideas

• Match Decision-making Style to each Situation

• Solicit ideas from all members

Advice: Resumes are Communication Tools as well…..

• Research the firm / organization to which you are applying --- Tailor your resume to what they want

• BLUF: Bottom Line Up Front – your degree, registration, job experience (in reverse order – current job to oldest job

• Don’t just recite duties – identify #s, unique activities

• Get experience related to your profession

• Pare it down – high school is history.

• Check spelling

Personalities, Temperaments and Group Interactions

Personalities and Temperaments

• As Engineers, you will play many different roles

• You use different leadership and motivation strategies depending on the situation and the person

• Understanding the different ways people approach problems or deal with stress will help you manage effectively.

Group Roles

Leader Shaper

Implementer

Team Worker

Investigator

Evaluator

Finisher

http://www.skillsyouneed.com/ips/group-roles.html

Plant

Group Roles

• Leader / Coordinator –often calm, positive, charismatic

• Shaper – argumentative, provocative, impatient. Pushes the group towards decisions. Wants to remove barriers and obstacles

• Investigator – curious and flexible. Good at researching information and resources

Group Roles

• Finisher – task-oriented member. Worried about deadlines. Often not good at delegation.

• Team Worker – supports and encourages others. Works towards the good of the team, but often indecisive.

• Implementer – practical and organized. Wants to transfer discussion to results. Can often be stuck in their old ways and not open to change.

Group Roles

• Evaluator – evaluates and analyzes proposals. Not involved in discussions. Able to make logical decisions.

• Plant – intellectual, creative, individualistic. Will suggest solutions that aren’t always practical. Tends to ignore constraints.

Langton, Nancy; Robbins, Stephen P; Organizational Behaviour : Concepts, Controversies, Applications; Pearson

Education Canada; 2006

Tuckman’s Stages of Group Development

Myers-Briggs

Feeling Thinking

Myers-Briggs Preferences

• Where do you gather your energy and inspiration? • From people?

• From yourself?

• How do you gather information and how do you interpret it? • From your 5 senses?

• By interpreting patterns and reading between the lines?

Introvert

Extrovert

Sensing Intuitive

Myers-Briggs Preferences

• How do you make your decisions? • Look at the logic first?

• Look at people and circumstances first?

• How much structure do you want in your life? • Do you prefer to have a defined plan?

• Would you rather “go with the flow”?

Thinking

Feeling

Judging

Perceiving

Myers-Briggs

Architects

Other Personality Tests Keirsey Temperament Sorter

Hermann Whole Brain® Thinking

DiSC Profile

Other Personality Tests

5 Voices

https://5voices.com/

QUESTIONS?

1

Engineering Estimates

CE 444

Contracts and Specifications

Virginia Regorrah 14 April 2021

PROJECT COSTS

Owner’s Costs = Capital Cost

+

Operations and Maintenance

TYPES OF COSTS AND THE RELATED

ESTIMATE

• Capital Cost: Expenses associated with

study, design and construction of a facility

• Land acquisition

• Planning and feasibility studies

• Architectural and engineering design

• Construction, including materials, equipment and labor

• Equipment and furnishings not included in construction

• Inspection and testing

TYPES OF COSTS AND THE RELATED

ESTIMATE

• Operations and Maintenance: Life-cycle

costs of operation, maintenance, renovation

and eventually, disposal

• Land rent (or taxes, if owned)

• Operating staff

• Labor and material for maintenance and repairs

• Periodic renovations

• Insurance and taxes

• Financing costs

• Utilities

• Disposal

DEFINITIONS

• Estimate: An estimate is a calculation of

the quantities of various items of work, and

the expenses likely to be incurred

• Estimates include direct costs, indirect

costs and impact costs. Early estimates

may include contingencies to account for

unknowns.

DEFINITIONS

Contingencies: Cost allowances added to a

project cost estimate to allow for

unknowns, uncertainties or unanticipated

conditions that are not possible to evaluate

from readily available data.

Note: Beware of contingencies. They are

necessary during the initial phases of

estimating, but by award, should be

quantifiable. Do not allow contingencies

during negotiations.

Types of Estimates

• Basically:

• Screening: “Rough order of magnitude” – based on previous

projects

• Preliminary: Conceptual design – basic technologies are

identified

• Detailed: Once the Scope of Work is clearly defined and the

features of work are identified

• Engineer’s: Quantities detailed, direct and indirect costs

analyzed

Definitions from Project Management for Construction by Chris Hendrickson and Tung Au

Types of Estimates

• Specifically:

• Order of Magnitude: ~ + 20% Accuracy

• Square Foot Estimate (Cubic Yard Estimates): ~ + 15%

Accuracy

• Systems Estimate: ~ + 10% Accuracy

• Unit Price (Engineer’s Estimate): ~ + 5% Accuracy

From RS Means

ESTIMATING (From ASTM E-2516-11 Standard

Classification for Cost Estimating Classification

System)

Class of

Estimate

Degree of

Project

Definition

Use Expected Accuracy

1 0% - 2% Screening or feasibility -30% to +50%

2 1% - 15% Concept study -20% to +30%

3 10% - 40% Budget Authorization -15% to +20%

4 30% - 70% Control -10% to +15%

5 70% -100% Check estimate and bid -5% to +10%

Order of Magnitude Costs

• Expert Judgment: • Historical information combined with knowledge of present conditions.

• “A Flood Protection project of this size is between $20M - $25M”

• Analogous Estimating: • Based on an analysis of comparable projects

• “The last 3 Flood Protection projects of this type cost $20M”

• Parametric Estimating: • Based on unit measurement costs

• “Levees typically cost $3/lf; and floodwalls cost $12/lf, so this project…”

• Three Point Estimating: • Weighted average of most likely, pessimistic and optimistic costs

Types of Estimates

Identification of Need/

Challenges

Study

Design

Bidding

Construction

Warranty

LIFE CYCLE Operation

Order of Magnitude

Square Foot Estimate

Systems Estimate

Unit Price (Engineer’s Estimate)

Types of Estimates

Order of Magnitude

Square Foot Estimate

Systems Estimate Unit Price

(Engineer’s Estimate)

Accuracy

Time to develop

Hours WeeksDays

Less

Greater

ESTIMATING PROCEDURE

(Engineer’s Estimate)

ESTIMATES ARE A COMBINATION OF DIRECT

AND INDIRECT COSTS

• Direct Costs: Costs that can be applied to a

particular feature of work

• Indirect Costs: “The cost of doing business” –

these costs cannot be applied to a specific item

of work, but reflect across the entire workload.

- Job Overhead (Field Office Overhead):

Incurred on the job site

- General Overhead (Home Office Overhead or

General & Administrative): Company overhead

WHAT DO YOU NEED TO CONSIDER?

• Direct Costs • Labor

• Equipment

• Materials and Supplies

• Subcontracts

• Indirect Costs • Field Office Overhead

• Home Office Overhead

• Profit & Bond

• Productivity

• Time (Schedule)

• Impact • Change to future work

• Costs incurred due to delays

ESTIMATING PROCEDURE

1. Read the Description of Work and Determine Scope

(Understand The Extent of the Additional, Changed

and/or Affected Work)

2. Perform a Quantity Take-Off (Material Take-Off)

3. Determine crew make-up (Labor and Equipment)

4. Determine Crew Productivity - Perform Direct Cost

Estimate

5. Determine the new work’s affect on the schedule

(Conduct an Impact Analysis)

6. Include Overhead Costs

ESTIMATE EXAMPLE

1. SOW: Excavate and

install pile for the base

of a gauge well on the

upstream side of the

structure.

2. Material:

3. Crew:

DIRECT COSTS

INDIRECT COSTS

FIELD OFFICE HOME OFFICE

PROFIT

IMPACT COSTS

• Impact Costs: The affect of the change on

unchanged work.

• Reasons for Impact Costs: • Disrupt sequence of work

• Crew crowding

• Working in different seasons

Other Trades

Overhead

Supervision

Loss of Sequence

Schedule Change Congestion

CHANGE(S)

IMPACT COSTS: EXAMPLE

IMPACT COSTS: EXAMPLE

SCHEDULING

INFLUENCING PROJECT COSTS

(Alternate Title: Some simple, but

expensive lessons)

Cost, time and quality are all related:

Time Cost

Decreases

Quality

Increases

Cost

Increases

Increases

Chris Hendrickson, Department of Civil and Environmental

Engineering, Carnegie Mellon University

EXAMPLE:

The project has

been designed –

and the structural

designer realizes

that the rebar size

in the floodwall is

incorrect and he

wants to change it.

How much the

change costs

depends on when

the change is

identified.

What are your costs? How are they

different in different phases?

• If the change is identified during the solicitation

period?

• If the change is identified after the rebar has been

ordered, but has not arrived?

• If the change is identified after the rebar arrives?

Now what are your costs?

SOURCES FOR ESTIMATING

• Experience

• Estimating Guides (RS Means)

• Cost Indices

• Estimating Software

• Previous Estimates

• Other Contractors & Suppliers

• Equipment Performance Handbooks

• Project Management Guides

CAUTION!

• Experience • How much experience do you have?

• In what field?

• Estimating Guides • Regional Costs

• Beware volatility of pricing

• Based on ideal work conditions

• Estimating Software • “GIGO” – How current is the data?

• What is the data based on?

CAUTION!

• Previous Estimates • When were they completed?

• How meticulous was the Estimator?

• Other Contractors & Suppliers • Are discounts being applied?

• Are you getting a good price?

• Equipment Performance Handbooks • Based on ideal conditions

• Does not take operator experience into account

• Project Management Guides • Generic data

• Based on ideal situations

QUESTIONS?

  • Negotiating - Updated.pdf
  • Partnering.pdf
  • Microsoft PowerPoint - Permits.pdf
  • Record Drawings.pdf
  • Schedules.pdf
  • Terminations.pdf
  • Warranties - Updated.pdf
  • Change Order Management.pdf
  • Claims short version.pdf
  • Communication - Updated.pdf
  • Engineering Estimates.pdf