Construction Phase Services PDF

10.9 Construction Phase Ser vices James B. Atkins, FAIA Construction phase services involve the architect’s evaluation and reporting of the progress and quality of the work and its conformance to the design intent expressed in the contract documents. Delivery of these services requires knowledge and...

10.9 Construction Phase Ser vices James B. Atkins, FAIA Construction phase services involve the architect’s evaluation and reporting of the progress and quality of the work and its conformance to the design intent expressed in the contract documents. Delivery of these services requires knowledge and control of the project scope and access to the work in progress. Architecture starts when you carefully put two bricks together. There it begins. —Ludwig Mies van der Rohe If AIA parameters are followed and architects actively participate in CA, there is a greater chance of lowering risks while achieving design goals. P ROA CT I VE C ON TRAC T ADMIN IS TRATI O N Architects control the degree of their involvement during construction based on assessment of project needs. Since the AIA documents require the architect to visit the site at intervals appropriate to the stage of construction, the architect must determine the number and frequency of site visits, unless the services contract requires otherwise. This is consistent with the standard of care, the measure by which design professionals are judged under the law. If the project is small, if the owner has its own administrative staff, or if the contractor is aggressive and largely controls the administrative processes and documents, it is easy to rationalize that the project requires less interaction and thus a more passive administrative effort may be appropriate. This approach may be successful when the team members are good friends or if the project is a prototype and is being constructed repeatedly, but under most circumstances the project and the architect will be better served with proactive involvement. B E N E F ITS O F P RO A CTIVE C A Proactive CA can produce greater value for the owner and contractor as well as the architect, and it can include the following benefits: • Promotes a “trusted advisor” relationship with the owner • Increased influence on work acceptability through active participation in problem and conflict resolution • Increased design control through input on owner- or contractor-proposed scope changes • Opportunities to correct errors or omissions in the contract documents before the work is completed, reducing risk • Fewer chances for owner-accepted nonconforming work James B. Atkins provides project management and litigation support services. As a senior principal in an international design firm for over 30 years, he was responsible for construction phase services supporting the delivery of over $20 billion of construction. 10.9 Construction Phase Services 713 PA R T 3 : P R O J E C T D E L I V E R Y T he construction phase is the physical realization of the architect’s design. At this point the project scope has been fixed with the publication of the contract documents, the contractor has been selected and placed under contract, and any further design ideas or scope changes will likely cost additional money. The primary objective from this time forward is to deliver contract administration (CA) services and work with the contractor toward providing the owner with a successful project that substantially conforms to the design concept. The need for CA services has evolved during the past half century from a passive “Call me if you need me,” to a more interactive monitoring, review, and decisionmaking process. With routine bombardment of value analysis, also known as value engineering (VE), substitutions, product availability challenges, increased variations in workmanship quality, and more new untested products, the architect’s need to monitor the design is greater than ever. Moreover, at least 17 states currently require registered architect involvement during construction for projects that require a professional seal. Another compelling reason to stay involved through project completion is because almost all claims against design professionals arise during the construction phase. If AIA parameters are followed and architects actively participate in CA, there is a greater chance of lowering risks while achieving design goals. Accomplishing Proactive CA Proactive contract administration begins when the project commission is received, and it is more easily achieved through the following: PA R T 3 : P R O J E C T D E L I V E R Y • Prior to executing the services agreement, help the owner understand the importance and benefits of having the architect-of-record perform construction phase services. • Include full construction phase services in the owner-architect agreement. • Take an active role in the administrative processes. • Attend all owner project meetings. • Update the owner appropriately. • Be responsive. • Maintain good relationships. Seventeen states currently require that a registered architect provide CA services on projects with a registered professional’s seal. The need for a registered architect providing construction phase services has been acknowledged and is currently required by law in 17 states, and other states are considering adoption. Therefore, it is likely that another architect will be providing CA services on a project if the design architect does not. Proactive contract administration involvement in a project provides many benefits and makes it easier for the architect to fulfill key contractual responsibilities during the construction phase. Even the most complex and difficult projects run more smoothly when a good relationship exists among project team members. When all team members work to the benefit of each other, disputes are reduced and problems are solved more easily and quickly. The architect should approach the construction phase with this in mind. PREPARIN G FO R TH E C O N S TR U C TI O N P H A S E The architect’s CA services are typically determined before the owner-architect agreement is executed, and the agreement reflects the specific services agreed upon. However, at this point in the project the owner may not yet have decided on the type of project delivery, and before construction begins it is advisable to confirm that the contracted CA services are appropriate. If the owner does not understand the services required and does not have retained or in-house experienced owner representation, it may be beneficial to meet and review contracted services and any related construction phase services the owner may need. Project Deliver y Determines CA Ser vices CA services required for a particular project delivery method can be determined by reviewing the AIA documents provided for that purpose. 714 Project delivery options such as design-build, construction manager as adviser (CMa), and integrated project delivery (IPD) require construction phase services that differ from the traditional model. For example, in contractor-led design-build, the architect works for the contractor and does not determine substantial completion. AIA Document G704DBTM–2004, Acknowledgment of Substantial Completion of a Design-Build Project, is a form of owner’s certificate of substantial completion because, according to the document’s instructions, “the project owner assumes many of the CA duties performed by the architect in a traditional project.” In the AIA CMa documents, the construction manager–adviser shares position with the architect on the project, and AIA Document G732TM–2009, Application and Certificate for Payment, Construction Manager as Adviser Edition, anticipates that the architect and the construction manager-adviser may certify a different amount than that applied for, with each initializing the figures that have been changed and providing explanation(s) accordingly. Consequently, when administering a project under a delivery option that departs from the traditional design-bid-build, one must follow the AIA documents to determine the construction administration services required for that particular delivery model. Design Project Management Confirm CA Ser vices The contract administration services described in this article are based on a design-bid-build (DBB) project delivery. While basic contract administration services can be applied in some way to all projects, specific services and applications will vary depending on the delivery model. In preparation for the construction phase, it is good to review contracted CA services with the owner to be sure that expectations align. The architect’s construction phase services are typically described in these documents: • • • • Owner-Architect Agreement General Conditions Supplementary General Conditions Specifications Division 1 A IA D O CU M E N TS F O R P LA N N I N G P RO JE CT D E LIVE RY The AIA provides documents that can assist in gathering information and organizing project delivery. AIA Document G612TM–2001 Owner’s Instructions to the Architect Regarding the Construction Contract, Insurance and Bonds, and Bidding Procedures is a questionnaire used to obtain information from the owner necessary to arrive at a construction contract through the bidding process. It is a three-part document, and Parts A, which relates to contracts, and B, which relates to bonds, should be completed with the owner as early as possible in the project. Part C, which relates to bidding procedures, should be completed with the owner prior to the completion of the construction documents. If the contractor is to be selected through negotiation only, Part C need not be completed. Provided that this document has been completed, essential information related to the construction phase can be found: type of construction contract, general conditions to be used, requirements for payment retainage, and construction start and completion dates. This document will greatly aid in planning and ▶ Owner-Generated Agreements scheduling construction phase services. (17.3) discusses systematic AIA Document D200TM–1995, Project aChecklist is a approach to necessary evaluatingtoterms checklist that identifies tasks and data fulfillin agreements byas owners. assigned project responsibilities. It canprovided also serve a permanent record of owner, contractor, and architect decisions. Parts 1 through 5 relate to the architect’s services through completion of the construction documents. Part 6 of the document relates to bidding or negotiation, Part 7 relates to construction contract administration, and Part 8 relates to post-construction services. Part 7 can be used initially to plan construction phase duties and activities, and later as a checklist as the actions and events are completed. If the owner has a different understanding of the contracted CA services, or if an owner’s representative is involved with conflicting tasks, resolve the issue through discussion. This is a good opportunity to help the owner understand the purpose and benefits of the architect’s CA services. Should the meeting result in a change to contracted services, an amendment to the agreement will be required. A few issues worthy of discussion that may affect the services fee are: • • • • ▶ Owner-Generated Agreements (17.3) discusses a systematic approach to evaluating terms in agreements provided by owners. Number of shop drawing reviews per submittal Submittal schedule (check to be sure it is included) Extensive punch list requirements Extensive site visits Confirm Construction Agreement Architects must have a copy of the owner-contractor agreement and its general conditions in order to provide CA services, since they cannot administer a contract unless they know what it requires. Best practice is to obtain an executed copy of the agreement and its general conditions and check for conflicting requirements that could prohibit provision of the architect’s contracted services. When the architect is retained on a project, the current edition of AIA Document A201TM–2007 is typically referenced in the owner-architect agreement. However, ▶ See Construction Contracts (17.4) for further discussion of the construction agreement, general conditions, and other parts of the construction contract. 10.9 Construction Phase Services 715 PA R T 3 : P R O J E C T D E L I V E R Y It is an exciting time for architects as the bright line of traditional CA progressively blurs into integrated project delivery. Activities such as submittal review that have already diminished with design-build will disappear altogether as specific products are selected before the documents are completed and manufacturer-provided detail files are integrated into the building model. Other activities, such as determination of work conformance, will likely continue as long as registered architects design projects, but this may ultimately be accomplished without going to the site as technology continues to enable. Although this article addresses contract administration from the traditional design-bid-build application, developing changes in emerging project delivery practices will be addressed along the way. Please be aware that since all projects vary, actual contracted project conditions may not be specifically addressed. when the contractor is retained, differing general conditions may be negotiated. This is more likely to occur if the contractor is retained first or if the architect is not involved with construction procurement. If AIA documents are used, services are more likely to be consistent throughout. If the contractor’s negotiated general conditions differ from AIA Document A201TM–2007, determine if the differences will affect the architect’s contracted services or if there are conditions that are detrimental to the owner and/or not in accordance with good construction practice. If conflicting or prohibitive differences are found, meet and resolve the differences with an appropriate amendment to the agreements as required. Examples of significant variations from the AIA General Conditions that could affect the architect’s ability to provide CA services include: PA R T 3 : P R O J E C T D E L I V E R Y • • • • An executed copy of the ownercontractor agreement is required for the architect to determine which CA services are appropriate for the project. Unreasonably short submittal review time Change order execution without the architect’s approval Excessive site visit requirements Deletion of submittal review Some owners are reluctant to provide the architect with a copy of the ownerarchitect agreement because they do not understand that the specific duties of an architect when administering a construction contract are determined by how the construction is contracted. Should attempts to help the owner understand this fail, and a copy of the contract cannot be obtained, inform the owner that the most relevant AIA agreement documents will govern the architect’s services until the executed agreement is provided. This will assist in protecting the architect from errors or omissions in CA services. Information Management The exchange of information is the administrative vehicle for project delivery. The exchange of information is the administrative vehicle for project delivery. The owner, architect, and contractor engage in an elaborate and complex exchange of information that involves a building program, design illustrations, construction documents, planning information, technical interpretations, financial supporting data, and ultimately acceptance and approval notices, to name only a few of the documents exchanged. The speed and efficiency of the exchange directly affects the efficiency of project delivery. Since construction is the physical manifestation of the project, information required by the contractor often takes precedence. However, the information required by the owner and architect is no less critical or important. If the architect does not receive sufficient information from the contractor on the work completed, sufficient information on payment certification cannot be given to the owner, and sufficient information by the owner for the transfer of money to the contractor cannot be provided. Project Requests for Information ▶ Information Management and Services (5.12) addresses information management practices and technology-based services. 716 Perceived delays or failures in the transfer of information in the past has generated a tracking document descriptively called the request for information (RFI), designated as AIA Document G716TM–2004. It originated in the 1970s to document the architect’s answers and response time to questions from the contractor. The RFI is also useful for tracking the information provided by the contractor, such as the submittal schedule, the construction schedule, the list of subcontractors, and contractor change pricing, to name a few. Since information is required from all parties during construction, the owner, architect, and contractor can all use AIA Document G716TM–2004 to document the exchange of information. Since the exchange of RFI information is often time-sensitive and can carry a higher risk, documentation of processing time and activities is advised. A variety of data management software is available for this purpose. Design Project Management Team Assignments In a larger office, some team members may be reassigned after document preparation has been completed. An in-house meeting is appropriate to review construction phase roles and responsibilities, as well as such other relevant issues as: • • • • • • • • • Construction phase team assignments Atypical (non-AIA) contract conditions Unique project design features Delivery challenges such as fast-track and CM involvement Designated in-house submittal reviewers RFI routing and responses VE substitution processing Special labor requirements for document changes and project reviews In-house filing and document storage Consultants Preconstruction Conference The preconstruction conference is perhaps the most important meeting during the construction phase, and preparing for the meeting is as important as the meeting itself. Since the essential administrative processes during construction—change order preparation and processing, submittal approval, determination of work conformance, and payment certifications—are controlled by the architect, it is advantageous that the architect conduct the meeting. Preparation for the meeting should include advance distribution of the proposed meeting agenda to allow participants to have input on discussion topics. (See sidebar for a sample preconstruction conference agenda.) It is also a good time to confirm that the contractor will be providing up front required information such as the name of the superintendent with work qualifications, list of subcontractors, the construction schedule with coordinated submittal schedule, schedule of values for payment applications, insurance bonds and permits as required, and any other information requiring review prior to the start of construction. The communications protocols are established in the preconstruction conference. See Figure 10.27 for the communications protocol during construction. Proper communications are essential in order to avoid miscommunications and unauthorized directives. PA R T 3 : P R O J E C T D E L I V E R Y It is important that architects and consultants understand and agree on construction phase responsibilities. This should have been resolved at the time the consultants were retained, but it is a good idea to confirm required services before the start of construction. Issues such as site visits, site observation reporting and report format, meetings and meeting reports, project communication protocols, submittal procedures, and payment certification requirements are among topics to discuss. If consultants are contracted directly with the owner, services P RE CO N S TRU CTIO N CO N F E RE N C E and processes may vary significantly. It is important to meet AGENDA and work out all of the details prior to start of construction. Should the consultant be contracted under a non-AIA I. Introductions agreement form, it may be necessary to amend the agreeA. Communications/contact information ment to accommodate appropriate CA services. II. Project start-up requirements A. List of subcontractors and material suppliers B. Schedule of values C. Construction schedule D. Submittal schedule E. Site usage/access F. Quality control III. Bonds and insurance A. Bonding B. Insurance IV. Project procedures A. Shop drawings, product data, and samples B. Payment applications C. Changes in the work D. Requests for information E. Time extensions F. Closeout requirements V. Site observations A. Scheduled visits B. Reporting C. Nonconforming work VI. Miscellaneous items A. Separate contracts by owners B. Partial occupancy C. Field office D. Project sign or banner E. Owner requirement for certifications F. Other 10.9 Construction Phase Services 717 Owner to Contractor - Through the Architect Owner Consultants Owner Contractor to Owner Consultant - Direct only for coordination with Architect Architect to Owner Consultant - Direct only for coordination with Consultants Architect to Subcontractors - Through the Contractor Contractor Owner & Contractor to Consultants - Through the Architect Subcontractors AIA Prescribed Construction Communications Protocol Key: Direct Indirect Coordination Only James B. Atkins PA R T 3 : P R O J E C T D E L I V E R Y FIGURE 10.27 Construction Communications Protocol It is important that all project team members understand the lines of authority for administering the construction phase processes and contract requirements. This can be facilitated by a project authority matrix, as shown in Table 10.13. Notice to Proceed The Notice to Proceed letter can be sent by the architect on behalf of the owner and at the owner’s directive. Construction typically starts with the notice to proceed, which is an owner’s authorization typically given in letter format. It can be sent by the architect on behalf of the owner at the owner’s directive, and it should include the requirements for completion as stated in the owner-contractor agreement. See sidebar for a sample Notice to Proceed letter. The architect does not have the authority to direct the work to proceed. TABLE 10.13 Project Authority Matrix (per AIA Document A201TM–2007) Items to Be Approved Owner Architect Construction change directives ✓ ✓ Change orders ✓ ✓ ✓ Work conformance ✓ ✓ ✓ Nonconforming work ✓ Project completion schedule ✓ ✓ Project submittal schedule ✓ ✓ Submittals ✓ ✓ ✓ Applications for payment ✓ Certificates for payment Special testing ✓ ✓ Minor no-cost changes Substitutions ✓ ✓* Substantial completion ✓ Final completion ✓ Note: ✓* Owner may accept substitutions that architect rejects. 718 Contractor Design Project Management S AM PL E N OT ICE T O PROC E E D LE TTE R A B LE A RCHITE CTS Mr. Max Velocity Broadway Builders 7139 Corinth Street Surfside, Colorado 80956 Developers dated April 15, 2013, you have agreed to complete the contract as stated below. Contract amount: $24,556,811 Construction time: 385 calendar days Project name: Vesey Village Commencement date: (insert date) Project number: 97006 Substantial completion date: (insert date) RE: OWNER’S NOTICE TO PROCEED Dear Mr. Velocity: The owners, Swansong Developers, have directed me to send this NOTICE TO PROCEED on the referenced project. You are hereby authorized by the owner to proceed with the work of your contract for the construction of Vesey Village. In accordance with your contract with Swansong Please confirm in writing the date you have commenced construction. Best Regards, Chris Wren Chris Wren, AIA Principal cc: John Sawyer, Swansong Developers PA R T 3 : P R O J E C T D E L I V E R Y A D M I N I ST RATION OF TH E C ON S TRU C TI O N C O N TR A C T The architect’s services during construction are prescribed in the owner-architect agreement. The architect should perform all of the construction phase services required in the agreement unless the owner waives specific services. If owner-waived services are necessary to meet the architect’s standard of care, advise the owner in writing and provide the services. If the services are not required to meet the standard of care, the owner directive should be documented in writing, indicating the date given and the specific services waived. A review of the architect’s contract administration (CA) contracted services is required in order to determine which specific services are necessary. If doubts arise, consult your professional liability insurance agent for assistance. Project documentation should support that all the CA services required by the contract have been provided unless otherwise waived. File all reports and respond to all administrative communications so that the full delivery of services cannot be questioned. See Table 10.14 for the architect’s tasks required by each project activity, along with the documents that are produced. Site Visits and Obser vations The purpose of site visits is to observe the progress and quality of the work, determine its conformance to the design, and report findings to the owner. AIA Document A201TM–2007, General Conditions of the Contract for Construction, is clear on this charge, and agreeing to more stringent requirements in the services agreement can increase risks and affect insurability. Use caution and seek appropriate counsel when agreeing to wording other than that prescribed in the AIA documents. The number of visits provided is typically up to the architect in his or her determination of the “intervals appropriate to the stage of construction.” If the contractor is not adequately managing the work, they often request the architect be on site more often to address unanticipated “discoveries.” Also, owners may feel that more frequent observations by the architect will be more beneficial. Explain to the owner that increased site visits will not assure the detection of all nonconforming work. A suggested approach in controlling site visits is to establish a specific number of site visits in the services agreement, with any additional visits provided at a unit price. Many of the AIA owner-architect agreements and related scope documents contain a 10.9 Construction Phase Services 719 PA R T 3 : P R O J E C T D E L I V E R Y TABLE 10.14 Architect’s Contract Administration Tasks/Documentation Activities Tasks Documentation Preconstruction conference Review Review Review Review Review Review Review Review Construction Conduct scheduled site visits Monitor progress and quality of work Determine work conformance Participate in project meetings Issue site observation reports Send/answer RFIs Review contractor submittals Review value analysis substitutions Prepare change orders Review applications for payment Issue work change proposals Monitor allowances Monitor contingencies Monitor progress and quality of work Approve minor changes Review quality control reports Cooperate with owner’s consultants Review change order pricing Site observation reports Project meeting reports Work changes proposal requests Change order recommendations Change orders Construction change directives Supplemental instructions Requests for information Certificates for payment Action item lists Document logs Substantial completion Inspect project for substantial completion Review contractor’s punch lists Prepare certificate(s) of substantial completion Document owner-accepted nonconforming work Monitor building start-up and commissioning Amended punch lists Certificate(s) of substantial completion Closeout conference Review contractor closeout documents Review record documents Receive contractor written notice of final completion Closeout lists Transmit record drawings to copy owner Final completion Inspect project for final completion Review final closeout documents Review final application for payment Reconcile allowances and contingencies Prepare final change order Final change order and final application and certificate for payment to owner Contractor’s warranty Review compliance completion items (if requested by owner) Letter to general contractor citing warranty corrections required One-year follow-up review Review warranty items to be completed or corrected prior to end of warranty (if requested by owner) List of outstanding warranty items to owner administrative procedures contractor’s construction schedule contractor’s submittal schedule contractor’s required submittals schedule of values quality control/testing procedures allowances/contingencies bond requirements Preconstruction conference report Administrative procedures manual (optional) fill-in space for the number of site visits; however, a specific number can be specified in any owner-architect agreement. It is helpful to have a reduced set of drawings when walking the site, and the iPad and tablet PC allow the observer to not only have a full set of project documents at the fingertips but also take digital images for records. Just be sure that any nonconforming work discernible in the image is appropriately noted. Site observation reports reflect the status of construction at the time of the site visit, and the wording should accurately reflect the construction. For example, the architect may observe roofing work that appears to be complete. If the report states, “The roofing has been completed,” and there is uncompleted roofing elsewhere on the project, the reader could reach an erroneous conclusion. It is more prudent to state, “The roofing on the building appears to be completed” to avoid a misunderstanding. Observed nonconforming work should be noted in the report and tracked until it has been resolved. The architect is authorized to reject any observed nonconforming work. 720 Design Project Management Site observation reports should be dated, sequentially numbered, and distributed to designated parties. It is advisable to use the same reporting format, even if multiple observers submit reports. AIA Document G711TM–1972, Architect’s Field Report, is available to document and report site visits. The form can also be used as a daily log for a full-time project representative. Firm size can affect the amount of documentation during the CA phase. While larger firms often have the resources for more elaborate site observation reports and an extensive administrative infrastructure for extensive documentation and filing, the sole proprietor and the small office must administer projects with a more austere support system. While each project is different in its requirements, the basic documentation required for many projects could include: • Meeting reports (or response to report) on all meetings • Site observation reports with all site visits (one page minimum) • Copies: submittals, RFIs, key correspondence, change orders, architect’s supplemental instructions (ASIs), contracts, consultant-issued documents, owner directives, payment certifications, certificates of substantial completion, etc. The Architect’s Project Representative PA R T 3 : P R O J E C T D E L I V E R Y The traditional role of the architect’s on-site project representative has evolved over the years, and because of the variations in services the AIA has discontinued the publication of AIA Document B352TM–2000, Duties, Responsibilities and Limitations of Authority of the Architect’s Project Representative. If additional on-site representation is a part of the architect’s services, specific responsibilities can be included in the owner-architect agreement. AIA Document B101TM–2007, Standard Form of Agreement Between Owner and Architect, in Article 4, Additional Services, lists “On-site project representation” in the additional services table under §4.1.12. A similar listing can be found in AIA Document B103TM–2007, Standard Form of Agreement Between Owner and Architect for a Large or Complex Project. Otherwise, additional on-site representation can be described in “other services.” The on-site project representative typically provides a greater on-site presence for the architect; however, the additional time on the project does not increase the standard of care for the architect relative to its contracted responsibilities. If the owner wishes to have an on-site representative solely for its purposes, it is better for the owner to provide the representative rather than the architect. The architect’s on-site project representative usually represents the architect in activities that include site meetings, construction progress reviews, and the review of constructed conditions for information responses, but the representative’s decisionmaking authority is typically limited and defers to the architect’s construction contract administrator. Owner-Accepted Nonconforming Work The owner has the right to accept nonconforming work instead of requiring its removal and replacement, and the contract sum should be reduced by change order as appropriate and equitable. Should the nonconforming condition conflict with code requirements or endanger life safety, the architect must object to the acceptance and insist on completion or correction. Owner-accepted nonconforming work should be noted as an exclusion to the architect’s certificates of substantial completion. Clarifications and Problem-Solving Since the drawings usually contain some errors and omissions, and they are not a complete set of instructions on how to build the building, the process of the architect providing clarifications and solving detail conflicts and problems is an important part of the delivery process. In order for this process to be effective, it is necessary that the 10.9 Construction Phase Services 721 contractor prepare an effective work plan that includes performing adequate initial document reviews, coordination drawings, conflicts checks, and timely submittal preparation. It is hoped that this will flesh out most of the naturally occurring conflicts and discrepancies before they are discovered while doing the work. When a problem in the details is discovered while the work is being installed, the contractor’s request for assistance usually arrives at the architect’s office in the form of an e-mail RFI with an urgent status. As a team player, the architect should respond as quickly as possible after due research. This requires having knowledgeable respondents available with the authority to make decisions. Project Meetings PA R T 3 : P R O J E C T D E L I V E R Y Scheduled project meetings, often called owner-architect-contractor (OAC) meetings, are typically conducted on regular intervals during the construction phase to report the project status to the owner and to discuss and resolve key project issues. A popular agenda format that facilitates issue resolution is the action item report (see Table 10.15). The action item report lists numbered topics that are carried over from meeting to meeting until resolution is achieved. If published in timely fashion, the report can serve as a work list for the next scheduled meeting. The meeting can be conducted by the contractor, the architect, or a third-party construction manager–adviser, program manager, or other owner representative consultant. Since the minutes are a permanent record of the attendee’s discussions and decisions on the project, the architect is advised to read, correct, and clarify the published minutes in writing before the next OAC meeting. Initial Decision Maker The initial decision maker (IDM) for claims between the owner and the contractor is the architect, unless a third-party IDM is named in the owner-contractor agreement. The IDM will render a decision or take other appropriate action as indicated in §15.2.2 of the General Conditions of the Contract for Construction. An architect that is designated to render the initial decision on a claim that involves the architect’s services may have a conflict of interest, and it may be necessary for the issue to be resolved by another method. Assisting a third-party IDM, or administering an extensive number of claims as the IDM, is listed as an additional service to the contract in AIA Document B101TM–2007, Standard Form of Agreement Between Owner and Architect. Contractor Progress Payments The orderly progression of work is dependent on timely payments to the contractor, who subsequently pays its subcontractors, sub-subcontractors, and suppliers. Payment delays and nonpayment can threaten the economic balance of this contractor payment sequence and cause great disruption or a possible work stoppage. Therefore, payment application reviews and payment schedules should be administered as a priority. Payment Application Processing AIA Document 702TM–1992, Application and Certificate for Payment, is a dual form that also includes the architect’s certification for payment. AIA Document G703TM–1992, Continuation Sheet, is typically used to list the scheduled values for the various parts of the work. The contractor’s application includes a signed and notarized certification by the contractor that the work is in conformance with the contract documents, all contractors have been paid for previous amounts received, and the current requested amount is correct and due. The architect and its consultants review the application, and if they find the requested amounts to be a reasonable representation of the work in place, will issue the certificate for payment portion of the document to the owner. 722 Design Project Management TABLE 10.15 Action Item Meeting Report Date of meeting: July 5, 2012 Date of issue: July 6, 2012 Project: Vesey Village Project no. 13521 Present: Representing Swansong Developers (SD) John Sawyer Representing Able Architects (AA) Chris Wren, AIA Representing Broadway Builders (BB) Max Velocity Representing Dubious Mechanical (DM) Stan Downs Representing Miracle Electrical Flash Finley Location: Vesey Village job site Purpose: Project Meeting No. 48 Discussion: Item No. Discussion Action By Date 48/1 Flagpole Illumination The owner has requested additional lighting on the flagpoles at the building entrance. Able Architects will select a lighting fixture, and Miracle Electrical will provide pricing for the change. ME, AA 7/13/12 48/2 Additional Thermostat The owner has requested an additional thermostat at the security guard station. Dubious Mechanical will provide pricing for the change. DM BB 7/21/12 7/13/12 48/3 Building Directory—North Building BB will replace the building directory wood frame in the North Building with stainless steel as requested by the owner. AA and SD are to select the finish color. SD,AA 7/8/12 45/2 Kitchen Makeup Air Diffusers At the owner’s request (JS), the general contractor has replaced the egg crate diffusers in the kitchen areas with a perforated type diffuser. Closed PA R T 3 : P R O J E C T D E L I V E R Y Able architects Meeting report End of Meeting This report is assumed to be a true and accurate account of this meeting, unless written notification to the contrary is received within ten (10) working days of the date of issue of this report. Respectfully Submitted, Chris Wren, AIA Principal cc: All present Payment application reviews by the architect and its consultants are typically coordinated with a scheduled site visit, and a “pencil copy review” can be conducted with the contractor. This allows the contractor to discuss the work status and finalize the application based on the mutually agreed review, and the subsequent preapproved application avoids a time-consuming resubmission. Stored Materials Applications for payment typically include a list of stored materials, which may be maintained either on or off site until incorporated into the work. Off-site storage locations are typically approved by the owner, and require storage in a bonded 10.9 Construction Phase Services 723 warehouse or secured by other acceptable means. Therefore, it may be necessary for the architect and consultants to visit off-site storage facilities to review stored materials and quantities. Work Status Representations The contractor’s application for payment is a notarized certification of the work status that is further supported by the contractor’s express warranty to the owner and architect that the materials and equipment furnished under the contract are new, that the work is free from defects, and that it conforms to the requirements of the contract documents. The architect’s payment certification is based on this warranted representation, and it is made to the best of the architect’s knowledge, information, and belief. The AIA General Conditions require that payment cannot be made without the architect’s signed certification, and the owner must pay the amount certified. Other Payment Conditions PA R T 3 : P R O J E C T D E L I V E R Y The AIA application and certificate for payment form also includes a change order summary, the amount of current retainage for work in place and stored materials, and a “balance-to-complete” amount remaining. The architect’s review of the payment application includes a review of this balance to determine whether sufficient funds remain to complete the work. For example, if the project has been delayed or the contractor has underbid the work, the remaining funds may not be sufficient to complete the work. The determining factor is if there are sufficient funds remaining for an outside contractor to be brought in to complete the work for the balance remaining. If not, the architect will not be able to certify payment on this application, and if the deficiency is great enough, previous certifications for payment may require nullifying to cover the cost of completion. Should it be determined that the balance-to-complete is not sufficient, a meeting should be called with the owner and contractor to discuss the actions required to complete the work. Payment certification is a serious matter, and care must be taken to be fair and reasonable, with the overriding goal of protecting the owner. When a contractor is providing work under more than one contract with an owner, multiple contract payment applications could be reflected in a single application for payment. Should this happen, care should be taken to not certify work that is not included in the architect’s contract so as not to incur increased risk. This can be resolved by the contractor preparing separate applications for payment or by having the contractor break out the application into separate contract amounts so that the architect’s certification can be specifically designated. The architect must not certify payments on work that is provided by consultants who are contracted directly with the owner. The architect is not contracted for this work, and certifying payment will incur additional risk. If this condition exists, have the contractor either apply on a separate payment application or reorganize the application for payment to allow for a separate certification signature and amount by each contracted design professional. Contractor Submittals The contract documents prepared by the architect illustrate the completed project, but they are not a complete set of instructions on how to build the building. Instead, the documents express the design intent for the contractor to use in preparing its work plan. A primary part of the contractor’s work plan is contractor submittals. These include detailed drawings (referred to as “shop drawings”) prepared and approved by the contractor, detailed information or data from the product manufacturers, and physical product samples. Submittals are a part of the contractor’s work plan documents that illustrate in detail how the contractor plans to construct the work, and they must be submitted to the architect for review and approval. The architect determines which parts of the work 724 Design Project Management require submittals, and the contractor is prohibited from performing those portions of the work without approved submittals. When reviewing submittals, the architect does not verify or determine detailed information such as dimensions, fasteners or fastening methods, or material gages. Instead, the architect reviews and provides its approval only for the purpose of checking the submittal for conformance to the design intent as expressed in the contract documents. Submittal Review Schedule Submittal schedules must be carefully prepared in coordination with the project construction schedule. PA R T 3 : P R O J E C T D E L I V E R Y The contractor’s submittal preparation and review, and the architect’s submittal review are very time-consuming, and sufficient time must be allocated for the entire process. This is accomplished by the preparation of a contractor’s submittal schedule that is coordinated with the project construction schedule. The reason for coordinating it with the construction schedule is to allow enough time for submittal preparation, review, and fabrication of products and systems sufficiently in advance of product installation. Since many products in construction must be sequenced and coordinated with other products, the submittal schedule must be carefully prepared in coordination with the project construction schedule. The absence of a submittal schedule indicates that the project has not been completely planned and sequenced by the contractor. Preparation should be a cooperative effort by the contractor with the architect. MasterSpec Full Length Section 013300, Submittal Procedures, identifies “action submittals,” which require the architect’s review and approval action, and “informational submittals,” which are not reviewed but are submitted only to inform the architect that the contractor has met its contracted submittal obligations. Informational submittals include coordination drawings and performance-based engineering calculations, which are the contractor’s responsibility. Submittal Review Time It is important to take sufficient time to review submittals, and some submittals take longer than others. Owners sometimes attempt to contractually limit review time, in the belief that it will accelerate project completion. If a prescribed review time is included in the services agreement, it is recommended that it be agreed upon as average review time. This will allow a more reasonable allotment of time for more and less lengthy or complicated submittals while still maintaining the average time. It is helpful to discuss submittals on items that require a long lead time and large, complex submittals to determine if the allotted review time and submittal sequencing are reasonable. Submittal Review Process AIA documents require the contractor to review each submittal prior to submission to the architect to determine if the submittal has been properly prepared and to coordinate it with other portions of the work in accordance with the contractor’s work plan. Any deviations or omissions in the submittal from the contract documents are to be noted, advising the reviewer of the scope change. The architect should take the following actions upon receipt of the submittal: • • • • • • • Determine if the submittal is required. Return without review submittals not required. Mark the required submittals received with date. Determine if a control number is affixed. Enter the submittal into the tracking log or database. Determine appropriate routing for review. Forward the submittal for appropriate review. Review the submittal in accordance with the approved submittal schedule. Mark “revise and resubmit” and return any submittals when a review cannot be completed. Remember that resubmissions take time, and added notations with “approved as noted” will allow the contractor to begin the work without resubmitting. 10.9 Construction Phase Services 725 Do not review submittals that are the responsibility of other design professionals, and return submittals without review when they are not required by the contract documents. If a portion of a submittal contains the work of another contractor or work included in a separate contract, highlight the area and note, “not reviewed.” PA R T 3 : P R O J E C T D E L I V E R Y Submittal Tracking Since submittal reviews are time-sensitive, the process must be well documented. Include complete transmittal information with all routing; PDFs attached to descriptive e-mails; and a complete description of the documents sent, to whom, with date and control number included. These issues should be resolved in the preconstruction conference, if not earlier. When reviewing submittals in Track all submittals in a submittal log or database. Report all participant activity electronic media, be sure that times, including the contractor’s. Manual tracking can be done with AIA Document markups and notations by the G712TM–1972, Shop Drawing and Sample Record. design professionals cannot be Each submittal should have a unique control number. Incorporating the specificamanipulated. tion number into the control number is useful for cross-reference. For example, the first submittal for fire extinguisher cabinets, specifications section 104413, would be 10441301A. If a resubmission is required for a second review, the number for that submittal would be 104413-01B. If a subsequent submittal is made for fire extinguisher cabinets for a different part of the project, the submittal control number would be 104413-02A. This versatile numbering system differentiates each individual submittal while crossreferencing it to the appropriate specification section. When you receive the submittal schedule, check to be sure that all specified submittals, and only specified submittals, have been included. Do not review submittals such as crane support details, temporary safety designs, or earth retention designs because those involve construction means and methods and safety procedures, for which the contractor is solely AIA CH ANGE DOC UM ENT S responsible. Much time can be saved in transmittal and distribuTM AIA Document G701 –2001, Change Order. A change tion through digital documents and electronic routing. order (CO) requires the signatures of the owner, the An architect who holds the prime contract with the owner architect, and the contractor. The architect signs the CO and works with other design disciplines as subconsultants because it changes the architect’s signed and sealed can allow direct distribution to the consultants. However, documents, for which he or she is held legally responsible. the reviewed copy should be routed back through the Therefore, it is advisable that the architect prepare the CO architect to allow coordination of the architecture to the to facilitate acceptance. If COs are executed without the consultant’s work. Any notations added by the architect architect’s involvement, it can prohibit the determination of substantial and final completion. should be noted as “architectural coordination” in a sepaAIA Document G714TM–2007, Construction Change rate markup color. It is not appropriate for the architect’s Directive. A construction change directive (CCD) is signed review stamp to be affixed to the consultant’s submittal by the owner and the architect, and it may or may not because the architect is not licensed to perform the work need to be agreed to and signed by the contractor to be of that discipline. valid. If the contractor does not agree with the change described in the document, it is referred to the architect as a claim. When the scope, cost, and time for the CCD has been agreed to by the owner and the contractor, the architect is to issue a corresponding change order. AIA Document G710TM–1992, Architect’s Supplemental Instruction. Architect’s supplemental instruction (ASI) is an order by the architect for a minor change in the work that does not affect the contract sum or time and is consistent with the design intent expressed in the contract documents. It is signed only by the architect and will stand as a change in the work unless contested, in which case a CCD or CO will be required as is deemed appropriate. 726 Design Project Management Changes in the Work Changes in the scope of the work are a normal part of the construction phase, and every project typically includes at least one change order. Even if there is no change in the original project scope during construction, a final change order is usually required to reconcile contract variables such as contingencies, allowances, and unit prices. Construction is expensive, and owners should be able to make changes in their project to get it just as they want. The more agile and efficient design professionals are at performing with changes, the more they will endear themselves to the owner and the contractor as a team player. Change Causation Changes in the scope of the work can be caused by a number of sources or conditions, and the way the change is managed can affect the efficiency of the administrative efforts, as well as the level of risk. Contractor Substitution Changes The architect controls the quality of the project through the specifications. Firms spend years developing specifications based on product performance and availability. In-house detail libraries are built around the use of specific products and sometimes specific manufacturers. But the contractors are responsible for making the parts of the building fit together, and they are allowed to substitute nonspecified products and brands if it is justified and approved. Factors such as product availability, volume purchasing, and LEED certification can make a proposed substitution for cause worthwhile. AIA’s MasterSpec Full Length, Section 012500, Substitution Procedures, provides a good approach to administering substitutions. It defines substitutions as Substitutions for Cause and Substitutions for Convenience. The contractor is allowed to substitute for cause due to unavailability of product, regulatory changes, or prohibitive warranty conditions. The specifications writer is given the option of either not allowing substitutions for convenience altogether, or allowing them for a limited time after the notice to proceed or the actual start of work. Sixty days is suggested. Substitutions for cause can be requested using CSI Form 13.1A, since the AIA does not have a form for this purpose, or a firm can prepare its own form to accommodate individual project needs. CSI Form 13.1A, Substitution Request, if fully utilized and enforced, can be helpful in vetting substitutions in that it requires the submitter to provide supporting information, including the number of years the product has been available, similar installations to review, differences between the two products, savings to the owner, and changes in contract time. The form also contains a certification by the submitter that the product is equal to or better than the product to be replaced, it has the same warranty and maintenance requirements, it will work in size and function, and any additional costs will be accommodated. The architect’s review and action on the request is the same as on other contractor submittals. Contractor Value Analysis Changes Another source for scope changes is value analysis, also known as value engineering (VE). By definition, value analysis proposals are intended to increase the value of the project. Ideally, this can be accomplished by finding a product or system of higher quality at the same cost, or a product or system of equal quality at a lower cost. The reality is that products and systems are competitive, and purchasers get what they pay for— that is, a product of lesser cost is often of lesser quality. Architects are often pressured to accept VE changes to reduce project costs, and the changes, which are actually substitutions, are not always well vetted in a review/approval process. Risks can arise when the product adversely affects the project design or adjacent products, or when it fails to perform either functionally or as expected. The architect is frequently blamed for the product’s disappointments since the architect is responsible for specifying the original quality of the project and allowed the VE change to be accepted. PA R T 3 : P R O J E C T D E L I V E R Y Owner Scope Changes The owner can change the scope of the project at will, and the cost of the change increases (or decreases) with the completion of the work. Thus it is important to assist the owner in understanding the completed project as much as possible. Renderings, computer animations, and mock-ups help owners visualize and understand in advance what the project will be. Should a significant scope change be made during construction, a quick response and efficient actions are paramount in minimizing project delay and controlling premium costs. Product substitutions should be managed with a substitution request form that requires sufficient manufacturer’s information to conduct a reasonable product comparison. 10.9 Construction Phase Services 727 PA R T 3 : P R O J E C T D E L I V E R Y Architects are often pressured on short notice to accept VE changes to reduce project costs when the time allowed for a reasonable review is limited. In general, don’t succumb. Therefore, a good approach to administering VE changes is to manage them as substitutions, using MasterSpec and an effective substitution request form such as CSI Form 13.1A. A cryptic list of line-item VE changes attached to the owner-contractor agreement is a red flag, and the list should be considered nonconforming work until each product has been properly researched and vetted. In the value analysis process, the risk increases when the owner expects the substituted product or system to have the same quality as that which was originally specified, especially with no accompanying reduction in the project cost. And when the project cost is reduced by a substituted product or system, it may have a shorter life cycle or a higher maintenance cost. It is important to assist owners in understanding this reality so that expectations can better align. There are occasions when the work does not conform to the design and is not acceptable to the architect but is acceptable to the owner, who has the final say. Changes Caused by Accepted Nonconforming Work There is a degree of latitude in construction, in that there is more than one way to construct a building and sometimes more than one way to conform to the “design intent expressed in the documents.” The architect is under contract to determine whether the completed work conforms to that intent. There are occasions when the work does not precisely conform to the design intent but the difference is acceptable relative to scope and functionality, and it is accepted by the architect. There are other occasions when the work does not conform to the design and is not acceptable to the architect but is acceptable to the owner, who has the final say. When the owner accepts nonconforming work, it still does not conform to the contract documents, and the architect is obligated by its services agreement to report it as such. Such work should be noted as a nonconforming exception on the certificate of substantial completion, and the contractor is typically required to document the deviation on the contractor’s as-built drawings. BAS IC C ON ST RUCT ION PHA SE SE RVICE S F O R S M A LL F IRM S A N D S M A L L PROJ E C T S The level of sophistication and intensity in contract admin