CE Master Notes.pdf

CE Notes Instruments of Service: All creative work associated with the project (including sketches, drawings, project manual, renders and all other work product). Architect fully owns all Instruments of Service and copyrights on them Owner has right to use documents (typically one time) but does not...

CE Notes Instruments of Service: All creative work associated with the project (including sketches, drawings, project manual, renders and all other work product). Architect fully owns all Instruments of Service and copyrights on them Owner has right to use documents (typically one time) but does not have ownership of them Contractor has right to use and duplicate exclusively for purpose of executing the Work Contractor cannot use Architect’s Instruments of Service for any other purpose. Owner can’t give or sell them to another Architect. Correlation + Intent: If a piece of work or equipment is defined in one place, concept establishes that it is as if it’s mentioned in all places. Creates succinct Contract Documents. Example: Marble threshold shown at entrance to bathroom but is not listed in technical spec sections. Contractor is still obligated to provide. Standard of Care Does not equal perfection Defined as what a reasonably prudent Architect would do in the same community, in the same timeframe, given the same or similar circumstances Architect Responsibilities: Meet the “Standard of Care” Not responsible for construction means, methods, techniques, sequences and site safety Acts as Owner’s representative and agent for matters concerning the Work All communications between Owner and Contractor are through Architect Endeavors to protect the Owner’s interest but does not supervise the Work Act as the Initial Decision Maker in disputes, issue written findings Provide clarifications to or interpretations of Contract Documents Does not decide on changes in scope, quality or time that deviate from contract documents. ▪ Architect makes recommendations upon which Owner may base a decision Usual & customary structural, mechanical, electrical engineering services (included in Basic Services) Assist Owner in development and preparation of: ▪ Procurement information ▪ Form of agreement between Owner/Contractor ▪ Conditions of the Contract Compile Project Manual Establish list of prospective Contractors Obtain bids/proposals Assisting Owner in awarding/preparing contracts for construction Facilitating distribution of bid documents Organizing/conducing prebid conference Prepare addenda Organize/conduct opening of bids Organizing/participating in selection interviews for negotiated bids Participating in negotiations and preparing summary report for Owner Review Contractor’s subcontractor list Review Contractor’s submittal schedule Review and reply to submittals, RFIs Maintain records of: ▪ Pay apps, submittals, changes to the Work Visit site at intervals appropriate to the stage of construction to: ▪ Become generally familiar with the Work ▪ Guard against defects/deficiencies ▪ Evaluate progress Evaluate/determine/reject nonconforming Work (Owner may decide to accept after rejection) Authority to require testing/inspections of the Work Administer contract between Owner/Contractor Advise/consult with Owner during CA Keep Owner reasonably informed about Work progress/quality Promptly report to Owner: ▪ Nonconforming Work ▪ Deviations from schedule ▪ Defects/deficiencies observed in the Work Prepare CCDs, Change Orders and ASIs Review and certify payment applications Determine date of substantial completion by issuing Certificate of Substantial Completion Forward warranties, O+Ms to Owner for their review/record Determine Final Completion by issuing final Certificate of Payment Makes (2) inspections: substantial completion, final completion Architect’s CA services begin at notice of award. Architect’s CA services end at Final Completion or 60 days after Substantial Completion, whichever is earlier, time after that warrants a change in service Proactive Architect involvement in CA: Creates trusted advisor relationship with Owner Increases influence on the Work by active participation in problem resolution Increased design control Opportunity to correct errors & omissions before Work is completed (reduces risk) Fewer chances of Owner-accepted nonconforming work Architect CA phase services: Described in: Owner/Architect agreement (B101) General Conditions (A201) Supplementary Conditions Division 01 (General Requirements) Interpretations of the Architect: ▪ Should be consistent with/reasonably inferable from Contract Documents ▪ Should endeavor to secure faithful performance from both Owner/Contractor ▪ Shall not show partiality to either Owner or Contractor ▪ Not liable for results of decisions rendered in good faith ▪ Decisions on aesthetic effects are final if consistent with intent in Contract Documents Items that may affect CA services fee/ability to perform services: ▪ Number of reviews per submittal ▪ Submittal schedule ▪ Unreasonably short submittal review time ▪ ▪ ▪ ▪ ▪ Important for Architect to be involved in the development of Owner/Contractor contract to ensure it’s consistent with the provisions of the CDs, General Conditions and Owner/Architect agreement If Owner waives services in the executed Owner/Architect agreement that are required to meet Architect’s standard of care, advise Owner in writing and perform the services anyway. ▪ If in doubt, consult Architect’s professional liability insurance agent If Owner waives services in the executed Owner/Architect agreement that are not required to meet Architect’s standard of care, document Owner’s directive in writing for record. Architect’s Additional Services Coordination of Owner’s consultants Detailed Cost Estimates On site project representative Commissioning Sustainability services required in E204 CA services more than 60 days after Substantial Completion See list below of additional Post Construction Additional Services To avoid construction delay, provide the following additional services then promptly notify Owner. Owner may reject additional service but still must pay Architect for services already performed, prior to receiving rejection: ▪ ▪ ▪ ▪ ▪ ▪ Change order execution that does not include Architect’s approval Deletion of submittal review Extensive punch list requirements Extensive site visits/inspections Excessive unwarranted RFIs Reviewing submittal out of sequence to submittal schedule Replying to nonsense RFIs Preparing COs & CCDs that require Architect to evaluate Contractor’s proposals Revisions to Drawings/Specs due to COs & CCDs Evaluating extensive number of claims as IDM Evaluating substitutions and updating drawings/specs Notify Owner when reaching limits of contracted number of site visits, submittal reviews, inspections to determine substantial/final completion Contractor Responsibilities Materials, equipment, labor, site supervision necessary for execution of the Work in compliance with the Contract Documents Familiarize self with site conditions during bidding All documents have been reviewed for purposes of planning/executing the Work Any errors/omissions discovered are promptly reported to Architect Indemnifies against personal or property damage caused by the Work Submit list of proposed subcontractors for Owner/Architect review Means, methods, sequences, techniques, coordination Keep site clean Divide work between trades (doesn’t matter where it’s shown in the drawings/specs) Safety, temporary structures Dimensions, calculations All required cutting and patching Establish schedule of values Establishes and maintains construction schedule Prepare submittal schedule Keep full site of documents onsite (drawings, project manual, submittals, shops, etc.) Obtains, reviews and submits submittals Pay for tests not required by Contract Documents, if Contractor fails Pay for covering/recovering of work if it was not left uncovered for Architect review (per Contractor Documents) or is found to not meet requirements of Contract Documents after uncovering Prepare payment applications Prepare punchlist Notify Architect when they believe they’ve reached Substantial and Final Completion Warranty that all materials and equipment furnished are new Warranty that work is free of defects and meets requirements of Contract Documents 1 year warranty walk with Owner to address items In event of emergency affecting safety, Contractor shall act to prevent threatened damage or loss. In this circumstance, Contractor can proceed and pursue claim for additional cost after. In general, if Contractor wants to make a claim for an increase in Contract Sum or Time, they need to provide notice before executing the affected portion of the Work. Owner’s Responsibilities Provide information about their site (legal, geotechnical engineering, soils report, hazardous materials, surveys) Provide reviews in a timely manner Establish budget and project criteria Identify representative Coordinate between Architect and Owner’s consultants Furnish tests, inspections, reports (e.g. structural, mechanical, chemical, air/water pollution, hazardous materials) Provide all legal, insurance, accounting services for performance of Project Notify Architect if Owner becomes aware of any fault or defect in Project Notify of and include Architect in any direct communication between Owner/Contractor that affects Architect’s services or professional responsibilities Provide site access prior to commencement of the Work Coordinate Architect’s responsibilities between B101, A101, A201 Furnish requested information for Architect to evaluate, give notice of, enforce lien rights Upon request, providing evidence of financing for Work Make payments required by governmental authorities (e.g. building permit fees) Pay for tests not required by Contract Documents, if Contractor passes Has right to reject any and all bids. Has right to waive informalities and irregularities in bid and determine the lowest responsible bidder on the basis of the Base Bid and any combination of Alternates accepted. Has right to bring in alternative contractors to correct or complete Work when Contractor has not fulfilled duty. Owner contracts directly with: ▪ Geotechnical ▪ Hazardous Material mitigation teams ▪ Surveyor ▪ ▪ ▪ ▪ Commissioning Authority: Design Phase Responsibilities: ▪ Reviews design intent/product selection ▪ Produces commissioning specifications CA/Post Occupancy Responsibilities: ▪ Reviews Contractor submittals ▪ Carries out and documents system verification checks ▪ Trains operations/maintenance staff Project Delivery Method : Architect should help to determine which delivery method best suits the Owner’s needs Variables that help drive delivery method selection include construction cost, schedule, quality, risk and Owner’s capabilities Teams with less experience should use well understood, standard delivery models and contracts Select method based on: ▪ ▪ ▪ ▪ ▪ Driving factor Preferred Architect’s role Preferred Contractor’s role When construction cost needs to be established Appropriate number and types of design/construction contracts Spearin Gap: Gap between defect free drawings (which the Architect is not required to provide) and professional standard of care (which Architect must meet). Owner pays costs that fall within the Spearin Gap. Below is a list of project delivery methods ranging from highest Spearin Gap list to lowest: Traffic Legal/Permitting Architect Contractor Design-Bid-Build, Multiple Prime Contractors (highest) Design-Negotiate-Bid CM-Constructor Design Build (none) Project Delivery Methods: Design-Bid-Build Design -Negotiate-Build CM-Advisor CM-Agent CM-Constructor Multiple Prime Contractors Design Build Design Build (Bridging) Architect led Design Build Integrated Project Delivery Design-Bid-Build (A101) Cost, Risk Owner carries all of the Spearin Gap risk Design-Negotiate-Build (A101) Quality, Cost Theoretically carries less Spearin Gap risk than DBB because Owner can prequalify Contractors that they’ve have a successful past relationship with Construction Manager: Advantageous when schedule is key or project is overly complicated Allows for early trade release (e.g. excavation, foundations and structure) Good for fast track projects Good for very large or overly complex projects that call for early construction expertise and reduction in risks of bidding CM-Advisor (A132): Solely acts only as constructability and cost management consultant to Owner during design and construction. ▪ Risk, Quality ▪ Also called Pure CM ▪ No assumed risk for construction costs ▪ Contract is only with Owner. No contractual relationship to Architect or Contractor. ▪ Contract Administration: Both Architect and CM-a certify payment applications CM-Agent: Acts on behalf of Owner ▪ Risk, Time ▪ No assumed risk for construction costs ▪ Contracts with Owner and directly with Architect and Contractor CM-Constructor (A133): Advisory and estimator role in design stages transitions at preset moment to traditional contractor. ▪ Time, Cost, Risk ▪ Carries risk of construction costs Contractor’s profit tied to early design decisions ▪ Typically uses a GMP (cost plus) that’s established using early design documents. Ideally this budget is established around SD/DD. Too early means too many assumptions. Owner will push to make it earlier to lock in cost. Too late means the “at-risk” benefit to the Owner has been compromised. Contractor will push to make it later to ensure accuracy. ▪ Spearin Gap risks are mitigated since CM has active role in design and documentation phases ▪ Contracts with Owner as Contractor ▪ Ideal if Architect can help select CM-C and weigh in on their contracted scope to ensure alignment. Selection of CM-C is quals based ▪ ▪ ▪ ▪ ▪ ▪ ▪ Good approach for complex and/or fast track projects (team can issue multiple bid packages to aid early release) On complex projects, experience in similar size and function is critical Benefit is this early exchange of insight between Architect and Contractor during design. CM-C can help advise on: Local bidding conventions (current market, local building knowledge, labor availability) Building systems (advise costs) Site Selection (material and workforce logistics) Schedule/Budget Limitations CM-C can aid in QM by: Understanding contractor’s typical expectations/interpretations Evaluating for constructability Identifying scope gaps Flagging conflicting or uncoordinated scope At Bidding/Negotiations, CM-C will include written SOW to accompany design team’s bidding documents. Architect should review prior to issuance to ensure alignment with design documents. Selection of Subcontractors can be quals based, value-based or competitively bid Document tracking is critical, especially with early/multiple release packages As CM-C projects are more complicated, fees and scope for Architect should be increased. Architect will need to check CM-C’s more complex work to protect Owner’s interests CM may be incentivized by sharing cost savings with Owner Multiple Prime Contractors (A101): Time Some states require publicly funded projects to have Multiple Prime Contractors Good option if schedule is an important factor for a project that must be competitively bid Better for Owners who have capacity to manage multiple contracts Architect issues separate bid packages Owner carries all Spearin Gap risk A101 is used (one agreement per Contractor). Each Contractor should use the same General Conditions with emphasis on mutual responsibilities. Design Build (A141): Architect and Contractor are joined by a contract. One contract to the Owner for design and construction. Risk, Cost Ideal for simple, repetitive project types Reduces economic and schedule risk to Owner ▪ Owner has no Spearin Gap risk (1) design contract to administer Reduced control over quality ▪ Architect no longer acts as representative of Owner’s interests by independently monitoring building process and quality Bridging adds design control and Spearin Gap risks Typically Contractor led Procurement Approach is typically Best Value ▪ Process: RFQ: Architecture/Construction firms submit qualifications as a team o Target Value Design: Approach where the most building possible for a set price is evaluated. Practice incorporates cost as a factor in design to minimize waste and create value. Intent is to never exceed the target budget. o Teaming Agreements: Precontract agreements during Design Build proposal stage. Are later formalized as actual contracts after notice of award. o Typically uses Uniformat conceptual estimating for initial cost model o Design Reconciliation: Ongoing task where team reconfirms that design meets targets outlined in RFP. Hopefully results in: ▪ Design Commitment: Design element that has been confirmed to meet the budget and schedule requirements of the contract o Ideal Strategy for DB: Best Value + GMP + Shared Incentives for Savings o Contract Administration ▪ Architect does not determine Substantial Completion (Owner does) ▪ Simplified submittal process Integrated Project Delivery: Binds all parties under a single agreement RFP: Shortlisted Architecture/Construction firms submit conceptual design with price, schedule Contract Administration ▪ Probably has no submittals as everything has already been pre-vetted by team Design Assist: Shop drawings, generated by a subcontractor, are incorporated into Architect’s construction documents Makes for more accurate, efficient working drawings Improved cost control/construction operations Good for technically complex components Public/Private Partnerships (PPP): Used by governments that lack capital funding or expertise to create complex projects Build-Operate-Transfer (BOT): Version of PPP where private enterprise finances, designs, builds and operates building and takes majority portion of resulting revenue. After set time period (e.g. 25-99 years), project is turned back to originating institution. Level of Development (LOD): Level of detail of a BIM model. The higher the LOD, the higher the fees. Sustainable design considerations (e.g. building’s relationship to the environment, long term use of energy and indoor environmental performance requirements) are significant considerations in its planned quality Scope is not fixed until project completion Changing owner demands, market conditions for materials and labor, site/existing conditions all impact scope as the project unfolds Primary purpose of meeting minutes is to facilitate communication among project participants Life Cycle Cost Analysis Initial Cost Financing Cost Operational Cost Maintenance Cost Project Schedule Types: Milestone Chart: Written chart that lists task milestones and durations (used for small design fees) Bar/Gantt Chart: Visual bar chart that notes milestones/tasks with durations (most often used in design project planning) Critical Path Method: based on interdependent activities (commonly used in construction) Wal Schedule: Used for medium/large design projects. Best way to product design work plan that integrates tasks for all team members. Will be turned into a detailed Bar/Gantt chat. Involves participation and buy-in from all stakeholders Contract Documents Drawing must be reasonably well coordinated and sufficient for their intended purpose Shop Drawings + Submittals are not Contract Documents Specifications describe type and quality. Drawings describe quantity and setting. Schedules bridge the gap between them. Drawing Schedules Most effective approach is default scheduling that covers 90% of situations with atypical situations covered by notes (e.g. all doors to be 8’-0” solid core doors, UON) Instructional Systems: Graphically coach the drafter or contractor to an understanding of project conventions such as scheduling or documentation Working in Context (WIC): Related drawings or views are developed alongside one another Numerical keynoting can help to achieve consistent language between drawing notations and specifications Project Manual, comprised of: Bidding & Contracting Information: ▪ Instructions to Bidders ▪ Bid Forms ▪ Information available to bidders (e.g. soils reports) ▪ General Conditions ▪ Supplementary Conditions ▪ Samples of the Owner | Contractor Agreement Specifications: Describe the expected quality of elements, materials and systems and define installation standards, administrative procedures and expectations. Critical in establishing design intent to GC. ▪ Remove products and materials from each section that are not needed ▪ General Requirements (Division 01): Communicates administrative and procedural requirements (e.g. payment procedures, submittals, quality control, substitution requests and contract closeout documents) ▪ Technical Sections: Describes the following: Scope Related Work Reference Standards Submittal requirements Warranties or Guarantees Products Labor Execution ▪ Outline Specifications: Schematic in nature. Organized per CSI division. Includes basic material descriptions and quality level. o Good for early design documentation Performance Specifications: Describes how product should perform o Good for technically driven components (e.g. air handlers, chillers, transformers, mechanical/electrical equipment) o Combine with reference standards o Often mandated by government clients to avoid showing preference Narrative Specifications: Describes work in words, rather than in drawings of technical language of CSI. Essentially just a narrative for early cost estimating. o Good for Schematic Design Descriptive Specifications: Technical descriptions of exact characters of materials and products. o Tedious and time consuming to develop. o Advisable to combine with proprietary product names and model numbers to communicate BOD. Reference Specifications: Incorporates reference standards published by industry associations and testing organizations (e.g. ANSI, ASTM, UL) Proprietary Specifications: using proprietary products and materials o Preferred due to brevity and simplicity o Often supplemented with reference and performance specifications Basis of Design (BOD): Identifies manufacturer and product from which drawing detailing was derived or contains all of the critical performance aspects being required Format per Design Phase Schematic Design: Narrative Specifications Design Development: Outline Specifications (3 part but very abbreviated information) Contract Documents: Complete 3-part Specifications, use: o Short Form ▪ Limited scope (small renovations, interior fit-outs) ▪ Simple design/applications (e.g. warehouses, shell strip retail) ▪ Design-build (maximum freedom in proposing final materials or products to suit design criteria is necessary) o Full Length ▪ Uniformat (CSI): Specification and cost estimate tool based on systems or assemblies Allows for early pricing at an elemental level Good for early design Outlines preliminary project descriptions Design alternatives can be better evaluated Early performance specifications are established at the system level as the project design is being refined ▪ MasterFormat: Information is organized by work results or construction practices Used for later design phases onward Used for facility life cycle Used for organization cost data Divided into 50 divisions, then: o Divided into SectionFormat: ▪ 1) General (Admin procedures, temporary requirements) ▪ 2) Products (Materials/products, quality) ▪ 3) Execution (Installation, application) Each page is set up according to PageFormat for consistent appearance Project requirements get more specific moving through the hierarchy: o General Conditions → Division 01 → Divisions 02-49 Part I When not all parts of CSI spec section are used, note the part and write “Not Used” Divisions (ordered from less complex to more complex): o 00 – Procurement & Contracting Requirements ▪ (not part of Contract Documents) o 01 – General Requirements ▪ Broad requirements for execution of the Work. Eliminates redundancies in Divisions 02 – 49 ▪ Provide additional detailed information to supplement Owner/Contractor agreement, General Conditions (typically noted by reference) ▪ Written per project to be project specific ▪ Overspecifying may increase construction cost unnecessarily and create excessive obligations 01 23 00 Alternates 01 35 00 Special Procedure: For projects requiring exceptional or unusual workmanship (e.g. restorations, alterations, hazardous material abatement, specific facility types like airports, detention facilities, hospitals, nuclear facilities) 02 – Existing Conditions 03 – Concrete 04 – Masonry 05 – Metals 06 - Woods & Plastics 07 – Thermal & Moisture 08 – Opening 09 – Finishes 10 – Specialties 11 – Equipment 12 – Furnishings 13 – Special Construction 14 – Conveying Equipment 21 – Fire Suppression 22 – Plumbing 23 – HVAC, Mechanical 25 – Integrated Automation 26 – Electrical 27 – Telecomm 28 – Security 31 – Earthwork 32 – Exterior Improvements 33 – Utilities 34 – Transportation 35 – Marine, Waterways ▪ ▪ o o o o o o o o o o o o o o o o o o o o o o o o o Bid Solicitation: Invitation to Bid: Attract qualified bidders and help would-be bidders judge whether work is in their capability and if they have enough time. Keep them simple. Advertisement for Bid: Required in public work. Invites all qualified bidders. Usually shorter than an Invitation to Bid Components: ▪ Project Identification (name, project #, issuance date) ▪ Name/address of Architect and Engineer ▪ Description of Work ▪ Type of Bid ▪ Time of Completion: Calendar days to substantial completion ▪ Information on Prebid meeting ▪ Bid opening protocol ▪ Document availability ▪ Bidder qualification ▪ Bid Security ▪ Establish Owner’s right to reject: Owner may waive irregularities and reject bids ▪ Laws and regulations: Specific laws and regulations that will govern project Instructions to Bidders (A701): Outlines what constitutes a responsive bid. Keep minimum information in invitation or advertisement and put complete information in Instructions to Bidders Bid Form: Format for bidders to present their cost, schedule, unit prices or other required information (bids with incomplete bid forms are considered nonresponsive). Sums must be listed in numbers and words. Words govern over numbers. Paper copies of bid must be in sealed opaque envelope with the following noted: ▪ Address of receiving party ▪ Project name ▪ Bidders name/address ▪ Note portion of Work being bid on (if applicable) Components: ▪ Signatures/seal ▪ Project identification ▪ Names/addresses of party bid is directed to ▪ Name of submitting entity ▪ Acknowledgements ▪ Amount of time to hold the bid (typically 30 days for private, 60-90 days for public) ▪ Identification and acknowledgement of addenda ▪ Contract Sum (including alternates, unit prices, etc.) ▪ Completion time ▪ Liquidated damages ▪ List of alternates ▪ Supplements (bid security, proposed sub list, evidence of bidder qualifications, financial statement, non-collusion affidavit, etc.) General Conditions of the Contract (A201): Sets rights, responsibilities, relationships between Owner, Architect and Contractor in broad terms. Defines procedural requirements (e.g. payments, contract mods, insurance, corrections to defective work). Contains the constants/static content. Architect should not prepare without explicit approval from and guidance by: Owner, Owner’s legal counsel, Owner’s insurance agent Not considered specifications If Owner/Contractor modify A201, it does not impact Architect’s services unless Owner & Architect also modify B101 Supplementary Conditions of the Contract: Project specific modifications to the General Conditions. There is no AIA standard form. Takes precedence over General Conditions. Subjects that require provisions: ▪ Insurance requirements ▪ Progress payments ▪ Wage rate requirements ▪ Equal Employment Opportunity Requirements ▪ Liquidated damages ▪ Retainage ▪ Architect should not prepare without explicit approval from and guidance by: Owner, Owner’s legal counsel, Owner’s insurance agent Not considered specifications Addendum: Modifications to procurement documents issued for bid/negotiation. Can be issued at any time prior to execution of the Owner/Contractor agreement Tax exempt status of the Owner During bidding, must be issued no later than 4 days before bid due date Procurement Documents Advertisement/Invitation to Bid Project Manual ▪ Procurement requirements (Division 00) ▪ Instructions to Bidders (A701) ▪ Bid Bond Form (A310) ▪ Bid Form ▪ Sample Owner/Contractor Agreement (A101 or similar) ▪ General Conditions (A201) ▪ Supplementary Conditions ▪ General Requirements (Division 01) ▪ Technical Specifications (Division 02 and up) Contract Drawings Addenda Documents that may be included for bidder’s information: ▪ Site Survey ▪ Geotechnical Report ▪ Soil boring data ▪ Resource drawings of existing buildings ▪ Description of the site ▪ Hazardous Material Survey Procurement Documents that are not included in Contract Documents: ▪ Instructions to Bidders ▪ Bid Bond ▪ Bid Form ▪ Advertisement/Invitation to Bid ▪ Reference/resource documents (e.g. geotechnical report) Procurement requirements should be provided by the Owner or prepared by the Owner with Architect’s assistance. ▪ ▪ ▪ Any document prepared by Architect should receive Owner’s approval before implementing Procurement requirements do not become Contract Documents, except in special circumstances Do not duplicate operative figures (e.g. dollar amounts, times, dates, etc.). Instead provide location of primary reference for figure Contract Documents Owner/Contractor Agreement (A101) General Conditions (A201) Supplementary Conditions Specifications ▪ General Requirements (Division 01) ▪ Technical Specifications (Division 02 and up) Contract Drawings Addenda Modifications after Execution Contractor’s Qualification Statement (A305): Used in procurement documents to have bidders demonstrate capability to do the work from both a physical and financial standpoint Architect can prepare first draft of A101 by filling in the blanks and adding any special provisions. Then Owner and Contractor’s attorneys should review the full agreement. Insurance: Architect: ▪ Errors & Omissions: Covers cost to repair work due to design defect. Also known as professional liability insurance ▪ Commercial General Liability: Coverage for claims from slips/fails, slander/libel and property damage to third parties Adds Owner as additional insured due to Architect’s negligent acts or omissions ▪ Automobile Liability Adds Owner as additional insured due to Architect’s negligent acts or omissions ▪ Worker’s Compensation: Coverage for injuries sustained by own employees in the course of their work ▪ Employer’s Liability Insurance: Protection from lawsuits and settlements for worker’s work related injuries and illnesses if employer gets sued for punitive damages (functions alongside Worker’s Compensation) Owner ▪ Property Insurance: Covers replacement value of property that may be damaged or destroyed and is not otherwise covered by Contractor’s Builder’s Risk (e.g. damage to another existing wing of a building during construction). May purchase Builder’s Risk as a rider. ▪ Commercial General Liability: Coverage for claims from slips/fails, slander/libel and property damage to third parties General Contractor ▪ Commercial General Liability: Coverage for claims from slips/fails, slander/libel and property damage to third parties Owner, Architect, Architect’s consultants are named as additional insureds ▪ Automobile Liability ▪ Worker’s Compensation: Coverage for injuries sustained by own employees in the course of their work ▪ Employer’s Liability Insurance: Protection from lawsuits and settlements for worker’s work related injuries and illnesses if employer gets sued for punitive damages (functions alongside Worker’s Compensation) ▪ Builder’s Risk: Covers damage to work under construction. This may be a rider on the Owner’s property insurance. Bonds: Cost is ultimately passed on to Owner, covered by Contract Sum. Procured through sureties (insurance companies). Payment Bond: Procured by the GC. Guarantee that Contractor will pay their Subcontractors. Protects Owners against potential mechanics liens and construction delays. Equal to 100% of the cost of the Work. Performance Bond: Procured by the GC. Guarantee that if the Contractor goes bankrupt (defaults), there are sufficient funds available for the Owner to complete the project. In event of default, surety will pay for Owner to complete the work through alternative means. Equal to 100% of the cost of the Work. Bid Bond/Bid Security: Guarantees that if low bidder withdraws after selection but prior to execution of Owner/Contractor agreement, Owner will be reimbursed for the difference between the lowest bid and the nest lowest bid. Equal to stipulated sum or % of bid price ▪ ▪ ▪ Returned to successful bidder after executed contract and performance/payment bonds have been provided Bid Bond is procured from insurance company Bid Security is certified check directly from Contractor Inclusion of liquidated damages is considered in lieu of actual damages for delay. If there is no liquidated damages clause, Contractor may still be liable for actual damages. Owner/Contractor Contract may be terminated or suspended by either Owner or Contractor. Include agreement forms in the Project Manual to reduce risk of referencing an incorrect or out of date form. Cost of the Work: Total cost to construct all elements, including Contractor’s general conditions, overhead, profit. Costs incurred by Contractor to complete the Work. Initially noted in Initial Information provided by Owner and adjusted throughout project. Does not include: Architect’s Fee Cost of land, rights-of-way Financing Contingencies for Changes Architect does not warrant that bids or negotiated prices will not vary from Owner’s budget Estimates provided by Architect during design phases is based on current area, volume or similar. Contingencies: Contractor Contingencies ▪ Incomplete Documents (especially useful in GMP) ▪ Pricing Errors ▪ Anticipated dispute resolution, legal fees, claims ▪ Default or failure by sub (performance bonds also provide protection here) ▪ Errors during construction Owner Contingencies ▪ Costs of Owner directed changes ▪ Unforeseeable site conditions ▪ Errors and omissions within the professional standard of care Architect does not warrant that bids or negotiated prices will not vary from Owner’s budget If all bids come in too high for Owner’s budget, Owner may: Increase budget Authorize rebidding Terminate the contract In consultation with Architect, revise program, scope of quantity to reduce cost Implement mutually acceptable alternative Value Engineering: Same design intent at a lower cost Good approach to managing VE is through substitutions Cost Cutting: Original design is changed to something team hopes is similar but costs less Types of Prices Stipulated (lump) Sum: Single number price ▪ ▪ ▪ ▪ Used in public bids, Design-Bid-Build or Design Build Based on complete construction documents May be included within bids that are generally unit price May be adjusted using allowances, alternates or unit prices Guaranteed Maximum Price: Uses actual costs leveraged against a maximum cost of the work set prior to completion of Contract Documents. Uses “open book” accounting to track actual costs. ▪ ▪ ▪ ▪ ▪ Client has better understanding of costs, can negotiate favorable prices and engage Contractor to control costs Inherent risk in that GMP is based on incomplete documents Typically includes line item pricing and allowances “Open Book” allows transparency of material, overhead costs and contingency status to Owner Used in accelerated schedules, Design Build, CM-C Cost Plus (T+M): Actual cost of direct expenses of construction plus fixed overhead/profit fee ▪ ▪ ▪ ▪ ▪ Unit Prices: Sets predefined costs for material, labor, equipment, fees, taxes, overhead and profit. ▪ ▪ ▪ ▪ ▪ ▪ Used when basic scope is understood but full extent is unknown or cannot be accurately determined Prevalent for indefinite items (e.g. interior doors for unleased office fit-up) or items modified in quantity site conditions (piles, excavation, reinforcement, concrete) Typically includes estimated quantities in bid form alongside quoted unit price Submits substantiated measurements of quantities with pay apps Final contract sum will be adjusted by change order to reflect actual quantities for unit price items Can reduce disputes between Owner/Contractor during construction and avoid unnecessary friction when changes are made Combination Bid: Used for Multiple Prime Contracts ▪ ▪ Used in small scale projects, unknown/undefined scope or existing conditions, change orders in stipulated sum or GMP May be used for partially completed construction documents that carry a defined scope of work Contractor fees may be fixed or % of actual direct cost Not typically used for bid work (but can be requested via proposal) May be used in combination with GMP Bidder bids on individual part or combination of parts Bidder may quote an amount to be subtracted from the total of the separate bid parts Target Price: Identifies greatest project scope that can be built for a given (target) price ▪ Used in Design Build Alternate: Used to note items in lieu of or in addition to other parts of the work Allowance: Used when the full cost is unknown but the work needs to be included. Includes costs of materials, equipment and taxes. (Does not include cost of labor, installation, overhead, profit. These are included in the Contract Sum.) Contractor’s Overhead: o Licensing fees to conduct business o Salaries/benefits to staff o General office expenses o General accounting, tax, legal expenses o Home office property costs, rent and tax o General rented equipment and furniture (e.g. printer) o Office supplies Responsible Bidder: Bidder that demonstrates financial capacity to perform the contracted work Responsive Bid: A bid in which all bidding requirements, including all of the elements of the bid form, have been satisfactorily completed Disqualified Bid: Typically late or incomplete Bids at minimum must include: Acknowledgement of all bid documents Bid Price Completion date of project Contractor determines form of subcontractor bid to Contractor Value Based Selection: Owner selects Contractor based on the weighted values of multiple criteria. Criteria includes construction cost/fee, proposed schedule and qualifications based criteria like past experience and proposed personnel Qualification Based Selection: Owner selects Contractor based solely on qualifications Procurement Methods: Public Sector: ▪ Lowest, responsive bidder ▪ Value Based Selection ▪ Multiple Prime Private Sector: ▪ Any options including Quals Based Selection ▪ Contractors may be prequalified or by “Invitation Only” ▪ Flexible enforcement of bidding rules and deadlines ▪ Note required to select lowest, responsible bidder ▪ Bids remain private ▪ Owner may reject any bid for any reason ▪ If bids exceed budget, Owner may negotiate with any of the bidders to arrive at a reduced bid amount Printing bid documents sets is reimbursable to Architect Bid RFIs Discuss procedures for RFIS at pre-bid meeting Identify one designated recipient Responses should be distributed to all bidders Responses to RFIs are not considered part of the Contract Documents unless they are issued as an Addendum to all bidders Last day to submit RFI is 7 days prior to bid date Substitution Requests: All substitution request responses must be distributed to all bidders and issued in an Addendum (to make it part of the Contract Documents) Good approach to managing VE Review of substitutions proposed by Owner or Contractor is an Additional Service Burden of proof is on the proposer of the substitution Process ▪ Bidders must send written requests to Architect at least 10 days prior to bid due date ▪ Requests must include Name of the material/equipment specified in Contract Documents Reason for requested substitution Complete description of the proposed substitution (name, performance/testing data, relevant drawings) Any additional information necessary (e.g. impact to other areas of the Work, LEED accreditation) ▪ Architect documents in Addenda ▪ Substitutions will not be considered after award, unless specifically provided for in Contract Documents Substitutions for Cause: due to unavailability of product, regulatory changes, prohibitive warranty conditions Substitutions for Convenience: Don’t have to allow. If allowed, limit to controlled amount of time after the notice to proceed or start of work (60 days is suggested) Bid Opening Architect or Owner’s rep timestamps bid with receipt date/time (late bids are returned) ▪ Public Projects: Opened in public forum Incomplete forms are disqualified Complete bids are read aloud Final selection/evaluation may take weeks ▪ Private Projects: Opening is typically private (at Owner’s discretion) Architect should not reveal results without Owner’s approval Owner awards contract to Contractor Bidder who identifies clerical error may notify Architect of error within 2 days and request withdrawal of bid Owner has right to reject any and all bids. Owner has right to waive informalities and irregularities in bid and determine the lowest responsible bidder on the basis of the Base Bid and any combination of Alternates accepted. Financial Capability Prior to expiration of time to withdrawal bids, Contractor may request proof from Owner of financial capability and arrangements to fulfill payment obligations. ▪ If Owner does not provide, Contractor does not have to execute agreement with Owner After Work begins, Contractor may request proof only if: ▪ Owner has not made payments ▪ Contractor has a reasonable concern about Owner’s ability to pay ▪ Change in the Work that materially changes the Contract Sum ▪ If Owner does not provide within 14 days, Contractor may immediately stop the Work affected. Owner then owes Contractor costs for startup/shutdown/delay, plus interest. Contract Time must be increased. Prior to Owner/Contractor agreement execution, Contractor must show proof of: Builder’s Risk Worker’s Compensation, insurance, etc. Performance Bond Payment Bond Evidence of compliance with local licensing laws and incorporation in the state of the project Compliance with equal employment opportunity laws (public only) Subcontractors: Immediately following notice of award, Contractor to submit list of proposed subcontractors for Owner/Architect review and approval. Owner/Architect have 14 days to review and object. Architect to notify Contractor if Owner has objections. No notice of objection within 14 days constitutes no reasonable objection. ▪ If Owner/Architect determine that Subcontractor doesn’t meet requirements of Contract Documents, Contractor must select and propose an alternate subcontractor that does meet requirements. No additional cost to Owner. ▪ If Subcontractor does meet requirements but Owner rejects for another reason, Contractor must replace subcontractor and Owner must pay difference in cost. Contractor is not required to contract with anyone they have a reasonable objection to All communications to Subcontractors go through Contractor. Separate Forces: Owner must provide notice if they intend to use separate forces. Separate forces and Contractor must have mutual respect and responsibility. Notice to Proceed: Signifies construction start Owner’s authorization Typically in letter format Can be sent by Architect on Owner’s behalf at Owner’s directive Should include requirements for completion per Owner/Contractor agreement Architect does not have the authority to direct the work to proceed Preconstruction Meeting: Best for Architect to conduct as they control essential administrative procedures during CA Distribute agenda in advance Communication protocols are established here Contractor to provide essential information upfront (superintendent, subcontractor list, schedules, schedule of values, insurance bonds, permits, etc.) Site Visits: Conducted at intervals appropriate to the stage of construction to: ▪ ▪ ▪ Observe progress/quality of the Work Determine conformance to design intent Report findings to Owner Recommend outlining total quantity of visits versus frequency, as need to visit site will vary Agreeing to more stringent requirements increases risks and affects insurability Increased site visits will not assure detection of all nonconforming Work If Owner opts to have Architect as “onsite project representation”, this does not increase Architect’s standard of care. This is also called a “clerk of the works” (can be provided as an additional service) Field Reports (G711): Reflects status of construction at the time of the site visit by noting the following: ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Date Time Weather Sequentially numbered Work in Progress Note observed discrepancies Document field conversations Visual observations Action Items (with responsible parties and due dates) Do not comment on: ▪ Site safety (report safety concerns that present danger to life and limb to superintendent onsite) ▪ Expected completion dates ▪ Temporary facilities ▪ Means/Methods Use qualifying language (e.g. “appears to be”), not absolute Note observed nonconforming work, track until resolution Field Reports are considered inadequate documentation when a changes carries time and cost impacts. These must be documented in a CCD or Change Order Hazardous Materials Contractor notifies Owner of discovered hazardous materials Owner procures abatement service Nonconforming Work: Work that does not conform to the requirements of the Contract Documents. Architect to identify in field has right to reject. When rejecting, notify Owner. Owner may decide to accept and override Architect’s rejection. Do not make these decisions without consulting Owner. If Owner decides to accept, contract sum should be equitable reduced by Change Order If Owner’s acceptance conflicts with code or endangers life safety, Architect must object in writing and insist on correction. All Owner accepted nonconforming work should be noted as exclusions in Architect’s certificate of substantial completion Concealed Conditions: If physical conditions at site, that are subsurface, concealed or of unusual nature and that differ materially from Contract Documents are observed, then the observing party will notify within 21 days of observation. After notification, Architect to investigate and recommend equitable adjustment to Contract Sum and/or Time Uncovering Work: If Contractor has covered work that was required in Contract Documents to remain uncovered until Architect could review in field, Contractor must uncover/recover at their own expense If Architect suspects that covered work does not meet requirements of Contract Documents: ▪ Architect to advise Owner of concern and order Contractor to uncover ▪ Contractor to uncover: If work does meet requirements of Contract Documents, Owner must pay cost for uncovering/restoration If work does not meet requirements of Contract Documents, Contractor must pay cost for uncovering/restoration Hazardous Materials Upon discovery, Contractor must stop the Work in that area and notify Owner/Architect Owner procure lab to test material in question and perform abatement services. ▪ Architect and Contractor have opportunity to share for reasonable objections to lab and abatement services team. When area is rendered harmless, Work in area can resume Contract Sum and Time are modified to address Contractor’s loss in shutdown, delay, start up Owner is not responsible for hazardous materials that Contractor brings to site. Contractor to reimburse Owner, if Owner has to remediate substances Contractor brought in. Request for Information (G716): Owner, Architect and Contractor all use it. Documenting processing time is important. Upon receipt, record in RFI log, noting: Date received Relevant specification section Parties involved RFIs to include, at minimum: ▪ Detailed written statement ▪ Drawing/Spec in need of clarification ▪ Nature of clarification requested Reply within agreed time limits or reasonable promptness Change Order (G701): Change to Contract Documents with a revision in Contract Time or Sum with full agreement by Owner, Architect and Contractor. Architect to prepare Owner, Architect, Contractor to sign Contract Change Directive (CCD): Change to Contract Documents with a revision in Contract Time or Sum where agreement has not been reached but change must take place regardless of the time or cost implications. Architect to prepare Owner, Architect to sign Contractor implements Work Agreement between Owner, Architect, Contractor will continue to be negotiated After agreement is reached, Change Order is issued. Contractor can submit for cost of CCD in payment application without agreement being reached. Architect’s certification of payment application as is (or revised certified amount) then carries approval. If Contractor cannot make agreement with Owner/Architect, they can file a claim. Architect’s Supplemental Instructions (ASI): Directive by Architect for Minor Changes to the Work that carry no time or cost implication and align with design intent of Contract Documents Prepared and signed by Architect Submittals: Architect’s review and approval is limited purpose of checking conformance with given information and design intent expressed in the Contract Documents. Architect does not verify or determine: ▪ Dimensions ▪ Fasteners ▪ Means ▪ Methods ▪ Techniques ▪ Sequences ▪ Quantities Architects should not review: ▪ Submittals that are the responsibility of other design professionals ▪ Submittals not required by Contract Documents ▪ Crane support details ▪ Temporary safety designs (safety and temporary structures are sole purview of Contractor) ▪ Earth retention design (temporary structures are sole purview of Contractor) Types of Submittals may include: ▪ Shop drawings ▪ Samples ▪ Schedules ▪ Cut Sheets Informational Submittals: ▪ For Architect’s information that Contractor has met its contracted submittal obligations ▪ May include coordination drawings, performances-based engineering calculations (which are the Contractor’s responsibility) Initial Decision Maker (IDM): Renders initial decision on all claims. Architect is the IDM unless a 3 rd party is named in the Owner/Contractor agreement. Recommend for any prescribed review times in agreements be noted as “average” review times Architect’s failure to note nonconformance in submittals does not relieve Contractor of obligation to full meet the specifications Architect’s review should follow submittal schedule or (if there isn’t one) be done with reasonable promptness If Contractor is required to provide professional design services: ▪ Architect will specific performance and design criteria ▪ Architect will review prepared shops/submittals if they contain professional’s signature/seal ▪ Architect is entitled to rely on Work and approvals provided by design professional Use a 3rd party if claim involves Architect’s services Assisting a 3rd party IDM or administering an extensive number of claims is an additional service Payment Applications: Payment cannot be made without Architect’s certification. Owner must pay amount certified. Notarized payment application by Contractor warrants the following: ▪ Materials and equipment furnished are new ▪ Work is free of defects ▪ Work is in conformance with Contract Documents ▪ All subcontractors have been paid for previously received amounts (lien waivers) ▪ Current request amount is correct Architect’s certification is based on Contractor’s warranted representation and that to the best of Architect’s knowledge, information and belief: ▪ ▪ ▪ Work has progressed to point indicated Work is in conformance with Contract Documents Contractor is entitled to amount certified ▪ Subject to: Evaluation of Work at Substantial Completion Result of subsequent tests/inspections Correction of minor deviations prior to completion Specific qualifications set by Architect Architect to consider if there are remaining funds for an outside contractor to be brought in to complete the work Architect should not certify payments on work provided by Owner’s consultants If payment application includes any materials stored offsite, Contractor must have prior approval from Owner and pay app should include proof (paid invoices from suppliers, notice of passing title to Owner) Process ▪ 10 days prior to progress payment, Contractor submits Payment Application to Architect for review. It includes the following: Application for Payment (G702): o Notes total cost of the Work o Includes Change Order summary o Summarizes work to date and payments to date o Lists retainage amounts o Lists balance to complete o Lists amount due Continuation Sheet (G703): o Lists every trade and their full value o Lists portion of the Work completed to date o Notes calculated amount due and retainage ▪ Architect has 7 days to review application. Review is typically coordinated with scheduled site visit. Can do a pencil copy review with Contractor to discuss and mutually agree on amount due. ▪ If Architect certifies for full amount, they send to Owner. Owner must make payment by date established in Contract Documents ▪ If Owner does not pay within 7 days of due date, Contractor notifies Owner and Architect in writing. After 7 additional days have passed, Contractor may suspend the Work and is entitled to receive additional Contract Sum and Time to cover the suspension. If Architect certifies for a revised amount or does not certify, they notify Owner and Contractor in writing and share reason. If Contractor takes issue, they can submit a Claim. Project Completion: Begins when Architect determines substantial completion Punch List: List of items requiring completion or correction at time of Substantial Completion. Generated by Contractor. Attached to or referenced by Substantial Completion Certificate Architect may prepare as an Additional Service Substantial Completion: Sufficient for Owner to occupy or use for its intended purpose When Contractor believes they have reached substantial completion, prepares punch list and requests Architect visit to make an inspection. Architect makes site visit to inspect the Work and verify if Contractor has reached substantial completion. Conducted with Owner. Architect to: ▪ Check conformance of Work with Contract Documents ▪ Verify accuracy/completeness of punch list submitted by Contractor ▪ If Architect determines that Contractor hasn’t reached substantial completion, Architect prepares list of Work that needs to be amended or completed. Contractor makes necessary modifications and requests Architect makes another inspection. Architect prepares Certificate of Substantial Completion: ▪ Establishes date of Substantial Completion (starts 1 year timeclock for warranty, may trigger reduction of retainage) ▪ Notes work Contractor needs to complete to reach Final Completion ▪ Notes Owner accepted nonconforming Work ▪ Determines responsibilities for Owner and Contractor ▪ Sets date for Final Completion Architect to notify Owner of balance of Contract Sum remaining, including retainage Forward the following to Owner: ▪ Consent of surety to reduction in retainage of making of final payment ▪ Affidavits, receipts, releases, waivers of liens or bonds indemnifying Owner against liens Architect does not certify or inspect for Owner’s consultant’s portion of the work Reaching substantial completion does not mean all of the work is completed, however any remaining work must not prevent the Owner’s use of the building When retainage is released, typically leave balance to cover cost of remaining punch list completion (usual to hold double the amount). Occupancy by Owner does not mean that substantial completion has occurred Date of Substantial Completion impacts: ▪ Building use ▪ Utility expenses ▪ Insurance coverage ▪ Legal status ▪ Completion penalties/bonuses ▪ Warranty start dates ▪ Statue of limitations for claims begins Final Completion: Work is fully completed in accordance with Contract Documents When Contractor believes they have reached final completion and all closeout documents have been sent to Architect, they request that Architect makes an inspection. Architect sends closeout documents to Owner. They should include: Architect makes site visit to inspect the Work and verify if Contractor has reached final completion. Conducted with Owner. Architect to: ▪ Check conformance of Work with Contract Documents Architect prepares final Change Order documenting final adjustments: ▪ Outstanding changes ▪ Allowances ▪ Contingencies ▪ ▪ ▪ ▪ ▪ Contractor prepares final Payment Application Architect reviews and issues final Certificate for Payment ▪ Unit Prices Owner rebates/credits Outstanding Architect’s add services Completion bonuses Penalty assessments Indicates that to the best of Architect’s knowledge, information and belief, Work complies with requirements of Contract Documents Owner makes final payment signifying end of construction Architect does not certify or inspect for Owner’s consultant’s portion of the work Construction phase ends when Owner makes final payments to Contractor Project Closeout Documents: ▪ Guarantees and waivers ▪ Final waivers of liens ▪ Completed punchlist ▪ Final Change Order Project Closeout Phase: Architect’s CA services end at Final Completion or 60 days after Substantial Completion, whichever is earlier. Time beyond that warrants a change in service Document organization/retention by Architect: ▪ Keep project documentation per state’s statues of limitations or service contract (whichever is longer) ▪ Retain for marketing, risk management or future use by Owner ▪ Identify unique project number ▪ Document lessons learned Architect to meet Owner, if requested and without compensation, prior to expiration of 1 year from Substantial Completion, to review facility operations and performance Warranties | Guarantees Warranty: Covers services rendered or products created by the company marking the warranty Guarantee: Made by one party for the goods or services of another party ▪ e.g. Contractor provides warranty for their own work, Insurance Company provides guarantee for Contractor’s work Contractor provides 1 year warranty on the Work ▪ Materials and equipment furnished are new ▪ Work is free of defects and conforms to Contract Documents Post Construction Add Services: Architectural Interior Design Conformed construction documents (roll up all revisions into one combined set) As-designed record documents As-constructed record documents Postoccupancy evaluation Facility Support Services Tenant-related Services Security Evaluation and Planning Commissioning LEED Certification FF&E Design Maintenance and operational programming Start-up assistance Warranty review Post-contract evaluation Move-in assistance Disaster planning Energy analysis and monitoring Forensic analysis Spell out warranties above and beyond Contractor’s 1 year in specifications (include length and who backs it) Use G802 to contract additional services requested post construction to tie it to original agreement. This keeps it within the limits of the original statute of limitations timeline. Claims: Governed by state law in which Project is located (including Owner/Architect agreement) Claims for damages must be made within 21 days of discovering issue Claims must be made within 10 years of date of Substantial Completion or within Statue of Limitations, whichever is less While claim is underway, Contractor must continue performing the contract and Owner must continue paying If claim is subject of a lien, follow law and comply with filing deadlines prior to resolution by mediation or binding dispute resolution Process: Initial Decision Maker ▪ Initiated by notice to other party and Initial Decision Maker (Architect) for ruling. If Claim initiates more than one year after Substantial Completion, involves hazardous materials, emergencies or insured losses, this step is skipped and claim moves right to meditation. ▪ IDM reviews claim and takes action within 10 days of receipt. Action can include requesting additional data, rejecting claim, approving claim, suggesting compromise, or advising that they are unable to resolve it. ▪ If 3rd party with special knowledge is needed to help evaluate, Owner to pay cost Parties supplying requested information must reply within 10 days of receipt with next steps. Initial decision is binding, final but subject to meditation and binding dispute resolution. Meditation ▪ Either party may file for mediation of initial decision at any time, unless: Within 30 days of IDM ruling, one party demands that the other party files for meditation. If they do not file within 30 additional days, both parties waive right to mediate or pursue binding dispute resolution. ▪ Request for meditation may be made concurrently with filing for binding arbitration or litigation. Meditation would proceed. Arbitration/litigation is stayed for minimum of 60 days from date of filing so meditation can move ahead. May go ahead and schedule/select arbitrator ▪ Share meditator’s fee/filing fees equally ▪ Held in the place of the Project or a mutually agreeable location ▪ Agreements are enforceable as settlement agreements in any court Arbitration | Litigation ▪ Either party may file for binding dispute resolution No earlier than concurrently with request for meditation No later than 10 years after Substantial Completion or expiration of statute of limitation (whichever is earlier) Exception: o Within 30 days of meditation concluding or 60 days after originally demanded, one party demands that the other party files for meditation. If they do not file within 60 additional days, both parties waive right to mediate or pursue binding dispute resolution. ▪ Held in the place of the Project or a mutually agreeable location ▪ Award rendered in final ▪ Cannot be appealed without proof of fraud ▪ If no binding dispute method is selected, defaults to litigation Binding Arbitration: Faster, more informal and less expensive than litigation. Rulings are private. Arbitrators overseeing process are likely to be experts in construction issues. Subrogation: Typically waived. After insurance company pays out claim, insurance company files suit with the party at fault to reimburse themselves. Consequential Damages: Indirect losses that result from wrongdoing by one party. Typically waived. Examples include: ▪ ▪ ▪ Architect designed roof improperly, it leaked and damaged a Picasso in the process. If consequential damages are not waived, Architect would have to pay to fix both the roof and the Picasso. Damages incurred by Owner for rental expenses, loss of use, income, profit, financing, business, reputation Damages incurred by Contractor for principal office expenses, loss of financing, business, reputation, profit (except that directly arising out of the Work) Liquidated Damages: Penalty when Contractor fails to adhere to Contract Time and meet Substantial Completion within set timeline. Predetermined amount, typically assessed per day, that represents actual cost to Owner for Contractor’s delay ▪ Owner does not have to file claim to impose Consolidation: Joining arbitration claims that are substantially similar in terms of law or fact and employ similar procedural rules and methods. Permitted. Joinder: When one party sues two parties together or two parties sue one together regarding common questions of law or fact. Requires express permission of those being joined so it’s likely difficult for one party to sue two together. Permitted. Force Majeure: Acts of God Statute of Limitations: All Claims must be initiated within the state’s statute of limitations and no more than 10 years of date of Substantial Completion, whichever is less Unjust Enrichment: Party A has unfairly benefitted at expense of Party B Suspending the Work | Contract Termination Contractor ▪ Suspension Owner has not paid 7 days past due date (after 7 days written notice from Contractor). Contract Sum/Time adjusted to account for shutdown/startup/delay plus interest. ▪ Owner has not demonstrated proof of financial capacity to pay for work (after 14 days notice), may immediately stop the Work. Only shut down affected area. Contract Sum/Time adjusted to account for shutdown/startup/delay plus interest. Discovery of hazardous materials. Immediately stop the Work. Only shut down affected area. Contract Sum/Time adjusted to account for shutdown/startup/delay. If Owner fails to purchase and maintain required property insurance, Contractor may delay commencement of the Work. Contract Sum/Time to be equitable adjusted. Termination If Work has stopped for 30 consecutive days through no act or fault of Contractor due to (7 days notice): o Order from AHJ or court o Act of government (e.g. national emergency) o o o Architect has not issued Certificate of Payment or notified Contractor of reason for withholding Owner has not made payment within time listed in Contract Documents Owner has failed to furnish evidence of financial capacity ▪ Owner pays for Work executed and reasonable overhead/profit on Work not executed, costs incurred by termination Repeated delays constitute in aggregate more than 100% of total number of days for completion or 120 days in any 365 day period, whichever is less (7 days notice) o Owner pays for Work executed and reasonable overhead/profit on Work not executed, costs incurred by termination Work has stopped for period of 60 days because Owner has repeatedly failed to fulfill obligations (7 days notice) o Owner pays for Work executed and reasonable overhead/profit on Work not executed, costs incurred by termination Owner ▪ Suspension If Owner suspends, must compensate Architect for services already performed, pay for shutdown/startup. Remaining fee to be adjusted. ▪ If suspending without cause, order Contractor in writing to suspend, delay or interrupt Work: o Contract Sum/Tim adjusted for suspension (including profit) Notice of impeding/actual cancellation or expiration of Contractor’s insurance constitutes a reason to suspend the Work Termination If Architect substantially fails to perform (7 days notice) For convenience and without cause (7 days notice) o Must compensate Architect for services already performed, reimbursables, cost attributable to termination (including termination of Architect’s Consultant contracts). Pay termination fee and licensing fee (if Owner intends to continue using Architect’s Instruments of Service) o Contractor must cease operations and protect Work in place. Owner to pay Contractor for work properly executed, costs incurred by termination, termination fee For cause, if Contractor (7 days notice): o Repeatedly fails to supply appropriate labor or materials o Fails to make payments to Subcontractors o Repeatedly disregards laws, statues, ordinances, codes, etc. o Otherwise guilty of substantial breach of a provision of Contract Documents ▪ Exclude Contractor from site, take possession of all materials, equipment, tools, equipment, etc. Accept assigned of Subcontractors. Finish work by whatever reasonable means Owner decides is expedient. Contractor is not entitled to received further payment until Work is finished. If unpaid balance of Contract Sum exceeds costs of finishing the Work, excess is paid to terminated Contractor. If cost to complete work exceeds unpaid balance, Contractor owes the difference to the Owner. Architect ▪ Suspension Owner not paying (7 days written notice) o Owner must pay amount due and for costs incurred for interruption/resumption. Architect’s remaining fee is adjusted. ▪ Owner has suspended project for more than 90 cumulative days (7 days written notice) o Owner must compensate Architect for services already performed, reimbursables, cost attributable to termination (including termination of Architect’s Consultant contracts). Pay termination fee and licensing fee (if Owner intends to continue using Architect’s Instruments of Service) Owner has substantially failed to perform (7 days written notice) Agreement itself terminates (1) year after date of Substantial Completion Photographs | Marketing: Unless Owner has terminated for cause: Termination Owner not paying (7 days written notice) Architect has right to include photographs/artistic representations of design in professional materials. Owner must give reasonable access to completed project for photography Owner must give professional credit to Architect in promotional materials Architect’s Fees If Architect’s fee is based on % Cost of Work and portions of the Work have been deleted from scope, Owner still must pay Architect for Work already performed. Progress payments are due to Architect on a monthly basis. Owner may not withhold Architect’s compensation to impose penalty, liquidated damages or to offset cost of Changes to the Work. Architect must have either agreed to reduction or have been found liable. Reimbursables: ▪ Transportation and out of town travel/subsistence ▪ Long distance services, Project web sites, extranets, teleconferences ▪ Permitting/fees required by AHJ ▪ Printing, plots, standard form documents ▪ Postage, handling, delivery ▪ Expense of overtime that requires higher than usual rates (prior authorization required) ▪ Renderings, physical models, mockups, professional photography, presentation materials ▪ ▪ ▪ ▪ Insurance coverage or limits in excess of amounts normally maintained/PLI exclusive to project Taxes on professional services and reimbursable expenses Site office expenses Registration fees or similar changed by Certifying Authority to achieve Sustainable Objective Miscellaneous Meeting with a Subcontractor is unnecessary when the Architect can fully document the change that has been requested. Only communicate with Subcontractors through the Contractor. Avoid all absolute expectations (e.g. 100% CD set) as they increase the standard of care Elevator shop drawing review would include Architect, Electrical Engineer and Structural Engineer Concrete Tests: Slump Test: Tests workability. Uses cone. If it collapses, it’s too wet. Cylinder Test: Test compressive strength Performance Mockup: ▪ Ensure safety/welfare of occupants in constructed design ▪ Validate if it meets design intent ▪ Pinpoint potential issues Deformation Testing: Preconstruction load test for a member In Situ Load Testing/Structural Analysis: Used for analysis of an existing or just built structure Strawbales: ▪ High R-Value (35-50 in typical wall assembly) ▪ Lightweight (reduces foundation wall load/depth) ▪ Reduces sound transmission (due to mass) Critical Operations Power System: ▪ Requires commissioning ▪ Used in buildings that must maintain ability to operate during emergency (e.g. banks, hospitals) AIA Documents A101: Owner/Contractor Agreement (Stipulated Sum) A201: General Conditions A701: Invitation to Bid B101: Owner/Architect Agreement C401: Architect/Consultant Agreement G701: Change Order G702: Payment Application G703: Continuation Sheet G711: Field Report G716: RFI