Construction Administration for Architects About the Authors GREG WINKLER, AIA, LEED AP, is a principal in Green Lizard Management, a project management fi rm that provides owner representation and project management services to corporate, developer, and institutional clients. An architect with over 25 years of experience in affordable housing, offi ce buildings, industrial/ commercial, and retail construction, he was a contributor to the Southern Solar Energy Center publication The Passive Solar Design Handbook. GARY C. CHIUMENTO, Esq., is the founder of Chiumento McNally LLC, a fi rm specializing in construction-related law. The fi rm’s clients include architects, engineers, surveyors, construction management companies, and various construction professionals. He has pub- lished numerous articles on topics of interest to the design and business community and is a frequent speaker on professional liability issues. Construction Administration for Architects Greg Winkler, AIA, LEED AP Gary C. Chiumento, Esq. New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul Singapore Sydney Toronto Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher. ISBN: 978-0-07-162530-2 MHID: 0-07-162530-5 The material in this eBook also appears in the print version of this title: ISBN: 978-0-07-162231-8, MHID: 0-07-162231-4. All trademarks are trademarks of their respective owners. Rather than put a trademark symbol after every occurrence of a trademarked name, we use names in an editorial fashion only, and to the benefit of the trademark owner, with no intention of infringement of the trademark. 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To Frank Vitetta, Alan Hoffman, Michael Minton, Richard Holland, the Becicas, Mitch Franken, Rick Piccolli, Peter Coote, Ben & Beth Kitchen, Jack Bauerle, and Keith Palmer, who taught me the business and who always held up to me a shining example of professionalism. Gary C. Chiumento, Esq. This page intentionally left blank Contents Preface..........................................................................................................xv Acknowledgments ...............................................................................xvii CHAPTER 1 The Construction Process...................................................................1 Construction Administration Is Contract Administration ......................2 Private- versus Public-Sector Construction ................................................2 The Agreements .................................................................................................4 The Importance of Written Agreements .............................................4 Types of Agreements ...................................................................................5 Homemade Contracts ...............................................................................6 Recommended Owner-Architect Contract Provisions ..........................7 The Triangle .......................................................................................................10 Design-Bid-Build (DBB) ...........................................................................10 Design-Build (DB) .....................................................................................11 The Triangular Relationship ....................................................................12 Fast-Track Project ........................................................................................14 The Consultant Team ...............................................................................14 Supporting Players ..........................................................................................15 The Cast of Characters ..................................................................................16 The Owner ....................................................................................................16 The Program .........................................................................................17 The Location ..........................................................................................18 Legal Support of the Project ...........................................................18 Administrative Support ......................................................................19 The Architect/Lead Design Professional ............................................20 Technical Consultants ........................................................................22 Schedulers and Estimators ..............................................................23 vii viii C ONTENTS Administrative Support ......................................................................23 The Contractor .............................................................................................23 Contractor Obligations ........................................................................24 Pricing the Work ....................................................................................25 The Process .......................................................................................................26 Design ............................................................................................................28 Refi ne .............................................................................................................29 Defi ne .............................................................................................................30 CHAPTER 2 Agreements and Contracts ...................................................33 The Owner-Architect Agreement ...............................................................34 Defi ning Scope ............................................................................................34 Risk Reduction Tools .................................................................................35 Indemnifi cation—A Trap for the Unwary ..........................................36 Limitation of Liability .................................................................................37 Certifi cations and Assurances ................................................................39 Exclusions and Additional Services ......................................................39 Termination or Suspension of Services .............................................40 Project Schedule.........................................................................................41 Construction Contract Administration .................................................41 Construction Costs .....................................................................................44 Risk Reduction Tools .................................................................................46 Deliverables ..................................................................................................46 Field Observations .....................................................................................47 Alternate Dispute Resolution .................................................................48 The Owner-Contractor Agreement ...........................................................49 Insurances and Indemnities ...................................................................50 Third-Party Relationships .........................................................................52 Ambiguities and Inconsistencies ..........................................................53 Specifi cations, Submittals, and Substitutions ........................................54 Timeliness and Scheduling Issues ..........................................................55 Schedule of Values .......................................................................................57 Communications and Notifi cations ..........................................................58 CHAPTER 3 Construction Documents ......................................................59 Do Your Research ...........................................................................................59 CONTENTS ix Risk Reduction Tools ......................................................................................60 The Goals ...........................................................................................................61 Tightening the Construction Documents................................................65 Specifi cation Protection .................................................................................67 General Specifi cation Sections ...................................................................67 The Front-End ...................................................................................................68 General Conditions ....................................................................................69 Supplementary Conditions .....................................................................70 Bid Strategy........................................................................................................71 Drawing Note Protection ..............................................................................71 Covering Project Scope .................................................................................73 Hidden Conditions ...................................................................................74 Diffi cult Details ...........................................................................................75 Coordination Problems ............................................................................75 Extent of Work .............................................................................................78 Repair and Renovation Work .................................................................78 Intersections and Closures .....................................................................79 Construction Document Checking ............................................................81 Credits in the Construction Documents .................................................83 Money in the Bank ....................................................................................83 Examples of Hidden Specifi cation Credits ........................................85 Constructability Reviews ...............................................................................85 Cost Estimate Preparation ............................................................................88 Sample Disclaimer .....................................................................................89 Client Management ...................................................................................90 CHAPTER 4 Bidding and Negotiation .......................................................91 Selecting Contractors .....................................................................................92 The Pre-Bid Conference ...............................................................................95 Bidding Toolkit ..................................................................................................97 Estimated Quantities .................................................................................98 Estimated Quantities and Unit Prices ...............................................99 Allowances ..................................................................................................101 Add and Deduct Alternates .................................................................102 Add Alternates .....................................................................................102 Deduct Alternates ..............................................................................104 Unit Prices ..................................................................................................105 Phasing Information ...............................................................................105