Term
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Definition
| when an owner structures their own project teams, lead by a third party project manager. |
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Term
| Key Construction Delivery Methods |
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Definition
Design-Bid-Build, Design-Build, Construction
Management |
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Term
| Key Professional Delivery Methods |
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Definition
Owner/Architect (with consultants, Multiple Prime,
Joint Venture |
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Term
| Architect’s coordination responsibilities |
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Definition
should be limited to coordinating services with
those of the consultants or other design professionals retained by the owner. |
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Term
| Architect-Consultant Agreement |
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Definition
architect assumes primary contractual responsibility to
the owner for the accuracy and completeness of the work of the architect’s consultants.
• If something goes wrong, the architect can be held liable.
• Agreement should parallel owner-architect agreement
• The architect should never assume responsibility for internal coordination of any other
design professionals work. |
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Term
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Definition
a design professional holds an agreement directly with the owner or their project manager. The owner may:
• Provide overall coordination of the multiple prime design professionals, including the architect, through in-house staff
• Assign coordination to a project/program manager
• Allocate coordination to one of the design professionals...maybe the architect |
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Term
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Definition
a contractual union between two or more firms for one or more specific projects.
• Enables firms to combine key resources while allowing each participating firm to pursue other projects.
• Essentially like a partnership
• Retains no and pays no income taxes...it passes profits and losses and tax liabilities to its participating members.
• Participating firms are individually and jointly liable to the client and others for the services offered by the joint venture.
• Typically formed only for the purpose of seeking a specific project.
• E.g.: a international firm joins with a local firm to complete a project |
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Term
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Definition
| SF Cost Estimates; based on occupancy, size & type of construction |
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Term
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Definition
| Itemized break down of costs |
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Term
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Definition
| Used by firms to determine the amount of time spent on billable work as a percentage of total time the employee is compensated. UR = billable hours / total hours |
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Term
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Definition
| process to get the best value for the project using similar, but more affordable materials and techniques |
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Term
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Definition
| financial analysis of a building project which involves cost/return on investment |
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Term
| Cost of money or debt service |
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Definition
| principal and interest payments |
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Term
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Definition
| federal tax benefit with the idea that a building loses value as it ages |
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Term
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Definition
| used to finance non revenue collecting facilities |
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Term
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Definition
| Used to finance revenue collecting projects (tolls, etc) |
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Term
| methods of calculating fees for architectural services |
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Definition
Multiple of Direct Salary Expense (DSE)
Multiple of Direct Personnel Expense (DPE)
Professional Fee plus Expenses
Hourly Billing Rate
Stipulated/Lump Sum
Percentage of the cost of work
Unit price contract |
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Term
| Multiple of Direct Salary Expense (DSE) |
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Definition
everyone’s direct salary/wages multiplied by a factor to cover fringe benefits (e.g. Employee health insurance),
overhead, and profit |
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Term
| Multiple of Direct Personnel Expense (DPE) |
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Definition
| fringe benefits are included in direct salary/wages...that expense is multiplied by a factor to cover overhead and profit |
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Term
| Professional Fee plus Expenses |
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Definition
professional services are separated from the
services from identified costs (reimbursables, consultants, etc) |
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Term
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Definition
project is billed at standard rates for every hour worked. Often
this is to a “not to exceed” value without consent of the owner. |
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Term
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Definition
| a specific amount is agreed upon for the total payment |
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Term
| Percentage of the cost of work |
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Definition
| based on a percentage of construction cost |
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Term
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Definition
| based on acceptance and incorporation of unit price quotes for the various portions of the project |
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Term
| fixed percentage contingency |
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Definition
| (5-10%) in complex or remodel jobs to address any unforeseen problems or issues that come up during the design and/or construction |
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Term
Traditional design fees:
Architecture
Mechanical
Electrical
Civil
Structural |
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Definition
Architecture = 10% of construction
Mechanical = 15%
Electrical = 12.5%
Civil = 10.5%
Structural = 9.4% |
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Term
Traditional contractor fees:
General Overhead
Project Overhead
Profit |
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Definition
General Overhead = 8-10% value of firm value
Project Overhead = 4-10% of construction cost
Profit = 15-20% for small jobs
10-15% large jobs
5-10% very large jobs |
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Term
Traditional construction fees:
Construction Cost
Construction Budget
Contractor's OH/Profit
Surveys, testing, fees, FF&E |
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Definition
Construction Cost = Amount of $$ to build
Construction Budget = 85% construction cost
Contractor's OH/Profit = 15-40% construction cost
Surveys, testing, fees, FF&E = 15% |
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Term
Traditional project budget:
Site Acquisition
Utility/Off Site Construction
On Site Construction
Building Construction
Contingencies
Professional Services
Inspection and Testing
Financing |
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Definition
Site Acquisition = not included in project budget
Utility/Off Site Construction = not included in project budget
On Site Construction = 10-20% of construction cost
Building Construction = 10-15% of construction cost
Contingencies = 5-10% of construction cost
Professional Services = varies
Inspection and Testing = varies
Financing = varies |
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Term
| Cost Projection Objectives |
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Definition
• Complete the project within the financial limits set by the owner
• Provide an appropriate use of resources/value for the money within the budget
• Optimize longer-term life cycle costs by examine alternative that offer the best balance
between upfront costs and maintenance costs
• Provide the owner with relative implications to the budget based on owner decisions throughout the project duration.
• Typically architect estimates cannot account for inflation, market conditions, and contractor means and methods. |
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Term
| Cost Projections for a project are based on four factors |
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Definition
• Cost Factors: what influences the project
• Project Scope: what’s included in the building
• Quality: how nice the building will be (construction, technologies, finishes) • Budget: how much the owner can spend |
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Term
| Other factors that influence the construction budget |
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Definition
• Availability of labor and materials (if there’s no work, people will do jobs for cheap, if there is work, prices go up...basic supply and demand principle)
• Labor rates fluctuate depending on cost of living, demand, project location, deadline
• Material prices fluctuate depending on the market, where they ship from, etc
• Convenience of transportation
• The more remote the location the more expensive
• Costs are less predictable in rural areas |
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Term
| Cost Estimating - Pre-Planning/Proposal |
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Definition
based on unit costs (the cost per person, cost per bed, cost
per sf, etc) |
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Term
| Cost Estimating - Programming |
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Definition
| based on unit cost system (cost per sf) based on similar building types and/or functions of spaces |
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Term
| Cost Estimating - Schematic Design |
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Definition
| based on the major elements of each building system (mechanical, electrical, plumbing, structure) |
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Term
| Cost Estimating - Design Development |
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Definition
| based on detailed components (curtain walls, storefronts, lay-in ceilings, etc) |
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Term
| Cost Estimating - Construction Documents |
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Definition
| based on unit rates for construction competes, assembles and systems. This estimate is what pre-bid cost checks and cost breakdowns are based on. |
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Term
| Typical phase breakdown for architectural services |
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Definition
Schematic Design=15%
Design Development=15%
Construction Documents=35%
Bid/Negotiation=5%
Construction Administration=30%
Sometime Project Closeout is broken out to about 2-5%
programming is an extra service |
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Term
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Definition
| number of working days x 5 or 7 |
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Term
| Schedules are impacted and influenced by |
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Definition
• The size of the project
• The complexity of the budget
• The number of people working on the project
• Client action/reaction time (and to an extent, municipal review time) |
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Term
| Risks of extending the schedule |
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Definition
• Can increase costs due to inflation
• Team members could change, causing a learning curve |
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Term
| Risks of shortening the schedule |
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Definition
• Requires people to work overtime (costly/inefficient)
• Requires the need to hire more people (learning curve to project and office standards)
• If no employee changes are made, drawings can turn out poor, uncoordinated, etc
• Generally causes higher costs for design and construction for a lower quality project |
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Term
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Definition
illustrates start to finish dates of a project broken out by activity.
• They focus primarily on schedule management rather than the size of the project or
the relative size of the work elements/activities.
• Can’t show the relationship between activities |
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Term
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Definition
all events expected to occur and operations to be performed in completed a given process are rendered in a form permitting determination of the optimum sequence and duration of each operation.
• The diagram is called a Network Diagram
• Circles are are start and finishes, arrows are tasks, numbers show the time for each
task to occur. |
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Term
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Definition
| the path with the longest required time from start to finish is the basis for the schedule. Activities on this path are called critical activities. |
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Term
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Definition
| range of time during which non critical activities can start/end without affecting the overall schedule |
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Term
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Definition
| individual float times added together don't’ influence the critical path time |
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Term
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Definition
Construction documents are issued in phases and construction begins while design is still being finishes.
• Requires coordination between architects, contractors, and construction managers
• Requires staged bidding, which might result in multiple contractors.
• Can reduce time of project by 10‐30% |
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Term
| Scheduling the five phases of the design process |
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Definition
aries depending on the project size and
complexity, the quality of the client’s program, the design team, and the decision making ability of the client. Generally the following applies:
SD = 1-2 months
DD = 2-6 months
CD = 3-7 months
BN = 3-6 weeks
(contractors: 2 weeks to bid)
CA = varies
Contingencies = 25-50% of length of project |
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Term
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Definition
| Owner + General Contractor Agreements |
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Term
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Definition
| Owner + Architect Agreements |
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Term
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Definition
| Architect + Consultant Agreements (joint ventures) |
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Term
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Definition
| Industry Standard Documents |
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Term
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Definition
| Contract & Office Administration Forms |
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Term
| AIA Contracts - Division One |
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Definition
| The General Requirements Division of the specifications which establishes the administrative/procedural duties of the contractor, architect, owner during construction. |
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Term
| AIA Contracts - General Contract |
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Definition
| The agreements between the owner and the contractor for the construction of a project. |
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Term
| AIA Contracts - General Conditions |
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Definition
| The part of the contract documents which states the rights, responsibilities, and relationships of the parties involved (owner/arch/consultant/contractor/ sub/vendor) |
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Term
| AIA Contracts - Supplementary General Conditions |
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Definition
| Additional conditions, included in the project manual, that are used to modify the General Conditions of the Contract for Construction in order to allow for any specific legal, climatic, or site conditions of the particular project. |
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Term
| AIA Contracts - Special Conditions |
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Definition
| Additional requirements to the Supplementary General Conditions of the Contract for Construction. These requirements are usually requested by government or local building agencies. Special conditions are used when supplementary conditions must be further extended. |
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Term
| AIA Contracts - General Requirements |
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Definition
| defines the specific procedures that a contractor must follow. |
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Term
| AIA Contracts - Single Prime Contract |
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Definition
| A contract for building construction under which one prime contractor is responsible for the entire project, in contrast to having separate contracts. |
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Term
| AIA Contracts - Separate Prime Contract |
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Definition
| One of several owner-contractor agreements for a project, each of which provides for constructing a major portion of the work (general construction, electrical, mechanical, etc.) |
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Term
| A101: Standard Form of Agreement Between Owner & Contractor |
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Definition
• Document Partners with AIA A201: General Conditions
• Contract Document the contractor agrees to are: Agreement, Conditions of the contract
(general and supplementary), drawings, specs, addenda, and any other additional
documents
• Contract supersedes prior negotiations, representations or agreements, written or oral
• The date of the commencement of work is date of agreement unless other date is listed
• Contract time is measured from the date of commencement
• Set the date for substantial completion
• Call out provisions for liquidated damages or early completion bonuses
• Liquidated damages are not a penalty to be inflicted on the Contractor, but must bear an
actual and reasonably estimable relationship to the owner’s loss if construction is not
completed on time.
• If liquidated damages are to be assessed because delayed construction will result in actual
loss to the Owner, the amount of damage due for each day lost should be entered in the
Supplementary Conditions or the Agreement.
• Contract sum is called out in a lump sum amount based on alternates and/or unit prices
• Pay Applications are for 1 month ending on the last day of the month unless specified
differently, and are based on the schedule of values supplied by the contractor.
• Typical progress payment = percentage of contract sum complete or stored on site + state
sales tax (if applicable) – retainage – prior payments
• The last day upon which work may be included in an Application should normally be no less than 14 days prior to the payment due date, in consideration of the 7 days required for the architect’s evaluation of the Application and issuance of a Certificate for Payment and the time subsequently accorded the Owner to make payment.
• Unless owner approve, contractor shall not make advanced payments to suppliers for materials/equipment which has not been delivered & stored on site
• Final payment issued when contractor has fully performed contract requirements (some minor punch list issues can remain) and final certificate of payment is issued by the architect
• Owner to pay w/in 30 days of the final certificate of payment
• Contract can be terminated/suspended by either party per the A201 General Conditions |
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Term
| A201: General Conditions of the Contract for Construction (notes from Schiff-Hardin Lectures) |
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Definition
• Part of the construction contract
• Not a contract, there’s no signatures, and it’s not project specific. It’s generic.
• Most important document in the industry
• Owner is responsible for determining the time limits for construction
• “Pro” contractor documents aren’t included in the contract documents.
• No direct contract between architect/contractor, owner/subcontractor.
• Doesn’t bind/contract architect for anything.
• Architect is intended to be a third party beneficiary in this agreement.
• Architect/consultants are owners of their respective instruments of services.
• Owner will designate in writing who will be the owner’s agent with actual authority
• Architect is not the owner’s agent for dealing with the contractor. Not directly responsible
to owner except for what the architect has to do to complete their contract obligations
• Contractor’s biggest worry is money and they have the right to ask the owner to furnish
evidence that they can pay for the project.
• If contractor fails to do work, or correct work that isn’t agreement with the documents, the owner can stop the work until the problem is fixed.
• If contractor does something wrong, and doesn’t fix it within 10 days of notice, then the owner can pay someone else to do it, and reduce the contract sum by a CO to pay for the corrections.
• Signing the contract by the contractor that the contractor has visited the site, is generally familiar with site, and with the requirements of the documents
• If contractor finds a problem or error, they have to let the architect know (no sandbagging). They can’t play dumb.
• Contractor not required to check drawings against code, but if they see something that doesn’t comply they have to say something.
• Contractor is not liable for errors and omissions made by the architect.
• Contractor is solely responsible for means, methods, techniques, sequences, and safety
procedures.
• Contract is responsible to the owner for acts and omissions of the contractor’s employees,
subs and other people performing work
• Substitutions can only be made with the approval of the owner.
• Warranty is like a guarantee which is being made to the owner and the architect.
• General warranties of quality have no time limit
• Contractor secures and pays for building permit
• If the contractor knows something is illegal and builds it anyway, they’re responsible to fix it
• Type one concealed/unknown site conditions: drawings are wrong based on what architect
or consultant were given.
• Type two differing site conditions: documents are silenced, typically something is missing
• If a concealed or unknown condition is found, then contractor gets an equitable (time and
or money) adjustment.
• Indian Village Clause: if remains, archaeologic sites or wetlands are found, work must stop
until a federal solution is determined.
• Allowance: a placeholder for something not fully designed or specified (e.g.; $5,000 for
cabinets that haven’t been spec’d at the time of bid)
• Contractors often cheat with allowances to look like the lower bidder. Have to take these
out of bids so actual hard prices are being compared to determine lowest bidder.
• Contractor will supply a schedule of the work for the architect’s information. Don’t approve.
• Contractor rarely submits a submittal schedule.
• Submittals that are not required by the contract documents may be returned by the
architect without action.
• Contractor isn’t relieved from responsibility for deviating from the shop drawings if the
architect misses a mistake that isn’t called out by the contractor.
• Indemnification is used in the guise of contribution/allocation of fault.
• Architect will be an owner’s representative when given explicit authority.
• Owner and contractor will try to communicate through the architect
• Architect has the authority to reject work and require to special testing/inspection
• Archie will interpret and decide matters concerning performance under and requirements
of the contract documents. Decisions will be in writing and will be fair and impartial.
• Subcontractors operate under the same rules and procedures as the general contractor
• General contract remains liable to the owner for subs mistakes
• Subs aren’t responsible for other subs (unless they’re sub-subcontractors)
• If a contractor is not paid, they can place a lien on the property. They have 90 days to
send a letter to the contractor, owner, and architect, and then 30 days to file the lien.
• If the general contractor is paid and the subs file a lien, the contractor is responsible to
deal with it.
• Changes are modifications in the work
• Change Order (CO) is usually in writing, signed by the owner, contractor, and architect to
say that the change complies with the design
• If owner wants a change but cant agree with the contractor, owner can give a construction change directive. The change can progress, but the price/time can be settled upon later.
• Architect has the authority to issue minor change in the work, that don’t affect price/time
• Change orders can be additive or deductive (additive includes markup, deducts don’t)
• Contractor is entitled to have a change order when the owner makes a change, there’s an
architectural mistake, or other times when the owner is responsible event.
• Excusable events (tornado, storm, force major events) that delay the project, but owner’s aren’t responsible. There’s an extension of time. Cost is covered by an insurance policy.
• Inexcusable events are when the contractor is at fault and the contractor is not entitled to
extra time or money.
• A cardinal change is something an owner doesn’t have the right to make the contractor do.
If they do, the contractor can terminate the contract without breach of contract
• Issues of delay are the biggest source of claims and fighting that goes on.
• Once the owner moves in at substantial completion, then the construction time has
stopped
• There is always a trade off between time and money.
• Critical path through a project is the sequence of work that must be done in that order to
complete the project. If you add a day to a critical path activity, then you add a day to the
project.
• Contractor prepare schedule of values and includes and updated copy with each pay app
• Contractor warrants title to the work, or freedom from liens, for all work covered on pay app
• Contractor will pay subcontractors within 7 days of receiving payment
• Owner/Architect have no responsibility to ensure that subcontractor gets paid when
general does
• Progress payments occur until about 95% complete, then it’s substantial completion
• Contractor prepares punch list, architect makes an inspection and adds to it as needed
• Certificate of final completion means everything is done
• By accepting final payment, contractor waives all rights except those previously made in
writing
• Retainage is typically 10% of the contract price
• Contractor is totally responsible for safety issues
• If contractors find hazardous materials, they’ll stop work, notifier owner/architect, get lab
testing, and the owner will hold contractor harmless.
• Owner has the right to require a bond posted.
• One year warranty to come back and fix anything that’s broken from the date of substantial
completion
• No claim can be made after 10 years by either party
• Contractor can terminate with 7 days notice. Typical reason is for failure to receive
payment, or the govt shuts down the project
• Owner can suspend/terminate for convince, but has to pay contractor for all work done and
paid for lost profits.
• 21 days written notice for claims and disputes after occurrence
• Architect is typically the decision maker (but can be someone else) when dealing with
dispute, unless owner/contractor decide to go on to mediation (then arbitration/litigation) |
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Term
| B101: Standard Form of Agreement between Owner + Architect (notes from Schiff-Hardin Lectures) |
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Definition
• Architecture agreements...by and for architects
• If services increase then so should your fees
• Architects do not make guarantees or warranties. They are professionals.
• Scope of Architect’s Basic Services = most important article in contract
• Architect is responsible for basic services. (Architecture, MEP. Civil typically isn’t)
• Architect is entitled to rely on accuracy and completeness of services and information furnished by the owner/owner’s consultants.
• No Sandbagging Allowed: no sitting on incorrect information that you discover. Promptly notify owner of an error or issue in writing.
• Architect not responsible for an owner’s decision made without architect’s approval. Usually initiated by the contractor for cheaper substations that might not be in the best interest of the project.
• Can’t be responsible for filing with the city/govt because if something is held up by them, then you could take the blame.
• During schematic design you must at least talk about environmentally design options
• Architect typically only gets in liability trouble in two phases: CD’s and CA.
• Architect has no control/responsibility over means, methods, techniques, procedures, and
safety. Or for the contractor to be responsible for the contractor’s failure to perform the
work in accordance with the contract documents.
• A site visit is not a site inspection. Visits are eye-balling, looking at things in a general
fashion...making sure that when fully complete the project is in compliance with the
contract documents.
• Will report to owner any known deviations/defects that you are aware of (no sandbagging)
• Architect has authority to reject work that is not in compliance with the contract documents
• Will review submittals for checking the conformance with information given and their
design concept expressed in the contract documents.
• In design build, engineers hired by the construction team must prepare, stamp, and seal
documents. You can trust that their engineer is just as capable as yours.
• Cost of work = total cost of project, but does not include compensation to architect or
architects consultants, cost of land, financing costs, etc.
• RFIs are turned around quickly.
• Architect will conduct inspection (a painstaking, detailed analysis) to determine date of
substantial completion.
• Final Certificate of Payment = Project Over
• Contractor prepares initial draft of punchlist, and architect’s adds what’s missing.
• Prior to the one year expiration of the date from substation completion, architect walks the
site with owner to review how the facility is working, without compensation. It’s really a PR
move to get your face in front of the owner again.
• Additional/Optional Services include programming, measured drawings, existing facility
surveys, civil engineering, landscape design, BIM, LEED certification, FF&E...etc.
• Additional services necessary that are your fault must be done without additional
compensation.
• There are limits on basic services, architect should’t be penalized for faults of others (e.g.;
2 reviews of shop drawings are ok...any more and you’re spending too much time dealing
with the contractor’s errors)
• Assumes that the owner is somewhat sophisticated. They’ll provide information architect
needs for design, including:
• awrittenprogram.
• Establish and update a project budget.
• Identify a representative authorized to act on the owner’s behalf. • Furnish surveys/geotechnical services
• Owner will coordinate their consultants with you
• Won’t sandbag you if they find out something is wrong
• Will fill architect in on anything communicated with the contractor
• Coordinate the architect’s duties stated in the construction contract with what’s in the architect/owner contracts.
• Architect estimates are different than contractor estimates. It’s very rough.
• Surprised owners are the number one source of claims
• If architect’s budget exceeds owner’s budget, the architect will make recommendations to
adjust the size/quality/budget and the owner will cooperate.
• If bids come in too high from budget, then architect/owner has different options. Including,
architect must, for free, value engineer documents down to make the budget. Architect
doesn’t have to pay the difference of price of bid and budget.
• Intellectual Property: ideas are real and personal
• Architects and their consultants are owners of their instruments of service. Owner’s are
licensed to use the documents.
• Owner can only use documents for their project, if the owner doesn’t pay, then they can’t
use the drawings under federal copyright law.
• If owner uses drawings without you, (e.g. Terminates architect but gives the documents to
the contractor to build from) then they indemnify/hold architect harmless from any liability
issues, and must pay any legal fees that arise from the use of the documents.
• Architect/owner waive consequential damages or remote damages that arise.
• Mediation required prior to arbitration or litigation
• Mediation fees shared equally
• Held in place where project is located unless agreed upon • Resolutions are enforceable as settlement agreements
• Arbitration – used when mediation does not resolve issue
• Demand for arbitration cannot occur after legal proceedings have been started • Arbitration relates to owner and architect only under terms of agreement
• Award rendered by arbitrator is final
• Agreement governed by law in the principal place of business of the architect unless otherwise indicated
• No responsibility for hazardous materials
• Owner will give professional credit to architect on owner’s promotional materials for project
• Termination/Suspension:
• Owner failure to pay is cause for suspension
• Owner can suspend for their conveniences, without cause. Architect can’t
• Architect to provide 7 days written notice
• Before resuming services architect shall be paid all sums due& expenses for
interruption & resumption of work
• If project suspended more than 30 days by owner architect is due compensation for
all services performed prior to suspension
• Termination expenses: expenses due to the termination of the project for which
architect is not otherwise compensated + amount for anticipated profit on the value of services not performed by the architect (almost always taken out by owners during their review)
• No third party that will invest rights in the project.
• Architect has right to use photos/representations of their work for marketing
• Compensation type (lump sum, hourly, %) is defined & breakout of project phase % given
• If owner fires architect midstream and tries to keep using the documents with a different
architect (cheeper, etc) then the owner will pay a licensing fee.
• Owner won’t withhold amounts from architect’s compensation unless architect is liable
• This is a total agreement and supersedes any previous agreement. |
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Term
| C141: Standard Form of Agreement Between Architect & Consultant |
|
Definition
• Consultants are responsible for code compliance for their areas of work
• Signing of documents makes consultant responsible for compliance with applicable codes
and regulation
• Consultants are responsible for the accurate production of their own drawings and
specifications; should check own documents for consistency |
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Term
| Design – Bid – Build Construction Delivery Method |
|
Definition
• Most common of delivery methods... public work traditionally uses this method
• Consists of three parties: owner, architect ,and contractor
• Two separate contracts: owner + architect and owner + builder
• Established process with legal and procedural guidelines
• Typically involves competitively bid, lump sum construction contracts based on complete and prescriptive contract documents
• Work is conducted in a linear sequence
• Final contractor selection based on lowest responsible bid or total contract price |
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Term
| Design – Build Construction Delivery Method |
|
Definition
• Two parties: owner and designer‐builder
• Consolidated entity provides design and construction services to the owner
• Offers the owner a single source of responsibility
• Provides continuous execution of design and construction
• Phases overlap – design and build (fast track)
• There is only one contract: between owner + design‐build organization
• Design‐build entity can be lead by either architect or general contractor (though typically
it’s led by the contractor) |
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Term
| Construction Management Construction Delivery Method |
|
Definition
• Three parties: owner, designer, construction manager
• Two contracts issued: owner + architect and owner + construction manager
• Construction manager typically provides pre-construction services during the design
phase then takes on the financial obligation for construction under a specified cost
agreement
• Frequently based on a guaranteed maximum price
• Construction manager contracts with subcontractors
• No contractual relationship between the designer and construction manager
• Phases will often overlap, allowing for fast track project |
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Term
| Contractor Selection Approaches |
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Definition
typically based on price, qualification or a
combination of the two. Depending on the owner and what kind of funding they have (loan, grant, etc) contractors can be selected through various methods:
• Request for Qualifications (RFQ): no bid or price given to complete work, just experience
• Request for Proposal (RFP): presentation on how project would be done submitted
• Interviews to review bidders
• Negotiation to settle on contract price
• Low-Bid: Based only on the lowest total cost (sometime with alternates)
• Best Value Bid: based on weighing bid and qualifications |
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Term
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Definition
| not legally binding. Use of a mediator to reach agreement between each party |
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Term
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Definition
legal technique for the resolution of disputes outside the courts. It’s a form of
binding dispute resolution, equivalent to litigation in the courts. |
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Definition
| conflicts/disputes that are resolved in a court of law. Typically a last option. |
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Term
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Definition
legal technique where an insure takes over for a party for whom it has made
a payment. (e.g. damage to a property under construction caused by a subcontractor is covered by insurance who then sues subcontractor in the owner’s name) |
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Term
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Definition
Held by architects/design professionals. Liability due to
negligence or not meeting the standard of care expected of them. (eg: not designing
ADA compliant restrooms in a public building) |
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Term
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Definition
Held by almost everyone. Liability to employees for injury or sickness
as a result of their employment. |
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Definition
Held by owner. Covers any damages, loss of work on site/
off site/in transit. |
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Term
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Definition
Held by owner. Covers any financial loss due to delay in construction
because of damage, accidents, fire, other hazards needed to be dealt with. |
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Term
| Product & Completed Operations |
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Definition
held by contractor. Liability for damages caused
by installed goods after the construction phase and transfer of title. |
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Term
| Contractual/Indemnification |
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Definition
Liability assumed by contract where contractors agree
to hold owners/architects harmless for damages that are the result of specific events. |
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Term
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Definition
Owner/Contractor should keep this provision in the AIA 201
document, so the insurance company, after paying out, can put themselves in the shoes of their client and go after whoever might be responsible for the damage that’s otherwise “No- Fault”. You don’t want the owner’s insurance company going after the contractor if there’s some sort of freak fire in the middle of the night that could somehow be tied back to him. |
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Term
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Definition
Code applies to all AIA members regardless of membership category
Common ethics violations:
• Attribution of credit
• Accurate representation of qualifications
• Attainment and provision of examples of work • Basic honesty Penalties for Violations:
• Admonition (private) – letter of ruling sent to the parties and kept in the member’s file
• Censure (public) – letter is sent and notification of the case and ruling is published to
AIA membership
• Suspension of membership – membership is suspended for period of time; 1 or 2
years & ruling is published
• Termination of membership – membership is terminated & ruling is published |
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