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116 Cards in this Set
- Front
- Back
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What are the four main construction sectors? |
Residential, Commercial, Industrial, Heavy/Highway |
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What are the characteristics of residential construction? |
Wood / steel products Low overhead, high competition Low profit margin Close relationship with owners Influenced strongly by economy |
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What are the characterisitics of commercial construction? |
Technically complex Many specialty contractors Many construction materials Extensive knowledge in construction, communication, and leadership |
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What are the characteristics of industrial construction? |
Require highly specialized workers Substructure construction is key Steels, concrete Schedule driven More complex technology |
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What are the characteristics of heavy construction |
Financed by the public large quantities of relatively small materials Heavy duty equipment required Higher profit margin |
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What are the four targets in construction management to ensure project success |
Time, Cost, Quality, Safety |
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Why is a CM needed? |
Increased project size, organizational complexity, technical complexity, inter dependencies, government regulations, speed. |
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What skills does a CM need? |
Hard / soft skills Financial, methods and materials, people / organizational skills, laws and regs, trends and demands, common sense |
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What are the four management levels in construction? |
Organizational, Project, operation, task |
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What does the owner do? |
Established budget, defines project, selects designer / builder team, determines project delivery method. Can be public or private |
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What does the owner representative do? |
Defines project scope, budget, and timeline Controls the design and development process while protecting the best interests of the owner |
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What does the architect do? |
Develops owner's requirements graphically so that the constructor can accurately price, schedule, construct, and design. Vertical Projects |
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What does the engineer do? |
Designers horizontal projects Responsible for design the engineered systems like structure, HVAC, and electrical. |
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What does the constructor do? |
Construction manager and general contractor Responsible for the means and methods of construction |
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What do specialty contractors do? |
AKA subcontractors As projects become more complex, you need more specialized skills so you hire specialty contractors with those skills. |
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What do the trades do? |
Trades people are responsible for the physical construction of the project |
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What are the pros and cons of union labour? |
Pros: guaranteed work/pay for trades, skilled workers for contractors, structured wages and benefits for workers Cons: Slow to gain seniority, hard to get into, can't supply enough workers in times of demand, workers might not work as hard due to job security, territory dispute between trades |
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What are the pros and cons of merit shop labour? |
Pros: Skilled and enthusiastic workers progress faster and are rewarded for quality work, during economic boom there are lots of jobs, easy for inexperienced workers to get jobs Cons: Not as many training opportunities, job isn't as secure, |
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What are the parties involved in construction? |
Owner, owner rep, CM, contractor, subcontractor, trades, suppliers, financiers, public, government, insurance/bonding agencies, attorneys |
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What are two organizational structures? |
Departmental and matrix organization |
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What are the three types of business ownership? |
Sole proprietorship, partnership, corportation |
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What are the advantages and disadvantages to a sole proprietorship? |
Adv: easy start up, no tax as business entity, owner retains all profit, easy to dissolve Dis: limited finances, unlimited liability to debt and obligations, single perspective on decisions |
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What are the three types of partnerships? |
General, limited, joint venture |
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What are the advantages and disadvantages of a general partnership? |
Adv: each partner active in managing, each person liable for debts and profits, combined finances Dis: each person had unlimited liability, any partner can bind partnership into responsibilities without consent from others, double taxes (salary + shared profit), requires strong trust |
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What is a ltd partnership |
Where one person has unlimited liability while the rest of the co-owners only have liability to the extent of their investment |
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What is a joint venture? |
When two companies join as one for a specific undertaking |
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What are the disadvantages of a corporation? |
Costly startup, double taxation of company profit, government regulations, management may not carry same incentive for success as other forms of business |
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What are some sources of risk in a project? |
Location, project type, owner organization, accelerated design-build |
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What is the project delivery method and what are the main types |
Term used to describe the manner in which the project team is organized. Design-Bid-Build Design-Build Construction Management |
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What are the pros and cons of design-bid-build? |
Pro: single fixed price, open competition, active owner not required Cons: difficult to fast track, no constructor input, change orders needed |
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What are the pros and cons of design-build? |
Pro: single contract, collaboration between designer and constructor, fast tracking possible Cons: Firm cost established late, no designer-constructor balance |
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What is a modified design-build approach |
Owner hires architect for preliminary design on which design-builders bid. Architect then serves as owner's rep |
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What are the pros and cons of pure CM approach? |
Pros: saves owner resources, provides technical expertise, competitive pricing Cons: Firm cost established late, project cost not guaranteed |
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What are the 3 main contract types? |
Fixed price, unit price, cost plus |
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What are the 6 main phases in a project delivery system |
Planning, definition, implementation, commissioning, operation, evaluation |
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What is the deliverable from the planning stage of the PDS. |
Investment analysis report (IAR) which determines whither the concept for a project is technically and or economically feasible and identifies the optimum solution |
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What is the purpose of a quality control program?
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To develop a method of control so that all requirements are delivered to the appropriate level of quality
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What are the characteristics of an inspection plan?
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Establish detailed inspection procedures
Outline of acceptance/rejection procedures Chart showing all tests required, when needed, frequency of sampling and testing, and who perform tests Who must physically prepare samples Ground rules for acceptable timing |
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What are the 7 responsibilities of a field office?
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1. Know what is in the contract: lump sum, unit price, cost plus
2. Know how much testing/inspection is required and who will do the work 3. Determine which materials will be pre–inspectedat the factory 4. Identify who has the authority to approve partial and final payments 5. How will regulatory compliance be ensured? 6. What are the reporting requirements? 7. Who will be responsible for safety (Prime Contractor or Owner)? |
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What are the 5 objectives of a kick–off meeting?
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1. To review roles, responsibilities, procedures (particularlysafety procedures) and contractual obligations with thecontractor
2. To review contract administration requirements and theregulatory requirements 3. To build a constructive working relationships under partnering programs 4. Review general conditions 5. Check bonding and insurance compliance if applicable |
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What is the purpose of a kick–off meeting?
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Sets up the ground rules for contractors and subcontractors
Outlines processes that will be followed Calls attention to critical project elements Ensures all the necessary permits are in place |
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What are some important instructions to field personnel?
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Contractors and subcontractors should be at all meetings
When talking to contractors, be firm but fair Be a team player! Inspect work as it's completed No field change without PM approval No authority to stop work Document everything Always receive written confirmation Special requests, submittals, etc. go through PM ...and much more! |
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Why use a project delivery system? (PDS) |
Ensure quality end product, delivered on time, within budget to satisfy client |
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What is the main 2 deliverables in the definition stage of the PDS? |
The project scope and technical criteria and the selected consultant |
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What are the three main parts of the Implementation stage of the PDS? |
Design Tendering and Award Construction |
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What is the general relationship between time and the cost / influence a person has on the project. |
As time moves forward, the influence someone has decreases and costs increase. |
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What does RFP stand for? |
Request for proposal Usually sent out to contractors to ask for bid packages. |
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What are some of the keys in winning a RFP (request for proposal) |
Know your competition Establish relationship when possible Identify owners hot points Create a competitive advantage (schedule, price, constructability) Presentations |
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What are the 5 main activities during construction? |
Start up meeting Management Construction process Post construction Contract closure |
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What are the two common perspectives during the commissioning phase of the PDS? |
Engineering and contractual perspectives |
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What is the commissioning phase of the PDS? |
The process of advancing an installation from the state of static completion to full working order in accordance wit the design intent. |
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What are some common objectives in the operations phase of the PDS? |
Ensure reliability Test and record performance Maintain operation and maintenance records Create preventative maintenance program Identify operating budget Respond to specific client requests |
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What are the four main objectives in the evaluation stage of PDS? |
Compare planned and actual aspects of project Compare actual performance with the plans Clearly Identify variances outside acceptable limits Record project performance for management review, sharing with other regions, and lessons learned database |
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What are the three types of evaluations performed in the PDS? |
Project Contractor Consultant |
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What are the basic roles of government in construction management?
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Federal Statues and Regulations, State Statues and Regulations, and Local Ordinances and Bylaws
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What is the role of the courts in construction management?
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Interpreting statues, regulations, and local ordinances
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What is the basic process for the formation of a contract?
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Offer
Acceptance Consideration Capacity Rightful purpose |
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What are the 4 different types of damages?
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1. Direct Damages (cost of repair)
2. Consequential Damages (damages that result indirectly to a breach) 3. Liquidated Damages (parties may agree in advance to the amount of damages payable in case of a contract breach) 4. Punitive Damages |
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What are the 4 types of alternate dispute resolution (rather than going to court)?
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1. Litigation
2. Arbitration 3. Mediation 4. Negotiation |
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What is the purpose of tendering/contracting?
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To select a contractor, or a number of contractors who willunconditionally meet all of the terms and conditions setout in the tender documents at a competitive market price.
(To obtain bids from contractors and to award the contract. The Client enters into firm commitments for most of theproject expenditure) |
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What does contracting include?
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Stand the test of scrutiny in matters of prudenceand probity, facilitate access, encouragecompetition, and reflect fairness. (Honesty, fairness, best value)
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What is a bid bond (contract A)?
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Is drafted in between the submissionof tenders and award ofcontract; preliminary contract.
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What is a contract bond (contract B)?
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Is drafted in between the award ofcontract and completionof contract; final contract.
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What are some practical implications of awarding bids?
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All bidders must be treated equally, contractors can't withdraw bids, awarded to lowest compliant bidder, and subcontractor tenders are final.
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What is prequalification?
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To assess the capability of potential tenderers to perform the requirements of a forthcoming contract and is carried out before the commencement of negotiation or bidding process.
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What is an alternate, in the bidding/contracting process?
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A request for a pricefor substituting one material foranother, for adding to the scope ofwork, or for deducting from thescope.
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What is an addenda?
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A change in the documents made during the bidding phase, before contract acceptance.
(Bidders often identify inconsistencies that must be corrected. Bid documents may also be released prior to design completion such that the addenda complete the remaining design. Acknowledgement of all addenda releases occurs on the bid form.) |
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What are some things that are included in contracts?
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Identification of parties to contract, description of project and work to be performed, start date, date of substantial completion, liquidated damages, contract sum, progress payments, interest rate, retainage, final payment, and enumeration (inventory) of contract documents
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What is included on an invitation to bid?
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Project Description
Project Location Bid Due Date Project Start and Completion Dates Bonding Requirements Document Location Legal Requirements |
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What is included on the invitation to bidders?
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Bid Due Date
Bid Form Instructions (place to indicate fee of additional work) Unit Prices Location to Deliver Bid Method of Awarding Contract Expected Date of Award and Project Start |
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What is included on a bid form?
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Name of contractor, price, price breakdown by major trades, amount of bond, alternates, fees for additional work, unit prices, time required to complete job, bidder acknowledgement of receipt of addenda, key subcontractors, bidder legal status, and signature, title and date
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What is the standard bidding procedure (7 steps)?
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1. Offer to Tender by Owner (Tender Call)
2. Amendments to Tender Call 3. Pre–tender meeting with contractors 4. Receipt and Opening of Tenders 5. Tender Review 6. Contractor’s Evaluation 7. Contract Award |
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Bid procedures: What are the components of 1. Offer to Tender by Owner (Tender Call)?
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Negotiated offers (Non–Competitive)
Invitation Public Advertisement |
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Bid procedures: What are the components of 2. Amendments to Tender Call?
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Issuance of addenda
Issued to all recipients of the tender documents Must: Provide factual information, defer to legal experts, exercise caution, let appropriate parties answer questions related to their fields, and prepare addenda when any changes need to be made. |
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Bid procedures: What are the components of 3. Pre–tender meeting with contractors?
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Receive information
Receive contractor’s questions Develop familiarity with project site Clarify interface between new and existing facilities |
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Bid procedures: What are the components of 4. Receipt and Opening of Tenders?
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Treated as confidential
Received only at specified office Tenders must be time and date stamped immediately Held unopened in a secure location until the official tender closing time and date Public tenders are opened in public (Government) “Invited” tenders are opened in the presence of only those contractors who have submitted bids, if requested Late bids returned unopened |
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Bid procedures: What are the components of 5. Tender Review?
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5.1 Administrative
– To determine the lowest acceptable and valid tender – To ensure tender is complete in all respects 5.2 Technical Review – To determine the tenders are in accordance with plans and specifications – To determine the price submitted by the apparent low bidder is fair and reasonable – To determine the bidder has necessary financial and managerial capability – To determine the bidder has necessary resources to carry out the work |
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True/False: Bidders can increase their bid price after their bid is submitted
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False. They can, however, lower their price.
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True/False: If a bidder realizes they made a substantial mistake in their bid price, they can withdraw
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True
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Bid procedures: What are the components of 6. Contractor’s Evaluation?
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You must consider the following:
– Financial resources – Organization, plant and equipment – Personnel both managerial and technical – Experience – Previous performance |
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Bid procedures: What are the components of 7. Contract Award?
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Notify by letter that they've been awarded the contract. Include all pertinent information, esp. addenda. Contractor must execute the contract document within 14 days after award, deliver the required contract bonds within 14 days after award, and deliver the required contract insurance within 30 days after award.
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What are the 5 main types of contracts?
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1. Traditional
2. Design/build, EPC, EPCM… 3. BOOT 4. Construction Management 5. Turnkey |
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What are traditional contracts?
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Simple; used in government, infrastructure, and conservative owners.
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What are Design/Build, EPC, and EPCM contracts?
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Simple accountability; used in complex projects.
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What are BOOT contracts?
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Sophisticated deals; long term; used by government, cogeneration projects, and sophisticated corporations.
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What are Construction Management contracts?
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Well understood and simple; similar to traditional contracts.
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What are Turnkey contracts?
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Well understood and simple; similar to traditional contracts.
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What is a bond?
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NOT insurance. It's an agreement made between three parties: (1) the Principal (Contractor); (2) the Surety (Bonding Company); and (3) the Obligee (Owner).
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What is the role of the Surety (i.e. the bonding company) in a bond?
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The Surety becomes liable to the Obligee for the default or failure of the Principal in performing some obligation, up to but not exceeding the cost of the bond. Relieved of duties when bond is paid.
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What are the 3 types of bonds?
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1. Bid Bonds
2. Performance Bonds 3. Labour and Material Payment Bonds |
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What is a bid bond?
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Guarantees that the selected contractor will enter into a contract with the owner for the bid price. 5% or 10% of the tender price.
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What is a performance bond?
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Guarantees the contractor will perform the work in accordance with the terms of the agreement. 50% or 100% of the contract price.
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What is a labour and materials payment bond?
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Guarantees the contractor will pay all bills. Required for government contracts. 50% or 100% of the contract price.
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What are the 2 types of project insurance, and what do they generally cover?
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Builder’s Risk Insurance and Installation Floater; designed to insure the project for the entire duration of construction. Insures against natural disasters, burglary, collapse, explosion, vandalism, almost everything.
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What does Builder's Risk Insurance NOT cover?
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Doesn't cover wear and tear, faulty workmanship, frost, transportation risks, power surges, dishonest employees, and much more.
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What is Installation Floater's Insurance?
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Covers subcontractor work and materials rather than the entire project. Policy is issued on an annual basis and covers all projects.
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What are some contractural obligations for owners?
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Make site available; owner–supplied materials; design responsibility; timely approvals; not to interfere with method of execution; owner supplied facilities; issue change orders; duty to disclose superior knowledge; owner’s discretion exercised reasonably
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What are some contractual obligations for engineers?
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Prepare design, specifications and drawings
Prepare bid documents Prepare cost estimate?? Assist in procurements Oversee execution and maybe inspection |
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What are some contractual obligations for contractors?
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Build the project according to specs, time, budgets
Comply with laws and regulations |
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What are the 2 types of terms included in contracts?
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1. Expressed Terms: The conditions which are written in the contract
2. Implied Terms: Valid conditions which are not explicitly stated |
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What are the 5 basic components of contract documents?
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1. The Agreement
2. The General Conditions 3. Supplementary Conditions 4. Technical Specifications 5. Drawings and Design Details |
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What are the 5 roles of Contracts, Drawings and Specifications?
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1. Define roles and responsibilities
2. Assign risks 3. Specify what is to be done 4. Basis for performance measurement and payment 5. Define working relationships |
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What is a specification?
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Defines the qualitative/quantitative requirements of the project that is to be built. Defines the nature of the materials that are to be used and the description of the workmanshipand procedures to be followed.
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When there is a conflict in information, what takes precedence: specs or drawings?
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Specs
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What does CCDC2 stipulate?
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Stipulated price (Lump Sum)
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What does CCDC3 stipulate?
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Cost–Plus
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What does CCDC4 stipulate?
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Unit Price
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What does CCA 5 stipulate?
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Construction Management
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What is CCDC2 Clause 1.1.9?
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Order of priority of the documents
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What is in Document 0 of CSC (Construction Specifications Canada)?
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Bide requirements: invitation to bid, instruction to Bidders, information, bid forms, bid bond, and supplementary conditions
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What 3 parts are laid out by the section format?
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1. General: administration specific to section
2. Products: products and off site work 3. Execution: field work |
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Who is responsible for finding errors and omissions?
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Owner is ultimately liable, but law gives benefit of doubt to the party that did NOT write the contract.
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How do we avoid inconsistencies that lead to cost increases or schedule extensions?
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Only show information once; KISS Principle; only specify what you must; use industry standards wherever possible; avoid vagueness; avoid ambiguity; check and review
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What are the functions of change orders?
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Describe changes or additions to the contract
Mechanism for changing the contract to accommodate differences Method for pricing and paying for a change Record of total impact and consequences of a change |
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What are the function of project records?
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Historical record
Better than most people’s memories! Contemporary and shared documents are most credible evidence Assist in resolution of disputes Record of actual costs, resource usage and durations |
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Can contracts be changed by other means than change orders?
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Yes! By verbal agreements, meeting minutes, notices, implied changes in payment processing, and more.
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