3State Engineer’s Role in Construction Management Agency’s technical representativeApproves and signs most paperworkInspection (for RD purposes only)Makes sure documentation is done
4State Engineer’s Role in Construction Management Why do we even do it?Protect the interest of the taxpayerProtect the interest of the Owner / borrowerAren’t we already paying someone for this?
5Components Review bid and contracts Pre-construction meeting Monthly construction meetingsChange ordersPayments to contractor and engineerInspectionsPre-final, final and warranty inspections
6Post-Bid/Pre-Award Submittal Bid TabulationEngineer’s Recommendation for AwardContractor signed RD- Form , AD-1048, and RD Instruction 1940-Q Exhibit A-1As-bid Form E (budget form)RD MUST concur on bid BEFORE award
7Post-Bid/Pre-Award Submittal Bid tab has all prices for all items for all contractorsLook for “way out” prices; do these cause a concern?Engineer’s recommendation: after bid, defines which alternatives are being recommended, has total for each contract
8Post-Bid/Pre-Award Submittal Are the 3 RD forms signed (not printed)RD – Are both sides providedForm E – All as-bid prices agree with bids and recommendationSufficient budget
9Post-Bid/Pre-Award Submittal If everything is in order, RD will issue a letter to the Engineer, copy for Owner and Area Specialist, concurring on bid and authorizing award of contract
10Post-Award/Pre-Construction Submittal Owner’s Board's resolution of awardNotice of AwardExecuted agreement for each contractContractor’s Certificate of InsuranceContractor’s executed Performance and Payment Bonds EJCDC C-610 (2010) and EJCDC C-615 (2010)
11Post-Award/Pre-Construction Submittal Certificate of Owner's AttorneyResident Construction Inspector’s ResumeRegulatory Agency Approval(s), PermitsNYSDEC confirmation of SWPPP NOIRD State Engineer MUST concur on contract(s) prior to preconstruction meeting
12Post-Award/Pre-Construction Submittal Board resolution dated AFTER RD bid concurrenceNotice of Award dated AFTER resolutionContract dated AFTER Notice of Award dateBonds dated AFTER date of contract
13Post-Award/Pre-Construction Submittal Bonds MUST be on 2010 formsCheck contract dollar and word amountsPower of attorney complete / correctOriginal signaturesDates correctNo modifications
14Post-Award/Pre-Construction Submittal Read the RD contract document review letter to find out what to submitOne copy of most things to Area Specialist and one copy to State EngineerRD doesn’t need all the copies of the contractsRD DOES need all copies of the GC-A
15Post-Award/Pre-Construction Submittal If everything is in order, RD will issue a letter to the Engineer, copy for Owner and Area Specialist, concurring on contract(s) and authorizing coordination with Area Specialist to schedule preconstruction meetingArea Specialist has final say for precon
16Pre-construction Meeting Led by EngineerArea Specialist and RD Inspector must attendOwner, Engineer, Contractor’s Rep (with signing authority) must attendRecommend Regulatory Agency & Utility companies also attendSign in sheet for all attendees to sign
17Pre-construction Meeting Engineer prepares and distributes minutes to all attendees and interested partiesRD’s agenda to be read/discussed; may be merged with Engineer’s agendaClearly describe expectations for project – timelines, payments, change orders, etc.
18Pre-construction Meeting Minutes must document discussions and verbal agreementsNotice to Proceed may not be issued until after pre-construction meeting and Area Specialist has all necessary paperwork
19Monthly Progress Meetings Led by EngineerAttended by RD representative, Owner, Engineer, and contractorUpdated progress schedule from contractor
20USDA Rural Development NYS Engineers Training 6/14/2012Payment EstimatesIf any payment is being requested, the following MUST be submitted as one package:FORM E Budget SheetTabulation sheets for each section of Form EAll administrative and technical invoicesContractor’s partial pay applicationEngineer’s monthly report or meeting minutes (submitted within 5 days of meeting)By Marcy A. Newman, PE, State Engineer
21Payment Estimates Submit no more frequently than monthly Submit six copies, all with original signaturesFirst page must be on EJCDC C-620 (2010)Backup pages may be on Contractor’s or Engineer’s form as long as it’s in the same format
22Payment EstimatesEverything on the pay estimate form MUST be filled outChange orders NOT yet approved by RD shall NOT be reflected on the pay estimateStored materials must have paid invoices (or invoices first month, paid invoices second month) and insurance form for those materials
23Contract Change Orders Submit six copies, all with original signatures, to State Engineer or RD Construction Control Inspector (CCI)Provide a draft copy of the front sheet to the Area Specialist and RD CCI at the same timeFirst page must be on EJCDC C-941 (2007)Everything on the change order form MUST be filled out
24Change Orders Area Specialist State Engineer or CCI Confirms availability of fundsState Engineer or CCIReviews technical aspectsAdequate documentationVerifies within scopeApproves / Disapproves
25Contract Change Orders Include ALL supporting information (labor and equipment hours, quantities, invoices/quotes for material prices, drawings/maps)Include justification (if Regulatory requirement, provide copy of letter)Engineer is responsible to provide copies of pay estimates and change orders to fiscal advisors
26Contract Change Orders Recommend sending an electronic copy to RD before the change order is finalized / signed to verify its eligibility, completeness, etc.
27Contract Change Orders ALL CHANGE ORDERS MUST BE APPROVED BY RD STATE ENGINEER OR CCI BEFORE CHANGE ORDER WORK MAY START AND BEFORE CHANGE ORDER MAY BE REFLECTED ON THE PAY ESTIMATE, NO EXCEPTIONS.
28Contract Change Orders Final over/under change order is to zero out all quantities, including previous change order work.Final quantities must equal actual quantities installed.Final contract amount must equal work to date.
29Inspection ServicesWhat to do/expectWhat not to do/expect
30Roles of the Inspector Observe & report Know the contract Document Safety
31Know the contract Know it inside and out Technical Timelines RequirementsApproved SubmittalsTimelinesResponsibilitiesAuthoritiesDesignated representatives
32ObserveInspector is there whenever the contractor is working (unless part-time inspection has been approved by the Owner AND RD)Inspector is aware of what is going onInspector is knowledgeable in type of constructionTesting of materials
33Report Daily logs Distribute to all interested parties Signature Who, what, when, where, how many, timeDistribute to all interested partiesWhoHow oftenSignature
34Document Write everything down in an approved format Pictures, pictures, pictures!
35SafetyThe Contractor is usually responsible for safety; check contract requirementsInspector should let appropriate people (Contractor and Owner) know immediately of safety concerns or violations
36What RD Will Not Do Will not direct the contractor anything Will not act as EngineerWill not act as Owner
37Costs of Inspection $50 - $100 per hour ($8K-$18K per month) 4-7% of estimated construction costIf contractor goes beyond allowed time, pays for additional inspection costsBudget enough money up front – should not use contingency funds
38Common Problems to Avoid Inspector not on siteInspector and/or Owner directs contractorInspector and/or Owner makes deals with contractorOwner / Engineer does not respond in a timely manner
39Inspections – Substantial Completion Critical playersOwnerConsulting Engineer/Resident InspectorContractorFunding agenciesRegulatory agenciesDiscuss all conditions of construction and project closeout
40Certificate of Substantial Completion Certificate of Substantial Completion (CSC) MUST be submitted within a reasonable time from date of substantial completion.CSC is effective on date shown, regardless of when signed.Area Specialist needs a copy with original signatures; State Engineer / CCI can receive it electronically
41Inspections – FinalComplete all project closeout items before acceptanceIf contractor not responsive, after giving notice owner should complete work with funds retained and send any remaining moneys to contractorCritical playersOwner, Engineer/Resident Inspector, Contractor, Rural Development State Engineer or CCI
42Contract Closeout Documents USDA Rural Development NYS Engineers Training6/14/2012Contract Closeout DocumentsCertificate of Substantial CompletionPrefinal / final inspections with Owner, Engineer, Contractor, and RDFinal over/under change orderContractor Release of Liens (AIA G706 and G706AContractor Consent of Surety (AIA G707)By Marcy A. Newman, PE, State Engineer
43Contract Closeout Documents Engineer’s certification to Regulatory AgencyRegulatory Agency’s Approval LetterEngineer’s certification that construction is compliant with all NYS codesWarranty information (Area Specialist needs just a copy of the transmittal from these being sent to the Owner)
44Contract Closeout Documents Owner’s Board’s resolution accepting project as complete and authorizing final paymentContractor’s final payment applicationFinal Form E
45Use of Remaining FundsOnce all construction contracts are done (or nearly so), Owner/Engineer may submit a request for using remaining funds (if any)Eligible items are those necessary for operating, maintaining, and protecting the facilities, DISCUSSED IN THE PER
46Use of Remaining FundsRD State Engineer must approve request for eligibilityOnce approved, Owner/Engineer must obtain three written quotes for each itemQuotes and final cost estimate must be approved by RD
47Warranty Inspection 11 months after substantial completion Owner, Engineer, and Contractor should attendRD State Engineer or CCI must attendGood idea to talk to operatorAny concerns are to be addressed in writing to the contractor
48Liquidated Damages Not a penalty Should be enforced uniformly Carefully consider amountsInterestEngineering/InspectionAdministrative costsOther costs
49Contractor Default Follow contract terms & notice requirements Check state laws that may applyAllow surety reasonable time to respondNotify state licensing agency and Treasury Department if surety is unresponsiveKeep Owner’s attorney informed and verify that proper procedures are followed