1. Construction Contracting
2013 Providers Conference Presented By Todd Macalady Assistant Professor UAF AK TTAP

2. The Next Step Construction Project Development
Phases of a construction project
Preliminary planning and feasibility studies
Preliminary engineering and design
Final Design Completion
Procurement
Construction
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3. Construction Bid Proposals
Contains the cost estimate
Includes all of the bid forms
Required to bid competitively if government projects
Private owners could require bidders to prequalify before bidding on a project

4. Instructions to Bidders
Provides procedures to follow in order to bid on a project
Provides detailed instructions on the requirements for the bid documents, bid submission, project information, and information on how to prepare the bid documents

5. The Bid Submission Process
Owner issues bid documents (usually done by the owner’s representative)
Contractors prepare their bid documents
The bids are submitted at the location indicated in the bid instructions
Public or private bid openings
Contractors have to sign noncollusion statement that they did not work with other contractors during the bid process

6. Bid Advertisements Include Information on:
The project
Who is building it
The A/E
The date of issue
A description of the work
The basis of the bids
The time of completion
Bid opening information
Where to locate the bid documents
Prequalification requirements
Statement on the right to reject any and all bids
References to any government laws and regulations that pertain to the project

7. Bid Shopping
Occurs when the prime contractor asks the subcontractors to lower their bids after a contract has been awarded or uses different subcontractors than the ones that submitted bids
Results in additional profit to the prime contractor
Illegal
Could be prevented by requiring the prime contractor to provide a list of the subcontractors with the bid

8. Proposal Evaluation Evaluation and selection of contractor
Bids are either responsive or non-responsive
Issue Intent to Award
Prepare contract documents

9. Contracts Set Forth The Terms And Conditions Of Agreements
Protect Parties To A Contract
Protect Parties When There Is A Default
Help Parties To Determine Who Is In Breach Of Contract

10. The Need to understand Contracts
The Legal Terminology
The Basics Of Contact Law
Whether A Contract Addresses The Requirements Of The Engineering And Construction Project
Whether The Contract Favors An Engineer Or The Constructor To The Detriment Of The Owner

11. The Main Components of Construction Contracts
General conditions
Supplementary conditions
Specifications
Contract drawings (plans)
Critical path method schedules

12. Components of Engineering Contracts
Articles in contracts include:
Services to be provided
Owner’s responsibilities
Schedule for rendering services
Invoices and payment information
General considerations

13. Components of Engineering Contracts
Articles in engineering contracts include:
Definitions
Exhibits and special provisions
Engineer’s services
Additional services
Construction cost limit
Dispute resolution
Allocation of risks

14. The American Institute Of Architects (AIA)
Commercially Available Construction and Engineering Contracts Are Available Through
The American Institute Of Architects (AIA)
The Joint Engineering Contract Documents Committee (EJCDC)
The Associated General Contractors (AGC)
Other Professional And Trade Organizations
Owner Developed Contracts

15. Difficulties in Contracts Arise Due to Interpretation which is Caused by:
Vague Terms
Unclear Contract Clauses
Lack Of Familiarity With Contracts

16. Contract Administration
Act Of Determining Whether The Contractor Is Meeting The Construction Contract Requirements
Determining Whether The Contract Is Being Built According To The Contract, Plans, And Specifications

17. Changes to Contracts Definition of Changes Owner requested changes
Inadequate design
Material unavailability
Budget changes
Natural disasters

18. Five Types of Potential Alterations to Construction Contracts
Changes
Extras
Deletions
Modifications
Waivers

19. Change Orders
Document in writing the terms agreed to by both the Owner and the contractor for altering the scope of work
Provide written instructions for contractors and they are signed by owners, the A/E, and the contractor
For projects with bonds they are signed by the surety

22. Types of Items that Require Change Orders:
Change orders are also used to correct construction documents if there are errors, omissions, or discrepancies
Types of Items that Require Change Orders:
Additions or deletions of work
Unforeseen site conditions
Changes in market conditions