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Roles & Responsibilities in Construction Management

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Presentation on theme: "Roles & Responsibilities in Construction Management"— Presentation transcript:

1 Roles & Responsibilities in Construction Management
Ben Shuman, PE Senior Environmental Engineer USDA, Rural Utilities Service (202)

2 First Let’s Talk About Roles & Responsibilities

3 Partners Owner Funding Agencies Consulting Engineer
Construction Contractor

4 Owner What are the owner’s responsibilities? Need to be fully informed
Make final decisions on planning Hire the engineer and contractor Pay on time! Resolve disputes

5 Consulting Engineer Responsibilities before award:
PER (which defines scope) Preliminary Design Plans and specifications Coordinates and assists in bidding/award

6 Engineer’s Role (continued)
After award: Owner’s representative Provide Resident Project Representation Evaluate shop drawings Visit site and observe construction Reject defective work, evaluate change orders, and pay estimates Determine final quantities for unit prices

7 Visits to Site by Engineer
Visit site as needed to observe as an experienced/qualified design professional; Review progress and quality of work for benefit of owner; Determine in general if work is proceeding per contract documents

8 Engineer’s Role (continued 2)
Evaluate substitutes and “or equals” Make clarifications and provide initial decisions on disagreements Determine substantial completion Write punch list Recommend Final Payment to the Owner

9 Limitations on Engineer’s Authority (and RPR)
Will not supervise, direct, control, have authority over or be responsible for: means, methods, techniques, sequences, procedures of construction; safety precautions or programs; Acts or omissions of contractor, subs, or suppliers;

10 Limitations on Engineer’s Authority (continued)
Review of pay requests, documentation, operating instructions, schedules, guarantees, bonds, inspections, tests, approvals is: only to determine generally that content complies.

11 Brief explanation of RD
RD Undersecretary RUS RHS RBS 47 State Offices

12 RD Undersecretary State Director State Office Area Offices

13 Rural Development Program Director State Engineer
State Environmental Coordinator Area Director Area Specialist

14 Specialist Provide information about the program Main Point Of Contact
Performs some review of PER completeness financial info Construction management Loan servicing

15 State Engineer 1/3 of job is engineering (the easy part)
2/3 is people (the hard part)

16 Here’s the short story... Reduce risk to the Agency and taxpayer
Provide an opinion to the Management

17 In Prioritized Order... PER Engineering Agreement
Review plans and specifications Execute construction contracts Construction management

18 Contractor Build it per plans and specs On time Within budget
Absolute obligation to perform and complete the work in accordance with contract documents

19 Contractor’s Responsibilities
Supervise, inspect, and direct the work Responsible for site, materials, equipment, and schedule Responsible for all subs and suppliers Responsible for site safety Maintains record documents at site

20 What are the typical steps in a project?

21 From Cradle to Grave Need for Project
Working with a Technical Assistance Provider Selecting an engineer Application Design Bidding and award Construction Operations (loan servicing)

22 Selecting an Engineering Firm
Owner develops Statement of Work (SOW) Request For Qualifications (RFQ) process Owner makes an informed decision

23 Statement of Work What is a SOW How to develop a good SOW

24 Request for Qualifications
What is an RFQ and its purpose How to select the best engineering firm

25 Deliverables What are the Engineering deliverables?
PER 60% design 100% design Construction services warranty inspection What are the due dates for the deliverables?

26 Bid & Award of Contract RD’s requirements Open and free competition
Use of standard contracts unless approved otherwise No conflict of interest Competitive bidding Low bid vs “Best Value”

27 Construction Management

28 Construction Management
Why do we even do it? Protect the interest of the owner Protect the interest of the taxpayer

29 Components Pre-construction Conference
Monthly construction meetings (Partial Payments) Change orders Engineer Invoices Prefinal Inspection Punch List Final inspections Warranty Inspection

30 Pre-construction Meeting
Led by consulting engineer All parties involved attend RD has an outline of items to discuss Clearly describe expectations for project – timelines, payments, change orders, etc. Written record of meeting signed by all

31 Monthly Construction Mtgs
Led by consulting engineer RD Specialist sometimes State Engineer or Construction Analyst also Updated progress schedule from contractor if needed Payment requests The dreaded change order



34 Change Orders Sometimes generated by contractor
Recommended by consulting engineer May involve additional design work RD Confirms availability of funds Scans for eligible purpose Approval

35 Pay Requests Quantities of work completed (unit prices)
Or based on schedule of values (lump sum) Materials stored on or near site RD forms signed by Engineer & Owner RD Specialist confirms eligibility & funds Compare % complete with % time complete

36 Roles of the Inspector The inspector only does two things
Observe & report Know the contract Document in a daily log record book Take photos Safety

37 Safety Know the safety plan
Inspector should let appropriate people know immediately of safety concerns or violations

38 What Inspector Should Not Do
Do not direct the contractor Do not act as engineer Do not act as owner Know what authority you have (almost none)

39 Costs of Inspection $50 - $100 per hour ($8K-$18K per month)
4-7% of estimated construction cost If contractor goes beyond allowed time, liquidated damages should pay for additional inspection costs Budget enough money up front – should not use contingency funds

40 Common Problems Inspector not on site Inspector directs contractor
Inspector makes deals

41 Inspections – Prefinal and Final
Coordinate with Substantial Completion Start of warranty period Critical players Owner/operator Consulting Engineer/Resident Inspector Contractor Funding agencies Final inspection confirms punch list completed Triggers final payment

42 Warranty Inspection 11 months after substantial completion
RD State Engineer should attend Good idea to talk to operator Any concerns should be addressed in writing to contractor As-builts, O&M manuals

43 Liquidated Damages Not a penalty Should be enforced uniformly
Amounts established in advance Interest Engineering/Inspection Administrative costs Other costs

44 Contractor Default Follow contract terms & notice requirements
Check state laws that may apply Allow surety reasonable time to respond Notify state licensing agency and Treasury Department if surety is unresponsive

45 Servicing and Operation & Maintenance
Run your system like a business “Sustainable” systems

46 “Take-Aways” Know your roles & responsibilities
If you’re more than one year past start of project and you haven’t gone to bid, it’s time to act Owner is responsible for the project Contractor is responsible for meeting terms of contract

47 Questions? Ben Shuman, PE Senior Environmental Engineer Rural Utilities Service

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