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