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2014 STUDENT CHAPTER SUMMIT SUMMIT General Conditions: What’s In, What’s Out and How Much?

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Presentation on theme: "2014 STUDENT CHAPTER SUMMIT SUMMIT General Conditions: What’s In, What’s Out and How Much?"— Presentation transcript:

1 2014 STUDENT CHAPTER SUMMIT SUMMIT General Conditions: What’s In, What’s Out and How Much?

2 Vice President Durr Mechanical Construction, Inc. - New York, NY NYC Master Plumber and Sprinkler Licenses Specializes in Industrial, Power & Process 37 Years in Mechanical Construction 18 years in MCAA LEM Committee About the Instructor  Robert J. Durr, Jr.

3 GOALS FOR TODAY’S SESSION

4  Understand what General Conditions are and identify what is needed.  Learn new strategies to competitively price General Conditions.  Organize a complete estimate.  Provide an Intelligent bid package. GOALS

5 Organize your Estimate BLUE PRINT TO GENERAL CONDITIONS Request for Quotations Bid Documents Specifications Drawings Owners/CMs Contract

6 ASSEMBLY OF THE ESTIMATING FRONT SHEET READ THE CONTRACT DOCUMENTS!

7 Assembly of the Estimate Front Sheet  Components of Front Sheet (Assembly) 5 major Components

8 Assembly of the Estimate Front Sheet Components: 1.Material Pipe Fittings & Valves Hangers & Supports Nuts Bolts & Gaskets Welding Consumables Shop Fabrication

9 Assembly of the Estimate Front Sheet Components: 2.Equipment (Vendors) HVAC: Air Handling Units, Pumps, Chillers, Boilers, Cooling Towers etc. Plumbing: Fixtures Drains, Carriers, Water HEATERS, Sewage Ejectors etc. Process Equipment: Reverse Osmosis, Clarifiers, Sluice & Slide Gates etc. Specialties: Expansion Joints, Traps and Strainers, Control Valves Air Distribution: Fans, Air Outlets, VAVs, Chill Beams Shop Fabrication (Could be in Materials)

10 Assembly of the Estimate Front Sheet Components: 3.Subcontractors Sheet metal Insulation Temperature Controls Nondestructive Testing (NDE) Controlled Inspection Rigging Civil Others

11 Assembly of the Estimate Front Sheet Components: 4.Labor Various Trades (know the work rules) Read the Collective Bargaining Agreement (CBA) Pipefitter, Plumbers, Boilermakers, Sheet metal, Apprentice Ratios Support- Laborers, OEs, Carpenters, Teamsters Supervision – Foremen, General Foremen, Non Working Stewards, Superintendents? Misc. Activities – Tool Box Talks, Weld tests, Bull Gang Derive Hours using MCAA WebLEM

12 Assembly of the Estimate Front Sheet Components: 5.GENERAL CONDITIONS A.K.A. Other Direct Job Costs (ODJC) Site General & Administrative Costs Not to be Confused with Office G&A

13 Assembly of the Estimate Front Sheet Components: 1.Material 2.Equipment (Vendors) 3.Subcontractors 4.Labor 5.GENERAL CONDITIONS

14 General Conditions

15

16 Assembly of the Estimate Front Sheet Lets Examine What’s in General Conditions Office G&A vs Site General Conditions Pop Quiz

17  Executive officers  Project Manager  Estimators  Drafting  QA/QC  Safety  Superintendent(s)  Project Engineer  Clerk/Admin Assistance  Payroll Clerk  Contract Administrator  Claims Consultant Office G&A vs Site General Conditions – Office – Site – Office (What about COs) – *Site – Site (Labor) – Site – Office – Site or Office – Site (Subcontractor) – *Site

18  Shop Delivery Truck  Company owned Lifts  Survey Equipment  AutoCad Software License  PM IPM Training Cost  Safety HAZWOPs  Laptops/PCs  Monthly Fed Ex Bill  PM Vehicle/Lease  Bonding Charges  Legal Charges for Contract Review  Field Staff Benefits Office G&A vs Site General Conditions – Office (Site Allowance) – Site – *Office – Site – Site (Proportionate) – Site – Office – Site – Office – *Site – Site

19 Office G&A vs Site General Conditions Office General & Administrative Costs Main Office Costs -OVERHEAD Not Site Specific Charges Financial Nut to Cover Regardless of Work Load Used for Calculating Overhead & Profit

20 Office G&A vs Site General Conditions Office General & Administrative Costs Administrative Payroll & Taxes:  Executive Staff  Accounting Department  Estimating & Purchasing  HR Department  Shop Manager  Shop Hands and Drivers

21 Office G&A vs Site General Conditions Office General & Administrative Costs Administrative Support:  IT Costs  CPA  Security  Legal Council  Shop Operations  Fleet Maintenance

22 Office G&A vs Site General Conditions Office General & Administrative Costs Other Costs:  Office Supplies & Furniture  Bank Financing Charges  Travel & Living Expenses  Conferences – Seminars - Training  401K & Healthcare  Automobile payments/maintenance  Rents/Mortgages  Others

23 Office G&A vs Site General Conditions Site General Conditions Costs Not part of Main Office Overhead Site Specific Where Do We Find Site G&A Requirements? IN THE CONTRACT DOCUMENT

24 General Conditions  Site Administrative Staffing  Trailers  Office Equipment & Expenses  Tools & Equipment  Taxes, Insurance, Building Risk (OCIP)  Escalation  Allowance Items/Add Alternates

25 General Conditions  Project Manager  Project Engineers  Draftsmen  BIM Coordinator  Safety Manager and or Inspectors  QA/QC Manager and/or Inspectors  Scheduler  Superintendent(s)  Others - Firewatcher  Site Office Staff

26 General Conditions  Site Trailers  PM Office Staff Trailer(s)  Change Trailers  30 persons/per, Females, By Trades  Built up Shanties  Tool Rooms & Storage Containers  Trailer Hook ups  Electrical/Plumbing  Mobe & Demobe Costs  Trailers & Storage

27 General Conditions  Office Equipment  Desks, Planning tables, Chairs, Coffee Pot  Site Computers, Internet service, Site server  Telephones (Cellphones), Copiers, Fax?!  Expenses - Parking, Travel, FedEx, Entertainment  Reproductions, O& M Manuals,  Permits and Filing Fees  Office Equipment & Expenses

28 General Conditions  Tools  Sometimes part of labor rate  Based on a percentage of Labor (3-6%)  Lump Sum  Consumables- Consider in Material  Safety Personal Protection Equipment (PPE)  Tools & Equipment

29  Equipment  Use MCAA Rental Blue Book for rates  Specific for the project General Conditions  Tools & Equipment Welding machines (gas or electric hookup) Fusion machines Testing Equipment Personnel lifts – scissors, articulating boom Scaffold – sectional, baker Cranes, forklifts, lulls & site trucking Don’t forget to add for Fuel/Maintenance & OE/Teamster

30 General Conditions  Taxes  Capital improvement – What’s taxable  Tax exemption  Local Economic Development Zones  Taxes, Insurance, Building Risk, Bonding

31 General Conditions  Insurance  General liability  Rate on Labor or Total Cost  Watch for excessive limits  Workers Compensation  Part of Labor Rate  Pull out number for OCIPs & CCIPs  Taxes, Insurance, Building Risk, Bonding WATCH OUT FOR Indemnification Clauses Excessive Limits OCIP/CCIP Term Limits Liquidated Damages (LDs)

32 General Conditions  Builders Risk  Most Public Work  Yearly Renewal Costs  Bonding  Bid Bond/Payment & Performance Bonds  Limits by Project/Total Cap  Personal Guarantees  Increases with Change Orders  Prior Approval  Taxes, Insurance, Building Risk, Bonding

33 General Conditions  Escalation/Overtime  Start and End Dates  Work Scope Duration & Phasing  Include Craft Escalation/Overtime in LABOR  Consider ODJC Escalation/Overtime

34 General Conditions  Allowance Items  Add to above the Line  Deduct once O&P & Insurance/Bond/BR are added  Won’t jeopardize ODJC if deducted from Contract

35 Assembly of the Estimate Front Sheet Components: 1.Material 2.Equipment (Vendors) 3.Subcontractors 4.Labor 5.GENERAL CONDITIONS

36 General Conditions

37 What Affects General Conditions  Each Project should be Analyzed Closely  Contract Documents  Project Delivery System  Site Conditions  Installation Methods & Material Handling  Project Schedule  Project Administration

38 Contract Documents  RFQ / Site Walkthrough  Needs to be in writting  Section 00700: General Conditions  Boiler Plate Document  Minimal Requirements  Section 00800: Supplementary Conditions  Specific to the Project What Affects General Conditions

39  Design Bid Build (DBB) – Design/Procure/Construct  Design Bid Build w/ CM – CM acts as Owner Rep  Design Build (DB) – Full responsibility  Design Build Operation Maintain (DBOM) –  Build Operation Transfer (BOT) –  Integrated Project Delivery (IPD) – Owner shared  Target, Cost Plus w/Guarantees  Project Delivery

40  Analyze what the site conditions will be During Construction  Labor Constraints  Travel time to/From parking to gate,  Sanitary Facilities,  Change Trailers  Material Laydown  Permitting, QC hold points  Safety Orientation  Weather  Labor Availability  Site Conditions What Affects General Conditions

41  Analyze what the site conditions will be During Construction  Type of Construction  Commercial vs. Industrial  New vs. Renovation  Equipment Constraints  Point of Delivery and Dates  Site Access for People, Materials  Location for Trailers and Temporary Facilities  Project Sequencing or Phasing  Security  Site Conditions What Affects General Conditions

42  Joining Methods  Welding  Grooved  Soldering Brazing  ProPress  Fusion  Installation Methods and Material Handling What Affects General Conditions

43  Prime Contractor or a Sub-Contractor?  Separate Primes  Time and Material Contract  Federal, State & Local Regulations/Codes  Liquidate Damages or Bonus Incentives  Project Administration What Affects General Conditions

44 Lets take a look at some Contract Clauses

45 Ventilation during Welding & Burning Operations: This subcontractor shall furnish, install and maintain ventilation within the Building for control of welding and burning fumes to all OSHA, FDNY and Building Department Standards. Temporary Heat Pumps & Filtration Units: This subcontractor shall furnish and install the equivalent of a Mitsubishi DX Split Heat Pump (heating & cooling) Unit for temporary climate control in the Elevator MERs, Electrical Substation Rooms, IT Room and the UPS Room inclusive of NEMA/HEPA filters, starters and temperature control wiring. The units are to be sized at minimum 25% of the cooling capacity of the permanently specified units for these rooms. The condensing sections will be installed remotely as coordinated with the Construction Manager. In addition, this subcontractor shall include delivery and installation of 8 forced air micro trap filtration units inclusive of 4 spare cases of hoses and filters. MCAA Student Summit 2014 General Conditions Specification Adders

46 Temporary Floor Ventilation: This subcontractor shall furnish and install intake and exhaust fans, associated plenums, ductwork, dampers and interior louver insulated safeing panels at each of the four building quadrants as required ventilating floors 3 thru 9 at the rate of 2.5 air changes per hour. Twotemporary louvers will be installed in the curtain wall at each of the 4 quadrants per floor to allow for intake and exhaust at opposite ends of the quadrant. The temporary ventilation systems will draw outdoor into each quadrant and exhaust air from the opposite side of the quadrant to achieve the desired air changes. This subcontractor shall test and balance the systems to confirm that the desired air flow is achieved. MCAA Student Summit 2014 General Conditions Specification Adders

47 Branch Connection to Risers: This Subcontractor is required to install the branch connections to all pre-installed Pipe and Sheet Metal riser taps as installed by the Core Riser HVAC Subcontractor. These Pipe & Sheet Metal Branch Tap connections have been left within 2 feet of the Interior side of the Shaft Walls. This Subcontractor is required to intercept these Riser Taps by removing any and all piping and duct work, including caps, provide connections to these existing riser taps and to provide the required, as indicated on the contract documents, the Piping, Duct Work, Piping Branch Riser Isolation Valves and All required Branch Fire/Smoke Dampers. During this Subcontractors pipe cleaning and chemical treatment procedure and duct leakage testing procedures the previously installed, existing pipe and duct risers will be incorporated into these procedures. MCAA Student Summit 2014 General Conditions Specification Adders

48 Spray Fireproofing: This subcontractor shall exercise reasonable care in installing his work so as not to remove fireproofing in amounts considered excessive for work being performed, (1” for most Hangers & Beam Clamps). Fireproofing removed in excess shall be patched at the expense of this Subcontractor. Fireproofing removed by out-of-sequence work will be patched at the expense of this Subcontractor. Commissioning: The building systems on this project shall be formally commissioned by the subcontractor in conjunction with a Commissioning Agent engaged directly by the Owner. The commissioning process and methods employed shall verify the building systems meet the design criteria, and ensure proper operation of all equipment per the Contract Documents. It is anticipated that due to the complicated nature of the systems and equipment, as well as the quantity of these components that the commissioning process will require EXTENSIVE coordination and man hours to complete. This subcontractor’s dedicated full time commissioning manager, who is a supplement to its dedicated full time construction project manager, will need dedicated continuous assistance by several of this subcontractors start up mechanics and controls technicians as well as the dedicated and continuous participation of each of this subcontractors subs start up and testing representatives for the timeframe to compete and secure all sign offs. MCAA Student Summit 2014 General Conditions Specification Adders

49 LEED – Duct Cleaning: This subcontractor includes capping the ends of its piping, duct work, etc., when no immediate work is being performed to prevent contamination from foreign materials. Duct work and piping to be kept rust-free and sealed from foreign matter. In the event that this subcontract does not properly protect the open ends of unfinished sections of ductwork, or, does not maintain proper MERV filter protection of the duct systems and equipment, this Subcontractor shall be responsible for the cleaning of all ductwork systems prior to turn over and occupancy. This cleaning shall be supplement to the purge sequence described in the specifications. This subcontractor shall include initial cleanup of all HVAC equipment provided under this contract. This subcontractor shall coordinate when to initiate equipment clean up with the Construction Manager but it shall succeed taping and polishing activities on the floor at a minimum. This Subcontractor must provide an Independent Cleaning Company to complete 2 hospital grade cleaning procedures on all equipment used for temporary services. BATC Interface with the Fume Hood Extract Systems Subcontractor: This Subcontractor shall include wiring, pretesting, final testing, balancing and commissioning for all fans, equipment and devices furnished and installed by the Fume Hood Extract Systems Subcontractor. This subcontractor shall be hired by the CM directly. All coordination, standby testing and balancing associated with this installation shall be included in this subcontractor’s scope of work. MCAA Student Summit 2014 General Conditions Specification Adders

50 HVAC Device Location: This Subcontractor shall coordinate with the architectural drawings for all recessed and surfaced mounted devices to conform to design and code compliance as well as architectural elevation details. No device is to be installed in elevation and plan without a shop drawing designating the intended location. When the location is not clearly identified on the contract documents, it is to be noted as such on the shop drawings so it can be identified and approved individually by anyone who is required to review and approve, including the construction manager, architect, and engineer and sub consultants as needed. Temporary Electrical: This Subcontractor shall make its own arrangements and pay for costs to hook-up their welding machines, shanties, and any other items needed to produce their work. This Subcontractor shall be responsible for the furnishing of all required hook up MEP services which may be required for temporary shanties, trailers and storage areas. Heat Tracing: This Subcontractor shall furnish heat tracing per the plans and specifications. This Subcontractor includes all coordination and identification of required placement prior to installation of insulation. This Subcontractor shall include heat tracing on all piping in unheated spaces or where a potential for freezing occurs, even if not shown, if this Subcontractor coordinates the route of that piping thru the unheated space. This Subcontractor shall be responsible for the installation, unless explicitly identified in the electrical section of the specification. All BATC interface per plans and specs shall be included. MCAA Student Summit 2014 General Conditions Specification Adders

51 FDNY Ventilation Drawings: This Subcontractor is to coordinate with the Fire Alarm subcontractor to create a drawing of each floor indicating the air changes per hour per room based on the final balancing report. Steel Supplemental Supports: This Subcontractor shall furnish and install supplemental supports as is required to maintain the point loading specification of the building structure. This work shall include all engineered systems with a professional engineering stamp for submittal and approval by the structural engineer of record for the project. This Subcontractor shall be responsible for coordination of all inserts for hangers for approval by the structural engineer. Miscellaneous structural support members installed in mechanical rooms, and where exposed to public view shall be galvanized per spec section C. MCAA Student Summit 2014 General Conditions Specification Adders

52 Waterproofing: This Subcontractor shall provide all fans, all louvered penthouses, all penetrations through the roof including but not limited to prefabricated roof curbs, counter flashing, link seals, ALD’S, penetration coordination, separation between the MMB and CEP, shaft way connection to the exterior, Roof penetrations at the urban layer or any other waterproofing or epoxy coated detail associated with its work. Curb details for water proofing will be provided for coordination with piping, conduit or other slab penetrations within the MBB by this Subcontractor. Coordination – BIM Model: This Subcontractor shall provide DEDICATED draftsmen and modelers for each specific division of work provided under this trades scope of work, including but not limited to Sheet Metal, HVAC piping, Direct Digital Control System, equipment vendors. The Subcontractor shall have DEDICATED BIM Manager (separate from the individual Trade draftsmen or modelers) that will attend all coordination meetings and manage transfer of the files & coordination sign offs within the scheduled timeframe to deliver the floors. This person cannot be the Project Manager for the project and this must be their sole purpose for this work. This Subcontractor includes BIM modeling per the plans and specs and the BIM Execution Plan (Exhibit U). MCAA Student Summit 2014 General Conditions Specification Adders

53 Testing and Start-up: Provide testing, star up and commissioning of all systems and equipment installed as part of this subcontract, whether provided as part of this agreement or furnished by others. Provide a competent, full time on site commissioning manager whose functions will include supervising and coordinating the start-up, testing, and commissioning of all equipment and associated systems installed under this subcontract from the beginning of installation though system turnover. Much of the testing and commissioning will occur after normal working hours. This manager must be identified in the organization chart and their early preparation will be required for the development of the start-up matrices, commissioning plans, and O&M Manuals. This position will require significant interface with other trades to ensure that all controls/supervisory loop & devices/communications operate as intended. This person is in addition to the full time on-site project manager. It shall be the responsibility of this Subcontractor to include all temporary work required to accomplish multi-phased testing as directed by Construction Manager to accommodate the project schedule. This may include, but is not limited to, the scheduling of these operations after normal work hours. This work may be done out of sequence shall include all required overtime. MCAA Student Summit 2014 General Conditions Specification Adders

54 Hydrostatic Testing: After each hydrostatic leak testing procedure is complete, drain the system until empty. Piping systems shall be internally chemically treated (INHIBITOR) and protected during and after the hydrostatic testing procedure. Dry Nitrogen, at a pressure of +/- 5lbs. shall be maintained within all piping systems after all hydrostatic testing. The process shall be monitored by the chemical treatment manufacturer and a written report issued to the Engineer and Owner two (2) weeks after completion of this subcontractor’s hydrostatic testing. The Owner or Commissioning Agent shall witness all hydrostatic tests. This Subcontractor shall provide injection pumps, water meters and coupon racks to control and monitor the concentration. After leak testing and a sufficient time period to allow the interior of the piping to be chemically coated to prevent rust formation, the piping shall be drained until empty. Refer to Section titled “Testing, Adjusting and Balancing for HVAC”. Training Hours: This Subcontractor shall provide all of the designated training hours as identified in each specific specification section. This Subcontractor shall provide with their submittal schedule a confirming list of hours as anticipated for review and approval. Timing will not be deducted unless all designated parties are in attendance, including the commissioning team. ABC Company will only receive training between Tuesday and Thursday 8:00 AM to 4 PM. MCAA Student Summit 2014 General Conditions Specification Adders

55 Labels – Temporary: This Subcontractor shall provide temporary labels for all equipment and components brought to the construction site. This shall include temporary identification of piping and ductwork systems, for ease of verification and inspection. Unidentified product with specific system names can be rejected or asked to be removed from the project site. The project manager from the Subcontractor and not the field Foreman shall be confirming all products have been labeled. Protection of Radiant Heat System: This Subcontractor shall provide pressurized, freeze protected water in the radiant heat system after completion of testing. Testing MUST be completed prior to the final concrete installation over the tubing. The pressurization will keep tubing in the proper shape during concrete fill operations and provide an indication of future breaches that may occur during subsequent construction activities. Each of the ceiling hung manifolds will be outfitted with a pressure gage that can be read from the floor and recorded. This monitoring shall be done by this subcontractor and included in the QA/QC plan. Maintenance: This Subcontractor shall be responsible for maintaining all systems prior to final acceptance. All material shall be assumed running from the point of completed commissioning. When permanent equipment is used for temporary heating or cooling, equipment maintenance & operation will be performed by this Subcontractor. This Subcontractor is to submit a maintenance and operational plan for the equipment and systems as prescribed by the operation and maintenance manual. The Subcontractor is to provide a list of all material which must be provided on site for this requirement, including lubrications, special filter, and tools. A maintenance log tag shall be maintained by this Subcontractor... MCAA Student Summit 2014 General Conditions Specification Adders

56 1.Subcontractor shall provide a Site Safety Representative on-site, during the performance of its work, in accordance with requirements set forth in Subcontract Exhibit J and the Project OCIP Manual. This representative shall to ensure compliance with all safety requirements as outlined in Subcontract Exhibit J and this scope of work, and perform all necessary reporting (Site Specific Safety Plan, Job Safety Analysis, permits to work, pre-tasks plans, etc. 2.Subcontractor shall provide a Full-Time Assistant Project Manager on-site, during performance of its work, to ensure compliance with all reporting requirements as outlined in Subcontract Exhibits H (EEO/MWLBE Requirements) and Exhibit I (Environmental and Leeds), and Specification Sections , , and While working on site, this subcontractor’s Superintendent, Foreman (all trades) & Full Time Safety Manager will have radios keyed into the Construction Managers frequency. Radios are to remain on at all times that this subcontractor’s manpower is on site. Non-compliance will result in a $ fine. Subcontractor shall provide the telephone and cell number of their General Superintendent in case of an emergency and/or access to him is required. MCAA Student Summit 2014 General Conditions Specification Adders

57 5.Subcontractor shall comply with the NYC DOT traffic stipulations included in Exhibit N and shall be responsible for any fines or violations caused by non-compliance. 6.This subcontractor shall follow all interim schedules that may be issued and updated by the Construction Manager as the job conditions require, at no additional cost to the Owner. MCAA Student Summit 2014 General Conditions Specification Adders

58 Common Estimating Mistakes = = ?

59 Common Estimating Mistakes Avoid estimating practices that introduce errors: Misread or misinterpreted specifications or drawings Takeoff omissions or miscount Transposing errors Takeoff sheets lost or misplaced Extension miscalculations or incorrect formula’s Missing quotes or Incomplete Scopes from Vendors/Subs Estimating by cost per square foot or unit prices Using the percentage method to establish the cost of certain systems

60 Helpful Hints  When done with the Final Front sheet – Run a Tape  Proof Read, Proof Read, then Proof Read  If working Job Overtime, do not forget to include your Field Administration. The same goes for Escalation  When Developing Salary Structure be realistic  When setting up your Company make sure you are financially capable of performing the work.  $25,000,000 Annual Sales do not do $50,000,000 projects  Don’t have Executives of $80,000,000 Companies running work  Don’t Drop your price. Negotiate something for it  Don’t do work for free

61 Good Luck Good Luck with the 2014 Student Chapter Competition Thank you for the OPPORTUNITY !


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