1 Today’s pegboard Drawings & Specd due 11/21

2 Today’s pegboard Cirrious Tightpinch

UW-Madison CEE 578 Capstone Design 6 – Preparing ‘Up Front’ Documents November 6, 2012 Michael D. Doran, P.E. DEE Professor of Practice

4 Assignment #12 – Due 12/6/12  Owner-Builder Contract Up Front Documents  Owner-Engineer Agreement  Opinion of Cost  Schedule

5 Owner-Builder Agreement is contained in Construction Contract Documents

6 EJCDC vs Standard Spec Format for ‘Up Front’ Docs

7 A contract is an exchange of promises that is legally binding 1.Identify the parties 2.Define the “promises” (scope) of each party 3.Define the timeframe for delivery 4.Define the “consideration” 5.Define other terms and conditions such as bonds, insurance, limitations, termination and dispute resolution A contract will: What is a Contract?

8 A contract must have: 1.Offer and acceptance 2.Consideration (financial) 3.An intention to create legal relations 4.Legal capacities (parties have legal ability to agree) 5.Formality (in accord with local law) What is a Contract?

9 A contract must not be: 1.Illegal 2.Frivolous 3.Indeterminate 4.Impossible What is a Contract?

10 So, in summary, a contract is: A legally binding agreement between parties made by genuine offer and acceptance of clear terms by each, specifying the promises of each, the financial terms, time schedule and other terms and conditions. What is a Contract?

11 Moodle pages provide study examples for Owner-Engineer Agreement  Sample letter agreement  EJCDC E-500 Series Documents General agreement Task Order format Short form agreement Agreement for study phase Subagreement (engineer-consultant) Engineer-Owner Agreement

12 Engineering Agreements contain common elements  Who are entities making the agreement?  For what project?  Scope of service of Engineer  Scope of Deliverables or ‘In-Kind’ of Owner  Engineer’s fee and basis of payment  Schedule of deliverables  Terms  Signature page Engineer-Owner Agreement

13 Engineering Agreements contain common elements  Who are entities making the agreement?  For what project?  Scope of service of Engineer  Scope of Deliverables or ‘In-Kind’ of Owner  Engineer’s fee and basis of payment  Schedule of deliverables  Terms  Signature page Engineer-Owner Agreement

14 Engineering Agreements contain common elements  Who are entities making the agreement?  For what project?  Scope of service of Engineer  Scope of Deliverables or ‘In-Kind’ of Owner  Engineer’s fee and basis of payment  Schedule of deliverables  Terms  Signature page Engineer-Owner Agreement

15 Engineering Agreements contain common elements  Who are entities making the agreement?  For what project?  Scope of service of Engineer  Scope of Deliverables or ‘In-Kind’ of Owner  Engineer’s fee and basis of payment  Schedule of deliverables  Terms  Signature page Engineer-Owner Agreement

16 Engineering Agreements contain common elements  Who are entities making the agreement?  For what project?  Scope of service of Engineer  Scope of Deliverables or ‘In-Kind’ of Owner  Engineer’s fee and basis of payment  Schedule of deliverables  Terms  Signature page Engineer-Owner Agreement

17 Agreement contain common elements  Who are entities making the agreement?  For what project?  Scope of service of Engineer  Scope of Deliverables or ‘In-Kind’ of Owner  Engineer’s fee and basis of payment  Schedule of deliverables  Terms  Signature page Engineer-Owner Agreement

18 Engineering Agreements contain common elements  Who are entities making the agreement?  For what project?  Scope of service of Engineer  Scope of Deliverables or ‘In-Kind’ of Owner  Engineer’s fee and basis of payment  Schedule of deliverables  Terms  Signature page Engineer-Owner Agreement

19 Engineering Agreements contain common elements  Who are entities making the agreement?  For what project?  Scope of service of Engineer  Scope of Deliverables or ‘In-Kind’ of Owner  Engineer’s fee and basis of payment  Schedule of deliverables  Terms  Signature page Engineer-Owner Agreement

20 Terms and conditions attempt to allocate risk  Amendment or extension  Insurances, Indemnities  Name particular responsible individuals, subconsultants  Limits of liability  Intellectual property rights  Dispute resolution, termination Engineer-Owner Agreement

21 Terms and conditions attempt to allocate risk  Amendment or extension  Insurances, Indemnities  Name particular responsible individuals, subconsultants  Limits of liability  Intellectual property rights  Dispute resolution, termination Engineer-Owner Agreement

22 Terms and conditions attempt to allocate risk  Amendment or extension  Insurances, Indemnities  Name particular responsible individuals, subconsultants  Limits of liability  Intellectual property rights  Dispute resolution, termination Engineer-Owner Agreement

23 Terms and conditions attempt to allocate risk  Amendment or extension  Insurances, Indemnities  Name particular responsible individuals, subconsultants  Limits of liability  Intellectual property rights  Dispute resolution, termination Engineer-Owner Agreement

24 Terms and conditions attempt to allocate risk  Amendment or extension  Insurances, Indemnities  Name particular responsible individuals  Limits of liability  Intellectual property rights  Dispute resolution, termination Engineer-Owner Agreement

25 Terms and conditions attempt to allocate risk  Amendment or extension  Insurances, Indemnities  Name particular responsible individuals  Limits of liability  Intellectual property rights  Dispute resolution, termination Engineer-Owner Agreement

26 Key provisions shield Engineer from unwarranted risk  Limitations of indemnity language  Status of Contractor submittals and limits of Engineer’s review  Resident Engineer’s role and responsibilities  Opinions of Cost  Project-specific insurance Engineer-Owner Agreement

27 Key provisions shield Engineer from unwarranted risk  Limitations of indemnity language  Status of Contractor submittals and limits of Engineer’s review  Resident Engineer’s role and responsibilities  Opinions of Cost  Project-specific insurance Engineer-Owner Agreement

28 Key provisions shield Engineer from unwarranted risk  Limitations of indemnity language  Status of Contractor submittals and limits of Engineer’s review  Resident Engineer’s role and responsibilities  Opinions of Cost  Project-specific insurance Engineer-Owner Agreement

29 Key provisions shield Engineer from unwarranted risk  Limitations of indemnity language  Status of Contractor submittals and limits of Engineer’s review  Resident Engineer’s role and responsibilities  Opinions of Cost  Project-specific insurance Engineer-Owner Agreement

30 Key provisions shield Engineer from unwarranted risk  Limitations of indemnity language  Status of Contractor submittals and limits of Engineer’s review  Resident Engineer’s role and responsibilities  Opinions of Cost  Project-specific insurance Engineer-Owner Agreement

31 Teamwork Session  Verify format (EJCDC, Standard Spec, etc.) you will be using.  Verify source of electronic files to use.  Verify Engineer-Owner Agreement basis.  Discuss methods to use for finalizing Opinion of Cost and Schedule.

32 Questions and discussion