Construction Cost Estimating Class #2: Contract Documents Prof. Ralph V. Locurcio, PE

1.The Agreement or Contract 2.The Specifications 3.The Drawings Important Note: Unless otherwise specified this list is the order of precedence of the contract documents

The agreement is the legal document signed by the owner and the builder that outlines the terms under which the project will be built. It includes such items as cost, time, management, reports, quality, penalties and all such details that define the owners intent.

Define the qualitative requirements of the project that is to be built. Provide a detailed description of the performance features of all components of the project. Describe the nature of the materials and the workmanship & procedures to be followed in constructing the project. Include those aspects of assembly or construction that affect the performance of the components.

Define the geometry of the project and all of its components. Include the general form, dimensions and details of all project features that are to be fabricated on site. Show the relationship of all components to each other. May include details, notes and instructions that amplify the specifications.

Plans are frequently updated as the design progresses. Specifications may be written independently of the plans. Specifications are very complex and detailed; some changes are missed. Specifications are often prepared by different authors. Master or standard specifications may have been used. Project budget may not allow for proper coordination of plans & specs

The contract takes precedence over the specifications. The specifications take precedence over the plans. Builder/contractor must notify the owners rep of any conflict he encounters.

Use of generalities… terms not specific Scope of work issues… intent not clear Unenforceable phrases or conditions… Ambiguity generally settled in favor of the builder!

Instructions to bidders: May be part of General Conditions Proposal & bid format Bonding & certificates Affidavits General conditions: Contract administration Correlation of documents Authority of parties Supervision Payment Damages Disputes Technical provisions Installation or fabrication instructions Materials & performance criteria

Construction Specification Institute (CSI) Commonly called CSI Format 17 Division breakout of work items Organized by construction trades Typically used for construction of buildings Widely accepted by owners & builders

1. General requirements10. Specialties 2. Site work & utilities 11. Equipment 3. Concrete12. Furnishings 4. Masonry13. Special construction 5. Metals14. Conveying systems 6. Wood & plastics15. Mechanical 7. Thermal & Moisture Prot.16. Electrical 8. Doors & windows17. Instrumentation & Controls 9. Finishes See pp Fisk for detailed breakdown

ASCE Civil Engineering Format State & Federal DOT Highway Format City & County Civil Formats AASHTO Standard Hiway Format Non-DOT Standard Formats

Standard Specification: General contract conditions Standard technical specs Covers all possible highway & bridge projects May cover alternative methods Special/Contract Provisions: Must accompany Standard Spec Adapts standard to a specific project Contains special provisions particular to the project Provides additions or deletions to standards

Info similar to CSI Divisions… Tailored to civil or heavy engineering works Tailor standard specs to a specific contract application Part I-Proposal & Contract Notice Inviting Bids Bid formats & related items Agreement & related forms Part II-Special Provisions 1. Definitions & terms7. Legal relations & public 2. Bidding req & cond8. Prosecution & progress 3. Award & execution9. Measurement & payment 4. Scope10. Construction details which add 5. Control modify or delete standard spec 6. Control of material

Specify procedures for contract admin Not intended to change the contract Typical provisions: Define terms used in contract docs Preconstruction matters Use/reuse of contract documents Contract times & schedule Changes Payments Suspension of work Dispute resolution Many more

Engineers Joint Contract Documents Committee (EJCDC)… recognized by ACEC, ASCE, NSPE, CSI, AGC American Institute of Architects (AIA) International Federation of Consulting Engineers (FIDIC)

Produced by collaboration with government & industry; critiqued by AE & legal professionals. Withstood test of time & experience; complete, up to date. Accepted as fair & equitable, builders familiar with them, terms understood. Tested in court Result in more stable bid prices

Contract documents never perfect… Field condition vary from design assumptions Spec writers usually have no construction experience Specs sometimes out of date PM/CM must evaluate & respond Requires considerable judgment & experience Estimator must read the specs Specs not a legal document for claims & disputes Good communications between writer & inspector needed Feedback to spec writer is essential

No tolerance is poor management There are no absolutes in reality Design doesnt require absolute compliance Specified tolerances a better method Manufacturing always specifies tolerances Reasonable tolerances are justified PM/CM sets the standard in the field Practice would reduce bid prices

Unforeseen underground conditions Latent physical conditions; unknown or unusual Differ significantly from printed contract docs or data Require increased work not included in bid Architects responsibility in design Make reasonable subsurface investigations Advise builder of all available data & design assumptions Not responsible for 100% accuracy Builders responsibility in bidding Not expected to perform subsurface investigation Become familiar with all conditions of site Cover risk with pricing & contingency Federal Guidelines Pay for reasonable compensable conditions Reduces bidders risk & contingencies in contract Sharing the risk Parties agree to a formula in contract documents

AE obligation to ensure that materials & products conform to those specified. Owner may claim negligence if components do not perform Care must be exercised in accepting alternatives Be especially aware of new or non-standard materials Builder constantly seeking lowest market price for acceptable materials. Must prove that all materials used meet spec Must obtain owners (representative) approval to substitute May not submit alternatives during bidding process

Concept of one-to-one authority PM/CM deals solely with the General Contractor. General Contractor is responsible to hire subcontractors for the job. Selection includes evaluation of the subcontractors competence Responsibility includes all acts & omissions of any sub General Contractor must have effective contracts, admin procedures & management Architect & Owner/rep not responsible for how the Builder subcontracts the work

Function of Shop Drawings Link between design & construction Show details of fabrication, assembly & installation Allow introduction of commercially tested products Show method of accomplishing special requirements Contracts usually require approval prior to ordering Approval of Shop Drawings Contract SPs usually specify list of shop drawings Builder must submit schedule of submissions Owner must approve submittals for conformance to specs Builder responsible for accuracy, means & methods, quality Misuse of Shop Drawings Submissions may not change contract requirements or design intent Builders responsibility to conform, even if missed by AE/Owner review