4/28/2003CVEN Maxwell 1 Job Site Issues Module October 14, 2015

4/28/2003CVEN Maxwell 2 Purpose Recap some of the overall job site issues leading to project close out.

4/28/2003CVEN Maxwell 3 Learning Objectives Be able to list and describe briefly the following Job-Site Issues.

4/28/2003CVEN Maxwell 4 1. Acceptance and Withdrawal Period Bids are due at a specific time and place. Bid security (bond) protects Owner from Contractor's failure to sign contract. Acceptance Period protects Contractor from Owner’s delay in signing the contract.

4/28/2003CVEN Maxwell 5 2.Award of Notice to Proceed Consummates the relationship between the Owner and contractor. Letter of Intent – a legally binding agreement to eventually sign a contract. Establishes a Start Date. Generally grants access to the work site.

4/28/2003CVEN Maxwell 6 3.Contract Agreement Pulls together: Plans and specifications Standard forms Payment schedule Standard Terms and Conditions Any special or additional T&C’s, Forms, etc. Processes for Change Orders, Time Extensions, Payment Schedule changes, etc.

4/28/2003CVEN Maxwell 7 4.Time Extensions Various reasons: Design problems Owner modifications Strikes, Weather, Late Deliveries, etc. Affects Progress Payments No-Cost extensions are more likely in research or consulting.

4/28/2003CVEN Maxwell 8 5.Change Orders Any alteration of the formal agreement requires a Change Order. They may be needed: To correct design and specification problems Owners change their minds. Conditions change – subsurface, new codes, technology, economy, etc. Only the Owner or his official designee can sign a change order. Since they are non-competitive in nature, they may be a “license to steal.”

4/28/2003CVEN Maxwell 9 6.Suspension, Delay, or Interruption For one reason or another, the Owner may order the Contractor to suspend or delay work. The Contractor will usually claim damages. For one reason or another, the Contractor may delay job completion. The Owner will usually claim liquidated damages. They are hard to collect.

4/28/2003CVEN Maxwell 10 7.Progress Payments and Retainage Payments are based upon an agreed upon schedule of values, mile stones, or %-complete estimates. Retainage is returned after the work is completed to the Owners satisfaction.

4/28/2003CVEN Maxwell Job Close Out Completion of the work (Close Out) may be a contentious exercise. The “Punch List” is used to protect both parties from unnecessary delays in establishing the actual completion date. Completion of “Punch List” establishes the completion of the contract.

4/28/2003CVEN Maxwell 12 PAT # Take out a piece of paper, put your name on it, … Who is the only one authorized to sign a “change order?” Turn it in.