Project

Management
andControl
(AE 452)
Lecture 6
 You survived the bidding
competition and were
announced the winner.
The Great! A construction contract
Construction is an agreement between
Contract the owner and the
❑ What you’re
accountable for is contractor and is
outlined in the enforceable by law.
contract.
 The contractor is responsible for delivering the project in
accordance with the plans and specs.
The
Construction
Contract The bottom line is that every aspect of the project will be
controlled by these documents, and the work of the contractor will
be judged by them.
 The contract documents are the medium through which the
architect or engineer communicates the design intent to the
contractor. Therefore, you can certainly understand just how
important it is that the documents be as complete and free
The from error as possible.

Construction The project manual, which includes the specifications,

Contract defines the quality of the work.

The components of the contract documents are discussed in

detail here.
Types of
Contract
documents

Contract documents
The drawings, conditions, terms, and specifications setting forth
the requirements for constructing the project.
 ❑ If I were to choose the most basic skill necessary for anyone
involved in construction, it would be the ability to read
construction drawings.

Every one of those symbols, abbreviations, and lines

The represents an instruction to the builder.

Drawings
I predict that, in the not too distant future, two-dimensional
plans will be completely obsolete, and electronic modeling
will become the communication tool of choice for all building
projects. But, in the meantime, it is important for anyone
interested in construction management to understand what
exactly constitutes a set of construction drawings.
 - The architect is in charge of coordinating all of these efforts and
is responsible for compiling the final set of design documents.
Therefore, the drawing set is organized by the various types of
designs required to fully communicate the extent of the

Organization of construction (such as civil drawings, architectural drawings,

the Drawings structural drawings, and so on), and they are numbered
accordingly for easy reference.

- Most sets of drawings start with a cover sheet providing

general information about the project.
 ❑ Civil drawings These drawings are usually prepared by a civil engineer
working with the architect and describe all items of work associated with the
site.

❑ Architectural drawings The architectural drawings are prepared by the

architect and usually constitute the bulk of the set.
The order of
drawings in ❑ Structural drawings Good synchronization here can help avoid expensive
accordance with conflicts down the road during construction. The structural drawings identify
the major components making up the structural frame of the building, such as
a standard columns, beams, and girders.

protocol ❑ Mechanical drawings The architect will hire a mechanical engineer to

prepare the mechanical drawings. The mechanical work splits between two
major support components for any building—the plumbing and the heating,
ventilation, and air conditioning (HVAC).

❑ Electrical drawings The electrical work includes all of the rough wiring,
transformers, and panel boxes, as well as receptacles, switches, and light
fixtures.
 Plans o

Elevations o
Types of
Drawings Sections o

Details o
 ❑ This part is often referred to as the specs. Although the
technical specifications do make up the bulk of this manual, a
number of other documents are included in the book.
❑ The project manual contains all the written construction
documents about the structure to be built. Those documents
The include the bidding requirements, contracting requirements,
Project and written specifications for every detail of the building .

Manual
- The project manual typically has four primary sections:
• 1 - Bidding documents
• 2- General conditions
• 3- Supplemental conditions
• 4- Technical specifications
 There are four documents included under this heading:
❑ Advertisement or invitation for bids This item usually appears at the very
beginning of the project manual.

❑ Instructions to bidders This section includes specific instructions regarding

the bidding process and goes into much more detail than the invitation for bids.
1- Bidding
Documents ❑ Bid forms The actual forms that need to be filled out when submitting the bid
are included in this section of the manual.

❑ The agreement form A copy of the contract form is also included in the
project manual. This is the document that will actually be signed by the parties
after the contract is awarded.
 ❑ The general conditions document is one of the most important
documents associated with the contract for construction. In essence, it
sets the ground rules for playing the game. The responsibilities of each
of the parties are clearly delineated, and the specific terms of the
contract are defined in this section of the manual.

I identify the standard clauses that typically appear in the general conditions:
❑ General Provisions
2- General ❑ Owner Responsibilities
❑ Contractor Responsibilities
Conditions ❑ Administration of the Contract
❑ Subcontracts and Subcontractor Relations
❑ Subcontracts and Subcontractor Relations
❑ Changes in the Work
❑ Time and Schedule Requirements
❑ Payments and Completion
❑ Protection of Persons and Property
❑ Uncovering and Correction of Work
❑ Miscellaneous Provisions
❑ Termination or Suspension of the Contract
 ❑ they are considerations beyond the scope of the standard general
conditions and serve as an augmentation to the terms laid out in the
general conditions.

❑ Examples of some project-specific information that may appear in

these conditions are listed here:
3-Supplemental
Conditions - Soils and soil-testing information provided by the owner
- Survey information provided by the owner
- Materials or other services provided by the owner
- Job signage requirements
- Traffic control and pedestrian safety requirements
- Phasing or special schedule requirements
- Requirements for security
- Temporary facilities and sanitation requirements
 ❑ Technical specifications make up the bulk of the project
manual.

4- Technical
Specifications - The primary purpose of the specifications is to clarify and describe the
following aspects of the job:

❑ Quality of materials
❑ Standard of workmanship
❑ Methods of installation and erection
❑ Quality control and quality assurance procedures
 ❑ the owner also determines which contract will be utilized for the project.
Generally, which form is used depends upon the type of project and the
amount of risk that the owner is willing to accept. It is important that the
construction manager be familiar with each type.

Lump-Sum Cost-Plus-Fee
Contract Contracts Contracts
Types
Contract
Types

Guaranteed
Unit-Price
Maximum Price
Contracts
Contracts
 ❑ Lump-sum contracts are the most common type of contract, especially for
building construction. Under this arrangement, the contractor agrees to complete
the work specified in the plans and specs for a single fixed amount of money.
From the owner’s standpoint, this is probably one of the safest contracts because
the cost is known up front.

❑ any flaws, errors, or omissions in the plans and specs will result in a change order.
Change orders result in extra work and/or extra time, both of which result in
Lump-Sum extra cost to the owner.

Contracts
 ❑ Under a cost-plus-fee contract (also referred to as time and materials), the owner
reimburses the contractor for all actual costs associated with the work plus a
fixed fee or percentage of the cost. This type of contract is often utilized in
situations where it is difficult to define the scope of the project accurately or
when time is of the essence and construction needs to start before the full plans
and specs are complete.
Cost-Plus-Fee
❑ For the contractor, this type of agreement guarantees a profit on the job
Contracts regardless of project cost. However, the owner is at significant risk under this
arrangement because there is no limit set for the project cost
 - A contract methodology in which the contractor is reimbursed (repaid) for actual costs
of materials, labor, equipment, subcontracts, overhead, and profit up to a maximum fixed-
price amount. Any costs over the maximum price shall be borne by the contractor. Any
savings below the maximum price will revert to the owner. This type of contract is often
implemented when design is less than 100 percent complete.
Guaranteed
Maximum Price
Contracts
 ❑ Unit-price contracts are used when the work to be performed cannot
accurately be measured ahead of time. Unit pricing is common for heavy
civil and highway-type projects.
❑ It is very difficult to make exact quantity estimates .
❑ The final price for the project is not known until the work is complete.

Unit-Price
Contracts
Thank you