04 Managing Construction Phase - June 2002

Managing the Construction Phase A Guide for Project Administration Contents A Guide for Project Administration Contents .1 Introduction to Construction Phase Construction Start-Up Activities Approving Contractor Schedules The Construction Schedule The Initial Schedule of Values Conducting the Pre-Construction Meeting 10 Notifying Meeting Participants 10 Setting the Agenda 10 Obtaining and Checking Permits 18 Obtaining a State Building Permit 18 Obtaining an NPDES Permit 31 Daily Activities 32 Weekly Activities 34 Administering Progress Meetings 34 Preparing the Agenda .34 Preparing and Distributing Meeting Minutes 35 About Coordination Meetings 36 Coordination Drawings and Shop Drawings 36 Monthly Activities 37 Approving Contractor Pay Applications 37 Timing 40 Components of the Pay Application 40 Managing the Construction Phase Revised June 2002 Page Reasons to Reject a Pay Application .52 The Final Pay Application .56 Approving Updated Construction Schedules .58 Ongoing Activities 59 Managing Project Changes 59 Reasons for Change 59 Processes for Making Changes 59 Approving Shop Drawings 65 About Shop Drawings 65 Approval Requirements 65 Figures Initial Schedule of Values Pre-Construction Meeting Notification Contractor Information Sheet Ohio Application for Plan Approval Worksheet for Fees to Be Paid Plumbing Fee Schedule 7a–d Contractor Pay Application: Cover Sheet Contract Cost Breakdown and Partial Payment Sheet Summary of Change Orders Sheet Schedule of Values Notice of Fixed Retainage Amount Certification of Material Stored At Site 10 Certification of Material Stored Off Site 11 Pay Application Rejection Letter 12 Affidavit of Contractor 13 Request for Information Charts Page Contractor Pay Application Process Change Order Process Revised June 2002Managing the Construction Phase Changes to Managing the Construction Phase Revision 2, June 2002 Changes made as part of this revision appear with a Page 19 in the margin Description/Reason The Note text was changed to reflect the Division of Industrial Compliance’s recommendation that UC applicants use the University’s credit card to pay building permit fees associated with smaller projects Managing the Construction Phase Revised June 2002 Page Introduction to Construction Phase The construction phase encompasses all activities between the Contractor’s receipt of the Notice to Proceed and the completion of construction (Project acceptance and closeout activities will be covered in a future communication.) This chapter presents Project Administration’s activities during the construction phase according to their usual timing and frequency: Page • Construction start-up activities • Daily activities • Weekly activities • Monthly activities • Ongoing activities Revised June 2002Managing the Construction Phase Construction Start-Up Activities Construction start-up activities for the Associate Architect or Project Administrator (as applicable for the project) include the following: • Approving initial Contractor schedules; • Conducting a pre-construction meeting; and • Obtaining needed building and environmental permits from the State, and ensuring that Contractors have obtained any required permits from local authorities Approving Contractor Schedules Both the Project Administrator and the Associate (if the project uses an Associate) must review and approve two types of Contractor schedules: • The Construction Schedule developed by the Lead Contractor, and • The initial Schedule of Values submitted by all Contractors Both of these schedules must be approved before Contractors can be paid The Construction Schedule The Lead Contractor must submit an initial Construction Schedule to the Associate Architect (or directly to the Project Administrator, if the project does not use an Associate) To develop this Construction Schedule, the Lead Contractor must obtain input from all prime Contractors on the project The Construction Schedule can then be developed to reflect all Contractors’ activities and milestones All the prime Contractors must sign the Construction Schedule before it is submitted to the Associate or Project Administrator Signatures indicate the Contractors’ agreement that the milestones and contract completion date can be met as shown on the schedule The initial Construction Schedule must show completion of the contract by the date specified in the Notice to Proceed Managing the Construction Phase Revised June 2002 Page The Construction Schedule will change as the project moves forward The Lead Contractor must monitor overall construction progress against the schedule and make revisions as necessary, providing an updated Construction Schedule to the Associate or Project Administrator at least once monthly (see “Approving Updated Construction Schedules”) Page Revised June 2002Managing the Construction Phase Requirements for Construction Schedules The following sections present an overview of requirements for the presentation and content of Construction Schedules More detailed information can be found in the cited sections of the University’s Front-End Specifications (General Conditions), which are provided to all Contractors and Associates (www.uc.edu/architect/design.asp) Requirements for Construction Schedules are detailed in the project’s General Conditions (Article 4.3, “Construction Schedule”) The Project Administrator must become familiar with this section of the specifications The Initial Schedule of Values The Contract Cost Breakdown and Partial Payment document includes the Schedule of Values See Article 9, “Contractor Payment”, of the project’s General Conditions The Schedule of Values sheet is used to break the Contractor’s project responsibilities into individual, highlevel items of work (Depending on the size of the project, the Construction Schedule may provide further work breakdown.) At project startup, each prime Contractor submits a Schedule of Values with only columns 8a–8e completed: • • Column 8a lists item numbers Column 8b lists the descriptions of the items within the Contractor’s scope • Column 8c lists per-item and total labor costs • Column 8d lists per-item and total material costs • Column 8e lists per-item totals for both labor and material The Associate (if applicable) and the Project Administrator must approve the Schedule of Values before the Contractor will be paid The Project Administrator’s and Associate’s signatures confirm their agreement with the Contractor’s cost breakdown for the project Note: As the project progresses, the Contractor will resubmit the Schedule of Values as part of each scheduled payment request These submittals show the Contractor’s costs for the pay period indicated When approving a pay application, the Project Administrator (and Associate, if applicable) must confirm the Contractor’s statements Managing the Construction Phase Revised June 2002 Page regarding the percentage of work that is complete See the section “Approving Contractor Pay Applications” Figure on the following page shows a Contractor’s initial Schedule of Values Page Revised June 2002Managing the Construction Phase 1/15/98 s:\shareall\forms\cm\costbrk.xls Form UC-4c Figure 1: Initial Schedule of Values Managing the Construction Phase Revised June 2002 Page Conducting the Pre-Construction Meeting Before construction begins, the Project Administrator must schedule and conduct an initial meeting of all prime Contractors and the Associate Architect (if the project uses an Associate) This pre-construction meeting should have the following objectives: • To introduce the project and personnel • To review project status and scope • To discuss project coordination issues • To review requirements for care and use of the work site • • To discuss issues related to construction and labor management To explain each party’s obligations under the Contract Documents To discuss requirements for project documents and submittals To discuss requirements of Contract Compliance (EEO) • To discuss safety requirements • • Notifying Meeting Participants Once a date has been set for the pre-construction meeting, the Project Administrator or a support staff member should prepare a meeting notification and distribute it to all Contractors and the Associate A template for the preconstruction meeting notification appears on the following page as Figure Setting the Agenda The sections that follow present typical discussion topics for a pre-construction meeting Depending on the project, all or a portion of these topics may need to be included on the agenda The list is not necessarily all-inclusive Introduction The meeting can help establish an atmosphere of teamwork and cooperation among the University, Associate, and Contractor personnel who will work on the project The Project Administrator can begin the meeting by having all Page 10 Revised June 2002Managing the Construction Phase Summary of Change Orders Sheet (Figure 7c) The Project Administrator (or Associate, as applicable) must inspect work to verify that the Contractor has completed change orders to the level attested in the % Comp column on this sheet Schedule of Values Sheet (Figure 7d) With each new pay application, the Contractor completes columns 8f–8i on the Schedule of Values to request payment for work completed during the period When a Contractor submits a pay application, values should appear in the following columns: • Column 8f shows the contract costs for both labor and material completed to date • Column 8g shows the percentage completed to date for both labor and material The Project Administrator or Associate, as applicable, must confirm the accuracy of these percentages before approving the pay application • Column 8h shows the contract costs for labor completed to date • Column 8i shows the contract costs for material completed to date The Project Administrator or Associate, as applicable, must inspect work items on site to verify that work has been completed to the extent the Contractor claims in column 8g If it has not, the Project Administrator must reject the pay application, and the Contractor must resubmit it to show accurate completion percentages (See “Notifying the Contractor of Pay Application Rejection”.) Note: The amounts shown in columns 8c–8e are contract totals; they not change from one pay period to the next See the section “Approving Contractor Schedules” for information on approving the Schedule of Values at project startup Reasons to Reject a Pay Application The Accountant, Associate, or Project Administrator, as applicable, may reject a Contractor’s pay application for any of the following reasons: Page 52 Revised June 2002Managing the Construction Phase • The work has not been completed to the extent claimed on the pay application (i.e., the Contractor is requesting payment for work not completed) • The Contractor has incorrectly calculated the amount to be withheld for retainage Managing the Construction Phase Revised June 2002 Page 53 • The Schedule of Values, Summary of Change Orders, and/or Contract Cost Breakdown and Partial Payment sheet show incorrect calculations or discrepancies between figures carried from one sheet to another • The Contractor has entered an incorrect previous payment amount (for labor, material, or both) on the Contract Cost Breakdown and Partial Payment sheet • The Contractor has failed to include required supporting documentation Notifying the Contractor of Pay Application Rejection To reject a pay application, Capital Finance must return the pay application to the Contractor along with a letter explaining the reason for rejection (The Project Administrator receives a copy of this letter.) An example rejection letter to a Contractor appears on the following page as Figure 11 Page 54 Revised June 2002Managing the Construction Phase Figure 11: Pay Application Rejection Letter Managing the Construction Phase Revised June 2002 Page 55 If the Project Administrator or Associate determines that work has not been completed to the extent the Contractor claims on the Schedule of Values, the pay application must not be approved The Project Administrator should return the pay application to Capital Finance with an explanation Capital Finance will then generate the appropriate rejection letter The Project Administrator may also elect to discuss the specific issue with the Contractor in person or by telephone DATE: _ to expedite a resolution Note: The Project Administrator and Associate should never make any handwritten or typed alterations to the Contractor’s pay _ application _ _ _ The Final Pay Application Project Number: must include a signed and notarized Project Name: Each Contractor “Affidavit of Contractor” with its final pay application for the PC#: Inv/Pay Req #:project In signing the affidavit, the Contractor attests that Amt Requested: its subcontractors and material suppliers have been paid in Date of Inv/Payfull, Req:and that the Contractor, subcontractors, and suppliers all have complied with ORC 4115 (“Wages and Hours on Public Works”) Dear Mr./Ms : The attached invoice/pay request is being returned unprocessed for the followingreviews checked ( the ) The University’s Office of Contract Compliance reason(s): Contractor’s affidavit and final pay application before final payment isismade Retainage calculation incorrect Schedule of ValuesAffidavit does not calculate properly (Form UC-4b) A blank appears on the following page as Figure Summary of Change Orders Issued does not calculate properly (Form UC-4d) 12 Amount of previous payment listed incorrectly for: LABOR MATERIAL Missing Time & Material supporting documentation Missing Purchase Order number Missing affidavit(s) Summary of Change Orders Issued does not include all change orders issued to date Invoice is requesting payment for work that has not been completed at this time Other: Please correct and return for further processing Should you have any questions, please contact Sandy Ewing at (513) 556-3153 Sincerely, Charlotte A Homer Director, Capital Finance CAH/cs Page 56 Enclosure cc: R D Renner Project Manager Sandy Ewing File: 0044 _ Revised June 2002Managing the Construction Phase (w/o attachment) “ University of Cincinnati Office of the University Architect Department of Construction Management PO Box 210181 Cincinnati, Ohio 45221-0181 State of Ohio, County of A F F I D A V I T OF C O N T R A C T O R (Contractor is required to submit this with the final pay request and/or request to release escrow) The undersigned certifies that the Contractor, all Subcontractors and Material Suppliers have fully complied with Chapter 4115 ORC, "Wages and Hours on Public Works", for the following Project: Project No.: Project Name: Affiant further certifies that all Subcontractors and Material Suppliers have been paid in full for all Work performed or materials furnished for the Project (check below if applicable):  except such amounts as will be paid from the estimate now due  except those liens which the Contractor previously disputed and resolved with the University by providing a Bond pursuant to Section 1311.311 ORC and has served a notice to commence suit to the lien claimant W A I V E R OF L I E N Affiant further relieves (NAME OF OWNER) of all responsibilities of such debts incurred to date hereof against said contract Further affiant sayeth naught Authorized Signature: Print Name: Title: Company Name: Sworn to and subscribed before me this day of , 20 Notary Public Form No UC-8 S:\Shareall\Forms\CM\Affidavi.doc 4/15/96 Figure 12: Affidavit of Contractor Managing the Construction Phase Revised June 2002 Page 57 Approving Updated Construction Schedules Construction Schedules must be updated once monthly by the Lead Contractor and approved by both the Project Administrator and the Associate (if the project uses one) The Lead Contractor submits these schedule updates to the Associate for approval by the Associate and the Project Administrator The Lead Contractor signs the schedule update to indicate agreement that any updated milestone dates or the completion date can be met Monthly schedule updates must list all changes to the previously approved schedule or to the most recent monthly update, as applicable Page 58 Revised June 2002Managing the Construction Phase Ongoing Activities The activities described in this section can become necessary at any time during the construction phase They include: • Managing project changes, and • Approving shop drawings Managing Project Changes Throughout the construction phase, it may become necessary to change some element or elements of the work Changes can be major or minor, and a single project can undergo many alterations between startup and completion Reasons for Change Any of the following circumstances can prompt a need for changes to a construction project: • An owner request • An error or omission • An unforeseen field condition • A dispute among Contractors, the Associate, and/or the University • Identification of a value-engineering improvement • Reconciliation of unused funds in a Purchase Order Processes for Making Changes The University has defined the following processes for managing change on construction projects: • Change Order Process If the change will affect the project’s schedule or budget (both of which are elements of the original contract), a Change Order must be initiated and approved before work can go forward Change Orders are formally initiated by the Project Administrator or the Associate Architect They must be approved by the Project Administrator, Associate (if applicable), and the affected Contractor Depending on the cost of the change, approval by others may also be required Managing the Construction Phase Revised June 2002 Page 59 • Request for Information (RFI) Process If a change has no impact on the project cost or schedule and does not alter the intent of the Construction Documents, it can be executed via a Request for Information (RFI) The Change Order Process An overview of the Change Order Process is presented below These steps apply to standard (i.e., non-emergency) change requests Note: The chapter “Following the Change Order Process” presents more detailed information about initiating, processing, and monitoring Change Order work When a change to contracted work is requested, the Project Administrator or Associate Architect (as applicable) confirms that the change is needed and that sufficient funding is available in the project budget The Architect provides details about the change to the Construction Contractor in a Bulletin or other appropriate means as determined by the Project Administrator From the Bulletin, the Construction Contractor develops a proposal (including cost) to complete the change work The Project Administrator and/or Architect review and respond to the proposal, checking it for conformance to University pricing requirements and conducting negotiations as necessary Using the pricing in the Construction Contractor’s proposal, the Architect (or SSE, depending on contractual responsibilities) prepares the Change Order Form The Architect, Project Administrator, Senior Staff Engineer, and Construction Contractor sign this form The SSE oversees completion of the A-600 Form This form provides accounting personnel with the information they need to enter the funding change into CUFS Ultimately the A-600 will be provided to the vendor as authorization to bill for the change work The Project Administrator determines whether the Change Order requires contract approval and routing If so, the Project Administrator completes the A-910 form, which summarizes the contract change for the individuals who will need to sign it Page 60 Revised June 2002Managing the Construction Phase The Project Administrator assembles the Change Order Form, the A-600, the supporting documentation (such as the Contractor’s proposal), and the A-910 form (if required), and submits them for approval and quality-assurance steps If contract approval is required, Capital Projects Reporting checks the Change Order paperwork for accuracy, and the package is routed for signatures 10 The Accountant checks the Change Order paperwork for accuracy, enters the Change Order funding information into OASIS and CUFS, and approves the A600 Form 11 Capital Finance sends the A-600 form (and supporting documents) to University Purchasing Purchasing issues a copy of the A-600 to the vendor as authorization to begin billing Note: The above steps apply to “standard”, or non-emergency, changes to Construction Contracts In emergency cases, a shorter process can be followed so that urgently needed work can begin immediately See the chapter “Following the Change Order Process” for information about emergency changes Chart on the following page illustrates the Change Order Process Managing the Construction Phase Revised June 2002 Page 61 Change to contracted work is requested Confirm change is needed and funds are available Is this change an emergency? Yes Wil this change cost more than $10,000? No Yes Complete Emergency Field Work Order (EFWO) and collect signatures Complete Change Order Form and collect signatures Review Contractor proposal and negotiate price if necessary Review Contractor proposal and negotiate price if necessary Complete A-600 Form Does change require contract approval? Does change require contract approval? Yes Complete A-910 Contract Approval Form No No Assemble contract documents for processing Yes Prepare Bulletin for Construction Contractor Complete Change Order Form and collect signatures Complete A-600 Form Complete A-910 Contract Approval Form No Assemble Change Order documents for processing Chart 2: Change Order Process Page 62 Revised June 2002Managing the Construction Phase The RFI Process Contractors complete the RFI form to request approval for “minor” changes—those that not change project cost or schedule, and not deviate from the overall intent of the Contract Documents The Contractor submits the RFI to the Associate (or Project Administrator, if the project does not use an Associate) The Associate evaluates the request and enters a response in the REPLY section of the form The Associate then provides copies of the evaluated request to the Contractor and the Project Administrator A blank RFI form appears on the following page as Figure 13 Managing the Construction Phase Revised June 2002 Page 63 REQUEST FOR INFORMATION (PLEASE PRINT) TO: RFI NO.: DATE: ATTN: ANSWER NEEDED BY: FROM: DRAWING NO SPEC NO PROJECT: DESCRIPTION: SIGNED: PHONE NO REPLY: SIGNED: PHONE NO.: s:\shareall\forms\cm\rfi.doc Figure 13: Request for Information Page 64 Revised June 2002Managing the Construction Phase Approving Shop Drawings The Associate must review submittals of shop drawings from each prime Contractor at regular intervals as determined by the schedule If the project does not use an Associate, the Project Administrator approves shop drawings About Shop Drawings Shop drawings illustrate a portion of the Contractor’s work One drawing per assembly or item of work is generally required Timing Delivery dates for shop drawings are established in the Construction Schedule (or, depending on the project, in a separate schedule that shows only submittals) The Associate (or Project Administrator) must review and respond to submittals within the time frame established in the Contract Documents and submittal schedule (usually within 15 days of receipt) Content and Format The Contractor must stamp all shop drawings before submitting them to the Associate or Project Administrator The stamp indicates that the Contractor has reviewed the drawings for completeness and conformance to requirements before submitting them The Contractor should include a cover letter when submitting the drawing or set of drawings to the Associate One Mylar™ version and three prints of each drawing are required Article 14 of the Front-End Specifications (General Conditions) provides complete details about the required content and format of shop drawings Approval Requirements The Associate reviews and approves shop drawings to confirm that the work depicted conforms to the requirements of the Construction Documents and is otherwise consistent with the project’s design concept Managing the Construction Phase Revised June 2002 Page 65 If the Associate rejects a drawing or set of drawings, he or she should provide the Contractor with guidelines for correcting the work The Contractor must then submit a corrected drawing or drawings Contractors are not to begin work on an item requiring a shop drawing until the Associate has approved the drawing Page 66 Revised June 2002Managing the Construction Phase ... Revised June 200 2Managing the Construction Phase 1/15/98 s:shareallformscmcostbrk.xls Form UC-4c Figure 1: Initial Schedule of Values Managing the Construction Phase Revised June 2002 Page... performs the construction monitoring duties that otherwise would be held by an Associate Page 32 Revised June 200 2Managing the Construction Phase Managing the Construction Phase Revised June 2002 Page... Revised June 200 2Managing the Construction Phase attendees introduce themselves A sign-in sheet should be circulated during the meeting to record attendance Managing the Construction Phase Revised June