Construction Cost EstimatingClass #2: Contract Documents

Prof. Ralph V. Locurcio, PE

1.The Agreement or Contract2.The Specifications3.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 owner’s “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 it’s 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 owner’s 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 requirements 10. Specialties2. Site work & utilities 11. Equipment3. Concrete 12. Furnishings4. Masonry 13. Special construction5. Metals 14. Conveying systems6. Wood & plastics 15. Mechanical7. Thermal & Moisture Prot. 16. Electrical8. Doors & windows 17.

Instrumentation & Controls9. Finishes

See pp.156-157 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 worksTailor standard specs to a specific contract

application Part I-Proposal & Contract

Notice Inviting Bids Bid formats & related items Agreement & related forms

Part II-Special Provisions1. Definitions & terms 7. Legal relations & public2. Bidding req & cond 8. Prosecution & progress3. Award & execution 9. Measurement &

payment4. Scope 10. Construction details which add5. Control modify or delete standard spec6. 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 doesn’t 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

Builder’s 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 bidder’s 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 owner’s (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 subcontractor’s 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

Builder’s responsibility to conform, even if missed by AE/Owner review