Construction Oversight Process Overview

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Construction Oversight Process Overview

  1. 1. Construction Oversight Ensuring quality homes for service members and their families
  2. 2. The Air Force no longer owns the houses, but retains the inherent right to ensure the transaction documents are adhered to. <ul><li>Goals and Objectives </li></ul><ul><li>Oversight Approach </li></ul><ul><li>Roles and Responsibilities </li></ul><ul><li>Key Legal Documents </li></ul><ul><li>Initial Development Phase (IDP) Components </li></ul><ul><li>Levels of Construction Review </li></ul><ul><li>On-site Construction Surveillance </li></ul><ul><li>On-site Discrepancy Identification and Correction </li></ul><ul><li>Tools and Reporting Requirements </li></ul><ul><li>Formal Dispute Resolution Process </li></ul><ul><li>Bottom Line </li></ul>Overview
  3. 3. Goals and Objectives <ul><li>As the Air Force shifts from MILCON to Privatized housing construction, the oversight approach must reflect this change. </li></ul><ul><li>Construction oversight provides the mechanism to identify and resolve development issues early. </li></ul><ul><li>On-site construction surveillance verifies the Project Owner’s quality assurance and quality control processes are working. </li></ul><ul><li>Ultimately, construction oversight protects the Air Force’s interest in providing quality housing to service members and their families. </li></ul>Like all Air Force housing privatization oversight functions, the primary goal of Construction Oversight is to ensure compliance with the Project’s transaction documents.
  4. 4. Oversight Approach <ul><li>Be welcoming </li></ul><ul><li>Encourage partnering </li></ul><ul><li>Facilitate start-up processes </li></ul><ul><li>Leverage lessons learned </li></ul><ul><li>Engage in proactive communication </li></ul><ul><li>Resolve issues informally and at the lowest level </li></ul><ul><li>Request assistance if necessary </li></ul>Construction oversight is an Asset Level responsibility. However, the MAJCOM will continue to assist Base Asset Management and the Portfolio Level will provide training and additional assistance upon request.
  5. 5. Roles and Responsibilities Under Privatization, the Project Owner is ultimately responsible for adherence to codes, laws, and the transaction documents. <ul><li>The Asset Manager is responsible for providing oversight of the Project Owner’s construction compliance. </li></ul><ul><li>Asset Managers should set the tone regarding partnering, teamwork, and proactive communication. </li></ul><ul><li>If a Construction PM is assigned/contracted, this person will have day-to-day responsibility for managing construction oversight. </li></ul><ul><li>The Asset Manager / PM will ensure routine construction progress partnering meetings take place. </li></ul><ul><li>The Asset Manager / PM and contracted construction oversight personnel will review design plans on behalf of the Air Force. </li></ul>
  6. 6. Roles and Responsibilities (cont.) <ul><li>If necessary, the Asset Manager / PM will provide any written “Design Criteria Exception Notices”. </li></ul><ul><li>The Asset Manager / PM will facilitate issuance of “Notices to Proceed” (NTP) </li></ul><ul><li>The Asset Manager / PM will monitor construction progress and track excusable delays. </li></ul><ul><li>The Asset Manager / PM will manage contracted on-site construction surveillance personnel and ensure any QA/QC issues are properly reported to the PO’s Construction Supervisor and appropriately documented. </li></ul>
  7. 7. Key Legal Documents <ul><li>Ground Lease </li></ul><ul><li>Construction Management Plan </li></ul><ul><li>Community Development Plan </li></ul><ul><li>Facility Design and Construction Plan </li></ul><ul><li>Quality Control Plan </li></ul>In order to manage the construction oversight process effectively, Asset Managers / PMs, must become completely familiar with the following transaction documents: <ul><li>Unit Occupancy Plan </li></ul><ul><li>Utility Services Plan </li></ul><ul><li>Final Design Plans </li></ul><ul><li>Historic Preservation Plan </li></ul><ul><li>Demolition Plan </li></ul><ul><li>Environmental Management Plan </li></ul><ul><li>Transition Plan </li></ul>
  8. 8. Closeout & Demobilization Construction Phase Design Phase Initial Development Phase (IDP) Components The IDP commences when the transaction documents are signed and ends when the construction team demobilizes, followed by issuance of government certificate of compliance/completion. Initial Partnering The Portfolio Management Team will conduct several training, assistance, and assessment visits during the IDP to include: <ul><li>Asset Management Start-Up (AMSU) Visit </li></ul><ul><li>Initial Development Period (IDP) Assistance Visits </li></ul><ul><li>Annual Site Visits (ASV)s </li></ul><ul><li>MRC Attendance Visits - upon request </li></ul>
  9. 9. <ul><li>Host initial partnering meetings and “Pre-Design Conference” </li></ul><ul><li>Exchange key personnel contact information lists </li></ul><ul><li>Review start-up issues and establish priorities </li></ul><ul><li>Formalize document/official correspondence routing process </li></ul><ul><li>Establish weekly meeting schedule </li></ul><ul><li>Explain relevant installation Standard Operating Procedures (SOPs ) </li></ul><ul><li>Offer assistance as necessary </li></ul>Closeout & Demobilization Construction Phase Design Phase Initial Development Phase (IDP) Components During Initial Partnering , good first impressions are essential. This is the time to build rapport and get started on the right foot. Initial Partnering
  10. 10. <ul><li>Review and discuss transaction documents, design responsibilities, & processes </li></ul><ul><li>Review and discuss local permitting procedures, timelines, & requirements </li></ul><ul><li>Review and discuss local & federal code requirements applicable to project </li></ul><ul><li>Review and discuss “65% and 100% Plans” (document gov’t comments) </li></ul><ul><li>Resolve issues informally during routine partnering meetings (meeting minutes) </li></ul><ul><li>If necessary, provide written “Design Criteria Exception Notices” </li></ul><ul><li>Ensure adherence to the “Plan Dispute” resolution process </li></ul><ul><li>Issue Govt Acceptance of “Final Plans” and issue written Notice to Proceed (NTP) </li></ul><ul><li>Host the formal “Pre-Construction Conference” </li></ul>Closeout & Demobilization Construction Phase Design Phase Initial Development Phase (IDP) Components Initial Partnering During the Design Phase, the Air Force participates in the design review process and verifies that the plans are in compliance.
  11. 11. <ul><li>Facilitate construction personnel and equipment mobilization </li></ul><ul><li>Monitor job site safety and environmental compliance </li></ul><ul><li>Conduct day-to-day on-site construction surveillance* </li></ul><ul><li>Continue to resolve issues during routine partnering meetings (document in meeting minutes) </li></ul><ul><li>Monitor phasing plan, unit delivery schedule, and track delays </li></ul><ul><li>Inspect and approve delivered units and issue “Certificates of Acceptance/ Compliance” </li></ul>* On-site construction surveillance discussed in detail on upcoming slide Closeout & Demobilization Construction Phase Design Phase Initial Development Phase (IDP) Components Initial Partnering During the Construction Phase, the Air Force conducts daily on-site construction surveillance and participates in construction meetings.
  12. 12. <ul><li>Verify all construction equipment, machinery, and temporary improvements are removed </li></ul><ul><li>Verify all construction refuse and excavated materials are removed </li></ul><ul><li>Secure all temporary construction ingress and egress routes </li></ul><ul><li>Issue final completion/compliance certificate for complete project to include all neighborhoods and site work </li></ul>Closeout & Demobilization Construction Phase Design Phase Initial Development Phase (IDP) Components Initial Partnering During the Closeout & Demobilization Phase, the Air Force verifies the PO’s cessation of construction activities and site clean up.
  13. 13. Levels of Construction Review <ul><li>Project Owner Quality Control </li></ul><ul><li>City or Local Municipality (as appropriate/applicable) </li></ul><ul><li>Lender / Bank Inspector (Bondholder’s representatives) </li></ul><ul><li>Government Oversight and Compliance </li></ul>Under Housing Privatization, multiple levels of review ensures that construction is completed in accordance with the plans, specifications, and jurisdictional codes for the project. The following levels of review are conducted throughout the Project’s development period:
  14. 14. On-site Construction Surveillance <ul><li>Manages Design Reviews </li></ul><ul><li>Inspects drawings / work </li></ul><ul><li>Ensures compliance </li></ul><ul><li>Provides Quality Assurance </li></ul><ul><li>Acts as COR / stops work </li></ul><ul><li>Approves submittals </li></ul><ul><li>Accepts work segments </li></ul><ul><li>Handles dispute resolution </li></ul><ul><li>Performs final acceptance </li></ul><ul><li>Authorizes payments </li></ul>Under Privatization, Title II as we know it no longer exists. However, the Air Force remains involved in the oversight process. <ul><li>Participates in Design Reviews </li></ul><ul><li>Participates in Construction meetings </li></ul><ul><li>Monitors work progress </li></ul><ul><li>Monitors transaction doc compliance </li></ul><ul><li>Checks code compliance </li></ul><ul><li>Liaisons between Owner and Base </li></ul><ul><li>Provides day-to-day assistance to installation functional staff </li></ul><ul><li>Reports discrepancies to base staff </li></ul><ul><li>Provides routine written progress and issue report </li></ul>Title II Inspectors : Construction Surveillance Personnel :
  15. 15. * Asset Managers and PMs are responsible for dispute resolution, not Construction Surveillance Personnel. On-site Discrepancy Identification and Correction <ul><li>Construction Surveillance personnel identifies a discrepancy </li></ul><ul><li>Construction Surveillance personnel reports discrepancy to Asset Manager/PM </li></ul><ul><li>Asset Manager/PM and/or Construction Surveillance personnel notifies Construction Supervisor </li></ul><ul><li>Construction Supervisor discusses issue with Project QA / QC Inspector and takes corrective action </li></ul><ul><li>Construction Surveillance personnel verifies discrepancy is corrected </li></ul><ul><li>Construction Surveillance personnel notifies Asset Manager/PM of correction </li></ul><ul><li>Asset Manager/PM monitors and documents discrepancy trends </li></ul><ul><li>Asset Manager/PM facilitates dispute resolution process </li></ul>Under Housing Privatization, the Project Owner is fundamentally responsible for QA / QC. The Air Force’s oversight approach first allows the Owner’s QA / QC process to work unless safety is a concern.
  16. 16. Tools and Reporting Requirements <ul><li>Schedule Monitoring Tool </li></ul><ul><li>Delay Tracking Tool </li></ul><ul><li>Design Criteria Exception Notice Template </li></ul><ul><li>Notice To Proceed (NTP) Template </li></ul>The Asset Manager’s Toolkit contains several useful tools and templates including: Asset Manager’s will report construction status information to installation leadership and the Portfolio Level that may include: <ul><li>Construction Surveillance Reports </li></ul><ul><li>Construction Milestone and Unit Delivery Variance Report </li></ul><ul><li>Construction Progress Meeting Minutes </li></ul><ul><li>Detailed Information Concerning Delays or Disputes </li></ul><ul><li>Construction Deficiency Notice Template </li></ul><ul><li>Final Design Acceptance Template </li></ul><ul><li>Gov’t Certificate of Compliance / Acceptance Template </li></ul>
  17. 17. Typical Design / Build Agreement Dispute Escalation Process Formal Dispute Process <ul><li>The Air Force must provide a written Design Criteria Exception Notice that describes the inconsistency to the Project Owner </li></ul><ul><li>Commander has final and conclusive decision authority for disputes valued at $10,000 or less </li></ul><ul><li>For disputes valued at more than $10,000, the Commander has decision authority, but the finding may be appealed </li></ul>If informal efforts do not resolve an issue, the Asset Manager is responsible for ensuring formal dispute processes are followed. Field Level Resolution Non-binding Mediation Binding Arbitration Written Notice
  18. 18. Bottom Line Construction crews will do a better job when the Air Force oversight process is in place and daily on-site construction surveillance personnel are present. <ul><li>Proactive communication and teaming are essential for success </li></ul><ul><li>Through partnering, disputes can be avoided or remedied at the lowest levels </li></ul><ul><li>Unit delivery dates are important, but construction schedules are flexible </li></ul><ul><li>Final unit turnover delays may impact revenue forecasts and eventually may negatively impact financial health and potentially available development funds </li></ul><ul><li>Documentation of all required Project Owner notifications and changes to Operating Agreement Exhibit Plan requirements must be formalized in writing and provided to AFCEE/HDP Portfolio Management for document management purposes </li></ul>

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