Subcontractor Scheduling


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Subcontractor Scheduling

  1. 1. Subcontractor Commercial Project Management Issues By Chris Carson, PSP Alpha Corporation Project Controls Manager Voice 757-533-9368 [email_address]
  2. 2. Importance of Project Management <ul><li>Clear communication with less confusion </li></ul><ul><li>Clear contractual agreements </li></ul><ul><ul><li>Meeting of minds for cost, time, quality </li></ul></ul><ul><li>Agree on Scope of Work </li></ul><ul><li>Minimize surprises </li></ul><ul><li>Manage change with a process </li></ul><ul><li>Improved ability to define and meet client expectations </li></ul>
  3. 3. Differences between Commercial and Residential Work <ul><li>Project plans & Spec rule (client) </li></ul><ul><li>Formal bid process </li></ul><ul><li>Contracts provided by GC </li></ul><ul><li>Formal shop drawing process </li></ul><ul><li>Client is not end user </li></ul><ul><li>Time extensions and delays are legal issues </li></ul><ul><li>Formal change management process </li></ul>
  4. 4. Bidding & Contracting Phase
  5. 5. Bids & Pricing <ul><ul><li>Contract Documents - set the standards and expectations </li></ul></ul><ul><ul><ul><li>Plans </li></ul></ul></ul><ul><ul><ul><ul><li>Check table of contents for all pertinent work </li></ul></ul></ul></ul><ul><ul><ul><ul><li>See small scale sheets for overview layout, large scale for details </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Look for elevation notes, section notes for clarity </li></ul></ul></ul></ul><ul><ul><ul><ul><li>If cabinetry exists on plans, GC expects you to have it priced </li></ul></ul></ul></ul><ul><ul><ul><li>Specifications </li></ul></ul></ul><ul><ul><ul><ul><li>Specifications provide detail requirements </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cabinets must meet specs unless noted on bid form </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Specifications may dictate hardware, colors, materials types, acceptable manufacturers </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Watch for “or equal” – wording is significant </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Watch for AWI requirements – restricted suppliers </li></ul></ul></ul></ul></ul>
  6. 6. Or-Equal Example
  7. 7. Subcontractor Bid Process
  8. 8. General Contractor Bid Process
  9. 9. Bids & Pricing <ul><ul><li>Specifications follow “MasterFormat” 16 Division system </li></ul></ul><ul><ul><ul><li>Every Architect will change Section Numbers </li></ul></ul></ul><ul><ul><ul><li>MasterFormat has standards, but not used exclusively </li></ul></ul></ul><ul><ul><li>Here are typical cabinet locations, but check all sheets </li></ul></ul><ul><ul><li>Division 6 – Wood, Plastics & Composites </li></ul></ul><ul><ul><ul><li>Contains Section 06200, Finish Carpentry </li></ul></ul></ul><ul><ul><ul><li>Contains Section 06400, Architectural Woodwork </li></ul></ul></ul><ul><ul><ul><li>Contains Section 06600, Plastic Fabrications </li></ul></ul></ul><ul><ul><ul><ul><li>Cultured Marble Fabrications </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Solid Surfacing Fabrications (Corian, other types of man-made tops) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Quartz Surfacing Fabrications </li></ul></ul></ul></ul>
  10. 10. Bids & Pricing <ul><ul><ul><li>Division 11 – Equipment </li></ul></ul></ul><ul><ul><ul><ul><li>Contains Section 11230, Commercial Laundry & Dry Cleaning Equipment </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Contains Section 11260, Unit Kitchens </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Normally an appliance, one piece </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Could be laminate cabinets </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Unusual to be under the cabinetry scope of work </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Contains Section 11300, Residential Equipment </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Residential kitchen appliances </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Residential laundry appliances </li></ul></ul></ul></ul></ul>
  11. 11. Bids & Pricing <ul><li>Division 12, Furnishings </li></ul><ul><ul><li>Contains Section 12300, Casework </li></ul></ul><ul><ul><ul><li>Manufactured wood casework </li></ul></ul></ul><ul><ul><ul><li>Manufactured plastic casework </li></ul></ul></ul><ul><ul><ul><li>Specialty casework </li></ul></ul></ul><ul><ul><ul><ul><li>Bank casework </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Hospitality casework </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Residential casework </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Kitchen </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Bathroom </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Dormitory </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Utility room casework </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Educational/Library casework </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Laboratory casework – usually specific national vendors </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Display casework </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Healthcare casework </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Religious casework </li></ul></ul></ul></ul>
  12. 12. Bids & Pricing <ul><ul><ul><li>Contains Section 12360, Countertops </li></ul></ul></ul><ul><ul><ul><ul><li>Concrete </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Metal </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Wood </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Plastic laminate </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Stone </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Laboratory </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Simulated stone </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Cultured marble </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Solid surfacing </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Quartz surfacing </li></ul></ul></ul></ul></ul><ul><ul><ul><li>Contains Section 12500, Furniture </li></ul></ul></ul><ul><ul><ul><ul><li>Case goods </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Custom office furniture </li></ul></ul></ul></ul><ul><ul><ul><li>Contains other furniture sections </li></ul></ul></ul>
  13. 13. Bids & Pricing <ul><ul><ul><li>Modifications or Addenda </li></ul></ul></ul><ul><ul><ul><ul><li>Mods are usually government work, Addenda private work </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Very important issue, official changes to bid </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Do not acknowledge Addenda without reviewing all pages & drawings of addenda documents (Addendum-singular, Addenda-plural – professionals know the difference) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Do not take contractor’s word for what is included in addenda – look at documents </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Sometimes the Architect will summarize or provide headings – it is not always safe to count on those summaries </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Addenda should be published by Division and Sections </li></ul></ul></ul></ul>
  14. 14. Scope of Work <ul><ul><li>Identify specific work to price </li></ul></ul><ul><ul><ul><li>GC request (SOW will be in contract) </li></ul></ul></ul><ul><ul><ul><li>Solicited by Division or Section </li></ul></ul></ul><ul><ul><ul><li>Solicited by trade </li></ul></ul></ul><ul><ul><ul><li>Verify what the GC wants included in price </li></ul></ul></ul><ul><ul><ul><li>Try to get it in writing </li></ul></ul></ul><ul><ul><li>Check sections included in work </li></ul></ul><ul><ul><ul><li>Use the 16 Division system and get familiar with the system </li></ul></ul></ul><ul><ul><ul><li>Make notes of included sections </li></ul></ul></ul><ul><ul><li>Check sections excluded in work </li></ul></ul><ul><ul><ul><li>Make notes of all relevant sections that someone might expect you to include </li></ul></ul></ul><ul><ul><ul><li>Mark them as excluded sections </li></ul></ul></ul>
  15. 15. Relevant Spec Sections
  16. 16. Bid Proposals <ul><ul><li>Clear statement of subcontractor’s work </li></ul></ul><ul><ul><ul><li>Write it out; all kitchen and bathroom cabinetry, including hardware as specified, all laminate countertops, all break room cabinets and tops </li></ul></ul></ul><ul><ul><li>Use a good bid proposal form </li></ul></ul><ul><ul><ul><li>Use standard form with places to show sections, included work, excluded work, time frame, etc. </li></ul></ul></ul><ul><ul><li>Identify included work </li></ul></ul><ul><ul><ul><li>List specific sections and descriptions </li></ul></ul></ul><ul><ul><li>Identify excluded work </li></ul></ul><ul><ul><ul><li>List specific sections </li></ul></ul></ul><ul><ul><ul><li>List relevant items on drawings not specified </li></ul></ul></ul>
  17. 17. Bid Proposal Form Example
  18. 18. Bid Proposal, 2 nd Page <ul><li>General Notes </li></ul>
  19. 19. Bid Proposals <ul><ul><li>Identify specific conditions for work </li></ul></ul><ul><ul><ul><li>Do you need heat or air conditioning? </li></ul></ul></ul><ul><ul><ul><li>Do you need a secure building for tools and materials? </li></ul></ul></ul><ul><ul><ul><li>Do you need building electrical power and/or lights? </li></ul></ul></ul><ul><ul><ul><li>Do you need operating elevators? </li></ul></ul></ul><ul><ul><ul><li>Do you need parking? </li></ul></ul></ul><ul><ul><ul><li>How will trucks deliver to the building? </li></ul></ul></ul><ul><ul><ul><li>Who will receive cabinets? </li></ul></ul></ul><ul><ul><ul><li>Who will protect cabinets & what is protection (plywood/cardboard?)? </li></ul></ul></ul><ul><ul><ul><li>Do you want the floor finish in place? </li></ul></ul></ul><ul><ul><ul><li>Do you plan to shim up cabinets? </li></ul></ul></ul><ul><ul><ul><li>Do you want finish paint on the walls before you start? </li></ul></ul></ul><ul><ul><ul><li>Do you plan to haul trash from the jobsite or use the GC dumpster? </li></ul></ul></ul><ul><ul><ul><li>Do you expect to pay a pro-rata share of the dumpster? </li></ul></ul></ul><ul><ul><ul><li>What is the level of cleanup that your forces will do daily? </li></ul></ul></ul><ul><ul><ul><li>What other trades can work concurrently in your space? </li></ul></ul></ul><ul><ul><ul><li>Can they use your cabinets for scaffolding (during or after your install)? </li></ul></ul></ul>
  20. 20. Bid Proposals <ul><ul><li>Identify time frames – both durations & work times </li></ul></ul><ul><ul><ul><li>How long do you need to install? </li></ul></ul></ul><ul><ul><ul><ul><li>Will all floors be done at once? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Is there a preferred sequence for your workers? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Will you jump from room to room on any floor available? </li></ul></ul></ul></ul><ul><ul><ul><li>When do you plan to work? </li></ul></ul></ul><ul><ul><ul><ul><li>Is weekend work anticipated? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Is holiday work anticipated? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Is the work week 5 days/40 hours? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Will you work overtime, without additional pay, if demanded by the GC? </li></ul></ul></ul></ul><ul><ul><ul><li>What is the sequencing between your own subcontractor trades? </li></ul></ul></ul><ul><ul><ul><ul><li>When can you template for tops? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Where do you expect to start? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>What is your sequence, in what order? </li></ul></ul></ul></ul><ul><ul><ul><ul><li>How long between template and installation? </li></ul></ul></ul></ul>
  21. 21. Subcontracts <ul><ul><li>Subcontract overrules all bid documents unless you make bid proposals part of your subcontract (DO!)– this will dictate the conditions under which you will work, no matter what verbal or written document you have from before the subcontract </li></ul></ul><ul><ul><li>Watch for boilerplate language in subcontract </li></ul></ul><ul><ul><li>Watch for supervision requirements </li></ul></ul><ul><ul><li>Check all prices and scope of work </li></ul></ul><ul><ul><li>Watch for scope of work you did not anticipate or vague scope </li></ul></ul><ul><ul><li>Never sign subcontracts without reading completely </li></ul></ul><ul><ul><li>Check the times of performance or schedule to ensure it matches your bid </li></ul></ul><ul><ul><li>Verify that the plans you priced are the same as referenced in the subcontract, dates and revision dates </li></ul></ul>
  22. 22. Boilerplate Language Example
  23. 23. Supervision Requirement Example
  24. 24. Added or Vague Scope
  25. 25. Subcontracts <ul><ul><li>Ensure that there are no documents you haven’t seen referenced in the subcontract </li></ul></ul><ul><ul><li>Understand the GC Buyout process </li></ul></ul><ul><ul><ul><li>The GC needs to eliminate scope holes </li></ul></ul></ul><ul><ul><ul><li>GC wants all work to be assigned to a subcontractor </li></ul></ul></ul><ul><ul><ul><li>GC believes that they have the stronger hand in negotiation prior to awarding the subcontract </li></ul></ul></ul><ul><ul><ul><li>It is in the GC’s best interest to stuff as much scope into your contract as possible </li></ul></ul></ul><ul><ul><ul><li>The buyout process is where the GC picks up 5% to 10% contingency – this is a viable process that makes money for GC’s </li></ul></ul></ul><ul><ul><li>Check all special conditions </li></ul></ul>
  26. 26. “Stuffed Scope” by GC <ul><li>Examples of Scope added by GC: </li></ul><ul><ul><li>Blocking behind drywall </li></ul></ul><ul><ul><li>Electrical lighting inside cabinets </li></ul></ul><ul><ul><li>Matching trim for windows </li></ul></ul><ul><ul><li>Crown mold on walls adjacent to cabinets </li></ul></ul><ul><ul><li>Blocking up base cabinets because flooring is not laid </li></ul></ul><ul><ul><li>Building low wall at island cabinets </li></ul></ul><ul><ul><li>Covering low wall at island with paneling </li></ul></ul><ul><ul><li>Cabinets in other rooms </li></ul></ul><ul><ul><li>Having installer move cabinets to find missing electrical </li></ul></ul><ul><ul><li>Cutting out back of range hood cabinet to fit ductwork that was supposed to rough in behind drywall and now is dropped from ceiling </li></ul></ul>
  27. 27. Subcontracts <ul><ul><li>Note the language that all changes MUST be in writing – this is a legal statement that protects the GC (and can protect you if used correctly) </li></ul></ul><ul><ul><li>Check payment language </li></ul></ul><ul><ul><ul><li>Stored materials – very important if installation cannot happen when cabinets are delivered </li></ul></ul></ul><ul><ul><ul><li>Check invoice dates </li></ul></ul></ul><ul><ul><ul><li>Check for retainage (money retained until the end of the PROJECT) </li></ul></ul></ul><ul><ul><li>If the subcontract references the GC’s contract with the Owner, get a copy of it; don’t allow pass-through language from a contract that you haven’t seen </li></ul></ul>
  28. 28. Pass-Through Language
  29. 29. Submittals <ul><ul><li>Submittals , once approved, override the plans and specs, and often the subcontract </li></ul></ul><ul><ul><li>Good detailed submittals save time and money </li></ul></ul><ul><ul><li>Identify all existing conditions that could affect your work </li></ul></ul><ul><ul><li>Show all dimensions </li></ul></ul><ul><ul><li>Show finishes </li></ul></ul><ul><ul><li>Insist on formal approval of submittals </li></ul></ul><ul><ul><li>Get new approval if drawings change </li></ul></ul><ul><ul><li>Submittals could include mockups, watch out </li></ul></ul>
  30. 30. Submittal Example
  31. 31. Shop Drawing Example
  32. 32. Submittals <ul><ul><li>Formal submittal review </li></ul></ul><ul><ul><ul><li>Approved </li></ul></ul></ul><ul><ul><ul><ul><li>Start fabrication </li></ul></ul></ul></ul><ul><ul><ul><li>Rejected, revise and resubmit </li></ul></ul></ul><ul><ul><ul><ul><li>Don’t release order or start fabrication </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Resubmit quickly – time is not on your side </li></ul></ul></ul></ul><ul><ul><ul><li>Approved as noted </li></ul></ul></ul><ul><ul><ul><ul><li>Same as Approved except you must meet notes on shop drawings </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Immediately review notes; if you disagree, communicate it clearly immediately </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Don’t allow scope creep by shop drawing approval </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Don’t accept “Receipt Acknowledged”, this is not approval! </li></ul></ul></ul></ul>
  33. 33. Shop Drawing Scope Creep <ul><li>Your Scope of Work is established by the plans and specifications; if you bid one set of plans, and the Owner/Architect add additional work through making changes without issuing a change order, that is Scope Creep </li></ul><ul><li>Scope Creep is when the scope of work is increased </li></ul><ul><li>Shop Drawing Scope Creep is when the designer makes changes on the shop drawings, and signs them, “Approved as Noted” </li></ul><ul><ul><li>Added hardware </li></ul></ul><ul><ul><li>Changed cabinets (size increase, door/drawer changed to 4 drawer) </li></ul></ul><ul><ul><li>Additional molding </li></ul></ul><ul><ul><li>Finish changes </li></ul></ul><ul><li>Any change from the original plan that costs you or the installer more money and was not in your original bid is Scope Creep </li></ul>
  34. 34. Schedule <ul><ul><li>Commercial construction implies strict legal rules about schedules </li></ul></ul><ul><ul><ul><li>Identify initial baseline schedule expectations (planned dates) </li></ul></ul></ul><ul><ul><ul><li>Ask for the Total Float associated with your trade activities in the schedule to determine if your work is on the Critical Path and if not, how far off </li></ul></ul></ul><ul><ul><ul><li>Provide your expectations in writing; do not sign a contract that states anything else </li></ul></ul></ul><ul><ul><ul><li>Stay on top of the schedule; know what the GC expects but also what the schedule says </li></ul></ul></ul>
  35. 35. Critical Path & Total Float <ul><li>Critical Path is a scheduling term used in commercial work with Critical Path Method Scheduling, the primary and only legal scheduling methodology </li></ul><ul><li>The longest continuous path of work through a project that drives the completion is the Critical Path </li></ul><ul><li>If an activity that is on the CP slips, it will extend the project duration, and could make the project late </li></ul><ul><li>This is legal term, and the source of large delay claims and lawsuits </li></ul><ul><li>Total Float is a measure of how much time there is to spare before a specific activity falls on the Critical Path. </li></ul>
  36. 36. Construction Phase
  37. 37. Schedule <ul><ul><ul><li>Delay – if an activity on the schedule is Critical, any delay to that activity (start late, finish late) is a legal Critical Path delay and subject to penalties </li></ul></ul></ul><ul><ul><ul><ul><li>Document any delays caused by others </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Check notification clauses in contract; give formal notice of delay in a timely fashion </li></ul></ul></ul></ul><ul><ul><ul><ul><li>You might have a case for delay unrelated to the GC schedule, if you are forced to start late and finish late </li></ul></ul></ul></ul><ul><ul><ul><ul><li>More important to defend against the GC claim of delay </li></ul></ul></ul></ul><ul><ul><ul><ul><li>GC delay is likely to be passing along Liquidated Damages to you (daily charge against you) </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>LD’s can run $50/day to $25,000/day </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Subcontract probably has language to pass through LD’s </li></ul></ul></ul></ul></ul>
  38. 38. Pass Through LD Language
  39. 39. Schedule <ul><ul><ul><li>Disruption - interruption not resulting in a delay </li></ul></ul></ul><ul><ul><ul><ul><li>Includes a number of problems </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Trade stacking or overloading </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Inefficiency </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Break in the orderly flow of work </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Low productivity due to interference </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Very hard to prove and document </li></ul></ul></ul></ul><ul><ul><ul><ul><li>If you can establish a “measured mile”; that is a period of time in which you perform similarly to your estimate, and then you are disrupted and can show worse performance due to an impact event, this is a strong basis for a disruption claim. </li></ul></ul></ul></ul>
  40. 40. Schedule <ul><ul><ul><li>Acceleration - performing original work in less time, or additional work in same time </li></ul></ul></ul><ul><ul><ul><ul><li>If the GC tells you to complete your work in less time than contracted, you have been accelerated </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Important legal issue ; unless the subcontract allows acceleration, you can renegotiate your costs and time </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>If you get a change order that takes more effort and costs more money, and the GC (or Owner) refuses to allow more time, you have been constructively accelerated (exactly the same as if they cut time out of your work), and could legally get paid additional (to cover overtime, inefficiency, disruption, etc.) </li></ul></ul></ul></ul>
  41. 41. Acceleration Language
  42. 42. <ul><ul><li>Earmark the start date, and make every effort to start on time </li></ul></ul><ul><ul><li>If job is delayed so you cannot start on time, document it </li></ul></ul><ul><ul><li>Each time GC moves you back, re-evaluate your commitments (yours and your subcontractors) </li></ul></ul><ul><ul><ul><li>If it will cause a problem, your strongest position is when you are first notified; that is the time to renegotiate the project </li></ul></ul></ul><ul><ul><ul><li>Verify the ability of your installer and/or top fabricator to meet the new dates </li></ul></ul></ul><ul><ul><li>Keep an accurate onsite daily report or log </li></ul></ul><ul><ul><li>Review your field personnel’s notes about delay and disruption daily, so you can provide notice of delay </li></ul></ul>Project Management & Communications
  43. 43. Project Management & Communications <ul><ul><li>Respond to all communications; do not allow a GC email or fax to go unchallenged if they unfairly complain about completion times or other issues </li></ul></ul><ul><ul><li>Use the RFI system (Request for Information) </li></ul></ul><ul><ul><ul><li>Use standard form </li></ul></ul></ul><ul><ul><ul><li>Track date of submission </li></ul></ul></ul><ul><ul><ul><li>Indicate date of response required before delay </li></ul></ul></ul><ul><ul><ul><li>Track date of response </li></ul></ul></ul><ul><ul><ul><li>Verify response doesn’t cost additional money or time </li></ul></ul></ul><ul><ul><ul><li>If response is a change, immediately notify GC </li></ul></ul></ul><ul><ul><ul><li>RFI system maintains written records of communications </li></ul></ul></ul>
  44. 44. RFI Example Ask specific questions requiring an answer, can provide a Recommendation or suggestion with RFI Use RFIs to document that you have requested resolution for a problem, identify specifically the problem, the date you requested it, and the date you need an answer (beyond which It could affect production) Used to track in a log This is the place for the Architect to formally respond to your question Number the RFIs
  45. 45. RFI Logs <ul><li>Use to keep track of the </li></ul><ul><li>responsiveness of the Architect </li></ul>Use to keep track of changes
  46. 46. Field Management & Communications <ul><ul><li>Make sure the field personnel know and understand the scope of work, and, probably more importantly, the exclusions from your subcontract </li></ul></ul><ul><ul><li>Develop a field report that records details </li></ul></ul><ul><ul><ul><li>Field reports are legally admissible documents in the event of dispute </li></ul></ul></ul><ul><ul><ul><li>Field reports need to be contemporaneous </li></ul></ul></ul><ul><ul><li>Train the field supervisor (the installer or top installer if no super) </li></ul></ul>
  47. 47. Field Report Form Job & Date Summary of work done that day List Reico & installer personnel working on job that day, and what was accomplished (rooms completed?) Note any problems discovered Note any other contractors working in space, like painters, electricians, Also note any damage caused by them Note any additional work requested by Super, PM or Architect This is your installer’s opportunity to document any problems on the project that halt or impede production, or dameage caused by others This report should be filed with the Superintendent, with a copy kept for the installer and the PM This could be done on email, in one operation
  48. 48. Field Management & Communications <ul><li>Record and document delays </li></ul><ul><ul><li>Inability to start due to others </li></ul></ul><ul><ul><li>Inability to access space </li></ul></ul><ul><ul><li>Changes in planned sequence </li></ul></ul><ul><ul><li>Other subcontractors (not within your control) in your way </li></ul></ul><ul><li>Record and document disruption </li></ul><ul><ul><li>Other trades slowing down your work </li></ul></ul><ul><ul><li>Damage to your work </li></ul></ul><ul><ul><li>Superintendent communications that change your sequence or timing </li></ul></ul><ul><ul><li>Job conditions that don’t meet your subcontract agreement </li></ul></ul>
  49. 49. Field Management & Communications <ul><ul><li>Daily report details </li></ul></ul><ul><ul><ul><li>Actual room start date </li></ul></ul></ul><ul><ul><ul><li>Actual room finish date </li></ul></ul></ul><ul><ul><ul><li>Any suspend and resume dates </li></ul></ul></ul><ul><ul><ul><li>All communications with superintendent, especially approvals of work </li></ul></ul></ul><ul><ul><ul><li>Other trades in space, especially if any damage </li></ul></ul></ul><ul><ul><ul><li>Field conditions, especially if different from subcontract agreement </li></ul></ul></ul><ul><ul><ul><li>Installer manpower </li></ul></ul></ul><ul><ul><ul><li>Out of sequence work </li></ul></ul></ul>
  50. 50. Change Management <ul><li>Changes or requests for changes are high priority </li></ul><ul><li>Types of changes </li></ul><ul><ul><li>RFP – Request for Proposal </li></ul></ul><ul><ul><li>Directed Change </li></ul></ul><ul><ul><li>Direction/Clarification </li></ul></ul><ul><ul><ul><li>Could be from A&E or Superintendent </li></ul></ul></ul><ul><ul><ul><li>Could be in response to an RFI </li></ul></ul></ul><ul><ul><li>Subcontractor submitted change </li></ul></ul><ul><ul><ul><li>Undisclosed conditions </li></ul></ul></ul><ul><ul><ul><li>Additional materials needed </li></ul></ul></ul><ul><ul><li>Change Order Requests are ways to force communications from GC, get it in writing! </li></ul></ul><ul><ul><li>All scope changes should be change order requests </li></ul></ul>
  51. 51. Examples of Changes
  52. 52. Safety <ul><ul><li>Commercial work conditions are regulated by OSHA (Occupational Safety and Health Administration), but inspected typically by Virginia OSHA. </li></ul></ul><ul><ul><li>Failure to follow OSHA regulations will likely result in large fines (thousands of dollars) if inspectors visit the site, either uninvited or after a serious accident when investigating </li></ul></ul>
  53. 53. Safety <ul><ul><li>All companies are responsible for monitoring safety practices </li></ul></ul><ul><ul><ul><li>If a violation occurs, every company that allows its employees to work within risk of the violation is subject to fines </li></ul></ul></ul><ul><ul><ul><li>Good safety practices must be developed and taught to every company’s employees </li></ul></ul></ul><ul><ul><ul><ul><li>Safety plan </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Jobsite toolbox safety meetings </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Documentation of meetings and training </li></ul></ul></ul></ul>
  54. 54. Safety <ul><ul><li>Examples of safety violations </li></ul></ul><ul><ul><ul><li>Cut or nick in an electrical drop cord (extension cord) </li></ul></ul></ul><ul><ul><ul><li>Missing handrails </li></ul></ul></ul><ul><ul><ul><li>Circular saw missing guard or guard wedged open </li></ul></ul></ul><ul><ul><ul><li>Table saw missing or being operated without safety equipment such as guard or anti-kickback devices </li></ul></ul></ul><ul><ul><ul><li>Ladders not tied off </li></ul></ul></ul><ul><ul><ul><li>Wooden job-built ladders not meeting OSHA standards </li></ul></ul></ul><ul><ul><ul><li>Fall risks; openings above ground floor without rails </li></ul></ul></ul><ul><ul><ul><li>Stairs not meeting standards; tread size, handrails, no concrete fill in metal pan stairs </li></ul></ul></ul><ul><ul><ul><li>Use of hardhats </li></ul></ul></ul><ul><ul><ul><li>Electrical outlets without GFI protection </li></ul></ul></ul><ul><ul><ul><li>Walking under or within fall range of operating forklifts </li></ul></ul></ul>
  55. 55. Insurance, Bonds & Payments
  56. 56. Insurance and Bonds <ul><ul><li>Performance and Payment Bonds cost money if you have to provide </li></ul></ul><ul><ul><li>Check GC requirements vs. your workman’s comp </li></ul></ul><ul><ul><ul><li>Are you covering your cabinet/top installers? </li></ul></ul></ul><ul><ul><ul><li>Are you covering your appliance installers? </li></ul></ul></ul><ul><ul><ul><li>Virginia law says businesses with 3 or less employees do not need workman’s compensation, but the GC will expect you to have it – you may be covering your subcontractors if they don’t have insurance </li></ul></ul></ul><ul><ul><li>Liability Insurance </li></ul></ul><ul><ul><ul><li>What if your installers hurt or hit someone? </li></ul></ul></ul><ul><ul><li>Equipment Insurance </li></ul></ul><ul><ul><ul><li>What if your installers have tools stolen? </li></ul></ul></ul>
  57. 57. Insurance and Bonds <ul><ul><li>Builder’s Risk Insurance </li></ul></ul><ul><ul><ul><li>Who owns the cabinets when delivered to job? </li></ul></ul></ul><ul><ul><ul><li>Builder’s Risk policies can be written many ways </li></ul></ul></ul><ul><ul><ul><ul><li>Cabinets may not belong to the Owner until GC has billed </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Cabinets may not belong to the GC until sub has billed </li></ul></ul></ul></ul><ul><ul><ul><ul><li>In the event of a disaster, such as hurricane or flood, the wording in the Builder’s Risk policy will determine who gets paid for their supplies, uninstalled and installed work </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Theft of cabinetry from job also falls under Builder’s Risk - again it depends on how the GC’s policy is written </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Reico may not be covered at all until the cabinetry is installed and billed </li></ul></ul></ul></ul>
  58. 58. Builder’s Risk
  59. 59. Payments <ul><li>Make sure any retainage matches contract </li></ul><ul><li>Read all lien releases carefully </li></ul><ul><ul><li>Typical lien releases sign away your rights to any delay or disruption issue prior to payment </li></ul></ul><ul><ul><li>Cross out any language that eliminates your rights and put a disclaimer in, if there are delay and disruption issues </li></ul></ul><ul><ul><li>Don’t allow lien releases to be signed prior to getting check </li></ul></ul><ul><ul><li>Don’t sign blank lien releases </li></ul></ul><ul><ul><li>Keep a copy of the lien release </li></ul></ul><ul><li>Get billings in on time </li></ul>
  60. 60. Lien Release Example
  61. 61. Closeout & Warranty Phase
  62. 62. Completion <ul><ul><ul><li>Document completion </li></ul></ul></ul><ul><ul><ul><li>Have GC verify completion as soon as the work is out of your control </li></ul></ul></ul><ul><ul><ul><li>Punch list </li></ul></ul></ul><ul><ul><ul><ul><li>Formalize punch list </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Have your foreman onsite to fix items at punch list creation </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Get GC agreement to punch list </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Create and fulfill one list only; do not let lists grow </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Do not allow additional work on punch list </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Get formal sign-off when punch list is complete </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Document completion of punch list </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Take photos of each completed area for proof of damage </li></ul></ul></ul></ul>
  63. 63. Warranty <ul><ul><li>Understand your warranty </li></ul></ul><ul><ul><li>12 months in State of Virginia unless extended by Reico or requirement of GC </li></ul></ul><ul><ul><li>Track warranty issues to ensure they are not additional work or damage to your work </li></ul></ul>
  64. 64. Questions? Complaints? War Stories? Suggestions?
  65. 65. Subcontractor Commercial Project Management Issues By Chris Carson, PSP Alpha Corporation Project Controls Manager Voice 757-533-9368 [email_address]