1. Construction Process Overview
Involvement, Issue Recognition, & Resolution
USCSchool Business Management
Certificate Program
Introduction
Establish clear lines of communication and a
responsibility matrix for your staff AND consultants.
District staffing structures vary... When you see
a position that doesn’t exist at your district, you
may assign the responsibilities to a different (still
appropriate) person on your staff.
Understand your consultant agreements. You need
to be fully aware of the services they are contracted
to provide, as well as what their capabilities are in
terms of available services to support your district.
Defining a single point of communication is essential
for each project. However, you will want to ensure
your team structure includes a strong system of
‘checks & balances’ to help mitigate potential
mistakes or sudden staffing departures during each
project.
As a district, you are ultimately liable and required
to prove as dependable stewards of the publics’
money. Facility projects are tangible proof of what
increased public funding can do for education.
While consultants (such as architects, construction
managers, & program managers) may understand
and express appreciation for maximizing your dollars
used for each project, they ultimately seek and will
position themselves to capitalize on your district’s
resources.
You get one chance to do each facility project
right. Establishing your team, and placing
responsibility in the appropriate areas, will help you
tremendously as projects come to fruition.
Team
DISTRICT STAFF
• Primary Point of Contact for
consultants/contractors/
inspectors
• Review/respond to Requests
for Info & Change Order
Requests
• Authority to direct changes
• Process payment
applications, stop notices,
deviation notices, etc...
• Develop/review change
orders for Board approval
• Can be used to supplement
District staff with project
management requirements...
MUST report to staff before
allowing/making any
changes.
• Depends on construction
delivery method. May also
serve as staff support similar
to program manager (CM
Agency method).
In addition to
inspection services,
District may need
labor compliance
consultant(s).
Director of Facilities/ConstructionDirector of Business Services
Facility/Construction
Account Technicians
Facility Planners
Construction Services
Inspector of Record
Materials Testing & Inspection Lab
Architect
Engineers
Program ManagerConstruction Manager
Chief Business Official
OPTIONAL OPTIONAL
I n v o l v e m e n t

2. Construction Process Overview
Involvement, Issue Recognition, & Resolution
USCSchool Business Management
Certificate Program
Introduction
Each construction project will result in a variety
of issues. The magnitude of each issue will vary,
however, there is no such thing as a project that is
100% flawless.
Preventing and mitigating the impact of issues
requires a basic understanding of what “triggers”
or “red flags” districts need to recognize during
the process. It should be noted, however, that the
practice of preparing a project for limited issues
begins well before any construction occurs. That
said, construction generally includes some basic
items that the district should recognize as potential
areas of concern.
Make sure to carefully read all construction
documents and contracts before any work begins.
California Public Contract Code (CPCC) includes
numerous references to strict timing deadlines and
cost limitations, but the construction documents
also include language that binds each district and
contractor to certain obligations not otherwise
covered in CPCC. When in doubt, seek legal
counsel!
PhasesI s s u e R e c o g n i t i o n
Bidding CompletionConstruction
• Advertising for bids &
bid solicitation
• Pre-Bid requests for
information
• Addenda
management
• Bid opening
• Issue notices to
proceed
• Issue all required
document formats
for requests for
information, meeting
minutes, change order
requests, and payment
application requests
• Reaffirm
communication
channels and
requirements to entire
team
• Coordinate activity with
site
• Review & update
construction project
management schedule
• Weekly progress
meetings - architect/
construction manager
should provide meeting
minutes
• Document/manage all
RFI’s, COR’s, contractor
stop notices
• Compile a punch-list
of items that need to
be corrected before
closing out the project
- architect/CM/
Inspector/District
• Verify all work is
complete and no
outstanding labor
compliance issues, pay-
apps or change orders
exist
• Release retention for
contractors
Range of the bid
amounts:
If the lowest bidder is
significantly lower than
everyone else, they may
have missed something.
This could lead to lots of
change order requests,
or that contractor may
go out of business in the
middle of the project.
Responsive vs.
Responsible Bidder:
Know the difference -
seek legal counsel for
help interpreting.
Change Orders:
10% maximum on
total contract.
See PCC Section
20118.4.
Each COR should
have lots of back-
up and agreement
from architect
before staff signs
off.
When in doubt,
contractors can be
asked to proceed
on a “time &
material” basis.
Never concede!
Stop Notices:
CA Civil Code 3103
Typically a result
of a general
contractor not
paying their subs
on time (or at all).
Typical flow:
1. Receive stop
notice
2. Verify sub is listed
3. Send notice to
County
4. Deduct stop
notice amount
(plus %)
5. Receive release
6. Send release to
Fiscal Services
7. Fiscal Services
send to County
Takeovers:
Get bonding
company
involved to take
over contract.
Communicate with
Surety all claims,
even potential
claims.
Records must
demonstrate
material breach
of contract,
contractor was
given opportunity
to cure the breach,
contractor failed,
and breach is not
justified.
Notice of Completion:
Once a NOC has been
approved by the Board
of Directors, the NOC
needs to be filed with
the county recorder’s
office. Retention may be
released (35) calendar
days after NOC has been
filed with the county
recorder’s office.
ThingstoKnowPhase

3. Construction Process Overview
Involvement, Issue Recognition, & Resolution
USCSchool Business Management
Certificate Program
ResponseR e s o l u t i o n
Introduction
Understanding the basic process and liabilities a
district has is the most important factor for resolving
construction related issues. Also, it is just important to
understand the liabilities your assigned consultants
and contractors have on each project as well.
Negotiating with consultants and contractors
is inevitable. Take care to maintain thorough
documentation and project notes to ensure you
don’t argue based on assumptions or verbal
agreements. Staff should review all the notes and
meeting minutes prepared by consultants before
accepting as true.
Working within the legal parameters and promoting
success for all parties in a project are essential. Set a
tone early that the district’s primary responsibility is
to the local community and taxpayers.
People talk
If leniency or an unjustified concession is ever
provided to a contractor/consultant it will lead
to a path of future requests from others. School
construction is a small community and it only takes
one slight ‘bending of the rules’ to forever damage
your district’s ability to deliver quality projects within
reasonable timelines and budgets.
Competition is a very good thing! Having consultants
that consistently get work for the district may require
a broader outreach for professional services. Long-
term relationships are not a bad thing, but lots of
viable firms exist throughout the state and district’s
should open up the opportunity to measure the fit
and the price for firms covering the same service.
The community deserves the best price and team
for each project and the district is responsible for
proving to them they got it (whether asked or not).
Change Order Requests
Contractor Goes Out of Business During Project
Replace Contractor
• Carefully scrutinize back-up that outlines
the logic behind the request. Verify time &
material costs for accuracy.
• Architect needs to approve the COR as valid.
• Construction Manager/Program Manager
should approve the COR as valid.
• Architects/CM’s generally get an increase in
their fee for contractor changes so never rely
100% on their feedback. Trust but verify!
• When in doubt, call nearby districts to see
what they think.
• Bonding company takes over project. They are responsible for payment on all outstanding “Stop Notices” for the defunct
contractor. Bonding companies require tremendous follow-up and staff needs to carefully monitor their progress.
• District files a Settlement & Release Agreement outlining the failure on the part of the contractor to fullfill the construction
agreement. An “Emergency Exception” may allow the district to replace the contractor without re-bidding the work. However,
this exception is tricky and should include a legal opinion backing up the choice to use it - primarily driven by safety concerns.
Consider how changes will effect other portions
of the work - specifically the timing of the project.
Contractors bid based on an assumed schedule.
If you cause any changes to this schedule it will
likely result in additional costs.
No set of architectural plans are perfect.
However, major change orders caused by errors
or omissions in the drawings/specifications should
be passed on to the architect. Specific contract
language should cover this.
Construction Managers can structure “bid
packages” to try and expedite a schedule and
lower costs. However, piecing together bid
packages is very difficult to do without error.
Significant coordination errors should be passed
on to the CM.

4. Construction Process Overview
Involvement, Issue Recognition, & Resolution
USCSchool Business Management
Certificate Program
ConstructionF o c u s e d O v e r s i g h t
ExpectationsSchedule
Success is Driven By Ethics!
Maintain high standards
Never be afraid to reach out for help
Commit to the best interests of your community
Seek out continuous education for you and your staff
Prevention Safety
21 3 4
• Develop a Reasonable Schedule
w/ a Safety Margin for the
Unforeseen
• Identify and Establish a Plan for
Long Lead Items
• Monitor Productivity vs. Crew
Sizes
• Plan for the Trades and
Manpower rather than Reacting
When it’s Too Late (Drive the
Schedule)
• Don’t wait for the Update to
Identify a Problem
• Maintain Quality Expectations
• Establish Expectations and
Requirements in Documents
• Conduct Pre-installation Meetings
w/ Tradesmen and Team
• Establish Mock-up Approvals of
Initial Work
• Establish Expectations w/ On-site
Team and IOR
• Identify Problems and Implement
Corrections as You Go
• Take the Time to Review the
Quality of Your Documents
• Resolve Issues as You Go (No
Problem Gets Better w/ Time!)
• Build Flexibility into Your Project
Timelines / Occupancy
• Recognize when it’s Not the
Contractor’s Fault
• Be Reasonable when Evaluating
Validity
• Demand a Safe Project
• Plan for Isolating the Construction
from Your Campus
• Identify and Plan for Haul/Delivery
Routes
• Identify Potential Interface Points
and Develop a Strategy
• Mandate the Standard of Safety
from Day One
• Identify Potential Problems and
Require an Implementation Plan
• Mandate Routine Safety Focused
Inspections
Resources for Information/Advice
District Resources
• Facilities/Construction Staff
• Legal Counsel
• Neighboring Districts
Outside Resources
• USCSBM Graduate Network
• FCMAT - www.fcmat.org
• CASH - www.cashnet.org