Transcription
ICSC European Retail Property SchoolConstruction Administration &Construction ManagementJuly 2014Berlin, Germany
Construction AdministrationLecturerIvana Maksimović CRX, CDPConfluence Property ManagementBelgrade, Serbia
Construction AdministrationAGENDA DEFINITIONS AND ROLES PRE-QUALIFICATION AND SELECTION OF CONTRACTOR CONSTRUCTION AGREEMENTS CONSTRUCTION PROCESS
Construction AdministrationDEFINITIONSConstruction is the process of preparing and forming buildings andbuilding systems. Construction starts with planning, design, andfinancing and continues until the structure is ready for occupancy.Construction management or construction project management isthe overall planning, coordination, and control of a constructionprocess from beginning to completion. Construction projectmanagement is aimed at meeting a client's requirement in order toproduce a functionally and financially viable project.
Construction AdministrationDEFINITIONSBUDGETSCHEDULEQUALITY
Construction AdministrationDEFINITIONS Owner’s Rep / Project ManagerCompany or person planning, organizing and managing the processof design and construction Program ManagerPerson who manages a retail store rollout program, planningorganizing and managing design and construction process.
Construction SENTATIVEProject ManagerDESIGN ion Manager (CM)General Contractor (GC)
Construction AdministrationDEFINITIONS Construction ManagerAt Risk (Construction Manager as Contractor)AgencyThe difference is just in level of risk assumed General ContractorCompany appointed to execute construction works and deliver thebuilding as per agreed cost, schedule and quality
Construction NAGER at riskSUBCONTRACTOR1SUBCONTRACTOR2SUBCONTRACTOR3
Construction NAGER as agencySUBCONTRACTOR1SUBCONTRACTOR2SUBCONTRACTOR3
Construction AdministrationWhat would be the difference between Construction Manager at riskand General Contractor?
Construction AdministrationPREQUALIFICATIONS AND SELECTIONA. Pre-Qualification Questions Company People Legal Track Record ContractualB. Selection Methods Bidding the Job Negotiated Agreement
Construction AdministrationPREQUALIFICATIONS AND SELECTIONConsiderations Relevant experience, references, general reputationFinancial stability of company / credit reports, bonding capabilitySchedule controlQuality of performed works on representative projectsPrior experience with contractor, strategic relationshipLitigations
Construction AdministrationPREQUALIFICATIONS AND SELECTIONCompany Does the size of the company match the size of the project? What is the safety record of a company?EMR / experience modification rate 1 more safe 1 less safePersonnel who will be working on project Do they have experience on this particular job? What do former client say about superintendent? What is a current team workload?
Construction AdministrationPREQUALIFICATIONS AND SELECTIONPrice Best possible work at the lowest possible price Pay a little more for company with grater experience Extremely high and low bids should be eliminated quickly
Construction AdministrationSELECTION METHODSDepends on MAIN PROJECT OBJECTIVE Budget Schedule Quality- Bidding the job after design is completed- Negotiate agreement to involve contractor early- Combination
Construction AdministrationSELECTION METHODSTO BID OR NOT TO BID ? Type of Job – Project Delivery MethodSize of JobProfit PotentialClient RelationshipResource AvailabilityCompetitionBonding IssuesQuality of OwnerQuality of Architect
Construction AdministrationSELECTION METHODSBIDDING THE JOB Primarily based on priceClear design documentationClear scope of workMost suitable for traditional design/bid/build project delivery methodRequires longer scheduleLowest costOpen vs. Restricted bidders listBid room atmosphere
Construction AdministrationSELECTION METHODSBIDDING THE JOB / PITFALLS
Construction AdministrationSELECTION METHODSNEGOTIATED AGREEMENTThe contractor is selected in competitive negotiation based on: The teamAppropriate experienceUnderstanding of the jobFee for preconstruction servicesGeneral conditions costs
Construction AdministrationSELECTION METHODSNEGOTIATED AGREEMENTPreconstruction services budgeting, scheduling, system analysis, value engineeringShould be expressed in
Construction AdministrationSELECTION METHODSNEGOTIATED AGREEMENTGeneral conditions are indirect costs generally related tocontractors on-site staffing and creating construction environment Price for on site personnel Field office establishment, equipment Temporary toilets Job safety officer Dumpsters General clean-up First aid equipment and fire extinguishers Small tools purchase Should be expressed in
Construction AdministrationSELECTION METHODSNEGOTIATED AGREEMENTCost SummaryPreconstruction ServicesGeneral ConditionsProfessional FeeMark-Up on Self-Performed WorkGeneral Liability InsuranceSavings / SplitMark-Up on ChangesFor SubcontractorsFor General ContractorPerformance Bond %%%Owner / CM%%%
Construction AdministrationREQUESTING PROPOSALSRFP Request for proposal General information about InvestorGeneral information about the Project itselfRequested quality of workRequested form of proposal / documents to be providedDrawings and specificationsBill of QuantitiesDeadline for submitting proposals
Construction AdministrationEVALUATING PROPOSALS Completeness of documentation submitted References Price comparison
Construction AdministrationContractor No 180.001,565.07Contractor No 0120.002,121.72Contractor No 00180.003,446.20Contractor No 0.00150.003,276.63Contractor No .71197.542,235.004,119.8423,216.0011. 0.0012. FURNITURE AND 1,288,005.49TOTAL01. DEMOLITION WORKS01.1 Demolition - Architectural01.2 Demolition - Water and sewage01.3 Demolition - Mechanical01.4 Demolition - High voltage01.5 Demolition - Low voltage02. PREPARATION WORKS03. CONSTRUCTION WORKS03.1 Masonary works03.2 Concrete works03.3 Steel structure04. FACADE05. FINISHING WORKS05.1 Insulation05.2 Carpenter s works05.3 Metal works05.4 Ceramic flooring05.5 Other flooring05.6 Gypsum works05.7 Painting works05.8 Miscelaneous06. WATER AND SEWAGE INSTALLATIONS06.1 Water installations06.2 Sanitary equipment06.3 Miscelaneous07. MECHANICAL INSTALLATIONS07.1 HVAC07.2 Radiator heating and air curtains07.3 VRF07.4 Split system07.5 Remote control, automatics07.6 Preparation and finishing works08. ELECTRICAL INSTALLATIONS08.1 Distribution boards08.2 Electrical supply instalations08.3 Sockets08.4 Lights08.5 Compensation08.6 Finishing electrical works09. LOW VOLTAGE09.1 Telephone and networks09.2 Sound system09.3 Access control09.4 Anty tefth system09.5 Video survailance09.6 Cable trays10. FIRE DETECTIONTOTAL
Construction AdministrationTYPES OF CONSTRUCTION CONTRACTSCONTRACT ELEMENTS The parties The work (described by plans and specs) The price (including payment conditions) Schedule
Construction AdministrationTYPES OF CONSTRUCTION CONTRACTS Stipulated lump – sum contractDesign/buildUnit priceConstruction management at riskConstruction management as agency
Construction AdministrationTYPES OF CONSTRUCTION CONTRACTS1. Stipulated lump – sum contract contractor is performing works for fixed lump sum well defined quality and scope of works risk for extras/savings is shared between contractor and owner no additional cost, known price
Construction AdministrationTYPES OF CONSTRUCTION CONTRACTS2. Design/build agreement designer works for construction entity no issues with constructability higher risk for owner’s budget
Construction AdministrationTYPES OF CONSTRUCTION CONTRACTS3. Unit price works are contracted as per unit price for material and labor when scope of work is not precisely defined when expecting significant changes fair for both parties total price is not known until the end of construction
Construction AdministrationTYPES OF CONSTRUCTION CONTRACTS4. Construction management at risk usually, contractor is selected based on qualifications, not price contractor is brought early in design phase cost and fees are open book allowable and unallowable costs guaranteed maximum price (GMP)
Construction AdministrationTYPES OF CONSTRUCTION CONTRACTS5. Construction management as agency CM is in consultancy role separate agreements with each subcontractor
Construction AdministrationSTANDARD CONTRACT FORMSFIDIC – EuropevsAIA – USAFIDIC is the International Federation of Consulting Engineers. Itsmembers are national associations of consulting engineers the most widely used standard conditions for the constructioncontract Used by World Bank, EBRD, EIB
Construction AdministrationSTANDARD CONTRACT FORMSFIDIC CONTRACTS Red book / construction Yellow book / design/build Silver book / turnkey projects Green book / short form of contract Gold book / design, construct & operate White book / project management
Construction AdministrationSTANDARD CONTRACT FORMSSimple projectValue less then 500KProject up to 6 monthsComplex projectDesign docs preparedUnit priceNONOComplex projectContractor is providing designMEPLump-sum priceNOComplex projectLump-sum fixed price
Construction AdministrationMajor Contract Business Issues General conditions – describing project and partiesInvestor’s responsibilitiesContractor’s responsibilitiesAppointed subcontractorsContractor’s employeesRequested quality of worksStart, delays and temporary breaks in constructionChanges and modifications during constructionPrice: lump-sum, GMP, unit price and payment conditions including advanceAdvance payment guarantyPerformance bond and retention money 10%Handover between Contractor and OwnerDeficienciesGuaranty period and bondsRisk and responsibility – liquidated vs. consequential damagesForce majeure (Excusable delay)Disputes and Arbitration
Construction AdministrationPriority of documents ContractThe Letter of AcceptanceThe form of TenderThe SpecificationsThe DrawingsThe Schedules
Construction AdministrationCONSTRUCTION PROCESSPMDESIGNSUPERVISIONSITE SUPERVISIONENGINEERCONSTRUCTIONMANAGERor nvestor
Construction AdministrationCONSTRUCTION PROCESSPre construction phase Development of Plans and Specifications Financing, Budgets, Permits, Schedules Tendering and contracting worksInitial construction phase Site preparation works Building the foundations, structure and exterior envelope including roof Installing windows, doors, vertical transportationFinishes phase MEP Interior finishes applied Exterior landscaping, planting and hardscapePost construction phase Testing and commissioning, close out, completion inspections, handover
Construction AdministrationMax 42 daysCirculateRFPPeriod forPeriod foroffersoffersLast day forsubmissionevaluation Letter ofoffersacceptancesubmission12Notification on Min 7 dayscommencementof works4Contracted period of worksStart ofworks5ContractedDeadline75Prolongation of worksdue to changes gning8928 daysMax 28 daysMax 28 daysBase dateWorksprogram /Schedule310PreconditionApproach to ParticularconditionssitePMcommentson providedschedule11Start ofworks onsite1413Performanceguaranty12Max 28 daysMax 21 day or *AdvancepaymentguarantyAdvance payapplication1516* Max 42 days, depending which date is ION PROCESSDiagram 1
Construction AdministrationStart ofworksContracted period of worksContracteddeadlineProlongation due tochanges and variations21Workscompletiondat
Construction is the process of preparing and forming buildings and building systems. Construction starts with planning, design, and financing and continues until the structure is ready for occupancy. Construction management or construction project management is the overall planning, coordination, and control of a construction process from beginning to completion. Construction project .
