1. Amber Book Panic Notes - PjM

The Owner is responsible for...

Everything site-related and programming

The Architect is responsible for...

Completing construction documents, including specifications

Code, zoning requirements

Delivering a project on-time and on-budget

The Contractor is responsible for...

Building the project as per contract documents

Means & methods of construction, work site safety, shop drawings, operations manuals, submittals

Privity

No direct contract between architect and contractor, meaning it is difficult to sue

Indemnity

Contractual obligation by which one person or entity agrees to reimburse another for loss or damage arising

from specified liabilities

Betterment

Improvement that enhances property value more than replacement

Subrogation

The process by which an insurer can, after it has paid a loss under the policy, recover the amount paid from any party (other than the insured) who caused the loss or is otherwise legally liable for the loss

Agency relationship

Fiduciary relationship where agent acts on behalf of principal

Duty

Obligation imposed by law or contract

Warranties

Pose unacceptable risk; work to a standard of care instead

Contract terminology to avoid...

"as required", "as necessary"

create a guarantee that is not covered by liability insurance

"hold harmless", "indemnification"

imply that the architect will take liability for things they wouldn't normally be responsible for

Examples of high-risk situations include...

- unknown clients

- inexperienced owners

- clients with a history of litigation

- anything related to condos

Contract Type: A Series

owner - contractor

contractor - subcontractor

Contract Type: B Series

owner - architect

Contract Type: C Series

architect - consultants

Contract Type: D Series

miscellaneous documents

Contract Type: E Series

electronic communications

A101 and B101 are specific to...

- project location

- date

- dispute resolution (mediation, arbitration, litigation; select one)

- fees and pricing

A132

Owner - Contractor

CM as Agent or Advisor

A133

Owner - Contractor

CM as Constructor

A195

IPD Agreement

A201

General Conditions of the Contract for Construction

- architect owns drawings

- process for keeping schedule of values

- process for contractor's application of payment

- substantial completion definition

A701

Instructions to Bidders

C401

Agreement Between Architect and Consultant

G601

RFP - Land Survey

G602

RFP - Geotechnical Services

G201

Project Digital Data Protocol Form

G202

Project BIM Protocol Form

G701

Change Order

G702

Application for Payment

G703

Continuation Sheet - used in conjunction with G702

provides a detailed breakdown of the various component of the work and the scheduled value for each component for which payment request is made

G704

Certificate of Substantial Completion

G716

RFI

Addendum

change made after bid, but before bids are received

Change Order

change after contract is signed

Construction Change Directive

owner and contractor disagree about who pays for something, so the architect issues CCD to the contractor to keep project moving along

Submittals

items contractor submits to the architect for their approval

- product data sheets

- shop drawings

- product samples

Bonds

Bid bonds and performance bonds protect owner if contractor defaults

Invited Bid

prequalified contractors are preselected and given the opportunity to bid

Phased Bid

used during fast-track, allows systems with long lead times to be bid first (and thus fabricated earlier)

Negotiated Bid

contractor brought on at the beginning of the project to provide feedback

after CDs, the bid is negotiated between the owner and contractor

Masterformat vs Uniformat

masterformat = specs organized by material or process (concrete, excavation)

uniformat = specs organized by system (foundations, stairs)

Surety Bond

similar to insurance, protect the owner if the contractor does not follow through on a project

third party insurer will pay the owner to finish the project if a contractor walks away

two types of surety bonds include

bid bond = pay difference between the accepted bid and the next lowest bid if the lowest bidder taps out

- before contract is signed while contractor is still being selected

performance bond = pay for the project to be completed if the contractor defaults

- after contract is signed / contractor is selected

Project Timeline Order

1. RFP

2. Architect Selected

3. Pre-Design (no drawings yet)

4. Schematic Design

5. Design Development

6. Construction Documentation

7. Bidding

8. Contract Awarded

9. Construction Administration

10. Punch List

11. Certificate of Occupancy

12. Substantial Completion

13. Final Completion

Substantial Completion

When a building can be used, even if there are a few last minute items that still need to be completed (before punch list has been completed)

Final Completion

After punch-list has been done and the contractor has completed the contract requirements

Now the contractor can apply for final payment

Gantt Chart

Scheduling tools to depict start and end dates of tasks, sequencing of items in a construction schedule

PERT Chart

Network diagram showing tasks and their dependencies

Critical Path Chart

diagrams which tasks are dependent on other tasks

Slack (float)

how much time is built into the project schedule to account for unexpected, extra time required to complete a task

Free Float Time

the amount of time that a task can be delayed without affecting the start date of subsequent tasks

Total Float Time

the amount of time that a task can be delayed without affecting the completion date of the entire project

7 days

amount of time the architect can give the owner before they will stop providing services

architect or owner can terminate the contract after_____ time of written notice to the other party, if the other party violated their agreement

amount of time to approve or dispute the contractor's application of payment

14 days

time the contractor has to inform the owner and architect if previously concealed site conditions are unveiled

amount of time the architect has to notify the contractor if they don't approve of their subcontractor

30 days

amount of time the owner has to provide final payment to the contractor; issued after the final certificate of payment

60 days

amount of time after substantial completion before the architect's construction administration services end

amount of time that disputes sit between the owner and architect before advancing to arbitration or litigation

90 days

amount of time the owner can suspend a project before the architect can terminate or re-negotiate the contract

1 year

amount of time after substantial completion that the owner is entitled to make any corrections or fix any construction defects

within this amount of time after substantial completion, the owner can request to meet with the architect to discuss building operations and performance (without additional compensation)

the amount of time after substantial completion before the owner-architect contract is terminated

10 years

the amount of time after substantial completion before all claims between the owner and architect (or the owner and contractor) are dropped

Application for Payment includes...

- change order summary

- how much money is needed to complete the project

- amount of retainage for work-in-place

- amount of retainage for stored materials

- certification that the contractor's subs have been paid

Retainage

money owed to the contractor, but intentionally not paid until substantial completion of the project

Mechanic's Liens

portion of the property is owed to the little guy (subcontractor, consultants, etc.) in the event that whoever is responsible for paying them (contractor, e.g.) walks away before payment

requires the owner to sell the property to get enough money to cover little guy costs

Allowances

funds set aside to pay for items that can change frequently or are difficult to narrow down a price far in advance

Alternate

item that is priced for the owner's understanding, but is not included in the base cost of the project

could be added to the project later if the owner gets enough money

Unit Prices

items in the bid that are priced by unit when you aren't sure of total quantities

per square foot, linear foot, cubic foot, etc.

Schedule of Values

line item cost of specific items, including windows, drywall, HVAC, foundations, etc.

ways to calculate architect's fee

- hourly billing

- % of construction cost

- value-based fees

- per SF fees

- fixed fees

Process for filing an ethical complaint

1. File claim through AIA ethics board

2. Advisory board and chair are selected

3. Pre-hearing, hearing, start, claim, defense, end, judgement

claims are confidential; can not result in legal action but can be punished and/or revoke AIA license

Dispute resolution (owner-architect)

1. Mediation -> Arbitration

2. Mediation -> Litigation

Mediation - non-binding, let's talk it out before it gets blown up into something huge

Arbitration - single person makes decision, kept private

Litigation - jury / court decision, made public

Lifecycle costing

Comparison of cost impacts of design decisions

Lifecycle analysis

Comparison of environmental impacts of design decisions

Fair Labor Standards Act

establishes minimum wage, which employees are eligible for overtime, forbids child labor

Occupational Safety and Health Act (OSHA)

protects workers from job site hazards by establishing safety standards

Affordable Care Act

requires firms with more than 50 employees to provide health insurance

Are measured drawings considered a base service or additional service under AIA B101?

additional service

Is programming considered a base service or additional service under AIA B101?

additional service

Is coordination of owner-hired consultants considered a base service or additional service under AIA B101?

additional service

Restrictive Covenant

(aka non-compete clause) limits what an employee can do after they leave the firm

restrictions include setting up their own business, working for competitors, working with the firm's clients, or sharing confidential information

Consequential damages

I can sue you for the unrealized profits I would have made if the building opened on time

These are not allowed in any standard AIA agreements

Liquidated Damages

Amount you owe for each day the project is delayed (example), established in the contract well before construction starts.

These are only allowed in AIA owner-contractor agreements, NOT owner-architect agreements

Direct damages

Pay for the cost to fix the error

Allowed in all AIA contract agreements

What are the options for the owner if the lowest bid comes in too high?

1. increase the budget

2. authorize rebidding / renegotiating

3. terminate

4. cooperate with the architect to revise scope / quality

5. implement mutually acceptable alternative

What does the cost of work include?

- cost of labor and materials

- architecture management fees

- overhead expenses

- profit allowance

What does the cost of work NOT include?

- professional fees

- land cost

- financing costs

- other owner costs (survey, permits, etc.)

Compensation methods for the owner to pay the architect include...

1. stipulated sum

2. cost plus fixed fee

3. % construction cost

4. unit cost

extras (variation of cost plus):

- multiple of direct personnel expense

- multiple of direct salary expense

- hourly billing rates

Compensation methods for the owner to pay the contractor include...

1. stipulated sum

2. cost plus fixed fee

3. guaranteed max price

4. unit prices

Accessory Occupancies

small spaces (area < 10% of total floor area) that are for spaces of a different occupancy than the main occupancy

example: office in the corner of a large warehouse building

What can the Architect do if the Owner suspends the project?

1. suspend work

2. require payment for work-to-date

3. require payment of delay-caused expenses

4. submit a new schedule

What are the Architect's responsibilities to prepare for bidding?

- complete CDs

- update the cost estimate

- administer bidding (aka assist the owner)

B101, Article 1 - Initial Information

- identify the project

- establish budget

- determine schedule

B101, Article 2 - Architect's Responsibilities

- obtain insurance

- standard of care

B101, Article 3 - Architect's Basic Services

- submit a project schedule / timeline

- design must meet applicable code

- consider sustainable design alternatives

- facilitate bidding

- certify payment to contractor

- review contractor submittals

B101, Article 4 - Additional Services

- anything beyond single drawing set with MEP and structural engineering

B101, Article 5 - Owner's Responsibilities

- everything site related

- everything permit related

- geotechnical engineer

- coordination of owner-hired consultants

B101, Article 6 - Cost of Work

Labor and Materials

Management fees

Overhead expenses

Profit allowance

B101, Article 7 - Copyright and Licenses

architect + architect's consultants own their drawings

B101, Article 8 - Claims and Disputes

two options:

1. mediation --> arbitration

2. mediation --> litigation

B101, Article 9 - Termination / Suspension

- if owner suspends project (or doesn't pay architect) for 90 days, the architect can terminate (after 7 days written notice)

- if owner decides to terminate "because they feel like it", they must pay the architect for work up to that point and to cover expenses (insurance, consultant fees, etc.)

- contract automatically terminates 1 year after substantial completion

B101, Article 10 - Miscellaneous Provisions

architect's consultants can't sue the owner directly; owner's consultants can't sue the architect directly

think privity