FE Civil Engineering Construction Engineering (Project Administration - Procurement & Project Delivery Methods)

Construction Documents

Drawings, plans, specifications, etc. associated with a construction project.

General Conditions

Defines the basic rights, responsibilities and relationships of all parties

Special Conditions or Supplementary Conditions

Defines specific conditions related to the project

Drawings (Plans) and Specifications

Drawings and detailed descriptions and requirements for the contractor

Competitive (Low Bid) Contracts

Contracts that are won at the lowest cost

Competitive Sealed Proposal (CSP)

Contracts evaluated with a specific set of factors weighted by the owner

Example of CSP Evaluation criteria

Price

Project Management Team

Overall Understanding of Project

Past Experience

Cost Plus or Cost Reimbursable

Used when it's impossible for the owner and contractor to predict their costs during the negotiation, bid and award process (think proposals at KFM)

Guaranteed Maximum Price (GMP)

The contractor or construction manager guarantees the owner a fixed, maximum price.

Incentive Contracts

Contracts award bonuses for delivery before the due date or higher pay for quality of work

What are Job Order Contracts used for?

Maintenance or field changes.

How does a contractor complete work under Job Order Contracts?

Based on a series of work orders instead of a separate contract for each change.

What are Lump Sum Contracts?

Contracts that provide payment for completion of a well-defined scope of work.

When are Lump Sum Contracts typically used?

When the contractor can accurately estimate the costs.

Negotiated Contracts

Contracts that are won through negotiation rather than bid process.

Unit Price Contract

Used for heavy/highway projects that don't allow the contractor or owner to know the exact material quantities. Based on engineering cost estimates.

Design-Bid-Build

Owner contracts separately with the designer and then the contractor

General Contractor

is a group or individual that contracts with another organization or individual (the owner) for the construction, renovation or demolition of a building, road or other structure.

Construction Manager

person who supervises all or part of a building project

Construction Management at Risk

Construction Manager = General Contractor with a GMP. Incentives the CM to actively manage costs

Design Bid-Build

owner has separate contracts with designer and contractor

Design Build

owner has one contract with designer and contractor as a single unit

Multiple Prime Contractors

when the owner has multiple contracts with specialty contractors and cuts out the prime contractor

Project delivery methods

1. Design-bid-build

2. Construction management

3. Design-build

AS-BUILT drawings

Record drawings completed by the contractor and turned over to the owner at the end of the project identifying any changes or adjustments made to the conditions and dimensions of the work relative to the original plans and specifications.

change orders

additions or deductions to scope of work

notice to proceed

document issued to the contractor after award of contract - access to site and project start date

payment bonds

guarantee that the contractor will pay the subs and material suppliers

performance bonds

guarantee the contractor will perfom the work in accordance with plans and specifications.

how do performance bonds protect the owner

If the work is not completed, the surety can take action to make sure it is completed. I.e. they can put the contract out to bid with other contractors and the contractor must repay the surety

performance bond entities

Principal - contractor

Obligee - client

Surety - company that provides the bond and ensures contractor's performance

prebid conference

A meeting held prior to bid opening for the purpose of explaining the project and answering questions that bidders have with respect to the contract documents and the work.

request for information (RFI)

A formal document used by a contractor to clarify contract requirements, drawing/plan specifications to avoid ambiguous delays during construction

retainage

a project owner will retain (10%) of what the contractor earns until the end of project

shop drawings

supplement the contract drawings to identify fabrication details, makes and models, colors and other details required by the contract

subcontractor

specialty contractor performing under contract to the General contractor

TXDOT will contract for the construction of a new highway. Which Procurement Method will be used?

A) Design-Bid-Build

B) Construction Management at Risk

C) Unit Price

D) Incentive

C) Unit Price - used for heavy/highway projects where costs are based on engineers cost estimate

TXDOT will contract for the construction of a new highway. Which Project Delivery Method will be used?

A) Design-Bid-Build

B) Construction Management at Risk

C) Unit Price

D) Incentive

A) Design-Bid-Build - TXDOT will contract with the designer and the contractors separately

Procurement Method

process of acquiring services from contractors and negotiating/setting up terms of the contract

Project Delivery Method

the owner's overall approach to manage the project from design to completion

TXDOT will contract for the construction of a new highway and will award a bonus for early completion of the project. Which Procurement Method will be used?

A) Design-Bid-Build

B) Construction Management at Risk

C) Unit Price

D) Incentive`

D) Incentive - provides the contractor with a bonus for early completion