Contracting Construction Administration

Once the contractor is on board and the contract has been successfully negotiated to include all aspects of the project, MCCS is a key member in ensuring the project stays on budget and schedule while meeting the quality and defined needs of the owner.  This means constant contact with the design and construction team through frequent meetings, calls and correspondence.   The following is a list of on-going construction administration issues that are routinely covered by MCCS.

• Contractor delivery method – MCCS has worked with and is very familiar with multiple delivery methods including:  design/bid/build (hard – bid); design-assist, construction manager as agent (CMA), construction manager at risk (CMAR), design build, CM/GC, multiple primes and any other variations.  This delivery method determines at what point the contractor becomes involved in the project, and there are pro’s and con’s to each of the potential delivery methods.  MCCS handles this entire process on the owners behalf in order to get a final construction contract in place for the various phases of the work to begin

• Detailed bid/Cost Reviews – with Kevin’s past in the construction industry, MCCS has an in depth knowledge of the contractor pricing process.  MCCS understands how to review/scope the “general conditions” being charged by the General Contractor, understands what costs are involved as it relates to bonding, liability insurance, builders risk insurance, bond coverage on subcontractors and the detailed scope comparisons between competing subcontractors.  MCCS will review the GC’s “spreadsheet” comparison of trades and ensure the contractor has proper coverage for missing items and ensure the contractor is not doubling up costs between trades (i.e. two different subcontractors pricing the same work such as excavation of footings or utilities, coverage of low voltage wiring, whom carries the unloading or stocking of materials, etc…).  There are numerous ways of over-covering costs buried within each line item in a construction estimate and MCCS knows how to eliminate these excesses which lower the contract price to the owner.

• Construction Contract – negotiating and assembling the final construction contract that accurately covers the owners needs and requirements based on the project documents, previous bids, options and alternates, schedules and scope of work developed when selecting the general contractor.  MCCS has in depth knowledge of industry standard contracts whether it be lump sum, cost plus a fee, Guaranteed Maximum Price or unit cost contracting.

• Job Progress Meetings/Project Notes – it is imperative on most projects that weekly progress meetings be held in which the following topics are discussed and document by MCCS in formal weekly meeting notes:  Weather conditions, safety elements/concerns,  job status, job schedule, shop drawing and submittal status, potential change orders, review of current change requests, old business, new business, requests for information (RFI’s), coordination issues between contractors, owner and consultants; concerns about any particular subcontractor, vendor or product; quality control, review of payment requests and pay status.

• Pre-Install/Construction meetings – depending on the project type, there might be numerous pre-construction meetings and review of mock ups prior to starting a particular task.  For example we might want mock-ups on concrete finishes, wall systems, wall textures or paint colors.  Pre-Installation meetings with representatives from the manufacture and subcontractor might be necessary for roofing, flooring, glazing, data/phone, security systems/features, HVAC operations and controls, electrical distribution, etc…

• Shop drawings and submittals – it is imperative that the contractor and consultants work together in maintaining the flow of project shop drawings and submittals to provide the specified and agreed upon products.  This information needs to be submitted timely, reviewed timely and distributed to all affected.  MCCS monitors this process, reviews the documents where necessary and ensures the comments by the design team meet the intent and requirements of the documents and the owners stated needs/goals.

• RFI’s – Request for information are routine requests from the contractor and their subcontractors for clarification of contract documents or recommendations for a better/more efficient installation.  Some of these requests might come with suggestions that save money/time or cost the project additional money but achieve better results.  MCCS will review and discuss the pertinent RFI’s with the owner where any deviation might be warranted.

• Change Orders and Change Directives – Almost all projects will have change orders, whether forced by job conditions, owner scope changes, code changes or inconsistencies in plans.  MCCS understands the detail cost approach needed to analyze these changes and ensure the owner gets the best pricing under the changed circumstances.  It is imperative that change orders be resolved quickly to avoid any costly delays in a project.  MCCS monitors and tracks change orders to summarize current contract amounts along with monitoring “potential” changes to ensure the owner is up to date on current and potential overall project costs.

• Weather related issues – a factor in many projects is the affect of weather on a project schedule and budget.  Where possible, weather concerns and requirement need to be addressed in detail in the bid documents and the final contract.  It is highly recommended that a “weather contingency” be used and monitored during weekly meetings.  Many weather related costs can and should be figured into the cost of the project during the bidding process (concrete blankets, cold weather accelerators, hot water mix) along with an agreed upon rate for time extensions for contractors General Conditions on a daily basis.

• Quality Control – part of the review in weekly job visits, pre-construction meetings and routine project job walks is to monitor on-going job quality.  This includes: adherence to drawings, specifications and manufactures recommendations and just providing a general heads up to all involved on the level of final quality expectations.

• Allowances – in many instances a contract will include allowances for specific trades/items that were not completed in thought/detail during the design process or before bidding.  In this case allowances are used as a place holder.  These items need to be finalized, priced and set against the allowances once the owner/design team has finalized final design/material selections.  In fast track projects, where site work and/or shell construction is starting before the interior design has completed, allowances are a big part of the contract.  Tracking allowances on a weekly basis is a must to understand the full impact of all costs on the overall budget.

• Updated “as-built” conditions – one thing that is critical during the construction process is to review in the field on a regular basis the status of “as built” conditions.  All underground or concealed piping, valves, boxes, etc…. should be noted on a set of job site as built drawings as the changes are made in order to ensure at the end of the project, all revisions from approved plans are noted on a final set of as built drawings.  This includes depth and locations of plumbing and other utilities buried underground, with some reference point for measuring/locating in the future.

• Payment requests and processing – prior to starting any project, the General Contractor(s) should provide a schedule of values  broken down in sufficient detail to monitor percentage complete of any given task on a monthly basis.  It is customary for MCCS to review draft billings at the job meeting near the end of the month.  Once the percentage complete is approved for the various line items, the contractor submits their formal payment request and appropriate lien releases.  MCCS understands the critical nature of accurate billings and timely turn around on approvals in order to ensure timely payments which keep the job running smoothly.

• Project Contingency(s) – it is always recommended to carry a contingency for “unknowns” that occur during the course of construction.  These contingencies may be carried in the construction contract and/or separate from the construction contract and are monitored and updated on a monthly basis.  The amount of the contingency to carry depends on many factors: new vs. remodel, status/completeness of drawings, and type of contract and experience of the overall team.  Contract language is critical in defining how these contingencies can be used, for what type of change and who must approve the usage.  MCCS has used various types of contingencies and understands the importance of tracking and documenting the needed usage of these funds.

• Commissioning – there are many levels of final commissioning that might take place on any given project and the various operating systems.  LEED buildings have very defined parameters or commissioning, as do some high end mechanical and electrical systems.  This is a topic to be discussed up front on every project as to the degree of commissioning that is requested and/or required.  As the project nears completion, this topic becomes important as to when, how and whom will be performing the commissioning of various systems. 

• Project Closeout – unfortunately, project close out becomes one of the biggest disappointments on many projects.  As the project nears completion, it is imperative that ALL team members stay focused on completing all aspects of the project.  Punch lists of outstanding work items are generated by all design disciplines with the contractor and MCCS involvement.  These punch lists items need to be reviewed and walked on regular basis to ensure completion.  MCCS also makes sure the owner receives the final Operating and Maintenance manuals for the various systems and components, the General Contractor warranties and that of the manufactures, subcontractors and suppliers.  Final “as-built/record documents are required and ALL close out documents are reviewed and approved prior to final payment.  Many times, collecting final lien releases from all suppliers and subcontractors is required before final payment can be released.  MCCS will work with all members of the team to ensure a timely and efficient project close out occurs.