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Job Site Issues

Module 09-01

April 19, 2023

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Purpose

Recap some of the overall job site issues leading to project close out.

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Learning Objectives

Be able to list and describe briefly the following Job-Site Issues.

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1. Acceptance and Withdrawal Period

Bids are due at a specific time and place.

Bid security (bond) protects Owner from Contractor's failure to sign contract.

Acceptance Period protects Contractor from Owner’s delay in signing the contract.

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2. Award of Notice to Proceed

Consummates the relationship between the Owner and contractor.

Letter of Intent – a legally binding agreement to eventually sign a contract.

Establishes a Start Date. Generally grants access to the work

site.

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3. Contract Agreement

Pulls together: Plans and specifications Standard forms Payment schedule Standard Terms and Conditions Any special or additional T&C’s, Forms, etc. Processes for Change Orders, Time

Extensions, Payment Schedule changes, etc.

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4. Time Extensions

Various reasons:Design problemsOwner modificationsStrikes, Weather, Late Deliveries, etc.

Affects Progress Payments No-Cost extensions are more likely in

research or consulting.

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5. Change Orders

Any alteration of the formal agreement requires a Change Order. They may be needed: To correct design and specification problems Owners change their minds. Conditions change – subsurface, new codes,

technology, economy, etc. Only the Owner or his official designee can sign a

change order. Since they are non-competitive in nature, they may

be a “license to steal.”

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6. Suspension, Delay, or Interruption

For one reason or another, the Owner may order the Contractor to suspend or delay work. The Contractor will usually claim damages.

For one reason or another, the Contractor may delay job completion. The Owner will usually claim liquidated damages. They are hard to collect.

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7. Progress Payments and Retainage

Payments are based upon an agreed upon schedule of values, mile stones, or %-complete estimates.

Retainage is returned after the work is completed to the Owners satisfaction.

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8. Job Close Out

Completion of the work (Close Out) may be a contentious exercise.

The “Punch List” is used to protect both parties from unnecessary delays in establishing the actual completion date.

Completion of “Punch List” establishes the completion of the contract.