construction management procedure

Construction Management Division

Procedures Manual

CONSTRUCTION MANAGEMENT DIVISION

PROCEDURES MANUAL

VOLUME 1: ADMINISTRATION

VOLUME 2: CONSTRUCTION PROJECT MANAGEMENT

VOLUME 3: QUALITY ASSURANCE / INSPECTION

VOLUME 4: SAFETY

VOLUME 5: ENVIRONMENTAL / PERMITS

VOLUME 6: PROFESSIONAL SERVICE, ON-CALL, AND OTHER CONTRACTS

GARY J. CARDAMONE DIRECTOR OF CONSTRUCTION MANAGEMENT

NOVEMBER 2009

MANUAL NO.: E

CMD Procedures Manual iii Preface - VER 01 11/20/09

PREFACE

The Port of Long Beach (POLB) Construction Management Division (CMD) is responsible for managing all construction contracts awarded by the POLB. The Construction Management Division Procedures Manual (CMDPM) is intended as a resource for all Construction Management Division personnel. The CMDPM provides a standardized approach for: administering POLB construction contracts; providing Quality Assurance; obtaining and managing professional service contracts; and the general administration of the Construction Management Division. The purpose of the CMDPM is to:

Define the roles and responsibilities for the individuals involved in a process

Provide the detailed steps involved in a process

Describe how the CMD interfaces with other Bureaus/Divisions

Provide an orientation and training reference for new CMD staff and consultants The CMDPM is not a contract document. It does not impose any obligations or requirements on contractors. Also, this manual cannot cover every possible scenario or circumstance that might occur. It is intended to provide policy and procedure guidelines to supplement an individuals knowledge, experience, and judgment. Each Section of the CMDPM is issued and revised independently. A summary of the current version status for each Section can be found in the Table of Contents. A current updated master copy of this manual is stored on N:\Construction-Inspection Group\CMD Procedures Manual. It is the responsibility of the manual owner to ensure they have the most current version of each Section. The CMDPM is a living document. All CMD personnel are encouraged to provide feedback on ways to improve the manual, refine procedures, or include additional procedures where appropriate. Any proposed modifications to the manual should be sent to the Director of Construction Management. Gary J. Cardamone Director of Construction Management

CMD Procedures Manual v Table of Contents - VER 05 01/24/13

Construction Management Division Procedures Manual

TABLE OF CONTENTS

Section VER Date

1 . VOLUME 1: ADMINISTRATION

1.1. INTRODUCTION ................................................................................................. 01 11/20/09

1.2. MISSION OF THE CONSTRUCTION MANAGEMENT DIVISION ........................................... 01 11/20/09

1.3. ORGANIZATION OF THE CONSTRUCTION MANAGEMENT DIVISION (CMD) .........................

1.3.1. CMD Organizational Chart .................................................................... 01 11/20/09

1.3.2. Roles and Responsibilities ....................................................................

1.3.3. Authority ............................................................................................

1.4. GENERAL ADMINISTRATION ..................................................................................

1.4.1. New Employee Checklist ......................................................................

1.4.2. Working Hours ....................................................................................

1.4.3. Staff Meetings .....................................................................................

1.4.4. Facilities and Equipment ......................................................................

1.4.5. Charge Points .....................................................................................

1.4.6. MWO Procedure ..................................................................................

1.4.7. Sub-Requisitions .................................................................................

1.4.8. Project Listing .....................................................................................

1.4.9. Work Policies of the CMD .....................................................................

1.5. PERFORMANCE MEASURES ....................................................................................

1.6. CONSTRUCTION MANAGEMENT DIVISION PROCEDURES MANAUAL ...................................

1.7. DEFINITIONS ....................................................................................................

2 . VOLUME 2: CONSTRUCTION PROJECT MANAGEMENT

2.1. INTRODUCTION .................................................................................................

2.1.1. Project Phases ....................................................................................

2.1.2. Construction Project Organization Chart ...............................................

2.1.3. Project Roles, Authority, and Responsibilities ........................................

2.1.4. Project Interfaces ................................................................................

2.2. DOCUMENT CONTROL .........................................................................................

2.2.1. Project Files ........................................................................................

2.2.2. Incoming Correspondence ...................................................................

2.2.3. Outgoing Correspondence....................................................................

2.2.4. Internal Correspondence .....................................................................

2.2.5. E-mail .................................................................................................

2.3. DESIGN PHASE ..................................................................................................

2.3.1. Constructability Review Procedures ......................................................

2.4. PROCUREMENT / PRE-CONSTRUCTION PHASE ............................................................ 01 11/20/09

2.4.1. Procurement / Pre-Construction Phase Checklist ................................... 01 11/20/09

2.4.2. Advertising for Bids .............................................................................

TABLE OF CONTENTS

Section VER Date

CMD Procedures Manual vi Table of Contents - VER 05 01/24/13

2.4.3. Award Process ....................................................................................

2.4.4. Construction Management Budget ........................................................

2.4.5. Conformed Specification and Plans .......................................................

2.4.6. Hand-off Meeting..............................................................................

2.4.7. Expedition ..........................................................................................

2.4.8. Field Office Set-up ...............................................................................

2.4.9. Pre-Construction Meeting ..................................................................... 01 06/28/10

2.4.10. Partnering...........................................................................................

2.5. CONSTRUCTION PHASE........................................................................................

2.5.1. Notice to Proceed (NTP) ...................................................................... 01 12/18/09

2.5.2. Permits and Licenses ...........................................................................

2.5.3. Emergency Phone List .........................................................................

2.5.4. Meetings .............................................................................................

2.5.5. Weekly Reports ...................................................................................

2.5.6. Request for Information (RFI) ..............................................................

2.5.7. Submittal ............................................................................................

2.5.8. Construction Schedules ........................................................................

2.5.9. Progress Payments ..............................................................................

2.5.10. SBE/VSBE Program ..............................................................................

2.5.11. Contract Time .....................................................................................

2.5.12. Liquidated Damages ............................................................................

2.5.13. Quality Management ...........................................................................

2.5.14. Project Photos .....................................................................................

2.5.15. Survey ................................................................................................

2.5.16. As-Built Drawings (Red-line) ................................................................

2.5.17. Change Management ........................................................................... 02 01/24/13

2.5.18. Subcontractor Substitution ...................................................................

2.5.19. General Contract Administration ...........................................................

2.5.20. Third Party Claims ...............................................................................

2.5.21. Termination of Contract .......................................................................

2.5.22. Final Inspection (Punch Lists) ..............................................................

2.5.23. Substantial Completion and Commencement of Guarantee ....................

2.5.24. Partial Acceptance ...............................................................................

2.6. CONTRACT CLOSEOUT/POST-CONSTRUCTION PHASE .................................................. 01 02/05/10

2.6.1. Contract Closeout Checklist .................................................................. 01 02/05/10

2.6.2. Final Acceptance .................................................................................

2.6.3. Operation and Maintenance Manuals ....................................................

2.6.4. Warranty Work ...................................................................................

2.6.5. As-Built Drawings ................................................................................

2.6.6. Post-Construction Review .................................................................... 01 12/18/09

2.6.7. Contract Closeout Data Sheet .............................................................. 01 06/28/10

3 . VOLUME 3: QUALITY ASSURANCE / INSPECTION

3.1. GOALS ............................................................................................................ 01 12/18/09

3.2. ORGANIZATIONAL CHART / ROLES AND RESPONSIBILITIES............................................ 01 12/18/09

TABLE OF CONTENTS

Section VER Date

CMD Procedures Manual vii Table of Contents - VER 05 01/24/13

3.3. INSPECTION PROCEDURES BY DISCIPLINE - GENERAL ..................................................

3.3.1. Dredging ............................................................................................ 01 11/20/09

3.3.2. Railroad Track ..................................................................................... 02 06/28/10

3.3.3. Striping .............................................................................................. 01 11/20/09

3.3.4. Fencing ..............................................................................................

3.3.5. Electrical .............................................................................................

3.3.6. Storm Drain ........................................................................................ 01 06/28/10

3.3.7. Sewers ...............................................................................................

3.3.8. Cement Treated Base (CTB).................................................................

3.3.9. Street Lighting and Traffic Signals ........................................................

3.3.10. Landscape and Irrigation .....................................................................

3.3.11. Engineering Fabrics .............................................................................

3.3.12. Microtunneling and Jacking ..................................................................

3.3.13. Painting and Coating ...........................................................................

3.3.14. Harbor Development Permits ...............................................................

3.4. INSPECTION PROCEDURES BY DISCIPLINE - DEPUTY INSPECTIONS / TECHNICIANS ..............

3.4.1. Reinforced Concrete ............................................................................ 01 12/18/09

3.4.2. Prestressed Concrete ...........................................................................

3.4.3. Concrete Batch Plant Inspection ...........................................................

3.4.4. ACI Concrete Field Testing Technician ..................................................

3.4.5. Pile Driving .........................................................................................

3.4.6. Pile Plant Inspection ............................................................................

3.4.7. Drilled-In-Anchors ...............................................................................

3.4.8. Structural Masonry ..............................................................................

3.4.9. Spray Applied Fireproofing ...................................................................

3.4.10. Welding ..............................................................................................

3.4.11. High Strength Bolting ..........................................................................

3.4.12. Steel Shop Fabrication .........................................................................

3.4.13. Grading/Soils ......................................................................................

3.4.14. Asphalt Paving .................................................................................... 01 06/28/10

3.4.15. Asphalt Batch Plant .............................................................................

3.5. DAILY REPORTS ................................................................................................

3.6. NON-COMPLIANCE NOTICES .................................................................................

3.7. PROJECT PHOTOS ..............................................................................................

3.8. EMERGENCY RESPONSE PROCEDURES ......................................................................

3.9. OBTAINING OUTSIDE SERVICES FOR MATERIALS TESTING AND INSPECTION ......................

4 . VOLUME 4: SAFETY

4.1. GENERAL .........................................................................................................

4.2. DUTIES AND RESPONSIBILITIES .............................................................................

4.3. MANAGING CONSTRUCTION PROJECT SAFETY HAZARDS ...............................................

4.4. CONTRACTOR JOBSITE ACCIDENT ..........................................................................

4.5. VISITORS TO JOBSITE .........................................................................................

4.6. JOBSITE HAZARD ASSESSMENT ..............................................................................

4.7. SITE SPECIFIC SAFETY MANUALS ...........................................................................

TABLE OF CONTENTS

Section VER Date

CMD Procedures Manual viii Table of Contents - VER 05 01/24/13

4.8. TAILGATE SAFETY MEETINGS ................................................................................

4.9. OFF-SITE OFFICE INSPECTION ..............................................................................

4.10. HARBOR DEPARTMENT SAFETY POLICIES ................................................................

5 . VOLUME 5: ENVIRONMENTAL / PERMITS

5.1. HDP PERMIT AND INSPECTION ..............................................................................

5.2. NPDES PERMIT ................................................................................................

5.3. DEWATERING PERMIT .........................................................................................

5.4. ACOE DREDGING PERMIT ...................................................................................

5.5. RWQCB DREDGING PERMIT ................................................................................

5.6. COLB BUILDING DEPARTMENT PERMITS ..................................................................

5.7. UNFORESEEN HAZARDOUS MATERIAL PROCEDURE ......................................................

5.8. DUST CONTROL AND AQMD PERMITS .....................................................................

6 . VOLUME 6: PROFESSIONAL SERVICE, ON-CALL, AND OTHER CONTRACTS

6.1. PROFESSIONAL SERVICE CONTRACTS ......................................................................

6.1.1. RFP / RSOQ ........................................................................................

6.1.2. Selection Procedure .............................................................................

6.1.3. Contract Process .................................................................................

6.1.4. Authorization for Services ....................................................................

6.1.5. Invoices ..............................................................................................

6.1.6. Annual Inspection and Testing Contracts ..............................................

6.2. ON-CALL CONSTRUCTION CONTRACTS ....................................................................

6.2.1. Specification Preparation .....................................................................

6.2.2. Bid and Award ....................................................................................

6.2.3. Contract Administration .......................................................................

6.2.4. Request for Annual Contract Services (RACS) ........................................

6.2.5. Annual Contract Task Order (ACTO) .....................................................

6.2.6. Recycling Rubble Program ...................................................................

6.2.7. Progress Payments ..............................................................................

6.2.8. Tracking Requests ...............................................................................

6.3. INFORMAL CONTRACTS ........................................................................................

ABBREVIATIONS / ACRONYMS

CMD Procedures Manual ix Abbreviations / Acronyms - VER 01 11/20/09

AA Administrative Analyst

AC Asphalt Cement

ACI American Concrete Institute

ACOE Army Corp of Engineers

ACTO Annual Contract Task Order

ADPICS Advanced Purchasing and

Inventory Control System

AQMD Air Quality Management District

AREMA American Railway Engineering and

Maintenance-of-Way Association

ASTM American Society for Testing and

Materials

AWS American Welding Society / Alternative Work Schedule

BHC Board of Harbor Commissioners

BIC Ball-in-Court

BIM Building Information Modeling

BMP Best Management Practice

(SWPPP)

BPO Blanket Purchase Order

C/AT City Attorney

C/AU City Auditor

CAB Crushed Aggregate Base

CAL/OSHA California Occupational Safety and

Health Administration

CAP Corrugated Aluminum Pipe

CBC California Building Code

CCC California Coastal Commission

CCDS Contract Closeout Data Sheet

CCR California Code of Regulations

CHE Chief Harbor Engineer

CI Chief Inspector

CJP Complete Joint Penetration

CM Construction Manager

CMB Crushed Miscellaneous Base

CMD Construction Management Division

CMDPM Construction Management Division Procedures Manual

CMU Concrete Masonry Unit

CO Change Order

COLA City of Los Angeles

COLB City of Long Beach

CPC Contractor Proposed Change

CPCO Contractor Potential Change Order

CPR Certified Payroll Records

CR Constructability Review

CRSI Concrete Reinforcing Steel Institute

CSP Corrugated Steel Pipe

CTB Cement Treated Base

CWO Capital Work Order

CWR Continuous Welded Rail

Cx Commissioning

CxA Commissioning Agent

DBE Disadvantaged Business Enterprise

DCC Document Control Clerk/Center

DCC IN Document Control Center -

Incoming Correspondence

DCC OUT Document Control Center -

Outgoing Correspondence

DCHE Deputy Chief Harbor Engineer

DCM Director of Construction Management

Demob De-mobilization

DI Deputy Inspector

DPO Direct Purchase Order

DWG Drawing

E&O Errors and Omissions

ED Executive Director of the Long

Beach Harbor Department

EEC Engineering and Environmental

Committee

EIR Environmental Impact Report

ENV-PLN Environmental Planning Division

FAMIS Financial Accounting Management Information System

FD Front Desk

FIO For Information Only

FY Fiscal Year

GIS Geographic Information System

GP General Provision

HAZMAT Hazardous Materials

HDP Harbor Development Permit

HR Human Resources Division

I Inspector

ICC International Code Council

JV Journal Voucher

LBFD Long Beach Fire Department

LBGD Long Beach Gas & Oil Department

ABBREVIATIONS / ACRONYMS

CMD Procedures Manual x Abbreviations / Acronyms - VER 01 11/20/09

LBHD City of Long Beach Harbor Department (a.k.a. POLB)

LD Liquidated Damages

LEED Leadership in Environment and

Energy Design

LI Lead Inspector

LS Lump Sum

MCN Make Corrections Noted

MLLW Mean Lower Low Water

Mob Mobilization

MOU Memorandum of Understanding

MT Magnetic Particle Testing

MTBM Micro Tunneling Boring Machine

MUR Monthly Utilization Report

(SBE/VSBE)

MWO Maintenance Work Order

NDT Nondestructive testing

NEC National Electrical Code

NEMA National Electrical Manufacturers

Association

NET No Exceptions Taken

NFPA National Fire Protection Association

NIOSH National Institute of Occupational

Safety and Health

NPDES National Pollutant Discharge Elimination System

NTE Not-to-Exceed

NTP Notice to Proceed

O&M Operation and Maintenance

OSHA Occupational Safety and Health Administration

OT Overtime

OTM Other Track Material

PCC Portland Cement Concrete

PHL Pacific Harbor Line

PI Principal Inspector

PM Program Manager

PO Purchase Order

POCN Purchase Order Change Notice (a.k.a. POCO)

POCO Purchase Order Change Order

(a.k.a. POCN)

POLA Port of Los Angeles

POLB Port of Long Beach (a.k.a. LBHD)

Post-Con Post-Construction

PPE Personal Protective Equipment

Pre-Con Pre-Construction

PT Post Tensioning

QA Quality Assurance

QC Quality Control

RACS Request for Annual Contract

Services

RAR Revise and Resubmit

RCSC Research Council on Structural Connections

REJ Rejected

REV Revision / Revised

RFC Request for Change

RFI Request for Information

RFP Request for Proposal

RFQ Request for Qualifications

RM Risk Management

RWQCB Regional Water Quality Control

Board

SBE Small Business Enterprise

SN Stop Notice

SNR Stop Notice Release

SOQ Statement of Qualifications

SOV Schedule of Values

SP Special Provision

SSI Submit Specified Item

SSPWC Standard Specifications for Public

Works Construction ("Greenbook")

Sub-Req. Sub-Requisitions

SWPPP Storm Water Pollution Prevention

Plan

T&M Time and Materials

TMD Temperature Measuring Device

TSR Terminal Service Representative

USCG United States Coast Guard

UT Ultrasonic Testing

VER Version

VSBE Very Small Business Enterprise

WATO Work Allowance Task Order

WPS Welding Procedure Specification

FLOWCHART SYMBOLS

CMD Procedures Manual xi VER 01 12/18/09

Flowchart Layout:

Process Symbols:

Symbol Name Description

Process Describes a process or action step.

Procedure Reference

Cross-references the procedure number in the written procedure section.

Sub-

Process

A pre-defined process containing multiple process flow steps which are

formally defined elsewhere. The text within the symbol should include a reference to the Manual Section where the Sub-Process is defined.

Decision Indicates a question. The flow lines out of the symbol will indicate

which alternate path to take based on the answer to the question.

Document A process step which produces a document.

Multi-

Document A process step which produces multiple documents.

Expedition/Computer

Process

A process which involves the Construction Management software (Primavera Expedition/Contract Manager), or another computer

software.

Flow Line Indicates the direction of the process flow.

Start

Terminal Indicates the start point of the flow chart.

End

Terminal Indicates the end point of the flow chart.

Or Gate Indicates two or more alternate process flow paths.

And Gate Indicates concurrent or parallel processes.

On-Page

Connector A connector indicating a jump from one point in the process flow to another on the same page. Used to avoid conflicting flow lines.

Off-Page

Connector Shows the continuation of a process flowchart onto another page.

Annotation Provides additional detail related to the process step. Typically includes

distribution and/or routing information.

Procedure NameRole

/ P

osi

tion

D.x

D.x

D.x

D.x

D.x

D.x

D.x

START

END

or

and

1

A

Distribution:

and/or

Copy Routing:

D.3

Swim Lane Contains the activities or

process steps the Role/Position is

responsible for.

Phase Separator Indicates where a

process transitions from one phase to

another.

Volume 2 - Construction Project Management

Construction Management Division Procedures Manual

2.4 Procurement / Pre-Construction Phase

CMD Procedures Manual Page 1 of 1 2.4 - VER 01 2.4 Pre-Con VER 01.docx

2.4 PROCUREMENT / PRE-CONSTRUCTION PHASE

The Procurement Phase is the process by which the Port obtains a Contractor under a Design-Bid-Build project delivery method. The Procurement Phase begins when the project is advertised for bids, and concludes when the construction contract is Conditionally Awarded by the Board of Harbor Commissioners. The Program Management Division is responsible for the Procurement Phase activities, which include: advertising for bids; conducting the Pre-Bid Meeting; answering bidders questions; producing Addenda as necessary; opening and analyzing bids; notifying the Engineering and Environmental Committee of bids received; and requesting the Board of Harbor Commissioners approve conditional award of a contract to the lowest responsive bidder. The Pre-Construction Phase begins once the construction contract is Conditionally Awarded by the Board of Harbor Commissioners, and concludes when the Notice to Proceed is issued by the Construction Management Division (CMD). The Program Management Division is responsible for processing the contract during the Pre-Construction Phase. Upon execution of the contract by the Executive Director, the project is handed off to the CMD and the CMD becomes responsible for all activities related to the construction contract. Preparation for the Construction Phase begins during the Procurement Phase and continues through the Pre-Construction Phase by completing the following activities:

Monitoring the status of the contract bid and award

Assigning resources to the project

Finalizing the CM budget estimate and contingency recommendation and transmitting it to the Program Manager within two working days after receipt of bids

Monitoring plan check / permit status

Verifying site availability

Preparing project files

Preparing the Quality Assurance plan

Initiating requests for materials testing and/or inspection services

Reviewing the drawings and specifications to become more familiar with the phasing, tenant and other third-party coordination, and any other special requirements

DOCUMENT APPROVAL:

VER Date Approved By:

01 11/20/09

Gary J. Cardamone Director of Construction Management

REVISION HISTORY:

VER Date Summary of Changes

2.4.1 Procurement / Pre-Construction Phase Checklist

CMD Procedures Manual Page 1 of 7 2.4.1 - VER 01 2.4.1 Pre-Con Checklist VER 01.docx

2.4.1 PROCUREMENT / PRE-CONSTRUCTION PHASE CHECKLIST INDEX:

Section Page A. Flowchart .................................................................... 2

B. Purpose and Policy Overview ........................................ 3

C. Roles and Responsibilities ............................................. 3

D. Procedure ................................................................... 4

E. Exhibit(s)

1. Procurement / Pre-Construction Checklist ................. 5

DOCUMENT APPROVAL:


01 11/20/09


REVISION HISTORY:




A. FLOWCHART



B. PURPOSE AND POLICY OVERVIEW

The purpose of the Procurement/Pre-Construction Phase Checklist is to provide Construction Management Team members with a quick summary reminder of activities that occur during the Procurement and Pre-Construction Phases, and provide a status summary for supervisors and managers to ensure activities are completed in a timely manner. A Procurement/Pre-Construction Phase Checklist shall be filled out for all construction contracts. The Construction Manager assigned to the project is responsible for filling out the checklist and obtaining the status of the various items in the checklist from the project team members. However, every project team member is encouraged to use the checklist as a reference. This Section refers to the policies and procedures for the checklist only. Policies and procedures for the various items within the checklist may be found under their associated Section in the CMD Manual.

C. ROLES AND RESPONSIBILITIES

1. Front Desk: Provide status of tasks for which they are responsible.

2. DCC: Provide status of project file set-up.

3. Administrative Analyst: Provide status of contract execution and Business License.

4. Lead Inspector: Provide status on Quality Management Plan.

5. Principal Inspector: Provide status on Quality Management Plan.

6. Construction Manager: Complete the Checklist and ensure all items are completed in a timely manner. Obtain status updates from the various individuals responsible for completing the tasks. Notify CM Supervisor of issues preventing the timely completion of any item.

7. CM Supervisor: Review checklist periodically. Verify completion of items, and sign final Checklist. Assist in resolving issues as necessary.

8. DCHE I: Provide status of On-Call Inspection & Material Testing Services.

9. DCHE II: Provide status of contract award. Review checklist periodically.

10. DCM: Provide status of contract award. Review checklist as necessary. Receive final copy.

Other Bureau/Division Roles:

1. PM: Provides status during Bidding Phase, Plan Check/Permit information, and Charge Point and Capital Work Order funding status.

2. PM Admin Controls: Provides status of contract execution.



D. PROCEDURE:

1. The DCM assigns a CM to a project.

2. The CM obtains a copy of the most current Procurement / Pre-Construction Phase Checklist (Form: CHKLST-PRECON) from N:\Construction-Inspection Group\Construction Forms\Chklst-PreCon (version date).xlsx.

3. The CM inputs the date each item is complete as soon as the item is complete. For items the CM is not directly responsible for completing, the CM obtains status updates from the responsible party.

4. The CM notifies the CM Supervisor of issues delaying the timely completion of any item.

5. The CM provides a copy of the Checklist to the CM Supervisor as requested.

6. Once all items have been completed, the CM signs the final version and gives to the CM Supervisor.

7. The CM Supervisor verifies completion of each item and signs the final Checklist.

8. The CM routes a copy of the signed final Checklist to the CM Supervisor, DCHE II, DCM, and file.

9. The CM includes a copy of the signed final Checklist with draft copy of the Notice to Proceed.

E. EXHIBIT:

1. Procurement / Pre-Construction Phase Checklist

(File: N:\Construction-Inspection Group\Construction Forms\Chklst-PreCon (version date).xlsx)



Exhibit 1: Procurement / Pre-Construction Phase Checklist

2.4.9 Pre-Construction Meeting

CMD Procedures Manual Page 1 of 8 2.4.9 - VER 01 2.4.9 - Pre-Con Meeting VER 01.docx

2.4.9 PRE-CONSTRUCTION MEETING INDEX:

Section Page

A. Flowchart .................................................................................. 2

B. Purpose and policy overview ....................................................... 3

C. Roles and responsibilities ........................................................... 3

D. Procedure ................................................................................. 4

E. Exhibits..................................................................................... 6

1. Pre-Construction Meeting Agenda Template (Page 1 of 5) ......... 7

2. Pre-Construction Meeting List of Invitees Template .................. 8

DOCUMENT APPROVAL:


01 6/28/10

G.J. Cardamone, P.E. Director of Construction Management

REVISION HISTORY:




A. FLOWCHART

Prepare and sign Pre-Construction Meeting Minutes.

Pre-Construction Meeting

CMCM SupervisorDCM Admin Support Section

Review and Comment

Review and Comment

Sign

Prepare Wage Requirements and

Retention of Monies letters

Obtain MUR file from SBE Office

Create CD for Contractor

Distribution: DCC (original to project file)CMCM SupervisorDCHE IIDCHE IChief InspectorPrincipal InspectorConstruction Inspector

D.5

D.9 D.9

D.10

D.11

Track Status of Contract Execution. Notify CM when fully

executed.

D.4

D.1

Chief SurveyorProgram ManagerTerminal Service RepSBE AdministratorContractorDesigner(meeting attendees)

END

Notify POLB project staff, consultants, tenant(s), selected lab, and any third-parties impacted by project

of the Pre-Con Meeting

D.8

NO

Send agenda toContractor and remind

Contractor of items they are responsible for bringing to

Pre-Con Meeting

D.14

Conduct Pre-Construction Meeting

YES

Prepare draft Pre-Construction Meeting

Agenda and list of invitees and route for review

START

D.7

Schedule Pre-Construction Meeting and reserve conference room.

Coordinate with Contractor, DCM, and Inspector.

Is Contract fully Executed?

Finalize Pre-Construction Meeting Agenda and list of

invitees

DCC OUTDistribute Meeting

Minutes (Go to CMDPM 2.2.3)

D.14-16

D.12

D.13

D.1

D.3

D.2

D.6




The purpose of the Pre-Construction Meeting is to:

Introduce the project participants and establish key staff interfaces

Review the projects scope of work and preliminary schedule

Discuss coordination and conflicts with other projects and third-parties

Discuss impacts to the tenants and/or public

Discuss the Contractors approach and key issues

Review environmental requirements

Review project administrative requirements A Pre-Construction Meeting shall be conducted on all construction contracts after the contract is fully executed and prior to Notice to Proceed.


Construction Management Division:

1. Administrative Support Section: Prepare Wage Requirements and Retention of Monies letters, obtain MUR from SBE Office, create CD of Administrative documents for Contractor, and discuss Administrative requirements at Pre-Construction meeting.

2. Chief Inspector: Attend Pre-Construction Meeting.

3. Construction Manager: Responsible for completing all requirements of the Pre-Construction Meeting process. Coordinate with key attendees and schedule meeting, create meeting Agenda, chair Pre-Construction Meeting, generate and distribute meeting minutes.

4. CM Supervisor: Review and comment on draft Agenda and list of invitees. Attend Pre-Construction Meeting.

5. DCC: Stamp, file index, scan, and file meeting minutes.

6. Deputy Chief Harbor Engineer I: Attend Pre-Construction Meeting as necessary.

7. Deputy Chief Harbor Engineer II: Attend Pre-Construction Meeting as necessary.

8. Director of Construction Management: Review and sign Administrative documents, review and comment on draft Agenda and invitees, attend Pre-Construction Meeting.

9. Inspector: Attend Pre-Construction Meeting.

10. Principal Inspector: Attend Pre-Construction Meeting.



Other Bureaus/Divisions:

1. Program Manager: Attend Pre-Construction Meeting.

2. SBE Office: Discuss SBE requirements at Pre-Construction Meeting.

D. PROCEDURE

1. Begin Pre-Construction Meeting process once the Contract is fully executed.

2. The CM coordinates with the Contractor, DCM, and Inspector to determine a mutually agreeable meeting date and time, and reserves an appropriately sized conference room.

NOTE: Allow enough time for the Contractor and the Administrative Support Section to prepare for the meeting (typically one-week). Review the Contract documents to determine any project-specific Pre-Construction Meeting requirements.

3. The CM prepares a draft Pre-Construction Meeting Agenda and list of invitees, and routes for review. The Agenda template is located in N:\Construction-Inspection Group\Construction Forms\Pre-Con Agenda (version date).docx. (See Exhibit 1)

a. The Agenda template should be modified to reflect the project-specific issues and concerns. Agenda topics include:

Part 1

1) Introduction, project organization, and primary contacts

2) Overview of the project scope of work, anticipated NTP and completion dates

3) Contractors preliminary schedule and sequencing, key issues and critical work items, and mobilization

4) Project coordination, such as utility companies or other projects

5) Impacts the project will have to the Ports tenants or the general public

6) Meetings required on the project, such as the weekly progress meetings or scheduling meetings

Part 2

1) Environmental permit requirements

2) Soil management, including import, export, and stockpiling requirements

3) Quality Assurance, including material testing, inspection and surveying coordination

4) Processing progress payments

5) Written and verbal communication



6) Processing RFIs

7) Processing submittals

8) Change process, including CPCO and CO procedures

9) Allowance Bid Item procedures (if applicable)

10) Contingency Bid Item procedures (if applicable)

11) Liquidated damages

12) CPM schedule requirements

13) Project permits

14) Other issues

b. A list of standard invitees is included in the Agenda template, and should be modified to include the various project-specific participants, including Port staff, tenants, utility companies, and other third parties. (See Exhibit 2)

4. The CM Supervisor reviews and comments on the draft Agenda and list of invitees.

5. The DCM reviews and comments on the draft Agenda and list of invitees.

6. The CM finalizes the Agenda and list of invitees.

7. The CM sends the notice of the meeting and a copy of the final Agenda to the Contractor, with a reminder of the items the Contractor is responsible for bringing to the meeting. The notice and Agenda may be e-mailed or mailed to the Contractor.

8. The CM sends out a meeting notice with a copy of the Agenda to all other invitees on the list. For all POLB invitees, the CM sends out an MS Outlook Meeting Request with a pdf copy of the Agenda attached. The notice may be e-mailed or mailed to the tenants, utility companies, and other third-party invitees.

9. The Administrative Support Section prepares the Wage Requirements and Retention of Monies letters, and routes them to the DCM for signature.

10. The Administrative Support Section coordinates with the SBE Office and obtains a digital copy of the Monthly Utilization Report (MUR).

11. The Administrative Support Section scans the letters and assembles a CD of Administrative documents to deliver to the Contractor at the Pre-Construction Meeting. The CD includes the following:

a. Wage Requirements letter (scan)

b. Retention of Monies letter (scan)

c. Monthly progress payment template (Excel file)

d. Monthly Utilization Report (Excel file)

e. Labor Compliance forms



12. The CM chairs the Pre-Construction Meeting. The CM should arrive early to set up the room, and bring the following items to the meeting:

a. Sign-in sheet and pen

b. Copies of the Agenda

c. Display of the project for the wall

d. Business cards

13. The CM prepares the meeting minutes in Primavera Contract Manager in the Meeting Minutes module (see Quick Reference Guide for Primavera Contract Manager), and prints and signs the original. Meeting minutes should be prepared as soon as possible after the meeting, and include all relevant hand-outs from the meeting.

14. The CM distributes the meeting minutes to all invitees, regardless of their attendance at the meeting. Meeting minutes should be distributed within one-week of the Pre-Construction meeting. Distribute a pdf copy of the meeting minutes via e-mailing whenever possible.

15. The CM gives the original signed meeting minutes and any back-up documents or hand-outs from the meeting to the DCC.

16. The DCC stamps, indexes, scans, attaches in Contract Manager (DCC OUT), and files in the project file (File Index 05).

E. EXHIBITS

1. Pre-Construction Meeting Agenda Template (Page 1 of 5)

2. Pre-Construction Meeting List of Invitees Template



Exhibit 1: Pre-Construction Meeting Agenda Template (Page 1 of 5)



Exhibit 2: Pre-Construction Meeting List of Invitees Template

2.5.1 Notice to Proceed

CMD Procedures Manual Page 1 of 8 2.5.1 - VER 01 2.5.1 - Notice to Proceed VER 01.docx

2.5.1 NOTICE TO PROCEED INDEX:

Section Page A. Flowchart .................................................................... 2

B. Purpose and Policy Overview ........................................ 3

C. Roles and Responsibilities ............................................. 3

D. Procedure ................................................................... 3

E. Reference.................................................................... 5

F. Exhibits

1. Notice to Proceed Checklist ..................................... 6

2. Notice to Proceed Template ..................................... 7

3. Notice to Proceed Sample ........................................ 8

DOCUMENT APPROVAL:


01 12/18/09


REVISION HISTORY:




A. FLOWCHART

Notice to Proceed

Admin Support Section

CM Supervisor / DCHE II

DCMCM

Distribution:Admin Analyst IAssistant Admin Analyst IAdmin AidDeputy Chief Harbor Engineer IIDeputy Chief Harbor Engineer I Chief InspectorChief SurveyorConstruction Manager

START

NOIs Contract

Executed & copies distributed?

YES

Obtain Executed Contract &

distribute copies

D.1D.1

Discuss NTP Date with

Contractor & DCM

D.2

Complete& sign Notice to

Proceed Checklist Form: CHKLST-NTP

D.3

Verify and sign

D.4

Prepare draft NTP in Contract

Manager Letters Module using Notice to Proceed template

Route draft NTP, CHKLST-NTP, CHKLST-PRECON, & RM Insurance Approval form

D.6

Review & Initial

D.6.a

Review & Initial

D.6.b

Review & Initial

D.6.c

Finalize NTP on Letterhead Sign

DCC OUTMail or hand-deliver

to Contractor(Go to CMDPM

2.2.3)

D.9-11

D.5.b

END

D.5

D.7

Principal InspectorInspector(s)Program ManagerDesign EngineerDirector of Risk ManagementSBE/VSBE OfficeReal Estate (if applicable)Record Center

D.8




Once the contract is fully executed, a written Notice to Proceed (NTP) is issued to the Contractor to commence the work and start the contract time as defined in Special Provision Time of Completion and Liquidated Damages. The Notice to Proceed date is the first day of the contract time. A Notice to Proceed shall be issued on every construction contract. A separate NTP may need to be issued for milestones which are not linked to the initial NTP. The Notice to Proceed should be issued on a timely basis soon after the contract is fully executed, but no later than 90-days after Conditional Award by the Board of Harbor Commissioners (unless the Specification defines the Contractors bid guarantee period differently). An NTP issued after the bid guarantee period requires the Contractor provide a written guarantee of the original bid, or negotiate any increase in cost associated with the delay (i.e. material price escalation, working in a less favorable season, etc.).


Construction Management Division

1. Front Desk: Copy, distribute, and mail final Notice to Proceed.

2. DCC: Scan, log, and file final Notice to Proceed.

3. Administrative Support: Review draft Notice to Proceed.

4. Construction Manager: Responsible for the Notice to Proceed process. Draft the Notice to Proceed, complete the Notice to Proceed Checklist, and finalize the Notice to Proceed.

5. CM Supervisor: Review draft Notice to Proceed. Verify Notice to Proceed Checklist.

6. DCHE II: Review draft Notice to Proceed, verify Notice to Proceed Checklist (if there is no CM Supervisor assigned to project).

7. DCM: Review draft and sign Notice to Proceed.

Other Bureaus/Divisions

1. PM: Discuss issues related to delaying NTP (if applicable).

D. PROCEDURE

1. Begin the Notice to Proceed process after the contract is fully executed.

2. The CM discusses the NTP date with the Contractor to allow the Contractor to coordinate operations and mobilization. Because time is of the essence, any request



from the Contractor to delay to the NTP date should be discussed with the Director of Construction Management and the Program Manager.

3. The CM completes and signs the Notice to Proceed Checklist. A copy of the most current checklist can be found on N:\Construction-Inspection Group\Construction Forms\Chklst-NTP (version date).xlsx.

4. The CM Supervisor (or DCHE II) verifies items in Checklist are complete and signs Checklist.

5. The CM prepares a draft Notice to Proceed in Contract Manager using the Notice to Proceed template in the Letters Module. See Exhibit 1 for the NTP template and Exhibit 2 for an example of an NTP with multiple milestones.

a. When calculating the required completion, the effective date of the NTP is the first contract day. For example, a one calendar day contract would start and end on the NTP effective date (12:00 a.m. to 11:59 p.m).

b. The cc list should include, at a minimum, the following:

Admin Analyst I

Assistant Admin Analyst I

Admin Aid

Deputy Chief Harbor Engineer II

Deputy Chief Harbor Engineer I

Chief Inspector

Chief Surveyor

Construction Manager

Principal Inspector

Inspector(s)

Program Manager

Design Engineer

Director of Risk Management

SBE/VSBE Office

Real Estate (if applicable)

Record Center

6. The CM routes the draft Notice to Proceed along with a copy of the Notice to Proceed Checklist and a copy of the Risk Management approval form. The routing order is as follows:

a. Admin Analyst I

b. CM Supervisor (or DCHE II if a CM Supervisor is not assigned)

c. Director of Construction Management

7. The CM finalizes the Notice to Proceed on POLB letterhead.

8. The DCM signs the Notice to Proceed.

9. If hand-delivering the NTP, the CM prepares a transmittal indicating the NTP was hand-delivered with a receipt line for the Contractors signature. The CM gives the Front Desk a copy of the NTP, and DCC a copy of the NTP and transmittal with the Contractors signature.



10. The Font Desk distributes the copies. If original NTP is not hand-delivered, the Front Desk mails the Notice to Proceed and distributes one copy to DCC.

11. The DCC stamps, indexes, scans, enters into Contract Manager, and files a copy in the project file.

E. REFERENCE

1. General Provision 5.02 (1991).

2. Special Provision Time of Completion and Liquidated Damages.

F. EXHIBITS

1. Notice to Proceed Checklist

2. Notice to Proceed Template

3. Notice to Proceed Sample



Exhibit 1: Notice to Proceed Checklist



Exhibit 2: Notice to Proceed Template



Exhibit 3: Notice to Proceed Sample

2.5.17 Change Management

CMD Procedures Manual Page 1 of 73 2.5.17 - VER 02

2.5.17 CHANGE MANAGEMENT

A change, as the term is used in this Section, is defined as any change in the contract requirements. A change occurs when additions, revisions, and/or deletions to contract requirements are made. A change may not necessarily result in additional time or money. All changes, including changes that result in no additional time or money, must be approved through an appropriate contract change authorization.

The Construction Management Divisions objectives in managing change are the following:

Preserve the original design intent

Respond in a timely manner so as to avoid unnecessarily delaying the work

Maintain accountability for changes to the contract

Maintain proper documentation to ensure transparency and to facilitate audit

Ensure appropriate personnel and management are involved in the evaluation and decision process

Maintain control of construction budgets

Provide equitable and fair adjustments to the contractor for cost and schedule impact

The Change Management Section is divided into the following sub-sections for easy reference:

2.5.17.1 CHANGE MANAGEMENT OVERVIEW ............................................................. 3

2.5.17.2 PORT INITIATED CHANGE ....................................................................... 12

2.5.17.3 CONTRACTOR NOTICE OF CHANGE ........................................................... 14

2.5.17.4 VALUE ENGINEERING CHANGE (UNDER DEVELOPMENT) ................................. 16

2.5.17.5 REQUEST FOR PROPOSAL (RFP) AND NEGOTIATIONS .................................... 17

2.5.17.6 WORK AUTHORIZATION TASK ORDER (WATO) ............................................ 22

2.5.17.7 CONTRACTOR PENDING CHANGE ORDER (CPCO) .......................................... 29

2.5.17.8 CLAIMS DEEMED NO MERIT ................................................................. 40

2.5.17.9 CHANGE ORDER .................................................................................. 44

2.5.17.10 CONTRACT AMENDMENT (UNDER DEVELOPMENT) ........................................ 62

2.5.17.11 BOARD AUTHORIZATION ........................................................................ 64

2.5.17.12 TIME AND MATERIAL TRACKING .............................................................. 67

2.5.17 Change Management


DOCUMENT APPROVAL:

REVISION HISTORY:


Updated Board of Harbor Commissioners

Approval Procedures

Updated Role of the Ports Contract

Compliance Section

Deleted Delay Costs Paragraph

Completed RFP Negotiations Section

Completed Time and Material Compensation

Section

Incorporated use of CPMIS (Construction

Project Management Information System) to

manual, removed references to Contract

Manager

Added procedures for change orders resulting

in a contract amendment

Made minor clarifications to Additive Change Order items, Unilateral Change Order and Home-Office overhead text

Addressed minor typographical and formatting

errors

2.5.17.1 Change Management Change Management Overview


2.5.17.1 CHANGE MANAGEMENT OVERVIEW

A. Change Management Policy Overview

All changes to the contract require a change order (CO), even if the change results in no additional cost or time.

A Contractor Pending Change Order (CPCO) may be issued, subject to the approval of the Director of Construction Management (DCM), to provide the written authorization to proceed with a change, so long as it is within the Executive Directors authority limit (see CPCO procedure). However, CPCOs must be incorporated into a formal Change Order in order to pay the Contractor for the work.

On limited occasions and when included in the contract documents, some contracts include Allowance and/or Contingency bid items for specific types of changes as defined in the contract. Change work covered under an Allowance or Contingency bid item must be authorized by a Work Authorization Task Order (WATO) (see WATO procedure). Because Allowance and Contingency bid items are included in the contract price, WATOs can be paid on the monthly contractor invoice.

Whenever possible, it is preferable to obtain a lump sum cost proposal, evaluate the proposal merit including analysis of time and schedule impact, and negotiate a lump sum cost proposal and an agreed upon time impact before the changed work is started. If the work must proceed immediately on a time and material, not-to-exceed basis, the rationale shall be documented and the agreement of final costs resolved with the contractor prior to close out of the CPCO/CO.

A close-out change order is issued at the end of the project to balance the contract unit price bid item quantities , unused allowance and contingency bid items, unused or excess CPCO authorization amounts, and unused or excess estimated amounts previously issued in Change Orders, with the actual quantities and amounts utilized on the project.

Resolution and final costs for work completed on a time and material basis shall occur upon completion of the work and should not be reserved for the time of executing the close-out change order. Cumulative change orders in excess of 25% of the original contract amount require a supplemental agreement (Amendment), which needs to be approved by the Board of Harbor Commissioners if the revised contract amount exceeds $100,000.

Reference General Conditions Article 7 Changes in the Work, and other applicable Special or Technical Provisions for specific contract requirements.

The CM shall immediately notify the Director of Construction Management and CM Supervisor of a potential change order.



B. Roles and Responsibilities

Construction Management Division:

1. Administrative Support Section: Update the Purchase Order to reflect approved Change Orders.

2. Inspection Section: Notify CM of issues or potential changes. Provide QA inspection of changed work. Track Time & Material changes in the field. Ensure changes are reflected on the red-line drawings.

3. Construction Management Section: Change Management process owner. Evaluate merit of change order requests and claims, and analyze cost and time impacts to the contract. Negotiate with the Contractor subject to authorization by the Director. Prepare change management documents (RFP, CPCO, WATO, Change Order). Prepare independent cost estimates and assessment of potential schedule impact of extra work. Track WATO authorizations and expenditures to ensure the Allowance and Contingency bid item amounts are not exceeded. Track change order authorizations and expenditures to ensure the Executive Director authority is not exceeded. Prepare Board of Harbor Commissioners memos requesting authorization for change. Keep project team members and CMD management informed of issues and potential changes.

4. Director of Construction Management: Authorize WATOs up to the Contract bid item amounts. Authorize CPCOs up to the delegated Executive Director Authority amount. Report to Bureau Management and Executive Management on potential and pending changes. Present Change Order requests to the Engineering and Environmental Committee and the Board of Harbor Commissioners.

5. Front Office: Track the routing of Change Orders and BHC memos. Copy and distribute.

Other Bureaus/Divisions:

1. Program Management Division: Authorize discretionary Owner Initiated Changes. Monitor performance of the design consultant relative to Change Management. Review and initial Change Orders. Supplement the Capital Work Order to fund Change Orders as necessary.

2. SBE Office: Review SBE/VSBE participation in Change Orders where appropriate.

3. Risk Management Division: Review insurance requirements for Contract Amendments, and ensure insurance is maintained for contract time extensions and through the acceptance of the contract.

4. Engineering & Environmental Committee: Review change requests, CWO supplements, and Budget revisions submitted by POLB staff and make recommendations to the Board of Harbor Commissioners.



5. Board of Harbor Commissioners: Approve cumulative changes over $100,000 (or an amount previously authorized by the Board). Ratify Executive Director Change Orders and restore the Executive Director authority to $100,000.

6. Contract Compliance Section: Monitor change order and contract amendment activity. Review proposed revisions to change management procedures. Responsible for performing periodic audits including project documentation and change management activity.

Other City Departments:

1. City Attorney: Prepare Supplemental Agreements (as necessary). Advise CMD as requested regarding the law and interpretation of the contract regarding changes and/or claims. Resolve claims through litigation (if necessary).

2. City Auditor: Receives a copy of Change Orders and conducts an independent review and audit.

C. Change Authority

The Executive Director (ED) has the authority to execute change orders for a construction contract up to a cumulative total of $100,000, exclusive of credits. This authority covers multiple change orders so long as their total is less than $100,000. If the sum of the change orders exceeds $100,000, staff must request the Board of Harbor Commissioners for additional change order authority.

The Executive Director change order authority is delegated to the Director of Construction Management for the purposes of issuing approval to proceed with a change under a CPCO. It is essential that the CM track change order authorizations and expenditures to assure the Executive Director authority is not exceeded.

The Director of Construction management may authorize WATOs up to the respective Contract bid item amounts.

D. Change Categories

Each Change item must be categorized by a Reason Code. At the end of the project, the CM shall summarize all change order items by the reason code in the Contract Closeout Data Sheet. The Reason Codes are as follows:

(1) Owner Enhancement Changes generated by either the Port or the Tenant/system owner changing their mind and requesting something different. Examples include:

a. Owner-Improvement The Port identified a better product than originally specified.

b. Value Engineering The Contractor proposes an alternative product which results in a reduced cost that is shared by both parties.



c. Directed Suspension of Work The Port requires the Contractor to suspend all or part of the work (see CMDPM 2.5.11) for the benefit of the Port.

d. Directed Acceleration The Port requires the Contractor to speed up work in order to meet an earlier completion date or mitigate a Port-caused delay.

e. Termination for Convenience (see CMDPM 2.5.21) The Port deletes all or a portion of the work for the convenience of the Port.

f. Termination for Default or Cause (see CMDPM 2.5.21) The Port determines the Contractors performance is deficient, and the Contractor fails to cure the performance after being notified of the deficiency. The Port may either terminate the contract or call on the bonding company to fulfill the obligation under the performance bond.

(2) Code Compliance Changes generated by an untimely ruling by the Building or Fire Departments or other regulatory agencies. These may simply be a different interpretation of the code by the field inspector than the plan checker.

(3) Unforeseen Condition Changes generated by the discovery of existing conditions which are not foreseeable, such as subsurface obstructions, unidentified or miss-located utility lines, etc. There are two main types of Unforeseen Conditions:

a. Type 1 Subsurface or latent (hidden) physical conditions at the site differing materially (substantially or significantly) from those indicated in the contract documents. Examples include rock, buried utilities, asbestos, or subsurface water where none is indicated in the plans and specifications. Be aware that limiting the Contractors access to the site during the bid period (i.e. for security reasons) may hinder the Contractors ability to perform adequate pre-bid site investigations, which could lead to more claims for hidden conditions from the Contractor.

b. Type 2 Unknown physical conditions at the site of an unusual nature, differing materially from those ordinarily encountered in work of the character provided for in the contract. Type 2 differing site conditions are conditions so unusual or so unpredictable that the Contractor could not have reasonably foreseen their existence at the time of bidding.

i. Subsurface hazardous or toxic waste materials in a previously undisturbed area

ii. Soft ground beneath previously undisturbed dry soils

iii. Buried construction debris in an area where no previous construction was known



(4) Design Clarification (with unavoidable costs) Changes generated by design clarifications for which extra cost would NOT have been avoided if clarifications had been included in the bid. The additional cost for the change is just the difference between the originally specified item and the new item, and does not involve damages for delay. These changes are the direct result of a defect in the contract documents. Examples of contract document defects include:

a. The contract documents specify the wrong item. These changes typically arise from responses to RFIs or comments on a Submittal.

b. The contract documents do not disclose relevant information. These changes typically arise from responses to RFIs. However, General Condition Article 1 does not provide for additional compensation for an omission if the Contractor could have reasonably known that the work was necessary to fully and completely finish the project according to the true intent and meaning of the specifications and drawings. For example, door hinges were not explicitly called out or specified, however they are necessary to install the door, which is defined as the finished product of the contract.

c. The contract documents include an owner-interpretation clause as the acceptance criteria. The Contractor is required to perform work in accordance with the Ports representatives interpretation, however it is not possible for the Contractor to know at the time of bidding how the Port would interpret.

(5) Errors and Omissions Changes generated by design clarifications for which extra costs might have been avoided if the clarifications had been provided in the bid document. These changes are the result of the same type of contract document defects as Category 4 above, however they result in additional delay damages or impact costs because the information was not included in the original contract documents.

(6) Quantity Adjustment Changes in the contract quantities (specified as approximately) for unit priced bid items to reflect actual field measured final quantities.

(7) Unused Allowance/Contingency Credit for the unused balance of the contract specified allowance or contingency bid items.

E. Contract Duration Changes

Each Change item must be evaluated for its effect and impact on the construction schedule and critical path construction activities. An evaluation should be performed of the cost associated with the time adjustment for interruption of schedules, extended overhead costs, delay, and all impact, ripple effect or cumulative impact on all other work.



F. Claims Avoidance and Mitigation

1. Identify project risks and ways to mitigate those risks before construction starts (preferably during the design phase).

2. Read and understand the contract documents.

3. Employ Partnering methods (informal or formal) and maintain positive field relationships. Resolve issues in a timely manner at the lowest level possible and escalate in a timely manner if agreement cannot be reached, or the issue is outside your authority to resolve.

4. Maintain thorough and accurate project records and documentation.

5. Ensure monthly schedule updates are accurate, and look-ahead schedules are tied to the project schedule activities.

6. Ensure claim or change notice is in writing.

7. Respond quickly to claims. Reference initial change notice, and cite contract, drawing, and specification sections to support position.

8. Acknowledge and take responsibility for owner-caused changes. Dont direct the Contractor to perform changed work and wait for the Contractor to make a claim if you already know it constitutes a change.

9. Log the claim and notify appropriate supervisors. Discuss entitlement with the DCM before acknowledging merit for claims without clear merit.

10. Identify and evaluate the contract language that relates to the claim.

11. Document issues objectively and contemporaneously.

12. Set-up files for each claim and assemble the relevant project records such as correspondence, meeting minutes, RFIs, schedules, daily reports, and other documents.

13. Identify how the claim has (or will) affect the remainder of the project and the project schedule and evaluate re-sequencing options.

G. Analysis of a Claim

1. Determine if notice was submitted in writing within the contractually required timeframe.

2. Ensure description of change is thorough, accurate, and includes the following information:

a. Who or What caused the change or claim (i.e. Designer, Building Inspector, Unforeseen Condition, etc). Use names, not position titles.



b. When the change or claim occurred (date and time) and when the notice was given

c. How did the change or claim occur (i.e. response to RFI No. 14)

d. Under what circumstance (i.e. during the Building Inspectors inspection)

e. Location (use sketch on contract drawing or request a survey as appropriate)

3. Examine information provided in the contract documents and determine if contract documents are defective.

4. For Type 2 Unforeseen Conditions, obtain the Contractors description of the conditions they anticipated in their bid and why. Determine if difference between conditions is material.

5. For Type 2 Unforeseen Conditions, determine if the alleged changed condition is inherent in this type of work and therefore should have been anticipated by the Contractor and included in their bid.

6. If Contractor is claiming additional work due to an omission on the drawings and specifications, determine if the alleged additional material or work is necessary to fully and completely finish the project according to the true intent and meaning of the specifications and drawings, and therefore should have been included in their bid (see General Condition Article 1).

7. Examine field conditions and take pictures.

8. Perform independent assessment of conditions, as necessary (i.e. third-party test lab).

9. Obtain Designers response to claim if claim involves an alleged design defect.

10. Ensure the documentation demonstrating impact to the contract time is thorough and accurate through the following:

a. Determine what activities were (or will) be impacted

b. Determine if the end date of the project, or contractual milestone, has been (or will be) impacted. If so, continue on to Step c.

c. Determine if the Contractor can mitigate the delay through re-sequencing. (General Condition Article 8). If not, or re-sequencing was unsuccessful, continue on to Step d.

d. Review schedule and determine if there was any concurrent contractor-caused delays and/or excusable delays (e.g. rain). The portion of the delay that is concurrent is non-compensable.



e. Determine net compensable Port-caused delay, which is the total delay that extends the contract milestone, less any concurrent delay by the Contractor and/or weather.

11. Ensure the documentation demonstrating impact to cost is thorough and accurate:

a. Direct Costs costs incurred as a direct result of the change.

i. Labor (with all burdens) should match Prevailing Wage

ii. Materials receipts required

iii. Equipment rates should not exceed local rental rates per General Condition Article 7.4.1 (c).

iv. Remobilization

v. Storage

vi. Bond and insurance costs per General Conditions

vii. Markups for overhead and profit per General Conditions

viii. Subcontractor costs (with same components as above)

b. Indirect Costs (Overhead) Costs to support the project which are not allocable to just one specific item of direct work. Overhead costs are generally considered to be included in the markups on Direct Costs for change orders not involving an extension of contract time. It may be appropriate to include overhead as a separate item for a Port-caused delay affecting the critical path of the project (i.e. site unavailable, permits delayed, etc). Categories of extended overhead which may be involved are as follows:

i. Field Overhead

1.) Project management staff 2.) Superintendents 3.) Project office 4.) Temporary utilities and security 5.) Additional or extended storage costs 6.) Communications 7.) Office equipment

ii. Home-Office Overhead Contractor is generally not entitled to Home Office Overhead unless the work is suspended by the Port and the Contractor submits a request for these costs and merit is approved by the Port. Consult DCM if claimed.

c. Impact/Disruption Costs The Contractor must prove that the Port caused the Contractor to deviate from the planned approach to performing the work causing the work to be performed in a less productive manner. Methods for establishing impact costs are not precise, and there is no single accepted,



definitive method for all projects or situations. A common method for calculating lost productivity costs is the measured mile. The measured mile involves calculating the production rate during un-impacted period. Total Cost is not an acceptable method to calculate impact costs. Impacts include the following:

i. Idle equipment

ii. Idle personnel

iii. Escalation costs for labor, equipment, and materials

iv. Inefficiency Stop/start, demobilization/remobilization, lost productivity, re-sequencing, disruption

v. Crowding additional workers on a crew sharing the same number of resources as before (equipment, tools, supervision, work-space, etc).

vi. Stacking of Trades crews work concurrently instead of sequentially. Each crew disrupts the other and work may be installed out of sequence.

d. Obtain an independent estimate of costs for items over $10,000 when possible and as appropriate

H. Method of Compensation

1. Lump Sum (negotiated or unilateral)

2. Unit Price (Bid Item additional quantity with Not-to-Exceed amount)

3. Unit Price (negotiated with Not-to-Exceed amount)

4. Time and Materials (with Not-to-Exceed amount)

I. References

1. General Condition Article 7

2. Special Provisions Changes Initiated by the City

3. Special Provisions Unforeseen Conditions

4. Public Contract Codes: 7102

5. Contracting Procedures Manual (Version 0.2)

2.5.17.2 Change Management Port Initiated Change


2.5.17.2 PORT INITIATED CHANGE

A. Flowchart (see page 13)

Change Management POLB Initiated Change

Const

ruct

ion M

anagem

ent

Div

isio

nPM

Div

isio

n

START

2.5.17.2

POLB Initiated Changes

DCC IN(See CMDPM

2.2.2)

Enter info. into CPMIS

Notify CMD in writing of

requested change

or

Is amount w/in DCMs CPCO

authority?

NO

Discuss w/DCMConsider alternatives, e.g. On-call contracts, not doing the change,

etc.

Is immediate approval

required to avoid time impacts?

Can it be paid for by a

Contingency Bid Item?

CM & Contractor agree on cost/time?


authority?

YES

YES

NO



NO

YESNO

YES

Determine NTE amount

Go to RFP & negotiations(See CMDPM

2.5.17.5)

YES

YES

NO

NO

Send quote and/or CM estimate to PM

Proceed?

YES

END

Close item in CPMIS

Notify Contractor Port will not proceed with

proposed change

NO

Request the Designer prepare a

cost estimate, if appropriate

Send cost estimate to CM to assist in

negotiations

Are there potentially serious

impacts?

NO

YES

Discuss with DCM

Is work discretionary and/or

exceeds cost estimate?

NO

Issue T&M WATO with a NTE amount(See CMDPM

2.5.17.6)

Issue T&M CPCO with a NTE amount(See CMDPM

2.5.17.7)

Discuss with DCM

Proceed?YES

NO

YESProceed?

NO

Issue CO with a NTE amount(See CMDPM

2.5.17.9)

Discuss recommendation not to Proceed

with change with PM Division

A

A

YES

Notify PM Division of recommended

alternative

Issue LS or Unit Price

CPCO (See CMDPM

2.5.17.7)


WATO (See CMDPM

2.5.17.6)

Track Time & Materials

(See CMDPM 2.5.17.12)


(See CMDPM 2.5.17.12)

Issue CO (See CMDPM

2.5.17.9)

Issue credit CO for any remaining

balance (See CMDPM

2.5.17.9)


(See CMDPM 2.5.17.12)

Contractor & POLB agree on final cost

& close WATOA

A

A

Change Management

or

= Sub-Process (see reference for detailed description of process steps)

A

CPCO = Contractor Pending Change OrderWATO = Work Authorization Task OrderCO = Change OrderRFP = Request for ProposalT&M = Time and Materials

= Expedition / Computer Process = Alternate paths= Decision

LEGEND

= On-Page Connector

CM = Construction ManagerCMDPM = Construction Management Division Procedures ManualCPMIS = Construction Project Management Information SystemDCC IN = Document Control Center - Incoming CorrespondenceDCM = Director of Construction ManagementNTE = Not-to-Exceed

= Process

Issue CO (See CMDPM

2.5.17.9)

CMD Procedures Manual Page 13 of 73 2.5.17 VER 02

2.5.17.3 Change Management Contractor Notice of Change


2.5.17.3 CONTRACTOR NOTICE OF CHANGE

A. Flowchart (see page 15)

Change Management - Contractor Notice of Change / Change Order Request

Const

ruct

ion M

anagem

ent

Div

isio

nPM

Div

isio

n

START

2.5.17.3

Contractor Notice of Change / Change Order Request

Contractor notifies Port in writing of a potential changed condition or delay

DCC IN(See CMDPM

2.2.2)

YESDoes the alleged change have merit?

NO

Is immediate approval required to

avoid / mitigate time or cost impacts?

YES

NO



YES

Is amount w/in DCMs CPCO authority?

NO

NO

YES

Issue RFP & conduct

negotiations(See CMDPM

2.5.17.5)

YES

Enter info. in Expedition

Change Management

Can the Port & Contractor come to

an agreement?

NO



YES YES


authority?

NO

NO

END

or

Discuss merits of change with Designer, CM

Supervisor and/or DCM

(as necessary)

Send letter to Contractor denying

claim based on lack of merit (See CMDPM

2.5.17.8)

Issue CO with a NTE amount(See CMDPM

2.5.17-L)

Issue T&M CPCO with a NTE amount(See CMDPM

2.5.17.7)

Issue T&M WATO with a NTE amount(See CMDPM

2.5.17.6)

YESShould the

work be done under the On-Call Contract? (Discuss w/DCM)

NO

Issue RACS and Coordinate work

with On-Call Contractor

Issue CO (See CMDPM

2.5.17.9)


WATO (See CMDPM

2.5.17.6)


CPCO (See CMDPM

2.5.17.7)

Can it be paid for under a Contingency Bid

Item?

NO

YES

Send authorization to Proceed under a Contingency Bid

Item(See CMDPM

2.5.17.6)

Determine NTE amount

Proceed with Unilateral Change

based on CM estimate (See

CMDPM 2.5.17.9)

Notify CM Supervisor and

DCM of Potential Change

A A Track Time & Materials

(See CMDPM 2.5.17.12)


(See CMDPM 2.5.17.12)

Contractor & POLB agree on final cost

& close WATO

Issue CO (See CMDPM

2.5.17.9)


(See CMDPM 2.5.17.12)

Issue credit CO for any remaining

balance (See CMDPM

2.5.17.9)

Change Management

= Sub-Process (see reference for detailed description of process steps)

= Decision

= Process

or = Alternate pathsCPCO = Contractor Pending Change OrderWATO = Work Authorization Task OrderCO = Change OrderRFP = Request for ProposalT&M = Time and Materials

LEGEND

= Expedition / Computer Process

= On-Page ConnectorA

CM = Construction ManagerCMDPM = Construction Management Division Procedures ManualCPMIS = Construction Project Management Information SystemDCC IN = Document Control Center - Incoming CorrespondenceDCM = Director of Construction ManagementNTE = Not-to-Exceed

Page 15 of 73 2.5.17 VER 02CMD Procedures Manual

2.5.17.4 Change Management Value Engineering Change


2.5.17.4 VALUE ENGINEERING CHANGE (under development)

A. Flowchart (under development)

2.5.17.5 Change Management Request for Proposal


2.5.17.5 REQUEST FOR PROPOSAL (RFP) AND NEGOTIATIONS

A. Overview

For changed work that can be well defined, the full scope of work clearly identified, and is not time sensitive, it is preferable to obtain a lump sum proposal from the Contractor. In order to solicit a lump sum price, a Request for Proposal (RFP) is submitted to the Contractor along with revised drawings, sketches, and/or detailed work description. Upon receipt of the Contractors proposal, an evaluation of the proposed cost is needed to verify the proposed cost includes the full scope of the change and that the proposed cost is reasonably close to the independent estimate. Items in the proposal that are significantly different than the independent estimate should be addressed and negotiated.

B. Flowchart (see page 21)

C. RFP Procedure

Note: A Request for Proposal to the Contractor is not, and cannot be used as, an authorization to proceed with

construction management procedure

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