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Roles & Responsibilities in Construction Management
Ben Shuman, PESenior Environmental EngineerUSDA, Rural Utilities Service
(202) [email protected]
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First Let’s Talk AboutRoles & Responsibilities
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Partners• Owner• Funding Agencies• Consulting Engineer• Construction Contractor
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Owner• What are the owner’s responsibilities?
– Need to be fully informed– Make final decisions on planning– Hire the engineer and contractor– Pay on time!– Resolve disputes
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Consulting Engineer
• Responsibilities before award:– PER (which defines scope)– Preliminary Design– Plans and specifications– Coordinates and assists in bidding/award
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Engineer’s Role (continued)• After award:
– Owner’s representative– Provide Resident Project Representation– Evaluate shop drawings– Visit site and observe construction– Reject defective work, evaluate change orders,
and pay estimates– Determine final quantities for unit prices
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Visits to Site by Engineer
• Visit site as needed to observe as an experienced/qualified design professional;
• Review progress and quality of work for benefit of owner;
• Determine in general if work is proceeding per contract documents
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Engineer’s Role (continued 2)
• Evaluate substitutes and “or equals”• Make clarifications and provide initial
decisions on disagreements• Determine substantial completion• Write punch list• Recommend Final Payment to the Owner
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Limitations on Engineer’s Authority (and RPR)
• Will not supervise, direct, control, have authority over or be responsible for:– means, methods, techniques, sequences,
procedures of construction;– safety precautions or programs;
• Acts or omissions of contractor, subs, or suppliers;
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Limitations on Engineer’s Authority (continued)
• Review of pay requests, documentation, operating instructions, schedules, guarantees, bonds, inspections, tests, approvals is:– only to determine generally that content
complies.
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Brief explanation of RD
RD Undersecretary
RUS RHS RBS 47 State Offices
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RD Undersecretary
State Director
State Office
Area Offices
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Rural Development
• Program Director• State Engineer• State Environmental Coordinator• Area Director• Area Specialist
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Specialist• Provide information about the program• Main Point Of Contact• Performs some review of PER
– completeness – financial info
• Construction management• Loan servicing
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State Engineer
• 1/3 of job is engineering (the easy part)• 2/3 is people (the hard part)
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Here’s the short story...
• Reduce risk to the Agency and taxpayer• Provide an opinion to the Management
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In Prioritized Order...
• PER• Engineering Agreement• Review plans and specifications• Execute construction contracts• Construction management
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Contractor
• Build it per plans and specs– On time– Within budget– Absolute obligation to perform and complete
the work in accordance with contract documents
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Contractor’s Responsibilities
• Supervise, inspect, and direct the work• Responsible for site, materials, equipment,
and schedule• Responsible for all subs and suppliers• Responsible for site safety• Maintains record documents at site
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What are the typical steps in a project?
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From Cradle to Grave• Need for Project• Working with a Technical Assistance Provider• Selecting an engineer• Application• Design• Bidding and award• Construction • Operations (loan servicing)
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Selecting an Engineering Firm
• Owner develops Statement of Work (SOW)• Request For Qualifications (RFQ) process• Owner makes an informed decision
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Statement of Work
• What is a SOW• How to develop a good SOW
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Request for Qualifications
• What is an RFQ and its purpose• How to select the best engineering firm
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Deliverables • What are the Engineering deliverables?
– PER– 60% design– 100% design– Construction services– warranty inspection
• What are the due dates for the deliverables?
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Bid & Award of Contract
• RD’s requirements– Open and free competition– Use of standard contracts unless approved
otherwise– No conflict of interest
• Competitive bidding– Low bid vs “Best Value”
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Construction Management
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Construction Management
• Why do we even do it?– Protect the interest of the owner– Protect the interest of the taxpayer
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Components• Pre-construction Conference• Monthly construction meetings (Partial Payments)• Change orders• Engineer Invoices• Prefinal Inspection
– Punch List• Final inspections• Warranty Inspection
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Pre-construction Meeting• Led by consulting engineer• All parties involved attend• RD has an outline of items to discuss• Clearly describe expectations for project –
timelines, payments, change orders, etc.• Written record of meeting signed by all
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Monthly Construction Mtgs• Led by consulting engineer• RD Specialist sometimes State Engineer or
Construction Analyst also• Updated progress schedule from contractor
if needed• Payment requests• The dreaded change order
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Change Orders• Sometimes generated by contractor• Recommended by consulting engineer
– May involve additional design work• RD
– Confirms availability of funds– Scans for eligible purpose– Approval
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Pay Requests– Quantities of work completed (unit prices)
• Or based on schedule of values (lump sum)– Materials stored on or near site– RD forms signed by Engineer & Owner– RD Specialist confirms eligibility & funds– Compare % complete with % time complete
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Roles of the Inspector• The inspector only does two things
– Observe & report• Know the contract• Document in a daily log record book
– Take photos• Safety
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Safety• Know the safety plan• Inspector should let appropriate people know
immediately of safety concerns or violations
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What Inspector Should Not Do• Do not direct the contractor • Do not act as engineer• Do not act as owner• Know what authority you have (almost none)
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Costs of Inspection • $50 - $100 per hour ($8K-$18K per month)• 4-7% of estimated construction cost• If contractor goes beyond allowed time,
liquidated damages should pay for additional inspection costs
• Budget enough money up front – should not use contingency funds
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Common Problems• Inspector not on site• Inspector directs contractor• Inspector makes deals
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Inspections – Prefinal and Final• Coordinate with Substantial Completion
– Start of warranty period• Critical players
– Owner/operator– Consulting Engineer/Resident Inspector– Contractor– Funding agencies
• Final inspection confirms punch list completed– Triggers final payment
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Warranty Inspection• 11 months after substantial completion• RD State Engineer should attend• Good idea to talk to operator• Any concerns should be addressed in
writing to contractor• As-builts, O&M manuals
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Liquidated Damages
• Not a penalty• Should be enforced uniformly• Amounts established in advance
– Interest– Engineering/Inspection– Administrative costs– Other costs
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Contractor Default
• Follow contract terms & notice requirements• Check state laws that may apply• Allow surety reasonable time to respond• Notify state licensing agency and Treasury
Department if surety is unresponsive
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Servicing andOperation & Maintenance
• Run your system like a business• “Sustainable” systems
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“Take-Aways”• Know your roles & responsibilities• If you’re more than one year past start of
project and you haven’t gone to bid, it’s time to act
• Owner is responsible for the project• Contractor is responsible for meeting terms
of contract
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Questions?
Ben Shuman, PESenior Environmental Engineer
Rural Utilities Service202-720-1784