Construction Administration & Construction Management

1 ICSC European Retail Property SchoolConstruction Administration & Construction ManagementJuly 2014 Berlin, Germany LecturerIvana Maksimovi CRX, CDPC onfluence Property ManagementBelgrade, SerbiaConstruction Administration AGENDA DEFINITIONS AND ROLES PRE-QUALIFICATION AND SELECTION OF CONTRACTOR Construction AGREEMENTS Construction PROCESSC onstruction Administration DEFINITIONSC onstructionis the process of preparing and forming buildings andbuilding with planning, design, andfinancing and continues until the structure is ready for managementor Construction project Management isthe overall planning, coordination, and control of a is aimed at meeting a client's requirement in order toproduce a functionally and financially viable Administration DEFINITIONSBUDGETSCHEDULEQUALITYC onstruction Administration DEFINITIONS Owner s Rep / project ManagerCompany or person planning, organizing and managing the process of design and Construction Program ManagerPerson who manages a retail store rollout program.

2 Planning organizing and managing design and Construction Administration RELATIONSC onstruction Administration OWNERI nvestorOWNER S REPRESENTATIVEP roject ManagerDESIGN PROFESSIONALA rchitectEngineerCONSTRUCTIONC onstruction Manager (CM)General Contractor (GC) DEFINITIONS Construction ManagerAt Risk ( Construction Manager as Contractor)AgencyThe difference is just in level of risk assumed General ContractorCompany appointed to execute Construction works and deliver the building as per agreed cost, schedule and quality Construction Administration RELATIONSC onstruction Administration OWNERI nvestorCONSTRUCTION MANAGER at riskSUBCONTRACTOR 1 SUBCONTRACTOR 2 SUBCONTRACTOR 3 Construction Administration RELATIONSOWNERI nvestorCONSTRUCTION MANAGER as agencySUBCONTRACTOR 1 SUBCONTRACTOR 2 SUBCONTRACTOR 3 What would be the difference between Construction Manager at risk and General Contractor?

3 Construction Administration PREQUALIFICATIONS AND SELECTIONA. Pre-Qualification Questions Company People Legal Track Record Methods Bidding the Job Negotiated AgreementConstruction Administration PREQUALIFICATIONS AND SELECTIONC onsiderations Relevant experience, references, general reputation Financial stability of company / credit reports, bonding capability Schedule control Quality of performed works on representative projects Prior experience with contractor, strategic relationship LitigationsConstruction Administration PREQUALIFICATIONS AND SELECTIONC ompany Does the size of the company match the size of the project ?

4 What is the safety record of a company?EMR / experience modification rate<1 more safe>1 less safePersonnel who will be working on project Do they have experience on this particular job? What do former client say about superintendent? What is a current team workload? Construction Administration PREQUALIFICATIONS AND SELECTIONP rice Best possible work at the lowest possible price Pay a little more for company with grater experience Extremely high and low bids should be eliminated quicklyConstruction Administration SELECTION METHODS Depends on MAIN project OBJECTIVE Budget -Bidding the job after design is completed Schedule-Negotiate agreement to involve contractor early Quality -CombinationConstruction Administration SELECTION METHODSTO BID OR NOT TO BID ?

5 Type of Job project Delivery Method Size of Job Profit Potential Client Relationship Resource Availability Competition Bonding Issues Quality of Owner Quality of ArchitectConstruction Administration SELECTION METHODS BIDDING THE JOB Primarily based on price Clear design documentation Clear scope of work Most suitable for traditional design/bid/build project delivery method Requires longer schedule Lowest cost Open vs. Restricted bidders list Bid room atmosphereConstruction Administration SELECTION METHODS BIDDING THE JOB / PITFALLSC onstruction Administration SELECTION METHODS NEGOTIATED AGREEMENTThe contractor is selected in competitive negotiation based on.

6 The team Appropriate experience Understanding of the job Fee for preconstruction services General conditions costsConstruction Administration SELECTION METHODS NEGOTIATED AGREEMENTP reconstruction services budgeting, scheduling, system analysis, value engineeringShould be expressed in $ Construction Administration SELECTION METHODS NEGOTIATED AGREEMENTG eneral conditions are indirect costs generally related to contractors on-site staffing and creating Construction environment Price for on site personnel Field office establishment, equipment Temporary toilets Job safety officer Dumpsters General clean-up First aid equipment and fire extinguishers Small tools purchase.

7 Should be expressed in $ Construction Administration SELECTION METHODS NEGOTIATED AGREEMENTCost SummaryPreconstruction Services$General Conditions$Professional Fee%Mark-Up on Self-Performed Work%General Liability Insurance%Savings / SplitOwner / CMMark-Up on ChangesFor Subcontractors%For General Contractor%Performance Bond% Construction Administration REQUESTING PROPOSALSRFP = Request for proposal General information about Investor General information about the project itself Requested quality of work Requested form of proposal / documents to be provided Drawings and specifications Bill of Quantities Deadline for submitting proposalsConstruction Administration EVALUATING PROPOSALS Completeness of documentation submitted References Price comparisonConstruction Administration Construction Administration Contractor No 1 Contractor No 2 Contractor No 3 Contractor No 4 Contractor No 5 TOTAL939, 1,002, 1,057, 1,152, 1,288, 01.

8 DEMOLITION WORKS40, , , 51, 65, Demolition - Architectural28, , , 33, 55, Demolition - Water and Demolition - Mechanical10, , , 16, 8, Demolition - High 1, 1, Demolition - Low PREPARATION WORKS1, , , 3, 7, Construction WORKS22, , , 50, 41, Masonary works2, , , 5, 3, Concrete works3, , , 8, 5, Steel structure15, , , 35, 32, FACADE22, , , 21, 24, FINISHING WORKS292, , , 416, 506, Insulation15, , , 26, 44, Carpenter`s works23, , , 20, 31, Metal works33, , , 60, 67, Ceramic flooring63, , , 93, 99, Other flooring10, , , 12, 13, Gypsum works95, , , 128, 147, Painting works8, , , 15, 24, Miscelaneous43, , , 58, 78, WATER AND SEWAGE INSTALLATIONS6, , , 10, 9, Water installations3, , , 5, 5, Sanitary equipment2, , , 4, 4, MECHANICAL INSTALLATIONS348, , , 365, 396, HVAC178, , , 180, 221, Radiator heating and air curtains13, , , 16, 8, VRF124, , , 112, 120, Split system1, , , 1, 2, Remote control, automatics24, , , 33, 36, Preparation and finishing works4, , , 21, 6, ELECTRICAL INSTALLATIONS99, , , 122, 123, Distribution boards9, , , 11, 12, Electrical supply instalations10, , , 12, 13, Sockets29, , , 34, 32, Lights47.

9 , , 61, 63, Compensation1, , , 2, 1, Finishing electrical LOW VOLTAGE23, , , 28, 29, Telephone and networks12, , , 11, , Sound system3, , , 7, 3, Access control3, , , 5, 5, Anty tefth Video survailance1, , , 1, 2, Cable trays2, , , 3, 4, FIRE DETECTION21, , , 17, 23, ELEVATORS44, , , 48, 41, FURNITURE AND EQUIPMENT14, , , 16, 18, , ,002, ,057, 1,152, 1,288, OF Construction CONTRACTS CONTRACT ELEMENTS The parties The work (described by plans and specs) The price (including payment conditions) ScheduleConstruction Administration TYPES OF Construction CONTRACTS Stipulated lump sum contract Design/build Unit price Construction Management at risk Construction Management as agencyConstruction Administration TYPES OF Construction CONTRACTS1.

10 Stipulated lump sum contract contractor is performing works for fixed lump sum well defined quality and scope of works risk for extras/savings is shared between contractor and owner no additional cost, known priceConstruction Administration TYPES OF Construction CONTRACTS2. Design/build agreement designer works for Construction entity no issues with constructability higher risk for owner s budgetConstruction Administration TYPES OF Construction CONTRACTS3. Unit price works are contracted as per unit price for material and labor when scope of work is not precisely defined when expecting significant changes fair for both parties total price is not known until the end of constructionConstruction Administration TYPES OF Construction CONTRACTS4.