Table of Contents - MPGroup

1 Mission StatementThe Associated General Contractors of America, the American Subcontractors Association, and the Associated SpecialtyContractors have agreed to work together to develop, maintain and promote Guidelines for a Successful guidelines represent the joint efforts and approval of these organizations who will continue to addressindustry concerns as the need arises. A. Introduction & Overview1. General Contractor-Subcontractor Owner s Ability to Pay ..53. Contractor s Payment Rights, Obligation, and Design Liaison Bidding Processes1. Bidding Project Scheduling, Delays, and Liquidated Damages ..133. "Scope" Bidding for Private Bid Shopping & Bid Pre-Construction Planning1. Pre-construction Reserved4.

2 Site Logistics ..24D. Project Execution1. Environmental Health & Safetya. Project Safety and Unforeseen Environmental Problems in For A Successful Construction ProjectTable of ContentsGuidelines for a Successful Construction Project. Copyright 2003, The Associated General Contractors of America/AmericanSubcontractors Association, Specialty to use this pdf:Clicking on an entry in the Table of Contents will take you directly to that Guideline. In a Guideline, clicking on areference to another Guideline will take you to the referenced Successful Project Execution (cont.)2. Coordinationa. Project Contract Administrationa. Avoidance and Resolution of Construction Disputes ..32b. Benefits to the Owner of Effective Allocation, Delegation, and Performance of General ConditionsResponsibilities.

3 36c. Consequential Procedures for Change Charges for Non-contracted Construction Prompt Payment ..43g. Guideline for Payment for Stored Materials and Purchase of Materials or Equipment by Overtime, Construction Costs and Reservedk. Quality Assurance/Quality Controla. Total Quality Project Reserved5. Project Closeouta. Project Punch List Procedures ..57E. Appendix - Forms1. Sub bid Subcontractor s Application for Work Authorization Change Proposal/Order of ContentsGuidelines for a Successful Construction Project. Copyright 2003, The Associated General Contractors of America/AmericanSubcontractors Association, Specialty primary objectives of every general contractor andsubcontractor are to successfully deliver to the owner thespecified project safely, on time, at the contract price andachieve a reasonable profit in return for performance ofits work.

4 Regardless of personal pride, business philoso-phy, contractual authority or years of experience, no gen-eral contractor can deliver a project successfully withoutthe cooperation of competent subcontractors. Similarly, no subcontractor, regardless of skill and experi-ence in its specialty, can perform its work successfullywithout the corresponding measure of cooperation andleadership of a competent general seek a business relationship on which they candepend. Usually, each wants to continue to do businesswith the other on future projects as well as those at , integrity, fairness, trust, respect, and responsibilitywill make the contractual relationship now and in thefuture possible, profitable and DocumentsA written contract document usually establishes theframework for the relationship between the general con-tractor and the subcontractor.

5 To foster cooperation, thesubcontract should be fair to both parties and non-adver-sarial. Experienced participants in the construction indus-try know that no architect/engineer can prepare a perfectset of documents, and that no general contractor or sub-contractor can perform perfectly. Likewise, contract doc-uments cannot detail every industry practice or anticipateevery crisis or situation that will arise at the will occur and miscommunications will general contractors and subcontractors solve theirproblems without resorting to litigation. Errors and omis-sions, when discovered and made known in a timely fash-ion, can generally be overcome with minimal damage toall concerned. Mistakes that are admitted and correctedimmediately are the least costly Culture, Trust, and TeamworkKey to successful construction relationships is mutualtrust which must be nurtured to develop a positive projectculture.

6 Keeping everyone on a project working togetherin a harmonious fashion, without unduly delaying ordamaging others, is a highly complex task requiring theutmost coordination, cooperation, communication, and sometimes compromise. As difficult as it may be, thisis what makes a project profitable and the constructionindustry rewarding (see Meetings).Each general contractor and subcontractor on a projectshould be regarded with equal respect. Each is an expertin its own field. Ethical conduct, regardless of contractu-al "rights" or ability to make another firm suffer, is essen-tial for golden rule, "Do unto others as youwould have others do unto you," is still the best guidelinein dealing with other individuals and should also assist architects, engineers andowners by advising them, when requested, on relativecosts of alternates while plans are being prepared so as toreduce the number of following guidelines, developed by the AssociatedGeneral Contractors of America, the AmericanSubcontractors Association, and the Associated SpecialtyContractors.

7 Provide suggestions for mutually profitableand ethical general contractor-subcontractor are arranged in the chronological order of the con-struction phase1. The general contractor should issue bid invitations tosubcontractors, in sufficient time for subcontractorsto review the project documents and prepare respon-sible and responsive bids(see BiddingProcedures).2. The general contractor should make the projectfinancing information available to subcontractorsbefore the deadline for subbids(see Owner sAbility to Pay).3. The general contractor should furnish any specialbid proposal forms required and make necessarybidding documents reasonably available to subcon-tractor bidders. General contractors receiving sub-contractor bids, as well as subcontractors on General Contractor-Subcontractor RelationsGuidelines for a Successful Construction Project.

8 Copyright 2003, The Associated General Contractors of America/AmericanSubcontractors Association, Specialty bids, should provide a convenient planroom or make documents available via the internetfor subcontractors use in preparing The general contractor should promptly make bul-letin and addenda information available to Each subcontractor should deliver to the generalcontractor, at least 24 hours before the bid hour, awritten bid without dollar amount, setting forth itsproposed scope, alternates, unit prices, addendaand/or bulletins to be included. The scope shouldreference specification divisions or sections andspecifically identify any omissions or Proposals should not be invited, accepted, or consid-ered from any subcontractor or supplier known to beunqualified to perform the proposed work or renderthe specified service, or from one who, for somereason, has no genuine possibility of being awardeda contract.

9 Bid period1. The subcontractor should submit its finalized biddollar amount and any necessary clarifications to thegeneral contractor at least four hours before the gen-eral contractor bid hour. The general contractorshould establish for all bidders a cutoff time forreceiving subcontractor bids, make it known, andadhere to Subcontractors should not quote on unapprovedsubstitutions, except as an The bid amount of one competitor should not bedivulged to another before the award of the subcon-tract or order, nor should it be used by the generalcontractor to secure a lower proposal from anotherbidder on that project(see Bid Shopping andBid Peddling). If a bid is so low in comparison withother bids as to suggest clearly an error, the generalcontractor should notify the subcontractor immedi-ately that its bid appears to be out of line.

10 The sub-contractor should either withdraw or stand on itsbid, but not modify Fair and bona fide competition is a fundamentalservice the industry brings to its customers. Any actor scheme to restrict or suppress free and fair com-petition by any method is a breach of faith and abetrayal of principles. Any false or malicious wordor act that would harm, or is intended to harm, thereputation of a competitor is The amount of a bid should not be altered after theopening, nor should alterations be requested, exceptwhen a substantial change is made in the work( Bidding Procedures).Award of cont ract1. Upon execution of the general contract, the generalcontractor should promptly award subcontracts atthe bid amounts to responsible subcontractors whosebids were used in the preparation of the general con-tractor s bid.