subcontractor scheduling

Alpha Corporation - Training

Subcontractor Commercial Subcontractor Commercial Project Management IssuesProject Management Issues

By

Chris Carson, PSP

Alpha CorporationProject Controls Manager

Voice 757-533-9368 [email protected]


Importance of Project ManagementImportance of Project Management

Clear communication with less confusionClear contractual agreements

Meeting of minds for cost, time, qualityAgree on Scope of WorkMinimize surprisesManage change with a processImproved ability to define and meet client expectations


Differences between Commercial and Differences between Commercial and Residential WorkResidential Work

Project plans & Spec rule (client)Formal bid processContracts provided by GCFormal shop drawing processClient is not end userTime extensions and delays are legal issuesFormal change management process


Bidding & Contracting PhaseBidding & Contracting Phase


Bids & PricingBids & PricingContract Documents - set the standards and expectations

Plans

Check table of contents for all pertinent work

See small scale sheets for overview layout, large scale for details

Look for elevation notes, section notes for clarity

If cabinetry exists on plans, GC expects you to have it priced

Specifications

Specifications provide detail requirements

Cabinets must meet specs unless noted on bid form

Specifications may dictate hardware, colors, materials types, acceptable manufacturers

Watch for “or equal” – wording is significant

Watch for AWI requirements – restricted suppliers


Or-Equal ExampleOr-Equal Example


Subcontractor Bid ProcessSubcontractor Bid Process


General Contractor Bid ProcessGeneral Contractor Bid Process


Bids & Pricing Bids & Pricing

Specifications follow “MasterFormat” 16 Division systemEvery Architect will change Section NumbersMasterFormat has standards, but not used exclusively

Here are typical cabinet locations, but check all sheetsDivision 6 – Wood, Plastics & Composites

Contains Section 06200, Finish CarpentryContains Section 06400, Architectural WoodworkContains Section 06600, Plastic Fabrications

Cultured Marble FabricationsSolid Surfacing Fabrications (Corian, other types of man-made tops)Quartz Surfacing Fabrications


Bids & Pricing Bids & Pricing

Division 11 – EquipmentContains Section 11230, Commercial Laundry & Dry Cleaning EquipmentContains Section 11260, Unit Kitchens

Normally an appliance, one pieceCould be laminate cabinetsUnusual to be under the cabinetry scope of work

Contains Section 11300, Residential EquipmentResidential kitchen appliancesResidential laundry appliances


Bids & PricingBids & PricingDivision 12, Furnishings

Contains Section 12300, CaseworkManufactured wood caseworkManufactured plastic caseworkSpecialty casework

Bank caseworkHospitality caseworkResidential casework

KitchenBathroomDormitory

Utility room caseworkEducational/Library caseworkLaboratory casework – usually specific national vendorsDisplay caseworkHealthcare caseworkReligious casework


Bids & PricingBids & Pricing

Contains Section 12360, CountertopsConcreteMetalWoodPlastic laminateStoneLaboratorySimulated stone

Cultured marbleSolid surfacingQuartz surfacing

Contains Section 12500, FurnitureCase goodsCustom office furniture

Contains other furniture sections


Bids & PricingBids & Pricing

Modifications or Addenda

Mods are usually government work, Addenda private work

Very important issue, official changes to bid

Do not acknowledge Addenda without reviewing all pages & drawings of addenda documents (Addendum-singular, Addenda-plural – professionals know the difference)

Do not take contractor’s word for what is included in addenda – look at documents

Sometimes the Architect will summarize or provide headings – it is not always safe to count on those summaries

Addenda should be published by Division and Sections


Scope of WorkScope of Work

Identify specific work to priceGC request (SOW will be in contract)Solicited by Division or SectionSolicited by tradeVerify what the GC wants included in priceTry to get it in writing

Check sections included in workUse the 16 Division system and get familiar with the systemMake notes of included sections

Check sections excluded in workMake notes of all relevant sections that someone might expect you to includeMark them as excluded sections


Relevant Spec SectionsRelevant Spec Sections


Bid ProposalsBid Proposals

Clear statement of subcontractor’s workWrite it out; all kitchen and bathroom cabinetry, including hardware as specified, all laminate countertops, all break room cabinets and tops

Use a good bid proposal formUse standard form with places to show sections, included work, excluded work, time frame, etc.

Identify included workList specific sections and descriptions

Identify excluded workList specific sections

List relevant items on drawings not specified


Bid Proposal Form ExampleBid Proposal Form Example


Bid Proposal, 2Bid Proposal, 2ndnd Page Page

General Notes


Bid ProposalsBid ProposalsIdentify specific conditions for work

Do you need heat or air conditioning?Do you need a secure building for tools and materials?Do you need building electrical power and/or lights?Do you need operating elevators?Do you need parking?How will trucks deliver to the building?Who will receive cabinets?Who will protect cabinets & what is protection (plywood/cardboard?)?Do you want the floor finish in place?Do you plan to shim up cabinets?Do you want finish paint on the walls before you start?Do you plan to haul trash from the jobsite or use the GC dumpster?Do you expect to pay a pro-rata share of the dumpster?What is the level of cleanup that your forces will do daily?What other trades can work concurrently in your space?Can they use your cabinets for scaffolding (during or after your install)?


Bid ProposalsBid Proposals

Identify time frames – both durations & work timesHow long do you need to install?

Will all floors be done at once?Is there a preferred sequence for your workers?Will you jump from room to room on any floor available?

When do you plan to work?Is weekend work anticipated?Is holiday work anticipated?Is the work week 5 days/40 hours?Will you work overtime, without additional pay, if demanded by the GC?

What is the sequencing between your own subcontractor trades?When can you template for tops?Where do you expect to start?What is your sequence, in what order? How long between template and installation?


SubcontractsSubcontracts

Subcontract overrules all bid documents unless you make bid proposals part of your subcontract (DO!)– this will dictate the conditions under which you will work, no matter what verbal or written document you have from before the subcontractWatch for boilerplate language in subcontractWatch for supervision requirementsCheck all prices and scope of workWatch for scope of work you did not anticipate or vague scopeNever sign subcontracts without reading completelyCheck the times of performance or schedule to ensure it matches your bidVerify that the plans you priced are the same as referenced in the subcontract, dates and revision dates


Boilerplate Language Boilerplate Language ExampleExample


Supervision Requirement Supervision Requirement ExampleExample


Added or Vague ScopeAdded or Vague Scope



Ensure that there are no documents you haven’t seen referenced in the subcontract

Understand the GC Buyout processThe GC needs to eliminate scope holes

GC wants all work to be assigned to a subcontractor

GC believes that they have the stronger hand in negotiation prior to awarding the subcontract

It is in the GC’s best interest to stuff as much scope into your contract as possible

The buyout process is where the GC picks up 5% to 10% contingency – this is a viable process that makes money for GC’s

Check all special conditions


““Stuffed Scope” by GCStuffed Scope” by GCExamples of Scope added by GC:

Blocking behind drywallElectrical lighting inside cabinetsMatching trim for windowsCrown mold on walls adjacent to cabinetsBlocking up base cabinets because flooring is not laidBuilding low wall at island cabinetsCovering low wall at island with panelingCabinets in other roomsHaving installer move cabinets to find missing electricalCutting out back of range hood cabinet to fit ductwork that was supposed to rough in behind drywall and now is dropped from ceiling



Note the language that all changes MUST be in writing – this is a legal statement that protects the GC (and can protect you if used correctly)

Check payment language Stored materials – very important if installation cannot happen when cabinets are delivered

Check invoice dates

Check for retainage (money retained until the end of the PROJECT)

If the subcontract references the GC’s contract with the Owner, get a copy of it; don’t allow pass-through language from a contract that you haven’t seen


Pass-Through LanguagePass-Through Language


SubmittalsSubmittals

Submittals, once approved, override the plans and specs, and often the subcontract

Good detailed submittals save time and money

Identify all existing conditions that could affect your work

Show all dimensions

Show finishes

Insist on formal approval of submittals

Get new approval if drawings change

Submittals could include mockups, watch out


Submittal ExampleSubmittal Example


Shop Drawing ExampleShop Drawing Example


SubmittalsSubmittals

Formal submittal reviewApproved

Start fabrication

Rejected, revise and resubmitDon’t release order or start fabricationResubmit quickly – time is not on your side

Approved as notedSame as Approved except you must meet notes on shop drawingsImmediately review notes; if you disagree, communicate it clearly immediatelyDon’t allow scope creep by shop drawing approvalDon’t accept “Receipt Acknowledged”, this is not approval!


Shop Drawing Scope CreepShop Drawing Scope CreepYour Scope of Work is established by the plans and specifications; if you bid one set of plans, and the Owner/Architect add additional work through making changes without issuing a change order, that is Scope CreepScope Creep is when the scope of work is increasedShop Drawing Scope Creep is when the designer makes changes on the shop drawings, and signs them, “Approved as Noted”

Added hardwareChanged cabinets (size increase, door/drawer changed to 4 drawer)Additional moldingFinish changes

Any change from the original plan that costs you or the installer more money and was not in your original bid is Scope Creep


ScheduleSchedule

Commercial construction implies strict legal rules about schedules

Identify initial baseline schedule expectations (planned dates)

Ask for the Total Float associated with your trade activities in the schedule to determine if your work is on the Critical Path and if not, how far off

Provide your expectations in writing; do not sign a contract that states anything else

Stay on top of the schedule; know what the GC expects but also what the schedule says


Critical Path & Total FloatCritical Path & Total FloatCritical Path is a scheduling term used in commercial work with Critical Path Method Scheduling, the primary and only legal scheduling methodologyThe longest continuous path of work through a project that drives the completion is the Critical PathIf an activity that is on the CP slips, it will extend the project duration, and could make the project lateThis is legal term, and the source of large delay claims and lawsuitsTotal Float is a measure of how much time there is to spare before a specific activity falls on the Critical Path.


Construction PhaseConstruction Phase


ScheduleSchedule

Delay – if an activity on the schedule is Critical, any delay to that activity (start late, finish late) is a legal Critical Path delay and subject to penalties

Document any delays caused by othersCheck notification clauses in contract; give formal notice of delay in a timely fashionYou might have a case for delay unrelated to the GC schedule, if you are forced to start late and finish lateMore important to defend against the GC claim of delayGC delay is likely to be passing along Liquidated Damages to you (daily charge against you)

LD’s can run $50/day to $25,000/daySubcontract probably has language to pass through LD’s


Pass Through LD LanguagePass Through LD Language


ScheduleSchedule

Disruption - interruption not resulting in a delayIncludes a number of problems

Trade stacking or overloading

Inefficiency

Break in the orderly flow of work

Low productivity due to interference

Very hard to prove and document

If you can establish a “measured mile”; that is a period of time in which you perform similarly to your estimate, and then you are disrupted and can show worse performance due to an impact event, this is a strong basis for a disruption claim.


ScheduleSchedule

Acceleration - performing original work in less time, or additional work in same time

If the GC tells you to complete your work in less time than contracted, you have been accelerated

Important legal issue; unless the subcontract allows acceleration, you can renegotiate your costs and time

If you get a change order that takes more effort and costs more money, and the GC (or Owner) refuses to allow more time, you have been constructively accelerated (exactly the same as if they cut time out of your work), and could legally get paid additional (to cover overtime, inefficiency, disruption, etc.)


Acceleration LanguageAcceleration Language


Earmark the start date, and make every effort to start on timeIf job is delayed so you cannot start on time, document itEach time GC moves you back, re-evaluate your commitments (yours and your subcontractors)

If it will cause a problem, your strongest position is when you are first notified; that is the time to renegotiate the projectVerify the ability of your installer and/or top fabricator to meet the new dates

Keep an accurate onsite daily report or logReview your field personnel’s notes about delay and disruption daily, so you can provide notice of delay

Project Management & Project Management & CommunicationsCommunications


Project Management & Project Management & CommunicationsCommunications

Respond to all communications; do not allow a GC email or fax to go unchallenged if they unfairly complain about completion times or other issues

Use the RFI system (Request for Information)Use standard form

Track date of submission

Indicate date of response required before delay

Track date of response

Verify response doesn’t cost additional money or time

If response is a change, immediately notify GC

RFI system maintains written records of communications


RFI ExampleRFI Example

Ask specific questions requiring an answer, can provide aRecommendation or suggestion with RFI

Use RFIs to document that you have requested resolution for aproblem, identify specifically theproblem, the date you requested it, and the date you need an answer (beyond which It could affect production)

Used to trackin a log

This is the place for the Architect to formally respond to your question

Number the RFIs


RFI LogsRFI Logs

Use to keep track of the responsiveness of the Architect

Use to keep track of changes


Field Management & CommunicationsField Management & Communications

Make sure the field personnel know and understand the scope of work, and, probably more importantly, the exclusions from your subcontract

Develop a field report that records detailsField reports are legally admissible documents in the event of dispute

Field reports need to be contemporaneous

Train the field supervisor (the installer or top installer if no super)


Field Report FormField Report FormJob & DateJob & Date

Summary of work done that day

List Reico & installer personnel working on job that day, and what was accomplished (rooms completed?)

Note any problems discovered

Note any other contractors working in space, like painters, electricians, Also note any damage caused by them

Note any additional work requested by Super,PM or Architect

This is your installer’s opportunity to document any problems on the project that halt or impede production, ordameage caused by others

This report should be filed with the Superintendent, with a copy kept forthe installer and the PM

This could be done on email, in oneoperation



Record and document delaysInability to start due to othersInability to access spaceChanges in planned sequenceOther subcontractors (not within your control) in your way

Record and document disruptionOther trades slowing down your workDamage to your workSuperintendent communications that change your sequence or timingJob conditions that don’t meet your subcontract agreement



Daily report detailsActual room start dateActual room finish dateAny suspend and resume datesAll communications with superintendent, especially approvals of workOther trades in space, especially if any damageField conditions, especially if different from subcontract agreementInstaller manpowerOut of sequence work


Change ManagementChange Management

Changes or requests for changes are high priorityTypes of changes

RFP – Request for ProposalDirected ChangeDirection/Clarification

Could be from A&E or SuperintendentCould be in response to an RFI

Subcontractor submitted changeUndisclosed conditionsAdditional materials needed

Change Order Requests are ways to force communications from GC, get it in writing!All scope changes should be change order requests


Examples of ChangesExamples of Changes


SafetySafety

Commercial work conditions are regulated by OSHA (Occupational Safety and Health Administration), but inspected typically by Virginia OSHA.

Failure to follow OSHA regulations will likely result in large fines (thousands of dollars) if inspectors visit the site, either uninvited or after a serious accident when investigating


SafetySafety

All companies are responsible for monitoring safety practices

If a violation occurs, every company that allows its employees to work within risk of the violation is subject to fines

Good safety practices must be developed and taught to every company’s employees

Safety plan

Jobsite toolbox safety meetings

Documentation of meetings and training


SafetySafety

Examples of safety violationsCut or nick in an electrical drop cord (extension cord)Missing handrailsCircular saw missing guard or guard wedged openTable saw missing or being operated without safety equipment such as guard or anti-kickback devicesLadders not tied offWooden job-built ladders not meeting OSHA standardsFall risks; openings above ground floor without railsStairs not meeting standards; tread size, handrails, no concrete fill in metal pan stairsUse of hardhatsElectrical outlets without GFI protectionWalking under or within fall range of operating forklifts


Insurance, Bonds & PaymentsInsurance, Bonds & Payments


Insurance and BondsInsurance and Bonds

Performance and Payment Bonds cost money if you have to provideCheck GC requirements vs. your workman’s comp

Are you covering your cabinet/top installers?Are you covering your appliance installers?Virginia law says businesses with 3 or less employees do not need workman’s compensation, but the GC will expect you to have it – you may be covering your subcontractors if they don’t have insurance

Liability InsuranceWhat if your installers hurt or hit someone?

Equipment InsuranceWhat if your installers have tools stolen?


Insurance and BondsInsurance and BondsBuilder’s Risk Insurance

Who owns the cabinets when delivered to job?

Builder’s Risk policies can be written many ways

Cabinets may not belong to the Owner until GC has billed

Cabinets may not belong to the GC until sub has billed

In the event of a disaster, such as hurricane or flood, the wording in the Builder’s Risk policy will determine who gets paid for their supplies, uninstalled and installed work

Theft of cabinetry from job also falls under Builder’s Risk - again it depends on how the GC’s policy is written

Reico may not be covered at all until the cabinetry is installed and billed


Builder’s RiskBuilder’s Risk


PaymentsPayments

Make sure any retainage matches contractRead all lien releases carefully

Typical lien releases sign away your rights to any delay or disruption issue prior to paymentCross out any language that eliminates your rights and put a disclaimer in, if there are delay and disruption issuesDon’t allow lien releases to be signed prior to getting checkDon’t sign blank lien releasesKeep a copy of the lien release

Get billings in on time


Lien Release ExampleLien Release Example


Closeout & Warranty PhaseCloseout & Warranty Phase


CompletionCompletion

Document completionHave GC verify completion as soon as the work is out of your controlPunch list

Formalize punch listHave your foreman onsite to fix items at punch list creationGet GC agreement to punch listCreate and fulfill one list only; do not let lists growDo not allow additional work on punch listGet formal sign-off when punch list is completeDocument completion of punch listTake photos of each completed area for proof of damage


WarrantyWarranty

Understand your warranty

12 months in State of Virginia unless extended by Reico or requirement of GC

Track warranty issues to ensure they are not additional work or damage to your work


Questions?Questions?

Complaints?Complaints?

War Stories?War Stories?

Suggestions?Suggestions?


Subcontractor Commercial Subcontractor Commercial Project Management IssuesProject Management Issues

By

Chris Carson, PSP

Alpha CorporationProject Controls Manager

Voice 757-533-9368 [email protected]

subcontractor scheduling

Business

wood casework

bids pricing division

specific work

addenda private work

government work

pertinent work

bids pricing specifications

section numbers masterformat