Contract Management

October 31st, 2016

 

CONTRACT MANAGEMENT

FOR DESIGN AND CONSTRUCTION PROJECTS

The new 2 day workshop is now available for on site training sessions. We can customize it to your needs should you require it. For more information please contact bmoj@bmoj.com

Following is a workshop outline.

Description

In private industry and in the public realm, whether via Design-Bid-Build (DBB), Engineer, Procure, Construct (EPC), or Engineer, Procure, Construction Management (EPCM), any time you are doing construction,  there is a contract involved. This two day workshop is about the construction site contract administration process and how the activities  affect the contract administration team.

The lead person on a site construction contract is the Contract Field Engineer. On a daily basis they  have to make decisions to act or not to act. These decisions could materially affect the Contractor, the Owner, and others.  If the design, schedule, and contract documents are not prepared with the site  and contract administration in mind there are going to be problems on site and claims. The size and number of site problems encountered depend largely on what has transpired in the design office.  The contract documents should be structured to provide the right of sufficient control to assure timely, economical, and successful completion of the contracts.

It’s not one task that is important to the management of contracts, but many tasks. All of them are equally important to the success of the project. Together these tasks form a complete program for site contract administration. If the Contract Field Engineer ignores any of them, the program collapses. This workshop outlines those tasks that are important to the Contract Field Engineer and why they are important.

Good contract management in the field is an important part of staying out of the claims arena.  A lot of work goes into developing the construction contracts and the field personnel have to administer the contract to ensure the construction is done according to the signed documents. Once the contract is signed, the field has to live with it. To make the field effort as trouble free as possible, those preparing the documents should understand what happens in the field and what is important to the field for contract management.

Who Should Attend

This workshop will benefit those, in industry and government, who have to manage the contracts in the field and who’s job it is to prepare the contract documents. This would include field engineers, contract administrators, construction managers, project managers, project engineers, superintendents, procurement, consultants, and site personnel interfacing with contractors.

Workshop Outline

Day 1

Module 1 – Introduction

At the end of this session the learner will be able to describe:

  • The Scope, Schedule, Budget, Resources relationship for projects
  • Project delivery systems and contract management
  • Contract Field Engineer typical interfaces

Module 2  – Ethics When Dealing With Contractors

At the end of this session the learner will be able to describe:

  • Why ethics are important to the Contract Field Engineer
  • Ethical issues to be aware of
  • Unlawful activity
  • The importance of appearances

Exercise: CS 202 The Case Of The Revised Technical Specification

Module 3 – What Is A Contract

At the end of this session the learner will be able to:

  • Define a contract
  • Know the purpose of a contract
  • Know the basic requirements for a contract

Module 4 – The Contract Package

At the end of this session the learner will understand the need for:

  • General Conditions of Contract
  • Special Conditions of Contract
  • Pricing & Proposal Information
  • Technical Specifications
  • Drawings and  Amendments

Module 5 – Relationships With Contractors

At the end of this session the learner will better prepared to work  with contractors through:

  • Responsibility & authority
  • Proper attitude
  • Proper relations

Module 6 – Basis of Contract Administration

At the end of this session the learner  will know what is required to effectively manage the contract by:

  • Knowing the questions to constantly ask
  • Knowing the basics of contract administration
  • Change orders and field work orders
  • Back charges
  • Turnover sequence chart
  • Reading the contract
  • Using the 80:20 rule

Module 7 – Common Causes Of Claims

At the end of this session the learner will understand what are the common causes of claims and to be proactive in avoiding them. Some causes include:

  • Changes due to differing conditions
  • Delays, Disruptions, Interferences
  • Ripple or Impact Effect of changes
  • Breach of contract

Exercise: CS 104 Dealing With Claims

Module 8 – The Bid Process

At the end of this session the learner will understand the basics of the bid process, important points in a tender document, and unbalanced contracts. Material covered includes:

  • Request For Proposal and problems
  • Different types of proposals
  • Design Conditions and Standard Component List
  • Tender document
  • Unbalanced proposals

Exercises: Evaluating Unit Prices

Premium Portion Of The Overtime Rate

Handling Bid Questions

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Day 2

Module 9 – Bid Evaluation

At the end of this session the learner will understand the purpose of bidding and bid evaluation, including:

  • Bidders list
  • Bidder pre-qualification
  • The bid package
  • Bid analysis
  • Responsibilities

Exercise: CS 106 Handling Bid Questions

Module 10 – Documentation

At the end of this session the learner will understand the importance of documentation and the statement, “The one with the most information wins!”

  • Document requirements
  • Document types
  • Equipment checkout

Exercise: CS200 The Pickup Truck

Module 11 – Meetings

At the end of this session the learner will understand the:

  • The advantages of meetings
  • The basic principles
  • The four standard site meetings

Exercise: CS122 Meetings

Module 12 – Reports

At the end of this session the learner will understand the:

  • Daily activity reports
  • Daily activity report uses
  • Daily activity report contents

Module 13 – Schedule Importance

At the end of this session the learner will understand:

  • Schedule basics, terms, and schedule significance
  • Construction schedules
  • Contract administrators responsibility
  • Controlling the schedule

Module 14 – Progress Monitoring

At the end of this session the learner will understand the:

  • Contract requirements
  • Monitoring techniques
  • S-Curves including baseline, target and actual
  • Earned Value Analysis

Exercise: Earned value Analysis

Module 15 – Safety

At the end of this session the learner will understand the:

  • Contract requirements
  • Due Diligence
  • Cost of workplace injuries
  • Hazard recognition and identifying site hazards
  • Hazards and sources of energy

Module 16 – Procurement

At the end of this session the learner will understand:

  • The basics of procurement for works, goods, and consulting services
  • Freight terms and why they matter

Exercise CS112 Sludge Pond

CS 210 The Case Of The Inquiring Bidder

Purchase order vs contract

Module 17 – Interface Coordination and Project Completion

At the end of this session the learner will understand:

  • Interface responsibilities of the Contract Field Engineer
  • On site activities
  • Meetings
  • Planning, mediating, interferences
  • Schedule and procurement coordination
  • Substantial and Final Completion
  • Project closeout.
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