1
Q
What are 2 especially important factors in selection a client?
What 3 steps should an architect take before signing a contract with a new client?
A
- Whether or not the client’s budget is sufficient to cover construction and professional fees
- The reliability and reputation of the client
These steps are necessary in this situation.
- Investigate the (financial & risk) reputation and reliability of the client.
- Verify that the project is a good fit for the abilities and experience of the firm.
- Determine the budget and scope of work.
2
Q
What options are available to an architect if the owner’s budget is lower than the architect’s estimated cost but the project would be a good addition to the firm’s portfolio?
What are the architect’s options if the architect’s fee exceeds the amount budgeted by the owner?
A few other “red flags” or things to consider before selecting a client:
A
Reducing the profit margin and limiting the scope of the work or the project might be responses to this situation.
In this case, the architect can propose to reduce the scope of the project or the scope of his or her services.
- client wants a nonstandard contract
- project delivery method (ie if pursuing bidding they are tight on budget and may file a claim to save or recovery money)
- history of litigation
- unreasonable requests or high expectations in initial meetings
- another architect or design professional has been involved with the project
- it is important to develop a preliminary design and construction schedule to help determine project’s feasibility before completing/signing OA agreement. Reduces risk.
3
Q
What should you confirm before accepting a client who has had another architect on the project?
A
If another architect or design professional has been involved with the project, confirm that there is no formal or informal agreement currently existing between the owner and that other professional.
- If not, great. Current AIA Code of Ethics and Professional conduct allows an architect to supplant or replace another architect on a project
- If so, do not proceed. Seeking to interfere with an existing contractual relationship is regarded as unethical and, in some cases, illegal.
4
Q
What does “project delivery method” mean?
A
The entire sequence of events needed to provide an owner with a complete building, involving:
- selection of people who will design and construction the project
- establishment of contractual relationship
- method of organizing contractors to perform the work
5
Q
What are the 7 factors in selecting a project delivery method?
What factor most often determines the design method used to produce a project?
A
- project team capabilities (firm size and experience)
- client capabilities (experience and expectations)
- project scope
- schedule
- cost
- building quality desired by client
- risk
Cost is a frequent factor in determining this process.
6
Q
What are the 5 main project delivery methods?
A
- Design-bid-build
- negotiated select team
- cost plus fixed fee - Construction management as adviser (or agent)
- Construction management as constructor
- Design-build
- Integrated project delivery (new and evolving)
7
Q
What are the the main advantages of design-bid-build? Disadvantages?
A
Advantages:
- Simple and linear sequence
- Roles well-defined
- Coordination problems minimized
- Contractual relationships straightforward
- Cost: owner can quote a fixed price before construction
Disadvantages:
- Slow: design phase must be completely finished before the construction phase begins
- Quality: “lowest bid wins” may result in costly change orders during construction
- Possibility for adversarial relationship between contractor and architect
8
Q
What is Negotiated Select Team? When is contractor selected and when are contractor terms for contractor determined? What are is advantages?
A
variation of design-bid-build where contractor is selected early in the design process and contract terms for contractor determined prior to completion of CD set
- Better relationship between architect and contractor
- Increased quality by eliminating bidding
- Faster method than traditional
9
Q
What are the options for fee structures for design-bid-build?
A
- Hard bid
- Fixed fee (set after design and before construction
- Cost plus fixed fee (if project finishes below budget, any savings go to owner)
10
Q
What is the construction manager as adviser (CMa) method? What are the CM responsibilities?
A
Owner hires a construction manager (CM) who acts as the owner’s agent (as does the architect) without any financial interest in the project.
- CM advises on constructibility of the design as its developed
- CM provides early cost estimating and value analysis
- Completes project scheduling
- assists with contract negotiations
- manages multiple construction contracts and fast-track constructions
- makes early material purchases
- gives a GMP and completion date (sometimes)
11
Q
What is a disadvantage of using an independent CM? How can it be reduced?
A
more complicated management structure
by having CM be the contractor
12
Q
What are the 3 common methods for establishing the total construction cost of a project with CMa?
A
- fixed price / stipulated sum/ lump sum
- owner knows final cost before construction
- contractor is responsible for cost overruns
- owner does not share in savings if project is below budget - cost-plus-fee w/ GMP
- owner pays actual cost of construction (direct + indirect) plus a fee that is agreed on before construction begins
- CM guarantees maximum price
- if project completed below budget, the owner receives the cost savings - cost-plus-fee w/o GMP
13
Q
Which AIA standard agreements should be used for a CMa?
A
AIA Document B132, Standard Form of Agreement Between Owner and Architect, Construction Manager as Adviser Edition
AIA Document A132, Standard Form of Agreement Between Owner and Contractor, Construction Manager as Adviser Edition
AIA Document A232, General Conditions of the Contract for Construction, Construction Manager as Adviser Edition
AOA Document C132, Standard Form of Agreement Between Owner and Construction Manger as Adviser
14
Q
What are the CA services requirements under AIA Document A232, General Conditions of the Contract for Construction, Construction Manager as Adviser Edition?
A
architect and CM perform joint CA services for:
- Visiting site
- Certifying applications for payment
- Rejecting work
- Reviewing submittals
- Investigating concealed and unknown conditions
- Determining dates of substantial and final completion
- Issuing certificates of substantial completion
- Deciding matters of performance
- Reviewing requests for information from contractor
- architect’s CA services are sim to design-bid-build, except that architect must advise and consult with both client and CM
- architect’s decisions on aesthetics are final with intent to CDs
15
Q
What are the advantages of fast-tracking?
With which project delivery method is fast-tracking most commonly used?
A
The advantages of this delivery method are
reduced time
lower budget
Construction Management (a or c) method
16
Q
What is construction manager as constructor method?
A
Construction manager is part of the contracting firm which has a single agreement with the owner covering the construction management services as well as the construction services provided.
- reduces adversarial roles between architect and contractor
- Cmc has the ability to accelerate project delivery schedule
17
Q
The CM-c’s services are split into which 2 phases?
A
- Preconstruction phase (similar to CMa role)
- CMc provides advice to owner on constructibility, cost estimating, value analysis, scheduling, contract negotiation, and early material purchasing - Construction phase
- Roles and responsibilities of contractor and architect become essentially what they are under AIA Doc A201 general Conditions for the Contract for Construction
18
Q
In a CMc method, the architect’s CA role begins when one of three things happen
A
- Owner accepts CM’s GMP
- Owner approves the CMc’s control estimate
- Owner issues a notice to proceed
19
Q
Control estimate
A
The sum of the CM’s estimate of the cost of the work + the CM’s fee. It establishes the expected date of substantial completion and includes a list of drawings and specifications etc used by CM in preparation of the control estimate.
20
Q
What are the 2 common methods for establishing the total construction cost of a project with CMc?
When is the construction cost established?
A
- Cost-plus-fee with GMP
- Cost-plus-fee without GMP
* * unlike CMa, no stipulated sum option
- bases cost estimates and GMP on partially completed documents, typically after DD phase is complete
- establishing a GMP before all details, specs, and drawings are complete puts the contractor at risk
- also known as construction manager at risk
21
Q
What standard AIA Documents should be used for CMc?
A
AIA Document B133, Standard Form of Agreement Between Owner and Architect, Construction Manager as Constructor Edition
AIA Document A133, Standard Form of Agreement Between Owner and Construction Manager as Constructor where the basis of payment is the Cost of the Work, Plus a Fee with a Guaranteed Maximum Price
or
AIA Document A134, Standard Form of Agreement Between Owner and Construction Manager as Constructor where the basis of payment is the Cost of the Work, Plus a Fee without a Guaranteed Maximum Price
22
Q
What is the primary disadvantage or CMc?
A
CM’s dual role as contractor and as estimator
- cost decisions made early in design process directly affect the CM’s profitability later in construction
23
Q
What is Design-Build? What is the process to agreement execution?
A
- The owner contracts with one entity (a person or firm) to provide both design and construction services
- That entity then subcontracts portions of the work to others as needed.
- Owner provides design-builder with a set of performance requirements for the project, and design-builder uses that to develop a preliminary design and proposed contract sum (fixed fee)
- If proposal accepted, agreement is executed
24
Q
Who could be the design build entity?
A
A construction contractor with an independent architect and engineer as consultants
- Architect and engineer have contracts with contractor, not owner
- Most common
A construction contractor with in-house design services
A construction contractor collaborating with an architect or other design professional through a joint venture or other project-specific legal entity
A real estate developer subcontracting both design and construction services
Architect with an independent contractor and engineer as consultants
- Less common
Any other person or firm legally permitted to do business as a design-builder in the location where the project is located
25
What are 4 owner advantages to design-build? 4 disadvantages?
1. single contract/source of responsibilities
2. all parties work together to give owner best value
3. fixed price received early and generally lower than in other methods
4. total time is less than more traditional approaches
1. once contract is signed, owner has less control over design and construction
2. may be disagreements about what should have been included in design
3. Design-build entity has control over quality of materials and construction methods used, so may substitute lower quality materials to stay within budget
4. Owner needs to have experience and be able to define and state their needs clearly and precisely
26
What are 7 requirements for success for design-build?
1. Owner experienced/educated with design-build method
2. Owner’s project criteria clearly and completely stated (Option for owner to hire consultant for help with this and hiring a design-build contractor)
3. Key consultants (like structural and MEP) selected early and involved often
4. Contract should allow for adjustments in cost and time, even with a GMP
5. Contract should provide method for dispute resolution
6. Strong forms of communication between all parties (like BIM)
7. Trust among parties and willingness to work together
27
What is the main contract documents to be used in design-build? If the architect is hired by contractor? If architect is already on staff of design/builder? Where can you find more standard agreements for design-build?
Main document = AIA Document A141, Agreement Between Owner and Design-Builder
- Includes provisions for owner design criteria
- Includes the determination for the Cost of the Work, if the Contract Sum is based on a Cost of the Work with or without a Guaranteed Maximum Price.
- Owner takes role of traditional architect in CA for reviewing/approval submittals, approving change orders, site visits, and rejecting nonconforming work
If architect is hired by contractor as subcontractor or consultant = AIA Document B143, Standard Form of Agreement Between Design-Builder and Architect
- Architect’s responsibilities are selected/handpicked from: normal design administration services, evaluation of owner's project criteria, design of project based on criteria, CD docs and specs
If architect is already on staff of design-builder then no separate agreement is required
See Design-Build Institute of America (DBIA) for more standard agreements that are more neutral than AIA docs (favor architect)
28
What is Design-Assist Contracting? Advantages?
To which project delivery method is it best suited?
Project management method in which specialty subcontractors or trades are included early in design and CD phases to help with complex or unique technical portions of the building. Shop drawings are incorporated directly in the architect's CDs. Architect is not required to document those systems as traditional 'design intent' deliverables.
- Main idea that is that for complex systems (high-performance enclosure or mechanical systems) are better understood, designed, and detailed by a subcontractor than the architect.
Advantages:
- more accurate and efficient working drawings
- improved cost control and construction operations.
Design-assist contracting is best suited for construction manager as constructor (CMc, sometimes called construction manager at risk (CM@R)) projects where the contractor is already providing constructability advice, and is not a project delivery method in itself
29
What additional work must the owner do to make design-assist contracting effective??
Owner must develop a clear statement and scope of work, along with a budget and schedule.
30
What additional work must the the architect do to make design-assist contracting effective?
Architect must help the owner with developing requirements of work and selection with the best subcontractor to meet design, budget, and schedule requirements.
31
What is Bridging?
What is the overall process?
What are 2 owner advantages?
What's the main idea behind it?
A variation of design-build that combines the advantages of traditional design-bid-build and design-build approach.
Process:
- Owner hires an architect or engineer (AE) to be project manager.
- AE acts as adviser and works with owner to develop project requirements used to select Design-Build firm and to develop project criteria.
- AE gains needed approval for project and develops preliminary scope drawings and specs for bidding
- Owner makes project available for bidding to design-build firms
- Selected design-build firm takes over AE responsibilities to develop final, detailed CD set
- AE reviews final docs on owner's behalf to ensure project criteria are met, but is not legally responsible for them
- Design-build firm uses final documents to secure permits, review submittals, and construct project
Advantages for owner:
- combines design-build (someone represents owner's interest) and design-bid-build (competitive bidding, fixed cost, single-source responsibility for construction).
- AE relieves owner of responsibility of developing project criteria
Main idea is that the design-build firm is in the best position to work with manufacturers, subcontractors, and other suppliers to determine the best way to construction the project at the lowest cost while meeting owner's requirements.
32
Describe the process of Bridging?
- owner hires architect or engineer (AE) to be project manager
- AE acts as adviser to owner to develop project criteria/requirements
- AE develops preliminary scope drawings and specs, and gains necessary approvals for the project
- owner puts project to bid for design-build firms
- selected design-build firm takes over AE's responsibilities to produce the final CDs and specs
- AE reviews final documents on owner's behalf, but is not legally responsible for them
- design-build firm uses CDs to secure necessary permits, review submittals, and construct the project
33
What is Integrated Project Delivery (IPD)? What are the top 3 behavioral principles? Others? How does the design process shift in IPD from more traditional methods?
Project delivery method in which all participants collaborate closely from the project's earliest conceptualization to move-in.
- mutual respect and trust
- willingness to collaboration
- open communications
- mutual benefit and reward
- identifying risks early
- early goal planning
- intensified planning
- early involvement of key participants
- multiple leadership roles
IDP places more design effort and collaboration between parties earlier in project development where there is a greater ability to affect costs and the functional aspects of the building.
34
What is the contract structure of IPD? What are 3 ways to establish contractual relationships using standard AIA documents?
Owner often has multiple agreements with independent design and construction firms.
1. Multi-Party Agreements : single agreement between owner, architect, contractor, and other key project participants
- Standard for 'pure' IPD
- AIA Document C191, Standard Form Multi-Party Agreement for Integrated Project Delivery
Outlines collaborative working relationship that encourages parties to meet agreed upon cost and performance goals
2. Transitional Forms: modeled after existing CM agreements
- AIA Document B195, Standard Form of Agreement Between Owner and Architect for Integrated Project Delivery
- AIA Document A195, Standard Form of Agreement Between Owner and Contractor for Integrated Project Delivery
- AIA Document A295, General Conditions for the Contract for Integrated Project Delivery
3. Single-Purpose Entities: independent LLC newly created for sole purpose of planning, designing, and constructing a particular project
- Complete sharing of risk and reward
- Normally used for large or complex projects
- AIA Document C195, Standard Form Single Purpose Entity Agreement for Integrated Project Delivery
35
What are the advantages of IPD? Challenges?
Advantages:
- quality: better design and qualityconstruction
- schedule: shorter project delivery time
- budget: lower project costs
- risk: fewer problems during construction
- shared risk (indemnification from liability) and reward
Challenges:
- more complex contract structure
- a lot of work to plan and organize team, agreements, and process
- multi-party collaboration can be difficult
36
AIA standard agreement A-Series
Owner/Contractor Agreements
A201 General Conditions for the Contract for Constructions
37
AIA standard agreement B-Series
Owner/Architect Agreements
B101 Standard Form of Agreement Between Owner and Architect
38
AIA standard agreement C-Series
Other Agreements
C401 Standard Form of Agreement Between Architect and Consultant
39
AIA standard agreement D-Series
Miscellaneous Documents
40
AIA standard agreement E-Series
Exhibits
41
AIA standard agreement G-Series
Contract Administration and Project Management Forms
42
What are value-engineering and cost-cutting?
Ways to reduce costs of building is over-budget.
Value engineering substitutes materials and products that will achieve the design intent at a lower cost.
Where VE achieves the same intent at a lower cost, cost-cutting will change the original design to something the CMc hopes is similar but costs less.
43
What are the main considerations to determine if a project should be executed under IPD?
1. Owner involvement, since owner drives IPD
2. Project size, type, and complexity
- ideally any project would be suitable for IPD, but complex projects seem to benefit the most from it
- common project types are hospitals, commercial, and institutional projects
44
In IPD, early involvement shifts increased financial outlays to when? For what type of projects would this prove detrimental?
- earlier in the project
| - cost-sensitive and speculative projects, such as those for developer clients
45
In IPD, expanded roles and collaboration encourages who to contribute to the design intent? Who contributes to means and methods?
- anyone! (key participants)
| - the architect!
46
What are legal barriers to IPD?
- fluid information sharing
- unsupportive insurance policies (potential for standard professional liability insurance to not cover IPD and need for new IPD insurance products)
- collaborative rather than distinct responsibilities and liabilities
- inconsistent state licensing laws
47
What kind of project delivery system might be preferred by a real estate developer?
design-build
48
During the predesign phase, the architect should be involved with what team-building activity?
The architect needs to assemble and coordinate a team of professional consultants during this phase of the project.
49
What is the term for the concept of combining the design-bid-build process and the design-build process?
Bridging
50
What is a control estimate?
This estimate is the construction manager’s estimate of the cost of the work plus the construction manager’s fee.
51
What additional construction contract administration responsibilities does the owner assume in the design-build process?
These are all the owner’s responsibilities, not the architect’s, in this construction delivery method.
- reviewing and approving submittals
- approving changes
- visiting the site
- rejecting nonconforming work
52
What financial stake does an architect have in a typical design-bid-build project?
As the agent for the owner, an architect has no financial stake in this type of project.
53
What are the owner’s obligations if the owner chooses to contract directly with the architect’s consultants?
If the owner chooses to do this, the owner must be directly involved with the work of the consultants.
54
standard of care / due care
Usually defined as what a reasonably prudent architect, in the same community at the same time, facing the same or similar circumstances would do.
The requirement that a professional exercise reasonable ability and judgment in a specific circumstance, the absence of which constitutes negligence. Also called due care.
It is the measure by which professional negligence is judged. The standard of care is established in the common law of each state, or may be written into the services agreement. Expert witness testimony is normally required to establish a breach of the standard of care.
55
boilerplate
A section of standard text, especially a contract clause, inserted into legal documents. The main sense of the “boilerplate” meaning is that the text is:
- already existing and available to use
- is quite fixed, needing little or no alteration,
- and by implication has a proven and trusted validity or suitability, and is therefore an aid to saving effort and cost compared with originating an equivalent clause from nothing.
56
additional services
Services that are above and beyond the agreed-upon basic services scope of the original contract, or work that is being performed outside of that contractual relationship.
57
basic services
That which the architect agrees to provide under the scope of the contract with the owner. Project-related tasks that are above and beyond basic services are referred to as additional services.
58
addendum
Documentation issued by the architect after issuing project documents for bidding and before the execution of the construction contract that modifies, clarifies, or corrects the intent of the project documents. The method of making a change before bidding is complete.
59
as-builts
For an existing building: Drawings based on actual existing construction dimensions, typically based on field measurements.
For a newly completed building: A final set of drawings at the end of the project reflecting all changes to the work.
60
certificate of occupancy
Document issued by the authority having jurisdiction certifying that the specified area is approved for its intended use.
61
pro forma
A type of documented demonstration of expected performance outcomes for a particular endeavor if planned activity proceeds. Typically used for financial projections or in financial feasibility studies for real estate.
62
qualifications-based selection (QBS)
A competitive contract procurement process allowing owners to select the most qualified firm based on the firm’s submitted qualifications in response to a request for qualifications. The owner and firm then negotiate the fee based on a comprehensive understanding of scope of work, deliverables, and desired outcomes.
63
best-value selection
A competitive contract procurement process that looks at price, qualifications, and other factors such as previous experience, schedule, and vision. The factors are assigned weighted values, which are tabulated for each firm submitting in response to a request for proposal.
64
short list
After the owner receives responses to an RFQ, the owner reduces the selection of professionals and requests further information or presentation to demonstrate their qualifications for the proposed project. Being selected as one of these competing firms is referred to as being short-listed.
65
request for proposal (RFP)
The formal process of an owner soliciting for proposals for a project as a means to select the appropriate professional for the work. The process includes a notification—either public or private—stating the requirements and conditions of the responses and the breadth of the project work, in enough detail for competing firms to determine an estimate of the scope and cost for the work.
66
exclusions
Services intentionally omitted from work covered by the contract. The services may be added later as an add services, for additional compensation above the original contract amount
67
request for qualifications (RFQ)
The formal process of an owner soliciting for firms to demonstrate their capabilities and experience for a project, as a means to select the appropriate professional for the work. The process includes a notification—either public or private—stating the requirements and conditions of the responses and the breadth of the work, in enough detail for the competing firms to determine if such a project is in their interest.
68
record drawings
Construction drawings revised to reflect and represent the actual conditions of the project as it was constructed, usually based on marked-up prints, drawings, and other data furnished by the contractor to the architect. This term is preferable to as-built drawings. See also As-constructed record drawings.
69
schedule of values
Provided by the contractor showing how much each portion of work will cost. This is used by the contractor to justify portions of work finished and payment required, and used by the architect to measure the justification of the contractor’s request for payment.
70
resiliency
The effort of designing, building, or functioning in a way that enables a proactive response and recovery to adverse conditions without significant setback to processes and operations.
71
sustainability
The use of today’s resources in such a manner that it does not take the resources from the next generation, thereby supporting systems and processes of long-term balance.
72
capital improvement
A project that will improve the condition or value of an owner’s acquired wealth, property, or assets.
73
overrun
When a project expense exceeds the budgeted amount, often as a result of poor estimating, inadequate time, or poor project management.
74
professional fee plus expenses
A pricing method for professional services that separates the professional fee from reimbursable expenses.
75
What is makes up the construction cost?
What percentage of the construction budget is the construction cost?
What percentage of the construction budget is other, such as surveys, testing, and fees?
Construction cost = total cost of labor and materials
Construction budget = 85% construction cost
Surveys, testing, fees, FF&E = 15%
76
What are the typical design fees for architectural and engineering work for new construction based on percentage of construction cost?
```
Architecture = 10% of construction cost
Mechanical = 15% of construction cost
Electrical = 12.5% of construction cost
Civil = 10.5% of construction cost
Structural = 9.4% of construction cost
```
77
prime contract
Prime architect or prime contractor. Any contract directly between the professional and the owner; the professional is considered the prime.
78
cost-based selection
A competitive contract procurement process where the lowest-bidding firm is selected, in response to a request for proposal.
79
Project manual
The volume usually assembled for the construction work, which may include the bidding requirements, sample forms, conditions of the contract, and the specifications.
80
ConsensusDOCS standard contract documents
The ConsensusDOCS standard contract documents are contract forms developed by a consortium of construction industry organizations including the Associated General Contractors of American, the Associated Builders and Contractors, the Mechanical Contractors Association of America, the Construction Specifications Institute, and nearly 40 other trade groups. ConsensusDOCS are a family of model contract documents developed primarily to compete with the standard family of AIA contract documents and to end a perceived architect bias in the AIA documents. The stated purpose was to take a balanced approach to defining the rights, obligations, and risks of the various parties involved in a construction project and to reduce the number and severity of disputes.
81
Surety
Bond
A person or entity that guarantees, in writing, the performance of an obligation by another.
In suretyship, an obligation by which one party (surety or obligor) agrees to guarantee performance by another (principal) of a specified obligation for the benefit of a third person or entity (obligee).
82
Performance bond
A bond in which the contractor and the contractor’s surety guarantee the owner that the work will be performed in accordance with the contract documents.
83
The amount of the performance bond is normally what percentage of the contract sum?
A performance bond amount of less than 100% indicates that the surety does not believe that the contractor can perform the work according to the surety’s standards. The surety may believe that the project is too big for the contractor, or that the contractor has too many commitments to other projects.
84
Specifications that describe the desired end result are...?
A set of specified performance- related requirements to be satisfied by the contractor or subcontractor.
performance specifications.
85
Specifications that
- make the architect responsible for describing the proper performance of the specified items.
- explain all components of the specified items in detail.
- describe the arrangement and assembly of the components of the specified items
are. ..
descriptive specifications
86
Bid bond
A form of bid security executed by the bidder as principal and by a surety to guarantee that the bidder will enter into a contract within a specified time and furnish any required bond. See also Bid security.
87
Bid security
A deposit of cash, certified check, cashier’s check, bank draft, stocks or bonds, money order, or bid bond submitted with a bid; provides that the bidder, if awarded the contract, will execute such contract in accordance with the requirements of the bidding documents
88
What is the difference between a construction change directive, change order, and field order?
A field order is a term previously used for an order providing for a minor change in the work.
A change order is an amendment to the construction contract signed by the owner, architect, and contractor authorizing a change in the work, an adjustment in the contract sum or the contract time, or both.
A construction change directive is used only when there is not total agreement on the terms of a change order.
ARE 5.0 - Practice Management
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