Property Maintenance & Operations Manual Training

Property Maintenance & Operations Manual Training

Capital Project Management Contract Administration

November 29, 2010

2November 29, 2010

• November 8, 2010Workplace Health and SafetyHousekeepingSuite Turnover & Annual InspectionsAfternoon: Landscape Maintenance & Project Management / Contract

Administration

• November 29, 2010Landscape MaintenanceCapital Project Management Contract Administration

• Further Training & Education– Colleges, Universities & Property/Facility Management Associations – On-line, classroom settings, correspondence

Property Maintenance & Operations Manual Training

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This chapter is in place in order to ensure a consistent and a logical process when managing individual capital projects or ongoing recurring service contracts.

A project must be carefully planned

• Projects must be completed within a predetermined time frame

• An estimate of value has been completed and a budget established that must be adhered to

• A defined scope of work has been established along with quality expectations

Capital Project Management & Contract Administration Chapter 12

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The Laws of Capital Project ManagementSteps that need to be followed:

• Identification of project

inspection process

identification of deficiencies

reason for deficiency existing

corrective action required

• Initiation

• Planning

• Control

• Change management

• Closeout


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The Inspection Process

Building Components/Elements:• Components expected to last the life of the building

• Elements subject to extensive wear due to mechanical and human traffic or exposure to the elements

• Elements who’s useful life can be prolonged through Planned Preventative Maintenance (PPM)

• Elements that would be obsolete due to technical advances, fashions or lifestyles


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DeficienciesOnce the deficiency has been identified & inspected:

• Corrective action may be immediate repair or replacement

• Corrective action may be planned and budgeted for future action

• It should be noted the reason for the deficiency

• Is it due to abuse, neglect, poor maintenance, inferior product etc.

• Use the most current products and building practices to correct the deficiency

• Pay me now or pay me later

• PPM program or immediate corrective action will prolong the expected life of the component and reduce capital expenditures


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Deficiencies• Sound procedures are to be implemented on tendering

• Tendering is the process of securing competitive bid prices

• Obtain the best possible price from qualified contractors

• Define the work to be done (scope)

• Specification should be clear, concise, comprehensive and coordinated

• Include general requirements, product information and execution


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Specification Content

• Type and quality of materials, products, equipment and fixtures

• Dimensions

• Method of fabrication and execution of the work

• Level of workmanship

• Testing requirements

• Drawing Content:

Quantities of materials, Products, Equipment, Dimensions, Layouts, Location of components, Schedule or lists of finishes, windows & doors


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Tendering• Outline Specification - identifies the scope of work only. Not often used in construction

• Prescription Specification - directs the contractor in carrying out the task through a list of procedures

• Proprietary Specification (or base bid) - particular products or products are listed. Often qualified with a statement “approved alternate”

• Performance Specification - Specifies the end result or performance of a particular component or system

• Cost Plus Contracts – used when the extent of the work is unknown. Must be carefully supervised and monitored.

…


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Tendering• Stipulated Price Contracts

Cost of the work as defined in the specification at a fixed dollar price.

• Unit Price Contract

Based on detailed listing of materials & estimated quantities required for the work

Tendering• Invitational:

You decide in which contractors will be permitted to bid…past performance

• Public:

This process is done by placing an add in the local newspaper/trade paper


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Tendering

When tendering a project consider the following:

• Time to prepare the package

• Client/unit requirements

• Pre-tender meeting with contractors

• Method of securing bids

• The contractors will bid on the information provided

• Same information must be provided to each contractor


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TenderingInstructions to Bidders

• Closing date

• Location of work

• Owners name and address

• Requirements for reference

• Bid security and bonding requirements

• Substitution information

• Liability insurance and WSIB requirements

• Requirements for certification of trades


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Tendering

Construction Specifications Canada - 16 Division Master formatMaster format published by the Construction Specifications Institute and Construction Specifications Canada. Used by designers, suppliers and trades.

General requirements Finishes

Site-work Specialties

Concrete Equipment

Masonry Furnishings

Metal Special construction

Woods and plastics Conveying systems

Thermal and moisture protection Mechanical

Doors and windows Electrical


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Tendering

Problems in SpecifyingAn analysis of nearly 200 projects showed the following breakdown problems in specifications that resulted in disputes:

“Or equal to clause” 35%

“Site construction problems” 18%

“Ambiguities” 17%

“Conflicts between drawings & specs 15%

“Inaccurate technical data” 15%


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Pre- Tender Meeting• Intent of the meeting is to clarify the scope of work and answer any questions from the contractors.

• Disclose all relevant information

• This is an opportunity to identify anything that was in the specifications and an opportunity to include anything that was missed

Addendum• Change in the contract prior to closing – clarifies revisions, deletions and inclusions

• All contractors must receive this information in writing


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Tender opening• Date stamp and record time of receipt

• Documents received after the closing time should not be opened

• Contractors may not amend their bid after they have been opened

• Not recommended to accept faxed bids. Confidentiality

• Public - tender opening on same day of closing

• Private - tender opening on a later day that has been specified


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Review of BidsReject bids…

• Improper format, missing security deposit, contain escalator clauses or conditional letters

• Rejected bids should be returned to bidder with a letter explaining why the bid was rejected.

• Check for accuracy, bid security, names of sub-trades

• Confirm that errors of omissions have not taken place.

• Check for references prior to awarding

• Check for financial situation of contractor and their track record on paying their sub-trades


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Awarding the ContractLetter of intent to award asking for the following documentation:

Performance bond, WSIB clearance, Labor & Material bond, Liability insurance, MSDS/WHMIS, H&S Checklist

Legal Implications• Implied as a contract once tender packages are out in circulation

• The court considers tender calls as an offer and the bid as acceptance

• A contract is deemed to exist if the bid is made in compliance of the conditions of the tender package


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Typical Pitfalls• Hoping problems work themselves out

• Relying on second hand inputs rather than following up yourself

• Not asking for help

• Winning contractor is predetermined

• Strong bias against a particular contractor

• Bidders have not been advised to changes to the contract documents

• Not appointing knowledgeable person as the contract administrator

• Not provide all information to contractors in writing

• Not documenting all contacts with the contractors including items of discussion


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Project Review• Monitoring the progress of the project begins on the first day

• Initial contract meeting

• Review contract documents

• Establish a schedule

• Establish the lines of communication

• Sample and Mock-Ups

Keep Everything Under Control• Before the project starts have an initial meeting with all involved to discuss the following:

Owner, Contractor, Client and/or tenant(s), Designer, Suppliers


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Improving Procedures• Early communication

• Pre-construction meeting with the architect, project manager, contractor & sub-contractors

• Early sourcing of materials to ensure availability

• Shop drawings at an early stage

• Review at an early stage for building science validation

• Develop a bank of proven details

• Delete poor details


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Role of the Contract Administrator• Monitor & control costs, are the conditions of the contract are being met?

• Confirm on site the methods of construction and quality of materials used

• Prevent unacceptable substitutions or poor assembly

• Interpret the intent of the drawings and specifications

• Foresee the possibility of error, omissions or misunderstandings

• Prevent unnecessary conflicts, disputes or costly delays

• Record events & decisions which could have an impact now or later in the project

• Plan the project sequence with the contractor –

ensures co-ordination of sub-trades, confirm the advance ordering of materials


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Role of the Contract Administrator

• Provide prompt and periodic reporting of the progress of the work

• Use judgment & experience in permitting certain substitutions (equal or better)

•Provide consultation regarding optional ways of performing some portion of the work that will be acceptable to all

• Prevent unfair practices, procedures or any attempt to avoid obligations in the contract

•Give Health & Safety priority at the outset of planning and identify hazardous conditions during the construction phase.


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Initial Site Meetings• Review contract documents

• Start and completion dates

• Temporary services, washroom facilities

• Building access, parking and storage

• Owner/contractor contacts during and after hours, communication

• Construction schedule

• Products and substitutions

• Change orders

• Progress payments


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Site Review Meetings• At the end of each week conduct a project review meeting

• Prepare a well thought agenda that includes

Major accomplishments since the last review

Schedule status (actual vs. planned)

Major issues (problems)

Plans for the next review period

• Invite the essential people

• Clearly identify the objectives of the meeting

• Review the deliverables, where they met?

…


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Site Review Meetings• Has quality control been established and is the standard being met?

• When milestones are not being met the Contract Administrator should be focusing on why they are not being met.

• When will they be met.

• The earliest date the project will be back on schedule


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Slippage• Slippage can cause disastrous delays and backlogs

• Identify the milestones that have not been met

• Create an action plan to meet these milestones while maintaining existing ones.

• Follow project schedules and stay on track

• Schedules should clearly identify:

- Who is doing what task

- When it is to be completed by.

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Wrap-up Meetings

• Identify deficiencies and discuss the schedule to achieve completion

• Discuss outstanding defects

• Resolve warranty issues and the submissions required

• Identify any required reports and warranties

• Secure regulatory agency releases to permit occupancy

• Identify required As-Built drawings (changes recorded on original drawings)

• Identify required Record drawings ( permanent recorded changes on new transparency)


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Construction Lien Act• A lien is a charge on the owners interest in his or her land and building.

• Everyone supplying construction materials & services to a project has lien rights except architects and their employees.

• Lien rights begin as soon as a person provides materials or services to an improvement

• A lien must be registered within 45 days of publication of substantial performance or within 45 days of completion of providing materials or services.


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Holdbacks• 10% of the contract value must be held from all progress payments to the head contractor to cover potential lien claims.

• Anyone who receives payment is holding it in trust for those that actually supplied materials and or services.


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Substantial Performance• If a construction project is substantially completed, that is, it is inhabitable or useable, then payment has to be made.

• The owner is permitted to make a reasonable deduction for the cost of achieving full performance.

3% of the first $500k of the contract price

2% of the next $500k

1% of the balance of the contract price


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Refer to Chapter 12 of the manual for more information relating to Capital Project Management and Contract Administration.

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Capital Replacements…

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Capital Replacements…

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Some questionable methods…

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Property Maintenance & Operations Manual Training

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Transcript of Property Maintenance & Operations Manual Training