Page 259 - Sustainable On-Site CHP Systems Design, Construction, and Operations

232 C o ns truction

construction and complete the CHP project in a timely manner. Sophisticated methods
of scheduling, such as the critical path method (CPM), are widely used to plan activities
and forecast critical delays. When properly used, the project schedule is a management
tool that enables the owner to obtain advance warning of situations that may threaten
the profitability of the project.
A question that is frequently asked in the scheduling area is whether or not the
owner-operator should approve the schedule of the contractor. There are compelling
reasons as to why an owner-operator should not approve the schedule. Several courts
have held that if the parties agree that the CPM schedule is a reasonable plan for per-
forming the work, the schedule is presumed correct. Because the owner-operator has no
control over construction means, methods, man-hour loading or economic restraints, it
is virtually impossible for an owner to be in a position to vouch as to the validity of the
schedule. Nor would an owner want to be responsible for the contractor’s schedule,
since the owner’s true concern should be the date that completion milestones will actu-
ally be met not how the contractor intends to achieve such milestones.
It is, however, critical for the owner-operator to evaluate the schedule and deter-
mine whether the owner is being required to perform services in a manner consistent
with the terms of the contract. For example, the schedule could call for a turnaround
time on approvals of submittals in a shorter time than is reasonable, placing the owner-
operator in a position of delaying the contractor. Moreover, care should be taken to
determine if the dates for bringing fuel to the site (which typically the owner-operator
or developer’s responsibility) is consistent with the other agreements the owner has
entered into for the CHP project.
The project schedule should also be used as analytical device claim recognition,
preparation, and as proof. This will enable the owner-operator to have objective data as
to whether delays are excusable under the contract, and will allow the owner to deter-
mine in advance if the project will be delayed by proposed changes.
Special care must be taken by the owner-operator who has assumed the risk of con-
tracting with various parties, such as equipment vendors and an erection contractor, to
complete the construction of the project. In these multi-prime contracting projects, the
owner is generally considered to assume duties analogous to those of the normal prime
(general) contractor with regards to schedule and coordination of the work. The owner-
operator’s responsibility in this regard includes taking steps to require timely completion
of one prime’s work to prevent delay or interference to another prime contractor, as well
as scheduling work in a way that will allow each subcontractor to perform economically
where their respective work physically interrelates with that of other subcontractors.

Documentation
Another important administration tool for avoiding risks on the construction project is
the creation, transmittal, control, and retention of project records and documents. During
construction, a construction owner should establish and maintain systems that (a) iden-
tify the type, quality, frequency, and distribution of the records to be handled, (b) ensures
that disciplined standards of documentation and proof are maintained, and (c) ensures
that records are being preserved daily on every element of project administration and
performance to permit a third party to reconstruct the project from the files, if necessary.
The records maintained on the project should include general correspondence, sched-
ules and updates, minutes of job or coordination meetings, daily and weekly reports,
memoranda for record, job diaries, progress photographs or videos, test and inspection