Page 241 - Urban Construction Project Management

Cha
pter Nine
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196 Chapter Nine
c. Disadvantages
• This type of contract is usually not used in the United States except for change
order pricing and small projects. It has not been accepted because the unit
prices may change as the job progresses. The unit price may not reflect the
actual condition in the field.
• Need auditing staff to keep track of all quantities (labor and material).
• Need good outside estimating company to complete the “take-offs.”
d. Suggested use
• For change orders.
• When simple elements (that are repetitive) are used in a project.
• T&M to be used where change order needs to be expedited and change is not
clearly defined.
• Small or maintenance-type projects.
• If a CM/GC has to be replaced.

CONTRACT SUMMARY

Whichever contract is selected, it behooves the PM to summarize the various contract
provisions. Exhibit 9-3 is a summary sheet for a GMP contract. Having this informa-
tion available gives the CM/GC a better understanding of the financial aspects of the
contract, the type of information and details that may be needed, insurance and bond
limits that are required by the subcontractors, and a list of any potential risk areas.

CONTRACT PROVISIONS THAT MUST BE REVIEWED
FOR CLARIFICATION

1. Owner’s responsibility
• Drawings and specifications (construction documents)
• Site layout
• Soil borings and site conditions
• Environmental reports and approvals
• Abatement of any hazardous material
• Special studies (traffic, water, utilities)
• Permits clarification
• Utilities
• Disputes with adjacent owners or municipality
• Testing responsibility
• Other areas where the owner has control and must submit the information