Page 247 - Urban Construction Project Management

202 Chapter Nine
• In order to protect the CM/GC, the allowance cost item must be clearly
defined (i.e., curtain wall is standard / in. insulated glass in aluminum
1
4
mullions that will be spaced 5 ft apart and can withstand a wind load of 60 lb/ft 2
with no air or water leakage. The total area of the curtain wall will be
2
80,000 ft ).
• When the drawings are complete (no drawings are 100% complete) and you
receive a bid from a subcontractor, the cost is going to be compared to the
allowance you developed. If the bid is lower, there is no problem. If the bid is
higher than the allowance, then the problems start. The CM/GC may be required
to pay the difference if the allowance was not clearly defined.
10. Construction documents
• The contract documents (drawings, specifications, addendums, bulletins, sketches)
must be listed with the latest revision dates.
• These documents will act as your base for the construction of the project.
11. Dispute resolution
• Some form of dispute resolution should be included in the contract.
• This would take the form of collaborating, arbitration, mediation, or a dispute
resolution board.
• If the parties do not agree to arbitration, they can end up in court.
• See Chapter 22 for more information on dispute resolution.
12. Construction acceleration
• If the owner has this provision in the contract, then the CM/GC must prepare a
cost (with inflation) that would account for the economic effect of finishing the
work earlier then anticipated.
• It is of utmost importance that the CM/GC does not proceed until a cost has been
negotiated with the owner.
• It must also be stipulated that at least 1 month would be required to obtain the costs
for acceleration.
13. Schedule
• The contract should be specific as to the time to complete the work (i.e., 100
workdays, no weekends or holidays).
• The approved schedule should be based on one that is submitted by the CM/GC
and approved by the owner.
• All holidays, weekends, and restrictive days (no work mandated by a municipal-
ity) must be noted on the schedule.
• Owner-provided equipment and finishes must also be shown on the schedule.
14. Approval process
• Be careful of clauses where the owner’s consultants will act as final and conclu-
sive arbitrators of any disputes that may arise. This will mean that an individual
who works for the owner will have the final say on a disagreement between the
owner and the CM/GC. See Chapter 22 for more information on dispute
resolution.