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This document offers a comprehensive recap of the key job site issues that impact project close-out processes. It details essential concepts such as the Acceptance and Withdrawal Period, Award of Notice to Proceed, Contract Agreements, Change Orders, and Progress Payments. The text emphasizes the importance of adhering to contractual obligations, managing delays, and ensuring proper documentation throughout the project lifecycle. Understanding these issues can help mitigate disputes and facilitate smoother project completions.
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Job Site Issues Module 09-01 November 9, 2014 CVEN 349 - Maxwell
Purpose • Recap some of the overall job site issues leading to project close out. CVEN 349 - Maxwell
Learning Objectives • Be able to list and describe briefly the following Job-Site Issues. CVEN 349 - Maxwell
1. Acceptance and Withdrawal Period • Bids are due at a specific time and place. • Bid security (bond) protects Owner from Contractor's failure to sign contract. • Acceptance Period protects Contractor from Owner’s delay in signing the contract. CVEN 349 - Maxwell
Award of Notice to Proceed • Consummates the relationship between the Owner and contractor. • Letter of Intent – a legally binding agreement to eventually sign a contract. • Establishes a Start Date. • Generally grants access to the work site. CVEN 349 - Maxwell
Contract Agreement • Pulls together: • Plans and specifications • Standard forms • Payment schedule • Standard Terms and Conditions • Any special or additional T&C’s, Forms, etc. • Processes for Change Orders, Time Extensions, Payment Schedule changes, etc. CVEN 349 - Maxwell
Time Extensions • Various reasons: • Design problems • Owner modifications • Strikes, Weather, Late Deliveries, etc. • Affects Progress Payments • No-Cost extensions are more likely in research or consulting. CVEN 349 - Maxwell
Change Orders • Any alteration of the formal agreement requires a Change Order. They may be needed: • To correct design and specification problems • Owners change their minds. • Conditions change – subsurface, new codes, technology, economy, etc. • Only the Owner or his official designee can sign a change order. • Since they are non-competitive in nature, they may be a “license to steal.” CVEN 349 - Maxwell
Suspension, Delay, or Interruption • For one reason or another, the Owner may order the Contractor to suspend or delay work. The Contractor will usually claim damages. • For one reason or another, the Contractor may delay job completion. The Owner will usually claim liquidated damages. They are hard to collect. CVEN 349 - Maxwell
Progress Payments and Retainage • Payments are based upon an agreed upon schedule of values, mile stones, or %-complete estimates. • Retainage is returned after the work is completed to the Owners satisfaction. CVEN 349 - Maxwell
8. Job Close Out • Completion of the work (Close Out) may be a contentious exercise. • The “Punch List” is used to protect both parties from unnecessary delays in establishing the actual completion date. • Completion of “Punch List” establishes the completion of the contract. CVEN 349 - Maxwell