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Keys to a Successful Construction Contract

Keys to a Successful Construction Contract. Matthew D. Lowe, PE Chief, Reserve Section Louisville District 25 January 2011. Discussion Topics (w/ a focus on Small Business). Contractor Organization Contractor Schedule Partnering Changes/Modifications Miscellaneous

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Keys to a Successful Construction Contract

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  1. Keys to a Successful Construction Contract Matthew D. Lowe, PE Chief, Reserve Section Louisville District 25 January 2011

  2. Discussion Topics (w/ a focus on Small Business) • Contractor Organization • Contractor Schedule • Partnering • Changes/Modifications • Miscellaneous • Questions (10-15 minutes)

  3. Contractor Organization • Superintendent • Site Safety Health Officer • Training – OSHA 30-hour • Quality Control Manager • Training – CQM for Contractors • Key position to keep projects on schedule • AHA, Preparatory Meeting, Submittals, Deficiency List • Scheduler • Complex…and it affects payment!

  4. Contract Schedule • A whole specification section (Section 01320) • Line Items, Bid Items, Features of Work, etc. • Mandatory Milestones • Limits on duration (e.g. only 2% with activities greater than 20 days) • Cost Loaded…again, affects payment • Must be RMS/QCS compatible (SDEF) • Resident Management System • Quality Control System

  5. Partnering • Embraced by the Louisville District • Shared Cost • Not a “one-time” meeting • Not a substitute for day-to-day communication • Does NOT replace/change the contract • “In the spirit of partnering…” • If not in the contract, you can request it.

  6. Changes/Modifications • Not a negative impression on the contractor • Changes must be documented by formal mod • Trades, agreements, deals, etc. are NOT contractual • Protect yourself – notify changes in writing • Help yourself – provide a possible solution and state deadlines for responses • Show breakdown of cost for you and your subs

  7. Miscellaneous • Design-Build • Solid relationship between “design” and “construction” • Get subs involved early • Construction Contract Admin Support System • Request a copy of CCASS Evaluation • Nothing wrong with asking for a interim review • We want you to succeed!

  8. Questions?Matt LoweMatthew.D.Lowe@usace.army.mil502-315-6877

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