Construction, er make that CONTRACT, Administration services: a primer (law note)

[Update 12:42 pm ET, 11/3/11– CA is for Construction Contract Administration, or “Contract Administration” for short- thanks Liz O’Sullivan]

 One of the Architect’s responsibilities on a construction project is that of construction contract administration (“CA”).  While not every contract contemplates the architect performing a CA role, most commercial construction projects do.  What, exactly, should be included in the CA role?  The CA role can be whatever the parties agree upon.  In fact, the AIA A201 form contract documents anticipate that the architect’s role will be defined in an exhibit. 

Construction Construction Contract Administration
§ 4.2.10 If the Owner and Architect agree, the Architect will provide one or more project representatives to assist in carrying out the Architect’s responsibilities at the site. The duties, responsibilities and limitations of authority of such project representatives shall be as set forth in an exhibit to be incorporated in the Contract Documents.
What, then, should be included in the CA role assigned to the architect?  The nature of the construction administration role is project specific.  Some projects require a full-time on-site architect, a clerk of the works, or a weekly or bi-weekly site visit.  Because the nature of the CA role cannot be adequately described in a form document, it is especially critical that you take care to describe the specific CA duties assigned to the architectural team in detail.
site observation by architect
 
One of the main CA roles for the design team is that of site observation. Consider:
  • What frequency is contemplated for visits?
  • How long should those visits last? 
  • What is your role during such site visits?
I see many disputes that arise over a misunderstanding as to how often the architect should be on-site, and what his role is in observing the contractor’s work once he is there.  Again, being specific will only help you to avoid misunderstandings, possible litigation, or even extra liability later on.
 
Perhaps the most important concept to remember for your CA role on a construction project: never agree to “inspect” the contractor’s work.  Your role should be observation to see that the work is in general conformance with your design.  You cannot guarantee the contractor’s work (nor would such be insurable).  Therefore, be careful to use the word “observation” and not the word “inspect” in your CA description.
 
What have been your construction observation experiences? Drop me a line and tell me your story.  (And thanks to my many new readers to the blog this week!).
 
 
 
 Photo (c) Mark Hogan via CC.
 
 

 

Scope of your Design Services: Make Yours Detailed to Save Cavities Later! (Law note)

I’ve written in the past about the benefits of having not only an explicit Scope of Work, but also a set of Exclusions from the Scope of Work, in your proposals and contract documents.  Recently, this issue has come up again for me in the course of advising clients who are now facing litigation over whether or not a particular service was to have been part of their lump sum design fee.

scope mouthwash versus scope of services
Do you know what is in your Scope of Services?

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The Scope of Services (and related Excluded services) should be as detailed as possible.  Consider all of the typical issues that can derail a project, and address them upfront, such as:

  • Additional Services: are they needed? How are they compensated?
  • The Proposal v. the Contract Description—which prevails?
  • Value engineering issues — does the designer share the credit?
  • Extended construction: Is A/E paid for extended delays leading to additional on-site administration?
  • Contingencies & Assumptions included in the design?
  • Number of bidding rounds included in the A/E’s fee before additional compensation is due?
  • Delivery of Owner equipment (Fixtures, Furnishings & Equipment) and delays associated with same?
  • Safe harbor provisions for expected errors & omissions?

This is just a short list of items to consider when drafting your Scope of Services. Remember, an ounce of prevention is worth a pound of cure, so make sure your proposals and contracts have thought through the entire scope of possible services prior to starting work.

 Thoughts? What issues have you run into on construction projects that could have been prevented with a good Scope of Services provision?  Share below.  
 
 
 
Photo (c) mandolux via CC.

Learn to Negotiate Construction Contracts with no “Deal Breakers” (Tue Tip)

As I and others have said on this blog many times, contracts are extremely important in the construction world.  Deciding what contract terms you want, deal breakers, and which terms you can live with, is more of an art than a science.  Two upcoming FREE webinars deal with contract issues for design professionals:

First up, Traveler’s Insurance Company has a webinar entitled “Helping Design Professionals Build Better Contracts.”  The seminar presenters will discuss:

  • How to identify risk management issues associated with contracts
  • What terms are deal breakers
  • Which techniques to apply to better negotiate fair agreements
  • Why it’s important to implement contract risk management practices 

The webinar takes place Wednesday, October 19th, at 11:30 a.m. ET.  Although the webinar is free, registration is required.  To register, click here.  

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Next, the folks at Hall & Company are hosting a webinar entitled “Contract Negotiations for A/E Professionals,” and will cover:

  • the importance of the overall A/E contract; 
  • how contracts can impact your indemnity obligations;
  • how your contract can affect the standard of care and increase risk;
  • how your scope of work and mundane contract clauses can impact the A/E bottom line. signing contract
Their webinar takes place Tuesday, October 25, 2011 at 1:00 pm ET.Again, registration is required for their free seminar.  Register here.
 

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Photo: (c) Frank McMains via CC

Get your PDHs & HSW Units while meeting me! (Tue Tip)

Do you need PDHs, Contact Hours, or HSW Learning Units?  What about Continuing Education hours or CLE credits?

If so, make plans to attend the Law of Construction Defects & Failures seminar, presented by Halfmoon Seminars, on October 20, 2011 in Chapel Hill, NC

I’ll be one of the Faculty presenters, speaking on “Strategies for Reducing Defects & Failures.”

microphone

Here’s the full agenda.

The all-day course qualifies for credits as follows:

Architects: 6.0 Contact Hours (HSW)
AIA: 6.0 HSW Learning Units
Engineers: 6.0 PDHs
Contractors: 6.0 Continuing Education Hours
North Carolina Attorneys: 6.0 CLE Hours (No ethics or SA)

Hope to see you there!  If you do register, drop me an email and let me know you are coming so I can put a face with a name!

Photo credit: Scott Hodge via Creative Commons license.

Construction Contract Drafting– half price to my readers!

Following this week’s apparent theme of “what have you given me lately”  (part 3 coming tomorrow)…..

Did you know that, as readers of my blog, you can attend the upcoming webinar on Construction Contract Drafting for 50% of the retail rate?  Yeah, me neither.  Sorry I didn’t realize it earlier when I first mentioned this speaking gig, but regardless, if you hesitated signing up because of the cost……. now you have less of an excuse.

half off signs

Half off is *always* a good deal, whether buying battle axes, knives, swords, or continuing education credit! 

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To get the discount, you must register through this link.  You can also purchase recordings using the promo code:  ZDFCT .

Hope to “see” you on the webinar!

Melissa

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Photo: half off by Joseph Robertson via Creative Commons license.