Chapter 12: Contract Administration

Stakeholder- Anyone who has an interest in the outcome of the project.

1st Step- Identify the design team.
-The schedule
-Scope of work

Select Consultans -
Structural - electrical and mechanical engineers for example

SET UP FILES
-Keep complete records of project stages

Design Bid-Build
-          Traditional Approach
-          Steps
o        1 Designer Designs Project
o        2 Prepares Construction Drawing and Spec
o        3 Sent to Bidders
o        4 Lowest Bid Selected
o        5 Complete Construction

Construction Manager
-          Will act as agent for the owner.
-          CM’s are commonly used with “Fast Track” construction
NOTE: Can be useful with large projects.

Design Build
-          Design and Construction with one entity.
-          Example: Interior Designer that owns its own construction company or construction company that employs interior designers.

Contract Administration
-          All activities done by the Interior Designer while contract between owner and contractor is enforced.

Submittals
-          Shop Drawings
-          Control Samples
NOTE: The Submittals should by checked and signed by the contractor prior to sending them to the interior designer.

Rejecting Work
            NOTE: The interior designer does not have the right to reject furniture, furnishings, or equipment. Only the owner can reject that.

Claims
-          A claim is the owner or contractor seeking money or extra time.
-          A claim must be made in writing and must be done within 21 days of what prompted the claim.
-          Interior Designer must take action within 10 days of receiving the claim
-          After the final decision to the claim has been rendered the claim can be called into mediation within 30 days.
Two Types of Claims
-          Claims for Additional Time
-          Claims for concealed or unknown conditions

If a decision is not acceptable by both parties the claim goes into “MEDIATION” bringing in a 3rd party. If still not able to agree the claim goes into “ARBITARATION” a legal binding process.

Payment
-          Note: Retainage is usually about 10%
-          Warranties usually start on the date of substantial completion.

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