Guidelines For A Successful Construction Project Table of Contents How to use this pdf: Clicking on an entry in the Table of Contents will take you directly to that Guideline. In a Guideline, clicking on a reference to another Guideline will take you to the referenced document. Mission Statement The Associated General Contractors of America, the American Subcontractors Association, and the Associated Specialty Contractors have agreed to work together to develop, maintain and promote Guidelines for a Successful Construction Project. The guidelines represent the joint efforts and approval of these organizations who will continue to address industry concerns as the need arises. A. Introduction & Overview 1. General Contractor-Subcontractor Relations.................................................................................................................1 2. Owner’s Ability to Pay ..................................................................................................................................................5 3. Contractor’s Payment Rights, Obligation, and Responsibilities ...................................................................................7 4. Design Responsibility....................................................................................................................................................9 5. Liaison Committees.....................................................................................................................................................10 B. Bidding Processes 1. Bidding Procedures......................................................................................................................................................11 2. Project Scheduling, Delays, and Liquidated Damages ...............................................................................................13 3. "Scope" Bidding for Private Work...............................................................................................................................15 4. Bid Shopping & Bid Peddling.....................................................................................................................................17 C. Pre-Construction Planning 1. Pre-construction Conferences......................................................................................................................................18 2. Partnering.....................................................................................................................................................................21 3. Reserved 4. Site Logistics ...............................................................................................................................................................24 D. Project Execution 1. Environmental Health & Safety a. Project Safety and Health........................................................................................................................................28 b. Unforeseen Environmental Problems in Construction...........................................................................................29 Guidelines for a Successful Construction Project. Copyright © 2003, The Associated General Contractors of America/American Subcontractors Association, Inc./Associated Specialty Contractors. i Table of Contents D. Successful Project Execution (cont.) 2. Coordination a. Communication.......................................................................................................................................................31 b. Project Meetings.....................................................................................................................................................33 3. Contract Administration a. Avoidance and Resolution of Construction Disputes .............................................................................................32 b. Benefits to the Owner of Effective Allocation, Delegation, and Performance of General Conditions Responsibilities ......................................................................................................................................................36 c. Consequential Damages..........................................................................................................................................37 d. Procedures for Change Orders................................................................................................................................39 e. Charges for Non-contracted Construction Services................................................................................................42 f. Prompt Payment ......................................................................................................................................................43 g. Guideline for Payment for Stored Materials and Equipment.................................................................................44 h. Purchase of Materials or Equipment by Owners....................................................................................................45 i. Overtime, Construction Costs and Productivity......................................................................................................46 j. Reserved k. Retainage.................................................................................................................................................................49 4. Quality Assurance/Quality Control a. Total Quality Management......................................................................................................................................50 b. Project Inspections..................................................................................................................................................53 c. Reserved 5. Project Closeout a. Project Closeout......................................................................................................................................................55 b. Punch List Procedures ............................................................................................................................................57 E. Appendix - Forms 1. Sub bid Proposal..........................................................................................................................................................58 2. Subcontractor ’s Application for Payment....................................................................................................................60 3. Work Authorization Form............................................................................................................................................61 4. Change Proposal/Order Form......................................................................................................................................62 Guidelines for a Successful Construction Project. Copyright © 2003, The Associated General Contractors of America/American Subcontractors Association, Inc./Associated Specialty Contractors. ii A.1 Guideline on General Contractor-Subcontractor Relations Preamble culture. Keeping everyone on a project working together in a harmonious fashion, without unduly delaying or The primary objectives of every general contractor and damaging others, is a highly complex task requiring the subcontractor are to successfully deliver to the owner the utmost coordination, cooperation, communication, and— specified project safely, on time, at the contract price and sometimes—compromise. As difficult as it may be, this achieve a reasonable profit in return for performance of is what makes a project profitable and the construction its work. Regardless of personal pride, business philoso- industry rewarding (see D.2.a.Communication and phy, contractual authority or years of experience, no gen- D.2.b.Project Meetings). eral contractor can deliver a project successfully without the cooperation of competent subcontractors. Each general contractor and subcontractor on a project should be regarded with equal respect. Each is an expert Similarly, no subcontractor, regardless of skill and experi- in its own field. Ethical conduct, regardless of contractu- ence in its specialty, can perform its work successfully al "rights" or ability to make another firm suffer, is essen- without the corresponding measure of cooperation and tial for harmony. The golden rule, "Do unto others as you leadership of a competent general contractor. would have others do unto you," is still the best guideline Both seek a business relationship on which they can in dealing with other individuals and businesses. depend. Usually, each wants to continue to do business Contractors should also assist architects, engineers and with the other on future projects as well as those at hand. owners by advising them, when requested, on relative Skill, integrity, fairness, trust, respect, and responsibility costs of alternates while plans are being prepared so as to will make the contractual relationship—now and in the reduce the number of alternates. future—possible, profitable and pleasant. The following guidelines, developed by the Associated Contract Documents General Contractors of America, the American Subcontractors Association, and the Associated Specialty A written contract document usually establishes the Contractors, provide suggestions for mutually profitable framework for the relationship between the general con- and ethical general contractor-subcontractor relations. tractor and