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Construction Contracts Common Interest Developments
1. Construction Defect and Litigation Attorneys
Robert P. Hall, Esq.
Construction Contracts Common Interest
Developments
Roles/Responsibilities of the
“Players” (Reference Document)
Spring 2014
2. PARTICIPANTS IN REPAIR RENOVATION
PROCESS ROLE/RESPONSIBILITIES
ARCHITECT
Predesign
Assist the owner and CM to determine the project
goals and requirements
Develop the project design
Coordinate the design consultants
Process entitlements related to design
responsibilities
Ensuring regulatory and code compliance
3. PARTICIPANTS IN REPAIR PROCESS ROLE/
RESPONSIBILITIES
ARCHITECT (Slide 2)
Work with the CM advisor to estimate construction
costs
Work with the CM advisor during constructability
reviews
Assist the CM advisor and owner with the
construction bidding and negotiation
Review and approve shop drawings during the work
If hired, offer limited coordination with the CM
advisor during the repair process (does not mean
engage in detailed review of the quality of the work)
4. PARTICIPANTS IN REPAIR PROCESS ROLE/
RESPONSIBILITIES
CONTRACTOR
Estimating and bidding the cost of construction
Obtaining entitlements related to construction such as building permits
Preparing shop drawings and other documents necessary to accomplish
the work
Providing the methods and means of construction
Coordinating the subcontractors
Job site safety
Coordinating with the CM advisor to establish and maintain the construction
schedule
Guaranteeing the quality of construction
Fulfilling the requirements of the construction documents
Correcting deficiencies covered by the guarantee
5. PARTICIPANTS IN REPAIR PROCESS ROLE/
RESPONSIBILITIES
CONSTRUCTION MANAGER
Keep the owner informed about the issues that arise
during the construction, including cost and schedule
with secondary implications for the project’s quality
– under this approach the owner obtains technical
support from the CM
The CM supervises the construction
The CM resolves any issues at the point of bidding
or negotiations such that the final results and the
final quality are relatively predictable
6. Why can’t an architect be the sole CM?
Consider industry approved language architect’s offer
from the American Institute of Architects (AIA) form of
agreement:
Specifically excludes an Architect conducting exhaustive or
daily inspections to check the contractor’s work
An industry gap surfaces:
Are architectural firms typically set up to play the CM role?
7. Construction Manager’s Core Services
If hired as an “adviser” to the owner, an experienced
construction manager (CM) should be considered an
“independent resource” with technical expertise who
through offering services can assist the owner
primarily related to risk management.
8. Construction Manager Core Services
The CM, who in turn has an architect in its employ:
Operates under a separate contract with the owner.
Protects owner given the gaps of service typically offered by
other participants in the construction industry such as
architects and contractors.
Manages the risk inherent in the construction industry.
Monitors the progress of the contractor and architect.
9. Construction Manager Core Services
The CM assists the owner reduce risk by:
Managing costs
Evaluating scope options
Scheduling the work
Delivering the quality of work that contract documents and
building codes require.
When a fee/cost comparison is made between what a “CM as agent”
of Owner can provide to protect the Owner as identified above, and
what an architect would charge to provide the exact “by contract”
service, most Owners cannot afford an architect to perform the same
role as a CM could offer
10. What are owner risk points?
Decisions such as choosing which project delivery to
adopt (best choice varies with each project):
Design-bid
Design build
Multi-prime and others.
Ensuring that quality controls are in place by contract/
applies to contractors and designers.
Ensuring that cost controls or pricing and budget limits
exist.
Ensuring that time or schedule controls exist.
11. What are owner risk points? (cont’d)
Setting up bid procedures and managing bid disputes.
Understanding and negotiating contract issues that
pose risk points to owners for every project (a
separate presentation).
Handling payment applications and lien releases to
ensure a “lien free” and “on budget” repair or
renovation job.
12. What are owner risk points? (cont’d)
Handling changed conditions and or change order
claims as well as delay claims by contractor.
Dealing with the potential for bad chemistry between
the project delivery team such as the architect and
contractor.
Managing close-outs issues and defects post project.
13. Ounce of Prevention (Lawyer fee-a minimal
Owner investment to manage risk)
Owners should consider hiring a construction lawyer
who:
Specializes in construction contracts.
Is knowledgeable on how defects occur.
Has a depth and breadth of experience with the construction
process:
Standards of care and practices of architects, engineers, and
contractors.
AIA contracts (a great industry benchmark for contract issues).
If lawyer hired to review all contracts, lawyer is in position to assist
Owner with a “bird’s eye” or elevated view of all contracts
14. Construction Defect and Litigation Attorneys
Robert P. Hall, Esq.Spring 2014
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