Disclaimer: The material covered in this class should not be construed as legal advice.
Major Contract Provisions
Project’
Cash
s Duration
Disbursements
Scheduling
Planning & Scheduling
Technique
5
Project Coordination Provisions
Kick-off
meeting requiring:
– Progress schedule
– Milestones
• Major procurements
• Major deliverables
– Major shutdowns
– Subcontractors and suppliers list
Similar
requirements on subcontractor
Cooperation among contractors
Planning & Scheduling
6
Schedule Provisions
Identification
of authoritative project schedule
Contractor to prepare, owner to approve
Responsibility for execution stays with contractor
Availability of the first version and updates
Level of detail
Progress payments associated with schedule
Schedule characteristics – CPM network
Reporting requirements
Planning & Scheduling
7
Example
“ No more than 30% of the monetary value of the project activities shall have float of less than seven days and no more than 20% of the monetary value of the project shall have zero float without prior written authorization of the
Owner.”
Planning & Scheduling
8
Schedule Provisions (Contd.)
Contractual
power to the owner to order an increase in workforce for delays
Short interval schedules
Limit on schedule changes that place requirements on owner
Planning & Scheduling
9
Float Ownership
Should
be addressed explicitly
Case of change by owner on a path with float
Conditions to define ownership
End of project “float” – difference between
Contractor’s anticipated completion date and contract date
Planning & Scheduling
10
Units of time
Working
days vs. calendar days
In construction – public owners tend to use working days while private owners use calendar days. Weekend day may be considered a working day if not clearly specified upfront
Durations defined by specific completion dates
“Usual anticipated disruptions” should be defined Planning & Scheduling
11
Late completion
Liquidated
damages - $/day
May be defined as losses per day to owner and not a specific amount
Planning & Scheduling
12
Other Provisions
Use
of completed portions of work (Beta release in software?)
Substantial completion
Delays (notice, avoidable vs. unavoidable)
Extensions
Submittals/ design and procurement approvals
Progress/ final payments
Suspension
Termination by contractor
Planning & Scheduling
constructed after the completion of project based on project logs
Delay found to be caused by owner on critical path of “as-planned” network
But, the critical path had shifted during execution due to contractor delays.
CPM used to determine the impact of multiple concurrent delays
Planning & Scheduling
17
Cases
Minmar
– Bar chart not acceptable since no
CPM chart was provided
Pathman vs. Hi-Way – CPM successfully used to identify cause of delay
Brooks Towers vs Hunkin-Conkey –
– Acceptance of cost of change order
– Silence on time
