Getting Started and Other Preliminaries

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(No Transcript)
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Overview of Today

• Getting started
• Getting the Job
• Contracts
• Bidding Process

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Getting Started - Organizing the Team

• Assign roles and responsibilities
• May evolve over time
• Employ team building
• Can you afford to not to do it?
• Develop performance review procedures and criteria

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Getting Started - Assessment Background(taken
from D. Woods, Problem-Based Learning How to
Gain the Most from PBL)

• Assessment is judgement. We may
• equate it with exams
• dread and avoid it
• equate assessment of performance with assessment
  of our own personal value
• Assessment can
• help us improve and grow
• gives us a sense of accomplishment
• removes uncertainty

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Getting Started - Assessment Background(taken
from D. Woods, Problem-Based Learning How to
Gain the Most from PBL)

• To develop an assessment program
• Set explicit goals
• If you value a skill or behavior, express it as
  an observable goal
• Include measurable criteria
• Goal and criteria should be achievable with the
  recourses available
• Collect evidence to show satisfaction of goal

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Getting Started - Assessment Background(taken
from D. Woods, Problem-Based Learning How to
Gain the Most from PBL)
Yesterday Teds score was 85 for 18 holes. He
was particularly frustrated because on the 12,
par 3hole he had 7. Today Ted wants to improve
his performance on 12. He wants par.
Goal? Criteria? Achievable? Evidence?
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Peer Reviews Growth Through Feedback(taken
from D. Woods, Problem-Based Learning How to
Gain the Most from PBL)

• To improve, we need feedback. To function in a
  team, we need team/individual accountability. A
  goal is to corral the tendency to judge to learn
  how to respond to positive feedback and to learn
  how to give constructive feedback.

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Giving Positive Feedback for Growth(taken from
D. Woods, Problem-Based Learning How to Gain
the Most from PBL)

• Identify 5 strengths for every 2 things you feel
  they might wish to change.
• Provide positive feedback, often, honestly, and
  as soon as possible after the noteworthy
• Responding to positive feedback
• Thank you.

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Giving Negative Feedback(taken from D. Woods,
Problem-Based Learning How to Gain the Most
from PBL)

• Why
• Focus on the value it will be to the recipient
  rather than on the power or release it provides
• What
• Give the amount of information that can be
  productively used (rather that the amount you
  want to unload).
• Focus on behavior and not personality
• Separate people and personalities from the
  behavior

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Giving Negative Feedback(taken from D. Woods,
Problem-Based Learning How to Gain the Most
from PBL)

• What
• Focus on descriptions of behaviors and not advice
  or judgement
• Focus on observations rather than inferences,
  interpretations, conclusions.
• Focus on what was said and not why it is said
• Show ownership of ideas, opinions
• Cite a specific situation rather than the
  abstract
• No recriminations for past eventshere and now,
  not there and then.

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Giving Negative Feedback(taken from D. Woods,
Problem-Based Learning How to Gain the Most
from PBL)

• How
• Equality orientated rather than superiority
  orientated
• No shouting, table pounding, foul language or
  personal attacks
• When
• The recipient must be ready for itTime and place
  for everything.

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Responding to Negative Feedback(taken from D.
Woods, Problem-Based Learning How to Gain the
Most from PBL)

• Give feedback assertively
• Assume intent is to help you improve
• Thanks for your feedback. Resist the temtation
  to elaborate, justify, and rationalize.
• Take it with a grain of salt
• The Cant Please Everyone Rule
• 10 are going to hate you no matter what
• 10 will think you walk on water
• Look at the feedback from the middle 80.

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1. Handshake Exerciseand 2. Work-Out Class
Peer and Self-Evaluation Standards
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Getting Started - Organizing the Team

• Set team standards
• meetings
• unacceptable and acceptable behavior
• document standards
• Identify your resources
• team member skills
• also useful in project qualification reports
• computers and software
• Incorporate performance incentives
• Use some kind of TQM

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Total Quality Control the Small Project

• The more quality you build into anything, the
  more efficiency is improved, costs are reduced
  and profits increased.
• taken from the Manual for Special Project
  Management by The Construction Industry Institute
  Publication

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The TQM Process

• Quality is customer satisfaction (more than just
  conforming to reqts)
• External and internal customers
• Employee involvement
• team approach to problem solving
• Employee empowerment
• delegation of authority, responsibility and
  accountability
• No end to TQM
• continuous improvement

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The TQM Sub-Processes

• Strategic Planning
• vision and game plan
• Delivery
• implementing the strategic plans
• Improvement
• data on past performance fed back into planning

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Getting Ready to Get the Job

• Contracts
• Key role in defining the rules by which the
  construction industry operates
• Three necessary elements to a contract
• An Offer
• Acceptance
• Consideration

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Contract Offertaken from S. Bartholomew,
Construction Contracting

• Can be verbal or written, but must be
  sufficiently clear and definitive to be legally
  binding

Ill paint your house for a price of 3000
during the third week of September provided my
other work will let me. OR Ill paint your
house for a price of 3000. My price includes
scraping off all existing loose, flaking paint to
bare wood, priming bare wood with Sherwin
Williams exterior primer, and applying two coats
of Sherwin Williams exterior house enamel, colors
of your choice, one for the body and one for the
trim. Glazing work or repair of downspouts and
drains is not included. The work will commence
in the ..
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Contract Offer taken from S. Bartholomew,
Construction Contracting

• In general, no format is required, except
• Bids or Proposals
• Made in response to an advertised notice called
  an Invitation to Bid or a Request for Proposals
• Usually requires a specific format
• If not, considered a nonconforming offer

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Contract Acceptance taken from S. Bartholomew,
Construction Contracting

• A contract is not legally binding until and
  unless there is a meeting of the minds at the
  time the contract is formed
• Counteroffer A form of acceptance that changes
  the offer in any significant respect.
• Negotiation An exchange of offers and
  counteroffers.
• Acceptance may be written or oral
• IFBs, RFPs, or local statue adopting the
  Uniform Commercial Code must be written

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Contract Consideration taken from S.
Bartholomew, Construction Contracting

• A rational reason for entering into the contract
  and
• An expectation of receiving something of value
  for performing the contract satisfactorily.
• Money or some other equivalent cash goods
• I.e. discharge of an obligation

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Getting the Job

• The Bidding or Proposal Process
• Public-works contracts formal process
• Private much more informal

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Getting the Job - IFBs or RFPs

• Public call for sealed bids through
  advertisements
• issuing office, date of issue, date for receipt
  of bids and time of opening of bids
• brief description of work, location of project
• major work items and quantities
• where to get project information
• Private Notice to Contractors - invitation for
  bids issued by owner to a pre-selected group of
  contractors

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Getting the Job - Public Bidding Process

• Prequalification
• Submission of intent to bid and qualifications of
  bidding company
• Selection of bidders
• Pre-proposal meeting
• Preparation and Delivery of Proposal
• Proposal Guaranty
• Guarantee that bidder will execute the contract
  if awarded
• Certified check for of the bid

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Getting the Job - Bidding Process

• Private
• No formal procedure - at the discretion of the
  owner
• Bid securities not required
• Instruction to Bidders
• preparing and delivering the proposal

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Getting the Job - Contracts taken from S.
Bartholomew, Construction Contracting

• Two broad classes of contracts
• Establishes the method of payment
• Defines the risk of performance
• Cost-reimbursable or fixed-price terms
• Cost-reimbursable contracts
• Performed on owners funds, provider has little
  to no funds tied up in the contract
• Owner periodically reimburses the provided for
  incurred costs

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Cost-reimbursable Contract Forms taken from S.
Bartholomew, Construction Contracting

• Cost plus percentage fee
• also known as cost plus or time and materials
• many A/E design firms operate on this form
• owner reimburses for
• the costs incurred by the provided plus
• a fee equal to a stipulated fixed of the
  incurred costs.
• Potential abuse great
• the more money spent, the more earned.

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Cost-reimbursable Contract Forms taken from S.
Bartholomew, Construction Contracting

• Cost plus fixed-fee
• Used where firm pricing is not feasible
• project not definitive enough for firm pricing
• Owner reimburses all of providers costs plus a
  fee fixed at the beginning
• fee will not change unless scope of work is
  expanded by a change order.

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Cost-reimbursable Contract Forms taken from S.
Bartholomew, Construction Contracting

• Target Estimate Terms
• also known as cost plus incentive fee
• agreed upon estimate of costs for services plus
• a fee based on the target estimate
• contract parties will share in under-runs or
  over-runs according to some predetermined split

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Cost-reimbursable Contract Forms taken from S.
Bartholomew, Construction Contracting

• Guaranteed Maximum Price
• similar to CPIF
• GMP initial estimate of costs fee, BUT
• GMP is the owners maximum financial exposure
• once the owner has paid out the GMP, the provider
  must continue to perform at his expense until all
  agree-upon services have been provided.
• Popular in commercial residential construction
• encourages inflated prices (over actual estimate
  of costs) to protect the provider.

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Fixed-Price Contractstaken from S. Bartholomew,
Construction Contracting

• owner pays a stipulated fixed price regardless of
  what costs the provider is incurring
• financial risk borne by the provider
• greater risk greater profit potential
• the traditional form that todays construction
  contracts have evolved from
• what you bid what you thought v. what you
  did and what you got
• requires a definitive understanding of the scope
  of services to be provided
• complete, accurate set of plans and specifications

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2 Forms of Fixed-Price Contracts taken from S.
Bartholomew, Construction Contracting

• Lump-sum
• lump-sum price for the job as a whole
• paid in intervals (I.e. monthly) as work
  progresses
• sum of payments lump sum unless a change in
  work scope through a change order is made

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2 Forms of Fixed-Price Contracts taken from S.
Bartholomew, Construction Contracting

• Unit-price or schedule of bid items
• work broken down into bid items of discrete
  elements
• name, estimated quantity, unit of measurement,
  agreed fixed unit price, total price
• example BI 21 - Powerhouse Structural
  Excavation 10,200 cy _at_ 12.25 per cy 124,950
• determined by competitive bidding or negotiation
  prior to contract formation
• monthly contractor payment based upon
• the units of work completed as measured or
  counted times unit price
• differences between stated (during bidding) and
  measured quantities of actual work creates many
  problems

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Fixed-Price Contractstaken from S. Bartholomew,
Construction Contracting

• Standard forms of fixed-price, competitive bid
  prime contracts
• Federal government construction contract
• American Institute of Architects (AIA) Standard
  Form
• most widely used in public and private sectors
• Associated General Contractors (AGC) Standard
  Form
• State highway department contracts
• similar in format among the states
• influenced by the Federal Highway Administration
• Special provisions will vary from project to
  project and state to state

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Fixed-Price Contractstaken from S. Bartholomew,
Construction Contracting

• Typical documents in a fixed-price, competitive
  bid prime contracts
• Located in the Specifications
• Bidding documents
• General Conditions of the Contract (boiler-plate)
• Special Conditions (project-specific)
• Technical specifications
• Drawings
• Reports of investigations of physical conditions
• geotechnical studies