Money makes the world go round. This is particularly true when it comes to a construction project. Think of all the different stakeholders involved and the different financial requirements of each:
- Sub Contractors
- General Contractor
- Owners juggling the financing
- Consultants and Project Managers
- Banks (covering everyone from employee mortgages, to general contractor loans, to project financing)
- Insurance and bonding agencies
- Material and equipment suppliers and manufacturers
And the list goes on.. so it should come as no surprise that every month the general contractor will submit a progress claim for work. Not to put pressure on the consultant, but once the progress claim is received it should take centre stage. Do you know what the critical milestones are to make sure the world continues to go round? Read More…
An addition to an existing school valued at around $1M was out to tender. This was Robert’s first major project after starting his own firm, and as a newly registered architect he was still feeling his way around the world of tendering and contract administration. This was also the first time he had written specifications by himself.
Everything was going pretty well with the tender, until Robert received a call from one of the bidders on the morning before the closing. The bidder asked if instead of providing a bid bond and the other bonds listed, could he just include a copy of his builder’s risk insurance policy?
It was a pretty good policy, he was paying a lot of money for it, so what was the use of doubling up on the insurance with bonding? The contractor explained that the contract security (bid bonds, performance bonds and labour and material bonds) were just different forms of insurance and that he could save the owner a lot of money by not having to provide them. “Trust me,” he said, “insurance was all that was needed.” Robert started to question himself and the spec he had written. What should he do? Read More…
Sometimes there is a bit of anxiety on the part of consultants on how far to go in the review of a shop drawing. This anxiety can be reduced by understanding a little bit of the purpose and intent of shop drawings along with the responsibilities of the contractor in the process. Read More…
It’s a pretty good chance that your construction project is going to encounter changes, and that you are familiar with the change order (CO) process, but on the odd occasion a change directive (CD) may be required. Do you know the difference? Test your knowledge – which of the following statements below are true?
A Change Directive…
- is issued by the owner
- does not need the contractor‘s agreement to proceed
- price can be determined by the consultant in event of a disagreement
- all of the above