Developing A Knowledge Management System for Construction Contract Management

M.A. Berawi, Civil Engineering Departement University Malaya Knowledge Management caters to the critical issues of organizational adoption, survival and competence in face of increasingly discontinuous environmental change. Essentially, it embodies organizational processes that seek synergistic combination of data and information processing capacity of information technologies, and the creative and innovative capacity of human beings" In that function Knowledge Management will be improve contract management and administration system to avoid or minimize losses that usually come from lingering and unmanaged contract dispute. ABSTRACT As Max Abrahamson wrote : "Contracts, codes, standards and regulations could use the language and forms nowadays best suited to construction. They could make clear in various ways that they are intended as practical guides to achieve the purposes of design and construction, and that intention is to be given paramount importance in their interpretation. With refinement those methods could help progress towards lawyers approaching contracts and codes on the construction industry's terms, not their own, and reduce construction semi-legal jargon on other minds and tongues." (Abrahamson, M., 1989) Many project are necessary for the development and industrial growth and benefits of technology transfer. But failure have occurred during or after the construction of some projects. A poorly construction management include contract management, project management or environment damage will be impact to unnecessary delays and incur expensive losses. Construction Firm in one country must be prepared of all the risk and managed project especially in this issue, contract management, to get estimated goal and survival. The management of knowledge for construction contract is promoted as an important and necessary factor for organizational survival and maintenance of competitive strength. The contract baseline includes the basic ingredients of a construction agreement. It is the documentation of the "meeting of the minds." It establishes two things: first, a starting point and second, a snap shot of the agreement at that moment in time. It signals the end of all prior negotiations and is the starting point for all future negotiations. All prior schedules, estimates, discussions of finishes, and details are moot if not included in the contract baseline documents. For a customer to determine what they want out of a project, the mind flits back and forth while weighing decisions; unfortunately, many conflicting options may emerge as the customer discovers what they want. Many times the contractor is "following the bouncing ball" as the customer explores the available options. The problems occur when the customer has discussed everything and anything and conclusions are not documented. INTRODUCTION Knowledge management involves the identification and analysis of available and required knowledge, and the subsequent planning and control of actions to develop knowledge assets so as to fulfil organizational objectives. Knowledge assets are the knowledge regarding markets, products, technologies and organizations which implementation in contract management, that a business owns or needs to own and which enable its business processes to generate profits. This is a strategic view of Knowledge Management that considers the synergy between technological and behavioral issues as necessary for survival in wicked environments. To Prepared what market and client needed as change of world and technology, this paper try to give information and developing a

Knowledge Management system for construction contract management for company to survive and get progress in new world business and construction area which make fast decision. Without a secure contract baseline and the initial meeting of the minds, the abilities of the construction firm may mean little when faced with the customer from the underworld. Establishing clear boundaries and starting points between customer and contractor will ensure the contractor's right in collecting money from delays and changes and if necessary enforce it with the law. The contract baseline is a tool for implementing sound leadership and management principles. Some of the documents included in a contract baseline are Contract documents (general and special conditions) Scope of work (technical specifications, drawings, and other relevant data) Contract schedule Site conditions (such as information furnished to bidders, soil and geology reports) Applicable laws and regulations (depending on the specifics of a project) A contractor cannot ignore the importance of the contract baseline. Because the contract and its documents will change over the course of the project (especially the schedule), it is important that the contractor be able to take note of these changes and to make claims on those that affect performance. For important thing to keep in construction and industry that to establish one of the main factors of contract baseline, the company must come up with an accurate and reasonable cost estimate. Aside from the obvious hard costs associated with construction projects, there are many hidden costs that can creep in and lay waste to the unwary contractor. Poor estimating and scheduling are two of the biggest causes of project failures. Construction estimates have some requirements that must be fulfilled: 1. A construction estimator. Whether this is the contractor, project manager, superintendent, or dedicated office estimator, it is a person who has the experience and qualifications to do the following: Pre-qualify and contact subcontractors, suppliers of products to solicit bids and proposals. Prepare quantity take-offs for various types and forms of construction. Determine general requirements needed for the project. Determine site conditions. Qualify unknowns and determine exclusions and allowances. 2. Quantities and cost. Whether this comes from the estimator's own job histories or from an outside source, an accurate cost base must be established: Historical labor cost records. Quantities of materials. Material quotes and unit prices. Job plan and schedule. Subcontractor's bids. Job site overhead (direct costs). Even though managing the money on construction projects is the focus of most project management "how to" books and management software, if they do not include some basic ingredients they are neglecting one of the most powerful tools available. A good job cost system monitors the "projected cost at completion" during the course of construction. This is different than an "after the fact" accounting of what it ultimately will cost. The "to date costs," "cost to complete," and "projected costs at completion" are three lines that are important indicators of the financial status of a project. They have a direct effect on each other and tracking them gives the ability to plan forwards and backwards during the project. The same is true with the financial aspect. Simply adding up all the costs after the fact only reveals how far on or off the budget was. This is important information, but if company are only doing "after the fact accounting", company are denying the conscientious project manager one of the most valuable tools in project management. Tracking costs and projecting final costs in the contract document during the course of construction is vital for the contractor who wants to be paid for all his work. Aligned with a good schedule,

tracking and projecting costs forms the powerhouse needed in managing the job, the customer, and the profits. The natural by-product that follows are projects that are completed on time and in budget as contract agreement. METODOLOGY and ANALYSYM Management of the construction process must be re-conceived from the purchase of a product (transactional contracting) to the execution of a production process (behavioral contracting). This dictates that the current standard construction contracting forms which are wholly based on the transactional contracting model, be revisited. There are several ways parties to any construction contract management can avoid or minimize costly contract dispute likes : Negotiate workable and fair contract language, avoiding inappropriate risk transfer (i.e., risk transfer to parties that cannot control the risk, or who are not being adequately compensated to justify assumption of the risk) Project Management team must knows and manage the contract administrative requirements. Develop and use, the day-to-day contract management control systems or procedures necessary to capture variances from baseline budgets and schedules with Knowledge Management. Be fair in all dealings with the other parties to make easier problem solve together. The clauses within a contract should fit together to form a logical whole, be procedurally correct and relevant to modern construction practice. The paper looks at the issue of clarity in the New Engineering Contract. One of the principal aims of the NEC was to achieve a higher degree of clarity compared to other existing contracts. According to the specification prepared for the ICE in 1987 (Martin Barnes Project Management, September 1987), clarity was to be achieved by : using simple and commonly occurring language and avoiding legal jargon; using identical phrases where possible; excluding contract specific data so that there is no need to change, delete or add to the core conditions of contract; setting out duties and responsibilities clearly and precisely, using engineering terminology common to all disciplines wherever possible; not attempting to paraphrase existing law; settling for clarity above fairness in minor matters which would involve complicated text and omitting matters which are more effectively covered in the technical specification. Additionally, it was aimed to have a more logical structure avoiding cross referencing between clauses, but treating procedures as processes and checking that they are logically complete by the use of flow charts and having a modular system of 'bolt on' optional clauses through which the contract can be tailored to meet the requirements of the project. It was intended to reflect modern and up to date construction practice - for instance, regarding subcontracting as the normal practice. However, in looking to see whether clarity of drafting affects the likelihood of disputes and conflicts arising, one must also remember that the NEC is also aimed to stimulate good project management, which should not only reduce the source of disputes, but also their impact - therefore it is hard to completely separate the effects of clarity and the stimulus to good project management.

An historical model

Relation type

Duration

Participants

In order to set a framework for the analysis of contracting deficiencies and the future of construction contracting it may be helpful to consider country historical model set against a spectrum of project types. The nations would find their construction industries somewhere else along the continuum, arguably the sequence of events may not differ substantially. Frame work

A construction order is a contract for doing a certain type of work. The nature of the work to be done drives the design of the production control system (Melles and Wamerlink 1993). Construction work may range from slow, certain, and simple (stodgy) to quick, uncertain, and complex (dynamic). Managing stodgy work is quite different from managing dynamic work. Further, the relationship among the organizations involved in performing that work must also change. There are three levels upon which this needs to be examined: the nature of work to be done, the system for managing that work, and the organizational structure and relationships between the parties.

A framework and (most urgently) to spur discussion of the hindrance of transactional contracting to the future success of lean Construction on a broad scale with knowledge management. To move forward the following must happen : 1. Develop production control models appropriate to dynamic projects. Consider such issues as: The nature and extent of uncertainty Planning hierarchy: extent and detail of each level Distribution of mobilization (lookahead planning) and allocation (commitment planning) decision functions Integration of production control systems throughout the supply chain Make/Buy decisions; i.e., when/what to subcontract Investing in flexibility in the form of multi-skilled labor or multi-functional tools Buffer sizing and location for intermediate product (schedule buffers), materials, and excess production capacity Handoff management; i.e. improving/assuring the quality and timeliness of handoffs between production units 2. Direct partnering to the design and management of production control systems; include opportunity exploitation as well as problem solving. Current contracts and mental models are obstacles to improved performance both as regards problem solving and as regards opportunity exploitation. Partnering has been primarily oriented to problem solving, the key to which is flexibility, especially on dynamic projects. For example the supply chain depends on knowledge management of diverse areas including raw materials, planning, manufacturing and distribution. Partnering has hardly addressed the opportunities for supply chain performance improvement that are now all but invisible, and the key to which may well be solving the riddle Who pays, who gains? 3. Embrace the trend toward cost reimbursable contracts with performance-based fees, but for dynamic projects, treat performance as participation on the project team as opposed to exceeding predetermined cost or schedule goals. 4. Explore structuring incentives that promote increased plan reliability. It is arguable that feeonly general contractors and construction managers have no incentive to maximize the productivity of specialty contractors. Consequently, insufficient investment is made in proactive production planning and control, resulting in low plan reliability, i.e. a low probability that work assigned to a specialty contractor can be done productively or at all. Obviously, this failure to maximize specialty contractor productivity within the constraints of project objectives is a failure to improve total project performance. 5. Further develop the implications of relational contracting for contract design. How can/should contracts be structured to exploit the tremendous opportunities for performance improvement? This must include pragmatic appreciation of the resistance that will be felt from traditional sources of standard contracts, internationally. It must also recognize that this will likely meet with more virulent opposition from the legal professions than did ADR and Partnering. 6. Identify the likely allies in the effort to revise current contracting to move it toward the relational end of the axis. Keep in mind that the strongest support for other innovations have come from unexpected and indirect sources . From describe of construction contract management above, the contractor, owner and architect must remember that they share a common goal which is the successful completion of the project. (see appendix Knowledge Management system for construction contract administration)

CONCLUSION The management of knowledge is promoted as an important and necessary factor for organizational survival and maintenance of competitive strength as market and client needed. In that function knowledge management will be improve contract management and administration system to avoid or minimize losses that usually come from lingering and unmanaged contract dispute. Considering knowledge management System and development of the standard construction forms, it would be unsurprising if the standard of drafting and clarity, in the broadest sense, was as good as it could be. This appears to be confirmed by comments of the courts, legal commentators and the actual daily users of the contract who all appear to be of the opinion that it could be improved. The management of construction company shall thoroughly review the complete set of documents, collectively referred to as the contract documents, and modify the construction administration procedures for each project accordingly. The contractor, owner and architect must remember that they share a common goal, which is the successful completion of the project. Construction firm must be prepared of all the risk and managed project especially in this issue, contract management, to get estimated goal and survival to pretend and through competition in global market. All prior schedules, estimates, discussions of finishes, and details are moot if not included in the contract baseline documents. Without a secure contract baseline and the initial meeting of the minds, the abilities of the construction firm may mean little when faced with the customer from the underworld.

REFERENCE Contracts Referred to are : ACE : Form of Agreement and General Conditions of Contract for use in connection with Work of Civil Engineering Construction. Published in 1930. NEC : The Institution of Civil Engineers. (1993) The New Engineering Contract - First Edition. Thomas Telford Services Ltd. - Black Book. - Guidance Notes. - Flow Charts. JCT : Joint Contracts Tribunal. A family of standard forms of contracts published by the Building Employers Federation. ICE : Conditions of Contract and Forms of Tender, Agreement and Bond for use in connection with Works of Civil Engineering Construction. Various editions from 1945 onwards. Joint IMechE / IEE Committee on Model Forms of General Conditions of Contract. MF/1, MF/2 & MF/3. Institution of Electrical Engineers. Other References : Abrahamson, M W. Engineering Law and the ICE Contracts. 4th Edition. Applied Science Publishing Limited. 1979 Abrahamson, M W. Risk Management. Construction Insurance and Law. FIDIC,. 1983. Abrahamson, M W. Risk Problems relating to Construction. Paper from Construction Contract Policy - Improved Procedures and Practice.- Edited by John Uff and Phillip Capper. Centre of Construction Law and Management, King's College, London. 1989. Maria Mrtensson ,Journal of Knowledge Management; 04: 3 2000; pp. 204-216 Ian Vickridge,Peter Woods, Seminar of property Development, Malaysia. Hamzah A Rahman,Peter Woods,Natalya s,SFOC driven Project and PDRM fo Const.,Malaysia Chin Chong Kee, The effects of management thesis,Malaysia,1996 Pond, Robert A. (1996) Underground contracts for the 21st Century, Civil Engineering, American Society of Civil Engineers, December. Howell, Greg; Miles, Robert; Fehlig, Charlie and Ballard, Glenn (1996) Contracting for lean performance: contracts and the lean construction team, Presented at the 1996 annual IGLC Conference in Birmingham, England. Graham RJ, Project Management Combining Technical and behavioral Approaches for effective Implementation, Van Nostrand Co,1985 Atefeh Sadri McCampbell, Linda Moorhead Clare, Scott Howard Gitters Knowledge management: the new challenge for the 21st century, Journal of Knowledge Management; 03: 3 1999 Nick Bontis, William Chua Chong Keow, Stanley Richardson Readability Intellectual capital and business performance in Malaysian industries, Journal of Intellectual Capital; 01: 1 2000 The Comprehensive Guide to Construction Contract Administration, Journal Paper,2001 Bruce Gold, Knowledge and its Construction, Journal paper 2001

APPENDIX

Knowledge Management System for Construction Contract (Administration, Procedure and Job description)
The management of construction company shall thoroughly review the complete set of documents, collectively referred to as the contract documents, and modify the construction administration procedures for each project accordingly. The contractor, owner and architect must remember that they share a common goal which is the successful completion of the project. With knowledge management system, a good-fair contract document is essential and should provide a clear roadmap on how issues are to be addressed, e.g., how project documentation and record management can being control, how payments will be issued, how change orders will be processed, etc. Some step will make successfully project as consider: STEP 1 - SCOPE OF PRE-CONSTRUCTION SERVICES In the bidding or negotiations phase the owner and the architect, respectively, following the owner's approval of the construction documents and of the most recent statement of probable construction cost, shall provide those services designated in the schedule of designated services necessary for the architect to assist the owner in obtaining bids or negotiated proposals and in awarding and preparing contracts for construction. In the case of phased construction, the owner may authorize bidding and/or negotiation of portions of the work prior to completion of the construction documents phase. The following descriptions shall apply to those services assigned in the schedule of designated services as the responsibility of the party indicated therein. 1.01 Project administration services consist of the following bidding or negotiation Administrative functions: Construction Research Conferences Communications Travel Time Progress reports Direction of the work of in-house architectural personnel. 1.02 Disciplines coordination / document checking services consist of bidding or negotiation activities for: Coordination between the architectural work and work of engineering and other involved disciplines for the project Review and checking of documents prepared for the project. 1.03 Agency consulting/review/approval services during the bidding or negotiations phase relating to applicable laws, statutes, regulations and codes of regulating entities relating to the owner's interests before construction begins. 1.04 Owner-supplied data coordination services consisting of activities relating to bidding or negotiation including: Review and coordination of data furnished for the project as a responsibility of the owner Assistance in establishing criteria Assistance in obtaining data

1.05 Bidding materials services consisting of organizing and handling bidding documents for: Coordination Reproduction Completeness review Distribution Distribution records Retrieval Receipt and return of document deposits Review, repair and reassembling of returned materials. 1.06 Addenda services consisting of preparation and distribution of addenda as may be required during bidding or negotiation and including supplementary drawings, specifications, instructions and notices(s) of changes in the bidding schedule and procedure. 1.07 Bidding/Negotiations services consisting of: Assistance to owner in establishing list of Bidders or proposers Prequalification of bidders or proposers Participation in pre-bid conferences Responses to questions from bidders or proposers and clarifications or interpretations of bidding documents Attendance at bid opening(s) Documentation and distribution of bidding results 1.08 Analysis of alternates/substitutions services consisting of consideration, analyses, comparisons, and recommendations relative to alternates or substitutions proposed by bidders or proposers either prior or subsequent to receipt of bids or proposals. 1.09 Special bidding services consisting of: Attendance at bid openings, participation in negotiations, and documentation of decisions for multiple contracts or phased construction Technical evaluation of proposals for building systems Participation in detailed evaluation procedures for building systems proposals Bid evaluation services consisting of: validation, participating in reviews and evaluation of Bids or proposals, recommendation on award of contract(s) and participating in negotiations prior to or following decisions on award of the contract(s) for construction. 1.10 Construction contract agreements services consisting of: Notification of contract award(s) Assistance in preparation of construction contract agreement forms for approval by owner Preparation and distribution of sets of contract documents for execution by parties to the contract(s) Receipt, distribution and processing, for owner's approval, of required certificates of insurance, bonds and similar documents Preparation and distribution to contract(s), on behalf of the owner, of notice(s) to proceed with the work.

STEP 2 - SCOPE OF CONSTRUCTION CONTRACT ADMINISTRATION SERVICES In the construction contract administration phase the owner and the architect, respectively, shall provide those services designated in the schedule of designated services necessary for the administration of the construction contract as set forth in the general conditions of the contract for construction. Unless otherwise provided in the schedule of designated services, the administrator's duties and responsibilities during construction shall be as set forth in the agreement between owner and administrator for designated services. The following descriptions shall apply to those services assigned in the schedule of designated services as the responsibility of the party indicated therein. 2.01 Project administration services consisting of construction contract administrative functions including: Consultation Research Conferences Communications Travel Time Progress report Coordination of out-of-normal-sequence construction operations Coordination of multiple-prime construction contracts Coordination of work by the owner's forces Direction of the work of in-house personnel. 2.02 Disciplines coordination/document checking services consisting of construction contract administration activities for: Coordination between the architectural work and the work of engineering and other involved disciplines for the project. Review and checking of documents prepared for the project. 2.03 Agency consulting/review/approval services During the construction contract administration phase relating to applicable laws, statutes, regulations and codes of regulating entities relating to the owner's interests during construction of the project. 2.04 Owner-supplied data coordination services consisting of activities relating to construction contract administration including: Review and coordination of data furnished for the project as a responsibility of the owner Assistance in establishing criteria Assistance in obtaining data Coordination of delivery and installation for owner-supplied equipment Coordination of delivery and installation of owner-supplied furniture and furnishings. 2.05 Office construction administration services consisting of: Processing of submittals, including receipt, review of, and appropriate action on shop drawings, product data, samples and other submittals required by the contract documents Distribution of submittals to owner, contractor and/or architect's field representative as required Maintenance of master file of submittals Related communications.

2.06 Construction field observations services consisting of visits to the site at intervals appropriate to the stage of construction or as otherwise agreed in writing to become generally familiar with the progress and quality of the work and to determine in general if the work is proceeding in accordance with the contract documents, and preparing related reports and communications. 2.07 Project representation services consisting of selection, employment and direction of: Full-time project representative(s) Part-time project representative(s) 2.08 Inspection coordination services relating to independent inspection and test agencies, consisting of: Administration and coordination of field testing required by the contract documents Recommending scope, standards, procedures and frequency of testing and inspections Arranging for testing and inspection on owner's behalf Notifying inspection and testing agencies of status work requiring testing and inspection Evaluating compliance by testing and inspection agencies with required scope, standards, procedures, and frequency Review of reports on inspections and tests and notifications to owner and contractor(s) of observed deficiencies in the work. 2.09 Supplemental documents services consisting of: Preparation, reproduction and distribution of supplemental drawings, specifications and interpretations in response to requests for clarification by contractor(s) or the owner and as required by construction exigencies Forwarding owner's instructions and providing guidance to the contractor(s) on the owner's behalf relative to changed requirements and schedule revisions. 2.10 Quotation requests/change orders services consisting of: Preparation, reproduction and distribution of drawings and specifications to describe work to be added, deleted, or modified Review of proposals from contractor(s) for reasonableness of quantities and costs of labor and materials Review and recommendations relative to changes in time for substantial completion Negotiations with contractor(s) on owner's behalf relative to costs of work proposed to be added, deleted, or modified Assisting in the preparation of appropriate modifications of the contract(s) for construction Coordination of communications, approvals, notifications, and record- keeping relative to changes in the work. 2.11Project schedule monitoring services consisting of monitoring the progress of the contractor(s) relative to established schedules and making status reports to owner. 2.12 Construction cost accounting services consisting of: Maintenance of records of payments on account of the contract sum and all changes thereto Evaluation of applications for payment and certification thereof Review and evaluation of expense data submitted by the contractor(s) for work performed under cost-plus-fee arrangements 2.13 Project closeout services initiated upon notice from the contractor(s) that the work or a designated portion thereof which is acceptable to the owner, is sufficiently complete, in accordance with contractor documents, to permit occupancy or utilization for the use for which it is intended, and consisting of:

A detailed inspection with the owner's representative for conformity of the work to the contract documents to verify the list submitted by the contractor(s) of items to be completed or corrected Determination of the amounts to be withheld until final completion Securing and receipt of consent of surety or sureties, if any, to reduction in or partial release of retainage or the making of final payment(s) Issuance of certificate(s) of substantial completion. Inspection(s) upon notice by the contractor(s) that the work is ready for final inspection and acceptance. Notification to owner and contractor(s) of deficiencies found in follow-up inspection(s). Final inspection with the owner's representative to verify final completion of the work Receipt and transmittal of warranties, affidavits, receipts, releases and waivers of lien or bonds indemnifying the owner against liens Securing and receipt of consent of surety or sureties, if any, to the making of final payment(s). Issuance of final certificate(s) for payment.

PHASE 3 -SCOPE OF POST CONSTRUCTION SERVICES In the post construction phase the owner and the architect, respectively, shall provide those services designated in the schedule of designated services necessary to assist the owner in the use and occupancy of the facility. The following descriptions shall apply to those services assigned in the schedule of designated services as the responsibility of the party indicated therein. 3.01 Project administration services consisting of post construction administrative functions including: Consultation Research Conferences Communications Travel Time Progress report Direction of the work of in-house personnel. 3.02 Disciplines coordination/document checking services consisting of post construction activities for: Coordination between the architectural work and the work of engineering and other involved disciplines for the project Review and checking of documents prepared for use or occupancy of the project. 3.03 Agency consulting/review/approval services relating to applicable laws, statutes, regulations and codes of regulating entities that require compliance during post construction use, occupancy and operation. 3.04 Owner-supplied data coordination services consisting of post construction activities during occupancy and operation relative to owner-supplied furniture, furnishings and equipment. 3.05 Maintenance and operational programming services consisting of: Assistance in the establishment by the owner of in-house or contract program(s) of operation and maintenance of the physical plant and equipment Arranging for and coordinating instructions on operations and maintenance on equipment in conjunction with manufacturers' representatives

Assistance in the preparation of operations and maintenance manual(s) for the owner's use.

3.06 Start-up assistance services consisting of: On-site observation, troubleshooting and assistance in the operation of building systems during initial occupancy Assistance in the training of the owner's operation and maintenance personnel in proper operations, schedules, and procedures Administration and coordination of remedial work by the contractor(s) after final completion. 3.07 Record drawings services consisting of: Making arrangements for obtaining from contractor(s) and other parties information certified by them on all changes made during construction from the initial contract documents and on the location of concealed systems as installed during construction Review of general accuracy of information submitted and certified to by the contractor(s) Preparation of record drawings, based on information furnished by the contractor(s), including significant changes in the work made during construction Transmittal of record drawings and general data, appropriately identified, to the owner and others as directed. 3.08 Warranty review services consisting of: Consultation and recommendation to the owner during the duration of warranties in connection with inadequate performance of materials, systems, and equipment under warranty Inspection(s) prior to expiration of the warranty period(s) to ascertain adequacy of performance of materials, systems, and equipment Documenting defects or deficiencies and assisting the owner in preparing instruction to the contractor(s) for correction of noted defects.

PRE-CONSTRUCTION PRE-CONSTRUCTION MEETING AGENDA

Following the acceptance of the successful bid and subsequent award of the contract for construction, the owner, contractor and administrator (project management) shall schedule and attend the pre- construction meeting. The purpose of the pre- construction meeting is to discuss the specific requirements of the contract documents and how they relate to the daily operation of the construction project. The following is a sample agenda for the pre-construction meeting and should be edited to conform to the specific requirements of each project. Items listed in the sample agenda are more comprehensively discussed later in this manual. AGENDA FOR PRE-CONSTRUCTION MEETING 1. INTRODUCTIONS a. Owner, architect, engineers, contractor, contract administrator. 2. COMMUNICATIONS a. All communications between the owner and the contractor shall be in writing to the owner and/or architect, routed through the administrator. b. All "Requests for Information" (RFI's) shall be in written form to the owner and/or architect routed through the administrator. All responses from the owner and/or architect will be in writing addressed to the contractor's project manager. c. All RFI's shall be consecutively numbered and include specification reference number. 3. BOND, INSURANCE & NOTICE TO PROCEED a. Submit for review, performance and payment bonds. b. Submit required insurance certificates. c. Notice of commencement filed by owner d. Approval of contractor pre-construction documentation is required prior to owner's issuance of notice to proceed. 4. PLANS AND SPECIFICATIONS a. Number of sets provided shall be as per the contract documents. b. Contractor is responsible for all subcontractors having all addenda, ASI, change orders, and using correctly updated contract documents in the field. c. Any discrepancies in the plans, specifications, or details must be brought to the architects attention and clarified prior to installation of the work. Assumptions will not justify improper work. d. All field sets of drawings shall be made available for review by the administrator at all times. 5. SCHEDULE OF VALUES a. Submit to architect within eight (8) business days of award of contract. (Form AIA G703). b. Schedule of values shall be broken down into each division of the work and will become the basis for change order pricing and payment request review. Multiple buildings shall be broken down individually. 6. PROGRESS SCHEDULE a. Submit in approved form (CPM, PERT, BAR). b. Submit revised, updated schedule with each payment requisition. No schedule = No payment. c. Submit submittal schedule for ease of tracking critical path or long lead items.

7. MONTHLY JOB MEETING a. Set time, date, and location (on site). b. Includes owner, general contractor and administrator. 8. SHOP DRAWINGS a. Contractor will review, sign and stamp all submittals to the architect. Failure to do so will result in a "Submittal Return Notification" with no action taken on that particular item. b. Only two sizes will be accepted (8 1/2" x 11" and 24" x 36"). c. Shop drawings: Submit four blue lines (4) and one (1) reproducible transparency. Contractor will print all required blue lines. d. Product data and catalogs: submit eight (8) copies of each specified item, hi- lited or clouded in red. e. Contractor is responsible for coordination and interface of materials when shop drawings differ from information on plans. Deviations from plans or specs shall be brought to the approver's attention in writing. f. NOTICE: Mechanical, Electrical, and Plumbing submittals must be complete. They shall be in ring type binders with Index I.D. tabs and hi-lighted cut sheets. Anything less than a complete submittal will be returned stamped "INCOMPLETE". g. All submittals shall include the specification reference number. 9. SUBSTITUTIONS OF MATERIALS a. Proposed substitutions of materials must be submitted to the architect for approval prior to bid opening. **(This requirement may vary, check general and supplementary conditions of contract to verify) b. Substitutions will not be accepted without credit to owner in time or money. **(This requirement may vary, check general and supplementary conditions of contract to verify) 10. COORDINATION OF THE WORK a. The contractor is responsible for coordination of all elements of the work and every aspect of the coordination of the subcontractors work. b. Each subcontractor is required to have a competent supervisor in charge of the work at all times. c. Subcontractors shall verify their work to the contractor for compliance with the contract documents, workmanship and completeness. d. Any minor changes in the work shall be promptly transferred to the record drawings. 11. GENERAL SUPERINTENDENT a. Contractor shall submit resume and historical data for project manager, superintendent and assistant superintendent. b. Superintendent shall be on site at all times when work is in progress. 12. FIELD OFFICE a. Furnish per contract documents. 13. SIGNS a. Furnish per contract documents. 14. TEMPORARY UTILITIES a. Construction water furnished per contract. b. Temporary toilets furnished per contract. c. Temporary electricity furnished per contract. d. Temporary telephone furnished per contract.

15. RECORD DRAWINGS - AS BUILTS a. Must be updated weekly and will be reviewed at each progress payment meeting. b. Record drawings will be supplied to owner upon completion as per contract. 16. OBSERVATIONS - SCHEDULE ON SITE a. The administrator shall be on site at regularly scheduled intervals, for additional observation, one day (24 hrs.) notice shall be required. 17. SURVEY a. Contractor shall engage a professional surveyor or engineer of verify property survey and building lay-out information shown on drawings and advise owner and/or architect of any deviations. b. Provide a survey of the building foundation locations immediately upon completion of that phase of construction to verify actual building location. c. Prior to substantial completion provide final property survey showing all significant improvements on the property which have resulted from the construction contract. Verify finish floor elevations to architect in writing per contract documents. 18. SOIL, CONCRETE AND OTHER TESTING a. Testing as required by contract documents. b. Testing lab to provide services at general contractors request. c. Additional testing may be requested by the owner and/or architect, failed tests paid for by general contractor. d. Testing lab to provide copies of all test reports to architect and owner per contract documents. 19. REQUISITION FOR PAYMENT a. Architect will review percentages of work complete, in place and/or properly stored prior to general contractor preparing form G702 in final form at monthly job meeting. b. Review as-built drawings. c. Submit updated progress schedule and schedule of values with each requisition per contract. d. Submit lien releases as required by the contract. e. Correct all non-conforming work prior to next payment requisition, including submittal requirements. f. Invoices required for all stored materials shall be included in payment requisition. 20. CERTIFICATE FOR PAYMENT a. Architect shall forward to the owner application for payment within three (3) days of receipt. b. Four (4) copies: owner (2), architect (1) contractor (1) c. All supporting documents must accompany payment requisitions. d. Notarized documents as required, and contractor's signed statement verifying payment of previous request items. 21. PROPOSAL REQUESTS (PR), CHANGE ORDERS (CO), ARCHITECTS SUPPLEMENTAL INSTRUCTIONS (ASI), AND CONSTRUCTION CHANGE DIRECTIVES (CCD) a. Owner must authorize all change orders prior to commencement of work. b. Architect to submit proposal requests responses to owner for review and directions. c. Proposal requests will not be accepted without proper backup information as per GC Article. d. Change orders shall be prepared from and upon owners approval of proposal request. e. Architects Supplemental Instructions (ASI's) shall be used to document minor, no cost changes in the work. f. Construction change directive shall be utilized (with owner approval) when changes in the contract are required and the costs for the additional work cannot be agreed upon by the owner,

contractor and architects. This action is usually taken to prevent delays in construction while costs are reviewed and negotiated. 22. STORED MATERIAL POLICY a. The owner will pay for stored materials only under the following condition and terms: 1. Materials requiring long lead time for ordering. 2. Payment for materials stored and protected at site will take place only upon receipt of complete backup documentation attached to each pay request. 3. The following pay request will include proof of payment to suppliers and subcontractors. 4. Materials stored off-site shall be in an independent bonded warehouse at no cost to the owner, with prior approval of owner. 23. DAILY LOG (CONTRACTOR) a. The following shall be included in daily log: 1. Daily activities 2. Problems or potential delays 3. Temperatures, general weather 4. Accidents 5. Meetings and significant decisions 6. Unusual events (stoppages, emergency actions) 7. Change orders received, implemented 8. Partial completion 9. Orders/Requests by governing agencies 10. Submit daily log weekly to administrator. 24. ACCESS TO SITE a. The contractor has the responsibility to provide and maintain per contract documents. 25. AGENCIES HAVING JURISDICTION a. City, County, State, Health Department, FDOE, School Board, Utilities, DER, SWFWMD (as required). 26. NON-COMPLIANCE NOTICES a. The contractor is responsible for verifying that all work complies with the contract documents. b. Any work observed as defective or non-complying shall be recorded by the administrator on a non-compliance notice. c. All non-compliance work not corrected and approved by the next pay request shall be deleted (line item) from that and subsequent pay requests until corrected. 27. FINAL COMPLETION AND PROJECT CLOSE-OUT a. Final acceptance and project close-out will not take place until all contract requirements, warranty and close-out documents along with all punch list items have been resolved.

CONSTRUCTION DOCUMENTS and OWNER/CONTRACTOR MEETING

Following the construction meeting and prior to beginning construction the administrator or owner and/or architect, will verify that the following documents have been properly executed between the owner and the contractor: 1. "Notice of Commencement" from owner 2. "Notice to Proceed" from the owner. 3. Property survey from the owner. 4. Permits, licenses and governmental approval as required. (i.e. SWFWMD, County, State and DER) 5. Insurance coverage and bonds as required by the contract documents. NOTICE OF COMMENCEMENT The notice of commencement is a legal document, which is prepared by the owner's attorney or financial lending institution and recorded with the clerk of the county court. The purpose of the notice of commencement is to provide at the project site and on public record the name of the owner, contractor and surety, so that those wishing to file notice to owner may do so to the appropriate parties. NOTICE TO PROCEED Work to be performed under the owner/contractor agreement generally commences on the date specified in a notice to proceed, as established in the general conditions of the contract for construction. The notice to proceed should not be issued until the following documents (or copies thereof) have been received and reviewed by the owner and/or architect: 1. Evidence to the contractor of satisfactory financing for the project, or sufficient funds available, by the owner. 2. Recording of the notice of commencement. 3. Issuance of a building permit(s) by the applicable governing authorities. 4. Certificate of insurance from the contractor as specified in the owner/contractor agreement. 5. Performance and payment bonds. The owner and/or architect shall recognize that the "Date of Commencement" is the official date for the start of the construction project and is specifically identified in the notice to proceed. The contractor should not necessarily be expected to commence work on the very date the notice to proceed is issued unless the contractor has had adequate time to mobilize his resources and equipment to the site. SCHEDULES FOR CONSTRUCTION Project management will receive and review the following schedules from the contractor prior to processing the first application for payment: 1. Schedule of values The Schedule of values shall be prepared as required by the contract documents and equal the total cost of the project. 2. Project construction schedule The Project construction schedule shall be prepared as required by the contract documents in either PERT, BAR, GANTT, or C.P.M. format. 3. Cash flow schedule The contractor will prepare and transmit to project management a cash flow schedule for the owner's use. 4. Shop drawing review schedule The contractor will prepare and forward to project management a shop drawing review schedule prior to the first application for payment.

The project meeting is a useful forum for discussions involving owner requested changes, problems with construction and/or field observations which feels require correction. All items which may directly impact the completion of the project should be addressed at this meeting as : Project site observation. Project photography. Project safety. Project log book. Application for payment. Construction change directive. Testing / review. Architects supplemental instructions (ASI's) Proposal request / change order. Time extensions. The management of construction company shall thoroughly review the complete set of documents, collectively referred to as the contract documents, and modify the construction administration procedures for successfully project accordingly.