Tuesday,
REMINDER: all these blogs' references to construction manager are to the particular form of construction management services being used on public school building construction in which the work of the project is bid by “work packages” directly to the school district.
With the general contractor method, the Specifications for the project prepared by the design firm include a contract form, typically an AIA form, which the general contractor has essentially agreed to when he bids the work. The contract will either specify the number of working days or actual date for completion that was required by the Specifications prior to bid. The pertinent information and contract amount are filled in, the contracts are signed by the school district and work proceeds. Any contracts with subcontractors and material suppliers are between those firms and the general contractor; the school district does not need to involve itself. If a subcontractor defaults, that becomes the general contractor’s problem, and he proceeds with the work as the contract requires...
With the CM method, each work package must be negotiated with each subcontractor. While the CM may use a standard AIA contract form, the detailed description of the work package under each must be accurate and complete to cover the entire project and related correctly to the other work packages. The CM may try to include a time frame or duration for the work of each subcontractor, but each subcontractor’s work is affected by the previous work of another subcontractor. Any specified time frame or duration of the project therefore becomes only the CM’s estimate, and is not legally enforceable. The CM does not sign the contracts, and has no legal or financial responsibility for the terms of any contracts other than his CM agreement with the school board. Each contract is signed directly with the school board. Any disputes between subcontractors for delays caused by another subcontractor, for missed or overlapping items, etc. become the direct responsibility of the school district. The CM is there to mediate, but is not responsible if claims are made for extra costs, court or mediation fees, and such. If a subcontractor defaults after signing a contract, eventually the performance and payment bond would kick in and cover the costs, but the delays while the bonding company finds another company to do the work and to purchase materials will not only affect that work package, but all the others. Each subcontractor will then have a claim for delays and extra costs.
Next - Building the project, General v. CM
No comments:
Post a Comment