Contributed by Eric D. Lussier
On July 26th, my company finished installing a flooring project that sparked a trilogy of blog posts, "Not Quite Ready Yet", "Project Compaction: Not Just for Soil" and (I thought) concluding with “It’s Just a Matter of Time” on July 29th.
This was a non-prevailing wage, privately funded project in one of the Boroughs of Manhattan where our standard credit terms were negotiated with us by the General Contractor. We typically request a 50% deposit at the time of the contract award, a 30% balance due on the day materials arrive on the project and then collect the 20% balance on the final day on site. On this particular project, they agreed to our 50% deposit, but asked to pay us down to 10% retainage within 30 days of completion. We reluctantly agreed and even though it was change ordered immediately, we didn’t insist on collecting additional money up front on the change order work. We eventually collected our 50% deposit on the base bid, despite it taking multiple payments to tally.
I won’t rehash many of the particulars that were outlined in my previous three posts, but this project did not go smoothly from award. We fought tooth and nail to have the space ready, then to have it solely to ourselves, to not have our in-place work damaged (by workers, inspectors or Acts of God) and then to complete within their requested window. The final brush stroke was on Friday, July 26th. I submitted all billing and paperwork in a timely fashion, and we did what many do to receive payment on a construction project: we waited.
At about a week before our Net 30 term approached, I started reminding the contractor that our money was due. We received immediate pushback from the GC that they had not been funded by the owner. Our response was easy: our payment terms were not paid when paid, as per your negotiation.
Back and forth we went. We waited. More back and forth. More waiting. As day 60 approached with no further money received, we decided to protect ourselves the best we could by filing a mechanic’s lien on the project.
Contributed by Liz O'Sullivan
Purchasing for construction projects isn’t like purchasing in our personal lives.
When we buy things in our personal lives, we go to a store, or go online, find exactly what we want, and buy it. Sometimes we ask someone else to get something for us. The very particular among us might attach a photo of exactly what we want when we send the email or text message request for the item.
On construction projects, the architect finds out from the owner the general idea of what is required, then the architect, through the drawings and specifications, tells the general contractor exactly what to provide. OK, so this is complicated, but it still makes sense.
What happens next is where it gets weird…
The bidding general contractors solicit bids from subcontractors and vendors, each of whom is a specialist in his or her area. These are the people who read the documents and actually provide what the drawings and specifications require, and the general contractor who is awarded the project coordinates all of that work. These bidders may submit bids on the specified items, or may submit substitution requests, requesting that different products be approved by the architect.
One time I was talking with a product rep at my CSI Chapter meeting about specifications for toilet partitions and lockers. The rep represents several different manufacturers. She currently has someone working with her who is new to the construction industry.
The new person looks at specifications for all projects that have just hit the street, to see if the specs include manufacturers they represent, or products that they might be able to meet the spec for, even if their manufacturers aren’t specifically listed. If their manufacturers aren’t listed, but they can meet the spec, the product rep will prepare a substitution request and submit it to the general contractor for him to submit to the architect, to see if they can get approved, and therefore be able to provide a bid.
The new employee described this process as “the strangest way to do business.” It is very odd, from a manufacturer’s or distributor’s point of view. The building owner, through the architect, asks for something specific, or maybe says “provide one of these three” or maybe says “provide this, or something equal.” Then the manufacturer, distributor, or subcontractor goes through a process which looks a bit like begging to be allowed to play, too.
This isn’t actually that strange when the documents are clear.
Contributed by Russell Harrison
In my last blog post we looked at the struggles a product rep has comparing a product that is specified that doesn’t match the drawings. Or, how we compare apples to oranges.
In this post, we’re going to take it one level further and look at one small thing that happens at the subcontractor level during the bid phase. Before I go there, I’m going to sidetrack into the glazing side a bit, but we’ll bring it back around to the metal panel industry we spoke about in blog post #1, I promise!
In a past life, I was a subcontractor in Oregon working in the commercial glazing realm. We would install anything glazing related in commercial buildings or high-end residences. That could be curtainwalls and storefronts, automatic door entrances, or even vinyl windows. The reason I bring this up is because it gave our team exposure to items from Divisions 5 (Metal), 7 (Thermal and Moisture Protection), or 8 (Openings). As our work was based around Division 8, this forced us to sometimes work with quite a few items outside of our realm of expertise and brought up a lot of questions internally. Anytime we had time to reach out to a rep and discuss the things we didn’t understand, we would do so. However, when our bid lead times were short, we’d have to make a lot of guesses.
Guessing isn’t an abnormal occurrence in construction estimating. Unfortunately, it’s quite normal. Controlling the amount of guessing for subcontractors is an area where we can all help.
Subcontractors, like most people involved in the commercial construction industry, have to clearly understand the work to bid a project accurately. As product reps, we try to work side by side with our subs to make sure they have all the information they need by the bid date so they can provide a thorough bid, but sometimes things happen outside of our control. A recent item outside of our control, and a very relevant example, would be our white-hot construction market in a booming economy.
During a construction boom, most estimating teams at the subcontractor level are working 60-70 hours a week in an attempt to keep up with the number of projects that are bidding. This doesn’t leave much, if any, time for other daily tasks. Estimators are typically very selective of what they will consider bidding during these times, will only work with general contractors (GC's) they like, will choose to bid jobs that are completely detailed and well specified, or will chose projects that fit into their available labor calendars.
Bidding An Apple Against an Orange
Contributed by Russell Harrison
As product reps, most of us have it pretty easy in our day-to-day lives. Sure, there are long days walking, driving, or even flying from meeting to meeting. And don’t forget the many nights in hotels!!! But overall, our jobs aren’t too difficult.
Well, except for the one thing that we don’t have control over. When the drawings and specifications don’t agree on a project. This is always a difficult spot to be in for a product rep. I won’t even start to cover what happens at the subcontractor level, as that’s a blog post unto itself.
Has anyone ever wondered what happens when a manufacturer’s rep is asked to provide a bid in that instance? Many things happen, and not necessarily all of them are good! To give you a background on what products I cover as a rep, I handle aluminum composite materials (ACM), plate, and honeycomb panels in the Pacific Northwest. Our products are specified on a regular basis. A good number of projects we end up working on are handled via substitution request.
Typically, when a subcontractor gets an invite where one of our products are being used (material, not necessarily manufacturer specified), we’re forwarded some, or all of the information we need to get started on providing a material bid. As reps, we get to go through the details and specs to make sure they work together and there aren’t any issues. In the last month, I’ve had eight or ten projects come across my desk where the specs and details did not agree, even to the point of ACM rainscreen panels being specified, but the drawings calling out honeycomb barrier panels. That, kids, is an apples and oranges conversation and very difficult to negotiate at the architectural level without ruffling feathers!
The first thing that I do when providing a subcontractor request is to annotate the project spec and note where our proposed substitution is an equal or comparable, but I always include notes where there was a “miss” on the part of the architecture team to either make sure the spec was clean or where the details don’t match the specs. Unfortunately, because my notes are on the spec, it always seems that I’m picking on the specifier, but I’m not. Regrettably, it’s a feature of the substitution request process, since they are typically based around the specifications.
Contributed by Jori Smith
So, you have a non-Design-Bid-Build (DBB) project on the boards? Hurrah!
Collaborative project delivery methods such as Construction Management At-Risk (CMAR) have a proven track record of improving project outcomes for everyone. This is a different way of doing things though, and we all must adapt to the new normal. Are you evolving, or hanging on to old habits? Here are some ways that the A/E (Architect/Engineer) team can short circuit a successful process.
Having Meetings Without the Contractor
Anticipate that your builder will be included in all project planning activities and emails. A truly collaborative team works together as much as possible and appreciates the extra brain cells solving problems. The project benefits from builder attendance even at programming sessions with users, where the opportunity to learn about the priorities of both the client and the designer will affect feedback down the road.
Not Taking Advantage of Your Partner's Field Skills
Camera scoping of existing piping, roofing cores, investigative demolition inside walls or above ceilings, and surveying. I've had to BEG designers for lists of field verifications helpful to the project. This is a chance to change the reliance upon as-built documents provided by the Owner. Can we reduce, or even eliminate "unforeseen" conditions? Dare to dream!
Figuring it Out on Your Own
The construction team brings access to trade skill sets and constructability experience. In addition, they have been exposed to a diversity of project experience with multiple designers - some of whom might have had a great idea or two. We want to help you solve system/assembly problems while the project is still in design.
Letting the Engineers Put Off Progress Until You Finish "Moving Walls"
This is one of the most effective ways to cut the pre-construction process off at the knees. The builder cannot provide the estimating and constructability services we've been contracted to do when provided empty floor plans on the engineering sheets. Anyhow, BIM is forcing the team to make decisions earlier too, so this is a habit that needs to be broken.
Leaving Out the Details
The project will still be competitively bid by, all or most of the subs, and they need that information for an accurate scope. Sure, the builder at the pre-construction table heard you say “that” months ago (and may even remember), but she/he can’t be charged with communicating your design decisions to the bidders –unless you want to let her/him have the authority for those decisions. To maintain control of design and protect the Owner from unnecessary change costs, a fully complete set of construction documents must be provided.
Forgetting About the Bidding Documents
Again - the subcontracts are still being competitively bid. Additionally, all of Division 01 likely still applies and will require a thorough review by both teams, as changes are generally needed to align the requirements with the project delivery method.
Not Taking Advantage of Scheduling Options
Changes are inherent in the pre-construction process. We're working together to make them now, instead of later – because later costs the owner money in change orders. This is an opportunity to reconsider putting out incomplete or uncoordinated drawings just to hit a milestone date. Ask how your builder can adapt the schedule to give you more time to finish. Early work packages are a fantastic tool. Give me the foundation and steel, I'll get started while you finish the door hardware schedule. Fast track concepts are easily incorporated into these projects.
I’ve had several A/E professionals tell me that public procurement must be DBB. Not so! There are several states which are allowing CMAR and Design-Build. Encourage your lawmakers to open the process and allow other project delivery methodologies. While no delivery method is perfect, there are definite advantages to be had from partnering with the construction team - leading to a more successful project for all.
Let's Fix Construction is an avenue to offer creative solutions, separate myths from facts and erase misconceptions about the architecture, engineering and construction (AEC) industry.
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