Anda di halaman 1dari 11

Case Studies:

Project Experiencing Changes


ARE 366 Contracts, Liability and Ethics
Dr. John Borcherding

1 ARE 366: Contracts, Liability and Ethics


Typical Case Study Scenario
 Project preplanning doesn’t fully develop scope of
work/site study photogrammetry error ; underground
evaluation insufficient.

 Engineering initiated with incomplete scope, short


schedule and often tight budget.

 Fast track/ overlap design and construction.


 Cost reimbursable
 CM/phased contracts

 Construction should not be initiated unless design is


60% complete-often less (30%).
2 ARE 366: Contracts, Liability and Ethics
Typical Case Study Scenario
 Underground difficulties due to a limited site study.
 Differing conditions.
 Underground obstructions. “ Hydro-excavate”
 Change orders required.
 Often “T & M”/ unknown.
 No time to price change orders prior to doing the
work.

 Design error and omissions


 Revision to drawings.
 Request for information (RFI) by construction
change orders for error in design, plus drawing
revisions.

3 ARE 366: Contracts, Liability and Ethics


Typical Case Study Scenario

 Fabricators
 Steel and pipe delayed getting information and there
are changes to shop drawings.
 Material delays of critical structural steel and pipe
spools.

 Late deliveries of critical materials and owner


furnishes equipment cause a contractor to work out of
sequence; change orders require different means and
methods (large equipment to erect).

4 ARE 366: Contracts, Liability and Ethics


Typical Case Study Scenario

 Changes
 Differing conditions.
 Error and omissions plus drawing revisions.
 Out of sequence work/ new means and methods for
material/equipment delays.

 Project delayed accelerate to recover time


 Add manpower
 Overtime
 Shift-work

5 ARE 366: Contracts, Liability and Ethics


Typical Case Study Scenario
 Costs go up and more lost time due to inefficiencies
or changes and disruptions.

 Stop work.
 Wait for supervision.
 Get a decision.
 Store materials/ replace tools.
 Move to another job.
 Get materials/tools/equipment.
 Get engineering instructions.
 Start new work/Return
 Rework often required
 Finish activity if no more constraints.

6 ARE 366: Contracts, Liability and Ethics


Typical Case Study Scenario
 Maintain contract work and do changes
 Negotiate costs.
 Maintain cash flow.
 Minimize impacts and delays.

 Changes
 Negotiate impacts and add to change order(e.g. Riverside
Hospital).
 Resolve impacts at end of job.
 Negotiate time extensions or acceleration costs.
 Resolve time/ cost at end of job.

7 ARE 366: Contracts, Liability and Ethics


Typical Case Study Scenario
 Picture work in field for foreman/journeyman.
 Drawings.
 Revisions 1,2,3,…,7 (correct one).
 Bulletins/ sketches from engineers answering
RFI’s or responding on site.
 Material constraints-items drawn do not fit/items
stored are lost when work is stopped.
 Journeymen (or women) wait for answers-look
busy, walk.
 Journeymen discouraged by rework and morale
drops.

 Contractors on fixed price jobs suffer cash flow


constraints because of not being paid until changes
have been negotiated.

8 ARE 366: Contracts, Liability and Ethics


9 ARE 366: Contracts, Liability and Ethics
Example
100,000 total hours

-25,000 C.O. hours


75,000 hours

25000/75000=0.333

Curve (27% loss)

27%*75,000=20,250 hours

10 ARE 366: Contracts, Liability and Ethics


END

11 ARE 366: Contracts, Liability and Ethics