Construction Management

represents and reflects the legal contract between two parties.
This can be between the owner and the contractor or between the owner and the
designer or between the general contractor (GC) and the subcontractors or between
the contractors and material suppliers.

General conditions define the responsibilities of the parties involved in the
contract-the owner and the general contractor.

Special conditions provide an extension of the general provisions of the contract to
fit the specific project at hand.

formal
document changes the original bid documents and becomes a part of the bid
package.

The most common General Conditions used in the construction industry

A bond that assures that the contractor will accept the contract when awarded and
will supply the required performance and payment bonds.

A bond that guarantees that the contractor will pay the subcontractors and material
suppliers.

A bond that guarantees that the contractor will perform the work in accordance
with the plans and specifications.

Lump sum contracts are typically used for structures such as buildings that permit
the bidders to estimate the quantities and costs accurately.

Unit-price contracts are used for work where it is not possible to calculate the exact
quantity of materials that will be required. Unit-price contracts are commonly
used for heavy/highway work.

Cost plus (cost reimbursable) contracts are used in situations that make it difficult
or impossible for either the owner or the contractor to predict their costs during the
negotiation, bid, and award process.

The most common types of incentive contracts are those that offer a bonus for
early completion. Contracts that require a penalty for late completion are
required by law to also offer a bonus for early finish.

Contracts used mainly for maintenance work. designed to avoid a design contract for each work order.

Liquidated damages are the money paid by the contractor to the owner if the
contractor exceeds the allowed contract time period.

The document that establishes the contractor's right to have access to the owner's
property. It establishes the official start date of the contract,

The facility must be ready for the owner
to move into and use.

owner's last formal
opportunity to walk through the facility to identify remaining work items and to
formally accept ownership of the facility.

items the
contractor needs to correct to reach final completion, and those items can be
completed while the owner is occupying the facility.

owner, in order to have protection that the contractor will complete the
work, often holds back (retains) a portion of what a contractor earns until the end
of the project.

The actual process of submitting the
monthly pay estimate involves estimating the percentage of completion of each job
activity, calculating the amount due for each of those activities, and subtracting the
retainage from the total

Workers' compensation protects workers who are injured on the job by covering
medical and hospitalization expenses, plus a percentage

Submittals contain information concerning products to be incorporated in a
construction project

result of change orders that cannot be resolved or job
conditions that the contractor considers to be a materially changed condition but
the owner does not agree.