Thursday, October 1, 2009

#6 Law and Construction - Claims and Disputes

Text will be Gould and Joyce

Chapter 13 Construction Law

Chapter 14 Construction Safety and Health

Construction Codes;
International Building Code (IBC) series, adopted by state or municipality
Local ordinances and code amendments

 Zoning code;
Regulates use and building mass and footprint.

Environmental Regulations;
Federal and state legislation for protection of environment.

Civil Rights Legislation;
Americans with Disabilities Act
Civil Rights Act
Equal Employment Opportunity Commission (EEOC), local requirements.

Labor Law
Employee rights;
- safe working conditions
- minimum wage
- prevailing wage
- overtime

Employer responsibilities
State and Local additional rights and responsibilities
DHS requirements to verify worker documentation (e-verify)

Professional Licensing
State Regulated for the public good
-responsibility to public safety takes precedent over contractual responsibilities.

Contract Law
State regulated intrastate
Federally regulated interstate
Regulates relationship, rights and responsibilities of contract parties with each other.


Torts are civil wrongs recognized by law as grounds for a lawsuit. These wrongs result in an injury or harm constituting the basis for a claim by the injured party. While some torts are also crimes punishable with imprisonment, the primary aim of tort law is to provide relief for the damages incurred and deter others from committing the same harms. The injured person may sue for an injunction to prevent the continuation of the conduct or for monetary damages. (Cornell Law Library)

Liability may exist when a person or entity is financially and legally responsible for an act that caused harm to another, this may also extend to an employers responsibility for the acts of its employees.

Negligence may exist when a person or entity is financially and legally responsible for a failure act that caused harm to another, this may also extend to an employers responsibility for the failure to act of its employees. This negligence may result in liability.

Construction Safety and Health

Accident prevention; onsite controls including; worker education, safety equipment, trenching controls, fall prevention, overhead protection, buried and overhead utilities, hazardous and or toxic materials,...

Unsafe conditions; unsafe structure, unsafe weather conditions, failure to provide accident prevention program.

Unsafe action; acts that increase the risk of accident

OSHA Occupational Safety and Health Administration (Fed law 29 CFR 1926.1)

Safety Programs; free training programs for workers and supervisors, free safety inspection as requested without penalty

Hazard Identification; State "One-Call" system (811 on cell phone), signage, warning tape,...

OSHA enforcement and investigation; response to complaint, response to accident and or death, response to random inspection,...

Criminal and civil penalties; OSHA has authority to fine, and will refer the file to Department of Justice or local District Attorney if a criminal act is suspected.

Claims and Disputes

The Contract defines procedures for dispute resolution, but may not cover all issues;

The contract documents including the bid document, construction documents and documents and directions produced during construction must be considered in entirety in resolving disputes between the parties to a contract, with the most current document having precedence.

Type of Dispute
Owner caused delays
Owner scheduling changes
General Contractor caused delays
Site condition changes
Weather conditions
Labor disputes
3rd party delays;component,material suppliers,transportation delays
Regulatory issues

Change order disputes
Conflicts, errors and omissions in contract documents.
Site conditions differ from contract documents
Fastening and joint system specified is inconsistent with product, code or manufacturer instructions
Code compliance issues.

Discussion requests:

Lovmo;
What is the formal way to propose a counter-offer? (to a contract price, or omit part of the proposed contract)

Owner/Contractor Agreement (Contract);

-The owner issued bid documents are an offer, with contract defintion provided in the documents.

-The GC's bid is a response to the offer, and is an offer to perform the work of the bid documents for concideration (money).

-The owner or GC depending on the conditions provided for in the bid may accept, reject or propose a change.

-If the GC's bid is accepted as offered the Owner and Contractor will, under definitions provided for in the bid, enter into a contractual agreement.

-If the GC and Owner are unhappy with some parts of the contract language, concideration, or the proposed work, each may propose through a counter-offer changes to the contractual agreement before signing.

-If their is no agreement on the contract language or other aspects, depending on the conditions set by the bid documents, the owner or the GC may withdraw, the owner may then open discussion with the next bidder or start a new bid process.

Negotiations are usualy face to face "horse trading", with a handshake agreement then formalized in a written document.

(Tinker horse trading; offer / counter-offer, offer /counter-offer, hand offered, hand countered and slapped, spit on hand, hand slap with spit to final contract. The only difference is written contract replaces spit.)

Hitchko;
What is common law and how does it affect the construction industry?

Common law is an evolved set of laws derived through precedent and legislation. The American legal system is based on English Common Law, which is an evolved law formalized with the Magna Carta signed by King John at Runnemead in 1215. The framework of common law is based on the Old Norse legal code; the Dane-law of pre-Norman England and still in use under Tynwald (Isle-of Man) and Allting (Iceland).

Federal law and State law is based on English Common Law (Louisiana is the exception with the Nepolionic Code as state law).

In origins English Common Law was for the commoners, Lords had a different set of rules, after the Magna-Carta common law applied to all including; Barons, Lords, King and the Court.

The law evolves with precedent and legislation. American Common law uses English Common law principles but defines rights and responsibility through the Constitution, Bill of Rights and ammendments.

Who is responsible for investigating an accident?

The GC has responsibility for site control and safety.

An accident that may result in lose of production or damage to work in place or equipment but not injury (beyond minor cuts and bruises) is the sole responsibility of the GC to investigate and make appropriate changes in on-site proceedures to limit a re-occurance.
An accident that causes injury requiring medical attention must be reported to OSHA and the GC's insurance carriers. OSHA may investigate, but the GC is responsible again to investigate and make appropriate changes in on-site proceedures to limit a re-occurance. OSHA may stop work, or Fire Rescue may stop work if they believe an unsafe condition is present. OSHA may after investigation issue a fine and or refer the file for criminal prosecutuion.

An accident that causes serious injury or death must be reported to OSHA and the police. The GC may be requested by the police to suspend work until an on-site investigation is complete, the police cannot stop work but Fire Rescue may stop work, or if an unsafe condition is present the building inspector may shut down work and close the site. After a site is closed by the building inspector any persons not authorized to be on the site by the building inspector may be subject to a criminal arrest.

The police and OSHA will conduct separate investigations but will share information. The GC should contact their insurance carriers and lawyers.

The owners team has no responsibility to investigate, but should request copies of all information regarding accidents that invlove injury or death to the workforce or the public, and damage to adjacent properties. The Owners team and owners various consultants should also contact their insurance carriers.


No comments:

Construction Management 1

Lectures for the Construction Management I course will be structured roughly following the format of "Construction Project Management 3rd Edition by Gould and Joyce" and supplemental information from "Construction Project Administration" 8th Edition by Fisk and Reynolds

When I stray from topic, differ from text, contradict myself, or if you just disagree with my comments, make this an item for discussion. Please leave and share your comments and questions on this blog

Prior to each class please read the class text and email me a one page summary of major points, and suggest items you would like to discuss or for further clarification.

Grades will be based on the best 3 summaries of text, best 3 of 5 questions in mid-term and best 3 of 5 questions in the final. Final and mid-term will be take-home and submitted by e-mail. You may prepare your responses to class text, final and mid-term as a group of no more than 3 if requested in advance.

Class 1
Text; Construction Project Management by Gould and Joyce

Chapter 1; The Construction Industry

Chapter 2; Project Participants

We will be discussing Construction Management from the perspectives of major participants;
Owner
Lender
Designer/Engineer/Architect
General Contractor
Sub-Contractors
Regulatory Authorities


Class 2
Text Construction Project Management by Gould and Joyce

Chapter 6: Construction Services During Design

Architect/Engineer
Construction/Project Manager
Consultants
Design-Build and Turn Key approach

Chapter 7: Bidding and Procurement

Construction Documents and Bid Package
Bid Analysis and Documentation
Contractual and Legal issues

We will also look at various project delivery systems;
Owner as General Contractor
Developer as Project Manager/General Contractor
Single General Contractor and Multiple Prime Contractor

Federal, State, Municipal constraints

Class 3
Text from Construction project Administration 8th Edition by Fisk and Reynolds;

Chapters 2, 3 and 4.

The role of the Resident Project Representative as the on-site eyes and ears of the Owner/CM/Arch-Eng.

The RPR may be a direct employee of the CM or the Arch-Eng, but ultimatly their role is the conduit for all information between site and the owners project team.

Chapter 2;

Owners Resident Project Representative Authority:
Area of responsibility,
limitations on resposibility,
chain of command.

Inspection and Inspectors:
In place materials testing. Required inspections.
Reports and documentation.

Chapter 3;
Owners Resident Project Representative Responsibilities:
On site management.
Information management.

Chapter 4;
Owners Resident Project Representative Records and Reports:
Documentation, documentation, documentation,...

Class 4
Text will be Gould and Joyce

Chapter 8

Construction and Closeout General Contractor Construction

Management:
Sub-Contracts
Construction Manpower Management
Staff Site Organization
Job Site Start
Material & Equipment
Construction Productivity
Project Completion Closeout

Chapter 10
Project Planning and Scheduling
General Contractor

Construction Management:
Preconstruction Planning
Construction Scheduling
Closeout Schedule

Class 5 Planning for Construction

Also read Fisk and Reynolds Chapter 11 Risk Allocation and Liability Sharing.

Planning for Construction
We will explore using the Airport Parking Facility as a template, the General Contractor's planning and scheduling for construction activity
- Long lead time items.
- Availability of utilities
- Temporary utilities/perminent utilities.
- Workforce; GC and sub-contractor availibility.
- Work zone definitions and overlap by trade.
- Off-site and on-site traffic control; material, equipment and workforce.
- Work task dependencies.
- Environmental controls
- Local regulations and site specific regulatory requirements.
- Local weather conditions.
- Critical event time limitations.
- Off-site community safety.
- On-site workforce safety.

Risk reduction;
- Financial risk
- Safety

Mid Term Issued;
The mid term will be 10 questions based on the text. Select 5 questions, you may use previous assignments in your responses. Students may work in groups of no more than 3, with work submited individually and indentifiing other members of the group. Submit by email not later than midnight the day the following Wednesday.

Class 6

Text will be Gould and Joyce
Chapter 13 Construction Law and Chapter 14 Construction Safety and Health

Chapter 13
Construction Law
Construction Code
Civil Rights Legislation
Labor Law
Professional Licensing
Contract Law
Torts
Liability
Negligence

Chapter 14
Construction Safety and Health Accident prevention;
unsafe conditions,
unsafe action
OSHA Occupational Safety and Health Administration (Fed law 29 CFR 1926.1)
Safety Programs
Hazard Identification
OSHA enforcement, investigation
Criminal and civil penalties.

Class 7
Assignment due prior to class;Using Excel prepare a horizontal bar graphic schedule for the Airport Parking Facility.The drawing set for this project in .tifFor guidance please read Fisk and Reynolds Chapter 13 "Bar Charts".

Text Fisk and Reynolds

Chapter 19 Changes and Extra Work,
Chapter 20 Claims and Disputes;

Changes and Extra Work Contract Modifications;
Changes to extent of work
Changes in time
Changes in component and materials
Owner requested changes;
Architect/Engineer requested changes
General Contractor requested changes

Evaluating change order requests;
Cost impact
Time impact
Impact on other activities and components

Change order procedure;
Identify need/reason for change
Change description
Documents and submitals required to support/complete change
Secondary, ripple effect of change Change to contract value, and unit costs Submital and approval procedure.

Claims and Disputes
Contract defines procedures for dispute resolution, but may not cover all issues;
The contract documents including the bid document, construction documents and documents and directions produced during construction must be considered in entirety in resolving disputes between the parties to a contract, with the most current document having precedence.

Type of Dispute
Owner caused delays
Owner scheduling changes
General Contractor caused delays
Site condition changes
Weather conditions
Labor disputes
3rd party delays;
component,
material suppliers,
transportation delays

Regulatory issues
Change order disputes
Conflicts,
errors and omissions in contract documents

Class 8
Site organization; Airport Parking Facility

Assignment due before class:
Assume 9 month project schedule, prepare a workforce/equipment/materials needs preliminary schedule with one week intervak;
Using the bar chart format from the previous schedule assignment, prepare preliminary schedules for the Airport Parking Facility showing weekly project needs over an assumed 9 month project duration, for; Workforce/subcontractors(survey/layout, excavator, plumbing, electrical, landscape,....)
Materials (soils, concrete, fencing, pipe, light poles,....) Equipment (graders, back-hoe, tri-axle trucks, post holers, bucket trucks,...)
don't worry about small tools.
At this stage don't worry about quantities.
Open the slideshow in unionsquarechesterpa.blogspot.com for a visual record of equipment, materials and workforce.
(Link at bottom of this page.)

Workforce/subcontractor schedule
Equipment schedule
Materials schedule
Inspection schedule
Cash flow/payment voucher

Class 9
Site organization Airport Parking Facility;

Workforce/subcontractor;
-Identify subcontracts,
required documentation,
submitals and inspections.
-Identify cash flow demands.
-Equipment only subcontracts.
-Labor only subcontracts.
-Material only subcontracts.
-Complete labor, equipment & material subcontracts.

Equipment;
-Subcontactor on site equipment needs;
security,
storage,
staging,
conflicts,
duplication.

-General Contractor on site equipment needs,
subcontractor use of GC equipment.

Materials;
-Subcontractor on site material needs, and disposal
-Subcontractor controlled materials
-General Contractor controlled materials

Inspection schedule;
-Public agency required inspections.
-3rd party inspections

Assignment;
Cash flow; Assume payment voucher each month (last day of month), with voucher payment turn around of two weeks (mid next month), and subcontractor payment two weeks latter (last day of month).
Using weekly massing on the various schedules as analogous to dollar value, produce a chart showing dollar value for work on site (sum of workforce, materials and equipment).
Discuss time shift effect on voucher payment and subcontractor payment on project cash flow.
The analogy is not truly correct, all activities don't have equal dollar value, but useful for a generalized view of cash flow.

Class 10
Airport Parking Facility Materials and Components;
Construction sites when run efficiently require materials and components to be available "just in time".

On site delivery schedules are driven by the on site work needs, and availability of on site secure storage, and need to minimize handling.
The earliest and latest date for on site delivery becomes the critical organizing feature of the supply stream; storm sewer manholes will have a setting date based on grading and trenching activity, the manhole requires a crane or track hoe with hoist chain to position, the supplier must schedule manufacture including side cut out locations and top cone type for delivery.

Assignment; Identify materials and components required for the work of the contract. Create a chronology for material delivery; earliest date for on site delivery, latest date for on site available for use.
Don't worry about quantity, but consider relative magnitude of the different elements; soils, stone and paving material have a larger volume than light poles.
Delivery and storage of the large volume elements will have a greater site organization implication.

For class 11 we will be returning to Gould and Joyce; Chapter 11.
It may be helpful to have a quick read through of chapter 11 for some insight into the week 12 assignment.

Class 11
Airport Parking Facility
Projects typically have multiple sub-contractors, this week we will review the organization, scheduling and interactions between sub-contractors.
The material delivery chronology from assignment 12 will be used as an organizing feature around which we will look at earliest start date and latest completion date for subcontractor activities.
The work of each subcontractor may be separated into a subset of tasks with dependencies and precedents linking the task to the work of other subcontractors.

Assignment; This is the final assignment before the semester final; Prepare a subcontractor and material chronology for paving and curbing, assume all sub grade work is complete, show earliest start and latest completion for each task.

Final
The final will be 10 questions based on the text, schedules you have prepared and the Airport Parking Facility drawings. Select 5 questions, you may use previous assignments in your responses.