Aia lump sum contract pdf

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The purpose is to shorten the time to completion. Shorter schedules are desirable for reasons that vary with building owners. A shorter schedule may reduce aia lump sum contract pdf manufacturer’s time-to-market, a school district’s need to reduce overcrowding or simply provide a new home for a family sooner. Shorter schedules may also reduce the cost of construction financing and reduce overhead costs for the design and construction organizations.

Shorter schedules may also reduce the impact of inflation during construction. The fast-tracking of the project is therefore achieved through the integration of design and construction phases. It requires detailed knowledge of the process, effective planning, integrity and close coordination among the organizations executing the work. The final cost of the project is uncertain when construction begins because design is not complete. On Fast-Track projects, the design, construction documents and specifications are incomplete, so setting the final cost presents problems.

However, even with a GMP, there can be argument over the scope of work covered by the GMP since the design was incomplete when the contract was executed. There is also a risk that work built in an early phase of the project may not suit later design decisions. For instance, if the building shape changes after the foundations are built, there is increased cost and delay to modify the completed foundations. Or an item of equipment that is selected late in the process may require drains or water and power connections that were not anticipated early in the project. Fast-Track concepts by bidding separate general construction contracts for phases of the work. However, many owners choose experienced project teams and consider the rewards to be well worth the risks. One source states that Fast-Track is used on 40 percent of building projects.

The political assumption was that the low lump sum bid demonstrated a prudent use of public money, and open competitive bidding demonstrated a fair selection of contractors. Since competitive lump-sum bidding required complete construction drawings and specifications, Fast-Track as used in Industry was unavailable to public owners. However, most public procurement regulations allowed procurement of architectural, engineering and other services based on the qualifications of the service provider. In the 1960s, during the Vietnam War, students enrolled in higher education were deferred from the draft.

Consequently, colleges and universities exploded. The crowding problems were acute because the delivery of design and construction for academic buildings usually took 4 to 6 years. Meanwhile, the high rate of inflation was eroding construction budgets. A 4-5 year project schedule might see the buying power of appropriated funds for building projects reduced significantly.

45 percent of the time with phased construction. The CM would do no actual construction work. The CM would have a professional responsibility to represent the owner’s best interest as an agent, similar to that of an architect. The CM would advise the architect and owner on cost and construction technology during the design phase and would estimate the total cost. The architect would complete the construction drawings and specifications in phases and the CM would take open, competitive bids for those phases of the work, overlapping the design and construction activities. For instance, the CM might take bids for site clearing and grading as soon as the basic building configuration was set and drawings and specifications for that phase of the work were complete. Companies that typically functioned as subcontractors would bid the work.

The low bidder would have a direct contract with the owner, metamorphosing from subcontractor to prime contractor. The owner would have multiple prime contracts. It was not an entirely original concept. The Stony Brook project and CRS’s later projects demonstrated that the projected time savings were conservative.