Erik Meyerchick’s Post

Construction Project Cost System: During the design phase of a construction project, the project costs are continuously approximated and reviewed following each design change to ensure that they will not exceed the owner’s budget. This working budget is generally referred to as the engineer’s or architect’s estimate. Upon design completion, the field cost-control system is initiated by making a final, detailed cost estimate of the entire work. The construction contractor or another party who will be directly involved in the field operations normally prepares this ‘‘contractor’s estimate.’’ The contractor’s estimate is then reduced to a working construction budget and forms the basis of the construction cost control system.

What is the significance of construction claims? Construction claims are significant because they directly impact the financial and operational aspects of construction projects. They arise from disputes over contract terms, delays, work quality, or unforeseen circumstances, leading to additional costs and project delays. Effectively managing these claims is crucial for maintaining project timelines, budgets, and relationships between parties involved.

Design-Bid-Build vs. Construction Management: From a general contractor's perspective, one of the main differences between these two is in preconstruction and primarily in the budgeting and bidding phases. With a construction management process, a contractor is a part of the team from the beginning providing input on constructability and construction costs. A huge benefit to the client is in preparing budgets for construction costs throughout the design phase so as to limit inefficiency in preconstruction.

Construction projects are complex long-term projects with dynamic nature. They bring together multiple parties within different disciplines and require them to work coherently in a designated area to construct a structure with a constrained budget within a specified time. Most of the construction projects are incomplete in terms of design, procurement, contracting prior to the start of the construction due to their complex nature. Project properties are determined and finalized during the construction of the project and changes are exerted within the process. Change orders, also known as variation orders, are common in the construction industry, but they're also a common reason for construction disputes and lost profits. A change order or variation order, is a request to amend the original construction contract that changes the contractor's scope of work. Change orders often come up when the designs are incomplete or incorrect or are missing important elements, an owner requests a change in the design of the original plans, or if something unexpected comes up on the job site. A change order alters the contract agreement between the contractor and owner. It describes the changes from the original plans along with resulting additional costs and schedule changes. Types of Construction Change Orders Change orders don't all operate the same way. Here are some of the most common change orders on a construction project. -Added Scope or Additive Change Order -Scope reduction or Deductive Change Orders -Change orders led by Design changes . The best way to deal with change orders is to avoid as many of them as possible. Adequate preconstruction planning and project management is a preemptive strike against the unexpected. By completing due diligence, preconstruction teams can uncover local regulatory requirements, soil conditions, and other factors that could impact the construction plan. Collaboration with other stakeholders on the project team can help identify design errors or omissions, though some project delivery models limit this collaboration until after construction work begins. #VariationOrder #ChangeOrder

What does it mean by deliverables in Construction project? Explain in detail all types of deliverables.

With increasing partnerships and early Owner/Contractor collaborations, careful contract drafting and documentation will become more critical in the construction industry. It is essential to cover jointly developed concepts of operation after Notice to Proceed. #construction

As construction companies grow, they often encounter alternate delivery methods. One example is Construction Manager as Constructor (CMc). Under this method, design and construction work are still contracted out separately, but the general contractor gets involved much earlier than in a traditional project. Essentially, the contractor plays the role of CM, providing preconstruction services, managing building costs and acting as a consultant. A CMc contract may require the general contractor to commit to completing the job within a guaranteed maximum price, which is risky. If your construction company gets a chance to bid on a CMc project, be sure to know what you’re getting into.

As construction companies grow, they often encounter alternate delivery methods. One example is Construction Manager as Constructor (CMc). Under this method, design and construction work are still contracted out separately, but the general contractor gets involved much earlier than in a traditional project. Essentially, the contractor plays the role of CM, providing preconstruction services, managing building costs and acting as a consultant. A CMc contract may require the general contractor to commit to completing the job within a guaranteed maximum price, which is risky. If your construction company gets a chance to bid on a CMc project, be sure to know what you’re getting into.

Engineers; in addition to developing your technical capability it is vital to develop your commercial abilities too. The first step is to appreciate the basic rules of commercial arrangements. Get to know the contract or framework you are working in. For example, how do you get paid? Where does your salary come from? What actions do you need to take every day to record what you (and quite often others) have done. How do you know what you have to do in the future? Is there a scope of work? Is there a deadline for delivery? What are you delivering? As you get to know how contracts work you can put your knowledge into action and use it to develop your skills and experiences. This is ‘phase 2’ if you like. As you work on various project or undertake various duties you need to develop a more accute understanding of the timing and quality of the work you do. You need to experience how a contract works or how different payment and recoding sytems are used. You need to develop an understanding of what your role is and how others rely on you to carry out certain duties so they can carry out theirs. You need to increasingly become familiar with the various commercial arrangements that directly impact you as broaden your knowledge of other types of commercial arrangement that are available. Eg Target Cost, Fixed Proces, Tume Charged, Proced Bill of Quantities, Remeasurable? As your experiences and knowledge continue to grow you will start to be able to ‘manage’ what to do. You will be more contractually savvy. You will be wiser to the nuance of details. You will have a better instinct as to what needs to be done and what should be done if the scope changes or information is issued late. You will be sensitive to the pressures of the critical path and the cost of standing time. You will know the difference between ‘unforeseen ground conditions’ and inexperience. If you master this you will know how to behave like a professional engineer. You will have a good understanding of the contractual relationships around you so you can take responsibility to deliver engineering solutions. If you aspire to take on further responsibilities. If you wish to be a chartered engineer then you need to lean in and delve deeper. You need to be able to use your knowledge and experience to make judgements about contractual relationships. You need to know why you are going to do or not do something. You need to know why it’s right (or wrong) to take on some risks and not others. How significant is the situation. You need to know your statutory responsibilities, those that cannot be simply written out of a commercial contract or ignored. You need to know how to communicate with your quantity surveyor, or your director, or client, or consultant or subconsultant. You need to know how to talk to the various stakeholders around you. This is #civilengineering this is Institution of Civil Engineers (ICE) and The Institution of Structural Engineers to name a couple of PEIs.

Perfect visualization of the contract life cycle.