What is the purpose of a proposal summary?

Evaluate scope "apples to apples"
coordinate between scopes to make sure everything is accounted for once and once only

What is an alternate

During the project development/bidding process, the owner may request pricing for several "options" for different construction systems called "alternates"
typically identified as a subsection of division 1 - general requirements
contractor's responsibilit

Addenda

A change in construction methods or design directed by the design team during the bidding, BEOFRE a contract has been awarded.
**Addenda are priced by all competing contractors and the addendum costs are included in the bid price

Change order

A change in construction methods or design directed by the design team after the contract has been awarded.
Issued when the scope, cost and time adjustments associated with a design modification are agreed upon by the owner, contractor and architect befor

Construction Change Directive (CCD)

Directs the contractor to execute a design change before the scope, cost and time adjustments associated with a design modification have been agreed upon by the owner, contractor and architect
these allow work to proceed, with the guarantee that the contr

RFI Response

- often result in additional costs for a general contractor and/or subcontractors
- it is the responsibility of the subcontractor to alert the general contractor of RFIs which have associated costs
- In turn, it is the responsibility of the general contra

AIA G709

Official request for a change order proposal

AIA G701

Once the change order value has been agreed upon/ approved...
the G701 is the means by which the contract value is modified

Estimate

Becomes the budget for a project

Project summary

with some modifications, becomes the template for the schedule of values for tracking or work completed, billing, and payment

Progress payment

once the contractor begins executing the work;
payments are made to the contractor at regular intervals
On commercial projects, the general contractor submits an application for payment to the architect/engineer for review before it is given to the owner

Progress Measurement/ payment

Units of work completed
(quantity*unit price= payment)
percentage completed
(percentage complete*construction cost = placement)
actual costs
hard costs +(hard costs*percentage fee)

Retained earnings

A majority of construction contracts stipulate that a certain percentage of the progress payments (usually 5-10%) will be retained by the owner until project completion
Generally paid(released) upon acceptance of the project by the owner or when the CO -

Payments for materials

contracts allow the contractor to be paid for the cost of materials, once the materials are delivered to the site
or stored off site with proper documentation

AIA G702

Application and certification for payment

AIA G703

Continuation sheet - the backup sheet that indicates the payments which the subcontractors are requesting

Cost Code

A numbering system established within the WBS for the identification and accumulation of separate and distinct items (budget/cost data) of work on all projects
Purpose: identifies the line-items in the budget against which project expenses should be bille

Project Cost Report (PCR)

internal financial review document

Cash flow

the stream of revenue and expenses on your construction project, it is constantly changing and therefore must be monitored
A snapshot of a project's financial status

project revenue

money earned through owner progress payments (AIA G702), this includes profit and overhead

project expenses

money spent to complete construction tasks per the contract documents and stipulations