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End User License Agreement
by Richard H. Clough, Glenn A. Sears, S. Keoki Sears, Robert O. Segner, Jerald L. R
Construction Contracting: A Practical Guide to Company Management, 8th Edition
Title Page
Copyright
Chapter 1: The Construction Industry
1.1 Introduction
1.2 The Construction Project
1.3 Economic Importance
1.4 The People Involved on a Construction Project
1.5 Construction Categories
1.6 Project Financing
1.7 The Contract System
1.8 Project Delivery Methods
1.9 Types of Construction Contracts
1.10 Forms of Construction Contract Award
1.11 Forms of Negotiated Contracts
1.12 Basic Elements of Agreement in the Various Types of Cost-Plus Contracts
1.13 Competitive Sealed Proposals
1.14 Other Forms of Contracts
1.15 Small and Disadvantaged Business Enterprises
1.16 Seasonality in Construction
1.17 Licensing
1.18 License Bonds
1.19 Building Codes
1.20 Contractor Organizations
1.21 Management Practices in Construction
1.22 Business Failures in Construction
1.23 Summary and Conclusions
Chapter 1 Review Questions
Chapter 2: Business Ownership
2.1 Introduction
2.2 Alternative Forms
2.3 Construction Contracting Firms
2.4 The Individual Proprietorship
2.5 The General Partnership
2.6 Establishing a Partnership
2.7 Liability of a General Partner
2.8 Dissolution of a Partnership
2.9 Subpartnership
2.10 The Limited Partnership
2.11 The Corporation
2.12 The Foreign Corporation
2.13 Stockholders
2.14 Corporate Directors and Officers
2.15 The S Corporation
2.16 Employee Stock Ownership Plan (ESOP)
2.17 Limited Liability Company (LLC)
2.18 The Joint Venture
2.19 Summary and Conclusions
Chapter 2 Review Questions
Chapter 3: Company Organization
3.1 Introduction
3.2 Organization Basics
3.3 General Considerations
3.4 Principles of Organization
3.5 Responsibility, Authority, and Delegation
3.6 Making the Organization Work
3.7 Summary and Conclusions
Chapter 33 Review Questions
Chapter 4: Project Design and Contract and Bid Documents for a Project
4.1 Introduction
4.2 The Architect-Engineer
4.3 Designers' Professional Associations
4.4 Selection of the Architect-Engineer
4.5 Services Provided by the Architect-Engineer
4.6 Fee for Design Services
4.7 Responsibility to the Owner
4.8 Liability to Third Persons
4.9 Statutes of Limitations
4.10 Contractor Input into Design
4.11 Project Description—Communicating the Design
4.12 Announcing the Project to Contractors
4.13 Project Manual
4.14 Bid Documents
4.15 Instructions to Bidders
4.16 Contract Documents
4.17 Summary and Conclusions
Chapter 4 Review Questions
Chapter 5: Cost Estimating and Bidding
5.1 Introduction
5.2 General
5.3 Types of Estimates
5.4 Preliminary Considerations Prior to Commencing the Estimate
5.5 Set-Asides
5.6 Qualification
5.7 The Decision to Bid
5.8 The Bidding Period
5.9 Prebid Meetings
5.10 Work to Be Self-Performed and Work to Be Subcontracted
5.11 Site Visit
5.12 Project Time Schedule
5.13 Preparing the Estimate
5.14 Estimating Labor Cost
5.15 Estimating Equipment Cost
5.16 Indirect Costs
5.17 Subcontractor Proposals
5.18 Markup
5.19 The Lump-Sum Recap Sheet
5.20 The Unit-Price Recap Sheet
5.21 Bid Changes
5.22 Finalizing the Estimate
5.23 The Proposal
5.24 Bidding Procedures
5.25 Submission of Proposals
5.26 Responsive Bid and Technicalities
5.27 Bid Spread
5.28 Out of the Money
5.29 The Acceptance Period
5.30 Rejection of Proposals
5.31 Withdrawal of Bid by Prime Contractor
5.32 Withdrawal of Bid by Subcontractor
5.33 List of Subcontractors
5.34 Contingencies Allowances and Subcontract Allowances
5.35 Disclaimers and Waivers
5.36 Bid Ethics
5.37 Bid Depositories
5.38 Bid Rigging
5.39 Unbalanced Bids
5.40 Complimentary Bids
5.41 State Preference Statutes
5.42 Scheduling Bid Dates
5.43 Scope Bidding
5.44 Range Estimating
5.45 Introducing Probabilistic Determinations into the Estimate
5.46 Computer-Based Estimating
5.47 Summary and Conclusions
Chapter 5 Review Questions
Chapter 6: Construction Contract Provisions
6.1 Introduction—Construction Contracts
6.2 Contract Clauses
6.3 Rights and Responsibilities of the Owner
6.4 Duties and Authorities of the Architect-Engineer
6.5 Indemnification
6.6 Rights and Responsibilities of the Contractor
6.7 Subcontracts
6.8 Subcontract Provisions
6.9 Contract Time
6.10 Liquidated Damages
6.11 Extensions of Time
6.12 Acceleration
6.13 Differing Site Conditions
6.14 Owner-Caused Delay
6.15 The Agreement
6.16 Letter of Intent
6.17 The Notice to Proceed
6.18 Acceptance and Final Payment
6.19 Termination of the Contract
6.20 The Warranty Period
6.21 Summary and Conclusions
Chapter 6 Review Questions
Chapter 7: Contract Surety Bonds
7.1 Introduction
7.2 Basic Elements of Understanding
7.3 Forms of Contract Bonds
7.4 Bid Bonds
7.5 Performance Bonds
7.6 Payment Bonds
7.7 Statutory and Common-Law Bonds
7.8 The Miller Act
7.9 Claims for Payment
7.10 Contract Changes
7.11 Bond Premiums
7.12 The Surety
7.13 Indemnity of Surety
7.14 Investigation by Surety
7.15 Rationale for Requiring Construction Bonds
7.16 Bonding Capacity of Contractors
7.17 The Surety Agent
7.18 Default by the Contractor
7.19 Contract Bonds and Type of Contract
7.20 Subcontract Bonds
7.21 Contract Bond Alternatives
7.22 Additional Surety Bonds
7.23 Summary and Conclusions
Chapter 7 Review Questions
Chapter 8: Construction Insurance
8.1 Introduction
8.2 Risk Management
8.3 Construction Risks
8.4 The Insurance Policy
8.5 Contract Requirements
8.6 Legal Requirements
8.7 Analysis of Insurable Risks
8.8 Construction Insurance Checklist
8.9 Project Property Insurance
8.10 Builder's Risk Insurance
8.11 All-Risk Builder's Risk Insurance
8.12 Named-Peril Builder's Risk Insurance
8.13 Builder's Risk Policy Premiums
8.14 Provision of Builder's Risk Insurance by the Owner
8.15 Subrogation
8.16 Termination of Builder's Risk Insurance
8.17 Contractor's Equipment Floater Policy
8.18 Property Insurance
8.19 Crime Insurance
8.20 Liability Insurance
8.21 Commercial General Liability Insurance
8.22 Bodily Injury and Property Damage Liability Insurance
8.23 Contractor's Protective Public and Property Damage Liability Insurance
8.24 Completed-Operations Liability Insurance
8.25 Contractual Liability Insurance
8.26 Third-Party Beneficiary Clauses
8.27 Personal Injury
8.28 Exclusions from Commercial General Liability Policy
8.29 Property Damage Liability Exclusions
8.30 Automobile Insurance
8.31 Professional Liability Insurance
8.32 Umbrella Excess Liability Insurance
8.33 Wrap-up Insurance
8.34 Owner's Liability Insurance
8.35 Subcontractors' Insurance
8.36 Group Insurance Plans
8.37 Employee Benefit Insurance
8.38 Certificates of Insurance
8.39 The Principles of Workers' Compensation
8.40 Workers' Compensation Laws
8.41 Administration of Workers' Compensation Laws
8.42 Workers' Compensation Benefits
8.43 Additional Provisions of Workers' Compensation Laws
8.44 Workers' Compensation Insurance
8.45 Workers' Compensation Insurance Rates
8.46 Workers' Compensation Deductible Plan
8.47 Workers' Compensation Self-Insurance
8.48 Employer's Liability Insurance
8.49 Nonoccupational Disability Insurance
8.50 Unemployment Insurance
8.51 Insurance Claims
8.52 Social Security
8.53 Summary and Conclusions
Chapter 8 Review Questions
Chapter 9: Business Methods
9.1 Introduction
9.2 Financial Records
9.3 Accounting Methods
9.4 Accounting for Long-Term Contracts
9.5 Percentage-of-Completion Method
9.6 Percentage-of-Completion Capitalized Cost Method
9.7 Completed-Contract Method
9.8 Financial Statements
9.9 The Income Statement
9.10 The Balance Sheet
9.11 Financial Ratios
9.12 Significance of Ratios
9.13 Construction Equipment Acquisition
9.14 Equipment Management
9.15 Equipment Depreciation
9.16 Straight-Line Depreciation
9.17 Accelerated Depreciation
9.18 Modified Accelerated Cost Recovery System (MACRS)
9.19 Procurement
9.20 Discounts by Vendors and Suppliers
9.21 Title of Purchases
9.22 A Contractor's Right to Check on Project Financing
9.23 Payment to the General Contractor
9.24 Payment Requests for Lump-Sum Contracts
9.25 Payment Requests for Unit-Price Contracts
9.26 Payment Requests for Cost-Plus Contracts
9.27 Final Payment
9.28 Payments to Subcontractors
9.29 Direct Payment
9.30 Backcharges
9.31 Payments to Material Suppliers
9.32 Cash Flow
9.33 Cash Forecasts
9.34 The Mechanic's Lien
9.35 Release of Lien
9.36 Assignment of Contracts
9.37 Marketing
9.38 Employee Motivation
9.39 Substance Abuse Programs
9.40 Job Site Crime
9.41 Employee Training Programs
9.42 Summary and Conclusions
Chapter 9 Review Questions
Chapter 10: Project Management and Administration
10.1 Introduction
10.2 Project Organization
10.3 The Project Manager
10.4 The Project Superintendent
10.5 Field Engineer
10.6 Owner Project Representative
10.7 Job Site Computers
10.8 Aspects of Project Management
10.9 Field Productivity
10.10 Project Administration
10.11 Project Meetings
10.12 Schedule of Owner Payments
10.13 Shop Drawings
10.14 Approval of the Shop Drawings
10.15 Quality Control
10.16 Total Quality Management
10.17 Materials Management
10.18 Expediting
10.19 Deliveries
10.20 Receiving
10.21 Inspection of Materials
10.22 Subcontractor Scheduling
10.23 Record Drawings
10.24 Disbursement Controls
10.25 Job Records
10.26 The Daily Job Log
10.27 Claims and Disputes
10.28 Claims in the Construction Industry
10.29 Alternative Dispute Resolution (ADR)
10.30 National Construction Dispute Resolution Committee (NCDRC)
10.31 Arbitration
10.32 Arbitration Procedure
10.33 Mediation
10.34 Mini-Trials
10.35 Dispute Review Boards
10.36 Neutral Evaluation
10.37 Settlement Conferences
10.38 Partnering
10.39 Lean Construction
10.40 Summary and Conclusions
Chapter 10 Review Questions
Chapter 11: Project Time Management
11.1 Introduction
11.2 The Critical Path Method
11.3 General Considerations
11.4 Project Planning
11.5 Precedence Notation
11.6 The Precedence Diagram
11.7 Example Problem 1
11.8 The Network Format
11.9 Project Scheduling
11.10 Activity Durations
11.11 Time Contingency
11.12 Example Problem 2
11.13 Network Computations
11.14 Early Activity Times
11.15 Project Duration
11.16 Late Activity Times
11.17 Total Float
11.18 The Critical Path
11.19 Free Float
11.20 Least-Cost Project Shortening
11.21 Time-Scaled Networks
11.22 Significance of Floats
11.23 The Early-Start Schedule
11.24 Bar Charts
11.25 Resource Scheduling
11.26 Progress Monitoring
11.27 Progress Analysis
11.28 Schedule Updating
11.29 Fast-Tracking
11.30 Computers and Time Management
11.31 Delay Claims
11.32 Summary and Conclusions
Chapter 11 Review Questions
Chapter 12: Project Cost Management
12.1 Introduction
12.2 Project Cost Control
12.3 Data for Estimating
12.4 Accounting Codes
12.5 Job Cost Accounts
12.6 Monthly Cost Reports
12.7 Project Overhead
12.8 Labor and Equipment Costs
12.9 Cost Accounting
12.10 Labor and Equipment Budget
12.11 Cost Accounting Reports
12.12 Labor Time Cards
12.13 Time Card Preparation
12.14 Measurement of Work Quantities
12.15 Forms of Labor Reports
12.16 Weekly Labor Cost Reports
12.17 Equipment Cost
12.18 Equipment Time Cards
12.19 Equipment Cost Reports
12.20 Other Equipment Charges to Projects
12.21 Cost Information and Field Supervisors
12.22 Cost Control
12.23 Information for Estimating
12.24 Computer Application
12.25 Summary and Conclusions
Chapter 12 Review Questions
Chapter 13: Labor Law
13.1 Introduction
13.2 History of Law of Labor Relations
13.3 The Norris-LaGuardia Act
13.4 The National Labor Relations Act
13.5 The Labor Management Relations Act
13.6 The Labor-Management Reporting and Disclosure Act
13.7 Coverage of the National Labor Relations Act
13.8 The National Labor Relations Board
13.9 Representation Elections
13.10 Employer Unfair Labor Practices
13.11 Union Unfair Labor Practices
13.12 Charges of Unfair Labor Practices
13.13 Remedies
13.14 Union-Shop Agreements
13.15 Prehire Agreements
13.16 Union Hiring Halls
13.17 Secondary Boycotts
13.18 Common Situs Picketing
13.19 Subcontractor Agreements
13.20 Prefabrication Clauses
13.21 Jurisdictional Disputes
13.22 NLRB Jurisdictional Settlement
13.23 Voluntary Jurisdictional Settlement Plans
13.24 Payments to Employee Representatives
13.25 Political Contributions
13.26 The Civil Rights Act of 1964
13.27 Executive Order 11246
13.28 The Age Discrimination in Employment Act
13.29 The Davis-Bacon Act
13.30 Davis-Bacon Administration
13.31 The Copeland Act
13.32 The Fair Labor Standards Act
13.33 The Contract Work Hours and Safety Standards Act
13.34 The Hobbs Act
13.35 Immigration Reform and Control Act
13.36 The National Apprenticeship Act
13.37 The Drug-Free Workplace Act
13.38 Family and Medical Leave Act
13.39 Americans with Disabilities Act (ADA)
13.40 ERISA
13.41 Summary and Conclusions
Chapter 13 Review Questions
Chapter 14: Labor Relations
14.1 The Construction Worker
14.2 Employment in the Construction Industry
14.3 Employee Benefits
14.4 The Union Contractor
14.5 The Role of the Unions
14.6 Union History
14.7 Construction Unions
14.8 The Local Union
14.9 Local Union Autonomy
14.10 Union Work Rules
14.11 The Business Agent
14.12 Collective Bargaining
14.13 Patterns of Bargaining
14.14 Withdrawal from Bargaining Unit
14.15 The Bargaining Process
14.16 Labor Agreements
14.17 Geographical Coverage of Agreements
14.18 Project Agreements
14.19 National Agreements
14.20 The Federal Mediation and Conciliation Service
14.21 Employer Lockouts
14.22 Wages and Hours
14.23 Administration of the Labor Contract
14.24 Damage Suits
14.25 Prejob Conferences
14.26 The Merit-Shop Contractor
14.27 Sources of Open-Shop Labor
14.28 Apprenticeship Programs
14.29 Nonapprenticeship Training Programs
14.30 Supervisory Training
14.31 Present Construction Industry Status
14.32 Dual-Shop Operation
14.33 Union Reaction to Open Shop
14.34 Summary and Conclusions
Chapter 14 Review Questions
Chapter 15: Project Safety
15.1 Introduction
15.2 The Cost of Construction Accidents
15.3 Safety Legislation
15.4 State Safety Codes
15.5 Federal Health and Safety Acts
15.6 The Occupational Safety and Health Act (OSHA)
15.7 Site Inspections by OSHA
15.8 Penalties under OSHA
15.9 OSHA Hazard Communication Standard
15.10 Multiemployer Work Sites
15.11 Contract Safety Requirements
15.12 Work Injury and Illness Recording
15.13 Work Injury and Illness Rates
15.14 OSHA and Industry Trade Associations, Construction Companies, and Individual Workers Are Making a Difference
15.15 Economic Benefits of Safety
15.16 Safety Services of Contractor Associations
15.17 The Role of Management in Safety
15.18 The Company Safety Program
15.19 The Project Safety Plan
15.20 Owners' Requirements Regarding Safety Policies and Plans
15.21 The Field Supervisor
15.22 Accident Records
15.23 Protection of the Public
15.24 The Cost of a Safety Program
15.25 Summary and Conclusions
Chapter 15 Review Questions
Appendix A: Instructions to Bidders
Appendix B: AIA Document B101-2007 Standard Form of Agreement between Owner and Architect
Appendix C: Construction Specification Institute MasterFormat 2014
Appendix D: AIA Document A201-2007 General Conditions of the Contract for Construction
Appendix E: Supplementary Conditions
Appendix F: Sample Lump-Sum Proposal Form, with Reference to Addenda, and Alternates
Appendix G: AIA Document A101-2007 Standard Form of Agreement between Owner and Contractor Where the Basis of Payment is a Stipulated Sum
Appendix H: AIA Document A102-2007, Standard Form of Agreement between Owner and Contractor Where the Basis of Payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price
Appendix I: AIA Document A310-2010 Bid Bond
Appendix J: AIA Document A312-2010 Performance Bond
Appendix K: AIA Document A312-2010 Payment Bond
Appendix L: AGC Document 655 Standard Form of Agreement between Contractor and Subcontractor
Appendix M: AIA A401-2007 Standard Form of Agreement between Contractor and Subcontractor
Appendix N: Construction Industry Arbitration Rules and Mediation Procedures of the American Arbitration Association
Appendix O: Typical Construction Company General Ledger Accounts
Index
End User License Agreement
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