Construction Contract Administration

Issues that arise during the CCA phase can effect the overall profitability of a project. The CCA phase can be demanding on large, complex projects. To successfully deliver a project, a significant amount of time and effort may be necessary. Unfortunately, the budget can be tight during the CCA phase and it may be difficult to request extra fee from an owner being that the CCA phase is at the end of the project and the owner's budget is diminished.  Here is a list of some causes that affect project profitability during CCA:

1. Fees not aligned to scope of work during contract negotiations.
1. Underestimated fees for the CCA phase due to unclear or misunderstood scope.
2. Optimistic work plan did not budget enough hours.
3. Owner unwilling to compensate for adequate hours. Owner may not be convinced of the value architects provide during the CCA phase
4. Onerous contractual terms/ client processes required more hours than anticipated
5. Remaining fee is insufficient.  The bulk of fees were spent during the design phase and there isn't enough fee remaining to budget adequately for the CCA phase.
2. Scope creep
1. Client design changes require additional time and effort of architect
2. Client demands architect manage more of the CCA process
3. Onerous GC requests
1. GC requests architect to coordinate work of subcontractors
2. Excessive substitution requests. Each requires time for the architect to review and evaluate.
4. Incomplete submittals
1. Missing or uncoordinated shop drawings
2. Unanswered questions from subcontractors to GC are directed to architect
5. Inefficiency of GC
1. Inexperienced GC project engineers. Architect may need to spend time assisting project engineers to maintain the pace of construction
2. Turn over of GC's staff. The loss of project knowledge on the contractor's side could cause the architect to revisit already resolved issues
3. Excessive/unwarranted RFI's. Inefficient use of architect's time spent on questions related to scope already clearly covered in the contract documents
4. Incomplete work at Substantial competition. This can cause inefficiencies in punch list review.
6. Schedule delays
1. Bid phase extended due to issues in bid/award process.
2. Construction schedule delay/extension. This can impact wage escalation and extend the architect's time on the project.
7. AHJ inspection issues. Inspector may be overly demanding and interpret the code differently than anticipated.

There are specific strategies to help mitigate some of these issues. However, having a discussion with the client and contractor early on to managing the expectations can help avoid some of these issues altogether.

What are other challenges that architects face during CCA that can impact profitability?

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Tyler Schaffer AIA
LMN Architects
Mukilteo WA
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Issues that arise during the CCA phase can effect the overall profitability of a project. The CCA phase can be demanding on large, complex projects. To successfully deliver a project, a significant amount of time and effort may be necessary. Unfortunately, the budget can be tight during the CCA phase and it may be difficult to request extra fee from an owner being that the CCA phase is at the end of the project and the owner's budget is diminished.  Here is a list of some causes that affect project profitability during CCA:

1. Fees not aligned to scope of work during contract negotiations.
1. Underestimated fees for the CCA phase due to unclear or misunderstood scope.
2. Optimistic work plan did not budget enough hours.
3. Owner unwilling to compensate for adequate hours. Owner may not be convinced of the value architects provide during the CCA phase
4. Onerous contractual terms/ client processes required more hours than anticipated
5. Remaining fee is insufficient.  The bulk of fees were spent during the design phase and there isn't enough fee remaining to budget adequately for the CCA phase.
2. Scope creep
1. Client design changes require additional time and effort of architect
2. Client demands architect manage more of the CCA process
3. Onerous GC requests
1. GC requests architect to coordinate work of subcontractors
2. Excessive substitution requests. Each requires time for the architect to review and evaluate.
4. Incomplete submittals
1. Missing or uncoordinated shop drawings
2. Unanswered questions from subcontractors to GC are directed to architect
5. Inefficiency of GC
1. Inexperienced GC project engineers. Architect may need to spend time assisting project engineers to maintain the pace of construction
2. Turn over of GC's staff. The loss of project knowledge on the contractor's side could cause the architect to revisit already resolved issues
3. Excessive/unwarranted RFI's. Inefficient use of architect's time spent on questions related to scope already clearly covered in the contract documents
4. Incomplete work at Substantial competition. This can cause inefficiencies in punch list review.
6. Schedule delays
1. Bid phase extended due to issues in bid/award process.
2. Construction schedule delay/extension. This can impact wage escalation and extend the architect's time on the project.
7. AHJ inspection issues. Inspector may be overly demanding and interpret the code differently than anticipated.

There are specific strategies to help mitigate some of these issues. However, having a discussion with the client and contractor early on to managing the expectations can help avoid some of these issues altogether.

What are other challenges that architects face during CCA that can impact profitability?

Issues that arise during the CCA phase can effect the overall profitability of a project. The CCA phase can be demanding on large, complex projects. To successfully deliver a project, a significant amount of time and effort may be necessary. Unfortunately, the budget can be tight during the CCA phase and it may be difficult to request extra fee from an owner being that the CCA phase is at the end of the project and the owner's budget is diminished.  Here is a list of some causes that affect project profitability during CCA:

1. Fees not aligned to scope of work during contract negotiations.
1. Underestimated fees for the CCA phase due to unclear or misunderstood scope.
2. Optimistic work plan did not budget enough hours.
3. Owner unwilling to compensate for adequate hours. Owner may not be convinced of the value architects provide during the CCA phase
4. Onerous contractual terms/ client processes required more hours than anticipated
5. Remaining fee is insufficient.  The bulk of fees were spent during the design phase and there isn't enough fee remaining to budget adequately for the CCA phase.
2. Scope creep
1. Client design changes require additional time and effort of architect
2. Client demands architect manage more of the CCA process
3. Onerous GC requests
1. GC requests architect to coordinate work of subcontractors
2. Excessive substitution requests. Each requires time for the architect to review and evaluate.
4. Incomplete submittals
1. Missing or uncoordinated shop drawings
2. Unanswered questions from subcontractors to GC are directed to architect
5. Inefficiency of GC
1. Inexperienced GC project engineers. Architect may need to spend time assisting project engineers to maintain the pace of construction
2. Turn over of GC's staff. The loss of project knowledge on the contractor's side could cause the architect to revisit already resolved issues
3. Excessive/unwarranted RFI's. Inefficient use of architect's time spent on questions related to scope already clearly covered in the contract documents
4. Incomplete work at Substantial competition. This can cause inefficiencies in punch list review.
6. Schedule delays
1. Bid phase extended due to issues in bid/award process.
2. Construction schedule delay/extension. This can impact wage escalation and extend the architect's time on the project.
7. AHJ inspection issues. Inspector may be overly demanding and interpret the code differently than anticipated.

There are specific strategies to help mitigate some of these issues. However, having a discussion with the client and contractor early on to managing the expectations can help avoid some of these issues altogether.

What are other challenges that architects face during CCA that can impact profitability?

This is a great list, Tyler. Janene and Philip also touched on important points - Arch. staff need to be equipped with the knowledge and tools to be effective and efficient.

Other challenges, some similar to what was mentioned - 1) Items submitted as an RFI that should be a submittal or substitution request (creates duplication), 2) Reviewing submittals that are not required (this goes back to knowing and enforcing the specification requirements), 3) Attending unnecessary and inefficient meetings, 4) Architect not having good organization or workflow (keeping accurate logs, filing, making it easy to quickly find things and know what tasks are open and when they are due), 5) Architects (and consultants) who don't fully answer the question or complete the task, 5) Consultants who are not timely or thorough. 6) Missed coordination by the design team (it usually takes more effort in CCA to resolve than during design).

Issues that arise during the CCA phase can effect the overall profitability of a project. The CCA phase can be demanding on large, complex projects. To successfully deliver a project, a significant amount of time and effort may be necessary. Unfortunately, the budget can be tight during the CCA phase and it may be difficult to request extra fee from an owner being that the CCA phase is at the end of the project and the owner's budget is diminished.  Here is a list of some causes that affect project profitability during CCA:

1. Fees not aligned to scope of work during contract negotiations.
1. Underestimated fees for the CCA phase due to unclear or misunderstood scope.
2. Optimistic work plan did not budget enough hours.
3. Owner unwilling to compensate for adequate hours. Owner may not be convinced of the value architects provide during the CCA phase
4. Onerous contractual terms/ client processes required more hours than anticipated
5. Remaining fee is insufficient.  The bulk of fees were spent during the design phase and there isn't enough fee remaining to budget adequately for the CCA phase.
2. Scope creep
1. Client design changes require additional time and effort of architect
2. Client demands architect manage more of the CCA process
3. Onerous GC requests
1. GC requests architect to coordinate work of subcontractors
2. Excessive substitution requests. Each requires time for the architect to review and evaluate.
4. Incomplete submittals
1. Missing or uncoordinated shop drawings
2. Unanswered questions from subcontractors to GC are directed to architect
5. Inefficiency of GC
1. Inexperienced GC project engineers. Architect may need to spend time assisting project engineers to maintain the pace of construction
2. Turn over of GC's staff. The loss of project knowledge on the contractor's side could cause the architect to revisit already resolved issues
3. Excessive/unwarranted RFI's. Inefficient use of architect's time spent on questions related to scope already clearly covered in the contract documents
4. Incomplete work at Substantial competition. This can cause inefficiencies in punch list review.
6. Schedule delays
1. Bid phase extended due to issues in bid/award process.
2. Construction schedule delay/extension. This can impact wage escalation and extend the architect's time on the project.
7. AHJ inspection issues. Inspector may be overly demanding and interpret the code differently than anticipated.

There are specific strategies to help mitigate some of these issues. However, having a discussion with the client and contractor early on to managing the expectations can help avoid some of these issues altogether.

What are other challenges that architects face during CCA that can impact profitability?

Issues that arise during the CCA phase can effect the overall profitability of a project. The CCA phase can be demanding on large, complex projects. To successfully deliver a project, a significant amount of time and effort may be necessary. Unfortunately, the budget can be tight during the CCA phase and it may be difficult to request extra fee from an owner being that the CCA phase is at the end of the project and the owner's budget is diminished.  Here is a list of some causes that affect project profitability during CCA:

1. Fees not aligned to scope of work during contract negotiations.
1. Underestimated fees for the CCA phase due to unclear or misunderstood scope.
2. Optimistic work plan did not budget enough hours.
3. Owner unwilling to compensate for adequate hours. Owner may not be convinced of the value architects provide during the CCA phase
4. Onerous contractual terms/ client processes required more hours than anticipated
5. Remaining fee is insufficient.  The bulk of fees were spent during the design phase and there isn't enough fee remaining to budget adequately for the CCA phase.
2. Scope creep
1. Client design changes require additional time and effort of architect
2. Client demands architect manage more of the CCA process
3. Onerous GC requests
1. GC requests architect to coordinate work of subcontractors
2. Excessive substitution requests. Each requires time for the architect to review and evaluate.
4. Incomplete submittals
1. Missing or uncoordinated shop drawings
2. Unanswered questions from subcontractors to GC are directed to architect
5. Inefficiency of GC
1. Inexperienced GC project engineers. Architect may need to spend time assisting project engineers to maintain the pace of construction
2. Turn over of GC's staff. The loss of project knowledge on the contractor's side could cause the architect to revisit already resolved issues
3. Excessive/unwarranted RFI's. Inefficient use of architect's time spent on questions related to scope already clearly covered in the contract documents
4. Incomplete work at Substantial competition. This can cause inefficiencies in punch list review.
6. Schedule delays
1. Bid phase extended due to issues in bid/award process.
2. Construction schedule delay/extension. This can impact wage escalation and extend the architect's time on the project.
7. AHJ inspection issues. Inspector may be overly demanding and interpret the code differently than anticipated.

There are specific strategies to help mitigate some of these issues. However, having a discussion with the client and contractor early on to managing the expectations can help avoid some of these issues altogether.

What are other challenges that architects face during CCA that can impact profitability?

Most architects who look into this issue are focused on how to be more efficient and to reduce the impact that elements without our control have in our workload.  While this is very important, it is all "after the fact".  There is something, however, that we can do way before the construction fence goes up:  Negotiate a better CA fee.  

Many architects calculate their CA fee on a percentage of their architectural fees, which are frequently tied to the construction value.  This is entirely inadequate, as CV does not drive but a minuscule part of the CA effort.  To estimate more accurately what the cost of providing CA services may be, it is helpful to think about it in two segments:  Office and Field.  And to compute how many hours these two efforts may take, consider these items of work:

For Office-related work, three items carry the lion share of the workload:

1. Submittals:  Read your own spec and calculate how many submittals you are asking the contractor to produce, and then assign an average review time per submittal (3-4 hours, including processing?).  don't forget to account for the time required to review and process the submittals reviewed by your subconsultants.
2. RFI's: Assign a number of RFI's per day of Construction Schedule (1.5-2.5 RFI's/day?) based on how complex your project is and how experienced the team who produced the CD's was.  Then assign an average review and processing time per RFI (2-3 hours?).  Include time to review the RFI's answered by your subconsultants.
3. Applications for Payment: 1 per month of schedule, at 2-3 hours per month, depending on how large and complex the pay app is.
4. Change Orders are not supposed to cost you anything, because you are supposed to bill your client for the effort.

For Field Work

1. Site visits and OAC's:  Estimate how many of these there are going to be, and write them into the contract.  Then estimate the time that it will take to accomplish them, including travel time, and the time it will take to write your field visit report and write/review the meeting minutes
2. Punch list: How many people, for how many days?  Include travel, and punch list preparation.

These five tasks constitute 75-80% of your CA hours.  So multiply your total by 1.25-1.33 and you'll have a good estimate of the hours it is likely to take you to do CA.

Then ask your Client to pay for it on an hourly basis, with a not to exceed amount.  

And take a look at the list above, and realize that none of these items of work are driven by the construction value, which is a very poor stand-in for duration, complexity, quality of the CD's, distance to the site, etc. 

Issues that arise during the CCA phase can effect the overall profitability of a project. The CCA phase can be demanding on large, complex projects. To successfully deliver a project, a significant amount of time and effort may be necessary. Unfortunately, the budget can be tight during the CCA phase and it may be difficult to request extra fee from an owner being that the CCA phase is at the end of the project and the owner's budget is diminished.  Here is a list of some causes that affect project profitability during CCA:

1. Fees not aligned to scope of work during contract negotiations.
1. Underestimated fees for the CCA phase due to unclear or misunderstood scope.
2. Optimistic work plan did not budget enough hours.
3. Owner unwilling to compensate for adequate hours. Owner may not be convinced of the value architects provide during the CCA phase
4. Onerous contractual terms/ client processes required more hours than anticipated
5. Remaining fee is insufficient.  The bulk of fees were spent during the design phase and there isn't enough fee remaining to budget adequately for the CCA phase.
2. Scope creep
1. Client design changes require additional time and effort of architect
2. Client demands architect manage more of the CCA process
3. Onerous GC requests
1. GC requests architect to coordinate work of subcontractors
2. Excessive substitution requests. Each requires time for the architect to review and evaluate.
4. Incomplete submittals
1. Missing or uncoordinated shop drawings
2. Unanswered questions from subcontractors to GC are directed to architect
5. Inefficiency of GC
1. Inexperienced GC project engineers. Architect may need to spend time assisting project engineers to maintain the pace of construction
2. Turn over of GC's staff. The loss of project knowledge on the contractor's side could cause the architect to revisit already resolved issues
3. Excessive/unwarranted RFI's. Inefficient use of architect's time spent on questions related to scope already clearly covered in the contract documents
4. Incomplete work at Substantial competition. This can cause inefficiencies in punch list review.
6. Schedule delays
1. Bid phase extended due to issues in bid/award process.
2. Construction schedule delay/extension. This can impact wage escalation and extend the architect's time on the project.
7. AHJ inspection issues. Inspector may be overly demanding and interpret the code differently than anticipated.

There are specific strategies to help mitigate some of these issues. However, having a discussion with the client and contractor early on to managing the expectations can help avoid some of these issues altogether.

What are other challenges that architects face during CCA that can impact profitability?

Most architects who look into this issue are focused on how to be more efficient and to reduce the impact that elements without our control have in our workload.  While this is very important, it is all "after the fact".  There is something, however, that we can do way before the construction fence goes up:  Negotiate a better CA fee.  

Many architects calculate their CA fee on a percentage of their architectural fees, which are frequently tied to the construction value.  This is entirely inadequate, as CV does not drive but a minuscule part of the CA effort.  To estimate more accurately what the cost of providing CA services may be, it is helpful to think about it in two segments:  Office and Field.  And to compute how many hours these two efforts may take, consider these items of work:

For Office-related work, three items carry the lion share of the workload:

1. Submittals:  Read your own spec and calculate how many submittals you are asking the contractor to produce, and then assign an average review time per submittal (3-4 hours, including processing?).  don't forget to account for the time required to review and process the submittals reviewed by your subconsultants.
2. RFI's: Assign a number of RFI's per day of Construction Schedule (1.5-2.5 RFI's/day?) based on how complex your project is and how experienced the team who produced the CD's was.  Then assign an average review and processing time per RFI (2-3 hours?).  Include time to review the RFI's answered by your subconsultants.
3. Applications for Payment: 1 per month of schedule, at 2-3 hours per month, depending on how large and complex the pay app is.
4. Change Orders are not supposed to cost you anything, because you are supposed to bill your client for the effort.

For Field Work

1. Site visits and OAC's:  Estimate how many of these there are going to be, and write them into the contract.  Then estimate the time that it will take to accomplish them, including travel time, and the time it will take to write your field visit report and write/review the meeting minutes
2. Punch list: How many people, for how many days?  Include travel, and punch list preparation.

These five tasks constitute 75-80% of your CA hours.  So multiply your total by 1.25-1.33 and you'll have a good estimate of the hours it is likely to take you to do CA.

Then ask your Client to pay for it on an hourly basis, with a not to exceed amount.  

And take a look at the list above, and realize that none of these items of work are driven by the construction value, which is a very poor stand-in for duration, complexity, quality of the CD's, distance to the site, etc. 

Issues that arise during the CCA phase can effect the overall profitability of a project. The CCA phase can be demanding on large, complex projects. To successfully deliver a project, a significant amount of time and effort may be necessary. Unfortunately, the budget can be tight during the CCA phase and it may be difficult to request extra fee from an owner being that the CCA phase is at the end of the project and the owner's budget is diminished.  Here is a list of some causes that affect project profitability during CCA:

1. Fees not aligned to scope of work during contract negotiations.
1. Underestimated fees for the CCA phase due to unclear or misunderstood scope.
2. Optimistic work plan did not budget enough hours.
3. Owner unwilling to compensate for adequate hours. Owner may not be convinced of the value architects provide during the CCA phase
4. Onerous contractual terms/ client processes required more hours than anticipated
5. Remaining fee is insufficient.  The bulk of fees were spent during the design phase and there isn't enough fee remaining to budget adequately for the CCA phase.
2. Scope creep
1. Client design changes require additional time and effort of architect
2. Client demands architect manage more of the CCA process
3. Onerous GC requests
1. GC requests architect to coordinate work of subcontractors
2. Excessive substitution requests. Each requires time for the architect to review and evaluate.
4. Incomplete submittals
1. Missing or uncoordinated shop drawings
2. Unanswered questions from subcontractors to GC are directed to architect
5. Inefficiency of GC
1. Inexperienced GC project engineers. Architect may need to spend time assisting project engineers to maintain the pace of construction
2. Turn over of GC's staff. The loss of project knowledge on the contractor's side could cause the architect to revisit already resolved issues
3. Excessive/unwarranted RFI's. Inefficient use of architect's time spent on questions related to scope already clearly covered in the contract documents
4. Incomplete work at Substantial competition. This can cause inefficiencies in punch list review.
6. Schedule delays
1. Bid phase extended due to issues in bid/award process.
2. Construction schedule delay/extension. This can impact wage escalation and extend the architect's time on the project.
7. AHJ inspection issues. Inspector may be overly demanding and interpret the code differently than anticipated.

There are specific strategies to help mitigate some of these issues. However, having a discussion with the client and contractor early on to managing the expectations can help avoid some of these issues altogether.

What are other challenges that architects face during CCA that can impact profitability?

Great insight, Gus. Can you clarify what you mean by "4. Change Orders are not supposed to cost you anything, because you are supposed to bill your client for the effort."? I'm thinking about contractor change orders and reviewing their cost proposals which often is a part of our required tasks, so I am not understanding how this wouldn't be included in what you estimate in your budget. Do you mean you are already billing the owner for this time if you are hourly? 

Most architects who look into this issue are focused on how to be more efficient and to reduce the impact that elements without our control have in our workload.  While this is very important, it is all "after the fact".  There is something, however, that we can do way before the construction fence goes up:  Negotiate a better CA fee.  

Many architects calculate their CA fee on a percentage of their architectural fees, which are frequently tied to the construction value.  This is entirely inadequate, as CV does not drive but a minuscule part of the CA effort.  To estimate more accurately what the cost of providing CA services may be, it is helpful to think about it in two segments:  Office and Field.  And to compute how many hours these two efforts may take, consider these items of work:

For Office-related work, three items carry the lion share of the workload:

1. Submittals:  Read your own spec and calculate how many submittals you are asking the contractor to produce, and then assign an average review time per submittal (3-4 hours, including processing?).  don't forget to account for the time required to review and process the submittals reviewed by your subconsultants.
2. RFI's: Assign a number of RFI's per day of Construction Schedule (1.5-2.5 RFI's/day?) based on how complex your project is and how experienced the team who produced the CD's was.  Then assign an average review and processing time per RFI (2-3 hours?).  Include time to review the RFI's answered by your subconsultants.
3. Applications for Payment: 1 per month of schedule, at 2-3 hours per month, depending on how large and complex the pay app is.
4. Change Orders are not supposed to cost you anything, because you are supposed to bill your client for the effort.

For Field Work

1. Site visits and OAC's:  Estimate how many of these there are going to be, and write them into the contract.  Then estimate the time that it will take to accomplish them, including travel time, and the time it will take to write your field visit report and write/review the meeting minutes
2. Punch list: How many people, for how many days?  Include travel, and punch list preparation.

These five tasks constitute 75-80% of your CA hours.  So multiply your total by 1.25-1.33 and you'll have a good estimate of the hours it is likely to take you to do CA.

Then ask your Client to pay for it on an hourly basis, with a not to exceed amount.  

And take a look at the list above, and realize that none of these items of work are driven by the construction value, which is a very poor stand-in for duration, complexity, quality of the CD's, distance to the site, etc. 

Issues that arise during the CCA phase can effect the overall profitability of a project. The CCA phase can be demanding on large, complex projects. To successfully deliver a project, a significant amount of time and effort may be necessary. Unfortunately, the budget can be tight during the CCA phase and it may be difficult to request extra fee from an owner being that the CCA phase is at the end of the project and the owner's budget is diminished.  Here is a list of some causes that affect project profitability during CCA:

1. Fees not aligned to scope of work during contract negotiations.
1. Underestimated fees for the CCA phase due to unclear or misunderstood scope.
2. Optimistic work plan did not budget enough hours.
3. Owner unwilling to compensate for adequate hours. Owner may not be convinced of the value architects provide during the CCA phase
4. Onerous contractual terms/ client processes required more hours than anticipated
5. Remaining fee is insufficient.  The bulk of fees were spent during the design phase and there isn't enough fee remaining to budget adequately for the CCA phase.
2. Scope creep
1. Client design changes require additional time and effort of architect
2. Client demands architect manage more of the CCA process
3. Onerous GC requests
1. GC requests architect to coordinate work of subcontractors
2. Excessive substitution requests. Each requires time for the architect to review and evaluate.
4. Incomplete submittals
1. Missing or uncoordinated shop drawings
2. Unanswered questions from subcontractors to GC are directed to architect
5. Inefficiency of GC
1. Inexperienced GC project engineers. Architect may need to spend time assisting project engineers to maintain the pace of construction
2. Turn over of GC's staff. The loss of project knowledge on the contractor's side could cause the architect to revisit already resolved issues
3. Excessive/unwarranted RFI's. Inefficient use of architect's time spent on questions related to scope already clearly covered in the contract documents
4. Incomplete work at Substantial competition. This can cause inefficiencies in punch list review.
6. Schedule delays
1. Bid phase extended due to issues in bid/award process.
2. Construction schedule delay/extension. This can impact wage escalation and extend the architect's time on the project.
7. AHJ inspection issues. Inspector may be overly demanding and interpret the code differently than anticipated.

There are specific strategies to help mitigate some of these issues. However, having a discussion with the client and contractor early on to managing the expectations can help avoid some of these issues altogether.

What are other challenges that architects face during CCA that can impact profitability?