Paper Contracting - The How-To of Construction Management Contracting Book + eBook (PDF)

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$55.50

Looking for a better way to make a living in construction? Construction consultants are doing that right now. They don't have the headaches common on nearly every project – risk of loss, code compliance, warranty claims, liens, and – always – the need for more capital.


If working as a consulting contractor appeals to you – and if you aren't exactly sure how to do it – consider Paper Contracting. The co-author, William D. Mitchell, has completed over 100 projects as a construction consultant – everything from home remodels under $100 thousand to government projects worth over $100 million.

Weight 1.6800
ISBN 978-1-572182-70-7
Page Count 272
Author William D. Mitchell & Gary Moselle
Publisher Craftsman Book Company
Dimensions 8-1/2 x 11
$55.50

Looking for a better way to make a living in construction?

Construction consultants are doing that right now. They don't have the headaches common on nearly every project – risk of loss, code compliance, warranty claims, liens, and – always – the need for more capital.

Consulting contractors work with the designer, get owner approval of the plans, guarantee a maximum price, select trade contractors, make sure work is done right -- and then collect a little extra for finishing under budget. It can be a good business. But it's not a general contracting business. It's a consulting contractor business: no employees, no inventory, no payables, no warranty, no investment, no liens, no risk.

Is anyone really doing this?
It's the way most federal, state and municipal jobs are done today, including many of the largest projects, e.g. the Corps of Engineers. Many commercial and residential jobs are run by consulting contractors – sometimes called paper contractors. Some of the most experienced, most successful, most respected construction professionals in the industry fit the definition of paper contractor. And for good reason.

A consulting contractor is the owner's representative – answers only to the owner. The consultant's job is to protect the owner against high costs, delay, shoddy work and risk of loss. No one else on the site shares that agenda.

Finding work as a construction consultant
It's not hard. In fact, why not suggest consulting every time you bid a job. The pitch goes something like this:

I can save you some money on this job. I'll act as your consultant at a price my competition can't touch. There's zero profit for me in this job. Just pay me for my time. I'll give your job the same attention I give to every project I take on, but with no markup. You can't beat that deal. Say the word and I'll write up a contract we both can live with.

If working as a consulting contractor appeals to you – and if you aren't exactly sure how to do it – consider Paper Contracting. The co-author, William D. Mitchell, has completed over 100 projects as a construction consultant – everything from home remodels under $100 thousand to government projects worth over $100 million.

Covers consulting when the fee is either (1) a fixed amount, (2) a percent of the job cost, or (3) a guaranteed maximum price (consulting contractor "at risk"). Includes a free Web link to sample consulting contracts legal for residential and commercial work in each of the 50 states.

For more information, or to see video from the author, click here

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You're reviewing: Paper Contracting - The How-To of Construction Management Contracting Book + eBook (PDF)

  1. Paper Contracting 5
       Why Owners Choose Construction Managers................................................... 8
       Construction Management Summarized.............................................. 9
       Opportunities for CM Contractors.........11
       What’s Different about CM Contracting?............................................ 12
       Overhead & Profit.................................... 16
       The CM Contractor’s Fee.........................17
  2. A Case Study 23
       The Facts.................................................... 24
       Lessons for CM Contractors....................31
  3. Managing Pre-Construction Services 37
       A Contractor’s Perspective......................37
       Adding Value During the Design Phase........................................................ 38
       Finding Prospects..................................... 40
       The Initial Contact: What’s Required?...41
       The Second Meeting: Make an Offer......47
       The Third Meeting: Get a Commitment................................. 48
       A Formula for Success............................. 50
       Q & A on CM Contracts.......................... 55
       Your Design & Engineering Team...........57
       The Design Process...................................61
       How Architects Work.............................. 62
       Your Contract for Pre-Construction Services.................................................... 64
  4. Review the Plans and Specs 67
       Plan Checking........................................... 68
       The Six Cs of Plan Review...................... 70
       Cost Estimates...........................................77
       Pulling the Permit.................................... 79
       The First Schedule.................................... 82
  5. Preparing Bid Packages & Evaluating Bids 87
       Public vs. Private Contracts.................... 88
       The Bid Package....................................... 89
       Getting the Word Out.............................. 90
       The Invitation to Bid................................ 95
       The Pre-Bid Conference............................97
       Awarding the Contract.......................... 100
       Invitation to Bid Form........................... 103
  6. Reviewing the Trade Contracts 111
       Essentials in Every Construction Contract..................................................112
       Optional Contract Terms.......................114
       Contract Bias............................................116
       Comply with State Law........................ 118
       Your Own Contract................................ 120
       Ordering Materials and Services..........121
  7. Observing Day-to-Day Construction 125
       Direct, Oversee, Monitor and Advise............................................... 126
       Bonds and Insurance.........................127
       Staying on Schedule..........................131
       Contractor Claims for Delay........... 140
       LEED Green Projects........................ 144
       Jobsite Safety..................................... 145
       Defective Work...................................147
       Quality Assurance............................ 148
       Hazardous Materials........................ 149
       Cleanup.............................................. 149
  8. Keeping the Owner Informed 153
       Heading Off Problems...................... 154
       Information Channels...................... 156
       Submittals, Samples, Shop Drawings.......................................... 159
       Significance of Approval................. 162
       Retaining Construction Records..... 163
       Your Job Log...................................... 165
       Contacts for Everyone......................167
       Record Documents........................... 168
  9. Evaluating Payment Requests 171
       The Request for Payment................ 172
       The Schedule of Values.................... 175
       Final Payment....................................177
       Release of Retainage......................... 179
       Interest on Past Due Balances..........181
       Pay or Reject?.................................... 182
       Rejections........................................... 183
       Liens & Waivers.................................187
       Keeping Track of Payments............. 189
       Face Time with Owner..................... 192
  10. Communicating with Contractors and Suppliers 195
       Limits of Authority............................197
       Manufacturer’s Instructions........... 198
       Interpreting the Contract................. 199
       Interpreting the Plans & Specs........201
       Correcting Design Defects............... 205
       Job Conferences..................................207
       Suspension of the Job....................... 209
       Termination for Cause.......................211
  11. Assisting with Change Orders 213
       Mutual Agreement vs. Force Account............................................ 215
       Negotiating Price Changes.............. 216
       Processing Change Orders...............221
       Value Engineering............................. 224
  12. Protecting Against Construction Claims 227
       Allocating Risk of Loss..................... 228
       Primary Source of Claims: Surprises.......................................... 232
       Site Walk............................................ 233
       Errors in the Plans............................ 235
       Notice of Discrepancy...................... 236
       Differing Site Conditions................. 236
       Resolving Contractor Claims.......... 239
       Mediation, Arbitration & Litigation...........................................241
  13. Directing Project Closeout 247
       Beneficial Occupancy........................247
       Inspection for Substantial Completion...................................... 249
       Substantial Completion Punch List........................................ 254
       Final Completion.............................. 256
       Callbacks.............................................257
       Express and Implied Warranties.... 258
       Warranty Exclusions.........................261
       Responsibility for Warranty Claims............................................... 262

    Index.............................................................. 265
CM Contracting is replacing traditional construction contracting on many projects – from the largest public and private jobs to home improvement work. Traditional construction practice (owner, prime contractor and subcontractor) has disadvantages that every traditional general contractor knows all too well:
  • Risk of loss
  • Disputes with subs and suppliers
  • Negative cash flow
  • Slow pay
  • Warranty claims
  • Code compliance
  • Oppressive regulation
  • Failed inspections
Modern construction managers leave these problems to others – avoiding the worst headaches while delivering good value to their clients.

What is a construction manager?
A construction manager earns a fee as a consultant, helping the owner:
  • Get the right plans and specs
  • Keep the owner informed of progress
  • Prepare bid packages and contracts
  • Evaluate payment requests
  • Evaluate the bids
  • Assist with change orders
  • Observe day-to-day construction
  • Protect the owner from claims
A construction manager earns a consulting fee – period. He neither buys nor installs materials, contracts with no trades and pays no bills. The owner signs the contract, pays the bills and holds installing contractors responsible for their work.

Most of a construction manager’s task will come as second nature to experienced traditional contractors. What won’t come easy is the construction management contract itself. CM contracts are very different from traditional prime contracts – and have to be drawn very carefully to avoid misunderstandings with property owners and problems with state authorities. That’s why this book offers access to downloadable CM contracts that comply with unique laws in all 50 states and the District of Columbia.

The Authors
WILLIAM D. MITCHELL is a successful construction manager, having completed dozens of residential, commercial and institutional projects from under $100,000 to over $100,000,000.

GARY MOSELLE, J.D. U.C. Berkeley, is a member of the California bar, specializing in state-specific construction contracts, including CM contracts for residential and commercial projects.