Appendix_5;_DRAFT_Construction_Mgmt_Letter_Agreement.pdf

Appendix 5

CONSTRUCTION MANAGEMENT LETTER AGREEMENT

The Exchange Partner is responsible for hiring an independent Construction Management (CM) firm to monitor the Exchange Partner’s Contractor's activities. The CM firm will provide oversight, relative to the Contractor's Quality Control program and the daily on-site inspections and testing. The CM firm will also be responsible for all contract administration activities associated with the design and construction of the projects. This includes, but is not limited to, approving and tracking the contractor's schedule, reviewing design and construction submittals, providing field technical support, and providing the necessary written correspondence to the contractor.

The CM firm’s responsibilities and services are set forth in “Schedule 1” attached hereto. Answers will be given by personnel on a pre-authorized list, in accordance with “Schedule 1” attached hereto.

United States Army Corps of Engineers (USACE) will evaluate and approve in writing the Exchange Partner’s CM firm's qualifications and scope of services and USACE will also monitor the design and construction Quality Control processes to ensure that the appropriate processes are in place and functioning well. USACE has approved _________________ as the CM firm.

QUALITY ASSURANCE ACTIVITIES

USACE oversight will be exercised to review the quality assurance measures that the Independent Construction Manager has in place and the quality control processes that the Contractor has in place in order to accomplish overall proper design and construction quality as well as code compliance. It is emphasized that the USACE will play an oversight role only and that ultimate responsibility for code compliance rests with the Exchange Partner. In general, the projects shall meet the applicable requirements of the most recent IBC, UFC 4- 171-05 dated November 15, 2012, the Design Guide for Army Reserve Facilities, and the Army Reserve IT Manuals in place at the time of the execution of the Exchange Agreement. However, there may be additional applicable building codes that may apply.

USACE oversight will at a minimum consist of the following (USACE may elect to inspect construction progress on a periodic basis):

a. Acceptance of the final Construction Documents and Design Narrative. Acceptance criteria shall rely upon compliance with the Army Reserve Real Property Exchange Criteria and Quality Standards. Government-specific requirements/specifications exceeding local and national codes may be waived at the option of the Government, except as required by law; such waivers must be reflected in the Design Narrative. USACE representatives shall be invited to participate in all design review meetings and shall receive a minimum of four (4) copies of each design submittal, along with a pdf electronic version of the design submittals. USACE will be provided six (6) copies of the systems Operating and Maintenance Manual including detailed instructions on the use and maintenance of all building and related systems. The Final Design submittal shall include a draft DD Form 1354, Transfer and Acceptance of Military Real Property, a sample of which the USACE shall provide to the Exchange Partner.

b. USACE will provide general construction oversight throughout the construction period

(either by USACE Employees or USACE Contractors) for the purpose of providing USACE quality assurance. USACE will notify the Exchange Partner of any exceptions taken to the work. USACE review and acceptance of the construction does not relieve the Exchange Partner from responsibility for compliance with all requirements of the Exchange Agreement.

This provisions set forth in this Construction Management Exhibit are a part of the Exchange Agreement and are therefore subject to all the terms and conditions set forth in the Exchange Agreement.

IN WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals on the date subscribed opposite their respective names.

SCHEDULE 1

CONSTRUCTION MANAGEMENT OBLIGATIONS

The independent Construction Management (CM) firm’s responsibilities and services will include the following:

1. UPON RECIEPT OF WORKING DRAWINGS, PLANS AND SPECS

(a) Review and comment on the contract drawings and specifications and other relevant contract documents in regard to general compliance with the scope of work and consensus industry standards.

(b) Review the project soils report for adequacy and confirm that the concept design is in accordance with the recommendations of the report;

(c) Review all available site works and construction plans and specifications (specifically, site/infrastructure plans and specifications in order that the work be commenced as soon as possible);

(d) Review and comment on the contractor’s proposed construction schedule.

(e) Review and comment on the contractor’s proposed independent quality control program.

(f) Work through resolution of any questions and issues raised in the review process and re-issue relevant reports.

2. DETAIL DESIGN AND CONSTRUCTION MONITORING REVIEW:

(a) The CM will be required to review design documentation at the following completion stages listed below:

Conceptual Design (approximately 10%) Schematic

Design (approximately 35%) Development

(approximately 65%) Construction Documents

(approximately 100%)

The list of deliverables for these different design levels will be enumerated in the Architect & Engineers contract.

The CM will consult with designated Army personnel to ensure that all appropriate functional requirements are included. When satisfied that any changes required have been incorporated into the documents, the CM will sign each “For Construction” drawing to certify that the scope described in the specifications and drawings are in compliance with the requirements applicable to Federal, State, City and County codes and regulations

(b) Conduct Basic Site Reviews (as defined below) and attend pre- construction conferences as detailed in the construction schedule.

(c) Upon obtaining knowledge thereof, notify US Army Corps of Engineers, Savannah

District, (USACE) and the Exchange Partner of deviations from the plans and specifications and send the USACE and the Exchange Partner a report within five

(5) Business Days after each Basic Site Review or as required (the report should include, but not be limited to, a summary of work progress and of problems and resolutions).

(d) The CM will provide a Certified Construction Manager who is certified by the

Construction Management Association of America. The CM will also provide any necessary specialized support staff such as contract administrators or specialized engineering personnel to complete the following tasks:

(i) independently verify via random checks all processes, procedures, cover up inspections, materials tests and close- out testing required to be carried out under the Contractor’s quality control program; and

(ii) arrange for independent tests on any materials or equipment that potentially is not in conformance with the requirements of the construction. The Independent Construction Manager shall review the qualification of any QC or QA laboratory that is proposed.

(iii) Coordinate and/or review, as appropriate, all design and

Construction plans and specifications

(iv) Coordinate and/or review, as appropriate, all design and construction Phase “Request For Information” (RFIs); RFIs that require Government input shall be forwarded to the Corps of Engineers, Savannah Resident Office.

(v) Participate in various coordination meetings with the contractor, exchange partner, and Government personnel, especially those meetings involving project closeout.

(e) Consultation with the USACE regarding Contractor’s performance of the construction contract

(f) Provide independent recommendations regarding Exchange Agreement proposed changes or modifications per 4.2.4 in the Exchange Agreement.

3. UPON COMPLETION OF EACH CONSTRUCTION COMPONENT, OR

PORTION OF A CONSTRUCTION COMPONENT:

(a) Review and approve as-built plans;

(b) Review and approve completed punch list items;

(c) Establish and notify all parties of the date of acceptance for any construction component, portion of a construction component or any unit by issuing certificates of substantial completion and punch lists;

(d) Certify to the USACE jointly with the Contractor’s quality control manager, that the applicable work has been completed in accordance with the approved plans and specifications and the requirements of the construction contract; and

(e) Establish and notify all parties of the expiration of the defects liability period for each component or phase or portion of a component or phase by issuing a certificate of completion.

4. UPON COMPLETION OF ALL OF THE CONSTRUCTION COMPONENTS:

(a) Review building warranty packages and information for compliance with project specifications; and

(b) Conduct a final project review and, upon resolution of all requirements, issue a certificate of substantial completion; and a determination of final completion.

5. DETAILED REQUIREMENTS (a) (a) Basic

Site Review

The CM will undertake scheduled site review visits (each, a "Basic Site Review") on a monthly basis in coordination with the USACE to review the project and to coordinate with the Army Reserve to review adherence to construction contract terms, to confirm compliance by the Contractor with the Contractor’s approved Quality Control Program and to review the status of construction completion. The reviews will be performed by a representative of the CM satisfactory to the USACE on a day agreeable with the USACE and the Contractor. The CM will notify the USACE and the Exchange Partner immediately if any unsatisfactory work or plan deviations are observed, and observe and report on corrective action recommended and/or taken.

(b) Written Report

Within a week of the scheduled site review, four (4) copies of a written report (the “Construction Report”) will be submitted to the USACE and the Exchange Partner for distribution and include at a minimum the following information:

(1.) As a result of consultation with the USACE, a description of any conflicts, deficiencies, deviations and omissions between the construction observed in place and the construction contract. In addition, any outstanding defects or deviations noted in previous design & construction reports will be described noting the correction or resolution, if any;

(2.) Prepare a monthly construction status report detailing the progress of the construction to date in relation to the relevant construction schedule and noting any concerns or issues with sequencing or completion timing;

(3.) Review existing and ongoing soils, structural steel, concrete, and all other testing results (as prepared by others) for compliance with the specifications in the design documents and describe the effect, if any, upon the use of the structure in the event of any deficiency;

(4.) Verify that actual construction progress has been accomplished in a good and workmanlike manner, is in accordance with the intent of the construction contract and that the work has been satisfactorily accomplished;

(5.) Verify that stored materials are adequately and properly identified, secured, and protected, and are in compliance with the terms outlined in the construction contract (off-site verification will be conducted on an as needed basis at the direction of the

USACE

(6.) Analyze all proposed, or pending, change orders or modifications to the Exchange Agreement, Conceptual Design or Construction Documents, as well as existing change orders or modifications in the Exchange Agreement, report on the validity of the proposal, the impact to the project, the effect on the quality and progress of construction, and the cost effect on the construction budget;

(7.) Review all existing pre-construction inspection reports, participate in all future pre-construction inspections, and verify the appropriateness of any additions to and deletions from the scope as required,.

(8.) Review shop drawings provided by various subcontractors following approval by the contractor’s designated quality control person.

(9.) Provide quality, labeled and dated color photographs within the construction reports to more explicitly explain progress and any problems observed;

(10.) Track and report resolution of any issues / questions raised in previous site reviews.