Tennessee City Managers Association, October 28, 2009, "Modern Design and Construction in Tennessee governments"
This was a presentation by a law firm that specialized in construction management and contracts. The session reviewed reducing and managing "risk exposure" such as improper design, faulty consultants, delays, bodily injury and other risks and dangers in construction management.
This was a valuable session, since I have never attended a session that went into this valuable subject. Some thoughts:
Project phases include Project Planning; Design, Bidding, Construction and Inspection. The City is a participant in every phase.
They emphasized importance of being an "Active Owner" and being involved in all phases of the project. The "Active Owner" leads the project, the Passive Owner allows consultants etc. to take over the project and does not maintain control of the project. The Passive Owner focuses on project costs rather than value.
Some thoughts that I noted for future reference include:
-Insurance-make sure getting what paid paid for.
-Professional Liability Insurance: Generally limits are too low, need coverage over over all phases of the project and generally there are limited defense costs
-Builders Risk Insurance: Owner should purchase this, since this is a profit center for the contractor and, if the City purchases it, it insures it is adequate. Get "All Risk" policy
-Commercial General Liability: Injury, property damage etc., have coverage for at least the duration of the contract.
- of Care" Assume necessary for professional services
-For all contracts etc.(including consultants etc.), avoid using the "standard form"-it tends to favor the consultant etc. Especially watch for "waivers". Standard
Especially negotiate: Scope of Work definition; Change Order provisions and the scheduling provisions.
This was a very valuable session, especially since I need to improve in contract/project administration and this definitely provides infomation an this.
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