DBSKCV Construction Management Method

Link to PDF download The DBSKCV™ Construction Management Method by Peter D. Fowler

Publication date: January 1st, 2005

Author: Pete Fowler

What is this DBSKCV TM “Method”

Since the time of the ancient Greeks, humans have been creating and using problem solving "methods" to help us structure situations to aid in identifying the best available alternatives. Some examples of these methods include:

• Classic Problem Solving (Where are we? Where are we going? How do we get there?)

• Scientific Method (Observe, Hypothesize, Predict, Test, Repeat)

• Alcoholics Anonymous' 12-Steps (admit, believe, decide, inventory, confess, prepare, ask, list, amends, continue inventory, pray for knowledge, help)

• Dr. Deming's 14-Points for Quality Management (purpose, philosophy, variation, suppliers, improvement, training, leadership, fear, barriers, slogans, eliminate MBO, workmanship, self-improvement, transformation)

• Six Sigma for Process Improvement (Define, Measure, Analyze, Improve, Control)

• Franklin Covey's Project Management Method (Visualize, Plan, Implement, Close)

• Project Management Institute's 9 Project Management Categories (Management of Scope, Time, Cost, Human Resource, Risk, Quality, Procurement, Communication, Integration)

• ASTM Standards: E 2018 Property Condition Assessments, E 2128 Standard Guide for Evaluating Water Leakage of Building Walls, E 1739 Guide for Risk Based Corrective Action.

The DBSKCVTM (pronounced "dib-skiv" - DiB-SKCiV) Method is a six-category framework to aid construction professionals in achieving construction project objectives. The DBSKCVTM Method begins with a Project Plan (Figure 1), which starts with identification of the project Objective. We then use the DBSKCVTM Menu of Deliverables (Figure 2) as a menu to select documents or actions that will aid us in moving from where we are to our stated objective. The final step in project planning is to create a step-by-step list of actions. First we plan the work, and then we work the plan. Take a minute or two to review the plan and menu.

This is harder than it sounds. Construction people have a bias toward action; which is a good thing -- we like to see things happen. But we need to resist the temptation to do work before planning. This way, we can be sure to not waste time on unnecessary activity, which is a common source of project failure.

What is Construction Management (CM)?

The Construction Management Association of America (CMAA) says the 120 most common responsibilities of a Construction Manager fall into the following 7 categories: 1. Project Management Planning, 2. Cost Management, 3. Time Management, 4. Quality Management, 5. Contract Administration, 6. Safety Management and 7. CM Professional Practice. This includes specific activities like defining the responsibilities and management structure of the project management team, organizing and leading by implementing project controls, defining roles and responsibilities and developing communication protocols, and identifying elements of project design and construction likely to give rise to disputes and claims.

Why is Construction and Construction Management Important?

Construction professionals are living in a new world. The following social & economic realities make construction, CM and professionalism in construction critical:

• Building construction is a fundamental component of human society.

• Construction constitutes nearly 10% of Gross Domestic Product (GDP).

• Consumers are expecting quality increases and price decreases in all products.

• The building industry, in general, is not keeping pace with the quality and price improvements that many industries are making.

• The building industry is not attracting the brightest young people into the industry.

• Consumers are more litigious than ever and are becoming more and more so.

• There is a proliferation of attorneys.

• The built-environment has been altered dramatically in the last 20 years.

• Consumers are more conscious of building related health issues than ever.

• In some areas, a lack of skilled construction labor makes the construction professional's job even more critical.

Project Planning and Management

There is no way to 100% guarantee project success. The closest I have found to a guarantee (and I have been looking long and hard) is to hire highly experienced geniuses, or to use a proven system. So if you are not a genius, or can not afford an entire team of them, you better read on.

It is also my experience that planning always saves time. As I mentioned before, construction people want to see things happen and it takes discipline to resist the temptation to start working before completing the Project Plan. Remember: Planning is the closest we can get to a guarantee of project success.

Growing legal risks, administrative issues, sky-rocketing workers' compensation costs, increasing fees and taxation, and complicated insurance issues are only a few of the reasons why the price of construction is higher today than ever before. In addition, managing risk and facilitating a smooth operation are reasons enough to use a system for the management of your project.

We have all heard the adage: "Good people are hard to find." I think good companies are even harder to find. All great businesses create systems that help good people achieve the goals of the company. Most companies, particularly in the construction industry, rely on individuals to develop their own systems. This means the individual has to be some kind of genius. Geniuses are hard to find, but not as hard to find as good companies with good systems.

The construction industry is attracting fewer "geniuses" than other industries. We need to make it easier for construction managers to succeed, giving them tools and techniques to keep promises, balancing the big three (cost, quality, and time), to offer continuously improving value (more quality for less cost and time), and to earn the money they could make in competing industries. Teaching construction managers to plan profitable projects and manage them through fruition is a fundamental that the construction industry is not doing well enough.

Dealing with contractors and subcontractors requires skill, professionalism, and a system. The quality of contractors ranges from excellent to criminally incompetent, which can make the process range from complex but satisfying, to nightmarish and costly. We can not rely on contractors to act professionally – if they do, let it be a pleasant surprise, and when some don't, we must have a system in place to manage the problem. My experience suggests that a nice but incompetent contractor might cost us more than a competent criminal. Don't let yourself be the victim of a contractor's lack of sophistication. If you use a process to guide you in dealing with problem contractors and project pitfalls, success is much more likely. The right planning activities at the beginning of the project will equip you to deal with the incompetent or the unscrupulous.

Summary of the DBSKCV™ Method

• Building construction is a fundamental component of human society.

• Construction constitutes nearly 10% of Gross Domestic Product (GDP).

• Consumers are expecting quality increases and price decreases in all products.

• The building industry, in general, is not keeping pace with the quality and price improvements that many industries are making.

• The building industry is not attracting the brightest young people into the industry.

• Consumers are more litigious than ever and are

Each of these categories could be books by themselves. The idea here is to fly over the subject of Construction Management so that we see the big-picture. We need to understand the forest, so we don’t get lost in the trees. Dealing with details before understanding the big picture can be dangerous. In construction, dangerous means expensive.

I. Define the Scope of Work

The “Define” phase of construction management consists of documenting the work to be performed. This is usually done graphically and in writing with plans, specifications, references to codes and standards, and detailed “Scope of Work” documents. Getting a clear, specific and detailed project scope is the first step in the construction project management process.

See the DBSKCV™ Method Menu of Deliverables (Figure 2) for the most common scope of work documentation. Depending on the type of project, this is sometimes the work of architects and engineers, but many projects are defined by owners and contractors.

Complete, detailed scope of work documentation allows parties a mutual understanding of what is being bought and sold. My company has consulted on many projects where the owner and the contractor were in dispute and the root cause was a lack of clarity from the beginning. A good “scope of work” is like building on a proper foundation and should identify the quantities and locations (“scope”) of the work as well as materials, specifications, methods and standards of workmanship. Until you have specified in writing the location, size, shape, materials and workmanship you are envisioning for your project, you are not ready to move forward in the planning process. The “scope of work” (i.e. mutual understanding of what is being bought and sold) should be updated as necessary throughout the project.

Keep in mind that the specifications or methods that are defined in the Scope of Work can mean the difference between long term success and failure. As an example, the right paint specifications can double the life of a paint job. If the owner thinks they are buying a 10-year paint job, but the specification will not deliver, a “re-meeting of the minds” might be called for.

Owners or their representatives should not sign a one or two page “Proposal” from a contractor. The “Scope of Work” in such a document is not likely to contain information specific enough to protect the owner if the workmanship is poor. In addition, the contract language will not protect the parties as well as a more complete and professional contract.

II. Budget

Estimating and budgeting are stand-alone areas of professional practice which some construction professionals dedicate their entire careers to. A good estimate for construction is based on lots of assumptions, including the scope of work. If the scope is a moving target, so will the construction costs. Direct costs of construction are usually categorized by Labor, Materials, Equipment and Subcontractors. Most good contractors estimate what they think direct construction costs will be, and then add for overhead, profit, other project costs and contingency, to come up with a contract price.

Total construction cost is made up of so many little pieces that it can become incomprehensible without a system for management. My company has worked on projects in dispute where the records were maintained so poorly that it was impossible to determine the exact costs of construction.

The importance of managing the budget cannot be understated. Before, during and after construction, the construction manager should always know where the project stands relative to the budget. During the course of construction you should know exactly what has been paid and the approximate amount remaining to complete the project.

Keeping an Expense Register that is coded to allocate all expenses is a critical activity so the original and updated Schedule of Values can be compared to the actual project expense. A Budget Worksheet (similar to AIA form G703) should be setup at the beginning of the project and maintained through project close.

III. Schedule

A schedule can take many forms, including Barr / Gantt charts, or CPM (Critical Path Method) Schedules, but the simplest is a list of activities and when they will be performed. A competent contractor should be willing to put a schedule in writing. The owner should add some contingency time of her own. The schedule gives everyone an idea of what will go on and when and will serve as a measuring stick to compare plan to actual progress. With this tool, everyone can identify problems early.

Scheduling is about communication. Successful project management requires communication of expectations with everyone involved: owner(s), designers, contractor(s), government agencies, subcontractors, suppliers, and more. Each activity in construction is usually pretty simple; the greatest difficulty is often in coordination of so many parties. There are often more things to do and coordinate than people can keep organized in their heads. Unfortunately, many projects never have a schedule put to paper, or even if they have one at the beginning, it is not used as a management tool throughout construction.

IV. Contract

A contract is a binding agreement. It should be used as a communication tool to make sure that all parties understand and agree exactly what is being bought and sold. Like any other powerful tool, it can be dangerous, so be careful. Don’t let the excitement of a big project, a smooth talker, or a busy schedule allow you to gloss over the details

A prime construction contract is an agreement between the owner and a contractor. A subcontract is an agreement between a prime contractor and some other contractor who will perform all or a portion of the work covered in the prime contract. Thus, if an owner contracts directly with a “subcontractor” like a painter, this is not a subcontract; it is a prime contract. Prime and subcontractors have different rights and responsibilities. Unfortunately, some prime and sub-contractors do not operate professionally.

All contracts for construction should be in writing. We will hit only the high-points here, but at a minimum, a construction contract should contain:

• Full contact information for all parties to the agreement, including contractor license information, physical location of all parties, and a description of the property in question.

• Detailed “Scope of Work” with material, equipment and workmanship specifications. This might include plans, and written specifications describing the work in detail, a list of fixtures, etc...

• Contract Price (Schedule of Values, Allowance Schedule, etc…)

• Payment Schedule

• Construction Schedule and any consequences for failure.

Change Orders are a natural part of construction and a contingency for them should be built into the budget. Change orders become a part of the construction contract, should always be in writing, and should be negotiated and signed at the time the change occurs, not at the end of the project.

A Payment Schedule should be negotiated at the time the contract is signed. Try to never pay more than the value of the work in place. That is, if the project is 50% complete and you have paid 75% of the contract price, then you are in a dangerous position.

Contractors’ lien rights are a complicated collection of legal protections to make sure contractors get paid for improving property. Collection of lien releases verifies that contractors have been paid and protects the property from liens.

V. Coordinate

The “coordinate” phase of construction management takes our planning and puts it to work. We spend a lot of time and energy in the define, budget, schedule, and contract phases, even though we get none of the satisfaction of seeing physical work take place. Remember: When the time to perform has arrived, the time to prepare has passed. If you effectively defined, budgeted, scheduled, and contracted the project, then this phase will go as smoothly as construction ever goes (so there will still be some problems to solve). Coordination of contractors, subcontractors, materials, equipment, inspections, changes, unforeseen conditions, personalities and forces of nature are always a challenge.

In addition to the real “work” of a construction project, the coordination phase is where the miscommunication, screaming matches, fistfights, litigation and endless frustration often occur; we could also call this phase “Herding Cats”. Managing a project from beginning to end requires a combination of construction knowledge, management skills, political savvy, and patience. While construction is usually a simple assemblage of labor, material, equipment and subcontractors, there are so many moving parts that things regularly can and do go wrong.

Management of construction requires effective communication. Let’s make this as clear as possible: OVER COMMUNICATE, in writing. If you have never read The One Minute Manager, do so before you start your next project; it takes less than 2-hours and will save more than that in the first week. The point is: (1.) Figure out what good performance looks like, communicate and document it in writing, and get agreement that everyone shares your vision (One Minute Goals). (2.) Make sure there are rewards for good performance because we all want to feel good about doing good work (One Minute Praisings), and (3.) have the courage to administer consequences for poor performance (One Minute Reprimands).

You need to have a filing system for your project and religiously document and file the mountain of project information. There are things that should be performed regularly to keep the project progressing. Forms that might be used and/or updated include: Scope of Work, Specifications, Finish Schedule(s), Schedule of Values, Budget, Expense Register, Project Schedule, Change Orders, Purchase Orders, Contacts List, Daily Log (who did what, how long it took, noteworthy conversations, etc…), Correspondence, Safety Meeting Minutes, Accident Reports, Inspection Check-Lists, Municipal inspection information, etc.

VI. Verify

Verifying that the construction is proceeding as planned is critical. This is where we compare our progress to plan. Big problems start small. When we find variations from our plan, we use our documentation system to memorialize them. Remember that property improvement contractors have become the #1 consumer complaint in the U.S.; if you do not want to be a sad statistic, then problems need to be nipped-in-the-bud.

The building department might want to inspect at specified points for life-safety issues. If someone says no permit is required, ask them to put it in writing, or call the municipality. Remember: The building department is not where inspection ends. We have listened to scores of owners bemoaning their fate saying, “Where were the city inspectors?”, when they had buildings that leaked or were otherwise constructed poorly. The owner or representative will want to “verify” at various hold-points to ensure the quantity and quality of workmanship. There may be special assemblies like roofs, decks, windows or weather-resistive assemblies that should be tested to make sure they were constructed appropriately

The contractor will be asking for payments based on the Payment Schedule and you will need to verify the work is complete and built to the standards established in the “define” phase of planning. In addition, the owner will want to collect lien releases for work that is completed and paid.

Conclusion

Remember: 1. Use a system to document your objectives and the process of construction, in writing. 2. Communicate with all of the players in the process. 3. Put everything in writing: People are more committed and more accountable when they have put all their promises in writing.

Dangers of Mold Lie in Ambiguity

Dangers of Mold - by Pete Fowler. Published by Window and Door Magazine in 2003

Lack of accepted standards and a large number of variables mean costs can escalate quickly

You’ve probably seen it on TV, and read about it in newspapers and magazines. You can find more information about it on the Internet than you could ever read, even if you quit your job to do it. For window and door manufacturers, distributors, dealers and installers, or for a business that is related in any way to building construction, real estate or insurance, mold is a scary subject.

In 1999, mold claims only came along with a small percentage of the projects I worked on as a construction consultant involved with insurance claims and litigation issues. Now claims without allegations of mold are equally rare, in Southern California at least. Have the natural or built environments changed, causing a spike in the amount of mold growing in California, or is the interest in mold due to changes in the insurance and legal environments?

The health issues that have been widely reported in the media are a real concern, but the problems do not stop there. The “dangers of mold” also include: expenses for expert inspection and testing; remediation; alternative living expenses; legal costs; business interruption; insurance coverage with skyrocketing costs or a lack of availability; bad publicity; the ambiguity in all of the above due to a lack of standards; and more.

There is an enormous volume of confusing and contradictory information available on the topic of mold and a rapidly growing population of folks claiming to be “mold experts.” We’ve all heard the horror stories, but what do you need to know as a window or door manufacturer, distributor, dealer or installer suddenly drawn into a mold-related problem? This article is designed to help you cut through the haze, give you an idea of who you should have on your team, and tell you where to find reliable information. With a little background, you’ll be able to tell if the “experts” you encounter are giving you the straight story or using the complexity and media hype as scare tactics.

What is Mold?

Let’s start with the basics: mold is any form of multi-cellular fungi that live on plant or animal (organic) matter. There are more than a million different fungal species in the world. To grow, mold requires food, moisture and time, and can flourish in temperatures between 40 and 100 degrees Fahrenheit. Even in the absence of ideal conditions, mold can lie dormant for years and “re-activate” if living conditions improve.

“Toxic molds,” a term that has been rejected by the American Industrial Hygiene Association and many experts, are those that can produce mycotoxins, and include aspergillus, penicillium, stachybotrys and others. These are the molds that you hear about on television, where some experts say they can cause severe and permanent damage to humans.

How Does it Affect Us?

Health effects of mold are at the heart of the debate. It is agreed that all molds can cause “allergic-type” reactions in humans, such as coughing, wheezing, sneezing, irritated eyes and throat, and runny nose. More severe effects may include flu-like symptoms such as fever, fatigue, respiratory dysfunction, excessive regular nosebleeds, dizziness, headaches, diarrhea, vomiting and impaired or altered immune function. Reports of these more severe symptoms are very rare, and they only occur in a small percentage of the population. Other frightening claims include a loss of balance, cognitive impairment, memory loss, pulmonary hemorrhage, liver damage and near blindness, some of which are claimed to be permanent.

Various scientific groups and agencies are in the midst of research to identify any possible link between mold exposure and permanent damage to humans, but there is no certainty widely agreed upon at this time. Most recently, the American College of Occupational and Environmental Medicine published a position statement concluding that current evidence does not support the proposition that human health has been adversely affected by inhaled mycotoxins in home, school or office environments.

There are risks, but we don’t even know how much mold is too much. There are no standards yet for acceptable exposure. There are also no tests for verifying human exposure to mold, in contrast to, for example, lead and asbestos, where physically testing the victim can prove exposure. There is, however, agreement as to who among us is most vulnerable to the effects of mold exposure: infants, children six years and younger, pregnant women, the elderly, asthmatics, allergic individuals and immunecompromised individuals, including those with HIV.

While the health effects are not fully understood, one of the clear dangers of mold for companies in the building industry is the ambiguity due to a lack of definitive standards. The ambiguity is reduced when a genuinely qualified professional assesses a contaminated site and makes recommendations based on professional judgment. But it can get ugly when another party disagrees with that assessment, because the differences in remediation costs can vary wildly and there is often a question of who pays the bills. These differences of opinion occur more often now that attorneys and “Johnny-come-lately” mold experts are an increasingly common part of the equation.

The experts who are brought into a mold case may point to a wide variety of sources for their claims, but the most commonly used guidelines come from the New York City Department of Health and Mental Hygiene, hereafter called “NYC,” the U.S. Environmental Protection Agency, the federal Centers for Disease Control and Prevention, Texas Department of Health and Texas Department of Insurance, the American Industrial Hygiene Association and the American Conference of Governmental Industrial Hygienists. The information provided in this article comes from one or more of these sources. To provide some background for companies that may face mold issues, we’ll look at some of the processes used to determine whether mold is a problem, and if so, what needs to be done to address it.

Inspection and Testing

Visual inspection is the most important initial step in assessing a situation. The amount of mold observed determines the extent of the remediation, the level of containment and the type of personal protective equipment required for workers. There are two reasons for the inspection and testing:

➣ To determine the source of the moisture and collect enough information so a repair plan can be developed to make sure the problem does not recur

➣ To determine the extent of contamination so a method of containment and remediation can be developed to safely rid the building of mold.

Bulk or surface sampling is performed by using cellophane tape or a cotton swab to collect the mold. The sample is later analyzed in a laboratory by microscopic (visual) observation. Various authorities note that identification of the spores or colonies requires considerable expertise. The NYC standard maintains that bulk or surface sampling is not required to undertake remediation, and that visual observation is adequate for assessment.

When the quantitative analysis of “how much mold is here” begins, the heart of the difficulty is found: Unlike lead or asbestos, the existence of mold does not have a “yes” or “no” answer. There are always some molds in the indoor environment. We can easily understand that, all things being equal, mold counts in a well-kept home could be less than mold counts of inferior housekeepers. This is just one of the many possible examples of an issue that has nothing to do with building construction, but could be an important variable.

Air sampling is usually performed with the use of a small pump to draw a known volume of air through a collection device that catches mold spores. This sample is analyzed in the lab to determine what types of mold are airborne. It is important to also collect samples of outdoor air to serve as a comparison to the indoor samples. As mentioned previously, there are no standards for determining how much mold is too much, so comparisons to the outdoor and to the non-affected indoor environment are critical to assessing the effects of the building and the environment on the indoor air quality. As you can imagine, the interpretation of this data is inherently complex and problematic, so much so, in fact, that NYC officials say air sampling for fungi should not be part of a routine assessment, since air sampling methods for some fungi are prone to false negative results and cannot be used to rule out contamination. According to the American Industrial Hygiene Association, microbial problems in buildings have shown that perhaps 50 percent of microbial problems are not visible. Thus, destructive testing, such as tearing into the walls to see what is happening, can be warranted, if there is other evidence suggesting hidden problems.

It is my opinion that if enough mold is found to warrant negative air containment or relocation of the occupants, or when an occupant has complained of health susceptibility to mold, an independent Certified Industrial Hygienist or similarly qualified individual should be hired, that is, a professional who is not associated with the business of the contractor performing remediation, and who is paid by or on behalf of the building owner, but not by the contractor. This professional should perform inspections before work begins, write remediation specifications and observe the remediation at defined hold points, including clearance inspections after the work is complete. This serves as a check-and-balance mechanism that experience tells me is always worth the expense.

Many professionals who commonly investigate moisture problems in buildings, including myself, say that projects suffering distress often have many sources contributing to the situation. Be warned that, just because you found a problem, it doesn’t mean you found the problem. Since mold claims often end up in the hands of insurance agents and attorneys, documentation of all observations, conclusions, recommendations and work performed is crucial.

Remediation

For the builder or contractor, remediation means getting rid of mold. There is no definitive authority or standard, and the sources of information are the same as previously noted: NYC, EPA, CDC, AIHA and ACGIH. Some of the information sources refer to the U.S. Department of Labor’s Occupational Safety and Health Administration hazardous work standards, which mandate the level of protection and qualification of workers, and hazard-communication requirements. These OSHA standards traditionally relate to hazardous cleanup for chemicals or asbestos. Another source that is frequently referred to is California’s OSHA and its new sanitation-linked mold requirements (CCR, Title 8 3362).

All authorities on mold stress the importance of repairing the source of the moisture before beginning remediation. A lack of attention to this critical activity may cause many current mold claims to return in the future. If the only professional hired is a CIH or other mold expert, he or she might not know enough about leak and moisture detection and repair to specify and oversee an effective, durable fix. For this reason, it is often necessary to have a building consultant on the team who can find the moisture source, specify a repair and make sure that repairs are performed correctly.

The professional who writes the remediation specification should indicate the level of containment required. Containment means keeping the moldy areas separated from those not affected, and is often accomplished by sealing doors, ducts and other means of escape for contaminated air, or by encapsulating the area with sheet plastic and sealing all of the seams. Most standards call for increasing levels of protection based on the surface area of mold that is found.

The table on p. 83 shows NYC requirements for containment and personal protective equipment. At Level I, no containment is required. Compare this to Level IV, where a complete isolation of the work area from occupied spaces, use of negative air equipment with high-efficiency particulate air filtration, inclusion of air locks and a decontamination chamber in the containment structure are required.

The referenced standards do not take into consideration the hidden mold often found in the course of remediation. When additional mold is found, it is important for the contractor or specifier to re-evaluate the level of protection required.

When containment is required, it is important to notify those who might be affected by the contamination, including building occupants and remediation workers. In the worst of situations, evacuation of buildings might be required. The NYC standards recommend that people who experience adverse health effects associated with exposure to fungal materials should be evacuated immediately from a building undergoing remediation, and they should remain out until the work has been completed. Other criteria for evacuation decisions include the size of the contaminated area, extent of health effects reported by building occupants and the amount of disruption likely to be caused by the remediation activities.

Remediation workers and anyone entering the remediation area may require personal protective equipment based on the corresponding level of contamination. At Level I, workers should wear rubber gloves and wear N- 95-rated masks (less than $5 each). At Level IV, this equipment could include a full-face respirator with twin HEPA-filter cartridges, mold-impervious head and foot coverings and a body suit made of a breathable material, with all gaps, such as those at wrists and ankles, sealed.

Treatment of damaged building components is different for various material types. Nonporous hard surfaces can be wiped clean. Soft materials that suffer contamination, such as wallpaper, wallboard, carpet and padding, are often removed and discarded. Wood framing requires evaluation based on the condition and extent of the mold or deterioration, and the ease or difficulty of replacement. Remediation can require removal of the mold with power tools such as grinders and sanders, then thorough cleaning with scouring pads and HEPA vacuum cleaners.

This is a very labor-intensive process, especially when the workers are wearing “moon suits.” If building contents are analyzed and found contaminated, they need to be meticulously cleaned or discarded. The value of the contents should be considered when making these recommendations, as it is sometimes found that cleaning will cost more than the items are worth.

Not long ago, contractors simply filled the old Hudson sprayer with a mild bleach solution and sprayed away if they found mold. In this use, the bleach solution is technically called a biocide. There are other biocides that were specifically formulated for the same purpose, but most authorities are no longer calling for their use, as repair of the moisture source and removal of the mold will suffice for remediation, and the odors and residual toxicity of biocides is thereby avoided. If there is mold floating around in the air, it stands to reason there might be some in the HVAC system. Guidance on remediation of contaminated HVAC systems is sparse. NYC recommends that the HVAC system be shut down during remediation activities. For Level Vb (see table on p. 83), air monitoring with the HVAC system in operation is recommended prior to re-occupancy. EPA and ACGIH refer to the EPA guide Should You Have the Air Ducts in Your Home Cleaned? The guide suggests having the air ducts in a home cleaned if there is substantial visible mold growth inside hard-surface ducts or on other components of the heating and cooling system. The service provider should agree to clean all components of the system and should be qualified to do so. Improper duct cleaning can cause indoor air problems or damaged ducts.

Clearance Criteria, the standards used for “final inspection” by the mold experts, as you might now expect, have no hard-and-fast rules. AIHA, ACGIH and EPA officials say that a remediation may be judged successful when two criteria are met:

➣ The problem that led to the mold contamination has been fixed

➣ Affected areas have been inspected and visible mold and molddamaged materials have been removed.

If air sampling is performed, the types and concentrations of molds measured indoors should be similar to those measured outdoors or in non-affected areas of the building.

ACGIH researchers add that concentrations of biological agents in any surface samples taken should be similar to those observed in well-maintained buildings or on construction and building finishing materials.

The training and qualifications of contractors and remediation workers is another hazy subject where the authorities refer to existing OSHA standards that deal with toxic cleanup work and hazard communication (again see Cal-OSHA CCR, Title 8, 3362). The OSHA references are mentioned only briefly, probably because there are no national standards specific to mold. These OSHA standards call for workers in heavy contamination areas to be trained to protect themselves and to be fitted with respiratory protection by a trained professional. Unfortunately, the type of “trained professional” is not specified.

Prevention

Given the dangers of mold, the necessity of preventing problems in the first place should be fairly evident. Build it right. But how, you ask? Training is the answer. Sources of information are abundant, but a single source that pulls the information together remains absent. I know of several groups that are trying to help, but they are probably a couple of years from seeing their visions complete, especially for residential construction (see Whole Building Design Guide, www.wbdg.org). For now, start your training program by contacting the National Association of Home Builders Research Center at www.nahbrc.org, reviewing its materials with your staff, making a list of the biggest risks you face, and starting to document and share your company’s best practices with your entire organization. Be sure to save this knowledge base in a structured way so that as new people join the organization, they too can share the accumulated wisdom.

Who needs training? Designers, builders—supervisors as well as workmen—suppliers, manufacturers and all building industry personnel. For window and door industry personnel, good training on proper installation methods and the prevention of problems can begin with ASTM International’s E 2112, the Standard Guide for the Installation of Doors, Windows and Skylights (www.astm.org). The American Architectural Manufacturers Association InstallationMasters training and certification program offers classroom instruction based on the ASTM standard (www.aamanet.org).

Also of interest is the upcoming ASTM standard, Design and Construction of Low-Rise Frame Building Wall Systems To Resist Damage Caused by Intrusion of Water Originating as Precipitation. The American Society of Heating, Refrigerating and Air-Conditioning Engineers, at www.ashrae.org, also has a wealth of information; you might start with the Handbook of Fundamentals sections on moisture in buildings.

Another aspect of building construction, often overlooked by residential builders, is testing. Assemblies that are not time-tested need to be thoughtfully designed, carefully installed and rigorously tested.

Consumer Education

Finally, education of consumers on what to expect from homes, and how to maintain them is crucial; in fact, it has now been legislated in California. A state Senate bill requires all builders to notify new homeowners of their maintenance obligations in writing. If the builder does not tell the owner that maintenance of an assembly is required, then that assembly had better last past the statute of limitations, or the builder could be on the hook. Owners also need to be taught to keep houses dry, identify leaks immediately and only allow qualified professionals to make repairs. Keeping relative humidity in a home or other building well below 65 percent is important. Builders need to make this easier with the design of the assemblies and training of the owners.

Managing Property Maintenance and Improvement

Download a PDF of Managing Property Maintenance and Improvement.

Introduction

This is the first in a five-article series about commercial or multi-family maintenance and improvements performed by contractors, administered by owners or property managers. Work by property improvement contractors has become the number one consumer complaint in the U.S. Our company commonly works for insurance companies, lawyers and owners in disputes over construction projects gone bad, so this is no surprise to us. Our experience is that a small percentage of contractors involved in property maintenance or improvement are unscrupulous; unfortunately, many are so incompetent that they might as well be stealing.

We believe significant maintenance projects should be considered “construction projects”, and managed with professionalism and processes. In addition, professional due-diligence for property managers often requires the collection of apples-to-apples proposals for large maintenance, repairs, and improvements; overcoming the difficulty of getting comparable proposals from contractors requires tremendous effort and professionalism. This article series offers a process through the planning and purchase of construction services to help you avoid common pitfalls that can lead to project shortcomings, physical defects, delays, cost over-runs, legal disputes and headaches.

For the sake of discussion, we are talking about projects for maintenance or repairs of $2,000 to $ 200,000. For larger projects, get professional construction-management help. In truth, we feel projects of $50,000 or less can be well served with professional help on budgets, bidding, contractor selection, contract development, coordination and inspection, but many owners or managers refuse to incur the front-end expense, not having the experience to recognize total project savings.

Growing legal risks, administrative issues, sky-rocketing workers’ compensation costs, increasing fees and taxation, and complicated insurance issues are only a few of the reasons why the price of construction is higher today than ever before. Since the prices are so high, saving a small percentage of total project costs can be quite meaningful. In addition, managing risk and facilitating a smooth operation are reasons enough to use a system for management of your project. Don’t rely on the contractors to act professionally – if they do, let it be a pleasant surprise, and when some don’t, have a system in place to manage the problem.

The variety of contractors ranges from excellent to criminally incompetent, and this can make the process range from complex but satisfying, to nightmarish and costly. My experience suggests that a nice but incompetent contractor might cost the owner more than a competent criminal. If you use a process to guide you in dealing with problem contractors and project pitfalls, success is much more likely. Planning is the key. The right activities at the beginning of the project will equip you to deal with the incompetent or the unscrupulous. Our system includes six categories of management for any construction project, property improvement or significant maintenance project:

• Define the Scope of Work (this includes the design phase).
• Budget: Identify how much the project will cost the contractor and owner.
• Schedule when the construction will happen (and share this information).
• Contract: Who is doing what? Everyone should know what to expect.
• Coordinate the work.
• Verify, document and communicate that everyone is doing what they should.

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I. Define the Scope of Work

The “Define” phase of construction management includes documenting the work to be performed. This can be done graphically and in writing with plans, specifications and detailed “Scope of Work” documents. Getting a clear, specific and detailed project scope is the first step in the construction project management process.

A complete, detailed Scope of Work document moves the parties toward mutual understanding of what is being bought and sold. We have worked on many projects where the owner and the contractor were in dispute, and the root cause was a lack of clarity from the beginning. A maintenance or improvement project with a good “scope of work” is like building on a proper foundation; identifying the scope (quantities) as well as methods to be employed. Until you have specified in writing the location, size, shape, materials, fixtures and workmanship you are envisioning for your project, you are not ready to move forward in the planning process. We suggest creating your own scope of work document, and updating it as necessary throughout the process. Keep in mind that the method used can mean the difference between long term success and failure. As an example, the right paint specification can more than double the life of a paint job.

For many reasons, you should not sign a one or two page “Proposal” from a contractor for a significant property improvement or repair. The Scope of Work will not likely be adequate to clearly define the work specifically enough to protect you if the workmanship is poor. In addition, the contract language will not benefit or protect the owner as well as a contract generated on your behalf. See the next two articles in this series for a more complete discussion of the importance of good construction contracts.

II. Budget

The estimating and budgeting process will be discussed in more detail in the next article in this series. A good estimate for construction is based on lots of assumptions, most importantly, the scope of work. If the scope is a moving target, so will the construction costs. Direct costs of construction are usually categorized by Labor, Materials, Equipment and Subcontractors. Most good contractors estimate what they think construction costs will be, and then add for overhead, profit, other project costs and contingency, to come up with a contract price.

Total construction cost is made up of so many little pieces, that it easily becomes incomprehensible without a system for management. We have worked on many projects in dispute where the records were maintained so poorly that it was impossible to determine the exact costs of construction. Don’t let yourself be the victim of a contractor’s lack of sophistication.

The importance of managing the budget cannot be understated. Before, during and after construction, you should always know where you stand relative to the budget. During the course of construction you should know exactly what you have paid and the approximate remaining amount you will pay to complete the project.

III. Schedule

A schedule can take many forms, but the simplest is a list of activities and when they will be performed. For property maintenance or improvement schedules we like bar charts. A competent contractor should be willing to put a schedule in writing. The owner should add some contingency time of her own, but the schedule can give everyone an idea of what will go on and when. The schedule should serve as a measuring stick to compare plan to actual progress, and everyone can identify problems early.

Scheduling is about communication. A successful project requires communication of expectations with everyone involved, including: owner, designers, contractor(s), government agencies, subcontractors, suppliers, and more. Each activity in construction is usually pretty simple; the greatest difficulty is often in coordination of so many parties. There are often more things to do and coordinate than people can keep organized in their head. Unfortunately, many property maintenance or improvement projects never have a schedule put to paper.

IV. Contract

A contract is a binding agreement. It should be used as a communication tool to make sure all parties understand and agree exactly what is being bought and sold. Like any other powerful tool, it can be dangerous, so be careful. Don’t let the excitement of a big project, a smooth talking contractor, or a busy schedule allow you to gloss over the details.

A prime construction contract is when the contractor has an agreement with the owner. A subcontract is when the prime contractor has someone else do all or a portion of the work covered in the prime contract. Thus, if you contract directly with a “subcontractor” like a painter, this is not a subcontract; it is a prime contract. Prime and subcontractors have different rights and responsibilities. Unfortunately, some prime and sub-contractors do not operate professionally.

All contracts for construction should be in writing. We will be dedicating an entire article to the topic in this series, so we will just hit the high-points here.

At a minimum, a construction contract should contain:

• Full contact information for all parties to the agreement, including contractor license information, physical location of all parties, and a description of the property in question.
• Detailed “Scope of Work” with material, equipment and workmanship specifications. This might include plans, and written specifications describing the work in detail, a list of fixtures, etc.
• Contract Price
• Payment Schedule
• Construction Schedule and any consequences for failure.

Change Orders are a natural part of construction and a contingency for them should be built into the budget. Change orders become a part of the construction contract, should always be in writing, and should be negotiated and signed at the time the change occurs, not at the end of the project.

A payment schedule should be negotiated at the time the contract is signed. Try to never pay more than the value of the work in place. That is, if the project is 50% complete and you have paid 75% of the contract price, then you are in a dangerous position.

Contractors’ lien rights are a complicated collection of legal protections to make sure contractors get paid for improving property. Collection of lien releases verifies that contractors have been paid and protects the property from liens.

V. Coordinate

The “coordinate” phase of construction management takes our planning and puts it to work. We spend a lot of time and energy in the define, budget, schedule, and contract phases, even though we get none of the satisfaction of seeing physical work take place. Remember: When the time to perform has arrived, the time to prepare has passed. If you effectively defined, budgeted, scheduled, and contracted the project, then this phase will go as smoothly as construction ever goes (so there will still be some problems to solve). Coordination of contractors, subcontractors, materials, equipment, inspections, changes, unforeseen conditions, personalities and forces of nature is always a challenge.

In addition to the real “work” of a construction project, the coordinate phase is where the miscommunication, screaming matches, fistfights, litigation and endless frustration often occur; we could also call this phase “Herding Cats”. Stewarding a project from beginning to end requires a combination of construction knowledge, management, sophistication, and patience. While construction is usually a simple assemblage of labor, material, equipment & subcontractors, there are so many moving parts that things regularly can and do go wrong.

Management of construction requires effective communication. Let’s make this as clear as possible: COMMUNICATE, COMMUNICATE, COMMUNICATE (in writing!).

You need to have a filing system for your project and religiously document and file this mountain of information. There are things that should be performed regularly to keep the project progressing. Forms that might be used and/or updated include:

• Scope of Work
• Finish Schedule(s)
• Budget
• Project Schedule
• Change Orders
• Purchase Orders
• Contacts List
• Daily Reports / Log (who did what, how long it took, noteworthy conversations, etc…)
• Safety / Accident Reports
• Inspection Check-Lists
• Municipal inspection (card) information

We don’t have time here to explain all of this in detail, but if you search on the Internet for “construction” followed by the term you do not understand, it will not take long to find an explanation and example form.

VI. Verify

Verifying that the construction is proceeding as planned is critical. This is where we compare our progress to plan. Big problems start small. When we find variations from our plan, we use our documentation system to memorialize. Remember that property improvement contractors have become the #1 consumer complaint in the U.S.; if you do not want to be a sad statistic, then problems need to be nipped-in-the-bud.

The local building department might want to see the project at specified points for life-safety issues. If your contractor tells you that no permit is required, get them to put this fact in writing or call the building department. But the building department is not where inspection ends; we have listened to scores of people bemoaning their fate saying, “where were the city inspectors?” when they had buildings that leaked or were otherwise constructed poorly. The property manager (or inspector for the manager) will want to “verify” at various hold-points to ensure the quantity and quality of workmanship. There may be special assemblies like roofs, decks, windows or weather-resistive assemblies that should be tested to make sure they were constructed appropriately.

The contractor will be asking for payment draws based on the Payment Schedule and you will need to verify the work is complete and built to the standards established in the “define” phase of planning. In addition, the owner will want to collect lien releases for work that is completed and paid.

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Conclusion

To really prepare for a big project, be sure to read the next 4 articles in the series. They will go into more detail about maintaining control during this complicated process of maintaining or improving your property. Remember: 1. Use a system to document your objectives and the process of construction, in writing. 2. Communicate with all of the players in the process. 3. Get everything in writing – people get more committed and are more accountable when they have put all their promises in writing.

Good Luck!

How to Estimate the Cost of Structural Repairs to Light Frame Construction Required Due to Catastrophic Events

How to Estimate the Cost of Structural Repairs to Light Frame Construction Required Due to Catastrophic Events by Peter D. Fowler is a peer reviewed paper submitted to ASPE for the purposes of becoming Certified Professional Estimator.

Common Construction Defects

Common Construction Defects - by Pete Fowler. Published by The Journal of Light Construction in 1998