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Western Dam Engineering <br /> <br /> <br /> <br />11 <br />Include a Clear, Detailed Summary of Work <br />A Summary of Work should be placed in an obvious <br />location near the front of the specifications package to <br />describe to the project team what the project is about <br />and the steps necessary to complete it. The Summary <br />of Work is the engineer’s opportunity to describe and <br />explain, in straightforward, non-technical terms, the <br />various work elements and how they are to be <br />constructed. Each of the work items described within <br />the summary should include a reference to pertinent <br />items of the technical specifications and the bid <br />schedule where that work item is covered. Each <br />technical specification section then provides a detailed <br />technical description of the work items covered under <br />that specification. <br />Pricing Considerations and Use in Bid <br />Schedules <br />The specification package must include a discussion of <br />the methodology to be utilized in measurement and <br />payment for the required items of work, and this will <br />carry over to the bid schedule. This may be a separate <br />section of the specs that is usually included in Division <br />1: General Requirements or a subsection of each <br />technical specification section that describes the <br />methodology for that particular item of work. Either <br />way, it should include a clear, detailed description of <br />how the work is to be measured and what is included <br />in payment for each bid item. <br />Two methods are commonly used to specify how the <br />contractor is to develop his bid price: (1) lump sum <br />pricing, and (2) unit pricing. Lump sum pricing is <br />appropriate for work items where the contractor is <br />largely in control of the specifics of the work item, such <br />as contractor-developed river diversion plans, <br />cofferdams, site dewatering and unwatering, <br />development of contractor work areas, mobilization <br />costs (usually some maximum allowance), site fencing <br />and security, etc. Unit pricing is appropriate where <br />specific quantities are required and can be estimated <br />but may vary, such as earthwork material quantities, <br />concrete quantities, reinforcing steel, manufactured <br />materials, etc. <br />A useful rule of thumb is that unit pricing methodology <br />should always be used for anything that can be <br />measured. This provides a basis for determining cost <br />should quantities not be as expected, and helps shift <br />the risk for cost overruns into a more shared territory. <br />As a general rule, contractors do not bid lump sum <br />items low, because they need to protect themselves <br />from the possibility that the work will be much more <br />involved, and thus more costly, than anticipated. Unit <br />pricing helps define the actual expected cost of a <br />specific bid item, allowing for fair compensation when <br />adjustments are needed. <br />Specifications or other contract documents should also <br />be clear that quantity overruns resulting from <br />contractor means and methods rather than <br />unanticipated site conditions will not be compensated. <br />For example, overexcavation of foundation materials <br />which is done for the convenience of the contractor <br />and not as a matter of necessity to establish an <br />acceptable work surface as required by the <br />specifications will not be compensated either in the <br />amount of overexcavation yardage or in the quantity <br />of compacted fill materials or concrete materials <br />needed to replace the materials removed by the <br />overexcavation. The point is to place the burden for <br />intelligent contractor means and methods where it <br />belongs, directly on the contractor. <br />Project Completion Schedules and the Use of <br />Liquidated Damages and Incentives <br />Contract documents should provide for a firm but <br />reasonable period of time for the contractor to <br />complete the work, which allows for likely weather <br />delays, seasonal shutdowns, anticipated delays in the <br />acquisition of manufactured materials, etc. This <br />schedule is often heavily influenced, as it should be, by <br />the desires and/or needs of the project owner. <br />However, those in a position to dictate the schedule <br />need to remain cognizant of the corollary that among <br />the three desirable attributes of any construction <br />project (high quality, low cost, rapid completion), only <br />two are attainable. Therefore, the schedule must be <br />reasonable to provide any realistic certainty that high <br />quality and low cost can be achieved. If schedule really <br />is a critical issue for the projects, the use of liquidated <br />damages is sometimes offset with the use of <br />performance incentives to compensate the contractor <br />for accomplished work ahead of schedule. <br />To ensure that the contractor puts forth a diligent <br />effort to complete the job within the specified time <br />frame, liquidated damage provisions are often <br />included within the specifications. These provide for <br />financial penalties to the contractor if the project is not <br />completed within the required time frame and/or if