Book description
The definitive contracting reference for the construction industry, updated and expanded
Construction Contracting, the industry's leading professional reference for five decades, has been updated to reflect current practices, business methods, management techniques, codes, and regulations. A cornerstone of the construction library, this text presents the hard-to-find information essential to successfully managing a construction company, applicable to building, heavy civil, high-tech, and industrial construction endeavors alike. A wealth of coverage on the basics of owning a construction business provides readers with a useful "checkup" on the state of their company, and in-depth exploration of the logistics, scheduling, administration, and legal aspects relevant to construction provide valuable guidance on important facets of the business operations. This updated edition contains new coverage of modern delivery methods, technology, project management, plus sample contracts and documentation.
The field of construction contracting comprises the entire set of skills, knowledge, and conceptual tools needed to successfully own or manage a construction company, as well as to undertake any actual project. This book gives readers complete, up-to-date information in all of these areas, with expert guidance toward best practices.
Learn techniques for accurate cost estimating and effective bidding
Understand construction contracts, surety bonds, and insurance
Explore project time and cost management, with safety considerations
Examine relevant labor law and labor relations techniques
Between codes, standards, laws, and regulations, the construction industry presents many different areas with which the manager needs to be up to date, on top of actually doing the day-to-day running of the business. This book provides it all under one cover - for the project side and the business side, Construction Contracting is a complete working resource in the field or office.
Table of contents
- Title Page
- Copyright
-
Chapter 1: The Construction Industry
- 1.1 Introduction
- 1.2 The Construction Project
- 1.3 Economic Importance
- 1.4 The People Involved on a Construction Project
- 1.5 Construction Categories
- 1.6 Project Financing
- 1.7 The Contract System
- 1.8 Project Delivery Methods
- 1.9 Types of Construction Contracts
- 1.10 Forms of Construction Contract Award
- 1.11 Forms of Negotiated Contracts
- 1.12 Basic Elements of Agreement in the Various Types of Cost-Plus Contracts
- 1.13 Competitive Sealed Proposals
- 1.14 Other Forms of Contracts
- 1.15 Small and Disadvantaged Business Enterprises
- 1.16 Seasonality in Construction
- 1.17 Licensing
- 1.18 License Bonds
- 1.19 Building Codes
- 1.20 Contractor Organizations
- 1.21 Management Practices in Construction
- 1.22 Business Failures in Construction
- 1.23 Summary and Conclusions
- Chapter 1 Review Questions
-
Chapter 2: Business Ownership
- 2.1 Introduction
- 2.2 Alternative Forms
- 2.3 Construction Contracting Firms
- 2.4 The Individual Proprietorship
- 2.5 The General Partnership
- 2.6 Establishing a Partnership
- 2.7 Liability of a General Partner
- 2.8 Dissolution of a Partnership
- 2.9 Subpartnership
- 2.10 The Limited Partnership
- 2.11 The Corporation
- 2.12 The Foreign Corporation
- 2.13 Stockholders
- 2.14 Corporate Directors and Officers
- 2.15 The S Corporation
- 2.16 Employee Stock Ownership Plan (ESOP)
- 2.17 Limited Liability Company (LLC)
- 2.18 The Joint Venture
- 2.19 Summary and Conclusions
- Chapter 2 Review Questions
- Chapter 3: Company Organization
-
Chapter 4: Project Design and Contract and Bid Documents for a Project
- 4.1 Introduction
- 4.2 The Architect-Engineer
- 4.3 Designers' Professional Associations
- 4.4 Selection of the Architect-Engineer
- 4.5 Services Provided by the Architect-Engineer
- 4.6 Fee for Design Services
- 4.7 Responsibility to the Owner
- 4.8 Liability to Third Persons
- 4.9 Statutes of Limitations
- 4.10 Contractor Input into Design
- 4.11 Project Description—Communicating the Design
- 4.12 Announcing the Project to Contractors
- 4.13 Project Manual
- 4.14 Bid Documents
- 4.15 Instructions to Bidders
- 4.16 Contract Documents
- 4.17 Summary and Conclusions
- Chapter 4 Review Questions
-
Chapter 5: Cost Estimating and Bidding
- 5.1 Introduction
- 5.2 General
- 5.3 Types of Estimates
- 5.4 Preliminary Considerations Prior to Commencing the Estimate
- 5.5 Set-Asides
- 5.6 Qualification
- 5.7 The Decision to Bid
- 5.8 The Bidding Period
- 5.9 Prebid Meetings
- 5.10 Work to Be Self-Performed and Work to Be Subcontracted
- 5.11 Site Visit
- 5.12 Project Time Schedule
- 5.13 Preparing the Estimate
- 5.14 Estimating Labor Cost
- 5.15 Estimating Equipment Cost
- 5.16 Indirect Costs
- 5.17 Subcontractor Proposals
- 5.18 Markup
- 5.19 The Lump-Sum Recap Sheet
- 5.20 The Unit-Price Recap Sheet
- 5.21 Bid Changes
- 5.22 Finalizing the Estimate
- 5.23 The Proposal
- 5.24 Bidding Procedures
- 5.25 Submission of Proposals
- 5.26 Responsive Bid and Technicalities
- 5.27 Bid Spread
- 5.28 Out of the Money
- 5.29 The Acceptance Period
- 5.30 Rejection of Proposals
- 5.31 Withdrawal of Bid by Prime Contractor
- 5.32 Withdrawal of Bid by Subcontractor
- 5.33 List of Subcontractors
- 5.34 Contingencies Allowances and Subcontract Allowances
- 5.35 Disclaimers and Waivers
- 5.36 Bid Ethics
- 5.37 Bid Depositories
- 5.38 Bid Rigging
- 5.39 Unbalanced Bids
- 5.40 Complimentary Bids
- 5.41 State Preference Statutes
- 5.42 Scheduling Bid Dates
- 5.43 Scope Bidding
- 5.44 Range Estimating
- 5.45 Introducing Probabilistic Determinations into the Estimate
- 5.46 Computer-Based Estimating
- 5.47 Summary and Conclusions
- Chapter 5 Review Questions
-
Chapter 6: Construction Contract Provisions
- 6.1 Introduction—Construction Contracts
- 6.2 Contract Clauses
- 6.3 Rights and Responsibilities of the Owner
- 6.4 Duties and Authorities of the Architect-Engineer
- 6.5 Indemnification
- 6.6 Rights and Responsibilities of the Contractor
- 6.7 Subcontracts
- 6.8 Subcontract Provisions
- 6.9 Contract Time
- 6.10 Liquidated Damages
- 6.11 Extensions of Time
- 6.12 Acceleration
- 6.13 Differing Site Conditions
- 6.14 Owner-Caused Delay
- 6.15 The Agreement
- 6.16 Letter of Intent
- 6.17 The Notice to Proceed
- 6.18 Acceptance and Final Payment
- 6.19 Termination of the Contract
- 6.20 The Warranty Period
- 6.21 Summary and Conclusions
- Chapter 6 Review Questions
-
Chapter 7: Contract Surety Bonds
- 7.1 Introduction
- 7.2 Basic Elements of Understanding
- 7.3 Forms of Contract Bonds
- 7.4 Bid Bonds
- 7.5 Performance Bonds
- 7.6 Payment Bonds
- 7.7 Statutory and Common-Law Bonds
- 7.8 The Miller Act
- 7.9 Claims for Payment
- 7.10 Contract Changes
- 7.11 Bond Premiums
- 7.12 The Surety
- 7.13 Indemnity of Surety
- 7.14 Investigation by Surety
- 7.15 Rationale for Requiring Construction Bonds
- 7.16 Bonding Capacity of Contractors
- 7.17 The Surety Agent
- 7.18 Default by the Contractor
- 7.19 Contract Bonds and Type of Contract
- 7.20 Subcontract Bonds
- 7.21 Contract Bond Alternatives
- 7.22 Additional Surety Bonds
- 7.23 Summary and Conclusions
- Chapter 7 Review Questions
-
Chapter 8: Construction Insurance
- 8.1 Introduction
- 8.2 Risk Management
- 8.3 Construction Risks
- 8.4 The Insurance Policy
- 8.5 Contract Requirements
- 8.6 Legal Requirements
- 8.7 Analysis of Insurable Risks
- 8.8 Construction Insurance Checklist
- 8.9 Project Property Insurance
- 8.10 Builder's Risk Insurance
- 8.11 All-Risk Builder's Risk Insurance
- 8.12 Named-Peril Builder's Risk Insurance
- 8.13 Builder's Risk Policy Premiums
- 8.14 Provision of Builder's Risk Insurance by the Owner
- 8.15 Subrogation
- 8.16 Termination of Builder's Risk Insurance
- 8.17 Contractor's Equipment Floater Policy
- 8.18 Property Insurance
- 8.19 Crime Insurance
- 8.20 Liability Insurance
- 8.21 Commercial General Liability Insurance
- 8.22 Bodily Injury and Property Damage Liability Insurance
- 8.23 Contractor's Protective Public and Property Damage Liability Insurance
- 8.24 Completed-Operations Liability Insurance
- 8.25 Contractual Liability Insurance
- 8.26 Third-Party Beneficiary Clauses
- 8.27 Personal Injury
- 8.28 Exclusions from Commercial General Liability Policy
- 8.29 Property Damage Liability Exclusions
- 8.30 Automobile Insurance
- 8.31 Professional Liability Insurance
- 8.32 Umbrella Excess Liability Insurance
- 8.33 Wrap-up Insurance
- 8.34 Owner's Liability Insurance
- 8.35 Subcontractors' Insurance
- 8.36 Group Insurance Plans
- 8.37 Employee Benefit Insurance
- 8.38 Certificates of Insurance
- 8.39 The Principles of Workers' Compensation
- 8.40 Workers' Compensation Laws
- 8.41 Administration of Workers' Compensation Laws
- 8.42 Workers' Compensation Benefits
- 8.43 Additional Provisions of Workers' Compensation Laws
- 8.44 Workers' Compensation Insurance
- 8.45 Workers' Compensation Insurance Rates
- 8.46 Workers' Compensation Deductible Plan
- 8.47 Workers' Compensation Self-Insurance
- 8.48 Employer's Liability Insurance
- 8.49 Nonoccupational Disability Insurance
- 8.50 Unemployment Insurance
- 8.51 Insurance Claims
- 8.52 Social Security
- 8.53 Summary and Conclusions
- Chapter 8 Review Questions
-
Chapter 9: Business Methods
- 9.1 Introduction
- 9.2 Financial Records
- 9.3 Accounting Methods
- 9.4 Accounting for Long-Term Contracts
- 9.5 Percentage-of-Completion Method
- 9.6 Percentage-of-Completion Capitalized Cost Method
- 9.7 Completed-Contract Method
- 9.8 Financial Statements
- 9.9 The Income Statement
- 9.10 The Balance Sheet
- 9.11 Financial Ratios
- 9.12 Significance of Ratios
- 9.13 Construction Equipment Acquisition
- 9.14 Equipment Management
- 9.15 Equipment Depreciation
- 9.16 Straight-Line Depreciation
- 9.17 Accelerated Depreciation
- 9.18 Modified Accelerated Cost Recovery System (MACRS)
- 9.19 Procurement
- 9.20 Discounts by Vendors and Suppliers
- 9.21 Title of Purchases
- 9.22 A Contractor's Right to Check on Project Financing
- 9.23 Payment to the General Contractor
- 9.24 Payment Requests for Lump-Sum Contracts
- 9.25 Payment Requests for Unit-Price Contracts
- 9.26 Payment Requests for Cost-Plus Contracts
- 9.27 Final Payment
- 9.28 Payments to Subcontractors
- 9.29 Direct Payment
- 9.30 Backcharges
- 9.31 Payments to Material Suppliers
- 9.32 Cash Flow
- 9.33 Cash Forecasts
- 9.34 The Mechanic's Lien
- 9.35 Release of Lien
- 9.36 Assignment of Contracts
- 9.37 Marketing
- 9.38 Employee Motivation
- 9.39 Substance Abuse Programs
- 9.40 Job Site Crime
- 9.41 Employee Training Programs
- 9.42 Summary and Conclusions
- Chapter 9 Review Questions
-
Chapter 10: Project Management and Administration
- 10.1 Introduction
- 10.2 Project Organization
- 10.3 The Project Manager
- 10.4 The Project Superintendent
- 10.5 Field Engineer
- 10.6 Owner Project Representative
- 10.7 Job Site Computers
- 10.8 Aspects of Project Management
- 10.9 Field Productivity
- 10.10 Project Administration
- 10.11 Project Meetings
- 10.12 Schedule of Owner Payments
- 10.13 Shop Drawings
- 10.14 Approval of the Shop Drawings
- 10.15 Quality Control
- 10.16 Total Quality Management
- 10.17 Materials Management
- 10.18 Expediting
- 10.19 Deliveries
- 10.20 Receiving
- 10.21 Inspection of Materials
- 10.22 Subcontractor Scheduling
- 10.23 Record Drawings
- 10.24 Disbursement Controls
- 10.25 Job Records
- 10.26 The Daily Job Log
- 10.27 Claims and Disputes
- 10.28 Claims in the Construction Industry
- 10.29 Alternative Dispute Resolution (ADR)
- 10.30 National Construction Dispute Resolution Committee (NCDRC)
- 10.31 Arbitration
- 10.32 Arbitration Procedure
- 10.33 Mediation
- 10.34 Mini-Trials
- 10.35 Dispute Review Boards
- 10.36 Neutral Evaluation
- 10.37 Settlement Conferences
- 10.38 Partnering
- 10.39 Lean Construction
- 10.40 Summary and Conclusions
- Chapter 10 Review Questions
-
Chapter 11: Project Time Management
- 11.1 Introduction
- 11.2 The Critical Path Method
- 11.3 General Considerations
- 11.4 Project Planning
- 11.5 Precedence Notation
- 11.6 The Precedence Diagram
- 11.7 Example Problem 1
- 11.8 The Network Format
- 11.9 Project Scheduling
- 11.10 Activity Durations
- 11.11 Time Contingency
- 11.12 Example Problem 2
- 11.13 Network Computations
- 11.14 Early Activity Times
- 11.15 Project Duration
- 11.16 Late Activity Times
- 11.17 Total Float
- 11.18 The Critical Path
- 11.19 Free Float
- 11.20 Least-Cost Project Shortening
- 11.21 Time-Scaled Networks
- 11.22 Significance of Floats
- 11.23 The Early-Start Schedule
- 11.24 Bar Charts
- 11.25 Resource Scheduling
- 11.26 Progress Monitoring
- 11.27 Progress Analysis
- 11.28 Schedule Updating
- 11.29 Fast-Tracking
- 11.30 Computers and Time Management
- 11.31 Delay Claims
- 11.32 Summary and Conclusions
- Chapter 11 Review Questions
-
Chapter 12: Project Cost Management
- 12.1 Introduction
- 12.2 Project Cost Control
- 12.3 Data for Estimating
- 12.4 Accounting Codes
- 12.5 Job Cost Accounts
- 12.6 Monthly Cost Reports
- 12.7 Project Overhead
- 12.8 Labor and Equipment Costs
- 12.9 Cost Accounting
- 12.10 Labor and Equipment Budget
- 12.11 Cost Accounting Reports
- 12.12 Labor Time Cards
- 12.13 Time Card Preparation
- 12.14 Measurement of Work Quantities
- 12.15 Forms of Labor Reports
- 12.16 Weekly Labor Cost Reports
- 12.17 Equipment Cost
- 12.18 Equipment Time Cards
- 12.19 Equipment Cost Reports
- 12.20 Other Equipment Charges to Projects
- 12.21 Cost Information and Field Supervisors
- 12.22 Cost Control
- 12.23 Information for Estimating
- 12.24 Computer Application
- 12.25 Summary and Conclusions
- Chapter 12 Review Questions
-
Chapter 13: Labor Law
- 13.1 Introduction
- 13.2 History of Law of Labor Relations
- 13.3 The Norris-LaGuardia Act
- 13.4 The National Labor Relations Act
- 13.5 The Labor Management Relations Act
- 13.6 The Labor-Management Reporting and Disclosure Act
- 13.7 Coverage of the National Labor Relations Act
- 13.8 The National Labor Relations Board
- 13.9 Representation Elections
- 13.10 Employer Unfair Labor Practices
- 13.11 Union Unfair Labor Practices
- 13.12 Charges of Unfair Labor Practices
- 13.13 Remedies
- 13.14 Union-Shop Agreements
- 13.15 Prehire Agreements
- 13.16 Union Hiring Halls
- 13.17 Secondary Boycotts
- 13.18 Common Situs Picketing
- 13.19 Subcontractor Agreements
- 13.20 Prefabrication Clauses
- 13.21 Jurisdictional Disputes
- 13.22 NLRB Jurisdictional Settlement
- 13.23 Voluntary Jurisdictional Settlement Plans
- 13.24 Payments to Employee Representatives
- 13.25 Political Contributions
- 13.26 The Civil Rights Act of 1964
- 13.27 Executive Order 11246
- 13.28 The Age Discrimination in Employment Act
- 13.29 The Davis-Bacon Act
- 13.30 Davis-Bacon Administration
- 13.31 The Copeland Act
- 13.32 The Fair Labor Standards Act
- 13.33 The Contract Work Hours and Safety Standards Act
- 13.34 The Hobbs Act
- 13.35 Immigration Reform and Control Act
- 13.36 The National Apprenticeship Act
- 13.37 The Drug-Free Workplace Act
- 13.38 Family and Medical Leave Act
- 13.39 Americans with Disabilities Act (ADA)
- 13.40 ERISA
- 13.41 Summary and Conclusions
- Chapter 13 Review Questions
-
Chapter 14: Labor Relations
- 14.1 The Construction Worker
- 14.2 Employment in the Construction Industry
- 14.3 Employee Benefits
- 14.4 The Union Contractor
- 14.5 The Role of the Unions
- 14.6 Union History
- 14.7 Construction Unions
- 14.8 The Local Union
- 14.9 Local Union Autonomy
- 14.10 Union Work Rules
- 14.11 The Business Agent
- 14.12 Collective Bargaining
- 14.13 Patterns of Bargaining
- 14.14 Withdrawal from Bargaining Unit
- 14.15 The Bargaining Process
- 14.16 Labor Agreements
- 14.17 Geographical Coverage of Agreements
- 14.18 Project Agreements
- 14.19 National Agreements
- 14.20 The Federal Mediation and Conciliation Service
- 14.21 Employer Lockouts
- 14.22 Wages and Hours
- 14.23 Administration of the Labor Contract
- 14.24 Damage Suits
- 14.25 Prejob Conferences
- 14.26 The Merit-Shop Contractor
- 14.27 Sources of Open-Shop Labor
- 14.28 Apprenticeship Programs
- 14.29 Nonapprenticeship Training Programs
- 14.30 Supervisory Training
- 14.31 Present Construction Industry Status
- 14.32 Dual-Shop Operation
- 14.33 Union Reaction to Open Shop
- 14.34 Summary and Conclusions
- Chapter 14 Review Questions
-
Chapter 15: Project Safety
- 15.1 Introduction
- 15.2 The Cost of Construction Accidents
- 15.3 Safety Legislation
- 15.4 State Safety Codes
- 15.5 Federal Health and Safety Acts
- 15.6 The Occupational Safety and Health Act (OSHA)
- 15.7 Site Inspections by OSHA
- 15.8 Penalties under OSHA
- 15.9 OSHA Hazard Communication Standard
- 15.10 Multiemployer Work Sites
- 15.11 Contract Safety Requirements
- 15.12 Work Injury and Illness Recording
- 15.13 Work Injury and Illness Rates
- 15.14 OSHA and Industry Trade Associations, Construction Companies, and Individual Workers Are Making a Difference
- 15.15 Economic Benefits of Safety
- 15.16 Safety Services of Contractor Associations
- 15.17 The Role of Management in Safety
- 15.18 The Company Safety Program
- 15.19 The Project Safety Plan
- 15.20 Owners' Requirements Regarding Safety Policies and Plans
- 15.21 The Field Supervisor
- 15.22 Accident Records
- 15.23 Protection of the Public
- 15.24 The Cost of a Safety Program
- 15.25 Summary and Conclusions
- Chapter 15 Review Questions
- Appendix A: Instructions to Bidders
- Appendix B: AIA Document B101-2007 Standard Form of Agreement between Owner and Architect
- Appendix C: Construction Specification Institute MasterFormat 2014
- Appendix D: AIA Document A201-2007 General Conditions of the Contract for Construction
- Appendix E: Supplementary Conditions
- Appendix F: Sample Lump-Sum Proposal Form, with Reference to Addenda, and Alternates
- Appendix G: AIA Document A101-2007 Standard Form of Agreement between Owner and Contractor Where the Basis of Payment is a Stipulated Sum
- Appendix H: AIA Document A102-2007, Standard Form of Agreement between Owner and Contractor Where the Basis of Payment is the Cost of the Work Plus a Fee with a Guaranteed Maximum Price
- Appendix I: AIA Document A310-2010 Bid Bond
- Appendix J: AIA Document A312-2010 Performance Bond
- Appendix K: AIA Document A312-2010 Payment Bond
- Appendix L: AGC Document 655 Standard Form of Agreement between Contractor and Subcontractor
- Appendix M: AIA A401-2007 Standard Form of Agreement between Contractor and Subcontractor
- Appendix N: Construction Industry Arbitration Rules and Mediation Procedures of the American Arbitration Association
- Appendix O: Typical Construction Company General Ledger Accounts
- Index
- End User License Agreement
Product information
- Title: Construction Contracting: A Practical Guide to Company Management, 8th Edition
- Author(s):
- Release date: April 2015
- Publisher(s): Wiley
- ISBN: 9781118693216
You might also like
book
Construction Extension to the PMBOK® Guide
A Guide to the Project Management Body of Knowledge (PMBOK® Guide) provides generalized project management guidance …
book
Official Google Cloud Certified Associate Cloud Engineer Study Guide
The Only Official Google Cloud Study Guide The Official Google Cloud Certified Associate Cloud Engineer Study …
video
Python Fundamentals
51+ hours of video instruction. Overview The professional programmer’s Deitel® video guide to Python development with …
book
Information Technology for Management, 11th Edition
Information technology is ever-changing, and that means that those who are working, or planning to work, …