Updated August 29, 2017

THE CITY COLLEGE OF NEW YORK

CE H4100, SECTION 4TU: HIGHWAY AND AIRPORT CONSTRUCTION

CLASS NOTES

FOR

LECTURE #1: INTRODUCTION TO HIGHWAY AND AIRPORT CONSTRUCTION

(ORGANIZATION, MANAGEMENT AND ADMINISTRATION OF PROJECTS)
(References: Construction Administration by E. R. Fisk, Chapter 1, pp 1-33; Construction Methods and
Management by S. W. Nunnally, Introduction, and Chapter 1 pp 4-10; Construction Project
Management by Frederick E. Gould and Nancy E. Joyce, Chapter 1, pp 8-13).

CONSTRUCTION ADMINISTRATION

The terms Construction Administration and Contract administration have been used interchangeable.
Let us examine their definitions.

Contract Administration includes the management or handling of the business relations between the
parties to a contract, generally considered to be limited to the administrative paperwork. On some
projects, the architect/engineer's or owner's project manager would perform the function of Contract
Administrator from the home office, jealously guarding the control of the job and reserving all
meaningful project administration duties to him- or her-self, to ensure control of the job, meanwhile,
limiting the authority of the Resident Project Representative at the project site to inspection and
routine clerical duties. This jealous power trip is dangerous and can lead to delays and numerous
claims for losses to the owner or the architect/engineer.

Construction Administration relates to the much broader responsibility of relating to all project-
related functions between the parties to a contract - not only the traditional contract administration
duties, but the conduct of the parties, relations with the contractor; communications, business systems,
procedures, responsibility, authority, and duties of all of the parties. Included are; documentation
requirements, construction operations, planning and scheduling, coordination, materials control,
payment administration, change orders and extra work, dispute and claim handling, negotiations, and
all project closeout functions, including punch list inspections, final cleanup, and administrative
closeout... The student should note here that contract administration is just a part of construction
project administration.

The student should note that the mark of a good manager is in his/her ability to delegate authority to
staff and manage that staff to ensure that they effectively carry out his/her desires and wishes. The good
manager does not micro-manage, hence his/her delegation of the management of construction to a site
representative can only strengthen his/her function and the success of the project. Figure 1.2 below
shows how the project could be managed with the project manager (PM) and the Resident Project
Representative (RPR) carrying out their respective functions for successful delivery of the project. Note
that the PM may be managing several projects and needs to spend time on each. The RPR is confined to
one project only.

Figure 1.2 below depicts the separation of the functions, between the office and field personnel and the
separation between contract administration and construction administration. Note that some contract

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administration work is done at the front office, as well as at the site. However, construction
administration is generally done by the RPR and his/her staff on many projects.

Note that the RPR is not independent of the PM and must consult with him/her on a continual basis as
the project progresses, and definitely so, for issues that would require the PM's approvals or decisions
e.g. where activity initiation cannot commence until agency or jurisdictional approval is granted. These
types of approval can be obtained by email, fax or telephone. Approvals given by telephone must be
confirmed in writing.

The One-to-One Concept

This is a vital administrative procedure that should be enforced to prevent conflicts on site, reduce
exposure to claims-producing problems and generate greater efficiency for all parties participating in the
contract. Under this principle the owner or his/her agent (thee A/E) nominates ONE person to be the
SOLE spokesperson to represent the owner's interest. This person is generally the RPR and all orders
issued to the contractor should be issued through him/her. NO ONE from either the owner's or A/E's or
CM's office should be permitted to issue any instructions, or make any commitments to the contractor
except through the RPR. Failure in these SOP's have caused owners and contractors much grief
contractually. According to contract law principles of authority, the contractor may receive orders from
whomsoecer if the contractor believes that that person has the authority to issue orders to him/her on
behalf of the owner. Hence PM's owners, city or county engineers or others with authority who visit the
site and make statements to the contractor, could see those statement evolve as redirections and
constructive changes, with the resulting claim from the contractor for extra work.

On the contractor's side he/she must also appoint one single person, located at the site, to be the
contractor's sole representative for communicating with the RPR. This relationship could be established
as one of the provisions of the contract, or if not it should be made clear at the pre-con meeting and such
contractor's agent must be designated in writing. Substitutes to this person must be by corporate decree.
The on-site superintendent or PM could be the contractor's representative.

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Types of Construction Projects

Most designers and general contractors tend to concentrate their efforts in a specific sector of the
construction industry, each sector being separated by specific materials and equipment suppliers,
manufacturers and sub-contractors. Specific to each category are funding methods and sources, building
methods involved and the manner in which the designers, general contractors and owners interact.
Construction projects we will encounter can be slotted into one of the following four industry sector
categories:

Residential
Building construction such as terminals, hangars, cargo buildings. (To be addressed in this Course)
Infrastructure and heavy construction (To be addressed in this Course)
Industrial

In the Residential Sector, we find the construction of individual homes, small condominiums and
apartment complexes. Private investors for their own use or for generating a profit fund several of
these projects. These buildings could be designed by an architect or be obtained from a mass-
produced catalog. In some cases the homeowner or general contractor may design the building.
Catalog models can be purchased prefabricated and the modules erected on site. Low technology is
required here and the capital required to enter into the business is very small; hence there are several
builders, suppliers, lumberyards, tool and equipment rentals, specialty suppliers and hardware stores
operating in this sector. There is a tendency in some quarters, however, to build as much on site as
possible. Business in this sector fluctuates with the economy as it is mostly privately funded. See
Figure 1.5 below of a Residential Sector site taken from Construction Project Management by F. E.
Gould and N. E. Joyce. These are generally done under fixed-price contracts for a stipulated sum.

The Building Construction Sector includes office buildings, large apartment complexes, shopping
malls, theaters, schools, universities, prisons and hospitals. Like the Residential Sector, these
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structures tend to be privately funded with some public funding for schools, prisons and hospitals.
These structures are designed by architects and engineers and constructed by general contractors as
bid projects or by construction managers who assist during preconstruction and coordinate the
construction. The technical sophistication here is much greater than in the Residential Sector design
and construction, as is the funds required to get into the field, hence the few players in this sector of
construction.

Hospitals and prisons are a specialized fields requiring high QC, while shopping malls, office
buildings and theaters are built for quick marketing and retail.

Construction in this sector is dependent on regional economic health. Strong economic growth can
lead to over building and real estate glut, and very little more development as the economy wanes.
Figure 1.6 below from Construction Project Management by F. E. Gould and N. E. Joyce shows a
Commercial Building sector. These are generally done under fixed-price contracts for a stipulated
sum.

Infrastructure and Heavy Construction enables the distribution of goods and people. Examples are
airports, roads, bridges, canals, dams and tunnels. (See figure 1.7 of a hydropower dam from
Construction Project Management by F. E. Gould and N. E. Joyce, below). These projects are
designed by Civil Engineers and built by heavy construction contractors with engineering
backgrounds and specialist support. Very few large firms are in this field. These projects tend to be
publicly funded as they provide a utility to the public. These are generally fixed-price contracts for a
stipulated sum, but unit-price contracts are also common.

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The Industrial Sector sees the construction of steel mills, petroleum refineries, chemical processing
plants and automobile facilities etc. (See Figure 1.8 from Construction Project Management by F. E.
Gould and N. E. Joyce, below). These projects are defined by the production activities within the
facility rather than the facility itself. In the USA, these structures are privately funded. Only a few
designers and builders are qualified to design and build in this sector. Hence, the designers and
builders have been coming together as a single company for projects in this area. These are generally
fixed-price contracts for a stipulated sum, but unit-price contracts are also common. A combination
of contracts can also be used.

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HOW CONSTRUCTION CONTRACTS ARE EXECUTED

Alternative Approaches to the Management of Construction

There are a few approaches to managing construction but the 4 main approaches are:

1. Construction employing an owner construction force

2. Owner management of construction
3. Traditional architect/engineer (A/E) contract
4. Design/construction manager (D/CM) contract
5. Professional construction manager (PCM) contract
6. Design-build contract (similar to turnkey construction)

Many large industrial organizations, as well as a number of governmental agencies, possess their own
construction forces. Although these forces are utilized primarily for performing repair, maintenance,
and alteration work, they are often capable of undertaking new construction projects. Figure 1-5 shows
the organizational structure for the execution of this contract.

More frequently, owners utilize their construction staffs to manage their new construction (Figure 1-6).
The work may be carried out by workers hired directly by the owner (force account), by specialty
contractors, or by a combination of these two methods

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Traditional A/E Contract

Under the provisions of the traditional architect/engineer contract illustrated in Figure 1.1, the owner
usually engages the services of an architect/engineer to perform planning and design services, including
preparation of plans, specifications, and estimates. Professional services of the architect/engineer during
the construction are generally limited to performance of intermittent field visitations and certain contract
administration functions such as review of the contractor's payment requests, review of shop drawings,
evaluation of contractor claims, interpretation of plans and specifications during construction, change
order requests, and final inspection.

Traditional

A Design/Construction Manager Contract, illustrated in Figure 1.4 below, is quite similar to the
traditional A/E contract with the exception that the architect/engineer's project manager is fully
responsible to the owner during both the design and planning phases as well as the entire construction
phase to provide for all project needs. These include all scheduling, cost control, quality control, long-
lead purchasing, letting of single or multiple contracts, and coordination of the work. The design/CM
responsibilities do not terminate until final acceptance of the completed project by the owner.

These responsibilities include the examination of cost-saving alternatives during both the design and
construction phases of the project, and the authority to require the design or construction changes
necessary to accomplish the owner's objectives.

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A Professional Construction Management (PCM) Contract is based upon a concept pioneered

several years ago by the General Services Administration of the federal government, and for a time was
used extensively by that agency for the construction of public buildings. Although the functions
performed by the professional construction manager may be no different than those of a design firm
doing construction management, the responsibilities and contractual status are significantly different.
Under the professional construction manager (PCM) concept, illustrated in Figure 1.5, the owner
engages a construction management firm under a separate contract in addition to a conventional
architect/engineer and construction contractor contract. Thus, instead of only two contracts for a
project, the owner has actually executed three. In keeping with the principles of this concept, the
professional construction management firm performs no design or construction with its own forces,
but acts solely in the capacity of an owner's representative during the life of the project. In many
cases, the PCM is responsible for reviewing the architect/engineer's payment requests in addition to
those of the contractor. In any case, the PCM is responsible for total project time, cost control and
coordination, as well as quality control and as such, provides supervision and control over those
functions of the architect/engineer and the contractor that relate to these important subject areas.

One important distinction is that a "construction manager" under this concept is an organization not a
single individual. Thus the construction management firm may provide a staff of both field and office
personnel, including a project manager, estimators, schedulers, accountants, construction coordinators,
field engineers, quality control personnel, and others. These services are being provided to the JFK
AirTrain project by Bechtel, which has been hired to assist PA Construction Engineering in the
management of the construction.

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A Design-Build contract, illustrated in Figure 1.6, popularly called turnkey construction, is based
upon the owner entering into an agreement with a single firm to produce all planning, design, and
construction with its own in-house capabilities. Some organizations recognize a further distinction
between design-build and turnkey construction in that both provide for both design and construction
by a single organization, or joint venture, but the turnkey contractor also assembles the financing
package. Such design-build firms are generally licensed as both architect/engineers and as general
construction contractors in those states that require it, and offer a complete package deal to the owner.
Its principal advantages, where its use is permitted, are the elimination of contractor claims against the
owner resulting from errors in the plans or specifications and the ability to begin construction on each
separate phase of a project as it is completed, without waiting for overall project design completion, -
the "fast-track" concept. It is in the design-build industry that fast-track construction was born.

There is a disadvantage in this management approach in those states that require for publicly funded
projects, that the construction project be let out to bid and where the lowest bidder must be selected.
Agencies and establishments would prefer to select design firms and construction management
organizations on the basis of previous experience and performance, the more economical approach,
particularly in the planning and design phases. However, in the competitive bidding process, where the
lowest bidding contractor must be selected, it would more than likely result in higher construction costs,
in the rush to incorporate plans and specifications and proceed into construction without checking.

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PROJECT PARTICIPANTS

Irrespective of the type of project to be undertaken, light rail system, runway construction, tunnel
construction, building, manufacturing plant, bridge, pier, water supply system or any other type of
project, the project requires the active participation of the following three participants:
The owner
The designer (the A&E Firm)
The builder

Each of these three has functionaries working for them that comprise the project participants' support
teams. These other support participants may be consultants, QA/QC representatives, a subcontractor, or
a supplier of materials and equipment.

The owner enters into a contract with the designer (A&E Firm) to plan and design the project per his/her
particular needs. The owner establishes the criteria, determines the schedule and sets the budget
limitations for the project. When the designer completes the design process the project is ready for
construction and is then advertised for the submission of bids from prospective contractors who feel that
they are competent to execute the project. After the receipt of the bids the selection process begins and
one or more qualified contractors is selected for entering into contract with to build the project. Note,
that in public contracts, the lowest bidder, not necessarily the best qualified contractor wins the contract.

ORGANIZATIONAL STRUCTURE OF A CONSTRUCTION PROJECT

The staff requirements for the construction management and quality assurance/control activities of a
construction project vary from job to job and from one employer to the next. The structure of the
owners or the engineers construction forces is not constant and vary by job size and type. The average
contractors organization, however, seems to be extremely well organized for the construction function.
This is expected, as the contractors organization is performing its primary function at the site, while the
owner or architect/engineer is more or less on unfamiliar ground during the construction phase, even
though the contract may require that the architect/engineer perform some construction management
functions.

On the construction project one would encounter several titles among the players and even among
players on the same level. Hence, determining position by title alone could be a problem. Figure 1.7 is a
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chart of the normal functional relationships under a design/construction management contract, which
illustrates the problem.

An example of supervisory job titles of comparable authority is shown in the following table, which is
based upon actual job titles used by some contractors and architect/engineer offices to designate the
various levels of supervisory and management personnel utilized during the construction phase of a
project. The levels indicated are those used in Figure 1.7.

All of these levels share in the responsibility of administering various provisions of the construction
contract for their respective employers. In addition to the foregoing list of full-time personnel on the
project site, numerous tasks remain to be performed by specialty inspectors and representatives of the
various local government agencies which have jurisdiction over the project. These include the following

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public and private specialty and code enforcement inspectors, whom, it should be noted are only
interested in their particular area of responsibility.

1. Local DOT, FAA, EPA, Regional Building Codes (in the case of airport
buildings) (Specification and Code enforcement)
2. Soils inspectors
3. Inspectors of other agencies whose facilities are involved
4. Utility company inspectors
5. Specialty inspectors (concrete, masonry, welding, etc
6. Manufacturers' representatives (special equipment or materials)
7. OSHA safety inspectors.

The overall responsibility for the delivery of a quality product rests with the CM who is responsible for
the Resident Project representative (RPR), the design firm or the contractors quality control (CQC)
representative, the latter of which is always questionable in his/her performance.

DEFINITIONS OF INDIVIDUAL CONSTRUCTION RESPONSIBILITY

Specialty Inspectors

On certain critical types of construction, local building codes will require intermittent and sometimes
"continuous" inspection on elements such as structural concrete, structural masonry, prestressed
concrete, structural welding, high-strength bolting, and similar work to be performed by special
inspectors. Special inspector coming onto the job to monitor such tasks will be under the authority of
the Resident Project Representative and should be advised to follow his/her instructions.

The Project Manager

Every participating organization on a project will have a Project Manager. Titles will vary but the
duties remain the same. Whether in the direct employ of the owner, the design firm, or the contractor,
the project manager (PM) is usually the person responsible for the management of all phases of the
project for his or her organization. For a design firm, the project manager controls the scheduling,
budgeting, cost control coordination of design and construction, letting of contracts for the owner, and is
normally the sole contact with the client, as a representative of the design firm.

The owners project manager is responsible for all phases of the project but may participate in the
architect/engineer selection. He is the owners representative with respect to any business concerning
the project. Where an architect/engineer firm has been engaged for design services only, it is then the
owner's project manager to provide construction contract administration. He/she may employ a
Resident Project Representative or other onsite quality control personnel to work under his or her
supervision in the management of the construction phase of the project. Wherever this is the case, the
architect/engineer may still be called upon to review shop drawings for the owner, and wherever a
proposed design change is contemplated, the architect/engineer of record should always be consulted.

In the contractor's organization, the title project manager is also a frequently used, while many very
large firms still use the title superintendent for this function. As the title implies, the contractor's
project manager is in complete charge of his or her project for the general contractor. This particular
project manager or superintendent's responsibilities include coordination of subcontractors, scheduling,
cost control, labor relations, billing, purchasing, expediting, and numerous other functions related to the

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project. To the owner, the project manager or superintendent is the general contractor and his/her duties
are the same in many contractor organizations.

The Professional Construction Manager

The services performed by the professional construction manager cover a broad range of activities
involving both the design and construction phases of a project. To some extent, his/her duties overlap
those traditionally performed by both the architect/engineer and the construction contractor. A
comprehensive construction management contract may easily cover any if not all of the tasks included
within the following six categories:

1. Participation in determining the bidding strategy involved in a fast-track, multiple-prime-contract

project so as to avoid conflicts during the letting of the separate contracts.
2. Design phase review, including review of formal design submittals, review of contract documents,
and overall constructability analysis.
3. Cost management, including estimates of construction cost and development of the project budget.
4. Scheduling for all phases of a project, generally incorporating critical path techniques.
5. Bid opening and evaluation, and assistance in contractor selection.
6. On-site, construction-phase management to provide contract administration, inspection,
coordination, and field management.

On-site, construction-phase management may include coordination of separate contracts, phased

construction (fast-track) contracts, monitoring of individual phases of the work, adjustment of the work
to accommodate changed conditions or unanticipated interferences, determination of whether materials
and workmanship are in conformance with the approved contract drawings and specifications,
arrangements for the performance of necessary field and laboratory tests where required, preparation of
change orders and change proposals, and review of progress payments and recommendations to the
owner for payments to the contractors.

The construction manager (CM) may also, in some contracts, e.g. multiple-prime contracts provide
certain services that would normally have been provided by a general contractor, had there been one.
These might well include establishment, maintenance, and operation of temporary field construction
facilities, provisions for site security, cleanup, temporary utilities, and similar General Conditions items
of work. Such items of work are generally paid for under this type of contract on a reimbursable basis,
and are not a part of the construction manager's professional fee for services. In certain respects, the
professional construction manager's responsibilities may overlap or even preempt those of the contractor
and the architect/engineer under some contracts.

Quality Control Representative

Under the provisions of the construction contracts of numerous federal agencies, particularly the Corps
of Engineers, Naval Facilities Engineering Command, National Aeronautics and Space Administration,
et al, an inspection concept known as contractor quality control (CQC) is often implemented. Under
this system, the contractor must organize and maintain an inspection system within the organization to
assure that the work performed by the contractor conforms to contract requirements, and to make
available to the government adequate records of such inspections. Under the concept, a government
representative is stationed on-site to provide quality assurance inspections. In some cases the design
firm may be engaged to provide quality assurance verification, in addition to contractor quality control.
In such cases, the design firm may have a full-time Resident Project Representative and supporting staff
on-site to perform this function.
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Resident Project Representative; Resident Engineer; Resident Inspector; Resident Manager;

Project Representative
These titles usually refer to an on-site full-time project representative to whom has been delegated the
authority and responsibility of administering the field operations of a construction project. This person
represents the owner or the design firm. On some occasions, the inspection needs of a particular project
may require that the Resident Project Representative be a qualified, registered professional engineer; in
other cases, a highly qualified non-registered engineer may be desired. Wherever a non-registered
engineer is permissible, it is often equally acceptable to use an experienced construction inspector for
this purpose. The American Institute of Architects, in their documents, describes this individual as the
"full-time project representative," whereas the Engineers Joint Contract Documents Committee uses the
term "Resident Project Representative." In this course, we will use the term Resident Project
Representative to stand collectively for resident engineer, resident inspector, full-time project
representative, resident manager, and project representative.

Inspector; Field Engineer; Quality Assurance Manager

These titles usually refer to a staff-level, on-site representative of the owner, design firm, or contractor,
who has the responsibility of observing the work being performed and of reporting any variations from
the plans and specifications or other contract documents. In addition, the inspector should alert the
quality control supervisor or Resident Project Representative in a timely manner of any unforeseen field
conditions, so that remedial measures could be taken, without creating delays in the work or changes in
existing work to correct a problem. The inspector is the on-site eyes and ears of his or her employer,
and although not empowered to make field changes that depart from the plans and specifications, the
inspector should be capable of evaluating field problems and submitting competent recommendations to
his or her supervisor. On projects using a Resident Project Representative, the inspector will normally
work under that person's direct supervision.

The Inspector is responsible for construction field administration, one of the principal functions of the
Resident Project Representative, but his/her job is identical in all respects to that of the Resident Project
Representative. Inspection of construction is an occupation that requires a highly qualified person with
a good working knowledge of construction practices, construction materials, specifications, and
construction contract provisions. This is not just a job title, as the inspector may be a registered
professional engineer or architect, a field engineer, a quality control specialist, or any of a host of other
classifications. In this course the term inspector will be used to stand collectively for field engineer,
inspector, quality control representative, or in some cases, the Resident Project Representative where the
duties referred to apply to all field representatives on site, whether full- or part-time.

Quality Management

If the Contractor strictly satisfies all of the specifications in the contract documents we would have a
quality project. The student is reminded that the drawings show the scope, extent and quantity of work,
whereas the specifications define the designed and desired quality of the work. The following are some
definitions:

Quality: An inherent or distinguishing characteristic of a product or service. A trait or characteristic

used to measure the degree of excellence that a product or service achieves. Conformance to
prescribed requirements - the Program produces what it was supposed to, as defined in the

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performance criteria established by the owner. The product satisfies user needs, aesthetically and
functionally.

Quality Assurance: All those planned and systematic actions necessary to provide adequate
confidence to the management that a product or service will satisfy given requirements for quality.
QA emphasizes "upstream" actions that directly improve the chances that QC actions will result in a
product or service that meets requirements. QA includes ensuring the Program requirements are
developed to meet the needs of all relevant internal and external agencies, planning the processes
needed to assure quality of the Program, ensuring that equipment and staffing is capable of
performing tasks related to Program quality, ensuring that contractors are capable of meeting and do
carry out quality requirements, and documenting the quality efforts. QA includes reviewing the
performance of inspections and testing done by the Owner to verify that the specified product has
been supplied.

Quality Audit: A formal review/investigation to determine whether the quality characteristics of a

product or service meet the defined quality criteria. Determine if the quality system is performing as
documented and whether the quality system is implemented.

Quality Control: The operational techniques and activities that are used to fulfill requirements for
quality. These techniques are used to assure that a product or service meets requirements. Generally,
QC refers to the act of taking measurements, testing, and inspecting a process or product to assure
that it meets specification. It also includes actions by those performing the work to control the
quality of the work. Products may be design drawings or specifications, manufactured equipment, or
constructed items. QC also refers to the process of witnessing or attesting to, and documenting such
actions. QC inspections and testing are the sole responsibility of the Contractor, subcontractors,
suppliers and vendors.

Quality Management: The management processes put into place to ensure that the end product of a
Program/Project (process) meets the Clients' needs.

Quality Management System: A Quality Management System (QMS) is a formalized system that
documents the structure, responsibilities, plans and procedures required to achieve effective quality
management in an organization. From West and Cianfrani, a mature QMS is focused on
performance improvement and is continually assessed for excellence. According to ISO, A QMS
is a set of policies, processes and procedures required for planning and execution
(production/development/service) in the core business area of an organization, (i.e. areas that can
impact the organization's ability to meet customer requirements.) ISO 9001:2008 is an example of a
Quality Management System.

On large projects, the owner would hire a QA Manager to oversee the project from initiation through
closeout and ensure that its execution project is conducted in accordance with contract requirements.
The QA manager is responsible for preparing the QA Manual and establishes, and manages the Quality
Management System. He/she ensures that the contractor, his/her inspectors and his/her QC is using
every measure to ensure that a quality product is being developed through field-testing and verification.
The QA manager conducts inspections, walkthroughs and Audits to ensure that proper quality practices
are in place, a paper trail exists, demonstrating that the process has been recorded to include decisions
taken, meetings, tests and test results, quality review and packaging of submittals, nonconformances,
corrective action and preventive measures put in place to prevent recurrence of detected
nonconformances.

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Homework #1

Read Chapter 1 and notes, and discuss the following:

1. Who establishes the budget and schedule for a project?

2. What is the Resident Project Representative's role in a project.
3. What is the designer's (A&E) role in a project and his/her relationship to the other functionaries in a
project?
4. What is the professional construction manager's role in a project?
5. In your opinion, would you support the design-build approach for your project's development? What
do you feel are the goods and evils (pros and cons) of this design/construction approach?

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