the
joint venture
is a
day-long retreat attended
by the
involved
personnel
from
both
of the firms and
from
the
client
to
resolve
major
issues
and to
establish
a
close
and
cooperative relationship.
Another
possibility
is to
invite
an
experienced con-
struction manager
to
join
the
joint venture.
The
right
person
may
save considerable expense
by
offering
good advice
on
ease
of
construction
and
practicality.
Design-to-Cost
Design-to-cost
is a
proprietary, computerized man-
agement
system used
by one
consulting
firm for
accurate
cost estimating
and
scheduling
at any
stage
of
design completion. Because
the
potential
for
con-
trolling
costs
is
greatest
in the
early stages
of
design,
the
system
is
extremely
useful.
It
enables
(1)
design-
ers to
focus
immediately
on the
most cost-effective
alternatives;
(2)
clients
to see the
consequences
of
incorporating
special
features;
and (3)
designers, con-
struction
contractors,
and
owners
to
share informa-
tion
that keeps costs under control.
The
system
is
made
possible with
a
database
of
20,000
items
in
which
two
subsystems (continuously upgraded costs
and
scheduling)
are
electronically linked.
In
early
planning
and
design phases, estimators produce con-
ceptual
costs that are,
on the
average, accurate within
an
error range
of
+1
1
to
-3%.
As the
design proceeds,
new
data
are
entered
as
soon
as
available,
and the
accuracy
increases until
the final
estimate (based
on
quantities
of
materials, equipment, person-hours,
location,
and
labor
and
market conditions)
has an
average error
of
only
+7 to
-1%.
The key
element
is
cooperation between
all
persons working
on the
project.
The
program
can be
used anywhere
on a
notebook
computer [10,
U].
The
concept
can be
used
and a
program developed
by
any firm
that keeps good records
of
numerous
and
recent construction costs. Obviously,
the
capability
of
providing accurate costs
from
beginning
to end
helps
to
establish
and
maintain good relationships
between
the
owner
and
designers
and
(during con-
struction)
between
the
contractor, owner,
and
design
firm
—
particularly
when change orders
are
pro-
cessed.
1-11. Avoiding Litigation
In
our
litigious society, nothing
can
ensure complete
protection
from
lawsuits,
but the
precepts that
follow
will
reduce their incidence
and
severity.
Clear,
Fair
Contracts
Describe
clearly both
the
rights
and
responsibilities
of
each appropriate party. Avoid ambiguity
and
one-
sided requirements. Recognize potential problems,
and
provide
for
fair
solutions openly.
More
for
Design,
Less
for
Litigation
The
intelligent application
of
money
for
design
can
promote better coordination between client
and
designer
and
between
the
various design
disci-
plines.
Proper
funding
also allows adequate investi-
gation
of
viable alternatives
and
enough time
for
truly
careful
preparation
and
checking
of
plans
and
specifications
with
a
probable decrease
in the
over-
all
capital cost, with reduced chances
for
errors
and
expensive change orders
and
with improved client
satisfaction.
Partnering
Partnering
is a
voluntary
process
that promotes nonad-
versarial relationships among
the
parties involved
in a
construction project. Partnering
benefits
all
project
participants (owner, contractor,
and
engineer)
by
reducing their exposure
to
disputes
and
litigation
and
by
increasing their productivity.
The
teamwork during
construction
improves quality
and the
chance
of
timely
completion
and
results
in
fewer
lingering dis-
putes.
See
"Partnering.
A
concept
for
success"
[12].
Partnering between owner, engineer,
and
con-
tractor
has
been
tried,
often
with success
but
some-
times with mixed
or
poor
results.
Sincere
efforts
by
each
to be
fair
with
the
others
are the
keystone
to
success.
Resolve
Potential
Claims
as
Change
Orders
Claims that lead
to
litigation
are
simply disputes that
could
not be
resolved
as
change
orders.
The
apparent
ease
of
such
a
solution
is
deceptive
if any of the
fol-
lowing
occurs:
•
Ambiguous contract language
•
Imprecise contract words
or
phrases such
as
"prompt,"
"reasonable,"
"workmanlike,"
and "to the
satisfaction
of the
engineer,"
which will surely
lead
to
different
interpretations
by
different
people
•
Lack
of
communication
and
mutual respect.