2014
STUDENT CHAPTER
SUMMIT
General Conditions:
What’s In, What’s Out
and How Much?
About the Instructor
 Robert J. Durr, Jr.
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Vice President
Durr Mechanical Construction, Inc. - New York, NY
NYC Master Plumber and Sprinkler Licenses
Specializes in Industrial, Power & Process
37 Years in Mechanical Construction
18 years in MCAA LEM Committee
GOALS FOR
TODAY’S SESSION
GOALS
Understand what General Conditions are
and identify what is needed.
 Learn new strategies to competitively
price General Conditions.
 Organize a complete estimate.
 Provide an Intelligent bid package.
BLUE PRINT TO GENERAL CONDITIONS
Organize your Estimate
Request for Quotations
Bid Documents
Specifications
Drawings
Owners/CMs Contract
ASSEMBLY OF THE ESTIMATING FRONT SHEET
READ THE CONTRACT
DOCUMENTS!
Assembly of the Estimate Front Sheet
Components of Front Sheet (Assembly)
5 major Components
Assembly of the Estimate Front Sheet
Components:
1. Material
• Pipe Fittings & Valves
• Hangers & Supports
• Nuts Bolts & Gaskets
• Welding Consumables
• Shop Fabrication
Assembly of the Estimate Front Sheet
Components:
2. Equipment (Vendors)
• HVAC: Air Handling Units, Pumps, Chillers, Boilers, Cooling Towers etc.
• Plumbing: Fixtures Drains, Carriers, Water HEATERS, Sewage Ejectors etc.
• Process Equipment: Reverse Osmosis, Clarifiers, Sluice & Slide Gates etc.
• Specialties: Expansion Joints, Traps and Strainers, Control Valves
• Air Distribution: Fans, Air Outlets, VAVs, Chill Beams
• Shop Fabrication (Could be in Materials)
Assembly of the Estimate Front Sheet
Components:
3. Subcontractors
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Sheet metal
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Insulation
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Temperature Controls
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Nondestructive Testing (NDE)
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Controlled Inspection
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Rigging
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Civil
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Others
Assembly of the Estimate Front Sheet
Components:
4. Labor
• Various Trades (know the work rules)
• Read the Collective Bargaining Agreement (CBA)
• Pipefitter, Plumbers, Boilermakers, Sheet metal, Apprentice
Ratios
• Support- Laborers, OEs, Carpenters, Teamsters
• Supervision – Foremen, General Foremen, Non Working
Stewards, Superintendents?
• Misc. Activities – Tool Box Talks, Weld tests, Bull Gang
• Derive Hours using MCAA WebLEM
Assembly of the Estimate Front Sheet
Components:
5. GENERAL CONDITIONS
• A.K.A.
Other Direct Job Costs (ODJC)
• Site General & Administrative Costs
• Not to be Confused with Office G&A
Assembly of the Estimate Front Sheet
Components:
1.
2.
3.
4.
5.
Material
Equipment (Vendors)
Subcontractors
Labor
GENERAL CONDITIONS
General Conditions
General Conditions
Assembly of the Estimate Front Sheet
Lets Examine What’s in General Conditions
Office G&A vs Site General Conditions
Pop Quiz
Office G&A vs Site General Conditions
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Executive officers – Office
 Project Manager – Site
 Estimators – Office (What about COs)
 Drafting – *Site
 QA/QC – *Site
 Safety – *Site
 Superintendent(s) – Site (Labor)
 Project Engineer – Site
 Clerk/Admin Assistance – *Site
 Payroll Clerk – Office
 Contract Administrator – Site or Office
 Claims Consultant – Site (Subcontractor)
Office G&A vs Site General Conditions
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Shop Delivery Truck – Office (Site Allowance)
 Company owned Lifts – Site
 Survey Equipment – *Office
 AutoCad Software License – *Office
 PM IPM Training Cost – Office
 Safety HAZWOPs – *Site
 Laptops/PCs – Site
 Monthly Fed Ex Bill – Site (Proportionate)
 PM Vehicle/Lease – Site
 Bonding Charges – Site
 Legal Charges for Contract Review – Office
 Field Staff Benefits – Site
Office G&A vs Site General Conditions
Office General & Administrative Costs
• Main Office Costs -OVERHEAD
• Not Site Specific Charges
• Financial Nut to Cover Regardless of Work Load
• Used for Calculating Overhead & Profit
Office G&A vs Site General Conditions
Office General & Administrative Costs
• Administrative Payroll & Taxes:
 Executive Staff
 Accounting Department
 Estimating & Purchasing
 HR Department
 Shop Manager
 Shop Hands and Drivers
Office G&A vs Site General Conditions
Office General & Administrative Costs
• Administrative Support:
 IT Costs
 CPA
 Security
 Legal Council
 Shop Operations
 Fleet Maintenance
Office G&A vs Site General Conditions
Office General & Administrative Costs
• Other Costs:
 Office Supplies & Furniture
 Bank Financing Charges
 Travel & Living Expenses
 Conferences – Seminars - Training
 401K & Healthcare
 Automobile payments/maintenance
 Rents/Mortgages
 Others
Office G&A vs Site General Conditions
Site General Conditions Costs
• Not part of Main Office Overhead
• Site Specific
• Where Do We Find Site G&A Requirements?
• IN THE CONTRACT DOCUMENT
General Conditions
 Site Administrative Staffing
 Trailers
 Office Equipment & Expenses
 Tools & Equipment
 Taxes, Insurance, Building Risk (OCIP)
 Escalation
 Allowance Items/Add Alternates
General Conditions
 Site Office Staff
 Project Manager
 Project Engineers
 Draftsmen
 BIM Coordinator
 Safety Manager and or Inspectors
 QA/QC Manager and/or Inspectors
 Scheduler
 Superintendent(s)
 Others - Firewatcher
General Conditions
 Trailers & Storage
 Site Trailers
 PM Office Staff Trailer(s)
 Change Trailers
 30 persons/per, Females, By Trades
 Built up Shanties
 Tool Rooms & Storage Containers
 Trailer Hook ups
 Electrical/Plumbing
 Mobe & Demobe Costs
General Conditions
 Office Equipment & Expenses
 Office Equipment
 Desks, Planning tables, Chairs, Coffee Pot
 Site Computers, Internet service, Site server
 Telephones (Cellphones), Copiers, Fax?!
 Expenses - Parking, Travel, FedEx,
Entertainment
 Reproductions, O& M Manuals,
 Permits and Filing Fees
General Conditions
 Tools & Equipment
 Tools
 Sometimes part of labor rate
 Based on a percentage of Labor (3-6%)
 Lump Sum
 Consumables- Consider in Material
 Safety Personal Protection Equipment (PPE)
General Conditions
Tools & Equipment
Equipment
 Use MCAA Rental Blue Book for rates
 Specific for the project
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Welding machines (gas or electric hookup)
Fusion machines
Testing Equipment
Personnel lifts – scissors, articulating boom
Scaffold – sectional, baker
Cranes, forklifts, lulls & site trucking
• Don’t forget to add for
Fuel/Maintenance & OE/Teamster
General Conditions
Taxes, Insurance, Building Risk, Bonding
Taxes
Capital improvement – What’s taxable
Tax exemption
Local Economic Development Zones
General Conditions
Taxes, Insurance, Building Risk, Bonding
 Insurance
 General liability
 Rate on Labor or Total Cost
 Watch for excessive limits
Workers Compensation
 Part of Labor Rate
WATCH OUT FOR
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Indemnification Clauses
Excessive Limits
OCIP/CCIP Term Limits
Liquidated Damages
(LDs)
 Pull out number for OCIPs & CCIPs
General Conditions
Taxes, Insurance, Building Risk, Bonding
 Builders Risk
 Most Public Work
 Yearly Renewal Costs
Bonding
 Bid Bond/Payment & Performance Bonds
 Limits by Project/Total Cap
 Personal Guarantees
 Increases with Change Orders
 Prior Approval
General Conditions
Escalation/Overtime
 Start and End Dates
 Work Scope Duration & Phasing
 Include Craft Escalation/Overtime in LABOR
 Consider ODJC Escalation/Overtime
General Conditions
Allowance Items
 Add to above the Line
 Deduct once O&P & Insurance/Bond/BR are added
 Won’t jeopardize ODJC if deducted from Contract
Assembly of the Estimate Front Sheet
Components:
1.
2.
3.
4.
5.
Material
Equipment (Vendors)
Subcontractors
Labor
GENERAL CONDITIONS
General Conditions
What Affects General Conditions
 Each Project should be Analyzed Closely
 Contract Documents
 Project Delivery System
 Site Conditions
 Installation Methods & Material Handling
 Project Schedule
 Project Administration
What Affects General Conditions
Contract Documents
RFQ / Site Walkthrough
Needs to be in writting
Section 00700: General Conditions
Boiler Plate Document
Minimal Requirements
Section 00800: Supplementary Conditions
Specific to the Project
What Affects General Conditions
Project Delivery
 Design Bid Build (DBB) – Design/Procure/Construct
 Design Bid Build w/ CM – CM acts as Owner Rep
 Design Build (DB) – Full responsibility
 Design Build Operation Maintain (DBOM) –
 Build Operation Transfer (BOT) –
 Integrated Project Delivery (IPD) – Owner shared
 Target, Cost Plus w/Guarantees
What Affects General Conditions
Site Conditions
 Analyze what the site conditions will be During Construction
Labor Constraints
Travel time to/From parking to gate,
Sanitary Facilities,
Change Trailers
Material Laydown
Permitting, QC hold points
Safety Orientation
Weather
Labor Availability
What Affects General Conditions
Site Conditions
 Analyze what the site conditions will be During Construction
Type of Construction
 Commercial vs. Industrial
 New vs. Renovation
Equipment Constraints
Point of Delivery and Dates
Site Access for People, Materials
Location for Trailers and Temporary Facilities
Project Sequencing or Phasing
Security
What Affects General Conditions
Installation Methods and Material Handling
 Joining Methods
Welding
Grooved
Soldering Brazing
ProPress
Fusion
What Affects General Conditions
Project Administration
 Prime Contractor or a Sub-Contractor?
 Separate Primes
 Time and Material Contract
 Federal, State & Local Regulations/Codes
 Liquidate Damages or Bonus Incentives
What Affects General Conditions
Lets take a look at some
Contract Clauses
MCAA Student Summit 2014
General Conditions Specification Adders
Ventilation during Welding & Burning Operations: This subcontractor shall
furnish, install and maintain ventilation within the Building for control of
welding and burning fumes to all OSHA, FDNY and Building Department
Standards.
Temporary Heat Pumps & Filtration Units: This subcontractor shall furnish
and install the equivalent of a Mitsubishi DX Split Heat Pump (heating &
cooling) Unit for temporary climate control in the Elevator MERs, Electrical
Substation Rooms, IT Room and the UPS Room inclusive of NEMA/HEPA
filters, starters and temperature control wiring. The units are to be sized at
minimum 25% of the cooling capacity of the permanently specified units for
these rooms. The condensing sections will be installed remotely as coordinated
with the Construction Manager. In addition, this subcontractor shall include
delivery and installation of 8 forced air micro trap filtration units inclusive of 4
spare cases of hoses and filters.
MCAA Student Summit 2014
General Conditions Specification Adders
Temporary Floor Ventilation: This subcontractor shall furnish and install intake
and exhaust fans, associated plenums, ductwork, dampers and interior louver
insulated safeing panels at each of the four building quadrants as required
ventilating floors 3 thru 9 at the rate of 2.5 air changes per hour. Two temporary
louvers will be installed in the curtain wall at each of the 4 quadrants per floor to
allow for intake and exhaust at opposite ends of the quadrant. The temporary
ventilation systems will draw outdoor into each quadrant and exhaust air from the
opposite side of the quadrant to achieve the desired air changes. This
subcontractor shall test and balance the systems to confirm that the desired air
flow is achieved.
MCAA Student Summit 2014
General Conditions Specification Adders
Branch Connection to Risers:
This Subcontractor is required to install the branch connections to all pre-installed
Pipe and Sheet Metal riser taps as installed by the Core Riser HVAC Subcontractor.
These Pipe & Sheet Metal Branch Tap connections have been left within 2 feet of
the Interior side of the Shaft Walls. This Subcontractor is required to intercept
these Riser Taps by removing any and all piping and duct work, including caps,
provide connections to these existing riser taps and to provide the required, as
indicated on the contract documents, the Piping, Duct Work, Piping Branch Riser
Isolation Valves and All required Branch Fire/Smoke Dampers. During this
Subcontractors pipe cleaning and chemical treatment procedure and duct leakage
testing procedures the previously installed, existing pipe and duct risers will be
incorporated into these procedures.
MCAA Student Summit 2014
General Conditions Specification Adders
Spray Fireproofing: This subcontractor shall exercise reasonable care in installing his
work so as not to remove fireproofing in amounts considered excessive for work being
performed, (1” for most Hangers & Beam Clamps). Fireproofing removed in excess shall be
patched at the expense of this Subcontractor. Fireproofing removed by out-of-sequence
work will be patched at the expense of this Subcontractor.
Commissioning: The building systems on this project shall be formally commissioned by
the subcontractor in conjunction with a Commissioning Agent engaged directly by the
Owner. The commissioning process and methods employed shall verify the building
systems meet the design criteria, and ensure proper operation of all equipment per the
Contract Documents. It is anticipated that due to the complicated nature of the systems
and equipment, as well as the quantity of these components that the commissioning
process will require EXTENSIVE coordination and man hours to complete. This
subcontractor’s dedicated full time commissioning manager, who is a supplement to its
dedicated full time construction project manager, will need dedicated continuous
assistance by several of this subcontractors start up mechanics and controls technicians as
well as the dedicated and continuous participation of each of this subcontractors subs start
up and testing representatives for the timeframe to compete and secure all sign offs.
MCAA Student Summit 2014
General Conditions Specification Adders
LEED – Duct Cleaning: This subcontractor includes capping the ends of its piping, duct work, etc.,
when no immediate work is being performed to prevent contamination from foreign materials. Duct
work and piping to be kept rust-free and sealed from foreign matter. In the event that this
subcontract does not properly protect the open ends of unfinished sections of ductwork, or, does not
maintain proper MERV filter protection of the duct systems and equipment, this Subcontractor shall
be responsible for the cleaning of all ductwork systems prior to turn over and occupancy. This
cleaning shall be supplement to the purge sequence described in the specifications. This
subcontractor shall include initial cleanup of all HVAC equipment provided under this contract. This
subcontractor shall coordinate when to initiate equipment clean up with the Construction Manager
but it shall succeed taping and polishing activities on the floor at a minimum. This Subcontractor
must provide an Independent Cleaning Company to complete 2 hospital grade cleaning
procedures on all equipment used for temporary services.
BATC Interface with the Fume Hood Extract Systems Subcontractor: This Subcontractor shall
include wiring, pretesting, final testing, balancing and commissioning for all fans, equipment and
devices furnished and installed by the Fume Hood Extract Systems Subcontractor. This
subcontractor shall be hired by the CM directly. All coordination, standby testing and balancing
associated with this installation shall be included in this subcontractor’s scope of work.
MCAA Student Summit 2014
General Conditions Specification Adders
HVAC Device Location: This Subcontractor shall coordinate with the architectural drawings for all recessed and
surfaced mounted devices to conform to design and code compliance as well as architectural elevation details.
No device is to be installed in elevation and plan without a shop drawing designating the intended location.
When the location is not clearly identified on the contract documents, it is to be noted as such on the shop
drawings so it can be identified and approved individually by anyone who is required to review and approve,
including the construction manager, architect, and engineer and sub consultants as needed.
Temporary Electrical: This Subcontractor shall make its own arrangements and pay for costs to hook-up
their welding machines, shanties, and any other items needed to produce their work. This Subcontractor shall
be responsible for the furnishing of all required hook up MEP services which may be required for temporary
shanties, trailers and storage areas.
Heat Tracing: This Subcontractor shall furnish heat tracing per the plans and specifications. This Subcontractor
includes all coordination and identification of required placement prior to installation of insulation. This
Subcontractor shall include heat tracing on all piping in unheated spaces or where a potential for freezing
occurs, even if not shown, if this Subcontractor coordinates the route of that piping thru the unheated space.
This Subcontractor shall be responsible for the installation, unless explicitly identified in the electrical section of
the specification. All BATC interface per plans and specs shall be included.
MCAA Student Summit 2014
General Conditions Specification Adders
FDNY Ventilation Drawings: This Subcontractor is to coordinate with the Fire
Alarm subcontractor to create a drawing of each floor indicating the air changes
per hour per room based on the final balancing report.
Steel Supplemental Supports: This Subcontractor shall furnish and install
supplemental supports as is required to maintain the point loading specification of
the building structure. This work shall include all engineered systems with a
professional engineering stamp for submittal and approval by the structural
engineer of record for the project. This Subcontractor shall be responsible for
coordination of all inserts for hangers for approval by the structural engineer.
Miscellaneous structural support members installed in mechanical rooms, and
where exposed to public view shall be galvanized per spec section 230000.17C.
MCAA Student Summit 2014
General Conditions Specification Adders
Waterproofing: This Subcontractor shall provide all fans, all louvered penthouses, all
penetrations through the roof including but not limited to prefabricated roof curbs,
counter flashing, link seals, ALD’S, penetration coordination, separation between the MMB
and CEP, shaft way connection to the exterior, Roof penetrations at the urban layer or any
other waterproofing or epoxy coated detail associated with its work. Curb details for
water proofing will be provided for coordination with piping, conduit or other slab
penetrations within the MBB by this Subcontractor.
Coordination – BIM Model: This Subcontractor shall provide DEDICATED draftsmen and
modelers for each specific division of work provided under this trades scope of work,
including but not limited to Sheet Metal, HVAC piping, Direct Digital Control System,
equipment vendors. The Subcontractor shall have DEDICATED BIM Manager (separate
from the individual Trade draftsmen or modelers) that will attend all coordination meetings
and manage transfer of the files & coordination sign offs within the scheduled timeframe to
deliver the floors. This person cannot be the Project Manager for the project and this must
be their sole purpose for this work. This Subcontractor includes BIM modeling per the plans
and specs and the BIM Execution Plan (Exhibit U).
MCAA Student Summit 2014
General Conditions Specification Adders
Testing and Start-up:
Provide testing, star up and commissioning of all systems and equipment installed as part
of this subcontract, whether provided as part of this agreement or furnished by others.
Provide a competent, full time on site commissioning manager whose functions will
include supervising and coordinating the start-up, testing, and commissioning of all
equipment and associated systems installed under this subcontract from the beginning of
installation though system turnover. Much of the testing and commissioning will occur
after normal working hours. This manager must be identified in the organization chart and
their early preparation will be required for the development of the start-up matrices,
commissioning plans, and O&M Manuals. This position will require significant interface with
other trades to ensure that all controls/supervisory loop & devices/communications operate
as intended. This person is in addition to the full time on-site project manager.
It shall be the responsibility of this Subcontractor to include all temporary work required to
accomplish multi-phased testing as directed by Construction Manager to accommodate the
project schedule. This may include, but is not limited to, the scheduling of these operations
after normal work hours. This work may be done out of sequence shall include all required
overtime.
MCAA Student Summit 2014
General Conditions Specification Adders
Hydrostatic Testing: After each hydrostatic leak testing procedure is complete, drain the system
until empty. Piping systems shall be internally chemically treated (INHIBITOR) and protected during
and after the hydrostatic testing procedure. Dry Nitrogen, at a pressure of +/- 5lbs. shall be
maintained within all piping systems after all hydrostatic testing. The process shall be monitored
by the chemical treatment manufacturer and a written report issued to the Engineer and Owner
two (2) weeks after completion of this subcontractor’s hydrostatic testing. The Owner or
Commissioning Agent shall witness all hydrostatic tests. This Subcontractor shall provide injection
pumps, water meters and coupon racks to control and monitor the concentration. After leak testing
and a sufficient time period to allow the interior of the piping to be chemically coated to prevent rust
formation, the piping shall be drained until empty. Refer to Section 230593 titled “Testing, Adjusting
and Balancing for HVAC”.
Training Hours: This Subcontractor shall provide all of the designated training hours as identified in
each specific specification section. This Subcontractor shall provide with their submittal schedule a
confirming list of hours as anticipated for review and approval. Timing will not be deducted unless all
designated parties are in attendance, including the commissioning team. ABC Company will only
receive training between Tuesday and Thursday 8:00 AM to 4 PM.
MCAA Student Summit 2014
General Conditions Specification Adders
Labels – Temporary: This Subcontractor shall provide temporary labels for all equipment and components
brought to the construction site. This shall include temporary identification of piping and ductwork systems, for
ease of verification and inspection. Unidentified product with specific system names can be rejected or asked
to be removed from the project site. The project manager from the Subcontractor and not the field Foreman
shall be confirming all products have been labeled.
Protection of Radiant Heat System: This Subcontractor shall provide pressurized, freeze protected water in
the radiant heat system after completion of testing. Testing MUST be completed prior to the final concrete
installation over the tubing. The pressurization will keep tubing in the proper shape during concrete fill
operations and provide an indication of future breaches that may occur during subsequent construction
activities. Each of the ceiling hung manifolds will be outfitted with a pressure gage that can be read from the
floor and recorded. This monitoring shall be done by this subcontractor and included in the QA/QC plan.
Maintenance: This Subcontractor shall be responsible for maintaining all systems prior to final acceptance. All
material shall be assumed running from the point of completed commissioning. When permanent equipment is
used for temporary heating or cooling, equipment maintenance & operation will be performed by this
Subcontractor. This Subcontractor is to submit a maintenance and operational plan for the equipment and
systems as prescribed by the operation and maintenance manual. The Subcontractor is to provide a list of all
material which must be provided on site for this requirement, including lubrications, special filter, and tools. A
maintenance log tag shall be maintained by this Subcontractor...
MCAA Student Summit 2014
General Conditions Specification Adders
1. Subcontractor shall provide a Site Safety Representative on-site, during the performance of its
work, in accordance with requirements set forth in Subcontract Exhibit J and the Project OCIP
Manual. This representative shall to ensure compliance with all safety requirements as outlined in
Subcontract Exhibit J and this scope of work, and perform all necessary reporting (Site Specific
Safety Plan, Job Safety Analysis, permits to work, pre-tasks plans, etc.
2. Subcontractor shall provide a Full-Time Assistant Project Manager on-site, during performance
of its work, to ensure compliance with all reporting requirements as outlined in Subcontract Exhibits
H (EEO/MWLBE Requirements) and Exhibit I (Environmental and Leeds), and Specification Sections
018120, 018130, and 019000.
3. While working on site, this subcontractor’s Superintendent, Foreman (all trades) & Full Time
Safety Manager will have radios keyed into the Construction Managers frequency. Radios are to
remain on at all times that this subcontractor’s manpower is on site. Non-compliance will result in a
$500.00 fine. Subcontractor shall provide the telephone and cell number of their General
Superintendent in case of an emergency and/or access to him is required.
MCAA Student Summit 2014
General Conditions Specification Adders
5. Subcontractor shall comply with the NYC DOT traffic stipulations included in Exhibit N and shall
be responsible for any fines or violations caused by non-compliance.
6. This subcontractor shall follow all interim schedules that may be issued and updated by the
Construction Manager as the job conditions require, at no additional cost to the Owner.
Common Estimating Mistakes
1+1=3
2+3=?
Common Estimating Mistakes
Avoid estimating practices that introduce errors:
 Misread or misinterpreted specifications or drawings
 Takeoff omissions or miscount
 Transposing errors
 Takeoff sheets lost or misplaced
 Extension miscalculations or incorrect formula’s
 Missing quotes or Incomplete Scopes from Vendors/Subs
 Estimating by cost per square foot or unit prices
 Using the percentage method to establish the cost of
certain systems
Helpful Hints
 When done with the Final Front sheet – Run a Tape
Proof Read, Proof Read, then Proof Read
 If working Job Overtime, do not forget to include your Field
Administration. The same goes for Escalation
When Developing Salary Structure be realistic
When setting up your Company make sure you are financially capable
of performing the work.
$25,000,000 Annual Sales do not do $50,000,000 projects
Don’t have Executives of $80,000,000 Companies running work
Don’t Drop your price. Negotiate something for it
Don’t do work for free
Thank you for the
OPPORTUNITY!
Good Luck with the
2014 Student Chapter
Competition