Q: Why would I want to do anything different – employ AMP instead of GC?
- When there is no option – the schedule requires construction to commence before the design is completed.
- Too many unknowns / anticipated changes to ensure a fixed price (e.g. renewal projects).
- Ongoing occupancy takes priority over construction; an occupied building can be the makings of a “hostage taking”.
- Innovative design requires construction that the typical trades are not familiar with.
- To ensure an occupancy schedule where the “contract” may not be enough; contracts are for going to court, not for building – really what can you do when a contractor is in default?
- Lower overall total finished cost – Value.
Q: Why would I want to “Micro Manage” so many Trade Contracts when I could have just one General Contract?
- Because the management of many smaller contracts that you have control of, is less risk that one large contract without control.
Q: Will I have to pay the individual trades?
- No. The Client pays one monthly check to the General Trades Contractor who then pays (in trust) each Trade Contractor as Certified by the Architect – no back charges or markups. As the Client’s Project Manager, when we ask a trade to do work for them, they trust that they will be paid.
Q: Does the Architect run the construction site? Who is the Constructor in the eyes of the Ministry of Labour?
- No. We manage the “paper” while the General Trades Contractor manages the “mud”.
- The General Trades Contractor enters into a CCDC#3 Cost Plus Contract (at a fixed fee) and assumes “Nominated” Trade Contracts CCDC#1 are prepared and managed by the Architect.
- The General Trades Contractor “controls” the site, and is responsible by contract for site safety; all instruction are issued by the Architect to the General Trades Contractor, and copied to the Trade Contractors.
Q: Who runs the site meeting and takes the Minutes?
- The Architect – we control the information and money.
Q: Who do the Trade Contractors work for?
- By Contract they work for the General Trades Contractor, but we “micro manage” their contracts.
- We prequalify the trade contractors on the Client’s behalf, meaning they bid to the Client rather than to a General Contractor.
- Since the Client protects their payment, there is a bond, respect and obligation with the Tradesmen.
- This is of great value to the Client in future tenders when it comes to negotiating changes in the work, meeting schedules, quality of work, completing deficiencies and resolving warrantee issues.
Q: Who is responsible for performance of the work, quality control, deficiencies, project close out, and warrantee claims?
- The Architect. Just as with a General Contract, the Architect does not build; we “Micro Manage” each Trade Contract to a total outcome as if each were a General Contract.
Q: Can we have a Performance Bond for the project?
- Yes, but we question its value, and the Client could save this considerable cost. We believe that we have the “leavers” necessary to control the work.
Q: Who carries the insurance during construction?
- The General Trades Contractor.
Q: If a Trade Contractor defaults, what happens?
- We negotiate and nominate another Trade Contractor to complete the work; and
- We negotiate the termination of the defaulting Trade Contractor.
Q: Will this cost more?
- No. The Client always pays someone to manage the trades. Our Fee is in lieu of the General Contractor’s fee, and is booked as a construction cost; and
- Our experience is that the total cost is the same or less (3-5%) than a General Contract that goes well, and AMP is priceless when a General Contract goes badly.
Q: Who is the Payment Certifier?
- The Architect.
Q: Does AMP comply with BPSPP?
- Absolutely. For all trade contracts, all bidders are prequalified, tendered, awarded and administered in accordance with BPSPP.
Q: How will I know the total price?
- From the earliest design phase, the total work is broken into component costs, risks are assessed and appropriate contingency allowances are included.
- As the design matures, the Construction Cost and contingent risks are continuously reassessed as more is known, and the design is adjusted to maintain the approved budget.
- From the commencement of construction to completion, the Construction Cost is the managed total of all trade contracts (reported monthly); the scope of work is adjusted as required to maintain the approved budget.
Q: How are Changes in the Work controlled?
- The Architect negotiates the price and the work, directly with each Trade Contractor involved with the change, issues the instructions to all, and amends each affected Trade Contract.
- The General Trades Contractor receives no markup.
Q: Is there more work for Client staff?
- There is no additional work for the Client than with a General Contract.
- The Architect manages (instructions, changes & payments) each Trade Contract the same way as a General Contract – “Micro Management” of some 40 Contracts.
- The Architect issues one monthly draw for the project which looks like a monthly General Contract draw, and includes, as additional backup, a Certificate for Payment for each of the Trade Contracts.
- It is our job to keep your staff informed and where there are issues, to bring solutions.
Q: What is the Architect’s form of Contract?
- The additional work is contracted as an Additional Service under a standard Client Architect Agreement.
Q: Does the OAA allow Architects to do this?
- The OAA and ProDemnity require that we only do what an Architect “usually” does – we use the same tools and methods – only much more of the same – design, contract and administer.
- We have no “commercial interest” in any of the work / contracts; we are an Architectural Consultant who “micro manages” the contracts for the Client