Joint SSF HN Exchange Seminar Management of Construction Changes Indirect Contracts (US)

Transkript

1 Joint SSF HN Exchange Seminar Management of Construction Changes Indirect Contracts (US) Lee Davis IMCOM-Europe (HNL-FOA) 22/23 October 2009 Our Mission: Provide Installations that enable Soldier and Family readiness, and provide a quality of life that matches the quality of service they provide to the Nation. Leading Change for Installation Excellence Lee Davis, IMEU-HGU/Lee.Davis1@eur.army.mil/ of 22

2 Principles of Successful Management of Construction Changes Observance of both German and US public construction procedures and policies (Ref: PoS, General, Item 1) Timely identification of change requirements Immediate consultations between Bauamt and US Project Engineer Joint validation of need for change and best course of action Immediate Submission of ABG Form 5 or 5A Inclusion of validated cost estimates and time impacts in ABG-5 Expeditious processing, funding and approval of change requests 2 OF 22

3 Protocol of Signature to ABG 1975 (US) 1. Statement of Principles: The parties to the agreement recognize that the public construction procedures and policies of their respective governments vary in many respects. They undertake to resolve such differences and inconsistencies in a spirit of mutual cooperation. 3 OF 22

4 Revisions to ABG 1975 Implementing Instructions and ABG Forms (US) Four of the Articles amended in the Implementing Instructions apply to construction changes (4.2.2, 9.1, 9.2, and 12.3) Both ABG Forms 5 and 5A underwent major revisions Primary purpose of revisions related to changes are: Make clear distinction between changes requested based on estimated costs vs negotiated proposal between Bauamt and contractor Prescribe timely notification of pending delays, cost growth and proposed alternative courses of action Include time impacts in change requests Reinforce that work shall not be executed that exceeds approved contract amount without written approval by US authorities 4 OF 22

5 Revisions to ABG Form 5A US Change Request 1. The following change(s) to the above mentioned construction project is (are) requested: / Es wird gebeten, bei o. a. Baumaßnahme folgende Änderung(en) vorzunehmen: 1.1 Description of Change: / Beschreibung der Änderung: see attachment / siehe Anlage 1.2 Reason for Change: / Begründung der Änderung: see attachment / siehe Anlage Adds Reason for Change to Item 1 which helps to provide a better understanding of the purpose of the US requested change. 5 OF 22

6 Revisions to ABG Form 5A (cont.) 2. Authority to proceed with the above described change is granted. / Die vorstehend beschriebene Änderung darf durchgeführt werden. Funds in the amount are available of / Mittel stehen zur Verfügung in Höhe von: and shall not be exceeded without approval of the US Contracting Officer./ und dürfen ohne Genehmigung des US-Beschaffungsbeamten nicht überschritten werden. Provides for simultaneous ordering and funding of urgent US requested changes based on estimated costs. Funded costs may not be exceeded without approval of US Contracting Officer. 6 OF 22

7 Revisions to ABG Form 5A (cont.) 3. Request submission of ABG 5 within 60 working days as possible based on: / Anforderung des Formblattes ABG 5 möglichst innerhalb 60 Werktagen auf folgender Grundlage: 3.1 Estimated costs / geschätzte Kosten Euro 3.2 Proposal negotiated between Bauamt and contractor / Geprüfte und abgestimmte Änderung Submission of ABG-5 within 60 working days 7 OF 22

8 Revisions to ABG Form 5 Change Order Document Änderungsdokument (Artikel 12 ABG 1975) / Change Order Document (Article 12 ABG 1975) ABG 1975/ABG 5 Änderungsanforderung auf Basis geschätzter Kosten und Terminänderungen/ Change Request based on estimated costs and revised completion date (Estimated Request) Geprüfte und mit dem Auftragnehmer abgestimmte Änderungsanforderung / Change Request based on proposal negotiated between Bauamt and contractor (Negotiated Request) Nr. / No. ABG Form 5 may be used to request change based on estimated costs or based on proposal negotiated between Bauamt and contractor. Choice depends on urgency and status of change development. 8 OF 22

9 Revisions to ABG Form 5 (cont.) Teil I / Part I 2. Auswirkungen der Änderung / Impact of change Änderung der Gesamtkosten / Change of total cost Voraussichtliche Änderungen der Termine (vgl. auch 7.1) / Expected change to construction schedule (see 7.1) Andere Auswirkungen (z.b. Vertragsstrafen, etc., Erklärung ist beigefügt) / Other impacts (e.g.liquidated damages, etc., explanation is attached) 9 OF 22

10 Revisions to ABG Form 5 (cont.) 7. Sonstiges / Miscelleaneous 7.1 Auswirkungen auf den Bauablauf / Impacts on construction progress Keine erwarteten Auswirkungen, wenn dieser Änderung zugestimmt wird bis zum / No expected impacts if this change request is approved no later than Erwartete Auswirkungen, wenn nicht zugestimmt wird bis zum / Expected impacts if not approved until Verzögerung des Bauablaufes um (aber ohne erwartete Änderung des Fertigstellungstermins, vgl. untenstehende Erläuterung*) / Delay in construction schedule (however with no expected change of final completion date), see explanation below* Erwartete Änderung des Fertigstellungstermins (vgl. untenstehende Erläuterung*) / Expected change in final completion date, see exlanation below* Zusätzliche Mehrkosten entstehen, vgl. untenstehende Erläuterung* / Incurrend cost increases, see explanation below* *Erläuterung (In der Erläuterung werden die Auswirkungen einer Verzögerung zur Zustimmung dargestellt) / Explanation (the potential impacts of a delay in the approval of the change request are to be explained): Datum / date Datum / date Werktage/ working days Datum / date EURO 10 OF 22

11 Revisions to ABG Form 5 (cont.) 4. Kosten der Änderungen / Changes to contract costs 4.1 Summe der bisher von US genehmigten Änderungen / Cost of previous US approved EURO changes 4.2 Summe der bisher vorgelegten und noch nicht von US genehmigten Änderungen / EURO Cost of previously submitted change requests pending US approval 4.3 Kosten dieser vorliegenden Änderung / Cost of this change request EURO 4.4 Voraussichtliche Gesamtsumme der Änderungen / Expected total cost of changes EURO This list of costs includes all submitted change requests 11 OF 22

12 5. Unterlagen / Documentation Revisions to ABG Form 5 (cont.) 5.1 zur Änderungsanforderung auf Basis geschätzter Kosten / supporting the Estimated Request: Beschreibung/Begründung des Nachtrags durch das Bauamt (incl. Leistungsbeschreibung, Mengenermittlung, Einheitspreis, Gesamtpreis, Bewertung der Kosten), siehe Anlage. / Description/reason for change by the Bauamt (including specification of works, quantity calculation, unit price, total price, cost evaluation), see attachments. Voraussichtliche Vorlage der geprüften und mit dem AN abgestimmten Änderung bis zum / Expected submission date of Negotiated Request Datum / Date 5.2 zur geprüften und mit dem Auftragnehmer abgestimmten Änderung / supporting the Negotiated Request: Vollständiges Nachtragsangebot (Angebotsschreiben des Unternehmers, Nachtragsleistungsbescheibung, begründende Unterlagen) / Complete change proposal (Written proposal of contractor, specification of works, explanatory documents) Fachtechnische Stellungnahme (FTS) des Bauamtes (inkl. Bewertung des Unternehmerangebotes) / Technical Evaluation of Bauamt (including cost review of contractor s proposal) Sonstige Unterlagen (z.b. Besprechungsprotokolle) / Other documentation (e.g. Minutes of meetings) Item 5 specifies required supporting documentation for Change Requests 12 OF 22

13 Revisions to ABG Form 5 (cont.) Part II / Teil II Change Order / Änderungsauftrag US Contract Modification No./ US Vertrags-Änderungs-Nr.: US Change Order No./ US-Nachtrags-Nr.: 10. The above described change(s) is (are) noted and authority to proceed with is granted. Revised contract amounts are available (Article 12.3 up to 12.5 ABG 1975). The amount in Part I.4.4 shall not be exceeded without approval of the US Contracting Officer./Die vorstehend beschriebene(n) Änderung(en) ist (sind) vermerkt und dürfen durchgeführt werden. Der Betrag für die geänderte Auftragssumme steht zur Verfügung (Artikel 12.3 bis 12.5 ABG 1975). Die in Teil I.4.4 genehmigte Summe darf ohne Zustimmung des Beschaffungsbeamten nicht überschritten werden. Authority to proceed with the request for change is not granted for the following reasons / Aus folgenden Gründen darf die Änderung nicht durchgeführt werden: Einschlägige begründende Unterlagen werden zur Einsicht erbeten siehe Bemerkungen / Acces to relevant documentation is requested see remarks 13 OF 22

14 Article Implementing Instructions (Rationale, Urgency, Notification) The realization of changes under of these Implementing Instructions always require a change request (ABG 5 Part I or 5 A) and an order of the US Forces by use of Form ABG 5 Part II. Under Part I of the Form ABG 5, the German authorities shall include the rationale and urgency for each change and the impact if a change was not approved by the US Forces. If the German authorities are not yet in a position to provide a request for change using Form ABG 5, Part 1, they will provide advance notification of the change. The US Forces will respond to such advance notification as quickly as possible in order to avoid undue delay in construction work. 14 OF 22

15 Article 9.1 Implementing Instructions (Changes in Approved Schedule or Costs) If there is indication that the agreed upon schedules can not be met for any phase of the project, the US Forces and the German authorities will notify each other in a timely manner of any pending delay and reasons for the delay and will propose alternative courses of action for consideration and remedying. The same applies for cost growth exceeding the approved amount of funds and/or scope of work. Tell each other about changes you know about Involve each other in discussions Use teamwork to evaluate alternatives (e.g. cutting scope) 15 OF 22

16 Article 9.2 Implementing Instructions (Revisions to Construction Schedule) Any change to an agreed construction completion date must be approved by the forces using the Form ABG 5. For each new ABG 5 Form submitted the Bauamt will consult with the US authorities to determine if and when the construction time schedule needs to be updated. 16 OF 22

17 Article 12.3 Implementing Instructions (Exceeding Approved Contract Amount) The contract amounts within the meaning of Article 12.3 ABG 1975 and the "amounts approved" within the meaning of Article 12.5 ABG 1975 are those amounts which the US Forces confirmed as established on part II of Forms ABG 4/5. As soon as the Bauamt becomes aware that the approved contract amount will be exceeded, the Bauamt will immediately notify the US authorities in writing and provide the reasons for the cost increases. 17 OF 22

18 Article 12.3 Implementing Instructions (cont.) The US authorities will promptly ascertain in writing which already awarded work items will be put on hold until a decision is reached on the availability of additional funding or will not be executed to reduce costs. The Bauamt will not permit work to be executed that exceeds the approved contract amount and is not approved in writing by US authorities, even if thereby construction delays were to occur. All German and US agencies involved in the change order approval process are committed to take all feasible steps to preclude construction delays. 18 OF 22

19 SUMMARY Major revisions were made to the Implementing Instructions and ABG Forms 5 and 5A to improve the change order process An Estimated Request (ABG-5) shall be submitted when time does not allow for a Negotiated Request New ABG-5A can be used by US to fund and authorize changes simultaneously New ABG-5 defines in more detail supporting documentation. 19 OF 22

20 SUMMARY (cont.) Work shall not be executed that exceeds the approved contract amount and is not approved in writing by US authorities Successful management of construction changes is dependent on excellent communication, superb teamwork and working in a spirit of co-operation. The best tactic for change management is not to allow any changes to happen. 20 OF 22