Master Municipal Construction Documents Association

Contract Considerations Video Series

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Contract Considerations Video Series

Intro to Contract Considerations

(8m) Meet Senior Course Instructor, Brian Weeks, and learn about MMCD's "Contract Considerations", a series of videos that digs into issues commonly encountered by MMCD users.

The Contract Documents (2013)

(8m) In the first Contract Consideration video in our series, Brian Weeks answers the question: "What are the Contract Documents?" and touches on the components of a complete tender package, supplementaries, and the document hierarchy.

The Role of the Contract Administrator (CA) (2013) 1 of 3

(8m) The role of the Contract Administrator is so critical that the Contract should not proceed without one in place. Brian Weeks outlines the CA's roles and responsibilities, including the "Three Hats" they wear during a project and the conflicts inherent with wearing those hats.

Watch the videos: "The Limitations of the CA's Authority" and "The Role of the Inspector" for an even deeper understanding of this topic.

The Limitations of the CA's Authority (2013) 2 of 3

(9m) Per General Condition 3.2.1: “The Contract Administrator shall have authority to act on behalf of the Owner only to the extent expressly provided in the Contract Documents.”

In this companion video to "The Role of the Contract Administrator" and "The Role of the Inspector", Brian Weeks discusses the limitations of the Contract Administrator's authority. 

The Role of the Inspector (2013) 3 of 3

(9m) An Inspector is the eyes of the CA on the job site. In this companion presentation to "The Role of the CA" and the "Limitations of the CA's Authority", Brian Weeks explains more about the role of the Inspector in the contract process.

The Contemplated Change Order (2013) 1 of 3

(10m) This video will review the process to generate a Change Order under the MMCD with a reminder about the implications of Changes vs. Extra Work.  For more information, also review "Responding to a RFQ" and "Issuing a Change Order".

Responding to a RFQ (2013) 2 of 3

(10m) Brian Weeks reviews the requirements for a Quotation and the implications of a qualifier that a Contractor may add in this companion video to "The Contemplated Change Order" and "Issuing a Change Order".

Issuing a Change Order (2013) 3 of 3

(11m) Questions about issuing a change order? In this final video in a three-part series, Brian reviews when a Change Order is needed and how to finalize the information needed on the form. He discusses negotiations and pricing methods, and uses the example developed in the previous two videos to write up a Change Order.

Refer also to: "The Contemplated Change Order" and "Responding to a RFQ"

Change vs. Extra (2013)

(8m) Wondering what the difference between a change and extra is? Brian Weeks explains the differences, and who does the work.

Math Errors at Tender (2013)

(8m) Sometimes a tender will come in that contains mathematical errors. To avoid having to automatically throw out that tender, the MMCD provides some rules allowing the Owner a limited amount of discretion to make changes. Brian Weeks explains the options available in this Contract Consideration.

MMCD Schedules (2013)

(11m) Brian Weeks reviews the need for, and differences among, four types of schedules included in the MMCD. He also looks at how a schedule gets adjusted and what sanctions can be imposed regarding schedule failures.

MMCD Principles (2013)

(9m) The MMCD was written to contain a fairly complete set of contract terms, but the writers knew they couldn't plan for every eventuality or use of the documents. They anticipated that there would be unforeseen situations when the author preparing the contract or person administering it would need to make choices about whether or not to include MMCD clauses and language in contracts, or how best to interpret a clause during the course of a project.

To help users make these choices, Brian Weeks reviews the philosophies, principles, and strategies that form the spirit and intent of the MMCD.

Risk Allocation (2013)

(9m) Under the Master Municipal Construction Documents philosophy, the standard documents minimize the amount of risk transferred from the Owner to the Contractor in a project. Brian Weeks discusses the tools the MMCD uses to allocate risk and the protocols for situations such as discrepancies in quantities or prices, or encountering Concealed or Unknown Conditions or Hazardous Materials.

Using IT-4 (2013)

(9m) Parts 1 and 2 of Instructions to Tenderers apply to the tendering process. Part 1 changes with each project; however, the terms in Part 2 generally do not change - unless they are inappropriate for the project.

Brian Weeks discusses how tender authors can use IT4 To modify, delete or add conditions for tendering to meet the specific conditions of their projects.

Dealing With Delays (2014)

(10m) Brian Weeks discusses how MMCD language - specifially GC13 - applies to dealing with delays and presents some of the legal principles that also apply.

Deficiency Management & Holdbacks (2014)

(12m) Brian Weeks discusses defects and deficiencies as they apply throughout an MMCD contract, how and when holdbacks can be taken and when they must be returned, and how the owner has ongoing protection.

Fair Standby Charges (2014)

(12m) Brian defines Standby Charge, outlines the concepts of what makes up standby charges, and how they should be calculated or verified to meet the contract language of the MMCD. He also offers a simple approach to determining appropriate equipment rates.

User Guide Error - Offsetting Quantity Variations (2014)

(8m) MMCD identified differences between the printed and electronic versions of the User Guide commentary on GC 9.4 regarding Offsetting Quantity Variations.

Brian Weeks clarifies the misinformation contained in Section 3 of the User Guide, reviewing the errors made during revisions to Volume II between the Gold and Platinum editions, and how to correct them.

Dispute Resolution (2014)

(15m) In this video, Brian Weeks discusses the topic of Dispute Resolution under MMCD rules. He explains,

• The need for a process
• The reasons for the involved process we use
• The steps in the process
• The time deadlines involved
• Who participates at each stage

The Importance of the Agreement (2014)

(15m) In this presentation, Brian Weeks highlights some of the critical features of the document called the 'Agreement' in the Master Municipal Construction Document regime.

The Agreement is the most important document in all the documents that form a complete construction contract. As such, it is vital that all parties (owners, contractors and the contract administrator) know what it enables and disallows. 

GC 12 May Not Be Enough (2014)

(9m) General Condition 12 in the MMCD deals with the discovery of unexpected hazardous materials during the course of a construction project.

The Master Municipal Construction Documents were specifically designed to create contracts for sub-grade municipal infrastructure such as sewers, waterline and other utilities. The very nature of this type of work implies unknown conditions. Since it is not practical to do geotechnical investigations continuously along the proposed route of a new project, we must expect surprises. One type of surprise is the discovery of unexpected hazardous materials.

A core philosophy supporting the MMCD is that risk should be apportioned based on who can best manage it. Also, we do not want bidders to have to include large contingency amounts for unknown risks on every tender. So how do we put these objectives into effect concerning hazardous materials? Find out in this 9-minute presentation by Brian Weeks.

3 Ways to Change a Subcontractor (2014)

(15m) In this video Brian Weeks discusses why an Owner might want to change a Subcontractor and the 3 ways this can be possible using the Master Municipal Construction Documents.

Force Account Schedules - An Awful Idea (2014)

(10m) In this video, Brian Weeks hopes to convince you that the MMCD Association got it right when they intentionally did not require tenderers to submit schedules of force account rates as part of the required tender package. 

Brian provides a better solution to the problem that prompts owners to ask for such schedules.

Find out more in this 10-minute presentation. 

Partial vs. Staged Substantial Performance (2014)

(14m) In this short video, Brian hopes to clarify for you the difference between Partial Substantial Performance, which is illegal, and Staged Substantial Performance, which is permitted in BC. 

NB: Due to the ever changing nature of the law, anyone who has a significant concern regarding liens, holdback, and holdback releases, should get up-to-date legal advice from a lawyer.

Prime Contractor Responsibilities (2014)

(12m) Brian Weeks outlines the responsibilities of the Prime Contractor and discusses the implications of designating the general contractor as the prime contractor for WorkSafeBC purposes.

What is a Referee (2014)

(14m) In this companion video to the Contract Consideration called "MMCD Dispute Resolution", Brian Weeks focuses exclusively on the referee step, including the referee's responsibilities and role in the dispute resolution process

The Critical Importance of Force Account Forms (2014)

(14m) Brian Weeks discusses when, why and where Force Account forms are required, and the severe penalty if they are not submitted.

Document Hierarchy Cautions (2017)

(13m) Brian Weeks explains the meaning, purpose and use of a Document Hierarchy and warns of a couple of potential problems which arise when Owners don’t understand why this is important.  He also explains that sometimes Contractors get to choose which option to follow if documents contain conflicting information.

Payment Processing Issues (2017)

(15m) Brian discusses the somewhat unique methodology the Master Municipal Construction Documents sets up for regular monthly progress payments to the Contractor. 

The Implications of Substantial and Total Performance (2017)

(14m) Brian defines Substantial Performance (GC 1.67) and Total Performance (GC 1.73) , and discusses who can initiate the processes, what should happen first and what happens after these important milestones. He refers to the BC Builders Lien Act and how the Act's requirements link to MMCD contract language referred to in GC 18.6, GC 18.7 and GC 18.9

What Exactly Does GC 13.10 Mean (2018)

(14m) Brian Weeks explains and interprets GC 13.10, which was written to clarify that time extensions which are due to a change in the scope of work are not delays and thus not subject to the provisions of GC 13. 

In order to receive the full benefit of watching this video, it helps to be clear about the difference between a Change and Extra Work. Please refer to the video "Change vs. Extra" for more insight.

The Problem of Putting Specs on Drawings (2018)

(11m) Brian discusses and provides examples of how putting specs on drawings can cause problems during a project, particularly when the drawings rank lower in the Document Hierarchy (GC 2.2.4.). He shares three ways to fix the problem, and the MMCD recommended best solution.

Implications of Optional Work (2018)

(17m) Brian Weeks defines (GC 1.48) and provides examples of Optional Work, and explains the related General Conditions: GC 7.4.1, GC 9.4.2, and GC 9.5.3.

Choosing a CA to Minimize Conflicts of Interest (2018)

(19m) The Contract Administrator has a mandate to impartially represent the interests of the owner, designer, and contractors throughout the course of a project.

Brian Weeks discusses the inherent conflicts of interest built into the CA's role, and what Owners can do to minimize those conflicts when choosing the CA for their project.

Cost Types & Reimbursability (2019)

(20m) Brian Weeks discusses contract costs from a Contractor’s perspective and the Owner’s liability for reimbursement from the Contract Administrator’s perspective.

In particular, he aims to clarify the difference between Indirect and Impact costs – terms which are often misused or incorrectly used interchangeably.

Brian also reviews the three types of overhead costs, how they relate to each other, and when an Owner can become liable to pay for them.

How Quantity Variation Adjustments Benefit Both Parties (2019)

(25m) The Documents Committee noticed that Owners were often substantially modifying or removing entirely GC 9.4 (Quantity Variations), motivated by reducing contract costs.

Brian Weeks provides examples of how keeping GC 9.4 benefits both Owners and Contractors, and explains how removing this clause actually increases the risk of unknown costs.

Payment Contrary to Specifications (2019)

(13m) This video addresses a long standing inconsistency in the MMCD specifications for payment of some items.

In the CA course, Brian Weeks stresses that the Contract Administrator does not have the authority to alter terms of payment agreed to by both parties to the Contract and accepted by the bonding company.  In once class, a student correctly pointed out that on almost every contract they had to waive some payment conditions to prevent the Contractor from walking off the job. 

This is a result of some of our payment conditions not being practical in the real world and people having to find “work around” solutions.  In general, ignoring Contract language is not good practice, so let’s look at an example and how it is, vs. should be handled.

 

Quality Assurance and Quality Control Testing (2019)

(15m) There is a certain amount of confusion shown in forum and class questions about the difference between Quality Assurance and Quality Control.  Brian Weeks brings some clarity to this topic as well as discussing testing and retesting options.

Part of the confusion comes from the difference between how other contracts handle these two types of testing compared to the MMCD.  Other contracts often have the Owner engage and pay one or more testing firms to do Q/A.  These firms  work concurrently with the Contractor, but report directly to the Owner.  As Brian will discuss, the MMCD handles testing differently, with the Contract Administrator (or C.A. for short) receiving Q/A  test reports from the Contractor and reporting back to the Owner.

Under the MMCD, the Owner specifies tests to be done for its own reassurance that the work is meeting the contractually required standards.  These tests are part of the Contract requirements and the Contractor is obliged to perform them, or arrange for them to be performed during the course of the work. 

Coping With COVID-19 (2020)

(22m) Brian Weeks reviews options for owners and contractors during the COVID-19 pandemic, based on what is allowed under the MMCD standard language, and depending on the stage of the project: active tender, pre-award, or after construction has started.

Alternative Tenders (2021)

(15m) In this Contract Consideration, Brian Weeks discusses why the MMCD is very restrictive concerning alternatives proposed by bidders. He then explains what options an Owner has when they receive an attractive alternative from either the low bidder or another bidder.

Avoid Setting up Your Firm to Lose (2021)

(18m) This Contract Consideration is targeted to Contractors and promotes the MMCD training for Estimators, Superintendents and Foremen. Through numerous questions, Brian Weeks challenges viewers to evaluate their understanding of the MMCD General Conditions. He gives some examples of how good the payback on training can be.

Unbalanced Bids (2021)

(17m) In this Contract Consideration, Brian Weeks talks about Unbalanced Bids.

The members of the MMCDA have taken care in preparing these documents, but neither the members nor the MMCDA accepts any liability for any loss or damage which may be suffered by any person or corporation as a result of the use of the documents. These documents are made available without representation by the MMCDA or its members as to the appropriateness of their use in any particular situation and issued on the strict understanding that each user accepts full responsibility for their use.