Change Order Process Module 2015 Contract and Change

Change Order Process Module 2015 - Contract and Change Order Submittal Document Review Image Area 1 1

HOUSE RULES 1. Please mute your phone, do not use the hold button. Simply lay the receiver down if you need to step away. 2. If you need to ask a question, use the chat option on the Web. Ex menu. 3. Please avoid asking questions about a specific project. If you have questions of that nature, we will address those offline. 2

OVERVIEW Requirements & Instructions ▪ ▪ Reasons behind Change Order Management Download most current forms at bid time for specific requirements and procedures Change Request Documentation & Process ▪ ▪ ▪ ▪ Paint the Picture CR Workbook CR Summary GC and Sub Summaries Labor Rate Workbook Equipment Rates Unforeseen Conditions Form 3 Contract Document Review ▪ ▪ ▪ Be familiar with the contract documents hierarchy Key Contract Articles & Exhibits Contract Rights, Remedies and Resolutions Unit Costs Schedule – Specification Section 01320 Backup Documentation ▪ ▪ Material Quotes Drawings, Calculations and Photos Schedule Other

REQUIREMENTS AND INSTRUCTIONS 4

Reasons behind Change Order Management EDLC Change order management helps solidify Every Day Low Cost to our customers! Contract & Scope Validation Estimating department assists the Design and Construction teams in Contract adherence and scope validation Decision Making Sarbanes-Oxley Act 5 Transparency to decision making. Closing the loop to future spend and helping to improve decision making We have a fiduciary obligation to comply with the Sarbanes–Oxley Act of 2002 and insure that all decisions and opinions made are verifiable and reproducible

Download Bid Documents – Store Bidding System Bid Documents to be downloaded and reviewed. 6

CONTRACT DOCUMENT REVIEW 7

CONTRACT DOCUMENT HIERARCHY – ARTICLE 1. 1. 8 WRITTEN CM DIRECTIVE CONST. BULLETIN CONTRACT SPECIAL CONDITIONS SPECIFICATIONS DRAWINGS *In the event of a discrepancy reference 1. 2. 4 8

Key Contract Articles & Exhibits 9 Bid Form ▪ Bid Form is not part of the Contract CR Time Frame Article 4. 2 ▪ ▪ ▪ (GC) (WMT) CR Issues Addressed ▪ ▪ ▪ OH&P fee clarification - Exhibit 4. 1 Required CR Attachments - Exhibit 4. 1 CR Example - Exhibit 4. 1 Failure to comply with CR timeline - Article 4 ATP clarification / intent - Article 4. 2. 2. 2 Weather delays clarified - Article 5. 4 Excused Delays 7 days: 30 days: 20 days: 14 days: 20 days: Trigger to PCR to ATP PCR to CR submittal CR review / evaluate / submit GC revise and resubmit WMT review and finalize

CONTRACT RIGHTS, REMEDIES AND RESOLUTIONS Article 8. 1. 2 Walmart or Contractor has the “Right to Remedy” at any time and can enforce observance of the Contract as such remedies as it may have for any breach or breaches of such terms or conditions in the execution of the Contract. Claim In the event an agreement cannot be reached on a particular change request, a claim can be submitted and reviewed outside of the Online Change Request format. Reference Section 8. 3 of the contract documents. 10

UNIT COSTS 1. 1. 14 ALTERNATES AND UNIT PRICES: The Work to be performed by Contractor includes, and the Contract Sum includes complete compensation for, the alternates identified on Exhibit 1. 1. 14 hereto, as such alternates are described elsewhere in the Contract Documents. Also identified on Exhibit 1. 1. 14 are Unit Prices that apply to changes in the Work if specifically so directed in a written Change Order signed by Walmart. 11

UNIT COSTS SPECIAL CONDITIONS: 17. UNIT COST A. At close of project the general contractor and construction manager will review additional or deleted power drops within each power drop zone, defined by power plans, to verify any additional charges or credits that apply due to changes. For each additional power drop within a zone the following schedule A or B will apply accordingly as a charge. For each deleted power drop within a zone the following schedule A or B will apply accordingly as a credit. Paint is included in the per drop pricing for schedule A and B. 1. Schedule A for adding or deleting a power drop within a zone that does not require a home run back to the panel: 20 AMP ‐ $600 per drop 30 AMP ‐ $700 per drop 50 AMP ‐ $800 per drop 2. Schedule B for adding or deleting a power drop within a zone that does require a home run drop back to the panel: 20 AMP ‐ $700 per drop 30 AMP ‐ $800 per drop 50 AMP ‐ $900 per drop 12

SCHEDULE – SPECIFICATION SECTION 01320 Best Practices and Contractual Obligations: • Establish baseline schedule within 10 days of award and submit to WM Admin and as a $0. 00 CR. • Update schedule weekly • Update immediately if delays occur with recovery schedule • Send weekly schedule updates to WM Construction Manager Items to include at a minimum : • Contractual Milestones • Adequate number of tasks to represent actual course of construction, which includes links. • Meet with Mechanical CM to establish delivery dates for key items, i. e. rack houses, RTU’s • Anticipated dates for major utility installations, i. e. power, gas, etc. • If delays occur represent those delays 13

CHANGE REQUEST DOCUMENTATION & PROCESS 14

PAINT THE PICTURE Best Practices For a Successful Change Request Submittal: • VALIDITY – is the proposed change part of the base scope of work or was it an add? Was it reasonable discoverable at time of bid? Was it directed in writing? • TRIGGERING EVENT – If valid what was the triggering event: CCD, SCD, RFI response, Unforeseen Condition or Walmart directed change? • BID DAY PRICING – Every change request submittal should have bid day pricing not service or premium pricing • NO ABSTRACT ART SUBMITTALS - Gather and submit clear information so that anyone can read and understand the change request without prior project knowledge • ENSURE DETAILED TYPE ART SUBMITTALS – provide adequate detail so that the change request stands alone and is understood 15

CR WORKBOOK § Issued at Bid-time § Submitted in Excel format Mixed Crew Hourly Labor Rate Workbook § Must be filled out at the time of CR submission § Contain all project information § Have a CR number § Illustrate the points of contact 16 Change Request Submittals D Ca raw in lc Ph ulati gs, Sc oto ons he s & , du les

CR WORKBOOK – PROJECT INFORMATION TAB Project & Change Request Information • File Format Saving Feature • SAP Number & Description (Auto) • Store & Sequence Number • Location City/State • Contact Information ü General Contractor ü Construction Manager ü AOR ü CEC • Project Dates ü Out to Bid ü Bid Date ü Contract Start ü Construction Start ü Contract Completion ü Possession • Project Dates ü CR # & Version # ü Date Submitted ü CCD/SCD/RFI & Date issued ü ATP Limit ü Description of Request 17

CR WORKBOOK – CR SUMMARY, GC & SUB SUMMARIES § In Excel format § GC gets 10% OH & P on overall CR only. § Subcontractors get 10% OH & P markup on adds and 3% OH & P credit is given back for negative amounts § § Both Summaries must be itemized Supported with backup 18 Mixed Crew Hourly Labor Rate Workbook Change Request Submittals D Ca raw lcu ing Ph lati s, Sc oto ons he s & , du les

CR WORKBOOK – CR SUMMARY TAB 19

CR WORKBOOK – GC & SUB SUMMARY TAB E L P M A X E 20

CR WORKBOOK – GC & SUB SUMMARY HOW TO 21

CR WORKBOOK – APPROVED LABOR RATE TAB Complete in Excel submit in PDF 22

MIXED CREW HOURLY LABOR RATE WORKBOOK § Issued at Bid-time § Workbook in Excel format § Must be filled out completely § § Mixed Crew Hourly Labor Rate Workbook Acceptance is made by the Walmart Construction Manager Needed for CR submission 23 Change Request Submittals D Ca raw in lc Ph ulati gs, Sc oto ons he s & , du les

MIXED CREW HOURLY LABOR RATE WORKBOOK – BEST PRACTICES ▪ ▪ ▪ Procedures & Requirements ▪ ▪ ▪ 24 Refer to instructions provided under Exhibit 4. 1 GC submits labor rates to CM prior to first CR submittal Approved labor rates are placed in “Approved Labor Rate Tab” and submitted with each CR. GC to submit additional backup to substantiate labor rate if requested OT must be authorized by the Walmart Construction Manager in writing prior to execution of the work Vacation, small tools, travel, uniforms, holiday pay, bonus pay, sick pay, bereavement pay, per diem, cell phones, OH&P shall not be included in base rate, and these benefits are part of base bid scope, allowed only if project contract completion date is extended by Walmart

MIXED CREW HOURLY LABOR RATE SHEET Backed up fringe benefits that are paid by employer. This is the take-home rate for the employee Fixed Burdens. FICA remain unchanged. 25

MIXED CREW HOURLY LABOR RATE – UNION LABOR AGREEMENT E L P M A X E 26

MIXED CREW HOURLY LABOR RATE – FRINGE BENEFITS E L P M A X E 27

MIXED CREW HOURLY LABOR RATE – WORKER’S COMPENSATION E L P M A X E 28

MIXED CREW HOURLY LABOR RATE – STATE UNEMPLOYMENT TAX E L P M A X E 29

CR WORKBOOK – EQUIPMENT RATE BACKUP • Owned Equipment Rates are per Blue Book Equipment Watch. The • • • 30 year, make and model and features and input along with a location modifier for the location in which the work is taking place. Accepted equipment rate is the FHWA Rate shown document Rented Equipment is per the rental agreement. See the Change Order Instructions for more details.

UNFORESEEN CONDITION FORM • Unforeseen Condition (site or building): Something not “Reasonably Unforeseen” at time of bid and that needs to be tracked in a T&M format. This report identifies the daily resources used to remedy an unforeseen condition. All actual costs in this unforeseen condition or Time and Materials form must be substantiated with regards to material cost, labor cost, and equipment cost. All unit rates or costs agreed to in the Authorization to Proceed letter must be adhered to. This report rolls up to the Subcontractor’s Work Summary and must be attached as an Excel document, in the format in which it was provided. Form found in Exhibit 4. 1 of the contract documents. • • • 31

BACKUP DOCUMENTATION 32

BACKUP DOCUMENTATION § Must pertain to the scope of work in the Change Request § Material quotes on third party letterhead § Illustrate the materials by Division § § Mixed Crew Hourly Labor Rate Workbook Should be fair market value Required for CR Submission 33 Change Request Submittals D Ca raw lcu ing Ph lati s, Sc oto ons he s & , du les

BACKUP DOCUMENTATION – MATERIAL QUOTE EXAMPLE Large Tree Buried 34

BACKUP DOCUMENTATION – DRAWINGS, CALCULATIONS & PHOTOS § Shows the areas affected by the changed vs the base bid SOW § Calculations must be clear and understandable § Photos, Plans and Redline drawings should help orient and tell the phases of work § Photos have a date stamp § Schedule(s) ID trigger event and or plan 35 Mixed Crew Hourly Labor Rate Workbook Change Request Submittals D Ca raw in lc Ph ulati gs, Sc oto ons he s & , du les

BACKUP DOCUMENTATION – DRAWINGS EXAMPLE Large Tree Buried 36

BACKUP DOCUMENTATION – PHOTO EXAMPLE 37

BACKUP DOCUMENTATION – DRAWINGS & PHOTO EXAMPLE Large Tree Buried 38

BACKUP DOCUMENTATION – BASELINE & RECOVERY SCHEDULES Best Practices : • Submit baseline schedule complete with milestones listed • Submit recovery schedule complete with impacts identified, i. e. CCD, weather, extended conditions, etc. 39

BACKUP DOCUMENTATION – OTHER • • Consultant Reports (CCD Narratives, RFI’s, Etc. ) CTL Reports AHJ (Authority Having Jurisdiction) Reports Superintendent Daily Reports Calculations (Length x Width x Depth) in common measure, i. e. square foot, cubic yards, tons, etc. Additional information that will define and/or clarify the change Truck tickets Unforeseen Condition Forms 40

CR SUBMITTAL Triggering Event 41 PCR & ATP Stage CR Submittal

BEST PRACTICE – DO’S ü Understand Contract requirements and Change Request process ü Verify and validate triggering event Do’S… ü Email notification – GC submit, CM respond timely ü Issue timely ATP ü Manage GC for timely submittal throughout CR cycle ü Pass through Change Requests without review Ensure CR Workbook & Backup is attached to all CRs üü Submit incomplete Change Requests ü Ensure CR Workbook is filled out and paints the picture for the change ü Document final CO decision making in EVOCO for future reference ü Ensure Original schedule was submitted as part of Contract Requirements ü Follow CM Change Order Process Role checklist 42

BEST PRACTICE – DON’T’S ü Pass through Change Requests without review Don’t’s… ü Submit incomplete Change Requests ü Pass through Change Requests without review ü Exceed ATP without written approval ü Submit incomplete Change Requests ü Proceed with work without written ATP ü Forget that we are all in this together 43

WMT GC WORKING TOGETHER 44 COMMUNICATE: A. Timely Submission = 30 day from PCR to submit a CR B. Document Properly = Faster Review & Approval C. Better Communication = Faster Approval & Pay REVIEW: A. Diligence = Be diligent in CR preparation B. Validate costs and backup documents C. Active Participation = Road Shows & Training Opportunities TRAINING: A. Provide Training opportunities for GC B. Clearly Identify requirements of CR submittals C. Partner with GCs to ensure faster CR approval WHAT CAN WE DO FOR YOU: A. Are the Current Processes working? B. What are the areas that are most difficult to understand? C. What can we do to facilitate faster CR approval?

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Questions? 46

Thank you. 47