Construction Definition of Terms

An allowance is a predetermined budget figure for known work that is not quantifiable at the time of bid.   The allowance amount is specific to that trade package and spelled out in the bid documents as a predetermined amount or percentage. Any of these funds not used, are diverted back to the district as a deductive change order. 

Builders risk insurance is a special type of property insurance which defines indemnities against damage to buildings while they are under construction. 

Typically, when a change in work scope is to be considered, the architect, in coordination with the construction manager will issue a proposal request to the contractor. After pricing the proposed change the contractor issues a Change Order back to the Architect/Construction Manager. If the cost of the proposed change is justified in the opinion of the architect/construction manager, it is submitted to the owner. If the owner finds the price acceptable, the change order is approved by the owner's authorized representative per the designated levels of authority document. 

A contingency is a percentage amount added to a project budget to allow for unknown items, unforeseen conditions, or events for which the state, occurrence, and/or effect are uncertain and that, in the contractor's experience, will likely result in additional costs. The percentage is determined by the type of project. Any of these funds not used, are diverted back to the district. 

Changes to the scope of work in any size construction project are common. Some changes are non-discretionary, and may include things such as clarifications from a permitting agency, or unforeseen conditions that were not known prior to the work being awarded. Other times, a change in work may not be required, but desired by the owner after reviewing particular circumstances. In either case the potential to disrupt the work schedule is very high if a decision on the proposed change is not processed in a timely manner. Due to the extremely short construction window for school districts, it is critical to remain on schedule to ensure that projects are completed and school opens on time in the fall. As such, the District has in place a Board Approved, Designated Levels of Authority document. This document states who is authorized to approve up to a certain dollar amount on each proposed change order from employees up to the Board of Education. 

General liability insurance covers common business risks for bodily injury, personal injury, and property damage caused by the business's operations, products, or injuries that occur on the property during construction. 

This covers the Construction Manager's on-site management, administrative personnel, equipment, utilities, temporary facilities, and incidental work to manage the project. Any of these funds not used, are diverted back to the district.

OAC meetings are held weekly between the owners, architect of record, and the construction manager. Topics discussed at a typical weekly OAC meeting include; old business, site safety, project schedule, project submittal review, change order log, Request for information (RFI) review and any potential open items and new business.   Representatives for the owner (BOE) will vary, but will typically include the Director of Facilities, Chief Operating Officer, and Director of Business Operations.  The Superintendent, Chief Technology Officer, Director of Safety & Security and others will attend based on need and anticipated topics.

In the initial planning stages of a project, the school works closely with its design team and construction manager to develop detailed drawings, schedules, budgets, and manpower projections before construction starts. This phase requires frequent communication between the core team and any additional project consultants. The pre-con team works to define the project scope, prepare cost estimates to meet the budget, identify potential construction issues and solutions, and ultimately determine the most efficient use of money and resources. A thorough and deliberate pre-construction process is extremely important to ensure the project goes as planned and all potential needs are identified and addressed. 

Unassigned Allowances are similar in nature to standard allowances but are NOT specific to any trade package.   These costs can be General Requirements to the project that would include work such as job site fencing, temporary floor protection, dust barriers, dumpster, temporary toilets, etc.  Any of these funds not used are diverted back to the district.