HomeMy WebLinkAboutExhibit 3ATTACHMENT A
POLICY AND PROCEDURES MANUAL
CM shall provide the City, and the A/E with copies of a Policy and Procedure Manual (total
number of copies not to exceed three (3) developed and updated in accordance with the
following requirements:
A, Upon execution of the Agreement, CM shall develop a draft of the
comprehensive Policy and Procedure Manual describing the services to be
provided by CM per the Agreement. This shall provide a plan for the control,
direction, coordination and evaluation of the Work performed throughout the
Project; the Project organization including identification of key personnel,
responsibilities of CM, including Sub -Consultants and Sub -Contractors, City and
A/E; Work flow diagrams; and strategy for bidding and subcontracting the Work.
City shall have the right to review the Policy and Procedure Manual and to
recommend revisions to its content and format. The Policy and Procedure
Manual may be updated as necessary throughout the Design and Construction
Phases, but substantive changes will not be made without City's prior written
concurrence. Three (3) copies of the Policy and Procedure Manual and any
updates shall be submitted to the City and A/E. In developing the Policy and
Procedure Manual, CM shall coordinate and consult with the City and the A/E.
The initial manual shall be submitted to City for concurrence.
B. Contents of Policy and Procedure Manual: The Policy and Procedure Manual
shall describe in detail the procedures for executing the Work and the
organizations participating. The Policy and Procedure Manual shall include, as a
minimum, the following sections:
• Project Definition: The known characteristics of the Project shall be described
in general terms which will provide the participants a basic understanding of
the Project and subprojects.
• Project Goals: The schedule, budget, physical, technical and other objectives
for the Project shall be defined.
• Project Strategy: A narrative description of the Project delivery methods
which shall be utilized to accomplish the Project goals.
• Project Work Plan: A matrix display of the Work to be performed by the CM,
as well as the services and items to be furnished by the A/E and City during
each phase of the Project.
• Project Organization: A summary organization chart showing the inter-
relationships between the City, CM and A/E, and other supporting
organizations and permitting review agencies. Detailed charts, one each for
Construction Contractor and Design Professional, showing organizational
elements participating in the Project shall be included.
• Responsibility Performance Chart: A detailed matrix showing the specific
responsibilities and interrelationships of the City, NE, and CM. The
Responsibility Performance Chart shall indicate major responsibility, and
minor responsibility, for each specific task required to deliver the Project. CM
shall develop a similar chart for the personnel within its own organization who
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are assigned to the Project, as well as for A/E's and City's personnel
assigned to the Project from data supplied by them.
• Flow Diagrams: These charts shall display the flow of information and the
decision process for the review and approval of shop drawings and
submittals, progress, and change orders,
• Written Procedure: The CM will provide written procedures for
communications and coordination required between the CM, NE and the City
throughout the Project. Procedures shall cover such items as
correspondence, minutes, reports, inspections, team meetings, technical
reviews, design reviews, and other necessary communications.
• Emergency Contact List: A complete list of the names, company affiliation
and emergency contact phone numbers (both day and night) for all key
Project personnel from City, the CM and the . A/E, as well as from all
subcontractors, subA/Es and suppliers of any of them. This list shall be
continuously updated by CM throughout the Project duration, with CM
distributing a copy of all updates to the City and AIE.
3. This Policy and Procedure Manual shall be completed and submitted to the A/E
and the City for their review and concurrence as a condition precedent to
payment by City to CM for any services provided in the Construction Phase
under this Agreement
4. This Policy and Procedure Manual is merely an amplification and clarification of
this Agreement. Any conflicts between the Policy and Procedure Manual and
this Agreement shall be governed by the latter.
CM shall provide the following Project Management Information System ("PMIS"), in a format
acceptable to the City, which system shall be in place for the Construction Phase services.
1. General:
• Commencing immediately after the Notice to Proceed is issued to CM by
City, CM shall implement and shall utilize throughout the life of this
Agreement all subsystems of the PMIS.
• The reports, documents, and data to be provided shall represent an accurate
assessment of the current status of the Project and of the Work remaining to
be accomplished and it shall provide a sound basis for identifying variances
and problems and for making management decisions.
• If requested by City, CM shall conduct a comprehensive workshop for
participants designated by City and additional seminars as required by City to
provide instruction with respect to the PMIS. This workshop and the seminars
shall facilitate the City's representatives' use and understanding of the PMIS.
• The PMIS shall be described in terms of the following major subsystems:
• Narrative Reporting;
• Schedule Control;
• Cost Control and Estimating;
• Project Accounting;
• Accounting and Payment; and
• Action Reports.
• The above reports shall be submitted at least on a monthly basis and
shall accompany each monthly Application for Payment.
2. Narrative Reporting Subsystem.
• CM shall prepare written reports as described hereunder. All reports shall be
in 8 112" x 11" format.
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• The Narrative Reporting Subsystem shall include the following reports:
• Monthly Executive Summary which provides an overview of current
issues and pending decisions, future developments and expected
achievements, and any problems or delays, including code violations
found by any permitting authority.
• Monthly Cost Narrative describing the current construction cost estimate
status of the Project.
• A Monthly Scheduling Narrative summarizing the current status of the
overall Master Project Schedule and an explanation of all variances from
the plan. This report shall include an analysis of the various Project sub -
schedules, a description of the critical path, and other analyses as
necessary to compare planned performance with actual performance.
• Monthly Accounting Narrative describing the current cost and payment
status for the entire Project. This report shall relate current encumbrances
and expenditures to the budget allocations. An explanation for all
variances shall be provided.
• A Monthly Construction Progress Report during the Construction Phase
summarizing the Work of the various subcontractors. This report shall
include information from the weekly job site meetings as applicable such
as general conditions, long lead supplies, current deliveries, safety and
labor relations, programs, permits, construction problems and
recommendations, and plans for the succeeding month.
• Daily Construction Diary during the Construction Phase describing
events and conditions on the site.
• The Reports outlined in above shall be bound with applicable computer
schedule reports and submitted monthly during Design and Construction
Phases and shall be current through the end of the preceding month. Copies
shall be delivered to the City and A/E. A bound copy of the complete diary
shall be submitted to City at the conclusion of the Project.
3, Schedule Control Subsystem.
• Master Proiect Schedule: Prior to the submittal of its first application for
payment, CM shall submit to the City and NE for their review and approval a
Master Project Schedule covering the planning and design approvals,
construction, and City occupancy of the Project. This schedule shall conform
to the format outlined below. This schedule shall serve as the framework for
the subsequent development of all detailed schedules and shall be updated
with each Application for Payment by CM throughout the Project. Within
fifteen (15) calendar days of CM's submittal, the City and NE shall review the
schedule and provide CM a written list of corrections needed to accept the
schedule. CM must make all corrections and resolve all comments within
thirty (30) calendar days after its receipt of the City's and Design A/E's
comments. If the schedule is not accepted within said thirty (30) calendar
days, the City and A/E will withhold all payments due the CM until the
schedule is accepted. The acceptance of the schedule by City and A/E in no
way attests to the validity of the assumptions, logic constraints, dependency
relationships, resource allocations, manpower and equipment, and any other
aspect of the proposed schedule. CM is and shall remain solely responsible
for the planning and execution of all Work in order to meet Project milestones
or Contract completion dates.
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• Construction Schedule: Upon acceptance of the GMP, CM shall prepare and
submit to City and A/E, for their review and approval, a Construction
Schedule. This schedule shall conform to the format outlined below. The
approved Construction Schedule shall be attached and incorporated into the
GMP Amendment. The Construction Schedule shall be integrated into the
Master Project Schedule.
• Following development and approval of the Construction Schedule, CM
shall, at the completion of each pre -construction design phase and with
each application for payment during the construction phase, or at such
earlier intervals as circumstances may require, update and/or revise the
Construction Schedule which shall be submitted to the City and the A/E in
duplicate. No additional compensation will be due CM for making such
updates. Failure of CM to update, revise, and submit the Construction
Schedule as aforesaid shall be sufficient grounds for City to find CM in
substantial default hereunder and that sufficient cause exists to terminate
the Agreement or to withhold payment to CM until a schedule or schedule
update acceptable to City is submitted.
• CM shall prepare and incorporate into the schedule database, at the
required intervals, the following schedules:
• Sub -Contractor Construction Schedules (Subnetworks): Upon the award
of each subcontract, CM shall jointly with the subcontractor, develop a
schedule which is more detailed than the pre -bid schedule included in the
bid packages, taking into account the Work schedule of the other
subcontractors, The subcontractor's construction schedule shall include
as many activities as necessary to make the schedule an effective tool for
construction planning and for monitoring the performance of the
subcontractor. The subcontractor's construction schedule also shall show
pertinent activities for material purchase orders, manpower supply, shop
drawing schedules and material delivery schedules.
• Occupancy Schedule: CM shall jointly develop with A/E and City a
detailed plan, inclusive of punch lists, final inspections, maintenance
training and turn -over procedures, to be used for ensuring
accomplishment of a smooth and phased transition from construction to
City occupancy. The Occupancy Schedule shall be produced and
updated monthly from its inception through final City occupancy and shall
be integrated into the Master Project Schedule.
• Schedule Format: The Master Project Schedule and the Construction
Schedule shall be planned and recorded with a Critical Path Method (CPM)
schedule in the form of an activity -on -node diagram. All activity -on -node
diagrams shall include the Activity Identification, Activity Description, and the
type of relationship between activities, including any lead or lag time, as well
as being cost loaded. Further, both the Master Project Schedule and the
Construction Schedule shall incorporate and be based upon any Project
milestone dates set forth in the Agreement.
• No activity shall have a duration greater than fifteen (15) work days or
less than one (1) work day. if requested by the City A/E, CM shall furnish
any information needed to justify the reasonableness of activity duration.
Such information shall include, but not be limited to, estimated activity
manpower, anticipated quantities, and production rates.
• Procurement shall be identified with at least two (2) activities: fabrication
and delivery. CM shall insure that all Work activities that require a
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submittal are preceded by the appropriate submittal and approval
activities.
• Only contractual constraints shall be shown in the schedule logic. No
other restraints are allowed unless approved in writing by the City or A/E.
This disallowance of constraints includes the use of any mandatory start
or finish dates selected by CM.
• Activities shall be identified by codes to reflect the responsible party for
the accomplishment of each activity (only one party per activity), the
PhaselStage of the Project for each activity, and the Area/Location of
each activity
• The construction time for the Work, or any milestone, shall not exceed the
specified Contract Time. Logic or activity durations shall be revised in the
event that any milestone or Agreement completion date is exceeded in
the schedule.
• Float is defined as the amount of time between when an activity "can
start" (the early start) and when an activity "must start" (the late start). It is
understood by the City and CM that float is a shared commodity, not for
the exclusive use or financial benefit of either party. Either party has the
full use of the float until it is depleted.
• The CPM schedules must be compatible with Microsoft Project. It is CM's
responsibility to ascertain the software compatibility with the City.
• Initial Schedule Submittal Requirements:
/ Predecessor/Successor Sort
/ Total Float/Early Start Sort
/ Responsibility/Early Start Sort
/ Area/Early Start Sort
/ Logic Diagram: Produce diagram with not more than 100 activities
per ANSI D (24-inch x 36-inch) size sheet. Insure each sheet
includes title, match data or diagram correlation, and key to
identify all components used in the diagram.
/ Narrative discussing general approach to completion of the Work.
✓ Diskette in Primavera (P3) format.
• Schedule Update Requirements: CM shall update the schedules as
required by the Agreement to show actual, current progress. The
schedule updates shall be submitted within seven (7) calendar days of
the data dates. The updates shall include:
✓ Dates of activities' actual starts and completions.
/ Percent of Work remaining for activities started but not completed
as of the update date.
/ Narrative report including a listing of monthly progress, the
activities that define the critical path and any changes to the path
of critical activities from the previous update, sources of delay, any
potential problems, requested logic changes, and Work planned
for the next month.
✓ Predecessor/Successor Sort
✓ Total Float/Early Start Sort
✓ Responsibility/Early Start Sort
✓ Area/Early Start Sort
✓ Diskette in the required Primavera format
✓ Fragnet of logic diagram for all requested logic changes.
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✓ Updated logic diagram as required by the City. At a minimum, the
City shall require a final logic diagram at the end of the Work
showing the planned and actual starts and completions.
✓ A bar chart comparison of the updated schedule to the initial
schedule. This diagram shall show actual and planned
performance dates for all completed activities.
✓ All update information shall be an accurate representation of the
actual Work progress.
• Recovery Schedule: If the initial schedule or any current updates fail to reflect
the Work's actual plan or method of operation, or a contractual milestone
date is more than fifteen (15) days behind, City may require that a recovery
schedule for completion of the remaining Work be submitted. The Recovery
Schedule must be submitted within seven (7) calendar days of City's request.
The Recovery Schedule shall describe in detail CM's plan to complete the
remaining Work by the required Contract milestone date. The Recovery
Schedule submitted shall meet the same requirements as the original
Construction Schedule. The narrative submitted with the Recovery Schedule
should describe in detail all changes that have been made to meet the
Project milestone dates.
• Change Orders: When a Change Order is proposed, CM must identify all
logic changes as a result of the Change Order. CM shall include, as part of
each Change Order proposal, a sketch showing all schedule logic revisions,
duration changes, and the relationships to other activities in the approved
Construction Schedule. This sketch shall be known as the fragnet for the
change. Upon acceptance of the fragnet, CM will revise the Construction
Schedule or current update. The logic changes required by the Change Order
will be considered incidental to CM's Work. No separate payment will be
made.
4. Cost Control Subsystem: The operation of this subsystem shall provide sufficient
timely cost data and detail to permit CM to control and adjust the Project requirements,
needs, materials, equipment and systems by building and site elements so that the Work
will be completed at a cost which, together with the Construction Management Fee, will
not exceed the GMP. Requirements of this subsystem include submissions at the
following phases of the Project:
• 4.1 Pre -Construction Phase Estimates; and
• 4.2 At establishment of the GMP.
5. Proiect Accounting Subsystem: This subsystem shall enable CM to plan effectively
and City to monitor and control the funds available for the Project, cash flow, costs,
Change Orders, Construction Change Directives, payments, and other major financial
factors by comparison of budget, estimate, total commitment, amounts invoiced, and
amounts payable, and also enable City to stay informed as to the overall Project status.
This subsystem will be produced and updated monthly and includes the following
reports:
• Costs Status Report representing the budget, estimate, and base
commitment (awarded subcontracts and purchase orders) for any given
subcontract or budget line item. it shall show approved Change Orders and
Construction Change Directive for each subcontract which when added to the
base commitment will become the total commitment. Pending Change Orders
also will be shown to produce the total estimated probable cost to complete
the Work.
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• A Payment Status Report showing the value in place (both current and
cumulative), the amount invoiced (both current and cumulative), and the
balance remaining. A summary of this report shall accompany each pay
request.
• A Detailed Status Report showing the complete activity history of each item in
the Project accounting structure and includes an earned value graph. It shall
include the budget, estimate, and base commitment figures for each
subcontract. It shall give the Change Order history, including Change Order
numbers, description, proposed and approved dollar amounts. It also shall
show all pending or rejected Change Orders.
• A Cash Flow Diagram showing the projected accumulation of cash payments
against the Project. Cash flow projections shall be generated for anticipated
monthly payments as well as cumulative payments.
• A Job Ledger shall be maintained as necessary to supplement the operation
of the Project accounting subsystem. The job ledger will be used to provide
construction cost accountability for general conditions work, on -site
reimbursable expenses, and costs requiring accounting needs.
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