The owner's representative is now withholding a current pay request for $300,000, requesting the general contractor correct what he feels are deficiencies. Can he do this? Should the general contractor keep proceeding? Should the GC force the subcontractors to fix the problems? Do subcontractors care about client satisfaction? How will this be resolved? What could the GC have done to keep this

Fundamentals Of Construction Estimating
4th Edition
ISBN:9781337399395
Author:Pratt, David J.
Publisher:Pratt, David J.
Chapter13: Pricing Subcontractors' Work
Section: Chapter Questions
Problem 6RQ
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Question # 13, Case 3: Bid-design-build
This general contractor has been awarded a two-story speculative office building
project on a lump sum bid basis. The mechanical, electrical, and plumbing (MEP)
systems, including the heating, ventilation, and air conditioning (HVAC) and fire
protection systems, were also bid on a lump sum but design-build basis, with very
little criteria information available for them to base their bids on. The
subcontractors were responsible for preparing their own documents and having
them stamped by a state-licensed engineer and obtain their own permits. The
general contractor did not submit these documents to the owner for approval, as it
was not specified that they had to do so. The MEP systems subcontractors have
routinely received city inspections and approvals for work in place. As the project
nears completion, the owner and his architect have just walked the project, and
they have discovered that several areas of the design-build MEP subcontractors
work are not up to their expectations. This includes:
HVAC: The ceiling is being used as a return air plenum. This is much less
expensive than utilizing a ducted return air system. It is also noisier, less
efficient, dirtier, and requires plenum-rated electrical cabling
Plumbing: The bathroom plumbing fixtures appear to be more residential
than commercial-grade. They are less expensive, but they do meet code.
- Electrical: The light fixtures that are being installed are 2×4' prismatic
versus more energy-efficient, more expensive, and more attractive deep cell
parabolic.
- Fire protection: The fire protection sprinkler heads have not been installed
center of ceiling tile, and are not lined up in the large open office areas and
hallways.
- MEP controls: The HVAC systems have been ganged under very large
control zones such that there are only two thermostats per floor. Even the
conference rooms, break rooms, and corner offices are not on separate
The owner's representative is now withholding a current pay request for $300,000
requesting the general contractor correct what he feels are deficiencies. Can he do
this? Should the general contractor keep proceeding? Should the GC force the
subcontractors to fix the problems? Do subcontractors care about client
satisfaction? How will this be resolved? What could the GC have done to keep this
Transcribed Image Text:Question # 13, Case 3: Bid-design-build This general contractor has been awarded a two-story speculative office building project on a lump sum bid basis. The mechanical, electrical, and plumbing (MEP) systems, including the heating, ventilation, and air conditioning (HVAC) and fire protection systems, were also bid on a lump sum but design-build basis, with very little criteria information available for them to base their bids on. The subcontractors were responsible for preparing their own documents and having them stamped by a state-licensed engineer and obtain their own permits. The general contractor did not submit these documents to the owner for approval, as it was not specified that they had to do so. The MEP systems subcontractors have routinely received city inspections and approvals for work in place. As the project nears completion, the owner and his architect have just walked the project, and they have discovered that several areas of the design-build MEP subcontractors work are not up to their expectations. This includes: HVAC: The ceiling is being used as a return air plenum. This is much less expensive than utilizing a ducted return air system. It is also noisier, less efficient, dirtier, and requires plenum-rated electrical cabling Plumbing: The bathroom plumbing fixtures appear to be more residential than commercial-grade. They are less expensive, but they do meet code. - Electrical: The light fixtures that are being installed are 2×4' prismatic versus more energy-efficient, more expensive, and more attractive deep cell parabolic. - Fire protection: The fire protection sprinkler heads have not been installed center of ceiling tile, and are not lined up in the large open office areas and hallways. - MEP controls: The HVAC systems have been ganged under very large control zones such that there are only two thermostats per floor. Even the conference rooms, break rooms, and corner offices are not on separate The owner's representative is now withholding a current pay request for $300,000 requesting the general contractor correct what he feels are deficiencies. Can he do this? Should the general contractor keep proceeding? Should the GC force the subcontractors to fix the problems? Do subcontractors care about client satisfaction? How will this be resolved? What could the GC have done to keep this
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