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3. Contract Administration
Pages 20-26

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From page 20...
... These practices include explicit consideration of risk allocation; partnering among owner, designers, and construction professionals; alternative dispute resolution; alternative contracting methods such as Design/Build and contracts including charges for closing roadways (commonly called "A+B" contracting) ; emphasis on quality, safety, and scheduling; and valueengineering change proposals.
From page 21...
... In May 2000, the MTA chairman assigned responsibility for claims and changes of over $250,000 to the MTA legal staff. In the committee's collective experience, it is the nature and culture of legal staff to favor litigation for resolution of issues- an approach that is not typical of the modern construction industry and not inclusive of the field people who have technical construction backgrounds and knowledge of the issues (TRB, ~ 998~.
From page 22...
... CONTINGENCY Contingency funds are now budgeted for claims and changes in three categories: construction contracts, management contingency, and MTA CEO contingency. The last two
From page 23...
... Contingency funds are not intended to be used for scone additions or other project 23 · , ~ ~ -r- ~ -- - r -- Jenhancements, which should be justified and funded through a separate budget process and receive approvals from top management or a policy board. The challenge for the CA/T project managers will be to use the contingency funds for their intended ouroose and at a level that is .
From page 24...
... MTA and the contractors should agree to a final settlement plan for dealing with other indirect costs as a condition for this earlier payment. Alternative dispute-resolution methods offer the opportunity to provide timely closeout of claims and to reduce their impact on the project and contractors alike.
From page 25...
... 25 Recommenciation 6: The MTA should initiate contingency-management procedures that include: a continual comprehensive risk analysis to quantify and refine contract contingencies, individual contract contingency tracking, and a contingency drawdown plan that includes contingency-use forecasts. Cost Recovery Finding 7: The current cost-recovery program emphasizes legal issues prior to resolution of engineering issues.
From page 26...
... 2002c. Construction Contract Administration Manual, updated August.


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