Landscape Estimating and Contract Administration

by Angley, Stephen; Horsey, Edward; Roberts, David

Edition: 1st

ISBN13: 9780766825734

ISBN10: 0766825736

Format: Paperback

Pub. Date: 2001-12-13

Publisher(s): Cengage Learning

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Summary

"Landscape Estimating and Contract Administration" provides descriptions of various stages of a landscape project, from the feasibility study to the expiration of the guarantee period. This comprehensive guide to the landscape business presents an overall view of the process of completing a large landscape project, and helps foster an understanding of how the landscape industry works. Topics include how to create estimates, engaging in the bidding process, how to prepare contracts, how to prepare a budget, and how to utilize financial accounting.

Preface	p. x
Acknowledgments	p. xiii
Introduction	p. 1
An Overview of the Landscape Industry	p. 2
Purpose of This Chapter	p. 2
Definition of the Landscape Industry	p. 2
Participants in the Landscape Industry	p. 2
Small Residential Landscape Projects versus Large Industrial, Commercial, and Institutional Landscape Projects	p. 4
Stages in a Landscape Installation Project	p. 5
Distinction between Operations of Large and Small Landscape Contractors	p. 10
Principles of Management of Landscape Contractors' Operations	p. 11
Summary	p. 12
Chapter Review Questions	p. 12
Preparation of Contracts	p. 13
Basic Construction Law	p. 14
Purpose of This Chapter	p. 14
Sources of Law in the United States	p. 14
The U.S. Judicial System	p. 15
Important Common Law Obligations and Contract Formation	p. 16
How to Prepare a Contract	p. 19
Contracts Interpretation	p. 19
Oral Contracts	p. 20
Contract Termination	p. 21
Quantum Meruit	p. 21
Subcontracts	p. 22
Agency Agreements	p. 22
Privity of Contract	p. 22
Summary	p. 22
Chapter Review Questions	p. 23
The Bidding Process	p. 24
Purpose of This Chapter	p. 24
Preparation of Bid Documents for Projects in Which the Landscape Contractor Is a Subcontractor	p. 24
Offer and Acceptance Form of Contract	p. 25
Bid Documents and Project Manuals	p. 26
The Bidding, Selection, and Contracting Process for a Large Project	p. 31
Bids to the Owner Directly, with Bid Documents Prepared by a Landscape Architect or Designer	p. 32
Bids to the Owner Directly When No Landscape Architect or Designer Is Involved	p. 32
Summary	p. 33
Chapter Review Questions	p. 33
Standard Forms of Construction Contracts	p. 34
Purpose of This Chapter	p. 34
Sources of Standard Forms of Construction Contracts	p. 34
The AIA Standard Forms of Construction Contracts Generally	p. 35
Stipulated Sum Construction Contract (AIA Document A101-1997)	p. 36
Important Terms of the Agreement	p. 38
General Conditions (AIA Document A201-1997)	p. 39
Supplementary Conditions	p. 44
Specifications and Drawings	p. 44
Cost Plus a Fee Construction Contract (AIA Document A111-1997)	p. 44
Differences between the Cost Plus a Fee Contract and the Stipulated Sum Contract	p. 45
Abbreviated Forms of AIA Owner-Contractor Construction Contracts for Small Projects	p. 47
Comparison of AIA Standard Form Construction Contracts and Other Standard Form Construction Contracts	p. 48
Summary	p. 48
Chapter Review Questions	p. 49
Contracts for Landscape Design and Related Services	p. 50
Purpose of This Chapter	p. 50
Nature of Contracts for Landscape Design and Related Services	p. 50
Differences between Landscape Design Services Contracts for Landscape Architects and Designers	p. 51
Landscape Design Contract between the Landscape Architect and the Owner or Developer	p. 53
Important Provisions of the Owner-Architect Abbreviated Standard Form Agreement (AIA Document B151-1997)	p. 55
Subconsultancy Agreement between the Building Architect and Landscape Architect	p. 60
Medium-Sized Project Landscape Architect or Designer Design Services Contract	p. 63
Short Form Letter Agreement for the Provision of Design Services	p. 63
Clauses Omitted from the Letter Agreement in Appendix C and Figure 5-3	p. 63
Summary	p. 65
Chapter Review Questions	p. 66
Landscape Maintenance Contracts	p. 67
Purpose of This Chapter	p. 67
Nature of Landscape Maintenance Work	p. 67
Reasons for a Written Landscape Maintenance Contract	p. 67
Essentials of a Landscape Maintenance Contract	p. 68
Specific Matters to Be Considered	p. 68
Forms of Landscape Maintenance Contracts	p. 73
Summary	p. 73
Chapter Review Questions	p. 73
Landscape Installation Contracts	p. 74
Purpose of This Chapter	p. 74
Distinction between Contracts for Large and Small Landscape Projects	p. 74
Landscape Installation Contract Directly with the Owner or Developer for a Large Landscape Project	p. 75
Simple Forms of Landscape Installation Contracts	p. 79
Short Form of Letter Agreement	p. 80
Summary	p. 82
Chapter Review Questions	p. 82
Specifications	p. 84
Purpose of This Chapter	p. 84
Relationship of Specifications to Other Contract Documents	p. 84
Nature of Specifications	p. 84
Relationship between Drawings and Specifications	p. 85
Development of a Standard Form for the Organization of Specifications	p. 85
Form of the MasterFormat	p. 85
Specification Writing	p. 88
Specification Language	p. 88
Practical Experience	p. 89
Drafting of Specifications	p. 89
Open and Closed Specifications	p. 90
Use of Simple Specifications for Landscape Work	p. 90
Summary	p. 91
Chapter Review Questions	p. 91
Breaches of Contract and Remedies	p. 92
Purpose of This Chapter	p. 92
Breach of Contract Defined	p. 92
Common Breaches under Landscape Contracts	p. 92
Remedies for Breaches of Contract	p. 95
Summary	p. 99
Chapter Review Questions	p. 99
Estimating and Bidding	p. 101
Overview of the Estimating Process	p. 102
Purpose of This Chapter	p. 102
The Landscape Estimating Process	p. 102
Components of Costs and Profits of Landscape Contractors	p. 103
Cost Estimating: A Combination of Measurement, Calculation, and Exercise of Judgment	p. 105
Steps in Estimating a Job	p. 105
Bidding	p. 108
Further Use of Estimate by the Successful Bidder	p. 110
Use of Recorded Costs on Completion of a Job	p. 111
Summary	p. 111
Chapter Review Questions	p. 111
Preliminary Bidding and Estimating Considerations	p. 112
Purpose of This Chapter	p. 112
Sources of Information About New Projects	p. 112
Deciding Whether to Bid	p. 112
Bid and Job Schedule	p. 114
Background Information for Bidding	p. 114
Bid Information Sheet	p. 117
Hints for Making Estimating Costs and Bidding Easier	p. 117
Types of Landscape Installation Estimates	p. 121
Landscape Maintenance Estimating	p. 122
Summary	p. 124
Chapter Review Questions	p. 124
Estimating Labor Costs	p. 126
Purpose of This Chapter	p. 126
Importance of Labor Costs	p. 126
Task Breakdown	p. 127
Quantities	p. 127
Time Required for Tasks	p. 127
Hourly Labor Rate	p. 131
Crew Average Labor Rate	p. 132
Summary	p. 133
Chapter Review Questions	p. 133
Estimating Equipment Costs	p. 134
Purpose of This Chapter	p. 134
Recovery of Equipment Costs	p. 134
Distinction between Direct and Indirect Job Equipment Costs	p. 134
Rental Equipment Costs	p. 135
Company-Owned Equipment Job Costs	p. 135
Company-Owned Equipment Overhead Costs	p. 137
Calculating Costs of Other Equipment	p. 137
Checking Costs	p. 137
Cost of Used Equipment	p. 137
Renting versus Owning	p. 138
Leasing versus Buying	p. 138
Small Tools and Nonmotorized Equipment	p. 139
Importance of Calculation of Job Equipment Costs	p. 139
Summary	p. 139
Chapter Review Questions	p. 139
Estimating Materials and Subcontracting Costs	p. 141
Purpose of This Chapter	p. 141
Procedure for Estimating Materials and Subcontracting Costs	p. 141
Pricing Plant Materials	p. 141
Pricing Hard Landscape Materials	p. 142
Subcontracts	p. 143
Confirmation of Telephone Quotations	p. 144
Guarantees	p. 144
Mark-ups	p. 146
Summary	p. 146
Chapter Review Questions	p. 147
Overhead Expenses	p. 148
Purpose of This Chapter	p. 148
Nature of Overhead Expenses	p. 148
Direct Job Overhead Expenses	p. 148
Indirect, or General and Administrative, Overhead Expenses	p. 150
Allocation of General and Administrative Overhead Expenses	p. 150
Generally Accepted Method of Allocating Overhead	p. 155
Double-Dipping	p. 155
Summary	p. 156
Chapter Review Questions	p. 156
Recapitulation of Costs, Contingencies, and Profit	p. 157
Purpose of This Chapter	p. 157
Contingencies	p. 157
Profit	p. 158
Recapitulation Sheet	p. 159
Bidding and Negotiating the Contract Price	p. 160
Summary	p. 160
Chapter Review Questions	p. 161
Job Administration	p. 163
Scheduling	p. 164
Purpose of This Chapter	p. 164
Preliminary Schedule	p. 164
Final Schedule	p. 164
Forms of Schedules	p. 165
Ongoing Use of the Final Work Schedule	p. 169
Summary	p. 169
Chapter Review Questions	p. 169
Financial and Cost Accounting Processes	p. 170
Purpose of This Chapter	p. 170
Accounts and Financial Statements for Landscape Contractors	p. 170
Estimating and the Accounting Processes	p. 171
The Financial Accounting Process	p. 173
The Cost Accounting Process	p. 175
Summary	p. 180
Chapter Review Questions	p. 180
The Cash Flow Accounting Process	p. 181
Purpose of This Chapter	p. 181
The Importance of Predicting Cash Flow	p. 181
Preparing an Annual Cash Flow Statement	p. 182
Preparing a Job Cash Flow Statement	p. 183
Contract Payment Schedules	p. 185
Remedies for Projected Cash Flow Deficiencies	p. 186
Relationship of Cash Flow Accounting to Financial Accounting and Cost Accounting	p. 188
Summary	p. 189
Chapter Review Questions	p. 189
Mechanics' Liens	p. 190
Purpose of This Chapter	p. 190
Origins of Mechanics' Liens	p. 190
Creation and Termination of Mechanics' Liens	p. 191
Effectiveness of Filing a Mechanics' Lien Claim	p. 193
Mechanics' Lien Retainage	p. 193
Trust Provisions	p. 194
Enforcement of a Mechanics' Lien Claim	p. 194
Rights to Information	p. 194
Summary	p. 194
Chapter Review Questions	p. 195
Insurance and Bonding	p. 196
Purpose of This Chapter	p. 196
Contractual Nature of Insurance	p. 196
Financial Basis for Insurance	p. 196
Usual Obligations of Landscape Architects, Designers, Owners, and Contractors, to Insure	p. 198
Insurance Obligations Under Subcontracts	p. 200
Utmost Good Faith	p. 200
Insurable Interest	p. 200
Coinsurance	p. 200
Subrogation	p. 201
Insurance for Landscape Contractors	p. 201
Contractual Nature of Bonds	p. 202
Financial Basis for Bonds	p. 202
Types of Bonds	p. 203
Release of Bonding Company Obligations Resulting from Contract Amendments	p. 204
Summary	p. 204
Chapter Review Questions	p. 206
Management of Landscape Contracting Businesses and Preparation of the Business Plan	p. 207
Purpose of This Chapter	p. 207
Competition in the Landscape Contracting Industry	p. 207
Attributes of Good Managers	p. 208
The Business Plan	p. 209
Preparation of the Business Plan for a Landscape Contractor	p. 210
Concentration of Effort	p. 214
Further Help for Landscape Contractors	p. 215
Summary	p. 215
Chapter Review Questions	p. 215
Appendices	p. 217
Typical Instructions to Bidders	p. 218
Additional Comments on AIA Document 201-1997 (General Conditions of the Contract for Construction)	p. 223
Proposal for the Provision of Landscape Design and Related Services	p. 226
Landscape Maintenance Contract	p. 229
Short Form of Contracting for Grading and Landscaping	p. 230
Site Grading Specifications	p. 233
Short Form Masterformat Specification	p. 237
Mr. U.R. Owner Estimate Worksheets	p. 240
Weekly Job Cost Report	p. 254
Form of Preliminary Information Sheet for Project Bid	p. 256
Cash Flow Projection Statement	p. 259
Checklist for a Business Plan for a Small Landscape Contracting Business	p. 260
Suggested Further Reading	p. 263
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