Construction Management

Environmental Improvement Fund

The Municipality's Role

The municipality has the ultimate responsibility for getting its project constructed properly. Municipal officials should:

1. Interview several architectural/engineering (A/E) firms to obtain professional services that are critical for a successful project. A representative from the A/E firm should be on-site during construction to provide supervision, answer questions, take measurements and verify that the project was completed per specifications.

2. Attend and participate in the pre-construction conference, which involves making decisions on how each segment of the project will proceed, communications are handled, change orders are processed, progress payments are made, etc.

3. Maintain contact with the A/E firm's on-site project manager. Interaction could involve review of field notes, verbal and/or written progress briefings, and site visits.

4. Maintain contact with the department's construction management engineer (CME) during the course of the project, particularly if an area of concern develops.

5. Assure proper and accurate cost accounting, invoicing, wage records, project schedules, etc. Verify that the municipality and the A/E firm agree on these items. See financial management

6. Review and approve any proposed change orders. The authorized representative should conduct the review in conjunction with the A/E's project manager and the CME.

7. Attend site inspections conducted by the CME. While all inspections are important, the most critical is the final inspection. Based on the final inspection, the municipality is expected to agree that:
   • the finished project is acceptable;
     
   • the project was constructed according to the plans and specifications;
     
   • the completed project is capable of functioning as intended; and
     
   • the system meets permit requirements.

The Department's Role

The department's role in construction management includes conducting interim and final inspections. The CME must determine whether construction is proceeding according to approved plans and specifications and the terms of the Financial Assistance Agreement. The Environmental Improvement Fund (EIF) must also make sure all financial transactions are legal, appropriate, and consistent with the terms of the Financial Assistance Agreement.

To accomplish the department's role, the CME or area engineer will typically do the following:

1. Attend the pre-construction conference and conduct a site inspection, if possible, before construction begins.

2. Conduct interim construction inspections, which may include the following actions:
   • determine if construction field notes and schedules are being kept;

   • determine if the project is being built according to the plans and specifications approved by the department;

   • determine if equipment and materials are procured in a timely manner, properly stored for future project use, and that payment is made only for such equipment and materials.

   • compare field notes with contract requirements and loan budget periods, and remind the municipality of any necessary contract time extensions or budget period revisions that may be necessary;

   • review contractor, architectural engineer, and municipal pay requests to ascertain validity of reimbursement requests and compliance with applicable rules and regulations;

   • review the municipality's records regarding cost accounting, invoices, wage records, project schedules, and minority and women business enterprise utilization;

   • review engineer's daily logs to see if they are up-to-date and thorough;

   • determine whether shop drawings and pay estimates are promptly processed, as-built drawings are being developed, claims and change orders are properly managed, and test records are accurate and complete.

3. Review change orders to determine whether they are eligible for funding from the EIF. The CME keeps the EIF project manager informed of all change order approvals.

4. Conduct final inspection to assure the project is complete and assist as needed with final actions necessary to close out the project (see closeouts).

In addition to the CME's involvement during construction, the EIF project manager and the payment specialist may review requests for disbursement to make sure all costs are properly invoiced, eligible and within the project budget (see payment requests).

For further information, contact the CME or Dan Olson.