Module 7: MAKING THE SYSTEM WORK

Objectives: After completing this module, you will be able to:

• List problems, which may occur during construction.

• Name and discuss the means by which requirements may be enforced.

• List corrective measures that may be taken by the Government and the
authority for each.

A. Problem Categories: Problems encountered during construction vary

according to the specific project. Most problems, however, fit into one or
more of the following categories:

• Delays. There may be delays in submittals, in the correction of

deficiencies, or because of lack of contractor's acceptance of the CQC
principles.

• Planning and Control. Many problems can be caused by a lack of

planning and control and a failure to take corrective action in the
planning and control process.

• Testing. Improper, inadequate, or untimely testing can adversely

affect the project.

• Documentation. Problems occur because of late, incomplete, or

incorrect documentation. Making a written record of quality control
action and test results is as important as taking the actions. The CQM
reporting system may cause appropriate action to be taken, or may be
the basis of settlement of expensive claims at a future date, after
people directly involved are no longer available. If documentation is
inadequate, communications break down, and then the legal positions
of both the government and the contractor are jeopardized.

• Misunderstanding of CQC Responsibility. This problem is often the

result of a lack of review of the contract QC requirements, a lack of
familiarity with the QC Plan, or failure to communicate roles to other
personnel involved in the QC process. For example, completion

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 testing on all component systems, e.g. Duct Air Leakage Tests
(DALTS), Testing and Balancing Systems (TABS), HVAC Controls
System, electrical hi-pot tests. When possible, these
misunderstandings should be solved at the field level.

Personal one-on-one discussion and actions at the field level often provide
acceptable solutions to the problems. If discussions with onsite personnel
are not fruitful, the problem must be elevated to the next level. The
important thing is for the problem to be identified early so that it can be
prevented or corrective action can be taken. If an agreement cannot be
reached, the Government makes the final determination.

B. Government Options: Proper effective QC can prevent adverse

Government actions. However, if efforts at the field level do not bring the
desired result, the Government has no choice but to initiate action under the
Contract Clauses of the contract that provide the means for enforcing
contract compliance.

• Requiring contractor removal and replacement of deficient materials

and/or workmanship - Contract Clause, Inspection of Construction,
FAR 52.246-12.

- This contract clause allows the Government to require the

contractor to expose, test, and ultimately remove and replace
deficient work.

- If necessary the Government may employ another contractor to

make the corrections performed if he refuses to correct it
himself. If adversarial relationships develop, which could be
costly to the contractor, a copy of directive type letters to the
contractor should be furnished to the surety company.

• Withhold Payment - Contract Payment Clause.

- Grounds for withholding payment include the contractor's failure

to:

· Perform in accordance with the terms of the contract,

· Provide the Quality Control Plan giving assurance of his

intent and ability to comply with quality standards,

· Build to quality standards.

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 - While the Government is obligated to pay for satisfactorily
completed work, it has no obligation to pay a contractor for
deficient work.

• Requiring removal of unqualified personnel - Contract Clause, Material

and Workmanship, FAR 52.236-5. If contractor personnel are
deemed to be incompetent, careless, or otherwise objectionable, the
Government can require the removal of such personnel from the
project. However, under other provisions of the contract, if the
Government deems the QC staff to be too small, but not incompetent,
it may direct the addition of personnel.

• Requiring the contractor to assume personal supervision - Contract

Clause, Superintendence by the Contractor, FAR 52.236-6. If the
contractor does not provide an adequate superintendent, the contract
allows the Contracting Officer to require the contractor to assume
personal supervision of the work.

• Halting Work. Another Government option is halting work until

deficiencies are corrected.

- The Contracting Officer may direct the contractor to cease work

and any item or work feature pending satisfactory correction of
any deficiency in that work--particularly if the defective work is to
be become inaccessible if further work proceeds.

- If the contractor refuses to stop and correct the deficiency

immediately, a letter from the Contracting Officer may be issued,
directing the contractor to cease that particular operation.

• Issuing an unsatisfactory performance appraisal.

- If the contractor fails to correct serious deficiencies in his

performance, he may be cited as unsatisfactory at the conclusion
of the project.

- Interim unsatisfactory appraisals may be issued at any time

before construction is completed. This will afford the contractor
the opportunity to correct his deficient operations and avoid
issuance of a final unsatisfactory appraisal at contract closeout.

- Even a single unsatisfactory appraisal can have an effect on

future awards of Corps and NAVFAC contracts to that
contractor.

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 - Conversely, outstanding work by a contractor is reflected in
outstanding performance appraisals, safety awards, and public
recognition.

• Terminate the Contract - Contract Clause, Default (Fixed-Price

Construction) FAR 52.249-10. The most drastic type of action is to
terminate the contract. In most cases, termination for default is not in
the best interest of the Government. Termination action is taken only
after all else fails.

C. Making the "System" Work: The QC Manager must act quickly and
confidently when problems are discovered. He cannot sit back and hope
that problems will correct themselves. His job is to control construction
quality by taking action to make certain that problems are corrected and
prevented. The Government is serious about CQC and will hold the
contractor responsible for contract compliance.

D. Quality Assurance Personnel: Quality Assurance personnel will use the

ASSESSMENT WORKSHEET FOR CONTRACTOR QUALITY CONTROL
PROGRAM, to evaluate the contractor's CQC system. The results of this
assessment can be used to provide a final performance rating to the
contractor at the end of the project. (NAVFAC contracts only! For sample of
form see NAVFAC P-445.)

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 EXERCISE

Module 7

1. Name the categories of problems that normally occur during construction.

2. What options are available to the Government under the Contract Clauses
of the contract?

3. Analyze the cases on the following pages and answer the questions
included with each. Be prepared to discuss your answers with other
members of the class.

a. Contractor is constructing a commissary. The contract was

awarded in April, which allowed for sufficient time to enclose the
building before onset of cold weather. Building is scheduled to be
complete in May of next year, which necessitates doing the inside
finish work during winter months. The client/customer has scheduled
delivery of equipment and stock for June. Work was progressing
satisfactorily and the contractor was about to start roofing operations
in mid-September when the resident engineer discovered the
contractor was installing untreated lumber for edge strips, curbing,

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etc., which was in violation of the specifications. Work was stopped,
and after some investigation, contractor advised the resident engineer
that the best delivery on treated lumber was eight weeks, which would
delay enclosing the building and ultimately delay turnover to the
client/customer. The contractor requested waiver of treated lumber
requirement.

(1) Where did the contractor's control system break down?

(2) Where did the Government assurance system break down?

(3) What are the resident engineer's courses of action?

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b. Contract involves construction of a major barracks complex including
25 dormitories. Project is 75% complete and occupied by troops when
the client/customer complains that the opaque panel in the lower
window section is allowing precipitation to penetrate during driving
rain. The leaks have stained carpet and ceiling tile. Investigation
reveals that leaking panels are improperly glazed and do not conform
with the contract drawings and specifications. All windows had been
factory glazed and were warehoused onsite. Although a vinyl strip
covered the glazing, careful examination of the windows prior to, and
after, installation would have revealed the construction deficiency.

(1) Identify the steps within the CQC system that failed, thereby
creating the construction deficiency.

(2) Identify the steps within the Government's QA system that

failed to detect the breakdown in the contractor's QC system.

(3) Keeping in mind that there are 4,200 windows involved in the
contract, what corrective measure should the resident engineer
employ?

(4) What action should be taken on remaining buildings not

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 completed?

(5) Assume, because of the magnitude of the problem, that the

contractor and window manufacturer refuse to comply with your
directive; what tools in the contract does the resident engineer
resort to?

c. Contract is for a large barracks complex involving 47 buildings. There

are 1,500 fan coil units to be installed throughout the project. As the
fan coil units were delivered to the site, the mechanical subcontractor
discovered that the units contained 1/2" valve in lieu of a 3/4" as
indicated on the contract drawings. Contractor's shop drawings also
indicated a 3/4" valve. Contractor immediately advised the resident
engineer of the discrepancy. The contractor further advised that the
supplier's standard unit is furnished with a 1/2" valve and requested
permission to use units as delivered. All units were delivered in one
large shipment, and some were needed for immediate installation.

(1) Was the subcontractor quality control system working?

(2) Where does the supplier fit into the problem?

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 (3) What measures should Government QA personnel now
employ?

(4) In this instance, should the resident engineer investigate

possible design error in specifying a 3/4" valve?

d. Project includes several masonry buildings requiring joint

reinforcement. Contractor proceeded with sample masonry panel
erection without approved materials despite Government QA
personnel objection. Contractor has now completed wall erection on
one building and Government QA personnel discover the contractor is
using wrong joint reinforcement. Contractor superintendent states bar
joists will be erected tomorrow morning.

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 (1) What questions first come to mind as to the effectiveness of the
contractor's quality control system?

(2) Where did the Government's quality assurance role first break
down?

(3) What Contract Clauses should be employed by the resident

engineer at this point in time?

e. Project is a small flood control dam with reinforced concrete outlet

structure. Contractor testing requirements are specified in detail, and
require full-time quality control personnel at concrete batch plant.
Concrete production has commenced, and after one week concrete
cylinder breaks indicate extremely low compressive strength. It is
immediately discovered that the plant measuring devices had not
been calibrated.

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(1) What is the government's first corrective action to be taken?

(2) What apparent deficiency existed in the contractor's quality

control system?

(3) Basically, where did the Government quality assurance role

fail?

(4) What Contract Clauses must now be employed by the

Government?

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f. On an underground electrical distribution project, the contractor was to
install a run of 2/0 cable in the system. The project had been
completed and accepted two years ago, when it was discovered that
this run of cable was #2 instead of 2/0 and totally inadequate for the
future load.

(1) What corrective measure, if any, is available to the Government

to have the deficient cable replaced?

(2) Should the contractor's quality control system and

Government's assurance system prevent isolated instances of
this type? How?

g. The contract for construction of the outlet works at a flood control and
recreation reservoir required steel gates. The prime contractor to a
fabricator in Los Angeles subcontracted the gates. All CQC
requirements on the gates were delegated to the fabricator. The
resident engineer arranged for Government periodic QA visits to the
plant. The plant inspector advised the resident engineer that the
welding procedures and the welders had not been certified prior to
commencement of fabrication. The QC contained no entry on this
subject.

(1) In this instance, what role does the prime contractor assume?

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 (2) Where did the prime contractor fail in the quality control
system?

(3) Where did the Government's QA role break down?

(4) What steps does the Government take now?

h. The contract was for construction of multipurpose classrooms at the

Air Force Academy. The rooms were to receive carpet that had been
color-coordinated with the room furnishings. Carpet was scheduled
for delivery August 1, which allowed only 3 weeks for laying and
completion of project prior to start of classes. Carpet was delivered
August 1, and it was immediately discovered that the carpet did not
adequately match the approved sample.

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 (1) Could the CQC system have prevented this? How?

(2) Did the Government fail in its QA role by not inquiring as to the
status of carpet manufacture?

(3) What steps should the Government take now?

i. Contractor on a major multi-building project started his first concrete

placement this morning. Contractor is placing a monolithic foundation
using a leased concrete pump truck. Two-thirds of the foundation had
been placed when the concrete pump failed. No standby placement
equipment was available as required by the contract, which created a
cold joint before the pump could be repaired.

(1) What was the first step that failed in the contractor's QC
program?

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 (2) How could the Government's QA role have prevented this
incident?

(3) Would proper QC reports alerts to a failure of this type in the

system?

(4) What corrective measures should the Government employ to

prevent further incidents of this type?

j. An airfield project involved placement of a concrete apron for

helicopters. The specifications required the use of jet fuel-resistant
joint sealant. The sealant was required to be Government tested and
approved prior to use. The specifications further required that the
joints be sealed immediately after the curing period. Contractor
started placement of concrete when it was discovered that the sealant
had not been submitted for testing.

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(1) In what meeting should the testing requirements of the contract
be discussed in general?

(2) At what phase should this specific testing have been

discussed?

(3) Within the Government's QA role, where should we have

detected this deficiency?

(4) What corrective measures does the resident engineer use

now?

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 NOTES
CONSTRUCTION QUALITY MANAGEMENT
FOR CONTRACTORS

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 NOTES
CONSTRUCTION QUALITY MANAGEMENT
FOR CONTRACTORS

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