Handbook of Construction Management and Organization

1 Basics of Contracting.- 1-1 Characteristics of Contractors.- 1-2 Changing Conditions.- 1-3 Problem with Some Owner's Engineers.- 1-4 Basic Knowledge Required.- 1-5 Branches of Construction-Heavy.- 1-6 Dam and Canal Construction.- 1-7 Hydro Projects.- 1-8 Highways and Railroad.- 1-9 Underground Construction.- 1-10 Bridge Construction.- 1-11 Waterfront Construction.- 1-12 Dredging.- 1-13 Airports.- 1-14 Pipelines and Pumping Stations.- 1-15 Water Supply and Sewerage.- 1-16 Power Projects.- 1-17 Military Work.- 1-18 Construction in Battle Zones.- 1-19 Power Transmission.- 1-20 Building Construction.- 1-21 High-Rise Construction.- 1-22 Industrial Buildings.- 1-23 Commercial Developments.- 1-24 Recreational Developments.- 1-25 Public Buildings.- 1-26 Residential Construction.- 1-27 Summary of Requirements.- 2 Management Functions, Problems, And Types Of Organization.- 2-1 Sales Functions.- 2-2 Contract Negotiation.- 2-3 Bidding Practices.- 2-4 Liaison with Owners and Their Representatives.- 2-5 Construction Financing.- 2-6 Accounting.- 2-7 Effects of Job Size.- 2-8 Job Supervision.- 2-9 Records and Reports.- 2-10 Labor Relations.- 2-11 Types of Contractor Organizations.- 3 Building An Organization.- 3-1 Personal Selection of Key Organization.- 3-2 Nucleus of Administrative Organization.- 3-3 Advantage of Training and Advancing Key Personnel.- 3-4 Preparing the Administrative Manual.- 3-5 Adding to the Manual-Labor Relations and Safety.- 3-6 Specification for Employment Manager.- 3-7 Specification for Tax Expert and Controller.- 3-8 Purchasing and Equipment Management Functions.- 3-9 Director of Procurement-Liaison Between Operations and Purchasing.- 3-10 Chief Engineer as a Key Operating Officer.- 3-11 The Engineering Manual-Skeleton Organization.- 3-12 Key Operating People in a Vertical or Functional Organization.- 3-13 Dangers of Expanding in Unfamiliar Fields.- 3-14 Expansion by Acquisition-Becoming a Horizontal or Delegated Organization.- 3-15 Formation of Districts.- 3-16 Development of Overseas Cost-Pius Organization.- 3-17 Updating Field Management at Home.- 3-18 Military Programs Abroad.- 3-19 Civil Contracts Abroad-Developing Skills of Locals.- 3-20 Feeding and Housing Abroad.- 3-21 Special Situations with Local Personnel Abroad.- 3-22 Personal Problems in Combat Zones.- 3-23 The Changing Foreign Picture.- 3-24 The Changing Domestic Picture.- 3-25 Environmental and Political Impacts in the U.S.A..- 4 Bid Strategy.- 4-1 Basic Considerations in Bidding.- 4-2 When to Bid.- 4-3 Influence of the Owner's Engineer.- 4-4 Influence of Competition.- 4-5 Over caution.- 4-6 Influence of Experience.- 4-7 Influence of Propaganda.- 4-8 Contract Modifications.- 4-9 Unbalanced Bids.- 4-10 Contingency Allowances.- 4-11 Construction in Others Countries.- 4-12 Playing Percentages.- 5 Construction Contracts.- 5-1 The Form of Construction Contracts.- 5-2 Oral vs. Written Contracts.- 5-3 Private vs. Public Contracts.- 5-4 Competitive Bidding Requirements.- 5-5 Extra Work, Changes, and Changed Conditions.- 5-6 Fixed-Price Contracts.- 5-7 Unforeseen Difficulties, Differing Site Conditions Clause.- 5-8 Cost-Pius Contracts.- 5-9 Subcontracts.- 6 Arranging for Financing.- 6-1 Initial organization of a Construction Company.- 6-2 Approach to the Bank.- 6-3 Importance of Bank Credit.- 6-4 Individual Project Financing.- 6-5 Locations of Banks.- 6-6 Interest Rates.- 6-7 How to Keep Good Bank Relationship.- 6-8 Equipment Financing.- 6-9 Financing Other Than Banks.- 6-10 Public Ownership of Stock.- 6-11 Joint-Venture Financing.- 6-12 Financing Subcontractors.- 6-13 Financing Foreign Operations.- 7 Construction Financing.- 7-1 Hazards of Construction Financing.- 7-2 Reasons Why Banks Extend Construction Financing.- 7-3 Steps a Bank Can Take to Lessen the Risk Factor.- 7-4 Understanding a Contractor's Motivation.- 7-5 Intricacies of a Construction Contract.- 7-6 Contractors' Financial Statements Vary Widely.- 7-7 Contractor's Honesty Must Be Emphasized.- 7-8 What Constitutes a Current Asset on a Contractor's Statement?.- 7-9 Contractor's Business Can Rarely Repay Loans by Conversion of Balance Sheet Assets.- 7-10 Banker Must Have Detailed Knowledge of Cost System.- 7-11 Steps Taken to Regulate Financial In-formation to Lenders.- 7-12 Completed Contract Accounting vs. Percentage-of-Completion Methods.- 7-13 Supplementary Schedules, Cash Budget, and Equipment Projections.- 7-14 Equipment Financing.- 7-15 Bid Deposit Loans.- 7-16 The Matter of Bonding.- 7-17 Owner's "Interim" Loans and "Permanent" Financing.- 7-18 Bank's Sensitivity to Supply and Demand of Money in the Economy.- 7-19 Construction Loans in Foreign Countries 81.- 8 Surety Bonds.- 8-1 How Surety Bonds Differ from Insurance.- 8-2 Purposes of Surety Bonds.- 8-3 Underwriters.- 8-4 Reason for Contractor Failures.- 8-5 Contractor-Underwriter Relations.- 8-6 Surety Bond Forms.- 8-7 Qualifying for Bond.- 8-8 Accounting and Financial Records.- 8-9 Net Quick Worth.- 8-10 Indemnity.- 8-11 Financial Aid from Sureties.- 8-12 Basis for Bond Credit.- 8-13 Bonding of Subcontractors.- 8-14 Bonding of Joint Ventures.- 8-15 Selection of a Bonding Company.- 8-16 Selection of Agents or Brokers.- 8-17 Rules for Successful Contracting.- 9 Equipment Maintenance and Repair.- 9-1 Lubrication.- 9-2 Fueling.- 9-3 Inspection and Adjustments.- 9-4 Preventive Repair.- 9-5 Systems Analysis.- 9-6 Time and Cost Records.- 9-7 Organization for Field Maintenance.- 9-8 Equipment Manager Responsibilities.- 9-9 Lubrication and Fueling Personnel.- 9-10 Inspection Personnel.- 9-11 Contributing Personnel.- 9-12 Field Maintenance Equipment.- 9-13 Systems Analysis and Testing Equipment.- 9-14 Maintenance Reference Material.- 9-15 Preventive Maintenance Programs.- 9-16 Plan I-Planned Preventive Maintenance Packet.- 9-17 Plan II-The Tag and Chart Program.- 9-18 Plan III-The On-Board Computer by Bissett-Berman.- 9-19 Plan IV-Total Computer Control System; Equipment Failure and Repair Data Retrieval System.- 9-20 Machine Owner.- 9-21 Maintenance Contracts.- 9-22 Remedial Repair.- 9-23 Component Overhauled.- 9-24 Component Exchange.- 9-25 Machine Overhauled.- 9-26 Service Facilities.- 9-27 On-Site- Service Facilities.- 9-28 Machine Owner's Permanent Service Facility.- 9-29 Contacting Job-Site Suppliers.- 9-30 Parts and Supplies Inventory.- 9-31 Safety.- 9-32 Service Shop Management.- 9-33 Shop and Field Service Personnel.- 9-34 Other Service Personnel.- 9-35 Field Service Vehicles.- 9-36 Service Shop Equipment.- 9-37 Service Source and Costs.- 9-38 Machine Owner's Service Shop.- 9-39 Calculating Hourly Cost of Owner -Performed Service.- 9-40 Independent Service Shop.- 9-41 Equipment Dealer Service Shop.- 9-42 Calculating Service Costs Performed by Equipment Dealer.- 9-43 Parts Inventory Cost.- 9-44 Efforts to Shorten Service Time.- 9-45 Total Maintenance Contracts.- 9-46 Total Cost Contract.- 9-47 Guaranteed Machine Availability.- 9-48 Critical Item Monitoring.- 10 Methods of Deciding Overhaul or Replacement.- 10-1 Equipment Management.- 10-2 Determining Equipment Owning and Operating Costs.- 10-3 Annual Net Loss in Machine Value.- 10-4 Investments, insurance, and Taxes.- 10-5 Maintenance and Report Costs.- 10-6 Other Operating Costs.- 10-7 Other Cost categories.- 10-8 Using Cost Data for Equipment Replacement Decisions.- 10-9 Selecting Construction Equipment.- 11 Charges for Use of Equipment.- 11-1 Charges Affecting Ownership Costs.- 11-2 Equipment Records.- 11-3 Lease or Buy?.- 11-4 Types of Leases.- 11-5 Terms and Conditions of Leases.- 11-6 Internal Charges for Equipment Usage.- 11-7 Associated General Contractor's Ownership Expense.- 11-8 External Charges for Equipment Usage.- 11 -9 Plant Equipment.- 11-10 Transferring Equipment Between Jobs.- 11-11 Operating Costs vs. Overhauls-Determining Replacement.- 11-12 Disposition of Equipment.- 11-13 Trade to Dealers.- 11-14 Sale to Third Parties.- 11-15 Auction Sales.- 11-16 Auction Preparation and Planning.- 12 Purchasing, Expediting, Traffic, and Transportation 178.- 12-1 Coordination with Management.- 12-2 Coordination with Engineering.- 12-3 Coordination with Estimating Group.- 12-4 Coordination with Operating Departments.- 12-5 Purchasing Responsibilities and Procedures for Overseas Operations.- 12-6 Organization.- 12-7 Field or Job Purchasing Organization.- 12-8 Personnel.- 12- 9 Purchasing Function.- 13- 10 Purchase Requisitions.- 12-11 Source Selection.- 12-12 Soliciting Quotations.- 12-13 Written Bid Procedures.- 12-14 Telephone or Verbal Bid Procedures.- 12-15 Addenda to Requests for Proposal.- 12-16 Quotations for Contractor's Bidding Program.- 12-17 Evaluation of Quotations.- 12-18 Award and Issuance of Purchase Orders.- 12-19 Expediting.- 12-20 Status Reports.- 12-21 Verifying Shipments.- 12-22 Traffic and Transportation.- 12-23 Equipment Inventory and Availability.- 12-24 Other Functions.- 13 Functions and Organization of Contractor's Engineering Section.- 13-1 Basic Purpose of Engineering Section.- 13-2 Levels of Engineering Functions.- 13-3 Contractor's General Engineering Organization.- 13-4 Functions and Duties of the Contractor's Engineering Staff.- 13-5 Market Surveys of Prospective Work Being Offered.- 13-6 Reporting Bid Results to Company Officers.- 13-7 Planning, Scheduling, and Programming Construction Operations.- 13-8 Estimating the Cost of Prospective Work and Preparing Bid Proposals.- 13-9 Arranging for Bid Guarantees.- 13-10 Preconstruction Liaison with Joint-Venture Partners.- 13-11 Soliciting, Receiving, Tabulating, and Analyzing Material Prices and Subcontract Proposals.- 13-12 Reviewing Permanent Materials and Subcontract Proposals.- 13-13 Drafting Technical and Special Conditions of Subcontracts.- 13-14 Making Cost and Method Studies of Alternative Methods of Construction.- 13-15 Preparing Budget Control Estimates for Jobs Awarded.- 13-16 Detailed Design of Construction Plant Facilities.- 13-17 Developing New and Better Methods of Construction.- 13-18 Maintenance of Contractual Relations.- 13-19 Supervising and Performing Engineering Layout in the Field.- 13-20 References and Specifications for Construction Machinery and Permanent Materials.- 13-21 Advise About Requisitioning, Scheduling, Expediting, and Inventorying Permanent Materials.- 13-22 Records of Work Performed and Contractual Transactions.- 13-23 Preparing or Checking Payment Estimates for Work Performed.- 13-24 Job Inspection and Quality Control.- 13-25 Records of Costs and Extra Work.- 13-26 Records of Subcontract Performance and Payment Estimates.- 13-27 Accumulating Performance and Production Data.- 13-28 Cost Coding Charges for Cost Accounting.- 13-29 Reports of Costs and Construction Activities.- 13-30 Daily Reports.- 13-31 Weekly Reports.- 13-32 Monthly Reports.- 13-33 Final Project Reports.- 13-34 Contract Adjustments, Change Orders, and Claims.- 13-35 Assisting in Contract Settlements.- 13-36 Special Assignments.- 13-37 Annual Review and Reports to Management.- 13-38 Other Engineering Functions.- 13-39 Employment, Training, and Reassignment of Engineering Personnel.- 13-40 Suggested Project Engineering Organization (Large Company Concept).- 13-41 Index of Engineering Responsibilities.- 13-42 Procedures for Cost-Pius and Special Types of Contracts.- 13-43 Assembly of Brochures and Special Information.- 13-44 Evaluation of Contract Documents.- 14 Cost Estimating for Lump-Sum and Unit-Price Contracts.- 14-1 Organization for Estimating Department.- 14-2 Estimating Manual.- 14-3 Building vs. Heavy Construction Estimating.- 14-4 Historical Cost Background for Estimating.- 14-5 Initial Considerations in Planning an Estimate.- 14-6 Site Visits and Investigations.- 14-7 Compiling Basic Data for a Specific Estimate.- 14-8 Labor Rates, Fringe Benefits, and Working Conditions.- 14-9 Social Benefit Payroll Taxes and Insurance.- 14-10 Taxes Other Than Payroll.- 14-11 Insurance Other Than Payroll.- 14-12 Quotations for Expendable Construction Materials and Supplies.- 14-13 Quotations for Permanent Materials and Installed Items of Equipment.- 14-14 Subcontract Quotations and Conditions.- 14-15 Listing Available Company-Owned Plant and Equipment.- 14-16 Schedule of Approved Plant and Equipment Rental Rates or Amortization.- 14-17 Abstract of Local Laws Affecting Cost of Work.- 14-18 Preliminary and Refined Construction Programs.- 14-19 Principal Divisions of Estimated Costs.- 14-20 Direct Costs.- 14-21 Indirect Costs.- 14-22 Hourly Equipment Operating Costs.- 14-23 Summary of Equipment and Move-In Cost.- 14-24 Selection of Construction Methods and Procedures.- 14-25 Preliminary Design of Construction Facilities.- 14-26 Detailing Direct Construction Costs.- 14-27 Detailing and Distribution of General Expense and Overhead Costs.- 14-28 Consideration of Contingencies.- 14-29 Determination and Application of Mark- Up.- 14-30 Completion of Estimate Summary and Bid Prices.- 14-31 Special Considerations in Estimating Foreign Projects.- 14-32 Special Formats of Estimates for Specific Kinds of Construction Work.- 14-33 Typical Building Estimate-Short Format.- 15 Estimating Other than Firm-Price Contracts.- 15-1 Cost-Plus-a-Percentage-Fee Contracts.- 15-2 Cost-Plus-a-Fixed-Fee Contracts.- 15-3 Cost-Plus-an-Award-Fee Contracts.- 15-4 Cost Plus a Fee with Guaranteed Maximum.- 15-5 Target Estimate with Penalty and Incentive-Fee Contracts.- 15-6 Turnkey Proposals and Contract Conditions.- 15-7 Construction Management Contracts.- 16 Cost Controls, Relation, and Coordination With Engineering and Accounting.- 16-1 Prebid Estimating and Bidding.- 16-2 Preparing the Record to Start a New Job.- 16-3 Selection of Accounting System.- 16-4 Accumulation of Physical and Other Data on the Job.- 16-5 Applying the Cost Coding in the Field.- 16-6 Maintaining the Cost Accounts.- 16-7 Computing or Verifying Earnings Under the Contract.- 16-8 Preparing Interim and Final Cost Reports.- 16-9 Systems of Assigning Cost Account Codes.- 16-10 Basic Arrangement of Coordination.- 17 Networking Techniques for Project Planning, Scheduling, and Control.- 17-1 Historical Background.- 17-2 Network Diagramming.- 17-3 Arrow Diagramming.- 17-4 Precedence Diagramming.- 17-5 Comparison of Arrow and Precedence Diagramming.- 17-6 Diagramming Trends.- 17-7 Scheduling Calculations.- 17-8 Forward Pass Calculations.- 17-9 Backward Pass Calculations.- 17-10 Total Float and Critical Path Calculations.- 17-11 Free Float and Interfering Float Calculations.- 17-12 Calendar Dating.- 17-13 PERT Probabilistic Approach.- 17-14 Communication and Control.- 17-15 Updating.- 17-16 Subnetworks.- 17-17 Terminal Interfaces.- 17-18 Intermediate Interfaces.- 17-19 Dateline Cutoff Method.- 17-20 Computer Applications.- 17-21 Master Schedule.- 17-22 Subschedule or Responsibility Schedules.- 17-23 Bar Chart By Computer.- 17-24 Resource Schedules.- 17-25 Monitor Report.- 17-26 Progress Estimates-Cash Flow.- 17-27 Other Reports by Computer.- 17-28 Computer Program Evaluation.- 17-29 Resource Allocation-Single-Project Leveling.- 17-30 Multi-Project Leveling.- 17-31 Evaluation of Resource Allocation Procedures.- 17-32 Time-Cost Trade-offs.- 17-33 The Problem and Objectives.- 17-34 Procedures.- 17-35 Combined Resource Allocation and Time-Cost Trade-offs.- 17-36 Contractor-Owner Relationships-Specification Requirements.- 17-37 Claims.- 17-38 Implementation.- References.- 18 Use of Computers In Contractor's Engineering Organization.- 18-1 Advantages of Computers.- 18-2 Alternative Computer Services Available.- 18-3 Computer Languages.- 18-4 Computer Programs.- 18-5 Sequences in Computer Application.- 18-6 Alternative Sources for Development of Computer Programs.- 18-7 Contractor-Developed System.- 18-8 Personnel Requirements.- 18-9 Problems to be Anticipated.- 18-10 Program for Adoption of the Computer.- 18-11 Updating Historical Cost Information for Reference Purposes.- 18-12 Time-Consuming and Lengthy Computations.- 18-13 Computer Assistance in the Choice of Alternatives.- 18-14 Storage of Historical Experience Data.- 18-15 Performance of Clerical Functions.- 18-16 Analyzing Performance of Off-Highway Trucking.- 18-17 Other Practical Computer Uses.- 19 Computer Capabilities in Construction Management.- 19-1 Project Cycle.- 19-2 Data Processing Applications in Estimating.- 19-3 Quantity Takeoff.- 19-4 Detail Takeoff.- 19-5 Pricing.- 19-6 Printing.- 19-7 Evaluation of Changes and Alternatives.- 19-8 Responsibilities of Planning and Scheduling.- 19-9 Planning for Budget and Schedule Preparation.- 19-10 Simulation of Alternatives.- 19-11 Updating and Revision of Project Schedules.- 19-12 Job-Site Reporting.- 19-13 Exception Reporting.- 19-14 Cost Control System.- 19-15 Labor Cost Performance Records.- 19-16 Equipment Costs.- 19-17 Equipment Records.- 19-18 material Costs.- 19-19 Subcontractos Costs.- 19-20 Overhead Costs.- 19-21 Concepts of the Project Control Operating System.- 19-22 Development of Data Communication.- 20 Office Administration: Headquarters and Field.- 20-1 Headquarters vs. District and Project Administration.- 20-2 Field Administration.- 20-3 Functions of a Job Administrative Manager.- 20-4 Establishing a Chart of Accounts.- 20-5 Accounting Reports to the Home Office.- 20-6 Other Functions of Field Administration.- 20-7 Field Administration in Joint Venture Contracts.- 20-8 Headquarters Administrative Function.- 20-9 Administrative Services at District Level.- 20-10 Accounting as a Headquarters Staff Function.- 20-11 Gathering Data for Financial Reports for Top Management.- 20-12 Corporate Accounting Records.- 20-13 Emphasis on Job Results.- 20-14 Prequalification and Other Reports.- 20-15 Comptroller Support to Field and District Personnel.- 20-16 Internal and External Audit Services.- 20-17 Reports to the Securities Exchange Commission.- 20-18 Relations with Banks and Financial Institutions.- 20-19 Headquarters Office Purchasing.- 20-20 Tax Record Department.- 20-21 Equipment Department.- 20-22 Data Processing Department.- 20-23 Warehousing Records.- 21 Corporate and Cost Accounting.- 21-1 Financial Statements.- 21-2 Accounting Method Applicable to Long-Term Contracts.- 21-3 Other Factors.- 21-4 Illustrative Financial Statements.- 21-5 Accounting Systems and Procedures.- 21-6 Headquarters Office.- 21-7 Project Office Accounting-Contract Cost Accounting.- 21-8 Internal Auditing-Control Procedures.- 21-9 Accounting for Equipment Costs.- 21-10 Evaluating Cost Trends and Cost of Future Work.- 21-11 Utilization of Computer Techniques.- 21-12 Conclusion.- 22 Payroll Procedures.- 22-1 Payroll System.- 22-2 Timekeeping.- 22-3 Accumulation of Payroll Costs.- 22-4 Use of Electronic Data Processing (EDP).- 22-5 Payment of Salaries and Wages.- 22-6 Preparation of the Payroll.- 22-7 Cumulative Records and Type of Payment.- 22-8 Withheld Amounts and Employer Contributions.- 22-9 Company Expense and Allocation of Overhead.- 22-10 Methods of Computing Payroll and Labor Distribution.- 22-11 Payroll Journal, Earnings Statement, and Employees' Earnings Record.- 22-12 The Manual System.- 22-13 Mechanized Payroll Preparation.- 22-14 Methods of Applying Data Processing to Payroll Preparation.- 22-15 Use of a Bank Computer System.- 23 Employment Practices and Records.- 23-1 Employee Classification.- 23-2 Responsibility for Employment Functions.- 23-3 Resources for Manpower Planning.- 23-4 Applicant File.- 23-5 Skills Inventory for Present Staff.- 23-6 Availability Lists.- 23-7 A Typical Project Scene.- 23-8 Schedule of Job Classifications and Salary Ranges.- 23-9 Recruitment.- 23-10 Prejob Trades Conference.- 23-11 Employment Procedures Manual.- 23-12 Personnel Practices During Construction.- 23-13 Employment Records.- 23-14 Hiring Exempt and Nonexempt Employees.- 23-15 Hiring Union Craftsmen.- 23-16 Demobilization of Project.- 23-17 Personnel Development.- 23-18 Equal Employment Opportunity (EEO).- 23-19 Foreign Project Aspects.- 24 Labor Relations and Their Effect on Employment Procedures.- 24-1 Uniqueness of Construction Labor Relations.- 24-2 Collective Bargaining Methods.- 24-3 Independent Action.- 24-4 Affiliated Action.- 24-5 National Agreements.- 24-6 Combination of Methods.- 24-7 Influence of Inflation on Labor Negotiations.- 24-8 Strike vs. Lockout.- 24-9 Hiring Halls.- 24-10 Turnover Policy.- 24-11 Absenteeism.- 24-12 Selectivity in Hiring.- 24-13 Training Personnel.- 24-14 Looking Ahead.- 24-15 Labor Laws.- 25 Safety Procedures and Practices.- 25-1 Safety Benefits the Employer.- 25-2 Insured vs. Uninsured Costs.- 25-3 Workmen's Compensation Laws.- 25-4 Amount of Benefits.- 25-5 Methods of Complying with the Law.- 25-6 Labor Turnover.- 25-7 Safety Benefits the Employee.- 25-8 Safety Benefits the Customer.- 25-9 Safety and Employer-Employee Relations.- 25-10 Safety Program Planning.- 25-11 Management Support and Directions.- 25-12 Safety Organization.- 25-13 Worker Education.- 25-14 Hazard Control.- 25-15 Medical and First-Aid Plans.- 26 Public Relations for Contractors.- 26-1 Gaining a Reputation.- 26-2 Public Relations Objectives.- 26-3 Foundations of Good Public Relations.- 26-4 Relations with Clients and Potential Clients.- 26-5 The "General Public".- 26-6 Employee-Company Publications.- 26-7 The Project or Branch Office Community.- 26-8 The Mass Media.- 26-9 Government Officials and Political Figures.- 26-10 Special Interest Groups.- 26-11 Stockholders and the Financial Community.- 26-12 Competitors.- 26-13 Suppliers.- 26-14 Technical and Professional Societies.- 26-15 Faculty and Students at Engineering Schools.- 26-16 Hazards of Increased Exposure.- 26-17 Staffing the Public Relations Function.- 26-18 Evaluating Public Relations Activities.- 27 Legal and Contractual Problems.- 27-1 Subcontracts and Purchase Orders.- 27-2 Bonding of Subcontractors.- 27-3 Documents and Records.- 27-4 Total Cost Less Bid Price.- 27-5 Record of Negotiations and Schedules.- 27-6 Daily Chronology of Progress.- 27-7 Trouble Flags.- 27-8 Personalities in Owner's Administration.- 27-9 Your Original Estimate and Schedule.- 27-10 Breach of Contract vs. Administrative Remedies.- 27-11 Various Contract Adjustment Clauses.- 27-12 Changes Article.- 27-13 Changed Conditions (Differing Site Conditions) Article.- 27-14 Suspension of Work Article.- 27-15 Variation in Quantities Article.- 27-16 Termination for Default, Damages for Delay, Time Extensions, and Force Majeure Articles.- 27-17 Inspection and Acceptance Article.- 27-18 Possession Prior to Completion Article.- 27-19 Termination for Convenience of the Government Article.- 27-20 Government Furnished Property Article.- 27-21 Escalation of Labor or Materials Article.- 27-22 Currency Fluctuations; Loss of Equipment and Materials.- 27-23 "Constructive" Changes.- 27-24 Acceleration of Work.- 27-25 Ripple or Impact Effect.- 27-26 Cardinal Change.- 27-27 Platitudes in the Claims Field.- 27-28 A "War Powers Case".- 27-29 Contract Interpreted Against Drafter.- 27-30 Specifications vs. Drawings.- 27-31 Duty to Seek Clarification.- 27-32 The Wunderlich Act.- 27-33 Equitable Adjustments.- 28 Taxes.- 28-1 Taxation is Monumentally Complex.- 28-2 United States Income Tax.- 28-3 Tax Accounting Methods to Determine Income from Long-Term Contracts.- 28-4 Cash Receipts and Disbursements Method.- 28-5 The Accrual Method.- 28-6 The Percentage of Completion Method.- 28-7 The Completed Contract Method.- 28-8 Income from Cost-Pius Contracts.- 28-9 What Constitutes a Single Contract?.- 28-10 Problems Common to Accrual, Percentage of Completion, and Completed Contract Methods.- 28-11 Taxation of Foreign Operations.- 28-12 Foreign Tax Credits.- 28-13 Less Developed Country Corporations-Tax Credits.- 28-14 Foreign Jurisdictions That Do Not Allow Completed Contract Methods of Reporting.- 28-15 Foreign Countries Levying Withholding on Dividends.- 28-16 Controlled Foreign Corporations.- 28-17 Necessity of Making Fair Charges to Foreign Subsidiaries for Services Rendered.- 28-18 Western Hemisphere Trade Corporations.- 28-19 Dangers of Joint Ventures in Certain Countries.- 28-20 Problems of Income Taxation of American Employees in Foreign Countries.- 28-21 State Taxes.- 28-22 Interstate Tax Bills, Allocation of Income.- 28-23 Other State and Local Taxes.- 29 Contractors' Industrial Insurance.- 29-1 Planning and Organizing the Insurance Program.- 29-2 Workers' Compensation and Employers Liability.- 29-3 Comprehensive General Liability Including Automobile.- 29-4 Builder's Risk Insurance.- 29-5 Business Interruption and/ or Extra Expense Insurance.- 29-6 Contractor's Equipment Coverage.- 29-7 Transit Insurance.- 29-8 Floating Marine Equipment.- 29-9 Charterer's Liability Insurance.- 29-10 Comprehensive Dishonesty, Destruction and Disappearance Policy.- 29-11 Property Insurance.- 29-12 Boiler and Machinery Insurance.- 29-13 Glass Insurance.- 29-14 Summary.- 30 group insurance plans.- 30-1 Designing a Group Insurance Program.- 30-2 Eligibility.- 30-3 Group Term Life Insurance for Employees.- 30-4 Group Term Life Insurance for Dependents.- 30-5 Survivor Income Benefits.- 30-6 Group Accidental Death and Dismemberment Insurance.- 30-7 Group Weekly Indemnity Insurance.- 30-8 Long Term Disability Income Insurance.- 30-9 Hospital-Surgical-Medical Expense.- 30-10 Ancillary Health Care Benefit Plans.- 30-11 Supplemental Major Medical Expense.- 30-12 Health Care Expense.- 30-13 Medicare.- 30-14 Costs of Group Insurance Benefits.- 30-15 Foreign-Based Employees.- 31 Fundamental Concepts Underlying Pension Plan Financing and Costs.- 31-1 Types of Pension Plan.- 31-2 Provisions.- 31-3 The General Nature of Pension Costs.- 31-4 Normal Cost.- 31-5 Actuarial Assumptions.- 31-6 Present Value.- 31-7 Financing Policies.- 31-8 Effect of Funding Policy on Periodic Pension Costs.- 31-9 Past Service Costs (Supplemental Cost).- 31-10 Pay-As-You-Go Method.- 31-11 Terminal Funding Method.- 31-12 Advance Funding Methods.- 31-13 Trusteed Plans.- 31-14 Insured Plans.- 31-15 Computation of Actuarial Gain or Loss.- 31-16 Actuarial Gain or Loss Adjustment.- 31-17 Valuation of Fund Assets.- 31-18 Historical Background.- 31-19 Statements of the American Institute of Certified Public Accountants.- 31-20 Present Practice.- 31-21 Lybrand's Comment on APB Opinion No. 8.- 31-22 Future Changes.- 32 Contractural Relations, Disputes, Claims, and Contact Settlements.- 32-1 Contractural Relations.- 32-2 Disputes.- 32-3 Claims-Their Preparation and Pursuit.- 32-4 Contract Settlements.- 32-5 Recourse Beyond Time of Release.- 32-6 Referal to Contract Appeals Boards.- 32-7 Arbitration.- 32-8 Settlement Through Court Action.