WHY?
Why would you need a Supplementary Conditions document? There are many topics in the standard General Conditions that design firms, Owners, or negotiated Contractors may want to modify or add for a project or as their standard practice. These can be done in a concise manner that is called the Supplementary Conditions. In this way, all the benefits of a standard set of documents may still be retained:- Cost savings for bidding and administering the Contract because of familiarity.
- The individual Specification Sections and Drawings hinge upon provisions that are normally in the General Conditions.
- Comprehensive, proven "rules of the game" may be incorporated, even just by reference, facilitating concise and complete documents.
You retain these benefits, while also being able to customize them, in a way that points out the changes.
See related post 006000 - PROJECT FORMS for discussion about the importance of the General and Supplementary Conditions and how they may be incorporated by reference in a summary document. One thing worth reiterating, though normally we practice the CSI doctrine of "say it once"...It is strongly recommended for parties who have professional responsibility for the design documents (i.e. at least the Architect of Record), and parties to the prime Construction Contract (i.e. the Owner and the Contractor), to seek legal counsel for guidance before finalizing any such changes.
WHY NOT?
Before we go further, let's acknowledge that sometimes, no Supplementary Conditions document is needed. Either:
- The General Conditions are considered to the parties forming the Contract to be perfectly satisfactory.
--OR-- - Sometimes the parties prefer "inline" revisions (underline for insertion, strike-through for deletion) to the General Conditions. It is easier to see the changes in context. You will have a bulkier Project Manual, but it is the ultimate for convenience so everyone can readily see both the standard General Conditions and what is being changed. Refer to the AIA licensing requirements for the documents, online software, and document units for finalized forms.
(Now, what do you call the resulting document? How about 0070000 - CONDITIONS OF THE CONTRACT, or if you want to be creative and are not afraid of the MF police you can make up something like 007250 General and Supplementary Conditions.)
WHAT?
Here are just a few examples of topics that might be added to or changed in a Supplementary Conditions document:
Liquidated Damages
If no LD dollar amount is predetermined, it can be contentious in court to determine actual damages. BUT if Owner is not concerned of a facility opening by a certain date though, why have contractors pad their bids for unforeseen delays?
If completion of construction on time is a big deal for an Owner and their given Project, or if it is an agency requirement, to the extent allowed by local law, liquidated damages can be defined in the Supplementary Conditions as a penalty per day for a certain dollar amount. This is far easier to determine than "actual damages" in a courtroom. There is a down-side to LD's (as they are sometimes called). It probably adds cost to the bids. Contractors who read what they are bidding on realize they might be penalized. Of course the big upside is they will do everything possible to complete the construction on time. Be aware that some localities have enacted laws that say if there is a penalty for being late there must also be a bonus for completing early.
Who is to say what the dollar amount should be? Best left completely to the Owner to decide that. If there is a contracting entity on board they can negotiate it. Once a number is determined, the provision can be added as a Supplementary Conditions item. In some cases there can be a dollar amount for days late [or early] for Substantial Completion (the point at which the Owner may occupy the facility for its intended use) and another dollar amount for days late [or early] for Final Completion (when all punch list items are satisfied).
Insurance
Without specifying insurance, the playing field of the bidding is unknown to the Owner.
Provisions in the "front end" (slang for Division 00, and often also Division 01) for which types of insurance the Contractor must carry, avoid the guessing game for the Owner who is otherwise relying on just whatever the bidders typically carry. Even if this information is requested, the bids will not be apples to apples, not really. Because of this some Owners and government agencies have prescribed dollar limits of insurance in several different types, and these can be added as a Supplementary Conditions item.
Contract Time
Time is often considered a material element of a construction Contract.
If an Owner has no iron-clad schedule for the construction project, the design-phase Project Manual may be silent on this. But if it is necessary for all bidders to know, that this project MUST be completed be a fixed date, Contract Time may be defined as a number of calendar days or a fixed date for each stage of completion, and possibly for additional milestones. If undefined in the front end, it is assumed that the the Owner and Contractor will negotiate and write the contract time into the final Agreement.
Many other types of provisions in the Supplementary Conditions are often used by design firms, Owners, or Contractors to tailor the terms and allocate risks as they deem necessary for what is being constructed.
HOW?
Concise Format
Each Supplementary Conditions change (when not using the "inline changes" method noted above) can be mae by referencing a specific paragraph by number in the original document, and stating what changes to make - Add: _______________, Delete paragraph x.x.x, or Delete and Replace with: ______________.OK so that's the right place, but how will readers find stuff buried deep in the Supplementary Conditions?
For changes as material to the time and price of a project as the three described above, it may be very good to give the bidders a heads up in the Solicitation, the Bod Form, and the Agreement Form. This can be done with a very short cross reference, to avoid duplication which leads to error.
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