DEPARTMENT OF THE ARMY EP 415-1-260 U.S. Army Corps of

182 Pages·2016·1.32 MB·English

DEPARTMENT OF THE ARMY EP 415-1-260
U.S. Army Corps of Engineers
CECW-CE Washington, DC 20314-1000

Pamphlet
No. 415-1-260 31 March 2016

Construction

AREA/RESIDENT ENGINEER MANAGEMENT GUIDE

TABLE OF CONTENTS

Paragraph Page

Chapter 1. Introduction 1-1

Purpose 1-1 1-1
Applicability Statement 1-2 1-1
Distribution Statement 1-3 1-1
References 1-4 1-1
Reviews 1-5 1-1

Chapter 2. Organization, Duties, and Responsibilities 2-1

General Organization 2-1 2-1
Terminology 2-2 2-1
Duties 2-3 2-3
Responsibilities 2-4 2-3
Authorities 2-5 2-5

Chapter 3. General Office Administration 3-1

Mail Management 3-1 3-1
Correspondence 3-2 3-1
Filing and Records 3-3 3-1
Forms 3-4 3-3
Personnel 3-5 3-3
Travel 3-6 3-9
Government Vehicles 3-7 3-11
Procurement 3-8 3-11
Property Accountability – General 3-9 3-12
Property Accountability – Contracts 3-10 3-14
Information Technology 3-11 3-15
Tenant Commander Responsibilities 3-12 3-15
______________________________________________________________________________
This Engineer Pamphlet supersedes EP 415-1-260, Dated 6 December 1990
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Emergency Management/Response 3-13 3-15

Government Field Trailer 3-14 3-15

Chapter 4. Fiscal Administration 4-1

General 4-1 4-1

Budgeting 4-2 4-1

Cost Accounting 4-3 4-2

Cost Reporting 4-4 4-3

Obligation of Government Funds 4-5 4-4

Audits 4-6 4-4

Chapter 5. Construction Management 5-1

General 5-1 5-1

Plans and Specifications, and Design/Build Request
for Proposals (RFPs) 5-2 5-1

Review of Proposed Construction with Using Service Authorities,
Operations Managers, and Local Sponsors 5-3 5-3

Period of Performance and Liquidated Damages 5-4 5-3

Prospective Bidders 5-5 5-3

Award of Contract 5-6 5-4

Notice to Proceed (NTP) 5-7 5-4

Commencement of Work 5-8 5-5

Post Award/Preconstruction Conference 5-9 5-5

Location of Material Storage Area and Project Signs 5-10 5-9

Federal, State, Base, and Local Regulations 5-11 5-9

Relationships with the Using Service, USACE Operations
Managers and Local Sponsors 5-12 5-10

Dealing with the Contractor 5-13 5-11

Quality Assurance (QA) 5-14 5-13

Contractor Quality Control (CQC) 5-15 5-17

Shop Inspection 5-16 5-20

Removal of Work for Examination 5-17 5-20

Shop Drawings, Samples, and Certificates 5-18 5-21

Expediting Materials and Equipment 5-19 5-22

Technical Library 5-20 5-23

Area/Resident Office Documentation 5-21 5-23

Inspector’s Quality Assurance Reports (QAR) – Daily
Log of Construction 5-22 5-24

Laboratories 5-23 5-25

Testing and Test Reports 5-24 5-26

Photographs 5-25 5-27

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Work Stoppages and Delays, General 5-26 5-29

Delays Within the Control of the Contractor 5-27 5-29

Suspension of Work 5-28 5-30

Work Stoppage 5-29 5-30

Deficiencies in Contractor Performance 5-30 5-31

Differing Site Conditions 5-31 5-31

Disputes 5-32 5-31

Joint Inspection 5-33 5-32

Beneficial Occupancy Inspection 5-34 5-32

Completion and Closeout “Red Zone” Meeting, Military
Construction 5-35 5-33

Pre-Final and Final Inspections 5-36 5-34

Inspection of Completed Construction 5-37 5-35

As-Built Drawings/Geotechnical and Concrete Material

Completion Reports 5-38 5-35

Evidence of Insurance and Insurance Policies –

Construction Contracts 5-39 5-37

Contractor Employee Labor Hours 5-40 5-37

Chapter 6. Defense Priorities and Allocation System 6-1

Priorities and Controlled Materials 6-1 6-1

Expediting Materials and Equipment 6-2 6-1

Chapter 7. Contract Administration 7-1

Field Office Engineering, General 7-1 7-1

Contractor’s Payment Estimates 7-2 7-1

Progress and Progress Reporting 7-3 7-6

Maintaining Progress of Construction 7-4 7-11

Processing of Claims 7-5 7-11

Excusable Contract Delays 7-6 7-13

Evaluation of Contractor Performance 7-7 7-13

Architect-Engineer (A-E) Performance Rating 7-8 7-17

Transfer of Completed Facilities 7-9 7-18

Acceptance of Work 7-10 7-21

Completion Report and Closeout 7-11 7-21

Modifications, General 7-12 7-22

Clauses Authorizing Modifications 7-13 7-25

Contract Clauses Not Within ACO Authority 7-14 7-32

Contracting Officer (KO) and Administrative Contracting

Officer (ACO) Authority 7-15 7-34

Funding 7-16 7-36

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Government Estimates 7-17 7-38

Requests for and Receipt of Proposals 7-18 7-42

Negotiations 7-19 7-43

Modification Packages 7-20 7-46

Modification Form 7-21 7-48

Unilateral Change Orders 7-22 7-49

Distribution of Modifications and Accompanying Documents 7-23 7-50

Architect-Engineer (A-E) Responsibility 7-24 7-50

Contracts with the Small Business Administration 7-25 7-52

Chapter 8. Value Engineering 8-1

General 8-1 8-1

Responsibilities 8-2 8-1

Processing Value Engineering Change Proposals (VECP) 8-3 8-1

Chapter 9. Safety 9-1

General 9-1 9-1

Responsibility 9-2 9-1

General Procedure 9-3 9-1

Pre-Work Safety Plans/Accident Prevention Plan 9-4 9-2

Accident Investigation 9-5 9-5

Authority 9-6 9-5

Compliance with Federal, State, and Local Regulations 9-7 9-5

Occupational Safety and Health Act of 1970 9-8 9-6

Hazardous, Toxic and Radiological Waste Projects 9-9 9-6

Monthly Safety Exposure Reports 9-10 9-7

District Office Assistance 9-11 9-7

Chapter 10. Labor Relations and Labor Standards Enforcement Responsibility (US Only) 10-1

Labor Responsibility 10-1 10-1

Labor Disputes 10-2 10-1

Posting Labor Rates 10-3 10-2

Additional Classification 10-4 10-3

Notification of Subcontracts 10-5 10-3

Payroll 10-6 10-3

On-The-Site Investigation 10-7 10-4

Apprentices and Trainees 10-8 10-4

Self-Employed Contractors 10-9 10-4

Labor Organization Representatives Entering Work Sites 10-10 10-4

Equal Employment Opportunity 10-11 10-5

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Employment of the Handicapped 10-12 10-5

Small Business and Small Disadvantaged Business

Subcontracting Program 10-13 10-5

Independent Contractors 10-14 10-6

Chapter 11. Physical Security 11-1

General 11-1 11-1

Responsibility 11-2 11-1

Reporting 11-3 11-2

Physical Security Assistance 11-4 11-2

Visitors 11-5 11-3

Chapter 12. Real Estate 12-1

General 12-1 12-1

Responsibility in Connection with Real Estate 12-2 12-1

Disposal of Real Estate and Real Estate Components 12-3 12-2

Granting Use of Acquired Real Estate to Others 12-4 12-2

Chapter 13. Environment 13-1

General 13-1 13-1

Responsibility 13-2 13-1

Sources of Pollution 13-3 13-2

Federal, State, Base, and Local Regulations 13-4 13-4

Staff Inspections 13-5 13-4

Chapter 14. Design Build Method of Delivery System 14-1

General 14-1 14-1

Conferences 14-2 14-3

Schedule Management 14-3 14-7

Quality Management 14-4 14-8

Submittals 14-5 14-10

Changes 14-6 14-13

Other D-B Issues 14-7 14-15

Appendix A – References/Links A-1

Appendix B - Acronyms B-1

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CHAPTER 1
INTRODUCTION
1-1. Purpose. This manual presents and prescribes, in one publication, the basic duties,
responsibilities, policies, procedures, and essential information for Area/Resident Engineers and
their staffs. The manual provides guidance in construction management and contract
administration of design-bid-build and design-build construction, Hazardous, Toxic and
Radioactive Waste (HTRW) remediation, and relocation contracts under the Area/Resident
Offices’ jurisdiction. This manual is limited to the construction management and contract
administration of construction contracts, including construction related service contracts such as
contracts for surveys and laboratory tests applicable to construction and HTRW remediation.
The text does not present, in detail, all of the procedures involved in the construction
management and contract administration of construction contracts, but rather guides the user to
the various manuals, Engineering Regulations (ERs), Engineering Pamphlets (EPs), Engineering
and Construction Bulletins (ECBs), Procurement Instruction Letters (PILs), Quality Management
System (QMS) Processes, District Regulations, and other directives which contain the necessary
instructions for the proper functioning of a field office. The general guidance provided in this
manual needs to be adjusted for some other contract types such as Task Order Contracts, and the
many variations of Cost Reimbursable Contracts. Each Area/Resident Engineer should have
access to pertinent regulations and guidance documents relating to field office procedures,
contract administration, and construction management processes.

1-2. Applicability Statement. This manual shall be used by all USACE personnel responsible
for construction where USACE holds Contracting Officer authority. Where instructions
contained herein conflict with contract provisions, the contract shall govern. When in doubt as
to proper procedure, appropriate elements of the District Office should be contacted. This
manual does not supersede the Federal Acquisition Regulation (FAR), Defense FAR Supplement
(DFARS), Army FAR Supplement (AFARS), or USACE Acquisition Instruction (UAI),
formerly known as EFARS.

1-3. Distribution Statement. Distribution is unlimited.

1-4. References. See Appendix A, References/Links.

1-5. Reviews. This document will be revised periodically as appropriate. Revisions will be
incorporated into the electronic document which will be made available in its entirety.

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CHAPTER 2
ORGANIZATION, DUTIES, AND RESPONSIBILITIES
2-1. General Organization. The established command channel in USACE is from the Chief of
Engineers (HQUSACE), to the Division Commander, to the District Commander, the Deputy
District Engineer for Program and Project Management (DPM), to the Chief of Engineering
and Construction (if applicable), to the Chief of Construction, to the Area/Resident Engineer.
The Area/Resident Engineer is responsible for the construction management and contract
administration of all construction contracts assigned to their office and all activities of their
office. The Chief of Construction shall direct and supervise the Area/Resident Engineer.
However, the Area/Resident Engineer as Administrative Contracting Officer (ACO) or as the
Contracting Officers Representative (COR) is also accountable to the Contracting Officer (KO).
The Area/Resident Engineer and members of their staff also serve as important member(s) of
various Project Delivery Teams (PDTs), working closely with project managers (PM) and other
PDT members.

2-2. Terminology.

a. Area/Resident Engineer, as referred to in this manual, will have the same significance
and meaning as Engineer-in-Charge, having direct job site surveillance, construction
management and contract administration responsibilities. The Area/Resident Engineer, if
qualified and issued a warrant, is typically appointed as the ACO on a contract-by-contract basis.
The Area/Resident Engineer or other responsible individuals in the Area/Resident Office may
also be delegated as the Contracting Officer’s Representative (COR) for specific contracts.

b. Area/Resident Office is used to indicate individually or collectively the personnel of the
surveillance force, contract administration and other office personnel, and the Area/Resident
Engineer:

(1) Area Offices normally will be established, centrally, in the vicinity of project
construction operations. The Area Engineer may be appointed to administer the construction
work for multiple Resident/Project Offices.

(2) Resident Offices will be established to administer projects at a specific location. The
Resident Engineer may be appointed to administer the construction work for multiple Project
Offices.

(3) Project Offices, headed by a Project Engineer or a senior Construction Representative,
will be established to handle limited or specialized functions where lesser scope, responsibility,
and authority than assigned to the Area/Resident Office are needed. Project Offices normally
report to an Area or Resident Engineer.

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(4) Office Engineering/Contract Admin Section will be responsible for the review and
processing of contractual actions such as modification, pay estimates, schedule analysis, contract
closeout documents, etc.

(5) Technical Support Section will include engineering / technical specialists who provide
assistance to all contracts assigned to the Area Office

c. “Contractor” is used to indicate the prime contractor for a given contract.

d. The Contracting Officer (KO) is the USACE representative, usually within the District
or Center Contracting Office, designated by the Principal Assistant Responsible for Contracting
(PARC) to enter into and administer contracts for the Government and make determinations and
findings thereon. This duty is typically termed the Procuring Contracting Officer (PCO) and
Terminating Contracting Officer (TCO), both of which are not normally associated with ACO
delegation. Contracting Officer also means the ACO, when the referenced action is within the
ACO’s authority.

e. Contracting Officer’s Representative (COR) will be the Area/Resident Engineer or a
member of the Area/Resident Office staff who is delegated specific contract administration
authority by the KO. ACO authority includes all authority granted to a COR. However, there
are contracts, normally service contracts, for which the Area/Resident Engineer will only be
granted COR authority. Therefore, each Area/Resident Engineer shall maintain a current list of
authorities for each contract administered by their office. Qualification, nomination and training
requirements are established by the HQUSACE Directorate of Contracting (DoC), and are
identified via Procurement Instruction Letter (PIL) 2012-06-R1 dated 25 Jul 2012. Refer to
https://cops.usace.army.mil/sites/CT/P/Procurement%20Instruction%20Letters%20PILs/PIL%20
2012-06-R1.pdf.

f. The Director/Chief, District Contracting Office, may request the PARC provide a
warrant to a qualified individual to act as ACO, subject to specified conditions and restrictions.
The individual appointed will function on specified contracts when authorized by the KO in the
ACO letter. The appointee may not delegate this authority to another person. Qualification,
nomination and training requirements are established by the HQUSACE Directorate of
Contracting, and are identified via Procurement Instruction Letter (PIL) 2012-09 dated 23 May
2012. A copy of the procurement instruction letter can be located at the following website:
https://cops.usace.army.mil/sites/CT/P/Procurement%20Instruction%20Letters%20PILs/Forms/
AllItems.aspx.

g. The Chief of Construction refers to the head of the technical division/branch performing
the construction management and construction contract administration function at the District
office. This may be a Division Chief position or it may be a Branch Chief in cases where the
District has an Engineering and Construction organization, Technical Services organization, or a

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