July 2018

by Anwar Hafeez, SDC & Associates, Inc.

In order for a subcontractor to be well organized and run a project efficiently and increase their profits, they needs to keep these five logs to track of information and find it quickly:

1. Submittal Log
2. RFI Log
3. Change Order Log
4. Backcharge Log
5. Letters Incoming/Outgoing Log

This article discusses the best methodology that should be used to prepare, manage and track these Logs as stated below:

Submittal Log

Why are submittals required by the owner? Submittal logs are required for subcontractors for:

• Materials that conform to the contract documents.
• Coordination with other trades especially electrical and mechanical.
• Fabrication drawings for structural steel, rebar, millwork, etc.
• Embed location needed.
• Loop drawings, control panels, etc.
• Mock-ups.

Certain submittals are absolutely necessary such as rebar, structural steel, millwork shop drawings because contract drawings for these are schematic in nature and the shop drawings are prepared to show all the intricate details and become the fabrication drawings. The owner should eliminate most of the submittals that have the stamp on the product that state what was specified.

Types of Submittals

• Approval.
• Substitution.
• As-Equal.
• Samples.
• Catalog Cuts.
• Shop Drawings.

Substitution and or-equal submittals need to be flagged out on your Transmittal Form—it may involve providing a credit—otherwise the submittal is deemed to be in conformance of the bid design documents. Otherwise you will get in trouble by submitting some products that the two parties did not contract for, even if the submittal is approved. 

RFI Log

What is an RFI? An RFI is a Request for Information system for asking questions that relate to problems encountered on construction projects, such as:

• Defective contract documents.
• Conflicts in contract documents.
• Omissions in contract documents.
• Ambiguities in contract documents.
• Differing site conditions.
• Verbal directions.
• Jobsite coordination.
• Constructive changes issues.

The RFI system is a standard operating procedure on construction projects as the contract documents especially since design of most construction projects have deteriorated and the designers do not go out to the jobsite anymore and thus they don’t learn on how things are actually built.

RFI is unique form of communication. Unlike letters, emails, or field memos, you may or may not get an answer to the question that you asked, but the RFI is a question and answer system. You ask a question, you get an answer. Sometimes you may not like the answer to the question, but you get it anyway.

So what do we use letters for? Writing about contractual matters, such as:

• Notification of delays and additional costs due to answers to RFIs, submittals, clarifications.
• Sending in cost proposals for change orders.
• Notifying of filing a claim.

The RFI system is effective if it is prepared and implemented correctly. You can write an RFI and influence the answer that you want. Sometimes you should not write an RFI, see previous articles in The Contractor’s Compass I wrote on “Conflicts and Commissions.”

Suppose, that starting tomorrow, you decided that every question that you will ask is via an RFI and not through letters, emails, and field memos. What is the advantage?

• All your questions and answers that you have asked are in one system and not four systems.
• They are numbered and trackable.
• You don’t have to wonder if you asked a question during construction—you either did or did not.
• The information is easy to find and is all in one place.
• RFIs are great source of getting change orders and documenting delays on the project.

Keys to a Winning RFI System

• Use it as your primary form of communication
• Set a Priority system at the Pre-Construction Meeting:
  • Priority 1 – Need answer in 1 Work Day
  • Priority 2 – Need answer in 2 Work Days
  • Priority 3 – Need answer in 5 Work Days
  • Priority 4 – Need answer in 10 Work Days
• Keep and monitor the RFI Log and write a letter complaining the problems with drawings and specifications and that the designers are completing their design during construction.
• Keep the RFI Log Cross-referenced, such as shown in Fig. 2:

Submittal and RFI Logs Follow-Up

You should send the following letter to your contracting party every Monday morning. You can program your Excel spreadsheet or if you use any Project Management software—all you have to do is hit the print button and send the following letter, stating:

1. Please be advised that the following RFIs are late in their response to us:

2. Please be advised that the following Submittals are late in their approval to us:

The consequences of the late answers to RFIs and late approval of our submittals is that there will be additional delays and/or costs to this project. We urge you to please expedite the answers to RFIs and approval of our submittals listed above as well as other RFIs and submittals in your possession.

This is what I call “relentless follow-up,” which tells that the contracting party that you are active in trying to get the project built on time.

Change Order Log

To keep track of your Change Orders (CO), assign your Project Manager (PM) to assign CO Numbers after other project personnel has convinced the PM that this is a legitimate CO to pursue otherwise your company will submit change order requests that have no merit and that deteriorates relationships with the contracted party. Your PM needs to maintain this Log

Backcharge Log

To keep track of your Backcharge Change Orders (BCO), assign your Project Manager (PM) to assign BCO Numbers after other project personnel has convinced the PM that this is a legitimate BCO to pursue otherwise your company will submit BCOs that have no merit and that deteriorates relationships with your suppliers/subcontractors. Your PM needs to maintain this Log.

This Log is different from the CO Log in that this keeps track of backcharges/internal-transactions between you and your own subcontractors and has nothing to do with the contract you have for the project. Use different series of cost code codes to track BCO costs—separate from costs from contract and CO costs.

Letters Incoming/Outgoing Log

To keep track of your Letters Incoming/Outgoing, you should keep track of outgoing and incoming letters to the party that you are contracted with. This way you do not lose any letters and you know what letters you have responded to and how and what letters you decided not to respond to. You also, know if you get letters out of order, that you should follow-up to get the missing letters or find out that were voided. I do not recommend using this log on small projects as it is a lot of work to do so

If you use Project Management software or an internet-based project management system, customize it with the information provided in this article and/or add what works for your company. If anyone wants a copy of “5 Logs” in Excel format, please ask for a request via email.

Armed with this knowledge, subcontractors adopt, implement and maintain the 5 Logs You Must Keep that works which will make your work more efficient, save time and increases your profits!

Anwar Hafeez is president of SDC & Associates, Inc., a construction claims consulting firm that prepares and negotiates change orders/claims, CPM scheduling, and teaches seminars on project management and change orders/claims. For more information, visit www.sdcassociates.com, call (800) 732-3996 or email ah@sdcassociates.com.

##