BuildSmart™ - Comprehensive Construction Risk Management

This second edition of the PEG BuildSmart™ Comprehensive Construction Risk Management Program is the culmination of extensive field service, industry research and collaborative efforts of the four divisions of PEG. This program prioritizes the Business Continuity and Brand Name Protection objectives of our clients with the effective application of an independent audit process that is designed not only to protect the integrity of our clients’ projects, but to educate, validate and ultimately streamline the construction process to ensure compliance with scheduling and fiscal milestones.

All Protocol inspections are inclusive only of those items in the approved inspection checklists created for each project. Any project or program changes must be submitted and adopted by PEG prior to implementation. The program pricing is for one inspection and one re-inspection as outlined in the attached timing spreadsheet.

BuildSmart™ Program Protocols

Protocol 1 - Land Development / Sales / Plans and Specifications

PEG will attend Land Development preparation meetings to review and assess all aspects of the project’s Land Development stage. In addition this protocol provides for review and analysis of project land parameters that will be integral to the maintenance, management and sales of the property. This protocol portion may also incorporate PEG Phase One or Phase Two Environmental Site Assessment (ESA), hazardous materials management or urban site preparation review. Technical performance of these ESA related services are separate from the Comprehensive Construction Risk Management Program. The Land Development Protocol meetings typically take place approximately 30 days prior to initiation of Land Development activity. PEG will attend Sales meetings to discuss and review the project’s construction and parameters pertinent to the type of units to be built, the configuration of the building(s), the common areas, the proffers, the floor plans and any options being offered to the owner(s). In addition, this protocol provides for the review, comment and retention of all documentation related to sales and contracting for the project. PEG will collect, coordinate and review all Manufacturer’s Specifications and OEM Manuals for installation and maintenance requirements for most mechanical components as well as many common element items that may include, pools, recreational equipment, etc. This protocol provides for the verification of conformance with design specifications and applicability, as well as the initial process of developing maintenance and operation procedural standards for property turnover.

Protocol 2 - Soils / ESA / Hazmat

PEG will review all soil preparation components such as soil / water / vapor contamination, soil compaction, bearing capacity, SWPPP planning etc. Critical items that must have rapid decisions made for remedial actions, that may be internally driven, local or national environmental compliance standards, will be reviewed and have guidance recommendations generated. Oversight or development for remedial engineering or environmental activities may also be included in this protocol.

Protocol 3 - Foundation / Structural

PEG will review all transmitted, approved design parameters for structural footers, foundations, piers, beams, decks, walls etc. Compliance inspections, photo-documentation and record retention will take place for vapor barriers, reinforcement placement, structural steel placement, bolt patterns, welding, concrete /grout temperature, additive determination, air entrainment and slump. PEG must be provided with approved geotechnical report(s) that establish design compaction and bearing capacity compliance. PEG will perform ASTM / ACI approved probe rod testing prior to footer pour(s) to assess actual conditions at that time. Cylinders are filled and submitted to an independent laboratory for compressive strength analysis. Cylinder collection will, unless otherwise directed and agreed to, be performed at five cylinders per 100 yards of concrete. Field work will comply with ACI procedural standards. Document retention of all inspections, deliveries, welding qualifications, laboratory analysis etc. is also part of this protocol. The pricing for this protocol is per pour and does not include delivery or analysis costs for concrete laboratory work.

Protocol 3 – Special Inspections
When requested, PEG will submit information and qualifications to the appropriate building department officials to apply to be the approved special inspection agency per IBC requirements. This process must take place before project initiation and is exclusive of specific local building department conditions outside of the IBC.

Protocol 4 – Framing

PEG will review all transmitted, approved design parameters and will perform a thorough inspection of the quality of completed framing (steel or lumber) with all trade rough-ins completed. Items of particular focus (detailed in PEG inspection forms) include structural integrity, water intrusion, engineered repairs, trade component protection, MEP installation and acoustical control components. In general, the scheduled inspection focuses on compliance with engineering and architectural details.

Protocol 4 – Special Inspections
When requested, PEG will submit information and qualifications to the appropriate building department officials to apply to be the approved special inspection agency per IBC requirements. This process must take place before project initiation and is exclusive of specific local building department conditions outside of the IBC.

Protocol 5 - Exterior Envelope / Water Intrusion

PEG will review all transmitted, approved design parameters and will perform a thorough inspection of the completed exterior envelope to verify installation and application compliance with design details for items such as windows, flashings, roofing, vapor barriers, vapor retarders, sheathing, façade elements etc. Discrepancies between manufacturer’s installation requirements, Approved Architectural detail and code compliance deficiencies must be addressed in writing prior to this inspection.

Protocol 6 - Life Safety

PEG will review all transmitted, approved design parameters and will perform a thorough inspection of installed components for compliance with design and manufacturer’s guidelines on Life Safety components to include: fire-proofing, fire-stopping and sprinkler systems. Developmental work will include consultation with local fire authorities for regional compliance requirements as well as confirmation of national industry standards and guidelines. Manufacturers operation and maintenance procedural review and collection of documentation are also part of this protocol in order to be included in the turnover process. PEG will not inspect or test alarm systems but will collect validation of performance and compliance from the installing entity.

Protocol 6 – Special Inspections

When requested, PEG will submit information and qualifications to the appropriate building department officials to apply to be the approved special inspection agency per IBC requirements. This process must take place before project initiation and is exclusive of specific local building department conditions outside of the IBC.

Protocol 7 - Accessibility / ADA / FHA

PEG will review all transmitted, approved ADA/FHA design parameters. PEG will collect documentation of validation testing of building components such as elevators, escalators and automatic door systems. Those aspects of construction that are mandated for compliance with ADA and FHA regulations will be inspected. This inspection will incorporate the pathway from the furthest ADA compliant parking space to the building entry as well as those details included in the approved ADA/FHA compliance drawings. Compliance with design details and national standards will be the focus of this protocol. Compliance with ADA design and standards will also be included in this protocol to incorporate items such as openings, electrical designs, signage, common element installation etc.

Protocol 8 - Quality In – Line

PEG will review all transmitted, approved design parameters and will perform an inspection of common elements that will become the responsibility of the property owner/operator. This is typically an exhaustive fit and finish inspection process that will cover a customized list of inspection items. This inspection will take place with representation by the client where possible in order to establish an understanding for all parties of the conditional elements that must be addressed prior to protocol 11 and 12.

Protocol 9 - HVAC TAB Testing

PEG will provide independent performance testing of selected HVAC system components of the individual units and/or building central service systems that are designed for comfort. No work beyond validating airflow will be performed for process systems such as pool dehumidification systems. System components will also be verified for compliance with transmitted, approved drawings, details and submittals. The approved Mechanical Engineering criteria compliance will be the foundation for the installation aspect of this inspection.

Protocol 10 - Acoustical Testing

PEG will provide independent testing to provide validation that compliance with sound transmission standards is incorporated into the design, construction and application of the building. PEG will provide review of transmitted, approved drawings, details and material submittals that are pertinent to the effective mitigation of sound transmittal.

Protocol 11 - Pre - Turnover Acceptance

PEG will inspect the common areas of project buildings with a client representative to ensure awareness of all warranties, proper maintenance procedures and to make sure that the building and all common are complete and ready to turn over. Written notification to all participatory vendors and sub-contractors will be made prior to scheduling this protocol in order that verification of provision of all approved documentation for their elements are accounted for and that they are fully prepared to provide training on their components for Protocol 12. The Protocol 8 deficiency list must be closed and signed off prior to performance of Protocol 11.

Protocol 12 - Management Acceptance Orientation

PEG will provide for an orientation and acceptance procedure and walk-through of all common elements and items that will be the Management Company’s responsibility. All warranties, operational manuals and equipment demonstrations will be incorporated into this protocol. These demonstrations shall be performed by the vendors and manufacturers of same. PEG will, when provided, review the Managements Company’s maintenance obligations and contract. The protocol concludes with an acceptance sign-off by the Management Company for transfer of responsibility and liability from the General Contractor.

Protocol 13 - One Year Site Inspection

PEG will review all common elements of the building with the Architect of Record. This will include streets, curbs, gutters, storm and water discharge areas, utilities and all common areas. If during this inspection items are identified as the responsibility of the Management/HOA those items will be documented and forwarded for correction by the Management/HOA. The purpose of this protocol is to provide an interim inspection of common elements that typically will become the focus of the Owner’s forensic engineering review prior to warranty expiration.

Protocol 14 - Document Retention

PEG will provide retention of documents for 12 years in a central repository. These can be broken down into four categories: 1) land and legal; 2) construction: 3) turn-over/transition and 4) warranty work performed – units and common element. The PEG BuildSmart™ Program has been carefully designed to fully integrate and augment all existing client, A&E, vendor, and local authority inspections. The unique value that this program brings is the true independence of sole-source professional third-party risk management.