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CE/CM 4304 & CE/CM 5378 Design Project

CE/CM 4304 & CE/CM 5378 Design Project

CE/CM 4304 & CE/CM 5378 Design Project, FALL 2021

1 of 3

(The names, project and issues presented in this assignment are not related to any real individuals, companies or projects.)

REVISED, #2: 9/13/21

Parties: Owner – Shinbone Commons, LLP (SCL)

Partner A – Tom Donifin, Inc. (DPI)

Partner B – Dutton Peabody, LP (DPL)

Retail Operator – Liberty Valance, LLC (LVL)

Architect – Picketwire Architects, Inc. (PAI)

Contractor – Buck Langhorn, Inc. (BLI)

Project: Seven Story Apartment Building, 192 Units

Concrete Frame, Brick & Glass Exterior, Retail on Ground Level, Two

Levels of Underground Parking

Shinbone, Texas

Design & Construction Issues

Partners A and B entered into a limited liability partnership (LLP) for developing a seven story

apartment building in Shinbone, Texas. Partner B has a construction division that contracted

with the LLP to design and construct the apartment building with one level of retail on the

ground floor. Buck Langhorn, Inc. (BLI) hired and directed Picketwire Architects, Inc. (PAI) in

providing architectural, structural and MEP design services: a Design-Build delivery method.

Shinbone Commons, LLP contracted with BLI using an AIA Document A141, “Standard Form

of Agreement Between Owner and Design-Builder”, with the AIA Document A201, “General

Conditions of the Contract for Construction”, as part of the contract documents.

In the LLP agreement, Partner A agreed to purchase the first floor Retail component of the

project from partner B’s construction division, BLI, for the predetermined amount of

$10,000,000.00. BLI guaranteed the completion date and cost of $45,000,000 for the project to

the LLP entity. As the project progressed, Partner A met with PAI and their consultants,

directing them to make various changes without DPL’s representatives being present. PAI

proceeded with Partner A’s revisions and issued the revised plans to BLI. Partner B and BLI

were very surprised by Partner A’s actions without their input, but in the spirit of cooperation

proceeded with the work. BLI received estimates from the subcontractors, totaling more than

$4,000,000, and submitted the price for the revisions to the partners. Partner A was not happy

with the pricing and pushed for BLI to absorb any extra costs using BLI’s contingency. The

partners and BLI worked out the issues and work continued. Several other issues surfaced, such

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