NCP 23 ASSIGNMENT NICMAR/CODE OFFFICE 1. Course No 2. Course title 3. Assignment No 4. Date of dispatch 5.

. Last date of receipt of Assignment at CODE office : : : : Construction Contracts & Contracting

Assignment Contract administration and monitoring is the most important area of construction management. Contract administration process should start right from the day work is assigned to the company. Discuss any project contract currently in progress with your company and how administration and monitoring is being done. Draw the organization chart for this activity and explain all the function carried out. Do you think the system is achieving results? Discuss.

INTRODUCTION Contract management is the process that enables both parties to a contract to meet their obligations in order to deliver the objectives required from the contract. It also involves building a good working relationship between customer and provider. It continues throughout the life of a contract and involves managing proactively to anticipate future needs as well as reacting to situations that arise. The central aim of contract management is to obtain the services as agreed in the contract and achieve value for money. This means optimising the efficiency, effectiveness and economy of the service or relationship described by the contract, balancing costs against risks and actively managing the

customerprovider relationship. Contract management may also involve aiming for continuous improvement in performance over the life of the contract.

PROJECT: New 4 lane elevated road from CHENNAI PORT to Maduravoyal (NH-4) in the state of Tamil Nadu under Phase vii on BOT(TOLL) Basis.

SCOPE OF PROJECT: The scope of the project shall mean and included, during the construction period: a) Construction of Project Highway on the site set forth and as specified and in conformity with specifications. b) Operation and maintenance of the project highway in accordance with provisions of agreement. c) Performance and fulfilment of all other obligation in accordance with the provisions of the agreement and matters incidental there to.

SCOPE OF WORK:

The scope of work consists of providing four lane Elevated road with entry exit rumps from 0.000 km to 17.543 km with a minimum clear vertical clearance of 5.5m from formation level of existing bridges /roads/culverts. The scope of work also includes, upgrading, widening, improving the existing roads (NH-4/SH/local) roads near the entry exit rump locations with suitable junctions drainage, cross drainage works , road safety features, lighting etc.,. and 8 lane toll plaza with concrete pavement, concrete retaining walls/ embankments for ramps, drainage, restoration of embankment of river through which the alignment is passing, fencing of row project highway, noise barriers.

IMPORTANT DETAILS OF CONTRACTS, COST , TIME AND TYPE:

CONTRACTS

Contract Management Framework

There are three key players in the Contract Management Framework:

1. Employer/Granting Agency (NHAI) 2. Concessionaire (CETL) 3. Independent Consultant (IE)

The inter relationship amongst these three key players is depicted as follows:

Concessionaire CETL
EMPLOYER NHAI

Consultant Design Construction Contractors

Independent Consultant (IE)

Consultant Supervision

Hires

Reports to

Supervises

The Concessionaire has to supervise, monitor, direct and control the activities of its EPC Contractor. The Concessionaire has engaged an inhouse team (CETL) as the Supervision Consultant. The day to day supervision of construction work is being done by the Supervision Consultant. The Design Consultant is responsible for detailed design and IC reviews/concurs before GFC drawings can be issued.

 The NHAI appointed IE to act as the Independent Consultant (IC). The object is to act independently and on behalf of NHAI. Essentially the role is to oversee, monitor and review the activities of the Concessionaire to ensure compliance with Concession Agreement requirements.

CONTRACT AGREEMENT: Subject to and in accordance with provisions the agreement, the exclusive right license and authority during the subsistence of the agreement to construct, operate, and maintain the project for a period of 15 years commencing from the appointed date. a) Finance and construct the project highway b) Manage operate and maintain the project highway and regulate the use thereof by third parties. c) Demand collect the appropriate fee from vehicles, persons for using and project highway and any part thereof and refuse entry of any vehicle if the fee due is not paid.

COST: Subject to and on the terms and conditions of the agreement the concessionaire shall at its cost expense procure, finance for and undertake the

design engineering, procurement, construction, operation and maintenance of project highway and observe, fulfil comply with:1) The concessionaire may procure at its cost an expense and on its own the land that may be required by it for additional facilities. Subject to the provisions the site shall be made available by the authority to concessionaire and during the concession period the concessionaire shall protect the site from any and all occupations, encroachments. 2) The concessionaire shall bear all the cost for any special or temporary right of way required by it in connection with thw access to the site.

IMPORTANT POINTS FROM CONTRACTORS POINT OF VIEW TO BE MONITORED / RESOLVED:

Notwithstanding anything to the contrary contained the concessionaire shall ensure that the respective entities owning the existing roads, right of way or utilities on under or above the site are enabled by it to keep providing temporary or permanent diversions. The concessionaire shall allow for laying telephone line, water pipes, electric cable or other public utilities:-

The concessionaire shall submit the authority the detailed design, construction methodology, quality assurance procedures and the procurement, engineering and construction time schedule for completion of the project.

The concessionaire shall appoint its representative duly authorised to deal with the authority.

During the construction period, the concessionaire shall furnish the authority a monthly report on the progress of the works and shall promptly give such other relevant information as may be required.

For determining that, the construction works confirm to the specifications and standards. The authority shall require the concessionaire to carry out or cause to be carry out tests at such time and frequency and in such a manner as may be required in the event that results of any test conducted any defects or deficiencies in construction work, the concessionaire shall carry out remedial measures and furnish a report to the authority.

During the construction period, the concessionaire shall provide the authority for every calendar quarter, a video recording, covering the status, progress of construction work in that quarter. During the operation

period, the concessionaire shall operate and maintain the project highway in accordance with the agreement and shall ;

a. Permit safe, smooth and uninterrupted flow of traffic on the project highway during normal operating conditions. b. Collecting and appropriating fee c. Minimising the disruption to traffic in the event of accidents or other incidents affecting the safety and use of project highway d. Carrying out periodic preventive maintenance of the project highway e. Undertaking major maintenance such as resurfacing pavements, repairs to structures etc.,. f. Preventing with the assistance of enforcement agencies, any encroachment on the project highway g. Protection of environment and provision of equipment and materials thereof h. Maintaining a public relation unit to interface with and attend to suggestions from users, government agencies, media and other agencies. i. Complying with safety requirements in accordance with safety requirements. j.

k. SITE ORGANIZATION

ADD A3 ORGANISATIONAL CHART (IN HAND PRINTED FORMAT) AS PG 8

The Group Head (CEO & COO): The group heads role would be the monitoring of the designers output and activities, and taking responsibility for all the work that is generated by the group.

Project In charge (Sr. V.P.): Interaction with contractors to detail out their requirements, obtaining signoffs and overseeing the tendering and negotiating process. Subsequently, during the execution stage, he monitors the project for cost, quality, and schedules and local administration.

The Project Manager (GM): The project manager audits the project during the drawing/design stage, for conformance to the stipulated process, and for adherence to agreed schedules. Subsequently, during the execution stage, he monitors the project for cost, quality, and schedules.

The Site In Charge(Manager/ Sr. Manager): The site in charge is responsible for achieving quality on site, interpreting the drawings and documentation on site, and raising reports on quality and scheduling. Assistant Site In charge (Asst. Manager/ Engineer): The role of a Assistant site In Charge is the day to day monitoring of site activities. Monitoring of day to day schedules and raw material quality fall within the scope of duties. He is responsible for Co-ordination between Vendors and the generation of daily and weekly status reports. . Planning dept.: Responsibility - Plan each and every work activity as per time limit given by the client making bar chart material schedule, making labor schedule, making plant, machinery schedule, achieving better quality in min cost is the main aim of this dept. Personnel structure & reporting system Jr. planning engineers also appointed for helping planning engineer and make, design basic plans, ideas and reports to planning engineer. 4. Execution dept.: Responsibility Execution of work as per drawing plans and specification is main work of execution dept. In this department Sr. execution

engineer and gang of Jr.Engg. is appointed. Personnel structure & reporting system - In execution department jr. engineer, supervisor under inspection of sr.execution engineer does checking of work progressing on site. Sr. engineer reports to execution manager.

5. Store dept.: Responsibility Inspection of material and goods coming on site, intimate or instruct to respective dept. (material ordered by) maintaining material inward, outward registers making GRN, storing and housing all material on site in proper place as per the site condition and handover material to contractor as per their requirement, keeping their records is the main work of store dept. Personnel structure & reporting system - In this dept store manager is the head of our site and storekeeper and store asst. will help and report to store manager.

6. Quality dept.: Responsibility Checking of all material coming on site ,testing of all the material as per requirement ( lab test ) Making or verifying mix design of material going to use for site execution ,inspection and checking of all activities of execution work regarding quality norms and condition, testing of work executed like sample testing ( cube testing ) non destructive testing making of audit report maintaining material testing, mix design, concrete

testing, audit test registers on site is the main work of this dept. Personnel structure & reporting system - Quality engineer is the head of this dept. Jr. engineer and quality assistance will help to Quality engineer.

7. Quantity surveying dept.: Responsibility Checking of all drawing and specification regarding site, estimating and surveying quantity of each work activity separately, calculating material required quantity, labor required quantity for each and every item is the main work of this dept. Personnel structure & reporting system - Quantity estimation engineer is the head of this dept. Jr. engineer will help to estimation engineer. All basic plans and calculation Jr. engineer make and report to sr. engineer under supervision of estimation engineer.

8.Account / Billing dept.: Responsibility Checking of all bill quoted by sub contractor or contractor (R.A. bills or final bills) as per their site executed work, making of payment of contractors and subcontractors is the main work of billing dept. Keeping total money expenditure regarding site, checking of departmental labor bill making payment of all site office related staff and helper is the main work of account dept. Personnel structure & reporting system - Billing engineer is the head of this dept. Jr. billing engineer will help to billing engineer. All bills

primarily checking with execution engineer making changes as per Jr. Engineer does requirement. In account dept. one Jr. Accountant help to account in charge.

9. Services Dept.: Responsibility Our site is huge type of construction therefore there is requirement of no of services delay due to absence of any services is very dangers. Arrangement of electrical supply, water supply, making or repairing of any construction equipment and machinery, electrical equipment, is the main work of this dept. Personnel structure & reporting system - Quantity In this dept. all types of skilled workers and supervisor like plumber, electrician, mechanic, welder, is working under supervision of Jr. Engineer and Jr. Engineer is directly report to the services engineer.

10. Safety and health Dept.: Responsibility Making safety working environment, safety all site worker and staff, improving and applying all safety instruction on site is the main work of this dept. Cleaning of site office maintains and cleans all site awareness, cleaning of labor camp periodically, making arrangement of good drinking water, good latrine / w.c. Facility on site is the main work of health dept. Personnel structure & reporting system - Safety engineer and Jr. Safety engineers work as per site condition and safety supervisor help to Jr.engineer.

11. Administration Dept.: Responsibility Supervision and arrange all site office requirements/ facilitys, supervision on site security guards, checking there registers, keeping site off inward and outward is the main work of this dept. Admin. In charge and there asst. are responsible for this work.

CORRESPONDENCE FILES MANAGEMENT

1.0

PURPOSE

To describe the management of the ICs files for the project.

Control is to be exercised over all files to ensure that correspondence is not lost, damaged or misplaced, to ensure that it can be readily located when required, and to ensure that it is made available to only those authorized to view and/or make use of it.

2.0

SCOPE

All ICs files on the CETL project.

3.0

DEFINITIONS

IC TL

= Independent Consultant = Team Leader

OM = Office Manager

= Secretary

4.0

ACTIONS

S. Actions No. Who Timing

1.

Establish

File

system

and

TL

At the beginning of the Project

Index based on Attachments A and B

2.

Create and Maintain the Files. Files to have number and name on the spine.

Upon receipt of File Index, including revisions.

3.

All

project

correspondence

Daily

S. Actions No. will be filed on a regular basis, on the correct files and in reverse sequence. chronological Who Timing

4.

Once filed, no correspondence shall be removed from a file unless for transfer to another file. In this event the removed correspondence will be

All Staff

Immediately

replaced by a sheet describing what has been removed and to which file.

5.

As TL creates new files the

TL

On the Day

S. Actions No. File Index is to be updated, and distributed by TL. Copies to TL, OM, S Who Timing

6.

Old copies to be destroyed

TL OM S

On the Day

7.

Files to be located

On shelves in conference

room

- OMs office files as

selected

mentioned

S. Actions No. in File - TLs office Index Who Timing

8.

Staff can suggest to TL the creation of new files.

All staff

As required

9.

No files to be removed from Project Office.

All staff

10.

Once a file gets too full, a new one is opened.

Place File Closed sheet in

On the Day

S. Actions No. closed file. (as per Attachment C) S Who Timing

Closed files to be stored in a separate area to alive files. Closed files to have spine label changed ascertaining to include number an to

indicate the part of the file.

11.

For Correspondence Files a separate item to appear on spine. From:. S To:. Routine

S. Actions No. Dates to be filled in Who Timing

5.0

RECORDS

Files File Index.

6.0

ATTACHMENTS

A: File System B: File Index C: File Closed Sheet

FILE SYSTEM

1.

The file system is divided into 2 main categories.

Correspondence Files contain original of all inward and outward correspondence in chronological order, and Subject Files which contain a copy of the correspondence.

The Subject Files are the working files used by staff.

2.

The file numbering system is divided into main sections (first two digits) and sub sections (next 2 digits). The system can be easily expanded as needed.

Main Sections:

01

Correspondence Files

02

Administration

03

Quality Assurance

04

Design Review

05

Construction Matters

06

Reports and Meetings

07

Programmes and Schedule

08

Financial and Budgets

09

Environmental and Safety

10

Issues, Variations, Claims, Extension of Time, Disputes.

11

Quality Assurance (BCEOM)

12

Operation and Maintenance.

13

Test Records

FILE INDEX

File No

File Name

CORRESPONDENCE

01.01 01.02 01.03

In Correspondence from NHAI Out Correspondence NHAI In Correspondence from CETL

01.04 01.05 01.06

Out Correspondence to CETL Correspondence with DESIGNER(In and Out) Correspondence Others (In and Out)

ADMINISTRATION

02.01 02.02 02.03 02.04 02.05 02.06

General Administration Consultancy Agreement Matters Personal Files Staff Attendance Records Petty Cash, Bank Account Vehicles, Drivers by Held

02.07

Office Furniture, Equipment, Supplies, Utilities. Manager Maintenance, Security

Office

02.08

Housing: Leases, Assets, etc List of IRC Codes, Standards, Books etc held at IC office

02.09 02.10 02.11 02.12 02.13 02.14 02.15

Backing up Electronic Data Invoices (NHAI) Phone Accounts, Hotel Accounts, Email account Memos and Circulars to Staff Short Term Specialists / Staff. Staff Meetings (Technical, Management) ICs Letters of Response: Issued & Outstanding

QUALITY ASSURANCE

03.01 03.02 03.03 03.04 03.05 03.06 03.07

Project Quality Plan (Controlled Copy No.) Project Quality Plan Correspondence, Uncontrolled Copy Daily Reports Internal Audits Staff Induction & Training On the Job Training (NHAI/Concessionaire) Check Lists Performa & Work Instructions

File No

File Name

DESIGN REVIEW

04.01

Design / Design Review, Status, Meeting Minutes, Site Visits, Policy, Reports (Design Review Report items on file 06.04).

04.02

Design Review: Highway Geometrics (includes Junctions, Intersections, Interchange Layouts)

04.03

Design Review: Structures(including culverts, hydraulics, hydrology, drains, RE Walls, Utility Ducts, Sign Gantrys)

04.04

Design Review Pavement (includes Traffic Reports, Pize Sensor Locations (etc)

04.05

Design Review: Tolling, Highway Traffic Management System, Telecommunication System.

04.05

A: Toll Systems B: Traffic System C: Telecom System D: Civil Works Interface & As Built Drawings

04.06

Design Review: Other Items (includes Geotechnical, Toll Plaza, Bus Stops, Median Openings, Truck Lay By, Road Signs, Road Markings, Pedestrian Facilities, Cattle Crossings, Petrol Stations, Barriers, Guard Rail, Access to Establishments, Lighting, Fencing, Landscaping & Plantation, Crash Barriers).

04.07

Working Drawings Submittals/Comments, GFC Drawings

CONSTRUCTION MATTERS (INCLUDING MIX DESIGNS)

05.01

General (includes site inspection reports & associated correspondence, Oil & Diesel spillage).

05.02 05.03 05.04

EPC Contract (EPC-I) EPC Contract (EPC-II) Earthworks (includes subgrade, trees, clear & grub, slope protection)

05.05 05.06 05.07 05.07A

Pavement (includes pavement marking) Structures & Drainage (includes Kerb, Road Furniture) Traffic Management & Road Safety Traffic Management, Checklists, Register etc.

05.08

Site Photographs, Quarterly Video

05.09

Right of Way, Land Acquisition, Services Relocations, Obstructions, Encumbrances, Approvals, No Objection Certificates, Applicable Permits, Archeological Item, Damage to OFC, use of PWD vacant land, stopping of work by Public etc.

05.10

EPC Contractors Request for Inspection/Testing (to Concessionaire)

05.11

Electric / Mechanical Systems, HTMS, Tolling, OFC, HDPE Duct.

05.12 05.13 05.14 05.15 05.16 05.17 05.18

Maintenance of Existing Road As Built Drawings Mix Designs (Portland Cement Concrete) Bituminous Mixes Non-Bituminous Mixes Toll Plazas Landscaping (including Tree Planting)

File No

File Name

REPORTS, MEETINGS, BRIEFINGS, REQUESTS FOR INFORMATION, MIS

06.01 06.02 06.03 06.04

Monthly Progress Reports Quarterly Progress Reports Monthly Inspection Reports Other Reports . Inception Report, Design Review Report, Project Completion Reports.

06.05 06.06 06.07 06.08 06.09 06.10 Meetings

Monthly Progress Reports (CETL) Detailed Engineering Design Report (CETL) Other Reports (CETL) Weekly Reports Management Information System Meetings with Concessionaire, Monthly Project Review

06.11

Meetings with NHAI, Review Meetings with Minister, Inspection by NHAI

06.12

NHAI Items. Briefings, Requests for Information, NHAI Reports, etc.

06.13

NHAI VIP references ,NHAI Hindi/Tamil Letters

PROGRAMMES, SCHEDULES & PROGRESS

07.01 07.02 07.03

Work Programmes, Schedules, Project Milestones Daily & Weekly Construction Programmes Progress Reports

FINANCIAL AND BUDGETS

08.01

Financial, Budgets, Escrow Account, Grant, LOC, Financial Closure, Toll Fee Notification, Toll Distance, etc.

08.02

Financial Progress, Payments to EPC Contractors, Reimbursement of NHAI, Statutory Auditor, NHAIs Project Expenditure Statements, IC Financial Expert / Analyst items.

ENVIRONMENT AND SAFETY MATTER

09.01 Quarterly

Environment Management Plan and Associated Matters,

Compliance Report 09.02 Project Safety Plans and Associated Matters (note that traffic management & associated safety items are filed on 05.07) in Construction Phase. 09.03 09.04 Workers Safety. Surveillance Record Sheets Project Safety Manual. Operation & Maintenance Phase

ADMINISTRATION (CONCESSION AGREEMENT)

10.01

Organization, Authorities, Responsibilities, Commencement, Offices, Amendments, Leave, Staff., Bid Document.

10.02 10.03 10.04 10.05 10.06 10.07 10.08 10.09 10.10

Issues Change of Scope Notifications & Orders. Claims Hindrance Register (including ICs verification reports) Insurances Legal Matters, Conditions Precedent. Construction Supervision Consultant Completion Certificate & related matters, Partial Tolling Disputes, Force Majeure Events

File No

File Name

QUALITY ASSURANCE (Concessionaire & EPC Contractors)

11.01

Correspondence on Project Quality Plans, Amendments, ICs

Methodology. 11.02 11.03A 11.03B 11.04 Surveillance Record Sheets Nonconforming Product Notifications (EPC Contract I) Nonconforming Product Notifications (EPC Contract II) Corrective Action Requests (Supervision Consultant, EPC

Contractors) 11.05 11.06 11.07 11.08 11.09 Nonconformances and Corrective Action Correspondence Test Results / Records Administration (Correspondence) Product Quality Audits Monthly Lists of Tests Witnessed Frequency of Testing

11.10 11.11 11.12

Project Quality Plan. . EPC- I Project Quality Plan.. EPC -II Project Quality Plan. . Concessionaire & Concessionaire's

Construction Supervision Consultant 11.13 11.14 QA Meetings Quality Audits

OPERATION AND MAINTENANCE

12.01 12.02

Operation and Maintenance Matters (Construction phase) Operation and Maintenance Matters (after COD), Operation & Maintenance Manual

TEST RECORDS
The actual test records / results, together, with a Summary of Tests numbers Sheet for a particular lot of work will be held in separate test records files. The details will numbers be place in these 3 files.

13.01 13.02

Summary of Tests; Roadworks : File Summary of Tests; Structures : File

13.03

Summary of Tests; Other works : File numbers

13.04 13.05 13.06

Test Records Summary Sheets, Roadworks Test Records Summary Sheets, Structures Test Records Summary Sheets, Other Works

Inspection & Tests for FOE Works