Construction Phase

Important because:
(i)

(ii) (iii)

The quality of the completed project is highly dependent on the workmanship and management of construction Majority of the total project budget and schedule is expanded during construction phase More time and cost in construction imply that any delay or cost variance will have greater effect on the project

Construction Phase

Quality of construction depends on:

(i) Completeness and quality of contract documents (ii) Skilled labourers who have the skills necessary to produce the work (iii) Field supervisors who have the ability to coordinate the numerous activities (iv) Quality of material and appropriate tools and equipment that are used for construction (v) Effective management of the skilled workers and schedule and cost

Construction Phase

Objective of construction:

To build the project in accordance with the plans and specifications and within budget and on schedule and to the satisfaction of the owner To achieve the objective, there are three assumptions:

Assumptions for construction phase

(1) Scope: The design plans and specifications contain no errors and meet the owners requirements and appropriate codes and standards. (2) Budget: The budget is acceptable: i.e. it is what the owner can afford to pay and what the contractor can build it with a reasonable profit. (3) Schedule: The schedule is reasonable. i.e. short enough to finish when the owner needs it, but long enough for the contractor to do the work The above assumptions are reasonable but in practice they are often variances due to the nature of construction work.

Bidding or Tendering

Prequalification of prospective contractors or bidders Evaluation criteria:

Records of experience Financial capability Safety records General character and reputation in the industry

Tendering

Open tender or closed tender Advertisement for invitation to tender Bid bond or tender deposit to be provided during submission of tender. Bid bond is refundable to the unsuccessful contractors. For competitive bidding, obtain 3 to 5 bids Generally, the more the bids the more competitive the bidding i.e. lower bid price. However quality of bidders is more important the quantity. Bid period must be reasonable to ensure adequate time for the contractors to prepare proposals ( bids)

Too short some may decline Too long unnecessary delay in construction

Methods of Tendering

Open Tendering

An open invitation to contractors through newspaper or journal Advantage is competitive price Disadvantage is indiscriminate request for open tender may lead to poor quality work Contractors are sometimes illequipped, financially unstable or lack the experience to take up the job

Methods of Tendering

Selective Tendering

Contractors are short listed and invited to submit quotations Lists of contractors are either recommended by the consultants or invited to submit prequalification to tender Contractor chosen is usually the lowest bid Proper control of tenders to ensure that they are qualified in terms of experience, financially sound and have technical experience to undertake the job

Methods of Tendering

Negotiated or closed tendering

Under the contract, time factor is important Technical drawings and bill of quantity (BQ) are not prepared and the extent of the contract is not yet defined Continuation of the project of repetition of existing contract may be desirable

Tendering

Addendum ( or addenda)

Changes in bid package during the tender period to correct errors, clarify requirement or make changes Too many addenda --- frighten the bidders, create doubt, create risk in the mind of bidders thus increase bid price Clarify any unique aspect of work Explain special working conditions Answer questions of contractors All clarification at the meeting, not in the bid documents should be confirmed in writing to all bidders (use addenda)

Pre-bid conference

Bid opening

Closed or open Must have proper procedure to record Normally attended by the owner

Award of contract

Letter of intend or letter of award Signing of contract Engineers Instruction to start work Performance Bond, CAR, Contractor all risk insurance and third party liability

Performance Bond

Usually 10 % of contract amount Performance bond is a three-party instrument in which a bonding company ( termed surety) guarantees ( or bonds) to the owner that the project will be build by the contractor in accordance with the contract. If for any reason, the contractor becomes unable or unwilling to complete the contract, the surety will take steps to engage another contractor to complete contract or other steps specified in the instrument. The cost of performance bond depends on the size and risk of the contract and the reputation and expertise of the contractor.

Engineering Instruction (EI)

The Engineering may from time to time issue further drawings, details or written instructions related to:

The variation works (VO) Discrepancy between the contract documents Removal from site of any materials brought in by the contractor Removal of any person employed by the contractor who has misconducted himself Removal or re-execution of any works executed by the contractor Opening up for inspection of work covered up Making good of any defect during the defect liability period Any matter which the Engineer is empowered by the contract to issue instruction for the good of the works

Variation Order (VO)

Any changes during construction may be instituted through variation order in writing The changes may be for the following:

Increase or decrease the quantity of any work included in the contract Omit any such work Change the character or quality of any such work Change the level, line position and dimensions of any part of the works Execute addition work of any kind necessary for the completion of the works Clarify discrepancy between contract documents

Dispute Resolutions

Due to nature of construction projects it is almost certain that contractor, owner and designer will be involved in disputes There are four(4) methods of resolution of disputes:

Direct negotiations Mediation Arbitration Litigation

Direct Negotiations

Direct negotiation between parties in dispute Quickest and most economical Factual matters are discussed without the formality of legal formats Negotiator for each party must have authority to act for his company Success of the negotiation depends on the willingness of both parties to negotiate in good faith Can enhance good business relationships between the parties

Mediation

Used when direct negotiation failed Use an independent, objective person to assist in resolving the dispute Mediator has no authority to issue a final decision Mediation is voluntary Mutual agreement to have the mediator to serve as a catalyst to explore alternative solutions To gather facts, clarify discrepancies and to persuade the parties to adopt flexibility in their stance

Arbitration

It is similar to mediation except the arbitrator has the authority to issue a final binding decision that cannot be appealed by the disputing parties Submission of a dispute to a mutually agreed impartial third party whose decision is legally binding and enforceable Arbitration clause is provided in the Conditions of Contract 5 steps procedure

Decision by the arbitrator is made within 30 days from the close of the hearing

Agreement to arbitrate Selection of arbitrator Preparation of hearing Hearing of disputes The award

Litigation

Resolution of disputes by lawsuits Adopt the legal formality of the court system Most costly, time consuming and complex method for resolution of dispute Legal counsels who follow the formality of the legal judicial system are used to represent the interest of the parties Fianl resolution of dispute is determined by a court of law

Extension of time

Contractor must apply through written notice of the causes of delay when work is going to be delayed Engineer will have to consider granting extension of time Engineer shall estimate the length of the delay beyond the completion date and approve in writing a fair and reasonable extesion of time Extension of time can be granted based on the following reasons

Force majeure this means any event which happens beyond the control of man Exceptional inclement weather this refers to the weather condition which deviates from the normal annual weather trend. Loss or damage occasioned by fire, lightning, explosion, storm, flood, ground subsidence etc.

Extension of time

Any instruction given by the engineer provided such instructions are not issued due to any default of the contractor or his subcontractors. Contractor not having received in due time from the engineer necessary instructions, drawings, levels etc Delay in giving possession of site Action due to strike, affecting any trades employed by the works Delay on the part of the artisans, trademen or other engaged by the employer Contractors inability to procure any material for reason beyond his control which he could not reasonably have foreseen at the closing of tender Delay on the part of the nominated supplier

Quality Control

Quality control is part of a quality assurance program that has for many years been recognized as the inspection and testing of materials and workmanship to see that the work meets the requirements of the drawings and specifications Quality is the responsibility of all parties, though principal responsibility is placed on the contractor

Quality Control

What can we do to pass quality control? What can we do to get pass inspection? What can we do to finish the project that we can be proud of that meets the specifications and satisfies the owner? Without right attitude, even the best planned quality-control program cannot be successful

Major objectives of Quality Control

To ensure the completed work meets the specifications To reduce customers or clients complaints To improve the reliability of products or work produced To increase customers or clients confidence To reduce production costs

Evolution of quality control

Inspection

A process of checking what is produced is what is required Two forms --- quantifiable e.g. level, dimensions, or open to interpretation e.g. cleaniness, safety

Quality control by sampling

Involve inspection to stages in the development of goods and services to ensure that they are carried out to satisfy requirements Done on sampling basis dictated by statistical methods e.g. taking cube tests

Evolution of quality control

Quality assurance

Emphasize defect prevention To ensure that specifications are consistently met. Fit for Purpose and Right first time are the principles of quality assurance ISO 9000 (BS 5750) certification Document of quality control process and always follow the process to ensure consistency of product i.e ensure that quality is built into the production sustem

Evolution of quality control

Total quality management

Based on the philosophy of continuously improving of quality of goods or services and customer satisfaction Everyone in the company should be involved and committed TQM ensures that its goods and services meet the following criteria:

Be fit for purpose on a consistently reliable basis Delight the customer with the service Quality of product is so much better than the competitors that customers want it regardless of prices There is a mechanism for continuous improvement on the quality of goods

Job site safety

Safety is an important part of project management just as are planning, scheduling, estimating, cost control and other project work Concern of safety must be shown at all levels and each phase of the project Accidents not only affect workers but also their families The economic costs, liability consequences, regulatory requirements and the image of a company all show the importance of safety related to a project Construction, by the nature of the work, involves many potential hazards to workers and equipment, such as heat, noise, wind, dust, vibrations and toxic chemicals

Job site safety

The Occupational Safety and Health Administration (OSHA) was enacted by the Federal Government as a regulatory agency to ensure safety of workers It applies to all parties involved in the project Project manager must work closely with his team members to include safety in every aspect of the project Safety should start at the top level of an organisation and by words and actions, be infused in each level of management through to the workers at the job site Accident costs include medical costs premiums for compensation benefits, liability and property loss and delay, (cost of loss time) Safety and productivity are two related parts for higher job performance. The safer the workers, the quicker they work, the higher the productivity

Common causes of accident

Negligence of workers Unsafe working conditions Improper erection of scaffolding Inadequate safety precautionary measures such as warning sign, barricades, safety belt etc. Insufficient lighting Indifference to safety rules and regulations Failure to check the safety of handing equipment Inexperience workers Inadequate design

Steps to prevent accidents

Institute job site safety by management and monitoring safety as part of the requirement of the project management Form safety committee to monitor the safety requirements at site Install adequate warning signs and lightings Use of safety gears at the site Briefing / training of safety requirement to all workers at site Regularly check and maintain the handling equipment in safe working order Maintain order and cleanliness at site Follow proper design and erection procedure for scaffolding Adopt good / standard engineering codes of practices in construction