Construction Phase

Construction Phase

Important because:

(i) The quality of the completed project is highly dependent on the workmanship and management of construction

(ii) Majority of the total project budget and schedule is expanded during construction phase

(iii) 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 owner’s 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 ill-equipped, financially unstable or lack the experience to take up the job


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


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

Pre-bid conference 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)

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 Engineer’s 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

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

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

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 Contractor’s 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


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


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 manay 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

Construction Phase

Documents

Transcript of Construction Phase