Contractual procedure

ASSIGNMENT DASUN ISHARA MAHABADUGE

NG/HNDQS/09/42 |

e r u d e c o r p l a u t c a r t n o C

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Contractual procedures

Acknowledgement

I would like to express my deepest appreciatio to all t!ose w!o pro"ided me t!e possi#ility to complete t!is report$ % special &ratitude I &i"e to my 'otractual (rocedure lecturer )a*or +,&$- .a*ira .a*ira ,dirisi&!e w!ose cotri#utio i stimulati& su&&estios ad ecoura&emet eco ura&emet !elped me to iis! t!e report successully$ 1urt!ermore I would like to t!aks to 1iace '$ 3D 3D w!o &a"e t!e teder documets to complete t!is assessmet$

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'otets

ask 05..................................... ......................................................... ........................................ ............................................................ ........................................ .... 3 Itroductio...................................... .......................................................... ........................................ ........................................ ...................................... .................. 3 5$5 (arties i"ol"ed ........................................ ........................................................... ....................................... .............................................. .......................... . 4 Descri#e t!e roles ad cotractual resposi#ilities resposi#ilities o t!e parties ...................................................4 1.2 Process...................................... .......................................................... ....................................... ................................................ ............................. .......... 

5$2 (rocumet selectio ....................................... ........................................................... ........................................ .......................................... ...................... ! 5$4 'otractual %rra&emets....................................... .......................................................... ........................................ ..................... ............ 1" 'ompare t!e mai cotractual arra&emets o t!e cotract ......................................................1" 5$6 (rocumet ad 'otractual issues ..................................... ......................................................... ............................................. ......................... 12 5$6$2$ Descri#e !ow t!ose procuremet issues are addressed usi& t!e orm o cotract o t!e cotract$ 14 5$6$7 Dieretiate Dieretiate iteratioal iteratioal met!ods o procuremet utlii& utlii& t!eir ad"ata&es ad"ata&es ad disad"ata&es disad"ata&es ....................................... .......................................................... ....................................... ........................................ .................................................. .............................. . 1!

5$8 ime 'ost ad Quality )aa&emet ....................................... ........................................................... ....................................... ................... 2# 5$8$5 'ompare t!e pro*ects plaed plaed pro&ramme sc!edule wit! t!e actual$ ,"aluate t!e implicatio i mplicatio o #e&i a!ead o t!e pro&ramme pro&ramme or #e!id t!e sc!eduled sc!eduled time or completio o o t!e cotract$ ..............2# 5$8$2 'ompare t!e pro*ect costs i t!e cotext o pre:cotract teder ad ial accout sta&es o t!e cotract$..................................... ......................................................... ........................................ ............................................................. ......................................... 2! 5$8$7$ Descri#e !ow ;uality is deied ad t!e measures t!at are a"aila#le wit!i t!is cotract to assume its compliace$ ...................................... .......................................................... ........................................ .................................................... ................................ 2$ 5$8$4$ %aly
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Task 01

Introduction ur pro*ect is t!e (roposed Housi& Sc!eme at Seeduwa "illa&e Seeduwa$ I t!is pro*ect t!ese are t!e #asic details o t!e costructio pro*ect$ Scope and duration of the project

'ostructio o !ouse +9 caledar mot!-

The ocation

Seeduwa

The principle parties in!ol!ed Client

%SS$ Geeral )aa&er H, 1IN%N', '$3D >,%3 ,S% ,S %, , DI.ISIN N$9= H?D>, (%>@'>N> '3)A 2 Consultant

$S,N%@% (,I>I,S %$I%$ +S/3'H%>,D %>'HI,' 50% )%33I@% )%B%H% ,)(3,> >%D )$3%.INI%

Contractor HND in QS

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'S@ ,N,>(>IS,S +(.- 3D 278/4 CAI3,, (S @, >%D NGGD%

Initial contract sum

>s$ 2522=E9$E7 "inale contract sum

>s$ 225094=$E0

Procurement method

raditioal met!od

"orm of contract # SAD 02

1.1 Parties in!ol!ed

$escri%e the roles and contractual responsi%ilities of the parties

Client

'liet is t!e primary part i t!is procedure$ Sice eac! "eture is #e&is wit! a eed o udertaki&$ %t t!e poit w!e discussi& t!e customers part$ (riciple attri#utes o !is part are •

Aei& i c!ar&e o t!e executio o t!e task rom t!e uderlyi& t!ou&!t to usa&e

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c!oosi& t!e players re;uired i all p!ases rom outlie t!rou&! de"elopmet to lo& !aul admiistratio

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,suri& t!at t!e ecessities o #uildi& cliets/cliets are met

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,suri& t!at t!e pertiet aut!ori
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)ay likewise #e a&et ad possi#le proprietor

It *ustiies sayi& t!at i "arious ad"ata&e trade de"elops t!e piece o cliet may i like maer #e part$ ,dea"ors ca !a"e umistaka#le accomplices ad uders eac! o w!om will !a"e "arious essetials or #ei& re;uired amid t!e time spet c!a&e ad ad"acemet$ It may ma y #e "alua#le to expressly cosider t!e recommedatios or t!e edea"or o w!o !adle t!e parts o F'lietF ad FSuper"isorF at t!e impro"emet sta&e$ !e cliet !as a key ke y part i t!e process sice t!ey will ame directs edorse work to !appe a&ree costs ad timeta#le ad a&et specialists to t!e edea"or$ Some expects will !a"e a &at!eri& ailiatio or social e"et as t!e cliet !owe"er may ecouter issues wit! t!e piece o ,mployer as a result o its lia#ilities$ >a&e or structures toward t!e ed o ad"acemet t!ere ou&!t to #e a speciic trade o w!o will !adle t!e 'liet ad ,mployer parts i t!e midst o t!e system$ Consultant

'osultat is worki& i t!e or&ai
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Ispecti& t! t!e co cotractual wo worker

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De"e De"ellop t!e co coi& i&ur urat atiio wit! wit! tempo empora rary ry wor worker ker

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(rep (repar ari i& & t!e t!e deli delica cate te reco record rdss ad ad ot!e ot!err aut! aut!or orit itat ati" i"ee rep repor orts ts

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'otract or or&ai
Contractor

'otractor is t!e perso w!o maa&es a costructio ad t!e perso w!o employs e mploys ew workers$ Hes t!e oe w!o cotrols t!e costructio ad t!e perso w!o ows t!e costructi& #usiess$ !ere are suc! a lar&e um#er o o#li&atios o a cotractor$ He !olds t!e resposi#ility o iis!i& t!e work #eore t!e &i"e time$ So !e eeds to maa&e !is la#orers urt!ermore !e is t!e perso w!o arra&i& !ow to #ri& out t!e task t!rou&! all &uidelies &u idelies ad directios$ He &eerally ou&!t to cosider a#out t!ose laws ad directios w!ic! rele"at to de"elopmet "etures$ &uantit' sur!e'or

!e ;uatity sur"eyor is t!e idi"idual i c!ar&e o maki& sese o exactly w!at a de"elopmet "eture is &oi& to cost$ !ey !a"e dieret parts as well particularly esuri& t!at de"elopmet expeses ad &eeratio are o"ersee as eecti"ely as could reasoa#ly #e expected$ •

@eep t!e pro*ect o time

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@eep t!e pro*ect o&oi& wit! t!e #ud&et

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)aa&i& t!e all iacial records o t!e site

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,suri& t!at de"elopmet expeses ad creatio are o"ersee as proicietly as could reasoa#ly #e expected

Site engineer

% site site e&ieer is i c!ar&e o utili
Super"isi& all workers ad *uior oicers

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'!ecki& drawi&s ad keep t!e work o&oi&

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%aly
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(repari& record drawi&s ad tec!ical reports

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Quality cotrol

Project manager

!e role o t!e pro*ect maa&er ecompasses may acti"ities icludi& •

(lai& ad Deii& Scope

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%cti"ity (lai& ad Se;ueci&

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>esource (lai&

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De"elopi& Sc!edules

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ime ,stimati&

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'ost ,stimati&

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De"elopi& a Aud&et

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Documetatio

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'reati& '!arts ad Sc!edules

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>isk %alysis

1.2 Process $etermine the se(uence of e!ents of this contract from design to construction process to meet the re(uirements of the client $esign ) pre construction stage

)aki& a desi& Arie selecti& t!e cosultats %ter &et t!e prere;uisites o t!e customer %rc!itecture %rc!itecture must airm t!e ecessities #eore outlii& ad ext stride is reco&i
(lai& o reasoa#le coi&uratio : It implies as idicated # y t!e customers ecessities e&ieeri& will outlie a applied outlie o t!e #uildi&$ Aeore eteri& t!e arra&emet o drawi&s must sur"ey t!e ac;uisitio course t!at c!ose oe is reasoa#le or t!at$ $esign de!elopment

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Impro"emet o applied pla ad c!a&i& t!e outlie as idicated #y t!e customers prere;uisites doe i t!is sta&e$ Su#mitti& set o compositioal compositioal drawi&s is doe i t!is Desi& De"elopmet sta&e$ Technical Te chnical design

Speciali
I t!is sta&e must &et appro"al rom t!e muicipal coucil ad t!e ot!er aut!orities$ Tender document

I t!is sta&e prepari& t!e AQ ad ot!er teder documets selecti& appropriate teder type ad calli& or teders are doe$ *o%ili+ation

!is mea !ad o"er t!e pro*ect to t!e particular cliet$

Construction stage

'ostructio sta&e !as two mai processes 5$ Su#s Su#str truc uctu turre I t!e su#structure ollowi& e"ets are doe i a se;uece Site i"esti&atio • Site clearace • ,xca"atio • 1ormwork • 3ayi& o oudatio • 2$ Supe Supers rstr truc uctu ture re I t!e superstructure ollowi& e"ets are doe 1orm work • Structural rame • Balls • Istallatio o doors ad widows • HND in QS

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Istallatio o #uildi& ser"ices >oo sla# Steel roo rame >ooi& 'eili& >oo plum#i&

1.2 Procument selection Anal'+e the Selection of procument method depending on different project !aria%les of the project

I t!e early sta&es o t!e pro*ect t!e 'liet s!ould #e de"elopi& t!e (rocuremet Strate&y or t!e pro*ect i cosultatio wit! t!e () ad t!e Desi& eam$ eam$ !is decisio re;uires to #e made i cosideratio o t!e o#*ecti"es o t!e pro*ect p ro*ect ad will "ary rom pro*ect to pro*ect$ !ere are 7 types o procumet routes i costructio idustry$ 5$ radit aditiioal oal 2$ Desi Desi& & ad ad #uil #uild d 7$ urkey ,isk distri%ution

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B!ilst i"esti&ati& t!e most appropriate (rocuremet Strate&y or t!e pro*ects t!e 'liet must cosult wit! t!e () ad Desi& eam$ !ey will !a"e i"alua#le iput ad expertise to make i maki& t!e ial decisio$ $ifferent project !aria%le

I t!e early sta&es o t!e pro*ect t!e 'liet s!ould #e de"elopi& t!e (rocuremet Strate&y or t!e pro*ect i cosultatio wit! t!e () ad t!e Desi& eam$ eam$ !is decisio re;uires to #e made i cosideratio o t!e o#*ecti"es o t!e pro*ect$ p ro*ect$ B!e t!e selecti& a procumet route t!ere some acts to cosider$ %s %s ollowi& •

(ro*ect Si
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'liet ype

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ime

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'ost

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Quality

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%ccouta#ility

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'ertai o (ro*ect #*ecti"es

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)arket 'oditios

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>isk$

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%sset owers!ip$

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1iaci&

I t!is pro*ect +(roposed Housi& Sc!eme at Se eduwa .illa&e .illa&e Seeduwa- t!e cliet !as selected traditioal procumet route to complete t!e pro*ect$ I t!is met!od cliet !as to appoit a desi& team ad iitiates wit! costructio process$ !e desi& is completed ully #eore t!e teder process commeces$ It aords t!e 'liet a &reat deal o cotrol o"er t!e ;uality ;ua lity speciicatio ad cost !owe"er t!e timescale is le&t!eed to ac!ie"e t!e completio o t!e desi& ad t!e 'liet maitais t!e risk i terms o t!e 'osultats Desi& ad ay uoresee items e$&$ &roud coditios as well as aili& to #eeit

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rom t!e cotractors iput o #uild a#ility #y appoiti& t!e 'otractor oce t!e desi& is completed$ %s t!e cotractor !as o resposi#ility or t!e desi& t!e 'liet is resposi#le or ay mistakes or omissios i t!e desi&$ %lt!ou&! some risk is s!ared wit! t!e cotractor t!e ma*ority o risk is take o #y 'liet ad t!e success o Desi& eam eam ad t!e cotractor$

1.- Contractual Arrangements

Compare the main contractual arrangements of the contract

pen Tendering

I ope tederi& ayoe allows to su#mit a teder to supply re;uired &oo ds or ser"ices$ !at t!e cotract is #ei& tedered &eerally a ad"ert will #e placed &i"i& otice$ o su#mit a teder oeri& a e;ual opportuity to ay or&ai
%ccordi& to t!e Selecti"e ederi& oly i"ited suppliers ca #e su#mitted t!eir teders$ !ere is a pre: selected list w!ic! is called #y t!e cliet$ B!e t!e selected list prepari& #y t!e particular cliet cosider a#out t!e si
/egotiated tenders

I e&otiated tederi& process cliet ad cosultat cosidered ad decided w!ic! cotractors are t!e #est suits or types o costructio work$ rusted cotractors i"ited to #id or costructio pro*ect #y mail or direct cotact$ %ter &et t!eir #id determie cotractors keeess ad possi#le cotri#utio to t!e costructio team$ Ne&otiated teders mostly use to maiteace pro*ect or icomplete pro*ects$

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Contractual procedures Serial tendering

!is types o teder cotractor usi& to su#mit costs or carryi& out work usually ot a&aist a particular pro*ect #ut a&aist sample Aills o Quatity Quatity Borks Borks Sc!edule or price or a sample structure i t!e kowled&e t!at ot!ers o a similar similar ature will #e udertake$ udertake$ !e rates &i"e i suc! documets will orm t!e #asis o costi& or uture work udertake w!ic! will #e measured ad "alued #y #ot! parties to t!e cotract$ !e most commo types o costructio cotracts used i t!e costructio idustry iclude 5$ it price price cotract cotract J !is !is cotract cotract type is #ased #ased o aticipate aticipated d ;uatities ;uatities o items items w!ic! w!ic! are couted i t!e pro*ect i additio to t!eir uit prices$ !e ial price o t!e pro*ect depeds upo t!e ;uatities re;uired to carry out t!e work$ Geerally t!is cotract is suita#le oly or costructio ad supplier pro*ects w!ic! i"ol"e accurate idetiicatio o dieret types o items #ut ot t!eir um#ers i t!e co tract documets$

2$ 3ump sum cotrac cotractt J der t!is t!is cotract cotract type type t!e e&ieer e&ieer or cotract cotractor or a&rees a&rees to perorm perorm t!e speciied ad descri#ed pro*ect or a ixed price$ !is type o cotract is also reerred to as a K1ixed (rice 'otractL ad is "ery ote used i e&ieeri& cotracts$ % 3ump Sum or 1ixed (rice cotract is appropriate w!ere scope ad sc!edule o t!e pro*ect are deied suicietly t!us allowi& t!e cotractor or e&ieer to estimate t!e costs o t!e pro*ect$

7$ 'ost 'ost plus cotrac cotractt J !e cost cost plus cotrac cotractt is a a&reeme a&reemett w!ic! i"ol"e i"ol"ess t!e #uyers #uyers coset to pay t!e complete cost or material ad la#or i additio to t!e amout or cotractor o"er!ead ad proit$ !is cotract type is a"ored w!ere t!e scope o work is !i&!ly ucertai or idetermiate i additio to t!e types o la#or material ad e;uipmet #ei& similarly ucertai i ature$

4$ Iceti"e Iceti"e cotracts cotracts J !e iceti"e iceti"e cotracts cotracts eature eature compesat compesatio io #ased o t!e cotract cotracti& i& ad/or e&ieeri& perormace i accord wit! a a&reed tar&et J sc!edule ;uality ad #ud&et$ Iceti"e cotracts commoly all ito oe o two commo cate&ories 1ixed (rice Iceti"e 'otracts ad 'ost >eim#ursemet Iceti"e 'otracts$

HND in QS

13


6$ (erc (ercet eta& a&ee o cos costr truc ucti tio o cot cotra ract cts: s: !is !is cotr cotrac actt type type is commo commo  or or e&i e&ie eeri eri& & cotracts$ !e compesatio i"ol"ed i t!ese cotracts is #ased o a perceta&e o t!e cost o costructio$ In this Proposed Housi& Sc!eme at Seeduwa "illa&e Seeduwa Consul Consultan tantt is )r$

$S,N%@% $S,N%@% (,I>I,S and ,N,>(>IS >IS,S ,S +(.+(.- 3D$ Select Selecti"e i"e and Contr Contrac actor tor 'S@ ,N,>( tederi& is t!e process used i t!is pro*ect$

1. Procument and Contractual issues

1..1. plain and e!aluate the issues associated with procument and contractual procedures of the contract.

si& procuremet met!od it will speed up t!e deli"ery o t!e pro*ect #y mer&i& acti"ities$ (rocuremet system is a or&ai
How are t!e uds to #e o#taied

•

How is desi& to #e carried out o ut

•

How is costructio/productio to #e arra&ed

•

B!o is to !a"e t!e maa&erial maa&er ial role to o"ersee or super"ise t!e pro*ect

•

B!o is to use t!e iis!ed #uildi&/product

!ese aspects cat #e cotrolled w!e we  ot maa&e t!e pro*ect$ Aeore selecti& a appropriate procuremet met!od t!e 'liets must aaly
HND in QS

14


#ased o t!eir eeds t!e procuremet c!oice mi&!t dier$ So t!at issues ca #e arise w!e we ot maa&e t!ese aspects$ Aeore arisi& t!e issues t!e parties w!o are i"ol"e i a pro*ect must #e cosider a#out t!e •

!e ature o t!e pro*ect

•

!e scope o t!e works

•

)easure o cotrol #y t!e 'liet

•

%ccouta#ility

•

Start ad completio times

•

%ssessmet o risks +%s!wort! 2057-

!ere are some sources ca #e idetiy to arise t!e issues i procuremet met!ods$ project si+e

Small si
pe tederi& will &eerally secure or t!e cliet t!e lowest possi#le price rom a cotractor$ !is !is is t!e e"idece t!at competitio co mpetitio !elps to reduce costs t!rou&! eiciecy M lowers t!e price to t!e cliet$ time from %rief to hando!er

!e time a"aila#le will also iluece t!e type o costructio tec!i;ue w!ic! mi&!t #e used$ !e ma*ority o t!e employers oce t!ey !a"e made t!e decisio to #uild wat t!e pro*ect to #e completed co mpleted as ;uickly as possi#le$ Accounta%ilit'

%ccouta#ility is iterliked wit! iace ad a emp!asis o payi& t!e smallest price or t!e completed pro*ect$ %ccouta#ility actors to #e cosider suc! as cotractor selectio cotractual procedure "alue o moe y$

HND in QS

1%

Contractual procedures design3 function and aesthetics (ualit' assurance organi+ation and responsi%ilit' project compleit'

se o e"aluate t!e issues i procuremet M cotractual procedure$ 

o esta#lis! a clear strate&ic directio



o deli"er #est "alue #y reduci& #ud&et expediture ad pro"idi& more or less as part o cotiuous re"iew ad impro"emet



Icrea Icrease se t!e propor proportio tio  o t!e 'oucil 'oucils s sped a&ais a&aistt cotra cotracte cted d ad appro" appro"ed ed suppliers

>IS@SM ISS,S %SS'I%,D BIH (>'>,),N 

'laim 'laimss ad paymet paymetss made made o earl early y accom accompl plis is!m !met etss were were #loat #loated edOO t!e t!e cot cotrac racto tor r e"etually a#adoed t!e pro*ect



e ece cess ssar ary y wor work k ite items ms



Ico Icorr rrect ect deduct deductio ios s o rete retet tio io  rom rom pro&r pro&res esss payme paymet tss due due to ail ailur uree to "alid "alidat atee coormace wit! pro*ect sc!edule



%d"ace %d"ace paym paymet et ot ot recou recouped ped or ot ully ully recoupe recouped d



Aiddi& Aiddi& Documets Documets were ot issued issued accordi& accordi& to to t!e re;uired re;uired sc!edul sc!edulee



'otrac 'otractt awarde awarded d to a cotra cotracto ctorr w!o ail ailed ed to pay pay taxes taxes



Not allowed allowed eou&! time or procuremet procuremet procedures procedures w!e de"elopi de"elopi& & pro*ect pro*ect

speciall' in this contract %ased on the measure 4 pa' method so Pa'ment is made for (uantities of work completed and measured during the month. These contracts are %ased on drawings 4 prices. The contractor can claim additional pa'ment for an' changes in the work content. So Tender price is usuall' increased %' !ariations and claims. HND in QS

1#

Contractual procedures 1..2. $escri%e how those procurement issues are addressed using the form of contract of the contract. Contract management

!e purpose o cotract maa&emet is to esure t!at all parties to t!e cotract ully meet t!eir respecti"e respecti"e o#li&atios o#li&atios as eiciet eicietly ly ad eecti"e eecti"ely ly as possi#le possi#le deli"eri& deli"eri& t!e #usiess #usiess ad operatioal outputs re;uired rom t!e cotract ad pro"idi& "alue "a lue or moey$ It also protects t!e ri&!ts o t!e parties ad esures re;uired perormace w!e circumstaces c!a&e$ !e key clauses i ay costructio cotract are t!ose w!ic! impact o ime • •

'ost

•

Quality

!e cliets o t!e costructio idustry are primarily cocered wit! ;uality time ad cost ad yett t! ye t!ee ma ma*o *ori rity ty o co cost stru ruct ctio io  pr pro* o*ect ectss ar aree pr proc ocur ured ed o t! t!ee #a #asi siss o ol oly y tw two o o t! t!es esee parameters amely time ad cost$ ime cost ;uality i traditioal procuremet met!od ime/'ertaity o ime •

Not t!e astest o met!ods$

•

Desira#le to !a"e all iormatio at t!e teder sta&e$

•

'osider two sta&es or e&otiated tederi&$

'ertaity o cost •

'ertaity i cost #eore commitmet to #uild$

•

'lear accouta#ility ad cost moitori& at all sta&es$

Quality •

'ompre!esi"e desi& sets out ;uality stadards 'otractor is w!olly resposi#le or ac!ie"i& ;uality o site

der t!e terms o t!e particular cotract t!e costructio maa&er was descri#ed as #ei& t!e oly perso o t!e pro*ect wit! wit! access to all o t!e t!e iormatio ad t!e "arious pro&rammes$ pro&rammes$ He was t!e oly a"ail a"aila#le a#le perso w!o could make a accurate report to t!e 'lie 'liett at ay oe time o #ot! t!e curret status o t!e (ro*ect ad a d t!e likely eects #ot! o timi& ad o costs$

HND in QS

1


!e cotractors mai o#li&atio uder ay costructio cotract is o course t!e costructio ad completio o t!e works wit!i t!e speciied time or completio ad i accordace wit! t!e cotract$ Its ot!er o#li&atios uder u der t!e >ed ad ?ellow ?ellow Aooks iclude •

1itess or purpose J esuri& t!at its desi& will meet t!e e mployers re;uiremets$

•

Desi& resposi#ility$ resposi#ility$

•

'arryi& out t!e works i a proper ad workmalike maer wit! properly e;uipped acilities ad o:!a
•

(ro"idi& t!ose acilities ad c!oosi& t!ose materials$

•

>esposi#ility or met!od o worki&$ !e cotractor also !as a o#li&atio to perorm certai admiistrati"e ad ot!er uctios to acilitate perormace icludi& pro"idi& iormatio eeded or t!e executio ad completio o t!e works ad t!e issui& o otices o tices icludi& or e"ets icreasi& cost or completio time$ !e eecti"e admiistratio o a 1IDI' costructio cotract is essetial to esure t!at time ad moey claims are protected$ It is importat to write otices i clear ad ue;ui"ocal terms J do ot !it or isiuate$ @eepi& eecti"e records will assist cotractors ad employers to pro"e t!eir etitlemets ad ea#le #ot! parties to accurately a scertai t!eir positios i t!e e"et t!at a dispute arises$

Contractor5s claims

% key o#li&atio uder t!e >ed ad ?ellow ?ellow Aooks is t!e re;uiremet to ser"e otice i respect o a claim or a extesio o time or additioal paymet$ !e cotractor must &i"e otice o its itetio to claim as soo as possi#le ad o later t!a 2E days ater t!e cotractor #ecomes aware or s!ould !a"e #ecome aware o a e"et$ It must t!e su#mit its ully detailed claim wit!i 42 days o #ecomi& aware o a e"et or circumstace t!at &i"es rise to a claim$ 6ariations and adjustments

si& t!e >ed ad ?ellow ?ellow Aooks a "ariatio or c!a&es to t!e works ca arise #y •

% employers istructio$

•

% employers re;uest or a proposal$

•

% cotractors "alue e&ieeri& proposal$

HND in QS

1!


.ariatios may !a"e a ad"erse impact o t!e cotract or o t!e &uaratees i place or t!e pro*ect or example t!rou&! a reductio i t!e saety or suita#ility o t!e works$ !is s!ould #e moitored ad la&&ed up immediately$ % cotractor could !a"e lia#ility e"e w!ere it is simply ollowi& t!e e&ieers istructios$ % cotractor is o#li&ed to comply wit! t!e employers re;uest or a "ariatio uless it caot readily o#tai t!e ecessary &oods re;uired or t!at "ariatio$ $ela' and etension of time

!e cotractor will #e lia#le or dama&es i t!e actual completio date o t!e works occurs ater t!e a&reed completio date uless t!e delay is caused #y a matter or w!ic! a extesio o time is a"aila# a"aila#le le ad t!e cotra cotracto ctorr compli complies es wit! wit! t!e otice otice ad ot!er ot!er re;uir re;uireme emets ts uder uder t!e cotract$ !e cotractor may #e etitled to a extesio o time w!ere t!ere is •

% "ariatio or additioal work istructed$

•

,xceptioally ad"erse weat!er$

•

oreseea#le s!orta&es i t!e a"aila#ility o persoel or &oo ds$

•

Delay caused #y t!e employer$

•

% cause o delay uder ay ot!er clause i t!e cotract$

•

oreseea#le delay caused #y complyi& co mplyi& wit! pu#lic aut!ority procedures$ !e cotractor must strictly strictly comply wit! t!e otice re;uiremets re;uiremets uder t!e cotract cotract icludi& &i"i& all ecessary iormatio re;uired i relatio to t!e claim$ Note t!at miutes o a meeti& or a cotractors pro&ress report are ulikely to costitute proper otice$ The importance of record#keeping

@eepi& ade;uate records is essetial to •

,sta#lis! etitlemets to moey ad time$

•

Deed su#cotractor claims$

•

'omply wit! t!e cotracts reporti& o#li&atios$ Decide at t!e outset !ow ad w!at records s!ould #e kept esuri& o course t!at t!is also complies wit! t!e cotract$

HND in QS

1$


'ompare wit! t!e procuremet met!od used or t!is pro*ect M ad"ice o c!a&es w!ic! will make t!e cotract more eiciet$ I t!is t!is costru costructi ctio o pro*ec pro*ectt partie partiess are a&reed a&reed to proceed proceed wit! t!e lump lump sum cotract cotract i traditioal procuremet met!od$ !e cotractor udertakes to carry out a deied amout o work i retur or a a&reed sum$ !is ca #e a ixed amout ot su#*ect to recalculatio i w!ic! case t!ere would #e o opportuity or t!e employer to make "ariatios$ ump sum contracts mi&!t #e less appropriate w!ere speed is importat or w!ere t!e ature o t!e works is ot well deied$ t!er orms o cotract t!at mi&!t #e more appropriate iclude measuremet cotracts +use +used d w!er w!eree t!e t!e work workss ca ca #e descr descri# i#ed ed i reas reaso oa# a#le le deta detail il #ut #ut t!e t!e amou amout t caot- cost reim#ursemet cotracts +used cotracts +used w!ere t!e ature o t!e works caot #e properly deied at t!e outset ote used w!ere a immediate start o site is re;uired-$ Disput Disp utes es u uder der 1I 1IDI DI' ' >e >ed d a ad d ?ell llow ow Ao Aook ok co cotr trac acts ts s! s!ou ould ld #e re ree err rred ed to a Di Disp sput utee %d*udicatio Aoard +D%A-$ % D%A ca #e created at t!e start o t!e pro*ect or w!e a dispute occurs$ It is a iormal process w!ic! ecoura&es party i"ol"emet ad reco&i
1..7 $ifferentiate international methods of procurement3 utlining their ad!antages and disad!antages 8hat is Procurement9 Procurement descri%es the merging of acti!ities undertaken %' the client to o%tain a %uilding. Procurement *ethods Can %e classified as:

5- raditi raditioal oal procurem procuremet et +Separate +Separated d M corporate corporate systemsystem2- Desi& Desi& M Auild Auild procuremet procuremet +Ite&rated +Ite&rated systemsystem7- )aa )aa&em &eme ett proc procur urem emet et Traditional Procurement *ethod

I t!e traditioal approac! t!e employer accepts a ccepts t!at desi& work will &eerally separate rom costructio cosultats are appoited or desi& ad co st cotrol ad t!e cotractor is resposi#le or carryi& out t!e works$ !is resposi#ility exteds to all workmas!ip ad materials ad icludes all work #y su#cotractors ad suppliers$ !e cotractor is usually

HND in QS

2"


appoited #y competiti"e tederi& o complete iormatio #ut may i ecessary #e appoited earlier #y e&otiatio o t!e #asis o partial p artial or otioal iormatio$ !ere are t!ree types o cotract uder u der t!e traditioal procuremet met!od 5$ 3ump sum cotracts : w!ere t!e cotract sum is determied #eore costructio starts ad t!e amout is etered i t!e a&reemet$ 2$ )easuremet cotracts J w!ere t!e cotract sum is accurately kow o completio ad ater re:measuremet to some a&reed #asis$ 7$ 'ost reim#ursemet J w!ere t!e cotract sum is arri"ed at o t!e #asis o t!e actual costs o la#our plat ad materials to w!ic! is added a ee to co"er o"er!eads ad proit ump Sum Contract

!e cotractor udertakes to carry out a deied amout o work i retur or a a&reed sum$ !is ca #e a ixed amout ot su#*ect to recalculatio i w!ic! case t!ere would #e o opportuity or t!e employer to make "ariatios$ !e sum is likely to #e su#*ect to limited luctuatios usually to co"er tax etc c!a&es ot oreseea#le at t!e time o tederi&$ !e sum may #e su#*ect to luctuatios i t!e cost o la#our plat ad materials J t!e so called luctuatios pro"isio$ >eco"ery may #e use o  a ormula or #y c!ecki& i"oices$ %d"ata&es 

3ess iacial risk to ,mployer$



Hi&! iacial risk to 'o 'otractor$



)ii )iim mum super uper"i "issio io rel relat ated ed to ;ua ;uali lity ty M sc! sc!ed edul ule$ e$



'ot 'otra ract ctor or is moti moti"at "ated ed or or earl earlie ierr compl complet etio io  ad ad #ett #etter er per perorm ormac ace$ e$

Disad"ata&es 

'!a&es are diicult ad costly$



Desi& to #e iali


,ac! pro*ect is ui;ue$



Aiddi& is is expesi"e M le&t!y$



'ot 'otra ract ctor or may icl iclude ude !i&! !i&! uc ucer erta tai ity ty wit! wit!i i eac! eac! Sc!e Sc!edu dule le o .alue lue ite item$ m$

*easurement contracts

HND in QS

21


)easuremet cotracts are also reerred to as Pre:measuremet cotracts$ !is is w!ere t!e work w!ic! t!e cotractor udertakes to do caot or some &ood reaso #e accurately measured #eore tederi&$ !e presumptio is t!at it !as #ee su#statially su#statially desi&ed ad t!at reasoa#ly accurate picture o t!e amout ad ;uality o w!at is re;uired is &i"e to t!e tederer$ (ro#a#ly t!e most eecti"e measuremet cotracts i"ol"i& least risk is to t!e employer are t!ose #ased o drawi&s wit! approximate ;uatities$ %d"ata&es 

,arly pro*ect start possi#le$



1lex 1lexi# i#il ilit ity y c!a c!a& &es es ca ca #e #e adop adopte ted d as t!e t!e pro* pro*ec ectt is is car carri ried ed out out$$



'omp omplete de desi& de deiitio o ot re re;uir uired$



Suita#le or competiti"e #iddi&$

Disad"ata&es 

1ia 1iall cos costt ca ca #e #e di diere erett ro rom m t!e t!e cot cotrract act sum sum



'a lead or colict



%ddi %ddittioa ioall sit sitee st sta a eed eeded ed or or ;ua ;uallity ity co cotr trol ol

'ost reim#ursemet !ese are sometimes reerred to as P'ost (lus cotracts$ !e cotractor udertakes to carryout a idetermiate amout o work o t!e #asis t!at t!ey are paid t!e prime or actual cost o la#our plat ad materials$ I additio t!e cotractor recei"es a a&reed ee to co"er maa&emet o"er!eads ad proit$ ;'%rids of the cost reim%ursement contracts include:

'ost:plus perceta&e ee J t!e ee c!ar&ed is directly related to t!e prime cost$ It is usually a lat rate perceta&e #ut it ca also #e o a slidi& scale$ Howe"er t!e

HND in QS

22


cotractor !as o real iceti"e to work at maximum eiciecy ad t!is "ariat is oly likely to #e cosidered w!ere t!e re;uiremets are particularly idetermiate precotract$



'ost:plus ixed ee J !e ee to #e c!ar&ed is tedered #y t!e cotractor$ !is is appropr appropriat iatee pro"id pro"ided ed t!at t!e amout amout ad type type o work work is lar&el lar&ely y orese oreseea#l ea#le$ e$ !e cotractor !as a iceti"e to work wo rk eicietly so as to remai wit!i t!e a&reed ee$



'ost:plus luctuati& ee J !e ee "aries i proportio to t!e dierece #etwee t!e estima estimated ted cost ad t!e actual prime prime cost$ cost$ !e assumpti assumptio o is t!at t!at as t!e latter latter cost cost icreases t!e cotractors supposed ieiciecy will result i a ee w!ic! decreases$ !is approac! depeds upo t!ere #ei& a realistic c!ace o ascertaii& t!e amout ad type o work at teder sta&e

% traditioal lump sum cotract re;uires t!e productio o a complete set o documets #eore teders are i"ited$ %de;uate %de;uate time must #e allowed or t!is$



!e !e tradi traditi tioa oall proc procur urem emet et met! met!od od assu assume mess t!at t!at desi& desi&  will will #e appo appoi ite ted d #y cos cosul ulta tat ts s ad ad it does does ot ot &ee &eeral rally ly imply imply t!at t!at t!e t!e cot cotra ract ctor or !as !as ay desi desi& & o#li&atios$ I t!is is to #e t!e case express terms s!ould #e icluded i t!e cotract$



%s t!e employer appoits cosultats to pro"ide ad"ice o all matters o desi& ad cost t!ey t!ere#y retai total cotrol o"er t!e desi& ad ;uality re;uired$

HND in QS

23

Contractual procedures 

!e cotractor depeds !ea"ily upo t!e ecessary iormatio ad istructios rom t!e arc!itect #ei& issued o time$ !ere is a risk o claims i t!ey are delayed$



!e employe employerr decide decidess w!ic! w!ic! specia specialis listt irms irms t!e cotra cotracto ctorr is to use use alt!ou& alt!ou&! ! t!e cotractor may re;uire certai sae&uards relati& to perormace$



%ll matters o "aluatio ad paymet are t!e resposi#ility o t!e employers cosultats$



I it is impossi#le to deie precisely t!e ;uatity or ature o some o t!e work it is still possi#le to adopt a dopt a traditioal met!od o t!e #asis o approximate ;uatities pro"isioal sums or cost reim#ursemet$ Howe"er t!is is less t!a a perect solutio t!e uller ad more accurate t!e iormatio t!e earer to t!e relati"e saety o t!e lump sum approac!$

Traditional Procurement *ethod Ad!antages

$isad!antages



3ia#ility due to competiti"e selectio



!e process will take more time to produce t!e ull cotract documetatio re;uired



%t t!e award o t!e cotract price certaity



'ompari& to t!e ot!er procuremet types t!e o"erall pro*ect duratio ca #e lo&er



I t!ere are ay "ariatios to t!e cotracts t!ey are comparati"ely easy to or&ai


!e 'otractor caot iput ay ideas ito t!e desi& or i to t!e plai& o t!e pro*ect



3ow eder (rice



>isk o desi& errors lies wit! t!e cliet

$esign 4 =uild procurement $esign and =uild comes i "arious orms #ut is typiied #y t!e cotractor taki& #ot! desi& ad costructio resposi#ility$ I ite&rated DMA cotracti& t!e cotractor de"elops t!e desi& ad costructs t!e #uildi& #ased o a set o re;uiremets pro"ided #y t!e employer$ I cotrast o"ated DMA cotracti& is closer to t!e traditioal model i so ar as t!e employers desi& team de"elops t!e desi& #ut is t!e o"ated to t!e cotractor w!o takes t!e desi& resposi#ility ad t!e costructs t!e #uildi&$ FurkeyF or ,(' cotracts are a type o DMA cotract #ut urkey ad DMA are ot syoymous$ HND in QS

24


Desi& ad costruct met!ods oer certaity o t!e cotract sum ad #ri& cost #eeits$ !e close ite&ratio o desi& ad costructio met!ods ad t!e relati"e reedom o t!e cotractor to use t!eir purc!asi& power ad market kowled&e k owled&e most eecti"ely ca pro"ide a cliet wit! a competiti"e price$ % um#er o "ariatios o desi& ad costruct exist w!ic! iclude 

$irect J i t!is case o competitio is o#taied i teders$ Some appraisal o t!e possi#le

competitors may #e made #eore tederi& #ut oly oe teder is o#taied$ 

doc umets t!at are prepared to ea#le se"eral Competiti!e J teders are o#taied rom documets cotractors to oer competitio i desi&s ad i prices$



$e!elop and construct J cosultats desi& t!e #uildi& re;uired to a partial sta&e

ote reerred to as Pscope desi& t!e competiti"e teders are o#taied rom a select list o cotractors to de"elop ad complete t!e desi& ad costruct t!e #uildi&$ !e amout o cosultat desi& ca "ary depedi& o t!e cliets eeds$ 

Package Package deal J t!is met!od is ote used w!ere t!e cotractors competi& will use a

si&iicat part o t!eir ow or aot!er proprietary #uildi& system or t!ey will #e costructi& "ariatios o a repetiti"e t!eme$ !ere is limited scope or io"atio w!e t!is met!od is used$ Some cotractors may oer to id a site to sell mort&a&e or lease t!eir product o#tai appro"als etc$ at a risk to t!emsel"es or at a c!ar&e to t!e cliet$ 

/o!atio /o!ation n J sometimes reerred to a desi& o"ate ad costruct$ !is is w!ere t!e

cotractor takes o"er rom t!e cliet a pre"ious cotract or t!e desi& work completes t!e desi& ad costructs t!e work$
I desi desi& & ad ad cos costr truc uctt cot cotra ract cts s i t!eo t!eory ry t!er t!eree is usua usuall lly y a si& si&le le poi poitt o resposi#ility$ !e employer t!ereore !as t!e ad"ata&e o oly o irm to deal wit! J ad oe irm to #lame i t!i&s &o wro&$ I practice t!e employers re;uiremets are detailed to t!e extet t!at t!e cotractors desi& cotri#utio ad lia#ility is dimiis!ed$



!e employer lacks cotrol o"er t!e detailed desi&O !owe"er !owe"er t!is mi&!t #e accepta#le accepta#le w!ere #road lies o t!e sc!eme are satisactory ad t!e detail relati"ely less importat$

HND in QS

2%


'ostructio work ca #e started early as a &reat deal o detailed desi& ca proceed i parallel$ Howe"er it is maily t!e cotractor w!o #eeits rom t!is operatioal lexi#ility$



>esposi#ility or completi& o time rests w!olly wit! t!e cotractor$ !ere s!ould #e o risk o claims #ecause o t!e alle&atios t!at iormatio rom t!e employer is late$ !is !is o#li&a o#li&atio tio  o t!e cotra cotracto ctorr to #e respo resposi# si#le le or t!e low low o t!eir t!eir ecess ecessary ary iormatio is oe o t!e most attracti"e eatures o desi& ad costruct$



!ere is &reater certaity o cost e"e to t!e extet t!at i re;uired resposi#ility or i"esti&ati& site ad su#soil coditios ca #e made etirely t!e cotractors$ %y c!a&es i t!e employers re;uiremets ca aect t!e cotract sum !owe"er ad are likely to pro"e costly$



It is always ad"isa#le to ask or iormatio a#out w!o t!e cotractor iteds usi& as a desi&er$ %de;uate %de;uate proessioal idemity isurace s!ould always #e a re;uiremet$ !e !e empl employ oyer er s!ou s!ould ld #e ad"i ad"ise sed d to appoi appoit t cos cosul ulta tat tss to pro"i pro"ide de ad"ic ad"icee o t!e t!e preparatio o t!e re;uiremetsO it is importat importat t!at ade;uate time is allowed or t!is to #e doe ade;uately$

$esign 4 =uild procurement Ad!ant Ad!antages 

%d"ata&e o deali& wit! oe si&le or&ai


Aeore costructio #e&is price certaity ca #e o#taied

HND in QS

$isad!antages 



o t!e stadard cotracts t!at are a"aila#le desi& resposi#ility is limited

o t!e cocept desi& ad re;uetly #eore t!e detailed desi&s are complete cliet is re;uired to commit towards t!em at a early sta&e

2#


!e pro*ect time ca #e reduced due to t!e o"erlappi& o desi& ad costructio acti"ities



'lie 'liet ts reduc reduced ed a#il a#ilit ity y to cot cotro roll desi&



'otractor ca iput !is ideas i to t!e desi& ad plai& ad t!ere#y e!aced costructa#ility or t!e rele"at pro*ect



Diiculty i e"aluatio



'liet c!a&es to pro*ect scope ca #e expesi"e



se o a &uarat &uarateed eed maximum maximum price wit! a sa"i&s optio split ca stimul stimulate ate io"a io"atio tio  ad reduce reduce time time ad costO

*anagement procurement Se!eral !ariants of management procurement forms eist3 which include> 

)aa&emet cotracti&



'ostructio maa&emet



Desi& ad maa&e$

!ere are some su#tle diereces #etwee t!ese procuremet met!ods$ I t!e case o maa&emet cotracti& t!e cotractor !as direct co tractual liks wit! all t!e works cotractors ad is resposi#le or all costructio work$ I costructio maa&emet a cotractor is paid a ee to proessioally maa&e de"elop a pro&rammed ad coordiate t!e desi& ad costructio acti"ities ad to acilitate colla#oratio to impro"e t!e pro*ects costructa#ility$

*anagement contracting

!e cliet appoits a idepedet proessioal team ad also a maa&emet cotractor$ !eir i"ol"emet at pre:costructio sta&es will #e as ad"iser to t!e team ad duri& costructio t!ey will #e resposi#le or executi& t!e works usi& direct works cotracts$ Bit! Bit! t!is type o cotract it is possi#le to make a early start o:site ad ac!ie"e early completio$ Aecause o  its

HND in QS

2


lexi#ility lexi#ility it allows t!e cliet to c!a&e t!e desi& duri& costructio #ecause drawi&s ad matters o detail ca #e ad*usted ad iali
!e maa&emet cotractor is selected ater a careul selectio process ad is paid a maa&emet ee$ !e #asic dierece is t!at works cotracts alt!ou&! arra&ed ad admiistered #y t!e maa&emet cotractor are direct #etwee t!e cliet a d works cotractor$ $esign and manage

% desi& ad maa&e strate&y is similar to maa&emet cotracti&$ der a desi& ad maa&e cotract t!e cotractor is paid a ee ad assumes resposi#ility ot oly or works cotractors #ut also or t!e desi& team$ The common !ariations of design and manage are Contractor J a pro*ect desi& ad maa&emet or&ai
$isad!antages



>educed pro*ect duratio



'liet risk is !i&!



,arly i"ol"emet



'ommitmet prior to ull desi&



%ccommodates later desi& decisio



'lose time ad iormatio cotrol re;uired



1lexi#ility or c!a&es i desi&



Io Iorm rmed ed ad ad proa proact cti" i"ee clie cliet t is re;uired



>oles risks ad resposi#ilities or all parties are clear



'liet loses direct cotrol o desi& ;uality w!ic! is ilueced #y t!e costructors

HND in QS

2!


1.? Time3 Cost and &ualit' *anagement

1.?.1 Compare the project@s planned programme schedule with the actual. !aluate the implication of %egin ahead of the programme or %ehind the scheduled time for completion of the contract. ime 'ost ad Quality

ime : ime ime i de"elopmet de"elop met is #roke dow do w to its littlest details$ !e measure o time re;uired to iis! e"ery last part o a udertaki& is aal yesources depeda#ly cost cas! so t!e two are exc!a&ea#le rom "arious perspecti"es$ B!e we discuss t!e expese o a task we are discussi& w!at s!ould #e coected or rele&ated to worki& as ar as cas! ad exertio wit! a speciic ed &oal to &et t!i&s &oi&$ !is ca #e assets like la#or !ardware ad materials$ !ese could #e claimed strai&!torwardly #y t!e mauacturer or #e as cotractual workers ad outer suppliers$ Quality J !ere are umerous se&mets to ;uality aywa y oe especially imperati"e oe is t!e extet o a udertaki& +re;uetly called t! e Scope o Bork Bork or Speciicatios-$ !is is a umistaka#le particular proclamatio wit! respect to w!at !as #ee coseted to #e perormed/accomplis!ed i #uildi& your ew !ome$ %t %t t!e ed o t!e day : t!e a&reemet determiatios ad t!e drawi&s t!at we !a"e si&ed$ Getti& a task ri&!t is a exercise i careul cotrol$ ime ime expese ad ;uality ted to pull i "arious !eadi&s ad all !a"e di"erse da&ers !owe"er a ruitul "eture eeds to strike t!e ri&!t !armoy #etwee eac! o t!e t!ree$ HND in QS

2$


 #uildi& pro*ects i particular t!e t!ree actors mea 5$ 2$ 7$

!e !e atu ature re o o t!e t!e work worki i& & or or prom prompt pt pra practi ctica call eeds eeds ad ad use use or or t!e t!e dura durati tio o o its its lie$ !e !e time time re;u re;uir ired ed or or t!e t!e work worki i& & to to #e pla plae ed d mau maua act ctur ured ed itt itted ed out out ad prepared or occupatio$ !e !e expe expes see o t!e t!e de"e de"elo lopm pmet et mate materi rial alss ad ad all all rela relate ted d cost costss ico icorp rpor orat ati i& & cost cost #ei& used$

%ccomplis!i& t!e ri&!t ad*ust o "alue time ad cost or t!e task is critical to t!e ac!ie"emet o t!e udertaki&$ !e !armoy #etwee t!ese t!ree compoets will s!it as idicated #y t!e speciic ecessities o t!e "eture ad t!eir eect o eac! ot!er will #e pretty muc! as iteresti& to t!e tasks circumstaces$ %s t!e task &roup t!ey s!ould remem#er re mem#er a t!ou&!t o t!e dieret situatios t!at could emer&e i time ;uality or expese were to #e or&aiepairs ad upkeep$ 1ixed price cotract !e altered "alue cotract is a lawul uderstadi& #etwee t!e "eture associatio ad a su#stace to &i"e products or admiistratios to t!e udertaki& at a cocurred o cost$ !e a&reemet ordiarily poits o iterest t!e ature o t!e produ cts or admiistratios t!e plai& expected to #olster t!e udertaki& ad a d t!e cost or co"eyi& merc!adise merc!ad ise or admiistratios$ !ere are a ew "arieties o t!e settled "alue cotract$ 1or items ad merc!adise ad admiistratios w!ere t!e extet o work is clear ad  ot lia#le to c!a&e t!e altered "alue cotract oers a aticipated expese$ !e o#li&atio re&ardi& o"erseei&

1.?.2 Compare the project costs in the contet of pre#contract3 tender and final account stages of the contract.

I t!e e"et t!at we ot !a"e a decet spedi& pla #oss cat pass *ud&met o cotract propositio spedi& pla will costatly !elpul or #oss or &etti& &etti& a t!ou&!t re&ardi& t!e de"elopmet ad o"ersee cas! urt!ermore it will imperati"e or temporary worker or deal wit! t!eir #eeit ad e"eryt!i&$

HND in QS

3"


%lo& t!ese lies pro*ect spedi& pla is costatly ac;uaited wit! udertaki& extesio pla ad t!e expese o t!e task$ Setti& a dou#tul spedi& pla ca mea task i<
1.?.7. $escri%e how (ualit' is defined and the measures that are a!aila%le within this contract to assume its compliance.

How ;uality is deied ad measures !e measures t!ose are a"aila#le wit!i t!is cotract to assume its compliace$ • • •

1uctioality Impact Auildi& ;uality

HND in QS

31


B!at is uctioality % clear uderstadi& o t!e uctioal ad p!ysical re;uiremets o a pro*ect is essetial to esuri& its success$ % cliets itet to de"elop a pro*ect is deri"ed rom a eed a purpose or missio ad a desired result$

!ere are 7 mai type i uctioality • • •

Space %ccess ses

B!at is impact 'ostructio !as lo& #ee reco&i
r#a ad social ite&ratio Iteral e"iromet 1orm M material '!aracter M io"atio

B!at is #uildi& ;uality 'ostructio pro*ects are a #alace #etwee cost time ad ;uality$ It is possi#le to !a"e !i&! ;uality ad low cost #ut at t!e expese o time ad co"ersely to !a"e !i&! ;uality ad a ast pro*ect #ut at a cost$ I #ot! time ad moey are restricted t!e ;uality is likely to to suer$ Hi&! ;uality is ot always t!e primary o#*ecti"e or t!e clietO time or cost may #e more importat$ It is oly realistic to speciy a "ery !i&! stadard o ;uality i t!e #ud&et is a"aila#le to ac!ie"e t!at stadard$ !ere are 7 mai type o #uildi& ;uality • • •

(erormace ,&ieeri& 'ostructio

HND in QS

32

Contractual procedures ;ow time3 cost and (ualit' ha!e %een %alanced in the contract.

ime ;uality ad cost

How time cost ad ;uality #alace i t!e cotract

HND in QS

33


&ualit'

!e ;uality o t!e #uildi& or immediate uctioal eeds ad use t!rou&!out its lie Time

!e time eeded or t!e #uildi& to #e desi&ed #uilt itted out ad ready or occupatio Cost

!e cost o t!e costructio materials ad all related expeses icludi& cost i use

1.?.-. Anal'+e other clauses making reference to form of contract for their interpretation.

!e key to t!e success o t!e pro*ect is ac!ie"i& t!e ri&!t #alace o time cost ad ;uality$ !e #alace #etwee t!ese t!ree actors will "ary accordi& to t!e particular re;uiremets o t!e pro*ect ad t!eir impact o eac! ot!er will #e *ust as ui;ue to t!e pro*ects circumstaces$

HND in QS

34


%s t!e cliet o t!e pro*ect !e will eed to keep i mid a idea o t!e "arious scearios t!at could arise i time ;uality or cost were to #e prioritiemem#er t!at missed deadlies ca sometimes add to cotractor costs ad may mea cliet !a"e to compromise i t!e cost o materials w!ic! will i tur aect ;uality$

Good pro*ect ad deli"ery teams must support to cliet i ay #alaci& o time ;uality ad cost$ % &ood desi& team s!ould #e a#le to work wit!i a reasoa#le set #ud&et t!e disciplie o limited #ud&et ca actually stimulate creati"ity ad io"atio$ %d soud iacial maa&emet ote &oes !ad i !ad wit! deli"eri& a !i&! ;uality pro*ect to deadlie$ I assessi& t!e cost o a pro*ect must cosider t!e costs o"er t!e etire lie o t!e #uildi& rat!er t!a *ust t!e desi& ad costructio costs$ !is is kow a s whole life costi&$ % successul #uildi& pro*ect will attempt to meet t!e eeds o a #uildi& o"er is etire lietime$

HND in QS

3%


5$= t!er Stake!olders

1..1 ist the different organi+ations in!ol!ed in the construction industr' and e!aluate the purpose and acti!ities of them on this contract. I a de"elopmet pro*ect t!ere are a ew &at!eri&s re;uired i t!e iis!i& o t!e task$ !ese &at!eri&s ca #e rom eit!er &eeral society a rea or t!e pri"ate se&met$ !e key &at!eri&s are t!e customer temporary worker ad specialist$

'ustomer is t!e idi"idual w!o is at irst cotri#uti& t!e cas! to &i"e t!e cotractual worker to ire up all t!e work ad i t!e customer is e&lecti& to &i"e cas! t!e specialist may &i"e t!e cas! or t!e temporary worker will pay t!e cas! to #e&i t!e task ad &et t!em rom t!e customer #eore lo&$ !ese are t!e uderlyi& parters$ % task cat cotiue wit!out satisactory iaci& ad t!e expese o &i"i& suiciet iaci& ca #e etirely "ast$ Hece t!ou&!tuless re&ardi& "eture accout is a imperati"e o task admiistratio perspecti"es$ %ccout is additioally a worry to alterate associatios re;uired i a task or example t!e &eeral cotractual worker ad material suppliers$ less a proprietor promptly ad totally takes care o t!e expeses #rou&!t a#out #y e"ery mem#er t!ese associatios ace iaci& issues o t!eir ow$ %t t!e poit w!e discussi& eac! de"elopmet as a primary parters t!ere !a"e customer w!o c!iely speak to t!eir cas! to t!e de"elopmet temporary worker ad t!e ad"isor$ 1or a de"elopmet or&ai
HND in QS

3#

Contractual procedures *unicipal Council

aki& aki& permit ad coset or t!e de"elopmet de" elopmet taki& edorsemets to t!e arra&emets must do t!rou&! )uicipal 'oucil$ %dditioally muicipal c!am#er &at!eri& t!e de"elopmet wasta&e rom t!e site$ /ational 8ater =oard B/8S$=

I t!is a&reemet took water supply t!rou&! NBSDA to t!e etire #uildi&$ Ce'lon lectricit' =oard BC=

',A will dissemiate t!e power to t!e B!ole #uildi& Sri anka Telecom BST

1or telecom admiistratio customer proessed to utili
>e&ularly ater culmiatio o t!e #uildi& ordiarily #uildi& will protect i some protectio participatio i ay lame or ay ormal peril #rou&!t o to t!e #uildi& it will &uaratee it$ %dditioally #aks likewise icludi& wit! t!e #uildi& de"elopmet so typically customers taki& ad"aces rom a #ak ad cotri#uti& so #ak additioally icludi& wit! t!is$ aw firms

I t!e e"et t!at ay lawul circumstaces !appeed 3aw irms are re;uired$

HND in QS

3

Contractual procedures 1..2 Anal'+e the contractual differences %etween nominated and other t'pes of contractors and e!aluate the forms of contracts regarding suppliers.   

Domestic su#:cotractor Nomiated su#:cotractor Named su#:cotractor

$omestic Su%#Contractor

% Domestic Su#:cotractual worker is c!ose ad coected wit! strai&!torwardly #y t!e udametal temporary worker to do a speciic exc!a&e t!is will mostly icorporate stadard exc!a&es or example #ricklayers rooers &roud specialists !adyme electrical ad plasterers$ !ey mi&!t #e work *ust or supply a d alter$ I all cases t!ey s!ould #e edorsed #y t!e desi&er$ !e !e modeler !as t!e ull power to dismiss ay su#cotractor asked or #y t!e temporary worker$ !e a&reemet does ot percei"e t!e priciple temporary workers ow su#cotractors ay work completed #y t!ese is take as t!ou&! it were doe #y t!e primary cotractual worker$

/ominated Su%#Contractor

% Nomiated su#cotractor is picked #y t!e desi&er customer or specialist to do certai parts o t!e work$ !ey are desi&ated o t!e cosumptio o a (S or (' etirety icorporated ito t!e a&reemet #ills$ !e selected su#cotractor &oes ito a a&reemet wit! t!e primary cotractual worker yet t!ere mi&!t #e a security &uaratee #etwee t!e desi&ated su#cotractor ad t!e customer$ !e priciple temporary worker !as o o#li&atio to co"ey our work t!at is plaed to #e doe #y a desi&ated su#cotractor /amed Su%#Contractor

% amed su#:cotractual worker will re&ularly #e looked o"er a rudow o su#cotractors &a"e #y t!e dratsma$ !e modeler may uris! t!e temporary worker wit! a rudow o o less t!a t!ree su#cotractors to #rowse or doi& speciic parts uder t!e C' 06 stadard or moderate #uildi& cotracts$ !e udametal temporary worker may wit! edorsemet rom t!e plaer add su#cotractors to t!e rudow$ I spite o t!e act t!at t!e su#cotractor is amed t!ey are a local su#cotractor uder t!e a&reemet$

$ifference %etween /ominated Su%#Contractor and $omestic Su%#Contractor HND in QS

3!


%ssi&ed su#:cotractual worker some#ody t!e ,mployer !as told t!e temporary worker !e s!ould utili
Contrast %etween /ominated Su%#Contractor and /amed Su%#Contractor

Named su#:cotractual worker dele&ated #y t!e customer ad amed su#:temporary workers pricipally desi&ated #y t!e si&iicat cotractual worker$

Named su#:cotractual worker primarily cotracts wit! t!e t!e udametal temporary worker to supply or alter ay materials or products or execute work rami& part o t!e primary cotract$ Ae t!at as it may amed su#:cotractual worker is dele&ated or ui;ue works like pipes electrical ad so ort! or amed su#cotractors istallmets will doe #y t!e si&iicat temporary worker ad selected su# cotractual workers istallmets will doe #y t!e customers strai&!tly$ 1orms o cotracts re&ardi& suppliers 1ixed price cotract !e altered "alue cotract is a lawul uderstadi& #etwee t!e "eture associatio ad a su#stace to &i"e products or admiistratios to t!e udertaki& at a cocurred o cost$ !e a&reemet ordiarily poits o iterest t!e ature o t!e produ cts or admiistratios t!e plai& expected to #olster t!e udertaki& ad a d t!e cost or co"eyi& merc!adise merc!ad ise or admiistratios$ !ere are a ew "arieties o t!e settled "alue cotract$ 1or items ad merc!adise ad HND in QS

3$


admiistratios w!ere t!e extet o work is clear ad  ot lia#le to c!a&e t!e altered "alue cotract oers a aticipated expese$ !e o#li&atio re&ardi& o"erseei& !e work to address t!e issues o t!e "eture "e ture is cetered aroud t!e temporary worker$ !e !e task &roup tracks t!e ;uality ad timeta#le ad"acemet ad"a cemet to &uaratee t!e cotractual co tractual workers will meet t!e "eture eeds$ Dnit !alue contract

I a uit "alue &et t!e work to #e perormed is #roke ito dieret parts typically #y de"elopmet exc!a&e$ !is a&reemet sort depeds o expected amouts o t!i&s w!ic! are icluded t!e udertaki& otwit!stadi& t!eir uit costs$ !e last cost o t!e task relies o t!e amouts re;uired to do t!e work$ 1or 1 or istace paiti& is re&ularly doe o a s;uare oot premise$ it "alue cotracts are rom time to time time utili
!e expese i additio to cotract is a assertio w!ic! icludes t!e purc!asers a&ree to pay t!e complete expese or material ad work otwit!stadi& t!e sum or temporary worker o"er!ead ad #eeit$ !is a&reemet sort is a"ored w!ere t!e extet o work is exceptioally ;uestioa#le or "a&ue otwit!stadi& t!e sorts o work material ad &ear #ei& compara#ly du#ious i ature$ Here t!e temporary workers # eeit is set at a altered sum$ I t!e e"et e "et t!at &euie expeses are lower t!a t!e assessmet t!e proprietor keeps t!e reser"e uds$  t!e o c!ace t!at &euie expeses are !i&!er t!a t!e assessmet t!e proprietor must pay t!e extra sum$ !e upside o a expese i additio to cotract is t!at as a rule t!e task will #ri& a#out t!e #uildi& t!at was ima&ied re&ardless o t!e possi#ility t!at costs ru !i&!$ !e de"eloper is less iclied to compromise or coted or less costly materials$ Incenti!e contract

)oti"atio cotracts are re;uetly utili
HND in QS

4"

Contractual procedures Task 2

$escri%e the needs of clients in %oth pu%lic and pri!ate sectors.

Client

,"ery costructio pro*ect #e&is wit! a #ri&!t idea rom a cliet t!at is t!e ela#orated o ad executed #y a team o desi&ers arc!itects ;uatity sur"eyors ad t!e e&ieers$ ly oce idi"idual o#*ecti"es &oals ad parameters are deied ca t!e pro*ect commeces$ @ey to maa&i& a di"erse team o ser"ice pro"iders successully is to #e uprot wit! t!em t!em re&ardi& t!e "aria#le priorities ad expectatios o t!e respecti"e cliet$ derstadi& t!at e"ery cliet is ui;ue will &uide t!e approac! o all participats #eore ay &roud is #roke$ !ere are 2 mai types o cliets$ 5$ (u#l (u#lic ic cl cliet ietss 2$ (ri" (ri"at atee clie cliet tss

Pu%lic clients

(u#lic cliet #ase icludes 'etral Go"ermet 3ocal %ut!orities !e Natioal Healt! Ser"ice (olice Statios rasport 'olle&es/i"ersities '!emists/(!armacies ad Doctor Sur&ery/Healt! 'eters$ Pu%lic limited companies

% pu#lic limited compay suc! as a #ak is oe t!at trades o t!e stock exc!a&e ad is owed #y its s!are!olders$ % #ak could !a"e !udreds o #rac!es t!at all eed to #e maitaied ad looked ater ad up&raded #y reur#is!met rom time to time$ It is also likely to !a"e a lar&e !ead;uarters i a ma*or city w!ic! will eed similar work doi&$ !e Go"ermet t!e Go"ermet ca issue work at t!ree dieret le"els t!rou&! local coucils de"ol"ed admiistratios +Bels! +Bels! %ssem#ly %ssem#ly ad Scottis! (arliamet- ad cetral &o"ermet$ &o "ermet$ 3ocal coucils !a"e duties to costruct ad maitai ser"ices$ !ey ca issue work suc! as t!e ollowi& costructi& sc!ools maitaii& !i&!ways replaci& widow maitaii& !ouses carryi& out #uildi& works o coucil properties$ De"ol"ed admiistratios ca istruct ma*or capital works suc! as t!e ew parliamet pa rliamet #uildi&s or irastructure works$

HND in QS

41


'etral &o"ermet departmets suc! as t!e )iistry o Deese +)D- or #odies suc! as t!e Hi&!ways %&ecy or Natioal Healt! Ser"ice purc!ase a &reat deal o costructio ser"ices usually usi& itermediate compaies w!o speciali
I rder to esure a successul c!oice o #uildi& procuremet system +costructios- t!e cliets #rie must #e clear compre!esi"e compre!esi"e ad cotai %ccouta#ility +(u#lic sector- Quality Quality at t!e ri&!t place ad ri&!t price$ Speedy Speed y costructios ew desi&ed #uildi& maximum tax #ee its Eo!ernment

!e Go"ermet ca issue work at t!ree dieret le"els t!rou&! local coucils de"ol"ed admiistratios +Bels! +Bels! %ssem#ly ad Scottis! (arliamet- ad cetral &o"ermet$ 3ocal coucils !a"e duties to costruct ad maitai ser"ices$ !ey ca issue work suc! as t!e ollowi&$ •

costructi& sc!ools

•

maitaii& !i&!ways

•

replaci& widows

•

maitaii& !ouses

carryi& out #uildi& works o coucil properties De"ol"ed admiistratios ca istruct ma*or capital works suc! as t!e ew parliamet #uildi&s or irastructure works$ 'etral &o"ermet departmets suc! as t!e )iistry o Deese +)D- or #odies suc! as t!e Hi&!ways %&ecy or Natioal Healt! Ser"ice purc!ase a &reat deal o costructio ser"ices usually usi& itermediate compaies w!o speciali
Pri!ate clients

(ri"ate sector cliet #ase icludes Aaks ad Auildi& Societies %irports >ailways >etail ,sta#lis!mets ,m#assies Supermarkets icket ices ices 'ustomer Ser"ice Desks Aakers Autc!ers S!oe S!ops Iteratioal Distri#utors$ (ri"ate cliets are sole traders or domestic cliets w!o would like to !a"e a !ouse #uildi& altered exteded or maitaied$ !ey eter ito pri"ate a&reemets wit! a #uilder to udertake t!e work$ !e pri"ate sector is t!e part o t!e ecoomy t!at is ot state cotrolled ad is ru #y idi"iduals ad compaies or proit$ !e pri"ate sector ecompasses all or:proit #usiesses t!at are ot owed or operated #y t!e &o"ermet Commercial HND in QS

42


% commercial cliet is a actory or #usiess t!at eeds to udertake #uildi& works i order to produce a product or process$ 1or example a ast ood compay eeds a outlet to sell its products rom$ !e outlet usually !as to #e #uilt ;uickly ;uickly ad to #e maiteace:ree ad adapta#le$ Small idustrial actory uits are commercial #uildi&s t!at pro"ide products ad ser"ices$ 'ommercial cliet would similarly !a"e to ollow e"irometal ad saety re&ulatios re&ardi& plai& ad #uildi&$ !eir cost o co structio pays #y t!eir ow moey or #usiess #u siess moey$ ur client ur client is pri!ate client $ B!e we are doi& ay costructio pro*ect it will #etter t!i&$ •

No eed to wait util pro"idi& moey as &o"ermet pro*ect$

•

Be dot dot wat &et appro"als app ro"als rom dieret departmet as &o"ermet pro*ect$

•

B!e decisio maki& pri"ate cliet is t!e ma*or perso$

•

'a do our *o# well as our ow ideas$

•

%s cotractors we !a"e "ery &ood worki& e"iromet wit! pri"ate cliets$

•

%d also we o eed to araid a#out pro*ect delays wit! political reasos as &o"ermet pro*ects$

Conclusion !ere are so may parties i"ol"ed i a costructio pro*ect$ Be metioed metioed t!e roles M resposi#ilities o t!e cotractor cosultat (ro*ect maa&er Quatity sur"eyor 'i"il ,&ieer$

!e we descri#ed t!e se;uece o e"ets o a costructio pro*ect rom desi& to costructio$ Aeore start t!e costructio we !a"e to select t!e suita#le procuremet met!od$ !is cotract is #ased o t!e traditioal procuremet met!od$ !ere are so may cotractual arra&emets arra&e mets i a cotract$ Be explaied explaied t!ose cotractual arra&emets accordi& to t!is pro*ect$ B!e doi& t!e cotract accordi& to t!e traditioal met!od we could idetiy some pro#lems suc! as 'laims ad paymets made o early accomplis!mets were #loatedO t!e cotractor e"etually a#adoed t!e pro*ect uecessary work items icorrect deductios o retetio

HND in QS

43


rom pro&ress paymets due to ailure to "alidate coormace wit! pro*ect sc!edule$ o a"oid t!ose issues we proposed some c!a&es to t!e cotract$ !e we compare t!e pro*ect costs i t!e cotext o pre J cotract teder ad ial accout Sta&es o t!e cotract as well as 'ompare t!e pro*ects plaed pro&ramme sc!edule wit! t!e actual$ %ter t!at we descri#ed !ow ;uality is deied ad t!e measures t!at are a"aila#le wit!i t!is cotract to assume its compliace$ %aly
HND in QS

Contractual procedure

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