LECTURES UPTO 5 FEB 2016

DISPUTE AVOIDANCE AND RESOLUTION IN

CONSTRUCTION

THE OBJECTIVE OF THIS COURSE IS TO ENABLE

STUDENTS TO BE INVOLVED IN THE PROCESS
OF CONFLICT AVOIDANCE, MANAGEMENT AND
DISPUTE RESOLUTION IN CONSTRUCTION
PROJECTS.
 LEARNING OUTCOMES
BY THE END OF THIS COURSE, STUDENTS WILL BE ABLE TO DISPLAY THE
FOLLOWING SKILLS AND APTITUDES IN CONSTRUCTION:
UNDERSTAND THE UNDERLYING CAUSES OF MOST CONFLICTS AND
DISPUTES AND DEMONSTRATE KNOWLEDGE AND UNDERSTANDING THE
TECHNIQUES USED TO AVOID CONFLICTS AND MANAGE THEM.
APPLY THE BASIC PRINCIPLES OF DISPUTE RESOLUTION EXPEDITIOUSLY.
BE INVOLVED IN RANGE OF DISPUTE RESOLUTION TECHNIQUES
INCLUDING ADJUDICATION AND ARBITRATION PROCEEDINGS.
DISPLAY KNOWLEDGE ABOUT CONFLICT MANAGEMENT AND DISPUTE
RESOLUTION PROCEDURES INCLUDING NEGOTIATION, MEDIATION AND
CONCILIATION, ADJUDICATION, ARBITRATION AND LITIGATION.
 DISCUSS THE IMPORTANCE OF DISPUTE AVOIDANCE AND
RESOLUTION IN CONSTRUCTION
KEY TO GOOD CONTRACT ADMINISTRATION AND
ACHIEVING ECONOMY IN
CONSTRUCTION IS IN AVOIDING
CONFLICTS AND WASTAGE.
PROFESSIONAL PROJECT MANAGERS AND
CONSTRUCTION ECONOMISTS NEED TO BE
PROFICIENT IN AVOIDING CONFLICTS AS
FAR AS POSSIBLE AND IN RESOLUTION
TECHNIQUES
 DISCUSS THE IMPORTANCE OF DISPUTE AVOIDANCE AND
RESOLUTION IN CONSTRUCTION

BEGINS BEFORE GROUND BREAKING

A TECHNIQUE THAT HELPS YOU
RESOLVE THE INEVITABLE PROBLEMS
THAT ARISE DURING
CONSTRUCTION?
 DISCUSS THE IMPORTANCE OF DISPUTE AVOIDANCE AND RESOLUTION IN
CONSTRUCTION
NECESSARY CONSEQUENCE OF THE RESPONSIBLE
PRACTICE OF THE BUSINESS OF CONSULTING
ENGINEERING.
OCCURS WHEN THE CONSULTING ENGINEER ACCEPTS
AND ADDRESSES PROFESSIONAL
RESPONSIBILITY, NOT DISCLAIMS OR LIMITS
POTENTIAL LIABILITY.
SHOULD BE PRACTICED FROM BUSINESS AND
PERSONNEL DEVELOPMENT THROUGH CONTRACT
PREPARATION, QUALITY CONTROL AND PERFORMANCE.
 DISCUSS THE IMPORTANCE OF DISPUTE AVOIDANCE AND RESOLUTION IN
CONSTRUCTION

EXTRA SPECIAL CONTRACT LANGUAGE

DISCLAIMERS STRATEGICALLY LOCATED IN
DESIGNER/CONSULTANTS PROFESSIONAL
SERVICES AGREEMENTS DO NOT HELP IN
AVOIDING DISPUTES.
EXPLAIN THECONCEPT OF DISPUTE AVOIDANCE
PRACTICED FROM:
BUSINESS DEVELOPMENT & PROCUREMENT
PERSONNEL DEVELOPMENT
TENDER PREPARATION
CONTRACT PREPARATION
QUALITY CONTROL AND
PERFORMANCE
 1. BUSINESS DEVELOPMENT-THEORY

1. MARKETING MANAGER-BASIC TOOLS-BROCHURES

PRESENTATIONS AND FIRM REPUTATION SEEKS TO BRING
IN NEW BUSINESS-TO OFFSET LOSS OF BUSINESS-

DISSATISFIED EXISTING CLIENTS WHO ELECT TO HIRE A

COMPETING ENGINEERING FIRM.
 BUSINESS DEVELOPMENT-THEORY
2. OVERALL PURPOSE OF BUSINESS DEVELOPMENT-TO MINIMIZE
ANY LOSS OF EXISTING CLIENT BASE AND TO
ACHIEVE THE DESIRED WORKLOAD BY A BLEND OF
REPEAT CLIENT WORK AND NEW CLIENT WORK IN
ACCORDANCE WITH A CAREFULLY THOUGHT OUT
BUSINESS PLAN.
3. WHAT IS STATED IN THEORY RARELY WORKS IN
PRACTICE.
 BUSINESS DEVELOPMENT-IN PRACTICE
BD FACES GROWING PRESSURE-MEET AMBITIOUS
BUSINESS PLAN GOALS IN HIGHLY COMPETITIVE
MARKETPLACE (MORE CONSULT ENGINEERS & LESS CLIENTS).
TOUGH ECONOMIC CONDITIONS? TO MAINTAIN
WORKLOAD, BD PROMISES POTENTIAL CLIENT BASE MORE
THAN THE FIRM IS CAPABLE OF DELIVERING
(PERFECT DESIGN??) & CLIENT BUYS IT!!
 BUSINESS DEVELOPMENT-IN PRACTICFE
AMBIGUOUS REQUIREMENTS OR UNREALISTIC
LIMITATIONS..RFP PUTS A CAP ON PROPOSED
PRICE & CALLS FOR PRICE BID!!
ENGINEERING CONSULTANCY IS NOT A
COMMODITY BUT A SERVICE
COMPARABLE WITH MEDICAL AND
LEGALTHEREFORE CANNOT BE LOWEST BID.
SEEDS OF DISPUTES
 BUSINESS DEVELOPMENT-IN PRACTICE
UNREALISTIC EXPECTATIONS
PRESENTATIONS AND BROCHURES SELL A DREAM: SERVICES ARE
BETTER, TIMELY AND MORE COST EFFECTIVE.
CLIENT EXPECTS A SUPERHUMAN ENGINEERING EFFORT,
WHICH NO ENGINEERING FIRM CAN DELIVER AT WHAT COST?!!
LAW MAY UPHOLD THE CLIENTS EXPECTATIONS, WHILE CONSULTING FIRM
MEETS ONLY PRUDENT AND REASONABLE ENGINEERING
STANDARD.
SEEDS ARE SOWN OF A DISPUTE
 BUSINESS DEVP-WHAT MEASURES TO AVOID
DISPUTES?
MARKETING MANAGER MUST BE IN TOUCH WITH REALITY-
KNOWING CAPABILITIES AND LIMITATIONS. MUST BE
FAMILIAR WITH THE PRACTICE-HAVING PRACTICED ONESELF-TO KNOW HOW
MUCH SERVICES COST AND HOW LONG IT TAKES.
REALISTIC BUSINESS PLAN-TO AVOID MAKING OVERLY
AMBITIOUS PROMISES TO CLIENTS THAT CANNOT
BE HELD.
NO MISLEADING BROCHURES-NOT EVERYTHING IN BROCHURES
WHAT CANNOT BE AFFIRMED IN COURT..
GIVE A PASS TO PROJECTS WITH CLIENTS HAVING
UNREALISTIC EXPECTATIONS AT COSTS BASED ON BIDDING.
 BUSINESS DEVP-WHAT MEASURES TO AVOID
DISPUTES?
CLIENT EDUCATION-ACCUTRATE MARKETING OF REAL
CAPABILITIES OF PROFESSIONAL ENGINEERING SERVICES VIS
A VIS HOW MUCH CHEAPER AND BETTER BY COMPETITION.
IF FORCED TO SUBMIT PRICED PROPOSAL, DO IT AS AN
ESTIMATE OF COST TO PERFORM A TYPE OF SERVICE-
NOT LUMP SUM ON AN AMBIGUOUS SCOPE ( Eg.
THE SCOPE OF SERVICE SHALL INCLUDE, BUT NOT LIMITED TO
.)
DEFINE WHAT WILL BE PERFORMED FOR PRICE
OFFERED. OR GIVE A DETAILED COUNTER OFFER.
 BUSINESS DEVP-WHAT MEASURES TO AVOID
DISPUTES?
STATEMENT OF QUALIFICATIONSWHAT IS PROPOSED SHOULD BE
PROVIDED!
PRESENTATION-ATTEND WITH TECHNICAL REPRESENTATIVES WHO WILL
ACTUALLY BE WORKING ON THE PROJECT. INTEND TO
PROVIDE WHAT CLIENT EXPECTS.
SELECTION &NEGOTIATION-IF PRICE PROPOSAL IS SUBMITTED FOR A
FIXED SCOPE-NOTHING TO ADD. IF PRICED PROPOSAL NOT
PROVIDED-NEGOTIATIONS CAN CLARIFY FOR CLIENT
PROJECT SCOPE & EST A REASONABLE FEE. IF
OTHERWISE TURN DOWN.
 2. PERSONNEL DEVELOPMENT

CONSULTING ENGINEERS SELL TIME

QUALITY OF THAT TIME IS DIRECTLY DEPENDENT ON THE
TALENT OF A FIRM'S PERSONNEL.
MOST IMPORTANT INVESTMENT A FIRM CAN MAKE IS IN
ITS PERSONNEL.
 IN REALITY

MANY FIRMS MAKE MORE INVESTMENT IN TANGIBLE

INVESTMENTS:
MARKETING
COMPUTER ASSISTED DESIGN CAPABILITIES OR
OFFICE FACILITIES.
 PERSONNEL DEVP-EFFECTIVE DISPUTE
AVOIDANCE TECHNIQUE
TALENTED ENGINEERING STAFF
HIGH QUALITY PLANNING
REASONABLE DESIGN AND
CONSTRUCTION ADMINISTRATION SERVICES
 FORMAL PERSONNEL DEVELOPMENT PROGRAM
SOME FIRMS HAVE NO FORMAL PERSONNEL
DEVELOPMENT PROGRAM.
RELIANCE SOLELY ON THE INITIATIVE OF ITS STAFF TO
MAKE THE SATISFACTORY DEGREE OF EFFORT ON:
EACH PROJECT ASSIGNMENT
KEEP UP-TO-DATE ON ADVANCING TECHNOLOGY AND
QUALIFY FOR THE APPROPRIATE CREDENTIALS.
 FORMAL PERSONNEL DEVELOPMENT
PROGRAM
FEW FIRMS HAVE AN ACTIVELY ENFORCED FORMALIZED
PROGRAM THAT:
SUPPORTS ADVANCED TRAINING
CAREFULLY OVERSEES PERFORMANCE OF EACH
ASSIGNMENT AND
RECORDS EACH ENGINEERS' EFFORTS WITH AN EYE
TOWARDS ADVANCEMENT WITHIN THE
ORGANIZATION.
 FORMAL PERSONNEL DEVELOPMENT
PROGRAM

THOSE FIRMS HAVE A FORMALIZED PROGRAM, MORE

OFTEN HAPHAZARDLY FOLLOWED, IF AT ALL.

IT IS TO THIS MAJORITY THAT LAWYERS CAN MOST EASILY

FIND FAULT WHEN PURSUING A DISPUTE.
 ADHERENCE TO INTERNAL PERSONNEL POLICIES
IF POLICIES REQUIRE:
REGISTERED PROFESSIONAL ENGINEERS.. DO NOT
PROVIDE OTHERS.
CONTINUING ANNUAL EDUCATION..MAKE SURE
PERIODIC REVIEW OF WORK QUALITY.AND
CORRECT DEFICIENCIES
IF NOT ADHERED TO: CLIENT CAN TAKE LEGAL RECOURSE
WHAT ARE THE TECHNIQUES-IMPROVING QUALITY
& DISPUTE AVOIDANCE
QUALITY CONTROL IN ITS BROADEST SENSE-
PROGRAMS THAT LOOK AT HOW A DESIGN IS
DELIVERED INSTEAD OF CHECKING THE DESIGNED
PROJECT: EG..
IMPROVE THE PERFORMANCE OF SERVICES AS
WELL AS THE CHECKING OF RESULTS.
VALUE ENGINEERING
PEER REVIEW AND
TOTAL QUALITY MANAGEMENT
 QUALITY CONTROL

BREACH OF INTERNAL QUALITY CONTROL

POLICIES CAN BE MORE DAMAGING THAN
BREACH OF INTERNAL PERSONNEL POLICIES.

WITH AN EFFECTIVE QUALITY CONTROL PROGRAM,

DISPUTES CAN BE AVOIDED BECAUSE MISTAKES
ARE CAUGHT BEFORE ANY DAMAGE IS
DONE.
 WHY IT HAPPENS?
DUE-TIME OR BUDGETARY RESTRICTIONS,
MANY PROJECTS DO NOT RECEIVE:
QUALITY CONTROL CHECKS,
INTERDISCIPLINARY COORDINATION CHECKS,
OR
"BUILDABILITY" EVALUATIONS NECESSARY TO
CATCH THE INEVITABLE DESIGN ERRORS.
 HOW VALUE ENGINEERING HELPS IN AVOIDING
DISPUTES?
VALUE ENGINEERING LOOKS AT ALTERNATIVE WAYS TO
MEET A PROJECT'S REQUIREMENTS IN A MORE
EFFICIENT AND COST-EFFECTIVE WAY.

GREATEST ASSET IS ITS

VALUE ENGINEERING'S
OPPORTUNITY TO GIVE A FRESH LOOK AT A PROJECT
THEREBY IMPROVING QUALITY OF THE END
PRODUCT.
 PURPOSE OF VALUE ENGINEERING PROGRAMME

A TYPICAL VALUE ENGINEERING PROGRAM WOULD

PROVIDE EXPERT PROFESSIONALS THE
OPPORTUNITY TO "BRAINSTORM' DURING
STRUCTURED SESSIONS TO IDENTIFY A SERIES
OF DESIGN ALTERNATIVES THAT MAY HAVE
ESCAPED THE PROJECT TEAM'S ATTENTION.
 VALUE ENGINEERING-HOW?
THESE ALTERNATIVES ARE THEN RANKED AGAINST CRITERIA
RANGING FROM:

THE MORE OBJECTIVE, SUCH AS CONSTRUCTION COST

OR OPERATION AND MAINTENANCE COSTS TO
THE MORE SUBJECTIVE, SUCH AS AESTHETICS OR THE
RISK OF INNOVATION.
THE ALTERNATIVES ARE THEN RANKED OVERALL AND,
WHERE APPROPRIATE, IMPLEMENTED INTO THE FINAL
PROJECT DESIGN.
 EXPLAIN PEER REVIEW HELPS IN DISPUTE
AVOIDANCE?
UNLIKE VALUE ENGINEERING (FOCUS-IMPROVING AN ENGINEERED
DESIGN), PEER REVIEW EVALUATES THE
MANAGEMENT & OPERATION OF THE
ENGINEERING FIRM.
BUSINESS OBJECTIVES, OPERATING POLICIES,
HUMAN RESOURCES, FINANCIAL MANAGEMENT,
AND BUSINESS DEVELOPMENT ARE EACH ASSESSED IN A PEER
REVIEW PROGRAM.
 EXPLAIN PEER REVIEW HELPS IN DISPUTE
AVOIDANCE?
A CRITICAL ASSESSMENT IS MADE ON HOW
MANAGEMENT IS STRUCTURED AND
OPERATED, AS WELL AS HOW PROJECT TEAMS PERFORM
AND QUALITY IS CONTROLLED.
TYPICALLY, A PEER REVIEW PROGRAM INVOLVES
MANAGEMENT FROM OTHER NON-COMPETING
ENGINEERING FIRMS OF NEAR EQUAL SIZE THAT
ASSESSES THE FIRM'S PRACTICES.
 PEER REVIEW-RECOMMENDATIONS
THE PEER REVIEW TEAM THEN PROVIDES
RECOMMENDATIONS AS TO IMPROVING PRACTICE.

HENCE IF PEER REVIEW PRACTICES ARE EMPLOYED,

ONE SHOULD BE FULLY PREPARED TO IMPLEMENT
THE RESULTING RECOMMENDATIONS/JUSTIFY NON
IMPLEMENTATION.
 DISCUSS TOTAL QUALITY MANAGEMENT IN
DISPUTE AVOIDANCE
TQM EMPHASIZES THE PROCESS OF PRODUCING QUALITY DESIGN AND
SERVICES WHILE FOCUSING ON THE IMPORTANCE OF
THE EMPLOYEES PARTICIPATION IN THIS PROCESS. HENCE,
TQM LOOKS AT IMPROVING THE SYSTEM THAT
VERSUS CHECKING THE
PROVIDES THE ENGINEERING SERVICES
ENGINEERING SERVICES THEMSELVES --RICHARD K ALLEN
TQM FOCUSES ON:
CUSTOMER/SUPPLIER RELATIONSHIP
PROCESS/RESULTS
FEEDNACK
 FOCUS OF TQM-CUSTOMER/SUPPLIER
BY INTEGRATION-CUSTOMERS NOT ONLY
CLIENTS BUT EMPLOYEES AS THEY PROVIDE
SERVICES TO EACH OTHER.

BY MEETING CUSTOMERS NEEDS AT ALL

EMPLOYEES LEVELS-OVERALL QUALITY SHOULD
IMPROVE.
 FOCUS OF TQM-PROCESS/RESULTS
MOST QUALITY CONTROL PROGRAMS FOCUS ON
CHECKING QUALITY OF RESULTING SERVICE OR
PRODUCT.
TQM LOOKS AT THE PROCESSES BY WHICH
THE SERVICE IS PROVIDED OR PRODUCT
PRODUCED.
BY IMPROVING THE PROCESS, QUALITY
PROBLEMS ARE PREVENTED- A FAR MORE COST-
EFFECTIVE APPROACH THAN CHECKING FOR
ERRORS.
 FOCUS OF TQM-FEEDBACK
EMPLOYEES PROVIDING SERVICES HAVE ENORMOUS
EXPERTISE (IF TAPPED)-GREATLY IMPROVE PROCESS
OF PROVIDING SERVICES.

TQM ENCOURAGES EMPLOYEES TO SHARE THIS

EXPERTISE AND TO CORRECT PROBLEMS AT
ALL VARIOUS LEVELS OF THE ORGANIZATION.
 TQM-DISTINCT FROM RESULT ORIENTED STYLE

TQM-A MANAGEMENT PHILOSOPHY CAN GREATLY

IMPROVE QUALITY OF ENGINEERING SERVICES TO THE
CLIENT IN A COST-COMPETITIVE AND EFFICIENT
MANNER AND AVOID DISPUTES.
FAILURE TO FOLLOW THROUGH ON THE
TECHNIQUES (????) HOWEVER, USUALLY MORE
PROBLEMATIC THAN IF THE TECHNIQUES HAD NEVER BEEN
IMPLEMENTED IN THE FIRST PLACE.
PROFESSIONAL SERVICES AGREEMENT/CONTRACT
TRADITIONAL HANDSHAKE AGREEMENTS.? FEAR OF
QUESTIONING INTEGRITY OF LONG TERM CLIENTS. EASIER
TO DEAL WITH..

FAILURE TO LIMIT AUTHORITY OF EMPLOEES TO

ENTER INTO OR CHANGE PRE EXISTING
AGREEMENTS
 PITFALLS
PROJECT ENGINEER/RESIDENT ENGINEERING WORKING
RELATIONSHIP AGREE TO PERFORM SERVICES W/O FORMAL
REVISION OF ORIGINAL SCOPE..

COULD LEAVE THE ENGINEERING FIRM LIABLE FOR

SERIOUS RISKS NOT CONTEMPLATED DURING THE INITIAL
AGREEMENT AND WELL BEYOND THE RISKS
NORMALLY ASSOCIATED WITH THE WORK
 CONTRACT OF PROFESSIONAL SERVICES
SINGLE MOST IMPORTANT DOCUMENT FOR AVOIDING
DISPUTES-INCLUDES BASIC ELEMENTS OF SERVICES TO
BE PROVIDED/PERFORMED:
A CLEAR AND PRECISE DESCRIPTION
TIME FRAME WITHIN WHICH.AND
COST OF THE SERVICES INCLUDING (METHOD OF PAYMENT
AND THE TIMING OF PAYMENTS).
 HOW STANDARD FORMS HELP?
STANDARD FORMS ARE FINE BUT MUST BE APPROPRIATE TO THE
PROJECT AND CUSTOMISED AFTER DUE CONSULTATION WITH A
LAWYER. ADDITIONAL ELEMENTS..:
PROVISION DEFINING ADDITIONAL SERVICES ENTITLING
ENGINEER TO ADDITIONAL COMPENSATION
A MERGER CLAUSE THAT EFFECTIVELY STATES THAT ALL PRIOR
WRITTEN OR ORAL UNDERSTANDINGS ARE SUPERSEDED BY THE
AGREEMENT.
AN OWNERSHIP OF DOCUMENTS CLAUSE THAT RETAINS THE
ENGINEERS' OWNERSHIP OF ITS WORK PRODUCT TO AVOID A
CLIENT'S LATER REUSE (AND POSSIBLY MISUSE) OF WORK PRODUCT
 ILLUSTRATION-1
HOW DISPUTES CAN BE AVOIDAED?
DO NOT, HOWEVER, RELY ON SUCH PROVISIONS OFFERING
UNLIMITED PROTECTION FROM DISPUTES
DO NOT AGREE TO PROVISIONS THAT "GUARANTEE"
YOUR WORK OR SET THE QUALITY ABOVE THAT
WHICH YOU ARE REQUIRED TO MEET.
DO NOT AGREE TO BE HELD RESPONSIBLE FOR YOUR
CLIENT'S OR ANY OTHER PARTY'S FAILING.. EG?
 ILLUSTRATION-2-HOW DISPUTES CAN BE AVOIDAED?
THE ENGINEER SHALL GUARANTEE THE PLANS AND SPECIFICATIONS TO
BE FREE OF ERRORS AND OMISSIONS AND, IN THE
EVENT AN ERROR OR OMISSION IS DISCOVERED, SHALL CORRECT THE
SAME AND BEAR CONSEQUENTIAL COSTS, OR
THE ENGINEER SHALL PERFORM PROFESSIONAL SERVICES IN
ACCORDANCE WITH THE HIGHEST PROFESSIONAL STANDARDS AND
BEAR ALL COSTS AND LOSSES IN THE EVENT OF
FAILURE TO DO SO, OR
THE ENGINEER SHALL INDEMNIFY AND HOLD HARMLESS THE OWNER
FROM ALL LIABILITY THAT ARISES FROM THE ACTS OR
OMISSIONS OF THE ENGINEER AND OWNER DURING
THE COURSE OF THE PROJECT.
 RECAP CONCEPT OF DISPUTE AVOIDANCE
PRACTICED FROM:
BUSINESS DEVELOPMENT & PROCUREMENT
PERSONNEL DEVELOPMENT
TENDER PREPARATION
CONTRACT PREPARATION
QUALITY CONTROL AND
PERFORMANCE
 APC-CONFLICT AVOIDANCE PROCESSES &
DISPUTE RESOLUTION TECHNIQUES
GENERAL PRINCIPLES (LEVEL 1: KNOWING)
PRACTICAL APPLICATION (LEVEL 2: DOING)
PRACTICAL CONSIDERATIONS (LEVEL 3:
DOING/ADVISING)
 TEN GENERAL PRINCILPES-LEVEL 1
CONFLICT AVOIDANCE PROCESSES:
GOOD DESIGN TEAM MANAGEMENT
CLEAR CONTRACT DOCUMENTATION
PARTNERING AND ALLIANCING
GOOD PROJECT MANAGEMENT
GOOD CLIENT MANAGEMENT
GOOD CONTRACTOR MANAGEMENT
GOOD PAYMENT PRACTICE
RECORD KEEPING
REGULAR REPORTING & MONITORING
GOOD MANAGEMENT
 1. GOOD MANAGEMENT

PLANNING FUTURE WORK

PROACTIVITY IN MANAGING FUTURE WORK
PROBLEMS TO BE ANALYSED AND MANAGED
PROVIDE CONFIDENCE IN QUANTITY SURVEYORS ABILITY
 2. CLEAR CONTRACT DOCUMENTATION
AMBIGUITIES IN CONTRACT DOCUMENTATION, OR

(?) EXPLOIT AMBIGUITIES. REAL CAUSE OF DISPUTE TO

RECOUP FINANCIAL POSITION?

VOLUMES OF GENERAL SPECIFICATIONS NOT ADEQUATE

KEY-IDENTIFICATION OF MAIN AREAS OF RISK & SET OUT

STRATEGY FOR DEALING WITH THEM.
 3. GOOD PROJECT MANAGEMENT
NOT SIMPLY ALLOCATING RESPONSIBILITY OF ALL OR ANY TO
OTHERS BUT-
PROACTIVELY MANAGING TIME, MONEY AND RISKS
ASSOCIATED WITH PROJECT
IT INVOLVES OFTEN ADDRESSING SOME OF THE MOST
DIFFICULT ISSUES.
APPLYING PROJECT MANAGEMENT TECHNIQUES TO
PLANNING AND MANAGING TO THESE
 4. GOOD CLIENT MANAGEMENT
UNDERSTANDING CLIENTS OBJECTIVES & CLIENTS
APPROACH TO RISK
MAINTAINING GOOD LINES OF COMMUNICATION
WITH CLIENT-HELPS IN IDENTIFYING HOW RISKS AND
ISSUES BE DEALT WITH. BUILD RAPPORT.
WARN CLIENT ABOUT PROBLEMS TO AVOID
MISLEADING CLIENT ALL IS WELL.
NOT JUST POSE PROBLEMS. DISCUSS HOW ISSUES
MIGHT BE DEALT WITH.
 5. GOOD CONTRACTOR MANAGEMENT

HAVING AN OBJECTIVE UNDERSTANDING OF THE

PROJECT, THE CONTRACT AND THE PROGRAMME OF
WORKS.
REQUIRES REGULAR OBJECTIVE ASSESSMENTS OF
PROGRESS
PROACTIVELY DEALING WITH CONTRACTUAL ISSUES
LIKELY TO ARISE DURING THE PROJECT.
PROBLEMS AND DELAY NEED TO BE DEALT WITH IN A
TIMELY, A POSITIVE AND OBJECTIVE MANNER.
 6. PARTNERING AND ALLIANCING
BUILDING CO-OPERATION BETWEEN THE PROJECT
PARTICIPANTS IN ORDER TO FOSTER TEAM WORKING
PROBLEM SOLVING AND
AN EMPHASIS ON PROJECT DELIVERY CAN ASSIST IN
THE AVOIDANCE OF DISPUTES
 7. GOOD DESIGN TEAM MANAGEMENT
PROVISION OF INFORMATION WITHIN THE DESIGN TEAM AND
DESIGN TEAM TO THE CONTRACTOR CRUCIAL.
GOOD FORWARD PLANNING AND THE MANAGEMENT OF
CONFLICT THAT COULD ARISE AMONG THE DESIGN TEAM
 8. GOOD PAYMENT PRACTICE

DESIGN TEAM AND THE CONTRACTOR RELY UPON CASH

FLOW.
ONCE PAYMENT PROVISIONS HAVE BEEN AGREED,
VALUATION AND PAYMENTS MUST BE MADE PROMPTLY.

THIS IN ITSELF CAN AVOID ANIMOSITY, CONFLICT AND

DISPUTE
 9. RECORD KEEPING-1
DISPUTES CAN BE RESOLVED-RETROSPECTIVELY
RECORDS KEPT DURING COURSE OF
PROCUREMENT OR CARRYING OUT OF A PROJECT
KEEPING PROPER RECORD OF LABOUR, PLANT AND
MATERIALS USED IN A PROJECT.
OBTAINING A DAILY RECORD-THE SITE ACTIVITIES AND
REGULAR PROGRESS REPORTS.
 9. RECORD KEEPING-2
MINUTES OF MEETINGS, PROGRESS, REPORTS, DROP LINES
ON PROGRAMMES, AND PHOTOS.
INCLUDE A RECORD OF RESOURCE MOVEMENT-WHEN
CHANGE OCCURS
RECORD OF HOW CHANGE HAS IMPACTED UPON THE
PROJECT SHOULD BE MADE CONTEMPORANEOUSLY.
 10. REGULAR REPORTING AND PROACTIVITY
REGULAR MONITORING OF COST, PROGRESS AND
QUALITY IMPORTANT FOR SUCCESS OF ANY PROJECT.
IMPORTANT TO RAISE AND MANAGE ANY ISSUES
THAT ARE CAUSING DELAY, ANY INCREASES IN COST OR
QUALITY PROBLEMS AS SOON ASAPP.
ANY ACTIONS SHOULD BE RECORDED SO THAT THEY
CAN BE TRACKED TOWARDS CONCLUSION.
 TWO GENERAL PRINCIPLES:
PRACTICAL APPLICATIONS LEVEL 2 (DOING)

CONFLICT AVOIDANCE PROCESSES:

CHECKING OF CONTRACT DOCUMENTATION
(A) TENDER PREPARATION STAGE
(B) CONTRACT PREPARATION STAGE
PARTNERING
 CHECKING OF CONTRACT DOCUMENTATION-TENDER
PREPARATION STAGE
NOT ONLY SPECS AND DRAWINGS BUT SPECIAL CONSIDERATION TO:
EXACT DESCRIPTION OF THE CONTRACT (ASSUMING THAT THIS IS LIKELY
TO BE A STANDARD PRINTED FORM), WHICH EDITION, DOES SECTIONAL
COMPLETION APPLY, DO ANY SUPPLEMENTS OR AMENDMENTS APPLY?
THE EXACT DETAILS FOR THE APPENDICES, COMPLETION DATES,
INSURANCES, ETC.
FULL TEXT OF ANY PURPOSE-WRITTEN AMENDMENTS TO THE
CONTRACT,
FULL TEXT OF ANY ANCILLARY DOCUMENTS SUCH AS BONDS,
GUARANTEES, COLLATERAL WARRANTIES, ETC.
WHY?
 CHECKING OF CONTRACT DOCUMENTATION
(A) TENDER PREPARATION STAGE:
CONTRACTOR TO CONSIDER THESE DOCUMENTS WHEN
CALCULATING A PRICE AND DEVELOPING THE DESIGN
SOLUTION. THESE DOCUMENTS WILL NEED TO BE INCLUDED AT
TENDER STAGE.
IMPORTANT-TAKE CARE IN PRODUCING A COORDINATED SET
OF TENDER AND CONTRACT DOCUMENTS.
OPERATING UNDER A LETTER OF INTENT ONLY DELAYS DEALING
WITH THE KEY ISSUES BETWEEN THE PARTIES, WHICH NEED TO BE
AGREED FOR THERE TO BE A FORMAL CONTRACT.
 CHECKING OF CONTRACT DOCUMENTATION

(B) CONTRACT PREPARATION STAGE

COMPLETING THE FORMAL CONTRACT AND AVOIDING
LETTERS OF INTENT IS A GOOD CONFLICT AVOIDANCE
STRATEGY.
SPECIAL CONSIDERATIONS:
CONTRACT PREPARED AND SIGNED ASAPP AFTER CLIENT
DECIDES TO APPOINT A CONTRACTOR.
ANY PURPOSE-WRITTEN AMENDMENTS ARE EXPRESSLY
INCORPORATED, AND ARE ATTACHED TO THE CONTRACT
(INCLUDING APPENDICES).
 CHECKING OF CONTRACT DOCUMENTATION
(B) CONTRACT PREPARATION STAGE:
FULL AND COMPLETE DESCRIPTIONS OF THE WORKS INFORMATION
INCLUDED.
AVOID MAKING GENERAL STATEMENTS. INSTEAD SET OUT A
COMPLETE LIST OF SPECIFICATIONS, DRAWINGS, QUESTIONS AND
ANSWERS, ETC. THAT APPLY
APPENDICES ARE COMPLETED FULLY AND CAREFULLY
EXACT DESCRIPTION OF THE ANCILLARY DOCUMENTS IS REFERRED
TO AND COPIES ATTACHED TO CONTRACT IS SIGNED
[KEEP A FULL COPY OF THE CONTRACT BUNDLE BEFORE IT IS ISSUED
IN CASE IT IS LOST WHILE BEING CIRCULATED FOR SIGNATURE]
SUBMITTALS REQUIRED IN THE CONTRACT
COPIES OF SUBCONTRACTS
GOOD FOR CONSTRUCTION DRAWINGS
SHOP DRAWINGS AND SUPPORT CALCULATIONS
CATALOGUES
MATERIAL OR EQUIPMENT SAMPLES
SCHEDULE(S)
CERTIFIED PAYROLLS
CERTIFICATES OF INSURANCE
ENVIRONMENTAL TEST REPORTS
MATERIAL TEST REPORTS & CERTIFICATIONS
METHOD STATEMENTS
SHOP DRAWINGS
MISC WORKING DRAWINGS
STRUCTURAL STEEL DETAILS & ERECTION PLAN
ERECTION PROCEDURES (SAFETY)
PS/PC CONCRETE ITEMS
SHORING & UNDERPINNING DETAILS
JACKING PLANS AND CALCULATIONS
SCAFFOLDING AND FALSEWORK
CONCRETE FORMWORK DESIGN AND DETAILS
CONSTRUCTION SEQUENCING DIAGRAMS
SHOP DRAWINGS, MISC WORKING DRAWINGS
COFFERDAM DESIGN & DETAILS
DEWATERING PROCEDURE
STREAM DIVERSIONS
PIPE AND DUCTWORK FABRICATION DETAILS
REINFORCING STEEL BENDING
SCHEDULES/DIAGRAMS AND BAR LISTS
STRUCTURAL TIMBER ELEMENTS
ORNAMENTAL IRON OR STEEL
MAINTENANCE OF TRAFFIC PLANS
(ALTERNATES)
PAYMENTS AND RELATED ISSUES
MOBILIZATION AND INITIAL COSTS
RETAINAGE
PROGRESS PAYMENTS AND PARTIAL
PAYMENTS
MATERIAL PAYMENTS
CHANGE ORDERS
SUBSTANTIAL COMPLETION
PUNCH-LIST
FINAL ACCEPTANCE AND PAYMENT
CHANGES IN PLANS AND SPECS
CLARIFICATION, CORRECTION, MODIFICATIONS
PRIOR TO BID ARE REFERRED TO AS ADDENDA
OWNER MUST MAINTAIN A SYSTEM OF
DISTRIBUTING AND ACKNOWLEDGING RECEIPT OF
ADDENDUM
PLAN AND SPEC CHANGES AFTER AWARD ARE
REFERRED TO AS REVISIONS, AND
GENERALLY REQUIRE ISSUANCE OF A CHANGE
ORDER(S)
CHANGE ORDERS
A WRITTEN ORDER ISSUED BY THE OWNER
TO THE CONTRACTOR FOR A CHANGE TO THE
CONTRACT WITHIN THE SCOPE OF WORK
CHANGE ORDERS ARE WRITTEN FOR:
EXTRA WORK
INCREASING OR DECREASING THE
CONTRACT QUANTITIES
ALTERATIONS
CHANGE ORDERS STATE THE BASIS AND
AMOUNT OF PAYMENT AND TIME
EXTENSIONS
 PARTNERING-IN DISPUTE AVOIDANCE
A GENERAL TERM-PRACTICES DESIGNED TO PROMOTE GREATER
COOPERATION AMONG ALL PROJ TEAM PARTICIPANTS.
EMPHASIS-ON MANAGEMENT OF PEOPLE-NOT WITHIN BUT
BETWEEN BUSINESSES.
NOT LIMITED TO CONTRACTUAL RELATIONSHIPS-BUT BUILDING
COLLABORATIVE RELATIONSHIPS TO MIMIMISE CONFLICTS AND
PROMOTE MORE OPEN SYSTEM OF COMN-TO ACHIEVE GREATER
PRACTICAL BENEFIT TO THE PROJECT.
 PARTNERING-IN DISPUTE AVOIDANCE
PARTICIPANTS MAY SIGN A PARTNERING CHARTER-NON BINDING
BUT FACILITATING IN NATURE.
OR ELSE-A BINDING CONTRACT CONTAINING PARTNERING
PRINCIPLES.
THE CONTRACT COULD BE TWO PARTY (MAIN CONTRACTOR AND
EMPLOYER) OR MULTI PARTY..DESIGN TEAM AND KEY MEMBERS OF
SUPPLY CHAIN.
AT THE START A PARTNERING WORKSHOP CONDUCTED WTH KEY
PARTICIPANTS-PROVIDING AN OPPORTUNITY TO KEY INIVIDUALS TO
UNDERSTAND HOW PROCESSES OPERATE AND BECOME FAMILIAR
WITH EACH OTHER
EVALUATION OF NON PRICED FEATURES
PRINCIPLES-WEIGHTED CRITERIA ASSESSMENT PROCESS:
SELECTION CRITERIA THAT REFLECT THE CRITICAL ELEMENTS OF THE
PROJECT AND THAT CAN BE ASSIGNED A WEIGHTAGE;
WEIGHTAGE THAT REFLECT THE RELATIVE IMPORTANCE OF
SELECTION CRITERIA;
SCORES THAT ARE BASED ON INFORMATION SUBMITTED WITH THE
TENDER BID; AND NORMALISING THE NONPRICE CRITERIA AND
THE TENDER PRICE BEFORE APPLYING THE WEIGHTINGS TO ALLOW
FOR THE TRUE EFFECT AND ADVANTAGE OF THE WEIGHTING
SYSTEM.
THE SYSTEM RECOGNISES CONTRACTORS WHO HAVE BETTER
PERFORMANCE RECORDS IN TERMS OF QUALITY, TIME AND COST.
AGENCIES SHOULD CONSIDER WHETHER THE EXTRA COST
INCURRED BY A VERY GOOD TENDER SUBMISSION IS MATCHED BY A
REDUCTION IN THE OVERALL PROJECT COSTS OR BY THE PROJECTS
RUNNING COSTS.
 SELECTION CRITERIA
NOT LOWEST PRICE-NON PRICED EVALUATION PROCESS APPLIES
WEIGHTING FOR SKILLS, QUALITY, EXPERIENCE AND PREVIOUS
PERFORMANCE IN A MANNER TO ENSURE VALUE FOR
MONEY.
SYSTEM OF CRITERIA BASED ON COMPETENCE OF THE
TENDERER TO UNDERTAKE A PARTICULAR PROJECT IS USED TO
RATE THE TENDERERS BIDS.
TO ACHIEVE THE REQUIRED PROJECT OUTCOME AND ARE
USED TO RATE EACH OF THE TENDERS.
 SELECTION CRITERIA
RELEVANT EXPERIENCE
APPRECIATION OF THE TASK
PAST PERFORMANCE
MANAGEMENT AND TECHNICAL SKILLS
RESOURCES
MANAGEMENT SYSTEMS
METHODOLOGY AND
PRICE.
 VALUE FOR MONEY
WHEN WEIGHTING NONPRICE EVALUATION CRITERIA, AGENCIES
SHALL ENSURE THAT ANY DIFFERENCE IN SCORES BETWEEN A GOOD
SUBMISSION AND A SATISFACTORY SUBMISSION DOES NOT
OVERSHADOW A SUBSTANTIAL PRICE DIFFERENCE.
AGENCIES ASSESSING SUBMISSIONS WITH A SUBSTANTIAL PRICE
DIFFERENCE MUST ULTIMATELY JUSTIFY THEIR SELECTION IN TERMS
OF VALUE FOR MONEY IF THE HIGHER PRICED TENDER SUBMISSION
GETS THE HIGHER SCORE.
 RELEVANT EXPERIENCE
PREVIOUS EXPERIENCE OF THE TENDERER NEEDS TO BE ASSESSED IN
RELATION TO THE FIELDS OF EXPERTISE REQUIRED TO ACHIEVE THE
INTENDED OUTCOMES OF THE PROJECT.
RECENT EXPERIENCE IS MORE VALUABLE THAN HISTORIC
EXPERIENCE. THE COMPANYS PREVIOUS EXPERIENCE IN TECHNICAL
AREAS COMPARABLE TO THE TENDERED PROJECT, THE SCALE OF
PAST PROJECTS AND THE ROLE UNDERTAKEN WITHIN THOSE
PROJECTS SHOULD BE CONSIDERED.
 INFORMATION REQUIRED
DESCRIPTION AND RELEVANCE TO THE
TENDERED PROJECT
ROLE OF THE TENDERER
PROJECT COST AND
DURATION OF PROJECT.
 PAST PERFORMANCE
THE TENDERING ORGANISATION'S PERFORMANCE IN COMPLETING PAST
PROJECTS NEED TO BE ASSESSED:
QUALITY STANDARDS REQUIRED
TIME PERFORMANCE
WITHIN BUDGET
CLAIMS HISTORY & VARIATIONS
PROJECT MANAGEMENT
PRODUCT VALUE
EXTENSION TO THE CONTRACT COMPLETION DATE
SATISFACTION OF PREVIOUS CLIENTS
 INFORMATION REQUIRED
PROJECT NAME
CLIENTS PROJECT MANAGER (NAME AND PHONE/EMAIL
ID/FAX NUMBERS)
QUALITY STANDARDS, TARGET PERFORMANCE LEVELS
TENDER PRICE, VARIATIONS AND FINAL COST
COMPLETION DATE AND EXTENSIONS OF TIME GRANTED
DETAILS OF OHS&R RECORDS.
 KEY PERSONNEL
THE COMPETENCE OF KEY MANAGEMENT, PROFESSIONAL
AND TECHNICAL PERSONNEL THAT THE TENDERER PROPOSES
TO EMPLOY ON THE PROJECT NEEDS TO BE ASSESSED WITH
PARTICULAR EMPHASIS ON THE SKILLS AND EXPERIENCE IN
TECHNICAL AREAS COMPARABLE TO THE PROJECT.
NAMES
FUNCTION
TECHNICAL EXPERTISE
CVS TO BE PROVIDED.
 MANAGEMENT SKILLS & SYSTEMS
THE AVAILABILITY WITHIN THE TENDERERS ORGANISATION OF
PERSONNEL WITH APPROPRIATE MANAGEMENT SKILLS TOGETHER
WITH EFFECTIVE MANAGEMENT SYSTEMS AND METHODS
APPROPRIATE TO THE SUCCESSFUL MANAGEMENT OF THE PROJECT.
THE INFORMATION REQUIRED:
QUALITY SYSTEM
PROJECT MANAGEMENT TOOLS;
PROGRAM SOFTWARE;
ENVIRONMENTAL MANAGEMENT SYSTEM; AND
OHS&R MANAGEMENT SYSTEM.
 RESOURCES
THE EQUIPMENT, INCLUDING FACILITIES AND INTELLECTUAL
PROPERTY, WHICH THE TENDERER PROPOSES TO USE ON THE
PROJECT NEED TO BE ASSESSED.
THE INFORMATION REQUIRED:
SPECIALIST EQUIPMENT
LABOUR, BY TRADE SKILLS
FACILITIES.
 METHODOLOGY
THE PROCEDURES OR INNOVATIVE METHODS
THE TENDERER PROPOSES TO USE TO ACHIEVE
THE SPECIFIED END RESULTS, OR THE SPECIAL
PROCESSES DETAILED IN TENDER DOCUMENTS.
TENDERER SHOULD BE ABLE TO DEMONSTRATE
ITS CAPABILITY TO BRING THE CONTRACT TO A
SATISFACTORY CONCLUSION BY DESCRIBING
THE METHODOLOGY OF APPROACH TO
ACCOMPLISH THE PROJECTS REQUIRED
OUTCOMES.
INFORMATION REQUIRED
PROGRAM OF WORKS
KEY PERFORMANCE INDICATORS
DIVISION OF WORKS INTO SUBCONTRACTS
INNOVATIVE PROCEDURES TO BE USED
REPORTING AND RECORDING SYSTEMS
QUALITY & SAFETY PLAN.
 PRICE
THE PRICE IS THE SUM THAT THE AGENCY WOULD BE REQUIRED
TO PAY TO THE SUCCESSFUL TENDERER FOR THE WORK OR
SERVICE PROVIDED.
MUST INCLUDE ALL COSTS OVER THE DURATION OF THE
CONTRACT. DEPENDING ON THE CONTRACT, THIS COULD
INCLUDE:
FIXED CAPITAL COST
VARIABLE TENDER COSTS DURING THE CONTRACT PERIOD
SPECIAL ADJUSTMENTS DURING THE CONTRACT PERIOD
MAINTENANCE COSTS
OPERATING COSTS.
References:
Guidelines on Tender Evaluation using Weighted Criteria for Building
Works and Services. Government of Tasmania. ISBN 978-0-7246-
5318-8 (Word) 978-0-7246-5319-5 (PDF)