Question A

Site Possession

Before submitting the tender, contractor should go inspect the site to satisfy himself
regarding these matters:
a) Nature of the ground and subsoil
b) Form and nature of the site
c) The extent and nature of the works, materials and goods necessary for the
completion of the works
d) Means of communication with and access to the site
e) Accommodation he may require
f) Contractor responsible for all the information that affects the tender
Any information or document forwarded by the government to the contractor shall not
relieve the contractor of his obligations under the provisions of this clause

Date of possession

- Refer to clause 38.2

Employer is obligated to give possession of site to allow contractor to carry
out his work.
The date of possession is stated in letter of acceptance sent to contractor and
appendix of condition of contract in contract documents.
Usually the date of submission of the construction site is 2 weeks after the
date (la)
Within 2 weeks - the purpose to provide opportunities for the contractor to
provide necessary preparations before starting work on site

Degree of possession
-Refer to clause 38.2
The extent of possession that must be given to the contractor is not
necessarily to be the whole site.
R v the walter cabott (1979) - the contractor must be given a reasonable
degree of possession to enable him to commence the work in accordance to
programme unless there is agreement to the contrary; execute the work
unimpeded by others; and to perform the work in a satisfactory manner based
on construction methods desired by him.
 Employer is not deemed to guarantee possession due to events outside his
control. For example, employer is not liable if contractor is prevented from
gaining access by third party such as unlawful picket.
Thorn v london corp (1876) - employer is not deemed to guarantee that the
site is fit for the work or the contractor will be able to construct the building on
site.

Nobody else has the right to access the site except for:
S.O or his representative who have the rights to access the site at any time
(clause 46.1(a)),
Other contractors engaged by government and their workers executing works
on or near the site (clause 46.2),
Employer and any authorized persons to investigate causes of accident,
failure or other events connected with the works (clause 45).

Restricted possession
-Refer to clause 38.3
Any restrictions on the giving of possession of site must be stipulated in the
contract. It includes:
I. Giving possession for some parts of the works on different dates. For
example, works to be done in phases.
II. Also, any conditions obtaining which amount to some obstruction or
restriction of possession. For example, proximity of electric power line,
existence of squatters, and other structures on site

The contractor is entitled to assume a degree of possession of the site to

enable him to plan his work accordingly. The contractor is also entitled to
claim damages if he is put to extra cost.

Conditions Precedent to Commencement of Work

-Clause 38.1
No work under this contract shall commence unless and until the performance
bondinsurances policyhave been deposited with the government.
However, there is the condition precedent that requires the contractor to provide the
following documents to employer before he can start the work:
- Cover notes and receipts for premium paid of all insurance policies
- Performance bond (is the contractor choose bank guarantee sum as
performance
- Bond & does not choose performance guarantee sum as performance bond
- Registration numbers for socso schemes (for workers earning less than
 RM 3,000/month)
The contractor needs to furnish the above documents first to employer, then only he
is allowed to enter the site

Insurance Involved
When it comes to the planning and organizing of a new construction project,
insurance doesnt always get the priority it requires. Very often it is left to the last
minute or even after the work has commenced.
As having appropriate insurance cover in place is a requirement of all standard
construction contracts, it is a matter that must be addressed prior to commencement
of the project.
All standard forms of construction contract require a Contract Works Policy to be in
place with minimum requirements that must be met. The contract conditions will
stipulate who is to arrange the insurance i.e. the contractor or the principal, and who
is to be named as Insured under the Contract Works policy.
The bank will want an insurance certificate before it will release any funds.
Arranging insurance after work has begun can delay your project while this is
sorted out.
Your contractor may have insurance already in place but check that the cover
he has is sufficient.
The project must be insured for the full replacement value including any
materials or goods that you are supplying, for example kitchen appliances or
any electronic equipment. These are most vulnerable when they have just
been installed and the house is not secured.
It is important to be aware of what is not covered by the Policy. Not all eventualities
are covered:
Construction plant, equipment and tools
Consequential loss, loss due to delay, penalties, liquidated damages
Losses discovered when an inventory is taken
Existing property unless it has been specifically agreed to be included in the
cover
Faulty design, workmanship or materials consequential damage is covered
Existing Property
Your builder failing to complete work
Where a project includes working on an existing property either through renovation
or an extension the contract conditions will normally stipulate that the Contract
Works insurance is to be arranged by the Principal. It is generally considered that the
Principal is best placed to take out the insurances necessary to adequately deal with
the risks associated with projects involving existing property.
Contract Works insurance can be arranged on a project specific basis or on
an annual basis.
 Annual policies automatically cover all of the contracts which fall within the
agreed parameters of types of contract insured, up to a specified value and
save a considerable amount of time for those builders doing similar jobs
throughout the year.
In addition to Contract Works insurance, the contractor needs to make sure
that they have adequate Liability insurance.

Preparation work program

Construction planning is a fundamental and challenging activity in the management
and execution of construction projects. It involves the choice of technology, the
definition of work tasks, the estimation of the required resources and durations for
individual tasks, and the identification of any interactions among the different work
tasks. A good construction plan is the basis for developing the budget and the
schedule for work. Developing the construction plan is a critical task in the
management of construction, even if the plan is not written or otherwise formally
recorded. In addition to these technical aspects of construction planning, it may also
be necessary to make organizational decisions about the relationships between
project participants and even which organizations to include in a project. For
example, the extent to which sub-contractors will be used on a project is often
determined during construction planning.
Contract Document
Construction Contract Documents are the written documents that define the roles,
responsibilities, and Work under the construction Contract, and are legally-binding
on the parties (Owner and Contractor).
Turnkey element works
Turnkey is a product or service that is designed, supplied, built, or installed fully
complete and ready to operate. The term implies that the end user just has to turn a
key and start using the product or service.
Question B

Project supervision team on site

The objective of the project management and owner supervision of the
construction projects is to guarantee good-quality implementation of the construction
project with optimal costs pursuant to the contract agreement, technical standards
and norms.
Manager of the project implementation unit is the manager of the process of
the project management and owner supervision of the construction projects. He
appoints the project manager or the person responsible for the implementation of the
contract agreement to each project.
The basis and input of the project management and provision of the owner
supervision is the contract agreement for the supply of services concluded with the
client.
Within the scope of this service, our site supervision team does the following
activities:
Checking the site productions conformance to the drawings and
specifications:
Reviewing the weekly/monthly progress reports prepared by the contractors,
Reviewing the monthly payment reports prepared by the contractors,
Assessment of contractor's solutions/recommendations in regards to the
execution,
Organizing and chairing weekly/monthly meetings,
Controlling of contractor's HSE management,
Controlling of site laboratories,
Controlling the contractor's field measurements regularly,
Controlling the contractor's quality management by a site quality team.

Project Supervision team on site

Close supervisions are done by Consultants through the site supervision

team. This team has to be identified at early stage of construction refer clause 13
(2.9.3) and 35 ( 60.4) Design & Build Contract.

Reports and site meeting

The daily reports regarding progress of construction and material used, are to
be entered in prescribed forms regularly. Result of testing of testing of specimens in
field laboratories and inspection notes of work are recorded regularly. The
construction report are intended to record time, quality and quantity of work and
general conditions, to ensure satisfactory progress of work as per laid specifications.
Physical progress of work

6 Ways to Measure Project Progress

1. Units Completed
-The Units Completed lends itself well to tracking tasks that are done repeatedly,
where each iteration can easily measure. Usually a task that is done repeatedly
tends to take about the same amount of time, resources and effort, so tracking the
units completed works well here.
2. Incremental Milestones
-Also known as the steps method, the incremental milestones method is
predominantly used for cost accounts that involve subtasks that need to be
completed in an orderly fashion. An example of this technique is the forming and
placing of a concrete foundation wall. Laying the foundation wall on footings, erecting
inside wall panels and brace, setting horizontal and vertical rebar in formwork and so
forth needs to be done in sequence to complete the task appropriately.
3. Start/Finish
-This method is only focused on capturing the starting point and the finishing point of
the task and nothing in between. This method is best for tasks that are short in
duration. You would implement this method if the tasks work estimations are not
available or if the percent complete progress data is too difficult to collect.
-Using the Start/Finish technique, we earn a percentage of progress when the task
starts and the other half is earned once the task is complete. These percentages are
determined by the owner and contractor of the project.
4. Cost Ratio
-The Cost Ratio method is usually implemented on a project that has tasks that tend
occur over a long phase or the entire project. Often used for Overhead costs, this
technique is measured based on the budgeted allocation of dollars vs. the labour
hours of production. This method gives the contractor the ability to earn value that is
equal to the overall percent of project completion.
5. Experience/Opinion
-Unlike the methods above that rely on definitive data, this method is relies on the
experience and subjectivity of the project manager. This technique is used for tasks
such as dewatering or frost removal/protection. Its not usually recommended and
tends to be seen as the last resort because each individuals experiences and
opinions vary from one another and can cause conflict between owners, contractors
and architect.
6. Weighted or Equivalent Units
-This method was highlighted as the best technique in the text and is the one that
requires more effort, but also extends to a wider data range. The tasks that are being
calculated tend to occur over a longer duration time and includes multiple subtasks,
where subtasks can have different units of measurements.