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Pokhara University
M. Sc. Construction Management
IIIrd Semester Parties of a Contract
• Chapter:- 3 Project Get Started
Contractors and Consultants moves in
Employer’s Role to get project started
Kick off Meetings
Contractor’s submission- WS, Safety Plan, QAP • 3 parties under a typical FIDIC Contract :
Material testing facilities- Personnel, Lab and equipments
Contract Doc. Available at site
Schedules and Plans Review
Safety and Security Related Plans
Safety management System
Quality management System Designed and initiated The Employer
Material testing facilities- Personnel, Lab and equipments
Contract Doc. Available at site
• Refer-
Consultant Procurement Guidelines ADB (ww.adb.org)
Consultant Procurement Guidelines WB (ww.wb.org) The Contractor
Consultant Procurement- PPA 2063; PPR, 2064
Standard Bidding Documents for procurement of works, PPMO (www.ppmo.gov.np)
Standard Bidding Documents for procuring Consultant, PPMO (www.ppmo.gov.np)
Standard Procurement Documents, Procurement of Works- ICB, PPMO, January 2012
(www.ppmo.gov.np)
Standard Bidding Documents for procuring goods, PPMO ( www.ppmo.gov.np)
The Engineer (Supervisor)
Nec cps
Definitions Definitions
•Employer : The party named in the Contract as the •Engineer: The Consulting office, or Engineering office or
"FIRST PARTY" who will enter into contract with the Engineer or any other technical body appointed from time
Contractor for the execution of the Works covered by to time by the Employer to exercise in whole or in part the
the Contract, or any other party authorized by the powers of the Engineer in accordance with the Conditions
of the Contract provided that the Contractor shall be
Employer to exercise the powers and obligations of the
accordingly notified in writing.
First Party, provided that the Contractor will be •Engineers Representative - Any resident engineer, or
informed accordingly in writing . clerk of works appointed by the Engineer from time to time
•Contractor : The person, company or joint venture •Site - The land and other places provided by the
named as Second Party in the Contract whose Tender Employer or designated as such where the Works are to
has been accepted by the Employer and with whom the be executed, and any other places specifically designated
in the Contract as forming part of the Site.
Employer has entered into Contract, and includes the
Contractors personal agents and his legal successors
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Parties of a Contract
Parties of a Contract
• Engineer:
• Employer
Assigned by the Employer to represent the Employer
Name, contact information and authorities of an Defines the requirements and specifications
Engineer are stated in relevant parts of the Works Provides the construction site
Contract
Provides the financial resources (usually)
After consulting with the Employer and the Contractor,
Provides the necessary conditions to the Contractor
should propose fair and objective solutions for claims.
for the execution of works
Checks the quality of the appropriateness of the
workmanship and the materials used
Approves the payment certificates of the Contractor
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Employer’s Role to get project started Employer’s Role to get project started
• “reasonable evidence that financial • If the Employer fails to provide this evidence, the
Contractor can suspend work, "or reduce the rate
arrangements have been made and are being of work”, unless or until the Contractor actually
maintained which will enable the Employer to receives the reasonable evidence.
pay the contract price punctually”; and • This was an entirely new provision to the 1999
FIDIC form and provides a mechanism whereby
• “Before the Employer makes any material the Contractor can obtain confirmation that
change to his financial arrangements, the sufficient funding arrangements are in place to
Employer shall give notice to the Contractor enable him to be paid, including if there is a
significant change in the size of the project during
with detailed particulars.” construction.
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Technical Experts People who have special knowledge related to the project. For example,
or group that supports, is affected by, or is a DBA, network engineer, systems engineer, vendor, consultant,
interested in the project. Clients or
functional user, or subject matter expert.
People who receive service and support from Fordham IT.
• Sometimes members of this group are referred to Customers
Steering People who have been assigned to oversee the general direction of the
as stakeholders. In either case, these are the folks Committee
Community
project and/or serve as an advisory board.
The University community, including faculty, students, staff, alumni,
who should be invited to the kickoff meeting friends, etc.
Public Groups that might have a vested interest in the project or can assist in the
communication plan such as local media, professional societies, and
regulatory agencies.
Contractor’s Submission
Project Kick- off Meeting
• Timeline: Discuss a tentative timeline for the project, but be
• A typical agenda for Kick-off meeting could be- sure to let everybody know that the timeline will need to be
Change Control: Define the process that will be used to manage validated once the detailed project schedule is completed.
change, especially scope change. • Site office: The Contractor shall provide and maintain the
Communication Plan: Define how the project communication site office as per the Contract Documents
will be done: Status Reports, frequency of meetings, project • Site set-up: The Contractor shall be responsible for setting
portal, etc. up the site, hoarding, storage and arranging utilities etc.
Risks: Identify the main potential project risks. This should be • Project Sign: The Contractor shall provide a project signage
handled as a mini risk assessment session.
as per the Contract Documents.
High-level Requirements: This is a very important part of the
meeting, since you can collect a high-level description of each • Cost breakdown/Cash flow: The Contractor shall submit, to
requirement, usually in a few lines per requirement. It is the Consultant, a breakdown of the contract price for each
important to identify each requirement with an identification section of the work and a breakdown of the contract price
number or ID, and if possible with a priority indicator, like related to time, for cash flow purposes. This is required
high, medium, low. I have successfully used a PowerPoint table within a reasonable time, but must be submitted and agreed
to capture requirements during the meeting so that everybody to prior to the first progress billing.
can see them when projected on a large screen.
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Quality Management System (QMS) Six Problem Solving Steps for Quality
Service Quality is,
Fitness of use/customer expectation, • Identify
Consistency to delivery (conformance) and – Recognize the symptoms
Design quality subject to Continuous Improvement. • Define
Quality by design- before the Product Line, In the PL, – Agree on the problem and set boundaries
End of the PL
QM is the planning, organizing, Controlling/Monitoring • Investigate
and directing of processes to ensure the objective are – Collect data
met. • Analyze
Whereas, TQM is more than QM in terms of system – Use quality tools to aid
approach, communications, commitment, policy,
culture, control, leadership (Oakland & Sohal1996) in • Solve
order to improve competitiveness, effectiveness, – Develop the solution and implement
focuses on prevention not detection. • Confirm
– Follow up to ensure that the solution is effective
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why QM is Important to the Construction Industry why QM is Important to the Construction Industry
• 3 main reasons for pursuit of quality (Beckford, J 1998: • 3 main reasons for pursuit of quality (Beckford, J 1998:
Quality A critical Introduction Chap 1) :- Quality A critical Introduction Chap 1) :-
• Ethical :
• Social :Post-war era and recognition of quality on mgt
Emergence of environmental movements.
platforms (Mayo, Herzberg & McGregor – different ways of
Minimize environmental damage, Global warming. Proper Waste
designing & managing jobs/orgs) and dumping of waste designs. Whose responsibility? At national
• Unemployment levels cause by achieving quality?? - Minimize and organization levels. At manager and individual level
waste of talent, costs of defects, wastages and maintenance. • Other Factors:
E.g , zero defects, no rework or rectification. Efficient systems. Technological impact : innovation, export technology, state-of the
In USA 25% of bldg cost due to waste and defects, Failures in art materials and equipment, Internet Technology, disruptive
technologies.
design in UK amounted to > £ 1Bn Studies showed 10%
Legal & Political : Privatization & deregulations, reforms National
improvement in construction efficiency adds 2.5% to GDP
reputation. Govt. Incentives for exporting services and Knowledge-
(Australia, CIDA1993) based global economy. Regulations and statutory requirements.
Quality Management…
Quality Management
• Quality Engineering:
involves the application of procedures to ensure that
the engineering and design for a structure proceed
according to recommended and mandatory criteria set
• Quality Control by related codes, authorities and organizations; while
• Quality Assurance it produce a facility that most economically serves the
owner’s needs.
• Total Quality Management
• Many of these standards are required by law and /or codes
• It is very expensive to correct mistakes once construction has
• Quality Engineering, begun
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1. Quality Characteristics
Total Quality Management
2. Quality of Design
Quality Assurance 3. Quality of Conformance
Quality Control
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The role varies depending on the contract e.g. re-measure, Design & Build
(D&B), Design, Build, Finance & Operate (DBFO), and Early Contractor
Involvement (ECI) and whether our client is the Employer or the Contractor
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Thank You
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