Construction Site Management

1. Construction Site Management Delays, Disruption & EOT & Acceleration 6509BESG LJMU 2017

2. Course Overview Learning outcomes 1. Apply management theory and practice to the modern construction production process.

3. Brief Revision • Planning

4. Project Management • 1. Project Management • Leadership vs Management • Organizational Structures • Resource Management • Skills and responsibilities • 2. PM Current Practices • Institutes • Trends • Control Systems • 3. Time, Cost and Quality • Time Management • Cost Vs Quality • Teamwork • Time Management • Cost Management, • Quality

5. Project Management • Management • Leadership vs Management • Inspiration - Vision • Control - Goals • Organizational Structures • Autocratic/Democratic • American/British/Chinese • Matrix Responsibilities • Power of Permission • Power of Association • Resource Management • Skills and responsibilities • PMBOK • Current Practice • Trends • PMI • SSPM • AssocPMUK • Institutes • Professional • Certification • Project Office • Control Systems • Property Cycles • Design Intent / Design & Build • Forensic Investigations • BIM?

6. Positional Power Client PM Arch Eng QS Contractor Product Sub-C Sub-C Sub-C

7. Control Steps

8. BCA Site Staff Requirements

9. Site-Management Obligations • Hoarding & Sign Board • Wash bays and water run-off pits • Site office & pest control • Temporary water/power • Access and Waste removal • Main-Con / Sub-con responsibilities • Identify Mock-ups / Approvals / Specifics • Permit to Commence Work • Survey of boundary / Setting-out-points • Crane Locations and type

10. Typical Correspondence Register

11. Behavioural Science • Motivation (Maslow) • Getting things done through others • Teamwork

12. Planning • Priorities and Sequencing • People (PM, SO, etc) / Resourcing • Initial Critical Path Network program • Phasing/TOP/Handing-Over • Methods • Set up regular Site Meeting / Design Team Meeting • Approval Systems (AI, AD, Site Memo etc) • Documents Issuance system

13. BCA Site Staff Requirements

14. Construction Site Management Delays, Disruption & EOT & Acceleration 6509BESG LJMU 2017

15. Extension of Time • SIA Contract (Clauses 23 and 24) allows for EOT and (pre-agreed) Liquidated Damages for delays not foreseen. (Also UK, Joint Contracts Tribunal (JCT) and RIBA Contracts) • “Time-at-large” if EOT not agreed • Contractor must give Notice within one month • Architect must reply within one month if Contractor is entitled “in principle”

16. Delay or Disruption • Prevention Principle • Mitigation of Delay

17. Delays and Acceleration The objectives of this lecture are • To differentiate between delay and disruption • How they can arise • To understand what considerations are necessary when delays are experienced • To discuss , in some detail, the term Concurrent Delay and how it arises.

18. Delays and disruption • Delays are inevitable on the majority of projects • Can be reduced by a properly considered programme • The programme should be updated to record actual progress and any extensions of time • If these are followed then the programme is a good tool for managing change and delay

19. Delays and Disruption Delays( in the contractual context) • Generally some item or event that leads to a delay in the start ,regular progress of the works or completion of the project • Delays in the start or regular progress do not necessarily mean completion will be delayed • Students – why might that be the case?

20. Delays and Disruption Students • If there has been delay to the works but the completion is not affected can • a contractor claim an extension of time • a client claim L&A damages

21. Delays and Disruption Disruption • “Disruption is a disturbance,hinderance or interruption of a Contractors normal working methods, resulting in lower efficiency. • If caused by the Client, it may give rise to the right of compensation either under the contract or as a breach of contract”

22. Delays and Disruption Disruption • Generally affects a contractors intended labour or plant output • It is distinctly different from delay in that a contract may be disrupted but the completion date not affected.

23. Delays and Disruption Examples of Delay Client Responsibility • Late possession of the site (students examples of how that might occur)) • Access to the site • Variations to the contract • Late receipt of information from his design team • Failure to pay on time – determination. • Discrepancies in contract documents

24. Delays and Disruption Examples of delay Contractors responsibility • Incorrect programme and methodology • Weak site management • Delays by the supply chain • Unforeseen site conditions • Poor health and safety • Poor quality of workmanship • Sometimes the weather

25. Delays and Disruption Examples of disruption • Out of sequence working caused by a change in design • Late information requiring trades to move on to something else or leave site • Large volume of variations that require additional resources or resources working on top of each other. • Generally leads to a loss of efficiency

26. Change Mechanisms Site Instructions Variation Orders Architect’s Direction and Instructions Minutes of Meetings Etc.

27. Extension of time • If the client has delayed the contractor from completing the works by the completion date then the contractor is usually entitled to an extension of time, dependant on the form of contract agreed • If the contractor prevents the completion of the works by the agreed completion date then the contractor will be liable to pay Liquidated and Ascertained Damages to the Client.

28. EOT Example

29. Contractor’s EOT Report

30. Contractor’s EOT Report

31. Outline

32. Schedule of Delays

33. Snapshot Analysis

34. Snapshot Analysis

35. Contractor’s EOT Report

36. EOT Summary

37. EOT Contractor’s Claim

38. EOT Contractor’s References

39. EOT Consultants Assessment

40. EOT Consultant’s Recommendation

41. EOT Additional Remarks

42. Liquidated and ascertained damages (LAD’s) • Predetermined calculation of loss on the part of the client if the contractor does not complete on the agreed completion date. • Usually expressed as a cost per week. • Client does not have to prove his actual losses. • Contractors liability is limited to the agreed damages.

43. Extension of time • Most contracts will have a clause allowing the client to award an extension of time to the contractor for the reason of the occurrence of a relevant event(JCT2011) or compensation event(NEC3) • Important to the contractor because it protects him from the client levying liquidated damages. • If the contractor does not have an extension of time then the client may levy L&A damages ( providing the contact administrator has issued a Certificate of Non Completion)

44. Extension of time • The extension of time award may allow the contractor to claim for financial Loss and Expense (depending on the relevant or compensation event). • Grounds for an extension of time may vary on different types of contract. • These grounds can be removed if both parties agree and the contractor , usually, is prepared to take on the risk. • A common one is removing the normal entitlement due to exceptionally inclement weather

45. Extension of time • The contractor is normally expected to give notice of a delay and request an EOT, providing that the delay is likely to extend the completion date. • The contractor should also notify if he intends to claim loss and expense. • The contract administrator should award an EOT , if he believes one is due swiftly, so that a revised completion date can be agreed. • Not easy as it could be over or under awarded

46. Examples of relevant or compensation events that attract loss and expense • Late possession of the site • Access to the site • Variations to the contract • Late receipt of information • Discrepancies in contract documents • Instruction to delay the works • Delays by the clients artists and tradesmen • Unforeseen works

47. Examples of relevant or compensation events that do not attract loss and expense • Exceptionally adverse weather. • Strikes, civil commotion. • Shortage of labour or material. • Delay on the part of utility companies. • Force majeure. • Damage to the works

48. Concurrent delay • We are considering a simple contract to build an office block • The duration is 12 months from January 2013 to December 2013 • The form of contract is JCT 2011 ( with quants). • Contract overruns by exactly 1 month to end of January 2014. • Two causes of delay • Carrying out of remedial work to rectify the contractors poor workmanship. • Variations ordered by the architect. • Lets assume that they are of equal potency.

49. Concurrent delay • The considerations are; • Should the contractor be granted a months extension of time? • Is the contractor entitled to recover a months worth of prolongation costs? • Is the employer entitled to recover a months worth of liquidated damages? • JCT 2011 does provide for all of these if appropriate.

50. Concurrent delay – what is it? • “The expression concurrent delay is used to denote a period of project overrun which is caused by two or more effective causes of delay which are of approximately equal causative potency” Marrin QC, Society of Construction Law, February 2013 • “ Two or more delay events occurring within the same time period each independently affecting the Completion Date” Judge Seymour – Royal Brompton Hospital NHS Trust v Frederick Hammond & Ors.