Construction Management And Supervision

1. Construction Management And Supervision K.P.R.S.Samarsinghe Assistant General Manager (Western)

2. Some fundamentals of Contract management Objective Understand your role in CM Contractual aspects of site organization, coordination & communication Practical guides Objectives Understand the necessity of proper site organization, coordination, communication & recordkeeping To provide guidance to decide and apply suitable site organization, coordination, communication & record keeping Construction management aspects - site organization, coordination, communication & Quality Control

3. Why Contract management & Supervision/Quality control in Public Sector important? • Billions of rupees of public funds spent each year • Duty of the contract managers to ensure that the public sector receives the intended goods or services on time, in the right quantity of the right quality at the right cost • Compensate the contractor properly

4. Consequences of poor contract management & Supervision/Quality control • End user frustration because of poor contractor performance, especially in the area of timelines and quality • Lack of contractor accountability • Agency acceptance of poor quality • Increased costs • Under / over payment to contractors • End user less willing to try a different vendor

5. Fundamentals of Contract management (Based on ICTAD / SBD 2), related to our objective) Types of contract Components of a contract Terms of contracts Parties to a contract Relationships in a contract Roles and duties of parties of contract Delegation of Engineers duties Contractual aspects of site organization, coordination & communication & Practical guides (Based on ICTAD / SBD 2) Site organization structure Site physical organization Operation at site Health & safety Environmental Protection Site Security Quality assurance Communication Law & Language Modes of communication Potential areas for disputes Essential record keeping Important topics in Construction Management and Supervision/Quality control

6. What Constituents a contract (CL 1: Definitions) • Contract Agreement • Letter of acceptance • MOU (If any) • Forms of Bid • Terms (Conditions) of Contract / Contract data • Specifications • Drawings • Bill of Quantities • Schedules and further documents

7. Types of contracts in Construction Industry • Measure and pay (Design – bid - Build) • Design and Build (Turnkey) • Cost reimbursement • Fixed price • BOT, BOOT • In NWSDB we mostly come across Measure & Pay / Design build contracts

8. Parties to a contract • Employer • Engineer • Engineer is the person named in the contract data (or any other person appointed by the Employer and notified to the contractor) who is responsible for administering and supervising the execution of the work. Such person may be an engineer, architect, or any other technical person. In the absence of such appointment the Employer him self. • Main contractor • Nominated sub contractors • Domestic Sub contractors In the NWSDB contracts • Employer - Chairman / BOD • Engineer - General Manager / Relevant officer as specified in Contract data

9. Relationships in contracts • Contractual relationships • Managerial relationships

10. Conventional Management Organization Employer Engineer / Consultant Main Contractor Nominated Sub- Contractors Domestic Sub- Contractors Contractual Relationship Managerial Relationship

11. Relationships in Design and Build Employer Contractor Design Team Construction Team

12. Roles of Parties in contracts (Duties / Authorities) • Employer • Handing over of site • Assist contractor in obtaining permits, licenses and any approvals • Appointment of any nominated subcontractors • His part of Safety / Protection of environment • Settle payment due to the contractor • Termination of contract

13. Roles of Parties in contracts (Duties / Authorities) • Contractor • Organization - To organize and plan the work • Provision - To provide material, labour, plant, temporary works and every thing else necessary • Construction - To construct the works in accordance to contract document • Administration - To notify and assist the Engineer

14. Roles of Parties in contracts (Duties / Authorities) - Engineer • The Employer shall appoint the Engineer who shall carry out the duties assigned to him in the Contract. The Engineer’s staff shall include suitably qualified engineers and other professionals who are competent to carry out these duties. • The Engineer shall have no authority to amend the Contract. • The Engineer may exercise the authority attributable to the Engineer as specified in or necessarily to be implied from the Contract. If the Engineer is required to obtain the approval of the Employer before exercising a specified authority, the requirements shall be stated in the Contract Data. The Employer undertakes not to impose further constraints on the Engineer’s authority, except as agreed with the Contractor.

15. Roles of Engineer (Cont..) • However, whenever the Engineer exercises a specified authority for which the Employer’s approval is required, then (for the purposes of the Contract) the Employer shall be deemed to have given approval. • The Engineer has no authority to relieve either Party of any duties, obligations or responsibilities under the Contract • Any approval, check, certificate, consent, examination, inspection, instruction, notice, proposal, request, test, or similar act by the Engineer (including absence of disapproval) shall not relieve the Contractor from any responsibility that he has under the Contract including responsibility for errors, omissions, discrepancies and non compliances

16. Main functions of the Engineer • Instructions • Approvals • Extensions • Valuation • Certification • Determination • Mediation / Dispute resolution

17. Main functions of the Engineer -(continued …) • Determinations • Whenever the contract Conditions provide that the Engineer shall proceed in accordance with the Sub-Clause to agree or determine any matter, the Engineer shall consult with each Party in an endeavor to reach agreement. If agreement is not achieved, the Engineer shall make a fair determination in accordance with the Contract, taking due regard of all relevant circumstance.

18. Main functions of the Engineer -(continued …) • Instructions of the Engineer • The Engineer may issue to the Contractor (at any time) instructions, which may be necessary for the execution of the Works and the remedying of any defects, all in accordance with the contract. The Contractor shall only take instructions from the Engineer, or from an assistant to whom the appropriate authority has been delegated. If an instruction constitutes a Variation, Clause related to Variations and Adjustments shall apply. • The Contractor shall comply with the instructions given by the Engineer or delegated assistant, on any matter related to the Contract. These instruction shall be given in writing.

19. Main functions of the Engineer -(continued …) Engineer’s Impartiality • Wherever, under the Contract, the Engineer is required to exercise his discretion by : • giving his decision, opinion or consent, • expressing his satisfaction or approval, • determining value, or • otherwise taking action which may affect the rights and obligations of the Employer or the Contractor. He shall exercise such discretion impartially within the terms of the Contract and having regard to all the circumstances. Any such decision,, opinion, consent, expression of satisfaction, or approval, determination of value or action may be opened up, reviewed or revised as provided in Clauses for Claims, Disputes and Arbitration

20. Delegation by the Engineer • The Engineer may from time to time assign duties and delegate authority to assistant, and may also revoke such assignment or delegation. These assistant may include a resident engineer, and / or independent inspectors appointed to inspect and / or test items of Plant and /or Materials. The assignment, delegation or revocation shall be in writing and shall not take effect until copies have been received by both Parties. However, unless otherwise agreed by both Parties, the Engineer shall not delegate the authority to determine any matte in accordance with Sub-Clause for Determinations.

21. Delegation by the Engineer • Each assistant, to whom duties have been assigned or authority has been delegated, shall only be authorized to issue instructions to the Contractor to the extent defined by the delegation. Any approval, check, certificate, consent examination, inspection, instruction, notice, proposal, request, test, or similar act by an assistant, in accordance with the delegation, shall have the same effect as though the act had been an act of the Engineer. However: • any failure to disapprove any work, Plant or Materials shall not constitute approval, and shall therefore not prejudice the right of the Engineer to reject the work, Plant or Materials • if the Contractor questions any determination or instruction of an assistant, the Contractor may refer the matter to the Engineer, who shall promptly confirm, reverse or vary the determination or instruction.

22. Authorities not delegated by engineer (in NWSDB) • Approving variations • Granting time extensions • Certifying completion • Determinations • Taking over

23. Summary • As you would realize now you / me have a significant role to play in the NWSDB contract management • In performing the delegated functions of the Engineer to you / me to achieve contract targets, one essential requirement is to: • Organize our selves / sites such that it ensures efficient coordination with all parties • Have an effective communication / record keeping system

24. Site organisation • It is the duty of all involved in the contract management to work collectively towards the completion of the work within the programmed time, at scheduled cost while meeting the set quality standards. To meet these targets appropriate site organisation which ensures efficient coordination and effective communication with all parties in the contract and proper record keeping system is essential.

25. Pre mobilization meeting – A useful tool in site organization • It is very much useful to have a pre-mobilization meeting with the contractor to determine the appropriate site organisation. Agreement with regard to procedures, methodologies, time frames for submittals, compulsory record keeping etc in the execution of work (in keeping to the requirements of the contract) should be reached at this meeting. To have a successful pre contract meeting it is essential to be well conversant with contents of all components of the contract.

26. Site organisation structure Engineer’s staff • In determining the Organisation Structure there is no hard and fast rule to apply. However organization should essentially be structured such that each officer’s accountability is maintained. Consideration shall be given among others to: • Contractors organization structure • Locality of sites and nature of works to be performed Once the organization structure is decided it has to be formally informed to the contractor with; • Designations and names of individuals • Defined authority and responsibility levels • Channels of communications ; to avoid contractual disputes.

27. Site organization structure contractor’s staff • The Contractor shall appoint the Contractor’s Representative and shall give him all authority necessary to act on the Contractor’s behalf under the Contract. • Unless the Contractor’s Representative is named in the Contract, the Contractor shall, prior to the Commencement Date, submit to the Engineer for consent the name and particulars of the person the Contractor proposes to appoint as Contractor’s Representative. • The Contractor shall not, without the prior consent of the Engineer, revoke the appointment of the Contractor’s Representative or appoint a replacement. • The Contractor’s Representative shall, on behalf of the Contractor, receive instructions under Sub-Clause Instruction of the Engineer.

28. Site physical organisation • It is the duty of the Employer to duly provide the right of access and possession of all parts of the site to the contractor. Contractor is at liberty to physically arrange the site with plant and machinery as he wishes, to suit the construction in hand. However the site organization should comply to the requirements for Safety procedures, contractors operation on site and access roads. Our site offices shall be located considering the contractors site arrangement and any other factors as sensibly appropriate.

29. Site physical organization • Contractor’s Operations on Site The contractor shall confine his operations to the Site, and to any additional areas, which may be obtained by the Contractor and agreed by the Engineer as working areas. The Contractor shall take all necessary precaution to keep Contractor’s Equipment and Contractor’s Personnel within the site and these additional areas, and to keep them Temporary Works, which are no longer, required. • Upon the issue of a Taking-Over Certificate, the Contractor shall clear away and remove, from that part of the Site and Works to which the Taking Over Certificate refers, all Contractor’s Equipment, surplus material, wreckage, rubbish and Temporary Works. The Contractor shall leave that part of the Site and Works in a clean and safe condition. However, the Contractor may retain on Site, during the Defects Notification Period, such Goods as are required for the Contractor to fulfill obligations under the Contract.

30. Site physical organization • Safety Procedures The Contractor’s shall : • Comply with all applicable safety regulations • Take care for the safety of all persons entitled to be on the sites. • Use reasonable efforts to keep the site and works clear of unnecessary obstruction so as to avoid danger to these persons • Provide fencing, lighting, guarding and watching of the Works until completion and taking over under Clause Employer’s Taking Over ; and • provide any Temporary Works (including roadways, footways, guards and fences) which may be necessary, because of the execution of the Works, for the use and protection of the public and of owners and occupiers of adjacent land.

31. Site physical organization Protection of the Environment • The contractor shall take al reasonable steps to protect the environment (both on and off the Site) and to limit damage and nuisance to people and property resulting from Pollution, noise and other results of his operations. • The Contractor shall ensure that emissions, surface discharges and effluent from the Contractor’s activities shall not exceed the values indicated in the Specification, and shall not exceed the values prescribed by applicable Laws.

32. Site physical organization • Quality Assurance • The Contractor shall institute a quality assurance system to demonstrate to the Engineer for information before each design and execution stage is commenced. When any document of a technical nature is issued to the Engineer, evidence of the prior approval by the Contractor himself shall be apparent on the document itself. • Compliance with the quality assurance system shall not relieve the Contractor of any of his duties, obligations for responsibilities under the Contract

33. Site physical organization • Health and Safety The Contractor shall at all times take all reasonable precautions to maintain the health and safety of the Contractor’s Personnel. In collaboration with local health authorities, the Contractor shall ensure that first aid facilities are available at all times at the Site and at any accommodation for Contractor’s and Employer’s Personnel, and that suitable arrangements are made for all necessary welfare and hygiene requirements and for the prevention of epidemics. • The Contractor shall send, to the Engineer, details of any accident as soon as practicable after its occurrence. The Contractor shall maintain records and make reports concerning health, safety and welfare of persons, and damage to property, as the Engineer many reasonably require.

34. Site physical organization • Access Route The Contractor shall be deemed to have been satisfied as to the suitability and availability of access routes to the Site. The contractor shall use reasonable efforts to prevent any road or bridge form being damaged by the Contractor’s traffic or by the Contractor’s Personnel. These efforts shall include the proper use of appropriate vehicles and routes.

35. Site physical organization Security of the Site • the Contractor shall be responsible for keeping unauthorized persons off the Site, and • authorized persons shall be limited to the Contractor’s Personnel and the Employer’s Personnel; and to any other personnel notified to the Contractor by the Employer or the Engineer, as authorized personnel of the Employer’s other contractors on the Site.

36. Communication • Wherever the Conditions provide for the giving or issuing of approvals, certificate, consent, determinations, notices and request, these communication shall be : • In writing and delivered by hand, sent by mail or courier ; and • delivered, sent or transmitted to the address for the recipient’s communications as stated in the Contract Data. However: • (i) if the recipient gives notice of another address, communications shall thereafter be delivered accordingly; and; • (ii). If the recipient has not stated otherwise when requesting and approval or consent, it may sent to the address from which the request was issued. • Approvals, certificates, consents and determinations shall not be unreasonably withheld or delayed. When a certificate is issued to a Party, the certifier shall send a copy to the other Party. When a notice is issued to a Party, by the other Party or the Engineer, a copy shall be sent to the Engineer or the other Party, as the case may be.

37. Law and Language • The Contracts are governed by the laws of Democratic Socialist Republic of Sir Lanka and the language for all purposed for the Contracts are English (Normally).

38. Recommended modes of communication • Log entries • Letters • Construction Programmes • Method statements • Meetings with minutes • Amendments / revised drawing

39. Potential areas of contractual disputes • Time • Extension of time for completion • Suspension of work (These are almost always associated with cost implications, LD / OH, idle claims, PE) • Quality • Substandard work (This too is in most cases associated with cost implications) • Cost • Contractual claims (Over head claims, Idle claims, loss of profit, price escalation, change of legislation etc) • Valuation (SSR, substantial variation in BOQ quantities)

40. Extension of time The Contractor shall be entitled to an extension of the Time for Completion if • a Variation (unless an adjustment to the Time for Completion has been agreed under Sub-Clause for variation Procedure) or other substantial change in the quantity of an item of work included in the Contract; • a cause of delay giving an entitlement to extension of time under a Sub-Clause of the Conditions of contract. (Ex. Unforeseen adverse physical conditions) • exceptionally adverse climatic conditions. • Unforeseeable shortages in the availability of personnel or Goods caused by epidemic or governmental actions; or • Any delay, impediment or prevention caused by or attributable to the Employer, the Employer’s Personnel, or the Employer’s other contractor on the site. If the Contractor considers himself to be entitled to an extension of the Time for Completion, the Contractor shall give notice to the Engineer in accordance with relevant Sub Clause. When determining each extension of time, the Engineer shall review previous determinations and may increase, but shall not decrease, the total extension of time.

41. Suspension of Work • The Engineer may at any time instruct the Contractor to suspend progress of part or all of the Works. During such suspension, the Contractor shall protect, store and secure such part or the Works against any deterioration, loss or damage. • The Engineer may also inform the cause for the suspension. If and to the extent that the cause is notified and is the responsibility of the Contractor, the following Sub-Clauses shall not apply.

42. Consequences of Suspension If the Contractor suffers delay and/or incurs Cost from complying with the Engineers instructions under Sub-Clause Suspension of Work and/or from resuming the Suspended work, the Contractor shall give notice to the Engineer and shall be entitled to : • an extension of time for any such delay, if completion is or will be delayed, • payment of any such Cost, which shall be included in the Contract Price. • After receiving this notice, the Engineer shall proceed in accordance with Sub-Clause for Determinations to agree or determine these matters. • The Contractor shall not be entitled to an extension of time for, or to payment of the Cost incurred in, making good the consequences for the Contractor’s faulty design, workmanship or materials, or of the Contractor’s failure to protect, store or secure in accordance with relevant Sub-Clauses.

43. Quality and Cost disputes • Similar to the case of time related disputes (as we discussed in the previous two slides), terms of contract (Conditions) provide procedure for dealing in situations with quality and cost related disputes.

44. Necessity of proper site record keeping • One essential requirement to manage the contract as a whole and specifically to manage the contractual disputes is appropriate site record keeping.

45. Essential record keeping at site • Daily site records • Weather records • Materials at site • Contractor’s Personnel and Equipment • Quality assurance documents • Quality control documents • Test results and certificates of Materials • Check list for concreting • Report of concreting • Concrete test records • safety statistics, including details of any hazardous incidents and activities relating to environmental aspects and public relations • Programme / Progress • All correspondence from and to, to the contractor

46. Final remarks Objectives of this discussion; • To get an overview of your role in CM (in contractual terms) • Understand the necessity of proper site organization, communication & record keeping • To provide guidance to decide and apply suitable site organization, communication & record keeping Have we achieved them ??????

47. THANK YOU