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Assessment 01 |
Assessment 01 | i
Introduction ................................................................................................................................... 1
2.
2.1.
2.1.1.
As a Measurer ....................................................................................................................... 2
2.1.2.
2.1.3.
As Lawyer .............................................................................................................................. 3
Modern Stage ............................................................................................................................ 3
2.2.
2.2.1.
As a Measurer ....................................................................................................................... 3
2.2.2.
2.2.3.
As a Lawyer ........................................................................................................................... 3
Future Stage .............................................................................................................................. 4
2.3.
3.
4.
4.1.
4.1.1.
4.2.
4.3.
4.4.
4.5.
4.6.
4.7.
5.
5.1.
5.2.
6.
6.1.
6.2.
1. Traditional .......................................................................................................................... 12
6.2.1.1.
Advantages....................................................................................................................... 13
6.2.1.2.
Disadvantages .................................................................................................................. 13
6.3.
6.3.1.1.
Advantages....................................................................................................................... 14
Assessment 01 | ii
Disadvantages .................................................................................................................. 14
1. Management Contracting.................................................................................................. 14
6.4.
6.4.1.1.
Management Contracting............................................................................................... 14
6.4.1.2.
7.
7.1.
7.2.
7.2.1.
Arbitration ........................................................................................................................... 16
7.2.2.
8.
Conclusion ................................................................................................................................... 18
9.
References .................................................................................................................................... 19
List of Figures
Figure 6.2.1.1 Contractual Procedure in Traditional Procurement Method..12
Figure 6.3.1.1 Contractual Procedure in Design & Build Procurement Method..13
Figure 6.4.1.1 Contractual Procedure in Management Contracting Procurement Method...14
Assessment 01 | iii
List of Abbreviations
EOT Extension of Time
MS Office Microsoft Office
MS Project Microsoft Project
QS Quantity Surveyor
BIM Building Information Modelling
RICS Royal institute of Charted Surveyors
FIDIC Fdration Internationale Des Ingnieurs-Conseils
CAD Computer Aid Design
ADR Alternative Dispute Resolutions
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Wrong assumptions;
Poor planning;
Unrealistic activity duration or interrelationships;
Low productivity of resources;
Lack of manpower and machinery resources;
Poor quality of work; (extensive remedies)
Commitment to HSE requirement;
Financial issues; and
Late delivery of the required materials.
If any construction delays which can befall due to any above events, they are wont excuse
or wont compensable. Those delays should be bear by contractor. And contractor is
accountable to recover such delays. Otherwise the contractor will be applicable to the
penalties or liquidated damage.
In other sides Khaled A., Ayman H., Gamal E. (2014) states that Employers are taking
higher risk in delay of construction due following
a) Delay in handing over the job site;
b) Use or occupation by the employer of any part of the permanent works, except as
may be specified in the Contract;
c) Different physical conditions from those provided during the tender stage;
d) Changes to the original contract scope;
e) Late engineering deliverable;
f) Late procurement deliverables;
g) Frequent revisions for engineering deliverable;
h) Delay in approval above the contractual allowance;
i) Delay in payment,
j) Out of sequence for engineering and procurement deliverables;
k) Suspension of the work;
l) Adverse weather conditions;
m) Changes to project specifications;
n) Force Majeure (War, hostilities, invasion, act of foreign enemies revolution,
terrorism, sabotage by persons other than the contractors personnel, or civil war
within the country, etc.); and
o) Existing underground utilities which are not shown in the as-built drawing received
by the contractor during the tender stage.
If any construction delays befalling due to above events can be excusable and compensable.
But the contractor at moment is accountable to mitigate totally or partially the effect of
above delays. In case contractor shall applicable to EOT claims.
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Client
Consultant
Contractor
Contract Value
: RS. 728,000,000.00
#
01
EVENT
START DATE
FINISH DATE
03/12/2013
DELAYED
(DAYS)
EFECTIVE
DELAY
(DAYS)
44 Days
44 Days
According to the above table total effective delay period is 44 calendar days. Adjustments
should be made to Head office overhead and preliminaries.
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Subject: DELAY EVENT NO 1 Not finalized Ceiling type whether is it Metal Ceiling
or Mineral Fiber Ceiling. Notice of the Delay event No 01
In pursuant to Clause 8.4 (e), we give our notice that above delay event has occurred within
the last 28 days which is such as fairly entitle us to an extension of time for the completion
of the works or a section or part of thereof.
Further we inform you that the above delay is occurred with related the clause 8.4 (e)
Thank you,
Yours faithfully,
.
Ulfat Bari Ab,
Quantity Surveyor,
VVK-LHP Joint Venture
4.4.Mitigation Action
Due to the delay of sample approval whole installation of ceiling works delayed. Frequently
emails and letters sent to consultant to give approval for type of ceiling to be installed.
Original scope was laying Mineral fiber ceiling, the client likely to install Metal ceiling
instead of mineral fiber ceiling. Cost variation and rate analysis has been submitted to the
employer and the engineer. In progress meeting also questions raised by contractor but the
decision is still pending.
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=AB
= LKR (4, 225, 000.00 - 2,990, 000.00)
= LKR 1,235,000.00 (D)
=FxG
= 60 x 1,353.42
= LKR 81,205.48 (Y)
= (C x A) / B
= LKR (728,000,000.00 x 5%)/ 730 Days
= LKR 49,863.01
= 60 x 49,863.01
= LKR 2,991,780.82 (X)
=X+Y
= LKR 3,072,986.30
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The project workforce (including plant and equipment) can be engaged on the site
for longer than originally allowed in the project estimates. The work itself takes
longer to complete and the project suffers the cost of its workforce being engaged
for a longer period.
Additional workers, staff and equipment are deployed on the project to
overcome the effect of the delay by increasing production.
Disruption claim calculations are more complex than EOT claims. It consists the extra time
productive workers, plant, machineries, staff and equipment what engaged on the project.
These costs need to be moderated to allow for normal inefficiencies and nonworking times.
According to the Excell Consulting International (2014) Disruption Claims include, but
are not limited to:
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Contractors may maximize their recovery of EOT claims and disruption claims by applying
following ethics:
Before choosing suitable procurement system the employer necessity to study their
project scope and objectives grounded on their requirements, the procurement selection
can be vary. Task data summary are given below.
Technically Complex
Inexperienced client
Laboratory complex at City center
6.1.Procurement Methods
Common procurement methods what uses in construction market are explained below.
6.2.1. Traditional
Traditional method can be define, the Employer hires the Contractor to deliver a required
scope of works for a fixed price lump sum. And the responsibility for the design and the
consultant team is suggested by the Client. Figure 6.2.1.1 shows the contractual procedure
of traditional procurement method.
6.2.1.2.Disadvantages
This procurement method most suitable for: All clients, including inexperienced clients,
Complex projects and Quality design development. And not suitable for fast track
construction.
6.3.1. Design and Build
This type of procurement stands,
Contractor provides a completed building to an
established cost and programme. Responsibility for design and construction should take by
contractor. Following three types of design and build preparations,
In this method the major threat is, Client doesnt specify clear requirement of the project
and contractors will use their own way to complete the project. This can be cheapest
procurement method rather than others. This procurement method is most suitable for fast
track construction and not suitable for complex buildings. . Figure 6.3.1.1 shows the
contractual procedure of design and build procurement method.
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6.3.1.2.Disadvantages
Assessment 01 | 14
Package Deal
Turnkey
Project Management
Management Fee
Design and Manage
Develop and construct
Measured term contract
For this task, the client want a laboratory complex in city center and he is inexperienced
with procurement also. Even the data says the project should be technically complex. As
Quantity Surveyor author can suggest Traditional Procurement system to carry out the work
successfully. Traditional procurement always deals with the complex project as laboratory
projects. Client can certain about the cost. Design and all specification must be ready before
commencing the work. Though the traditional procurement is the perfect procurement for
above required project.
7. Task 2.2
7.1.Dispute Resolution
From the beginning Quantity Surveyor is acting as a lawyer between the two construction
parties while disputes arising. In earlier litigation applied for courts to resolving disputes
among the construction industry. Meanwhile it was eat the money and time. All the parties
struggle to complete their projects in required time. Some disputes judgment take few
months and some more took year to year. Though the construction industry has to find
ultimate way to resolve this kind of disputes in house. Ultimately Alternative dispute
resolution (ADR) techniques rise among the construction industry.
7.2.Alternative dispute resolution (ADR)
Alternative dispute resolution (ADR) methods are gradually being applied instead of
litigation to resolve even the toughest of construction disputes. Selecting ADR can
assistance to avoid extensive and costly litigation. It can be speedup the conclusion of
disputes with flexibility and low cost. There are five famous ADR system shown below,
Arbitration
Negotiation
Mediation
Adjudication
Conciliation
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Flexibility - Most flexible than litigation. The parties can choose their arbitrator
where arbitration is held. It can complete politely and very soon, and having
minimum trouble to ordinary Business.
Speed & Low Cost -The litigation eat as much time and money. In litigation,
payments for Attorneys/solicitors are very high and should pay several times. In
other hand the arbitration is preferred low cost and faster than court procedure.
Nevertheless charges for Arbitrator quite expensive, but it can save time.
Privacy This always happening at back to the door. So media or public couldnt
recognize the disputes. Privacy and security for all information regarding disputes
protect from public. In other hand litigation happening in public courts though the
privacy damage on the spot.
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