EAT 357/3- CONSTRUCTION MANAGEMENT

ASSIGNMENT NO.3

Name: Nurwafaa Ainaa Binti Mohd Nizam

Matric No.: 141200387
Programme: RK 01
Prepared for: PM. Ir. Abdul Ghapar bin Ahmad
Question 1
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.

Reports and Site meeting

Site meeting

Site meetings are an important part of the successful management of construction projects.
Regular site meetings between the different stakeholders on a project can help facilitate better
communication and a shared sense of purpose making it more likely that the project is completed
successfully. Project failures are often attributed to inadequate management, with a key factor being
a lack of proper communication.

Meetings should be regular and formerly scheduled, perhaps on a weekly or monthly basis
depending on the parties involved, although the size and complexity of the project may necessitate a
more regular schedule. They are used as a means of reporting progress, enabling discussion of any
problems or issues, and allowing the proposal of solutions. They provide a good opportunity for two-
way discussions of any issues that have arisen or that are anticipated.

Holding meetings on site enables the stakeholders to see progress for themselves (rather
than relying on a report for another party) and to look at problem areas, discuss quality issues,
assess mock-ups and so on.

Construction progress meetings are a specific sort of site meeting during which the contract
administrator receives progress reports from the contractor and consultant team, cost reports from
the cost consultant and other more specific information such as sub-contractor reports, progress
photos and so on.
 In order to be able to provide the correct information at construction progress meetings, the
contractor may previously hold a progress meeting with sub-contractors sometimes called a
production meeting.

Meeting minutes should be prepared, with a requirement that any disagreement with the
items recorded in the minutes is raised within a pre-defined period (perhaps one week). Progress
meetings may also result in the preparation of a construction progress report for the client.

Construction progress report

Construction progress reports are prepared regularly (often monthly) by the contract
administrator during the construction phase and issued to the client. They will generally be a
summary of the reports received and discussions held at construction progress meetings.

Construction progress reports may be a combination of minutes of construction progress

meetings and reports received during those meetings, with key issues highlighted in an
accompanying cover note. Alternatively they may be a re-written version of that information
prepared specifically to suit the client's requirements.

Construction progress reports might include:

A summary of the progress made in each key area of the project.

Analysis of progress against the programme
An explanation of the causes of any delays.
Progress photos.
Analysis of key performance indicators.
An assessment of any quality issues.
Weather reports.
An assessment of any health and safety issues.
Reports of any issues with neighbours (such as noise, dust, vibrations, rights of light,
access, safety etc).
Reports about off-site fabrication and off-site payments.
Earned value analysis.
An assessment of any design issues.
An assessment of any other issues that need to be addressed and proposals for
addressing them.
Any instructions required from the client.
Look ahead to the next period (including specific requirements for progress photos
during the next period, which may include off-site fabrication photos).

On construction management projects, the construction manager holds regular construction

progress meetings with the client and consultant team, however they will also hold regular
construction progress meetings with trade contractors to discuss on and off-site progress against the
programme and to co-ordinate the release of information. It may sometimes be appropriate for
these meetings to take place at the trade contractor's premises. Construction progress reports will
then be prepared for the client.

Similar reports may be prepared on management contract projects in relation to works

contractor progress.
Physical Progress of works
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.