Construction Management And

Supervision

K.P.R.S.Samarsinghe
Assistant General Manager (Western)
 Construction management aspects - site
organization, coordination, communication &
Quality Control
Some fundamentals of Contractual aspects of site
Contract management organization, coordination &
communication
Practical guides
Objective
 Understand your role in CM
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
 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
 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
 Important topics in Construction
Management and Supervision/Quality
Fundamentals of Contract
control
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
 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
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
 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
 Relationships in contracts

Contractual relationships

Managerial relationships
Conventional Management Organization

Employer

Engineer / Consultant

Main Contractor

Nominated Domestic
Sub- Contractors Sub- Contractors

Contractual Relationship

Managerial Relationship
Relationships in Design and Build

Employer

Contractor

Design Team Construction Team

 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
 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
 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.
 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
 Main functions of the Engineer

 Instructions
 Approvals
 Extensions
 Valuation
 Certification
 Determination
 Mediation / Dispute resolution
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.
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.
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
 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.
 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.
Authorities not delegated by engineer (in
NWSDB)

Approving variations
Granting time extensions
Certifying completion
Determinations
Taking over
 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
 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.
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.
 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.
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.
 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.
 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.
 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.
 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.
 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
 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.
 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.
 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.
 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.
 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).
 Recommended modes of
communication
Log entries
Letters
Construction Programmes
Method statements
Meetings with minutes
Amendments / revised drawing
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)
 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.
 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.
 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.
 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.
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.
 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
 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 ??????

THANK YOU