Construction Management And

Supervision

Construction management aspects - site

organization, coordination, communication &
Quality Control

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

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

Fundamentals of Contract
Contractual aspects of site
management
(Based on
ICTAD
Management
and
Supervision/
Qualitycoordination
control &
organization,
/ SBD 2), related to our
communication & Practical
objective)
guides (Based on ICTAD / SBD 2)
Site organization structure
Types of contract
Site physical organization
Components of a contract
Operation at site
Terms of contracts
Health & safety
Parties to a contract
Environmental Protection
Relationships in a contract
Site Security
Roles and duties of parties
Quality assurance
of contract
Communication
Delegation of Engineers
Law & Language
duties
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

Managerial

relationships

relationships

Conventional Management
Organization
Employer

Engineer / Consultant

Main Contractor

Nominated
Sub- Contractors

Domestic
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 Engineers
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
Engineers authority, except as agreed with the Contractor.

Roles of Engineer (Cont..)

However, whenever the Engineer exercises a specified

authority for which the Employers 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

Instructions
Engineer

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 )

Engineers 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 premobilization 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 Engineers staff

In determining the Organisation Structure there is no hard

and fast rule to apply. However organization should
essentially be structured such that each officers
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

contractors staff

The Contractor shall appoint the Contractors Representative and

shall give him all authority necessary to act on the Contractors
behalf under the Contract.

Unless the Contractors 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 Contractors
Representative.

The Contractor shall not, without the prior consent of the

Engineer, revoke the appointment of the Contractors
Representative or appoint a replacement.

The Contractors Representative shall, on behalf of the

Contractor, receive instructions under Sub-Clause Instruction of
the Engineer.

 It

is the physical
duty of the organisation
Employer to duly provide
Site

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

Contractors 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 Contractors Equipment and
Contractors 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 Contractors
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 Contractors 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 Employers
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 Contractors 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 Contractors 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 Contractors and
Employers 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
Contractors traffic or by the Contractors
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

Contractors Personnel and the Employers
Personnel; and to any other personnel notified
to the Contractor by the Employer or the
Engineer, as authorized personnel of the
Employers 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 recipients

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

Time
disputes

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 Employers Personnel, or
the Employers 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

If the Contractor suffers delay and/or incurs Cost

from
complying with theof
Engineers
instructions
Consequences
Suspension
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

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 records
Weather
site records
Daily

Materials

at site
Contractors 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 ??????