Contractual Procedures 3

Contractual Procedures Assignment 3
Introduction
The construction of the alternate international airport at Weerawila is a vital component of the
integrated Southern Development Program which comprises the construction of the harbour at
Hambantota and the oil refiner. This is in order to gear the aviation sector in Sri Lanka to fall in
line with the other developed countries. The Government has focused its attention towards
constructing a modernized alternate airport rich with facilities to boost tourism as well.
In the given assignment we are appointed as Contract Administrator of the above airport and
Airport and Aviation Authority as well as the client wishes to know certain requirements to
proceed with the work.
The first task is Task a, is linked to the chain of events in the design and construction process of
Proposed airport, based on the client requirements.
As to the contract administrator we have mention the roles and responsibilities of our
organization to give the client a proper approach of the organization. It is mentioned in the Task
b, and evaluate the purpose and activities in the organization are specified in the Task c.
We have to advice the Airport and Aviation Authority, alas the client about the contractual
Page7
arrangement and what are the precautions and how to handle the Nominated sub-contractors
and Domestic sub-contractors. Those are mentioned in the Task d.
Finally, Evaluates the forms of contract in respect of the requirement for suppliers are describe
in the Task e.
P O O R N I M A D A S S A N A Y A K E, C S C T 2 0 0 9 2 8
COLOMBO SCHOOL OF CONSTRUCTION TECHNOLOGY
Task a;
Requirements of Design and Construction process ( Design and Build)
The clients requirement mainly involves with the Time management, it is relatively high and
Quality of the work should be maximum and the site selection for the airport. The provision of
a proposed airport at Weerawila involves substantial capital investment and large-scale
construction work. The design cannot be completed before the construction starts because its a
large scale project and numerous variations can come in the process.
The Availability of suitable land for the construction of the airport and the reservation of land
for future expansion are important considerations. Fast and convenient access facilities for
passengers and freight are essential for an Airport to provide an efficient service. Locations
offering convenient connections to an adequate road network and railways are preferable. The
actual process of site selection falls into several major steps commences with an assessment of
the shape and size of the area required for the airport. Factors which primarily affect airport site
selection are as follows; land availability, surrounding area and land use patterns, atmospheric
conditions, obstacles, availability of visibility, ground access, topography of site, environment,
social considerations, hazards, proximity to demand centers, infrastructure, etc
As the Contract administrator, we can advice the

client to go on with the design and build method
rather than the traditional method that involves
more time. The design and build is an alternative
for the traditional project delivery system. In this
method it allows design and construction to one
firm and the construction can begin before
completing the design. . This compares to the
traditional designbid-build method, where the
Page8
design and construction aspects of the project

are bid separately. Design-build contracting often
reduces a highway administration and inspection
costs and can reduce or eliminate change orders
and claims resulting from errors and omissions during construction. Design-build also allows
contractors increased flexibility in selecting innovative designs, materials, and construction
techniques.
There are lot of advantages in the design and build, it may result an earlier completion and the
project can be occupied. No time difference in the design time and the building erected time
and the design-build contractor can begin construction of early phases of the project. There is a
lot of cost saving for the project because the design-build contractor performing the design has
a better feel for the construction cost of various alternatives.
In the Traditional method the materials are specified and then go for bidding and get the cost
and this makes it difficult for traditional design-bid-build to reach innovative, proprietary
products where there may be only one brand-name and no equal. Further, substitution of a new
"or equal" product for a standard product often is impracticable. The design-build entity selects
the equipment and then designs the building around the selected equipment, which is a more
Page9
logical way to proceed. In the design-build entity it can sometimes obtain free design assistance
from equipment manufacturers desiring that their new technologies be used.
b- Describe the roles and principle contractual responsibilities of the

parties/ organizations involved respect of a typical contract.
Task b;
Roles and responsibilities of Contractual Organizations
Turner (1993) has identified and classified the parties involved in a project in the following
general manner:
a. the parent organization (the owner of the facility),
b. the users, who will operate the facility
c. the supporters, who will supply the resources to undertake the work
d. the stakeholders, who are affected by the project
So many trades involved in the construction business, It is not possible to construct a structure
alone, specially the modern day structures which involves clients, architects, engineers, quantity
surveyors, contractors, sub-contractors, suppliers and labours known as stakeholders in a given
project.
Projects are implemented with so many parties and the responsibilities are distributed among
each party to implement them in a coordinated manner is essential for preventing conflicts.
Have to have throw knowledge about understanding the parties and their roles in different
stage of the process.
There are Two main parties to the building contract, The Client and the Contractor, the one
party requesting goods and the other parties provide under conditions. Responsibilities and
their roles are of the main parties and the parties to the respect of the contract are described
below in general.
Page10
Client;
Responsibilities of a client/proprietors is,
The client or the organization should clearly identify the requirement and provide
information to give a full clear brief on what he/she needs
e.g.- runways, cross-taxiway, and sufficient aprons, terminals, ATC-tower, CNS-ATC and ATM
equipment, , service-courts, fuel-farm, curbside and parking facilities, Administration
buildings, housing areas and catering, Hotel and conference centre, health facilities
The funds available for the required project
Clients is the one who selects a design professional and requires there services. The
service includes professional advice, design of the project and their coordination of the
project.
Information on starting day and the completing day
Clients have the authority to coordinate, approve and decide.
Having adequate and suitable management in place is vital for construction projects as
they can be extremely complex due to the various types of contractors and tradesmen
all working together.
Roles and responsibilities of Client as stated in the FIDIC clause 2;
2.1 Right to access to site.

Page11
Land acquisition
Disposes of the product at the market place or takes occupation at the completion
2.2 Permits license or approvals
Develops design brief of the construction project

Directly or indirectly monitors progress, time, cost, quality, etc. during the design and
construction
Develops the construction idea and studies demand and the market
2.3 Employer personnel
Carries out or gets others to carryout feasibility studies, research for alternative courses
of action
Provide an adequate statement of requirements (brief)
Provide clear and precise brief
2.4 Employers financial arrangements
Arrange insurance
Ensure that adequate funds are available to meet the progress and professional services
payments
Should not cause any disruption to the progress of the works
2.5 Employers claims
Bears the repairs and maintenance cost of his/her investment

Take prompt decisions
"Contractor"; means a person, partnership or group of persons who, through a contract, an

agreement or ownership, directs the activities of one or more employers involved in work at a
work site.
Responsibilities of a Builder/contractor is,
Carrying out a full site investigation prior to submission of tender.
Engages in construction till its completed and hand over
Coordinates with the client, Para-professionals and technicians and labours if needed
and carry out the work in related activities.
In complexity projects they are main contractor and a sub-contractors are involved
Contractors role is to manage safety at the site.
To comply with all government rules and regulations safety laws, policies and procedures
while working on a site. To obtain the proper authorization and/or work permits prior to
commencing any work activity
Page12
To ensure that they understand all requirements which are applicable to their work
activity prior to commencing the required activities.
Contractor involved in the physical delivery can be categorized into sub- contractors,
suppliers and manufactures.
Submitting priced bills of quantities for examination.
Whenever engineer require details submit details of the arrangements and methods
which the contractor proposes to adopt for the execution of works.
Architect;
The architect is responsible for defining and maintaining the structure, and ensuring that it will
meet the requirements. An architect must also help the team to work together in a lively
manner, and to interface well with other parts of the organization.
Responsibilities of a an Architect is,

The client appoints the architect and its team. But today according to their particular
project the client first appoint the project manager or any other consultants
The architect role is to interpret the clients idea and translate it to drawings and erect
the design coordinating with other consultants.
The Client would give necessary information on the terminals needed, car parking
requirement, Immigration and emigration requirements, the budget,etc
Carry out the studies to determine the feasibility of the client requirement.
Prepare outline proposal and give an approximate cost of the construction.
Complete the development proposal and detail design and prepare cost estimation and
review the cost estimation after the detail design.
An architect will help all team members to contribute to the architecture; taking good
Page13
ideas from everyone and making them part of a coherent whole. The architect may also
adapt ideas originating elsewhere, but without losing the teams ownership of the
solution.
Responsible for obtaining the approval from the government bodies such as councils,
Supervising and erection of the building
The architect like any other professional is liable to the client if he/she carries out the
duties in a negligent way.
Engineers;
Engineers are assigned responsibility for coordination of the engineering aspects of construction
projects involving large permanent buildings and facilities, for both new construction and major
alterations; provide professional engineering information and advice to committees of current
or prospective occupants who recommend or determine building needs and priorities; act as
engineering liaison officers and coordinators in relationships between Architects, other
consultants, and staff members. Responsibilities include,
Engineer is appointed as the same time as the architect.

Engineer can be structural engineer, mechanical and or electrical engineer. It depends on
how complexity the project is and sometimes geo-technical engineer is appointed due to
the soil conditions.
Engineer must be concerned with the application of technology in a systems context, must be
pragmatic, and must coordinate those things that must work or fit together.
Quantity Surveyor;
Page14
Quantity surveyors are the cost managers of construction. They are initially involved with the
capital expenditure phase of a building or facility, which is the feasibility, design and
construction phases, but they can also be involved with the extension, refurbishment,
maintenance and demolition of a facility.
The construction industry is global and extends across all real estate and infrastructure markets.
Quantity surveyors work in all sectors of the construction industry worldwide. In real estate this
covers residential, commercial, industrial, leisure, agricultural and retail facilities. In
infrastructure it covers roads, railways, waterways, airports, sea ports, coastal defenses, power
generation and utilities.
They must understand all aspects of construction over the whole life of a building or facility.
They must have the ability to manage cost effectively, equating quality and value with individual
client needs.
Their work may include the following:
Preparing feasibility studies or development appraisals
Assessing capital and revenue expenditure over the whole life of a facility
Advising clients on ways of procuring the project
Advising on the setting of budgets
Monitoring design development against planned expenditure
Conducting value management and engineering exercises
Managing and analyzing risk
Managing the tendering process
Preparing contractual documentation
Controlling cost during the construction process
Managing the commercial success of a project for a contractor
Valuing construction work for interim payments, valuing change, assessing or compiling
claims for loss and expense and agreeing final accounts
Negotiating with interested parties
Giving advice on the avoidance and settlement of disputes.
Page15
c- evaluate the purpose and activities of organizations that are involved

in the construction industry
Task c;
Evaluate the Purpose and Activities of Organizations
Design professionals;
The Design professionals shall ensure that all aspects of the Project are designed in accordance
to the Owners Project Requirements and is in compliance with applicable codes and
regulations. The Architect, Engineer and his Sub-consultants shall be qualified design
professionals licensed to practice in their field.
Builders/Contractors and other allied sectors;

The role of the contractor is the physical delivery of the clients idea and give the habitable place
he desired. Sub-contractors, suppliers and manufactures are the 3 groups involved in the
physical delivery system. The main contractor takes the risk of domestic-subcontractor and
suppliers. They execute and complete the project in accordance with the contract.
Para- Professionals;
Project managers, construction managers, quantity surveyors building designers, draughtsman
are to name a few of the Para- professionals. They have the skill in their required filed and are
able to be a service for the client.
Legal and Para-legal professionals;

They are involved in the construction industry but not as much as the Para-professional. They
deal with the issues such as disputes resolution, litigation and expert advice.
Government Bodies;
The government bodies have an effect on the construction industry. Bodies are State level and
the local government level. The state government is responsible for all aspects of development
urban development Authority (UDA) while local government, Municipal council is responsible
for planning approvals and building approvals.
Others;
Who has an Interest or lobby groups that has an impact on the development. They are
environmentalists, Residents groups, and heritage and conservation societies.
Page16
d- analyze the contractual differences between nominated and named

sub contractors, other subcontractors
Task d;
Differentiate the Nominated or Named sub contractors and Domestic
subcontractors
Construction of projects involves raw materials, machinery, finance and human resources. In
complexity project the main contractor cannot supply all the materials in case like this they give
some trades to sub-contract, the main aim is to transfer the risk and also reduce capital cost
needed, and some clients nominate some trades to be given to a sub-contracting organization.
It is done perfectly and wisely to achieve a quality product and less completion period and
minimize the cost. The main contractor normally sublet the works to the sub-contractors to
transform the risks. Sometimes there are problems between the Main contractors and sub-
contractors.
The definition of a subcontractor is a person or a company hired by a general contractor to

perform part of the work of a construction job. Generally the subcontractor will either relieve
the main contractor of part of the building work, or will be able to perform work at lower
expense or at a greater skill level than the general contractor could. Subcontractors might work
on task-based contracts with no fixed date, long-term arrangements which can be discontinued
at any time, or fixed-term contracts.
Sub-contracting can be given any of these trades;
Earth workers A/c Units

Plumbing Brick layers
Electrical Roof carpenters
Concretors Painters
Landscaping Human labours

Interior Designing Site accommodations
Page17
Sub-contracting has also resulted from the need for specialist skills which cannot be
accommodate with Main contractors day today the workforce. MC has all the responsibility of
the subcontract and sub contractors should respect the MC.
In construction industry there are two main sub-contracts;
Nominated subcontractor
To pay direct
Client Main Contractor
Domestic subcontractor
1. Nominated sub-contract or Named sub-contract (NSC)
Nominated subcontractors are often closely aligned with the consultants assisting in
design and overcoming co-ordination and technical problems arriving at an end product
which is aesthetically and functionally what a consultant requires.
The client or his representatives will inform the main tenderers, what works to be sub-
contract and description of the prime cost sum. Main contract tenderers, therefore, have
little information concerning the nominated subcontract works and main contract
tenderers are being required to take on liabilities such as design, fitness for purpose and
even the risks of performance by the unknown, subcontractor. Once a main contractor
has accepted the architect's nomination proposal he becomes responsible for that
subcontractor, just as he would his own domestic subcontractors.
Benefits;
i. The client is in control over the choice of, and performance required from NSC
ii. Lowest bid & highest quality design input
iii. Proven track record for good works
iv. Long term business relationships
v. Potential for reduced procurement time
vi. Duration of the construction is less
vii. Double over heads are not paid
viii. NSC shall provide the MC a guarantee or performance bond for the due
performance.
Risks;
i. The client carries the risk of the NSC
ii. Failure of NSC to perform have serious consequences on both main
contractor(MC) and employer
iii. Mc approves the NSC and is prepared to collaborate with him
iv. Mc need not employ the NSC if he has reasonable objection or who refuse to
entre into a sub contact
- Back to back with the main contract
- Which indemnifies MC in respect of NSC breaches and against the negligence
of his workmen & misuse of any temporary works
v. These rights of veto are crucial & contractors usually must not feel hesitant to
obey about their rights
vi. Sometimes itll delay the time where the time is critical, need extension time and
MC have to pay the Liquidate Damages(LD) to the client/s
vii. Defects in works and material by the NSC
Sometimes the main contractor can refuse nomination but he has to show the client
a reasonable basis such as importance in timing of nomination, the effect of post
contract nomination may have upon the MC time, Preparedness of NSC to
completion of its works on a date that melds with the programe. If such case
happens the engineer should always takes precautions and places an alternative NSC
that MC would not object.
2. Domestic Sub-contract (DSC)
The main contractor appoints the sub-contractor and makes agreement. It is known as
Domestic sub-contractors. The payment for the domestic subcontractor is a under the
responsibility of the main contractor. They may carry out the construction work or
specified trades. The domestic subcontractor has no connection with the client.
Benefits;
i. Limited rights of objections by the MC with regards to the DSC than with regards
to a NSC
ii. Payment and provision and objections
iii. No Risk to the employer/client
iv. It is appointed by the MC, and no disputes
v. Completion of the project in due date
Risks;
i. Delays in converting lump sums into a unit rate, Pricing format differs in the BOQ
ii. Difficulties with disturbing lump sums throughout a number items, in the form of
unit rates,
iii. Double overhead to the client
iv. Inappropriate distribution of cost may lead to further problems during contract
when agreeing variation accounts
v. Risk is with MC
vi. The estimator may have to set the cost for trades that are going to sub contract
and the quotation is not received within date. This may prove difficulty and
would not be able to provide a detail estimate.
e- evaluate the forms of contracts in respect of the requirements for suppliers

Contractual Procedures 3

Încărcat de

Informații document

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

Contractual Procedures 3

Încărcat de

Drepturi de autor:

Formate disponibile

Contractual Procedures Assignment 3

As the Contract administrator, we can advice the

design and construction aspects of the project

b- Describe the roles and principle contractual responsibilities of the

Roles and responsibilities of Client as stated in the FIDIC clause 2;

2.1 Right to access to site.

Develops design brief of the construction project

2.3 Employer personnel

Bears the repairs and maintenance cost of his/her investment

"Contractor"; means a person, partnership or group of persons who, through a contract, an

Responsibilities of a an Architect is,

Engineer is appointed as the same time as the architect.

c- evaluate the purpose and activities of organizations that are involved

Builders/Contractors and other allied sectors;

Legal and Para-legal professionals;

d- analyze the contractual differences between nominated and named

The definition of a subcontractor is a person or a company hired by a general contractor to

Sub-contracting can be given any of these trades;

Earth workers A/c Units

Landscaping Human labours

In construction industry there are two main sub-contracts;

Client Main Contractor

1. Nominated sub-contract or Named sub-contract (NSC)

2. Domestic Sub-contract (DSC)

e- evaluate the forms of contracts in respect of the requirements for suppliers

S-ar putea să vă placă și