Post on 23-Dec-2015
PROJECT CONTROL DIVISION
PRESENTATION
PROJECT MANAGEMENT
Prepared / Presented by:
PROJECT CONTROL DIVISION – Karthi
PROJECT CONTROL DIVISION
PROJECT MANAGEMENT
DISCIPLINES of PROJECT MANAGEMENT
CONTRACT MANAGEMENT
CONSTRUCTION MANAGEMENT
RISK MANAGEMENT
FINANCE MANAGEMENT
HUMAN RESOURCES MANAGEMENT
SAFETY MANAGEMENT
LEGAL MANAGEMENT
PROJECT CONTROL DIVISION
CONTRACT MANAGEMENT
PRESENTATION
CONTRACT MANAGEMENT
PROJECT CONTROL DIVISION
Content of Presentation
Part Name
I. Introduction of Contract Management
II. FIDIC based Contracts
III. Contract Administration
IV. Claims and Counter Claims
TAISEI CORPORATIONCONTRACT MANAGEMENT
CONTENT OF PRESENTATION
Conclusion of Presentation
PROJECT CONTROL DIVISION
Part I: Introduction of Contract Management
Chapter Name
1. Merit of Contract Management
2. Contract Management Participants
3. General Types of Contracts
TAISEI CORPORATIONCONTRACT MANAGEMENT
Part I: INTRODUCTION
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PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart I: INTRODUCTIONMERIT OF CONTRACT MANAGEMENT
A, Contract Management is PROCESS of managing: Contracts Deadlines
Deliveries Customer satisfaction
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart I: INTRODUCTIONMERIT OF CONTRACT MANAGEMENT
based on above CONTRACT DOCUMENTS are PREPARED
B, Phases of the Contract Management from time point of view:
Pre-award Contract Management involving
preparatory activities with adequate investigations to cover all aspect:
1. that Influence design 3. Study possible technological alternatives
2. to Minimize uncertainties thatmay arise at the time of execution
4. Preparation of detail designs, construction drawings and estimates
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart I: INTRODUCTIONMERIT OF CONTRACT MANAGEMENT
B, Phases of the Contract Management from time point of view:
Post-award Contract Management
Contractor performs during project execution => Main Topic of Presentation
to fulfill Contractual obligations to Customer, the Contractor need:
To be equipped with latest technology Proper mobilization
To have sufficient skilled personnel Efficient schedule control
Expect unforeseeable events and prepare countermeasures
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart I: INTRODUCTIONMERIT OF CONTRACT MANAGEMENT
C, Contract Management influences Company’s: Budget Customer Service
Operation Public Image
D, Therefore through proper Contract Management, Company can have the following benefits:
increase in production and reduced inventory
improvement in product quality and customer satisfaction
reduction in purchasing costs, scheduling conflicts and manufacturing waste
transformation of fixed contract costs into cash that goes directly to the bottom line
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PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart I: INTRODUCTIONCONTRACT MANAGEMENT PARTICIPANTS
Back to Content of Part I
CONTRACT MANAGEMENT Organization Chart
Project Manager
Project Control Manager
Contract Engineers
Quantity Surveyor
Schedule Controller
Document Controller
Administration Manager Construction Manager
Accountant Site Engineers
Geologists
Passive Members Active Members Passive Members
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart I: INTRODUCTIONGENERAL TYPES OF CONTRACTS
General Types of CONTRACTS
International Contracts Domestic Contracts
Contract parties in General: Employer Contractor Employer Designer/Consultant Contractor Contractor
(Joint Venture) Contractor Subcontractor Contractor Designer/Consultant Contractor Supplier
Types of Contract in General: Lump Sum Contract Item Rate Contract / Re- measurement Contract Cost plus percentage contracts Cost plus fixed fee contracts Maximum Price Contracts Turnkey Contracts
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PROJECT CONTROL DIVISION
Part II: FIDIC based Contracts
Chapter Name
1. Background & History
2. FIDIC Forms of Contracts and its Concepts
3. FIDIC First Edition 1999 Red Book
TAISEI CORPORATIONCONTRACT MANAGEMENT
Part II: FIDIC based Contracts
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PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSBackground & History
FIDIC Background & History:
FIDIC – acronym for “Federation Internationale des Ingenieurs-Conseils” (International federation of Consulting Engineers).
founded in Ghent, Belgium in 1913 by the national associations of consulting engineers of Belgium, France and Switzerland
FIDIC has its Secretariat now in Lausanne, Switzerland
one of the first 5 committees established in 1913 was “Contract Documents Committee” having the following terms of reference:
a, To monitor Contract documents of interest to Consulting Engineers regarding:
Construction of objects or works Maintenance of installation in operation
Erection and installation of works Supply of materials
b, To inform contractors, suppliers and officials concerning contract documents recommended by FIDIC
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PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC Forms of Contracts and its Concepts
FIDIC Forms of Contracts and its Concepts:
A, Conditions of Contract for Works of Civil Engineering Construction
For Building And Engineering Works
Designed By The Employer
(Red Book)
Edition:
1. First Edition in 1957, presently fourth edition from 1987 reprinted with amendments in 1988 and 1992
Basic Feature: Design is provided by the Employer
Type of Contract: Item Rate Contract / Re-measurement Contract
Note: Fourth Edition reprinted with amendments from the year 1992 was used in our Sitina Tunel project in Slovakia
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC Forms of Contracts and its Concepts
FIDIC Forms of Contracts and its Concepts:
B, Conditions of Contract for Electrical and Mechanical Works including erection on site (Yellow Book)
Edition: First Edition in 1963, presently third edition from 1987
Basic Feature: Design is Contractor’s responsibility
Type of Contract: Item Rate Contract / Re-measurement Contract
Note: Third edition was used in our Sitina Tunel project in Slovakia
PROJECT CONTROL DIVISION – MIDDLE EAST BRANCH
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC Forms of Contracts and its Concepts
FIDIC Forms of Contracts and its Concepts:
C, Conditions of Contract for Design-Build and Turnkey (Orange Book)
Edition: First Edition in 1995 Basic Feature: Turnkey type of Contract
=> “Engineering - Procurement – Construction” is Contractor’s responsibility
Type of Contract: Lump Sum Contract
Note: in 1999 replaced by new FIDIC concept => Silver book (explained later)
Common feature of the above mentioned Forms of Contracts(i.e. RED, YELLOW and ORANGE book) is:
Contract parties: Employer Main Contractor
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC Forms of Contracts and its Concepts
FIDIC Forms of Contracts and its Concepts:
D, Conditions of Sub-contract for Works of Civil Engineering construction
Edition: First Edition in 1994 Basic Feature: - coming from the RED Book concept, therefore it is most suitable for Civil Engineering Subcontract Works- after adjustment, it is possible to use, even if the Main Contractor follows YELLOW book - the Main Contractor’s responsibilities covers with the Subcontractor’s responsibilities within his scope of Works
Type of Contract: depends upon the circumstances
Contract parties: Contractor Subcontractor
Note: First Edition was used in our Sitina Tunel project in Slovakia
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC Forms of Contracts and its Concepts
FIDIC Forms of Contracts and its Concepts:
E, Client/Consultant – model services agreement (White Book)
Edition: Third Edition from 1998
Basic Feature: General use for the purpose of pre-investment and feasibility studies, design and administration of contract and project management
Type of Contract: Lump Sum Contract (Schedule of Payments) Contract parties: − Employer Designer/Consultant− Contractor Designer/Consultant
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC Forms of Contracts and its Concepts
FIDIC Forms of Contracts and its Concepts:
F, Sub-Consultancy Agreement Edition: First Edition in 1992 Basic Feature: - This Form of Agreement relates to the “Client/Consultant – model services agreement (White book)”- It is Sub-contract Form for the Client/Consultant – model services agreement
Type of Contract: Lump Sum Contract (depends on the Client/Consultant Form of Contract)
Contract parties: Main Designer/Consultant Sub-Designer/Consultant
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC Forms of Contracts and its Concepts
FIDIC Forms of Contracts and its Concepts:
G, Joint Venture (Consortium) Agreement
Edition: First Edition in 1992 Basic Feature: - can be used irrespective of Form of Contract
Type of Contract:
Contract parties: between Main Contractors, if its Join Venture
Note: Some conditions are used in our JV Agreement
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC Forms of Contracts and its Concepts
FIDIC Forms of Contracts and its Concepts:
H, Tendering Procedure
Edition: First Edition in 1982, Second Edition 1994 Basic Feature: - useful for the Employer/Engineer/Consultant within the process of Tender preparation- possible to use by the Main Contractor
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC Forms of Contracts and its Concepts
FIDIC Forms of Contracts and its Concepts:
J, FIDIC 1999 – Four NEW Forms of Contracts
Conditions of Contract for Construction
For Building and Engineering Works
Designed By The Employer
(Red Book)
Edition: New concept following the Fourth Edition of Red book, 1999
Basic Feature: Design by Employer
Type of Contract: Item Rate Contract / Re-measurement Contract Differences compared to Fourth Edition of RED Book: - position of the Engineer – Fourth Edition – independent 1999 Edition – fair determination - different structure – Fourth Edition - has 72 Clauses 1999 edition has 20 Clauses
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC Forms of Contracts and its Concepts
FIDIC Forms of Contracts and its Concepts:
J, FIDIC 1999 – Four NEW Forms of Contracts
Conditions of Contract for Plant and Design-Build
for Electrical and Mechanical Plant, and for Building and Engineering Works
(Yellow Book)
Edition: New concept following the Third Edition of Yellow book
Basic Feature: Design by Contractor
Type of Contract: Lump Sum Contract Differences compared to Third edition of YELLOW Book: -position of the Engineer -Fourth Edition – independent 1999 Edition – fair determination - different structure - Fourth Edition - has 72 Clauses 1999 Edition has 20 Clauses
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC Forms of Contracts and its Concepts
FIDIC Forms of Contracts and its Concepts:
J, FIDIC 1999 – Four NEW Forms of Contracts
Conditions of Contract for EPC/Turnkey Projects
(Silver Book)
Edition: First Edition of Silver book
Basic Feature: Engineering, Procure, Construct is Contractor’s responsibilities
Type of Contract: Turnkey Contracts (similar to Lump Sum Contract)
Note: Successor of Orange book
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC Forms of Contracts and its Concepts
FIDIC Forms of Contracts and its Concepts:
J, FIDIC 1999 – Four NEW Forms of Contracts
First Edition of the New Green Book FIDIC 1999
Edition: First Edition
Basic Feature: Short Form of Contract Agreement
Content:- General Conditions- Rules for Adjudication - Notes for Guidance
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC Forms of Contracts and its Concepts
FIDIC Forms of Contracts and its Concepts:
Common feature of the mentioned Forms of Contracts(i.e. RED, YELLOW, ORANGE, Subcontract Conditions and WHITE book) is:
Each Form of Contract contain Two Main Parts:
Part I – Standard Conditions Part II – Conditions of particular application / Special conditions (in Yellow book)
Adjusting the Standard conditions considering the local conditions
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC Forms of Contracts and its Concepts
Aspects to consider when selecting suitable FIDIC Form of Contract:
1) The allocation of the essential FUNCTIONS found in a construction or engineering project and in particular the design function
2) The allocation of the RISKS inherent in the projects
3) The allocation of the MANAGEMENT role
4) The method and timing of REMUNERATION for the Contractor
Whereas there are so many FIDIC Forms of Contract, developed for different conditions, the Promoter (Employer or Owner) of the project should consider following aspects while selecting appropriate form:
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC Forms of Contracts and its Concepts
1) Allocation of FUNCTIONS:
The following functions are allocated to certain parties:
Promoter/Employer
Financier• Self financing• A simple lender• A lender in Build–Transfer• A lender in Build–Own- Transfer (BOT)• A lender in Build–Own-operate-transfer (BOOT)• A lender in Build–Own-operate (BOO)• A lender in Build-Rent-Transfer (BRT)• BLT in leasing rather than renting
Designer• Sketch design• Preliminary design• Final design
Engineer
Adjudicator
Contractor
Subcontractor, supplier and manufacturer
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC Forms of Contracts and its Concepts
2) Allocation of RISK:
Allocation of Risk to party:
- Which party can BEST FORESEE the risk?
- Which party can BEST CONTROL the risk?
- Which party can BEST BEAR the risk?
- Which party MOST BENEFIT or SUFFER if the risk eventuates?
Details pertaining to RISK are in Presentation “RISK MANAGEMENT”.
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC Forms of Contracts and its Concepts
2) Allocation of RISK:
FIDIC RISK DIAGRAM
RED BOOK – YELLOW BOOK – SILVER BOOK
•Increased Employer’ Risk
•Increased Design Control
•Greater Design Certainty
•Increased Contractor’s Risk
•Increased Project Price
•Greater Time & Cost Certainty
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC Forms of Contracts and its Concepts
3) Allocation of MANAGEMENT ROLE
4) Allocation METHOD and TIMING of REMUNERATION:
(a)cost-reimbursable contracts
(b)re-measurement contracts based on unit rates and prices
(c) lump sum contracts
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Allocation of Management Role & Method and Timing of Remuneration is closely linked with the RISK sharing.
From the point of RISK sharing. i.e. RISK accepted by the Promoter/Employer, there are the following categories of contracts:
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC First Edition 1999 Red Book
FIDIC First Edition 1999 Red Book:
Documents forming the Contract:Document Purpose Priority
Bid Contractor Tender offer/price proposal
3Pre Tender Correspondences including addendums
Clarification within the Tender period
Letter of Acceptance Employer send to successful bidder 2
Contract Agreement Agreement between Employer / Contractor
1
General Conditions of Contract Standard FIDIC Form of Red book 5
Special Conditions of Contract Adjustments to Local conditions 4
FIDIC First Edition 1999 Red Book:
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC First Edition 1999 Red Book
FIDIC First Edition 1999 Red Book:
Documents forming the Contract:Document Purpose Priority
General Technical Specifications Standard specification for particular type of project 6
Special Technical Specifications Adjustments to Local conditions
Drawings Provided by the Employer 7
BOQ Items, Description of Items, Estimated Quantity priced by the Contractor
8Any other documents forming part of the contract
Any other document provided by the Employer along with the Tender Document such as Geological reports, Environmental report, etc.
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC First Edition 1999 Red Book
FIDIC First Edition 1999 Red Book:
Contractual obligations
Contractor’s obligation Engineer's obligation Employer's obligations
Note: this second category extends in legal terms beyond the Contractor’s obligations under the Contract with the employer and in time beyond the completion of that contract.
Two main categories
1, Coming from AGREEMENT between parties
(as specified in theCONTRACT CONDITION)
2, The obligations which apply under APPLICABLE
LAW of Contract
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC First Edition 1999 Red Book
FIDIC First Edition 1999 Red Book:
Contractual obligations
Contractor’s obligation Engineer's obligation Employer's obligations
MAIN AREAS:
1. CONSTRUCTION & COMPLETION: with DUE DILIGENCE / WITHIN TIME
2. MATERIAL, PLANT & WORKMANSHIP according to CONTRACT/ INSTRUCTION
3. Provision of SECURITIES (Bank guarantees/Bonds), INDEMNITIES and INSURANCES
4. Provision of INFORMATION required for EXECUTION / COMPLETION ALERTING the Employer => IMPORTANT EVENTS / COST
INCREASE / TIME EXTENTION 5. Performance of ADMNINISTRATIVE & other FUNCTIONS
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC First Edition 1999 Red Book
FIDIC First Edition 1999 Red Book:
Contractual obligations
Contractor’s obligation Engineer's obligation Employer's obligations
In STAGES:
Tendering Stage LETTER OF ACCEPTANCE
SUBSTANCIAL COMPLETION of
WORKS
AFTER SUBSTANCIAL
COMPLETION of WORKS
1st 2nd 3rd
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC First Edition 1999 Red Book
Contractor’s Contractual obligations
Clause Description of event Time schedule
4.10
Inspect the Site
Inspect any information
Satisfy himself as to form and nature of the Site
Interpret the data provided by the Employer
Base tender on the data
4.11 Satisfy himself as to correctness and sufficiency of the tender and of the rates and prices
13.1 Consider the provision in Part II regarding increase or decrease of cost
Tender Submission, Analyses and Decision on Award
18.1 Agree general terms of insurance
Ten
derin
g pe
riod
Price Adjustment
Insurance
1st - Tendering Stage
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC First Edition 1999 Red Book
Contractor’s Other obligations
Arising from Technical specifications and/or other documents:
We have to pay attention to other documents as well.
Contract Negotiations:
Always there will be a meeting between the Employer and the Contractor prior to sign the agreement.
The Contractor must carefully put few conditions such as possession of site, permission from third parties etc.
1st- Tendering Stage
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC First Edition 1999 Red Book
Contractor’s Contractual obligations
Clause Description of event Time schedule
Issue of Letter of Acceptance
Initiating Mobilization formalities
Finalizing commitments with Subcontractors and Suppliers
4.2 Provide security for proper Performance
Up to 28 days14.1(d) Provide breakdown for each of Lump Sum items
(The Contract Price)
8.3 Submit Construction schedule (Programme)
14.4 Schedule of Payment - Submit Cash flow
Issue of Notice to Commence
18.1 Provide evidence prior to the start of work at the Site that required Insurance have been effected
General Requirement for Insurances
2nd - LETTER OF ACCEPTANCE SUBSTANCIAL COMPLETION of WORKS
Performance Security
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC First Edition 1999 Red Book
Contractor’s Contractual obligations
Clause Description of event Time schedule
Commencement Date
8.1 Commence the works as soon as reasonably possible (Commencement of Works)
18.1 General Requirement for Insurances - Provide Insurance policy
4.1 Carry out Design (to the extend of Contract) Execute and complete the Works
Contractor’s General Obligations
9.1 Test on Completion – Contractor’s Obligations
10.2 Notice of Substantial Completion - Written
undertaking to Finish Outstanding Works within Defect Liability Period
14 days before Taking Over Cert. issuance
Issue of Taking Over Certificate
2nd - LETTER OF ACCEPTANCE SUBSTANCIAL COMPLETION of WORKS
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC First Edition 1999 Red Book
Contractor’s Contractual obligations
Clause Description of event Time schedule
Issue of Taking Over Certificate = Substantial Completion of Works
4.23 Clear away site and leave clean
14.10 Submit Statement at completion Within 84 days
End of Defect Liability Period
11.1 Completion of Outstanding Work and Remedying Defects
On or before the expiry of the Defects Notification Period
Defect Liability Certificate
14.11 Submit Draft Final Statement /
Submit Final Statement
Within 56 days
14.12 Give Written Discharge
Final Certificate
AFTER SUBSTANCIAL COMPLETION of WORKS
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC First Edition 1999 Red Book
FIDIC 4th Edition 1987 Red Book:
Contractual obligations
Contractor’s obligation Engineer's obligation Employer's obligations
Two main categories
1, The Engineer as DESIGNER2, Engineer’s role in
PRE-CONTRACT and POST-CONTRACT
PROACTIVE DUTIES REACTIVE DUTIES PASSIVE DUTIES
ENGINEER’S DUTIES AND AUTHORITIES:
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC First Edition 1999 Red Book
FIDIC 4th Edition 1987 Red Book:
Contractual obligations
Contractor’s obligation Engineer's obligation Employer's obligations
• In principle, most of the Employer’s obligations are very closely associated with the Engineer’s obligations.• All the payment as certified by the engineer shall be made by the Employer.
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC First Edition 1999 Red Book
CLAUSES referring to COMPLETION:
Clause CLAUSE Title
1.1.3.2 Commencement date
3.3 Supplementary Drawing and Instruction
4.1 Contractor’s General Responsibilities
4.11 Sufficiency of the Accepted Contract Amount
3.3 Instructions of The Engineer
8.3 Programme to be submitted
8.3 Revised Programme
3.1(c) Contractor not relieved of duties and responsibilities
6.8 Contractor’s Superintendence
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC First Edition 1999 Red Book
CLAUSES referring to COMPLETION :
Clause CLAUSE Title
4.8, 4.18, 4.22 & 6.7
Safety Procedures, Protection of Environment, Security of the Site and Health and Safety
18.2 Insurance of works and Contractor’s Equipment
17.1 Indemnities
18.3 Insurance against Injury to Persons and Damage to property
18.3(d) Exceptions
1.13 Compliance with Laws
6.4 Labour Laws
4.14 Avoidance of Interference
8.2 Time for completion
8.4 Extension of Time for Completion
8.7 Delay Damages
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC First Edition 1999 Red Book
CLAUSES referring to COMPLETION:
Clause CLAUSE Title
10.2 Reduction of Liquidated damages
10.1& 10.2 Taking-Over of the Works and Sections / Taking Over of Parts of the Works
11.1 Completion of Outstanding Work and Remedying Defects
12.4 Omissions
14.9 Payment of Retention Money
14.10 Statement at Completion
11.9 Performance Certificate
19 Damage to Works by Special Risks / Force Majeure
19 Outbreak of war / Force Majeure
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC First Edition 1999 Red Book
CLAUSES leading to EXTENTION OF TIME:
Clause CLAUSE Title
1.9 Delayed Drawings or Instructions
4.12 Unforeseeable Physical Conditions
17.4 Consequences of Employer’s Risks
4.24 Fossils
7.4 Testing - Engineer’s determination where tests are not provided for
8.9 Consequences of Suspension
2.1 Right of Access to the Site
8.4 Extension of Time for Completion
8.4 Extension of Time for Completion - Determination
19 Force Majeure - Special Risks
16.1 Contractor’s Entitlement to Suspend Work
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC First Edition 1999 Red Book
CLAUSES referring to SECURITIES, INDEMNITIES & INSURANCE:
Clause CLAUSE Title
4.2 Performance security
17 Risk and Responsibility
18 Insurance
1.13 Compliance with Laws
17.5 Intellectual and Industrial Property Rights
4.14 Avoidance of Interference
4.15 Access Route
4.16 Transport of Goods
4.17 Contractor’s Equipment
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC First Edition 1999 Red Book
CONTRACTOR’S ADMINISTRATION FUNCTIONS:
Clause CLAUSE Title
1.1 Definitions
1.7 Assignment
4.4 Subcontractors
1.8 Care and Supply of Documents
1.6 Contract Agreement
4.6 Co-operation
6 Staff and Labour
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC First Edition 1999 Red Book
CONTRACTOR’S ADMINISTRATION FUNCTIONS:
Clause CLAUSE Name
4.15 Access Route (to the site and maintenance of)
14.3 Application for Interim Payment Certificates
15.2 Assignment of Benefit of Agreement to Employer incase of Termination
20.5 Amicable Settlement of disputes to be attempted
7.3 Inspections – Give full opportunity to the Employer’s Personnel / Engineer to inspect by giving notice when work is ready
8.11 Prolonged Suspension – Entitled for payment if suspension exceeds 84 days
4.15 Access Route – Satisfy as to the suitability of the route, be responsible to maintain and put up signs
4.16 Transport of Goods – Give 21 days notice to the Engineer
4.17 Contractor’s Equipment – Will take the consent of the Engineer before removal
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC First Edition 1999 Red Book
PAYMENT related CLAUSES:
Clause CLAUSE Title
1.9 Delayed Drawings or Instructions
4.12 Unforeseeable Physical Conditions
4.24 Fossils
7.4 Testing – Engineer’s requirement for Additional Test
7.3 Inspections – Delay by the Engineer
8.9 & 8.10 Consequence of Suspension & Payment for Plant and Materials in the Event of Suspension
42.2 Right of Access to the site
11.8 Contractor to search
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC First Edition 1999 Red Book
PAYMENT related CLAUSES:
Clause CLAUSE Title
13 Valuations and Adjustments
14.3(f) & 20.1
Payment of Claims
5.3 Payments to Nominated Subcontractors
14 Contract Price and Payments
15.4 Payment after Termination
17.4 Consequences of Employer’s Risks (War, rebellion, roit, etc.)
15 & 19.6 Payment if Contract is Terminated
19.7 Release from Performance under the Law
16.4 Payment on Termination
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC First Edition 1999 Red Book
PAYMENT related CLAUSES:
Clause CLAUSE Title
16.1 Contractor’s Entitlement to Suspend the Work
13.1 Right to Vary
13.7 Adjustment for changes in Legislation
13.4, 13.7 &14.15
Currency and Rates of Exchange
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC First Edition 1999 Red Book
INFORMATION and ALERTS required to be PROVIDED BY the CONTRACTOR during CONSTRUCTION PERIOD
1, DESIGN INFORMATION
2, PROGRAMME
3, CASH FLOW ESTIMATE
4, GEOLOGICAL AND ARCHEOLOGICAL FINDS
5, DETAILS OF LABOUR AND EQUIPMENT
6, PARTICULARS OF EXTENSION OF TIME
7, EMERGENCY WORK
8, VARIED WORKS
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart II: FIDIC BASED CONTRACTSFIDIC First Edition 1999 Red Book
INFORMATION and ALERTS required to be PROVIDED BY the CONTRACTOR during CONSTRUCTION PERIOD
Back to Content of Part II
9, CONTEMPORAY RECORDS
10, MEASUREMENT
11, LUMP SUM ITEMS
12, PROVISIONAL SUMS
13, PAYMENT TO NOMINATED SUBCONTRACTOR
14, MONTHLY STATEMENT
PROJECT CONTROL DIVISION
Part III: Contract Administration
Chapter Name
1. General
2. Project Records
3. Project Control Division and its Members
TAISEI CORPORATIONCONTRACT MANAGEMENT
Part III: CONTRACT ADMINISTRATION
Back to Content of Presentation
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart III: CONTRACT ADMINISTRATIONGENERAL
FACTORS to be CONTROLED within CONTRACT ADMINISTRATION:
Performance Cost Time
To CONTROL above mentioned, FOLLOWING IS NECESSARY:
Well understanding of obligations to be fulfilled by the parties
Cooperation between each party
Deployment of right personnel for right job
Timely mobilization
Prompt decision making
Settlement of Payment
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart III: CONTRACT ADMINISTRATIONGENERAL
To be presented in
Part IV – “Claims and Counterclaims”
Contract Administration
focuses on:
Claim CheckList
VariationProcedure
ClaimAdministration
Preparation of List of Submittals
by Contractor
Project Records
Back to Content of Part III
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart III: CONTRACT ADMINISTRATIONPROJECT RECORDS
PROJECT RECORDS
Documentation of FACTS & FIGURES = Key Element
in preparation of CLAIMS
In prevention / defends against CLAIMS
ORAL Interpretation DO NOT SUBSTITUDE Written RECORDS
Written RECORDS IDENTIFY RESPONSIBILITIES
provide SUBSTANTIATION for DELAY & ADDITIONAL COST
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart III: CONTRACT ADMINISTRATIONPROJECT RECORDS
PROJECT RECORDS
DOCUMENTATION RECORD is BURDENSOME TASK
FOLLOWING NEED TO BE SPECIFIED / ARRANGED:
DATA to be COLLECTED
COLLECTION INTERVALS
PERSON in charge of RECORDING / CHECKING
SYSTEM OF FORMS FILLING-UP / ITS STORAGE
PERSON in charge DO NOT SEE immediate BENEFIT
PERSON in charge BECOMES NEGLIGENT
DOCUMENT FLOWCHART is HELPFULL
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart III: CONTRACT ADMINISTRATIONPROJECT RECORDS
CATEGORIES of PROJECT RECORDS / FILES:
LEGAL FILES:
Contract documents(Condition of Contract) Specifications,(e.g. GTS,STS etc.) Change orders Related materials
CORRESPONDENCE
Chronological files for all INTERNAL and EXTERNAL CORRESPONDENCE
SUBJECT-MATTER FILES:
Subject-matter files for each subcontract, construction phase, or other readily identifiable unit of the project
E.G. - Exchange Loss - Temp. Stock Yard - Acceleration - Time Extension - Monthly Progress Report
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart III: CONTRACT ADMINISTRATIONPROJECT RECORDS
PROJECT RECORDS / FILES should specifically INCLUDE at least following:
1) Record for Works Progress and Schedule2) Daily Report3) Cost Record for Labour, Equipment, Materials4) Project Photographs5) Project Diary6) Tests Report7) Variation Order 8) Drawing Change Log9) Incoming and Outgoing Correspondence Log
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart III: CONTRACT ADMINISTRATIONPROJECT RECORDS
FORMS used within PROJECT RECORD ADMINISTRATION:
1) WORK DISRUPTION REPORT (WDR)
Purpose: Reporting DISRUPTION WORK occurred, in the course of daily construction activities
Flowchart:
Site Engineer / Forman prepare
WDR
Chief Engineer / Construction
manager review WDR
Contract Engineer / Proj. Contr. Manager record WDR to WD Log incl.
details (QS,Time Impact)
Engineer receive Notice on Work Disruption
Note: If WORK DISRUPTION is due to Employer/Engineer Risk => Contractor raise CLAIM.
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart III: CONTRACT ADMINISTRATIONPROJECT RECORDS
FORMS used within PROJECT RECORD ADMINISTRATION:
2) AVOID VERBAL INSTRUCTION (AVI)
Purpose: Reporting of VERBAL INSTRUCTIONS (VI) received from Engineer / Employer
Flowchart:
Site Engineer record VI to
DAILY REPORT
Chief Engineer / Construction
Manager prepare AVI
Contract Engineer / Engineer / Proj. Contr. Manager review AVI
alt. put record to VARIATION LOG
AVI from Notice to Employer/Engineer
Note:
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart III: CONTRACT ADMINISTRATIONPROJECT RECORDS
FORMS used within PROJECT RECORD ADMINISTRATION:
3) REQUEST FOR INFORMATION (RFI)
Purpose: Request for Additional INFORMATION / CLARIFICATION / INSTRUCTION to be provided by Employer/Engineer
Flowchart:
Site Engineer / Chief Engineer request INFO/
CLARIFICATION
Contract Engineer prepare RFI Form & record it to RFI
Log
Notice to Employer / Engineer
Note: RFI Log is essential tracking system monitoring status of all RFI (IDENTIFICATION OF OUTSTANDING)
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart III: CONTRACT ADMINISTRATIONPROJECT RECORDS
FORMS used within PROJECT RECORD ADMINISTRATION:
4) DAILY REPORT (DR)
Purpose: Recording of essential daily events of given day & shift
Flowchart:Individual Site
Engineers prepare DAILY
REPORT
Chief Engineer review DR and select IMPORTANT
INFORMATION
Construction Manager review
IMPORTANT INFO
Note: IMPORTANT INFORMATION:
Contract Engineer check CONTENT of IMPORTANT
INFO; TAKE STEPS according to CONTRACT
Notice to Employer/Engineer
WEATHERTEMPERATUREWORK EXECUTED
WORK COMMENCEMENTDISRUPTIONACCIDENT
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart III: CONTRACT ADMINISTRATIONPROJECT RECORDS
FORMS used within PROJECT RECORD ADMINISTRATION:
5) DRAWING LOG (DL)
Purpose: Control system
Tracking/Comparison of SCHEDULED and ACTUAL DATES of:
• DRAWING RECEIPT• DRAWING ISSUE
Identification of MISSED SUBMITTAL DATES => early ALERT for DELAY
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart III: CONTRACT ADMINISTRATIONPROJECT RECORDS
FORMS used within PROJECT RECORD ADMINISTRATION:
6a) MANPOWER DAILY REPORT (MDR)
Purpose: Recording of total MANPOWER for PROJECT COST CONTROL
Flowchart:
Forman/Site Engineer prepare
MDR
Chief Engineer check MDR
Construction Manager approve
Cost Control Engineer/Quantity Engineer for Data
Processing
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart III: CONTRACT ADMINISTRATIONPROJECT RECORDS
FORMS used within PROJECT RECORD ADMINISTRATION:
6b) TIME CARD (TC)
Purpose: Recording of WORKING HOURS for calculation of PAYMENTS & WAGES
Flowchart:
Forman record WORKING
HOURS on TC
Site Engineer review TC
Section Manager approve TC
Personal Manager prepare WAGES
Note: MDR & TC both relate to LABOUR recording Administration
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart III: CONTRACT ADMINISTRATIONPROJECT RECORDS
FORMS used within PROJECT RECORD ADMINISTRATION:
7) EQUIPMENT DAILY REPORT (EDR)
Purpose: Recording of DAILY OPERATING HOURS per EQUIPMENT
Flowchart:
OPERATOR / DRIVER CONTROLER records
Operating hours
EQUIPMENT CONTROL
ENGINEER review
PROJECT CONTROL MANAGER
approve
Cost Control Engineer for Data
Processing
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart III: CONTRACT ADMINISTRATIONPROJECT RECORDS
FORMS used within PROJECT RECORD ADMINISTRATION:
8) MATERIAL ISSUING REPORT (MIR)
Purpose: Recording of MATERIAL CONSUPTION / NECESSITY for PROJECT COST CONTROL
Flowchart:
Store Controller prepare MIR
Purchase Manager check
MIR
Cost Control Engineer for Data
Processing
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart III: CONTRACT ADMINISTRATIONPROJECT RECORDS
FORMS used within PROJECT RECORD ADMINISTRATION:
9) PROJECT PHOTOGRAPHS + PHOTOGRAPH INDEX
Purpose: Recording is helpful for:
Accurate Asses of Work Progress
Dispute Settlement
Future Claims
Good Public Relations
Back to Content of Part III
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart III: CONTRACT ADMINISTRATIONPROJECT CONTROL DIVISION - MEMBERS
PROJECT CONTROL DIVISION – ORGANIZATION STRUCTURE
Project Control Manager
Contract Engineer Quantity Surveyor Document Controller
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart III: CONTRACT ADMINISTRATIONPROJECT CONTROL DIVISION - MEMBERS
Project Control Manager
RESPONSIBILITY to the Project Manager
HOLD overall RESPONSIBILITY of SECTION
CO-ORDINATION with Other Section Heads for Effective Functioning
TEAM DEVELOPMENT with his Experience
PERFORM as CONSULTANT in the Organisation
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart III: CONTRACT ADMINISTRATIONPROJECT CONTROL DIVISION - MEMBERS
Contract Engineer
STUDY the Contract Documents (CC, GTS, STS etc.)
PREPARE the STATEMENT of SUBMITTALS / APPROVALS requirement from Engineer
CO-ORDINATION with Construction Division (Method statements, Quality etc.)
VARIED Works Identification => Notice to Engineer
CLAIM Identification => prepare FACTS and GROUND
STUDY INCOMING CORRESPONDENCE
PREPARE OUTGOING CORRESPONDENCE in cooperation with Project Manager
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart III: CONTRACT ADMINISTRATIONPROJECT CONTROL DIVISION - MEMBERS
Contract Engineer
Prepare KEY DATES of CONSTRUCTION: (Commencement date, Possession of Sites, other important dates)
Prepare NEW CONTRACTS
ORGANIZATION of MEETINGS (Weekly, Monthly)
SCHEDULE CONTROLLING with the Engineer and the Subcontractors
INFORM concern DIVISIONS of any CONTRACTUAL LACKINGS
MONITOR status of other CONTRACTUAL ADMIN. ISSUES (Bank Guarantees, Retention money etc.)
Preparation of ADDENDUMS to Contract / Subcontract
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart III: CONTRACT ADMINISTRATIONPROJECT CONTROL DIVISION - MEMBERS
STUDY: - BOQ & Description of items - Measurement/Payment part of Technical specifications
Prepare MONTHLY STATEMENT in coordination with Site Engineers
CLAIM of PROVISIONAL PAYMENT (non-approved Varied works)
PRICE INDICES collection & CLAIM of PRICE ADJUSTMENT
Subcontractor/Other parties INVOICE evaluation
QUANTITY PREPARATION (revised drawing)
RECONCILIATION TABLE (certified QUANTITY Engineer vs. Subcontractor)
Preparation of REVISED CONTRACT PRICE
Quantity Surveyor
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart III: CONTRACT ADMINISTRATIONPROJECT CONTROL DIVISION - MEMBERS
Flow chart of Preparation of Monthly statement (Invoice)
Quantity Surveyor
Subcontractor submit SUMMARY OF WORKS23rd day of Actual month
Contractor prepare SUMMARY OF WORKS
Submissions of SITE DIARIES to Engineer26th of Actual month
Substantiation of SUMMARY OF WORKS
APROVAL BY
ENGINEER
Preparation/Submission of INVOICES Object wise
Signature of INVOICES Object wise by the
Engineer / Contractor
Preparation/Submission of CLAIM FORM, COVER
LETTER, OBJECT SUMMARIES, GENERAL
ITEMS, INVOICE for whole PROJECT
Signature of SUBMITTED documents
Finalization of INVOICE
SUBMISSION to the EMPLOYER
8pcs / 7th day of next month after actual
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart III: CONTRACT ADMINISTRATIONPROJECT CONTROL DIVISION - MEMBERS
CORRESPONDENCE SUBMISSION to relevant parties
CIRCULATION of incoming / outgoing correspondences
DOCUMENT CONTROL RECORD Updation
MONTHLY PROGRESS REPORT preparation – to Employer / Internal
DRAWING Control
ASSISTANCE to QS within MONTHLY STATEMENT / INVOICE submission
ASSISTANCE to CONTRACT ENGINEER within REMINDERS / REPLIES to Various parties
Keeping RECORDS of QUALITY CONTROL, SITE DIARY etc.
Document Controller
Back to Content of Part III
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENT
Part IV: CLAIMS AND COUNTERCLAIMS
Back to Content of Presentation
Part IV: Claims and Counterclaims
Chapter Name
1. Definition
2. Claim Administration
3. Variation Procedure
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart IV: CLAIMS AND COUNTERCLAIMSDEFINITION
Literal meaning of CLAIM:
“A statement that something is true that you have no definite proof”
Back to Content of Part IV
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart IV: CLAIMS AND COUNTERCLAIMSCLAIM ADMINISTRATION
ORIGIN of CLAIM:
ADVERSE OBSTRUCTIONSor CONDITIONS ENCOUNTERED
For example: • NON-DELIVERY or DELAY IN DELIVERY OF MATERIAL/ APPROVAL/ DRAWING•ABNORMAL RAINFALL• etc.
RISKMAIN PURPOSE OF
CONTRACT : DISTRIBUTE RISK AMONG PARTIES
EMPLOYER vs.CONTRACTOR
=
Raise of CLAIMby CONTRACTOR or
EMPLOYER
• Additional/ Reduced PAYMENT • TIME Extension
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart IV: CLAIMS AND COUNTERCLAIMSCLAIM ADMINISTRATION
SOURCE of CLAIM:
No. Source Name Remark
1) Authorities, Instructions, Approvals of the Engineer including Engineer's Representative
2) Discrepancy or description of contract documents
3) Underground and physical conditions Variation of Geology
4) Time for completion, construction method and temporary work plan
5) Setting-out, exploratory excavation and boreholes
6) Possession of site Delay, Third party rights
7) Occurrence of Employer's risks or force major
War, Rebelien. Missile
8) Arising of damage and insurance
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart IV: CLAIMS AND COUNTERCLAIMSCLAIM ADMINISTRATION
SOURCE of CLAIM:
No. Source Name Remark
9) Damage to third party (crack, noise, traffic, fishery etc)
Damage to adjacent houses, buildings etc.
10) Test and inspection (attendance on inspection, excess inspection, results, timing, contents)
11) Labour, working hours, night and rest day work, foreign labour, local preference)
Extention of working hours to accelerate the progress
12) Supply of samples More samples than required
13) Increase or decrease of quantities in BQ
14) Variations, additional works, scope change
Different character of the Works
15) Completion and taking-over (list of outstanding works, date of certificate)
Issue of Taking Over Certificate
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart IV: CLAIMS AND COUNTERCLAIMSCLAIM ADMINISTRATION
SOURCE of CLAIM:
No. Source Name Remark
16) Statement and payment
17) Suspension Disruption of Works due to Employer fault
18) Employer supplied materials (electricity and water)
Interruption in delivery/supply
19) Fluctuation of materials and labour
20) Works done by other contractors
21) Changes or enactment of legislation Change of VAT, tax, levy
22) Design
23) Licenses and permission
24) Defects liability Delay in completion
25) Currencies and rate of exchange Exchange loss/gain
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart IV: CLAIMS AND COUNTERCLAIMSCLAIM ADMINISTRATION
CLAIM PROCEDURE:Occurrence of
Adverse Condition
Forecast of Additional Cost and/or Delay in progress resulted from Condition
Recognition of Entitlement with Contract Documents
Recognition of Extend of Claim
Preparation of Claim Documents Facts, Record,
Ground Quantum
Notice of Occurrence to Engineer/Employer
Keep and maintain records
Notice to Claim
Submission of Claim / Documents
Claim NegotiationPreparation/ substantiation of CLAIM
Procedures according to CONTRACT
Back to Content of Part IV
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart IV: CLAIMS AND COUNTERCLAIMSVARIATION PROCEDURE
IT REPRESENTS:
Increase or decrease of the Work quantities
Deletion of a part of the Works
Changes in the specification, levels, dimensions
To PROPERLY COMPLETE the WORKS
The ENGINEER has RIGHT to make CHANGES of:
FORM QUALITY QUANTITY
- VARIATION are ONLY WORKS necessary for the Purpose of the Works
LIMITATION:
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart IV: CLAIMS AND COUNTERCLAIMSVARIATION PROCEDURE
VARIATION shall be made IN WRITING
ISSUE of VARIATION:
IF made VERBALLY => CONTRACTOR shall confirm VERBAL VARIATION through AVI Form (AVOID VERBAL INSTRUCTION – explained before)
Under FIDIC: Variation shall be made in form of:
“INSTRUCTION BY ENGINEER”
Additional Cost / Expenses shall be VALUED Using:
A) RATES/ UNIT PRICES set in CONTRACT
B) PRO-RATA RATES from CONTRACT
RATES
C) NEW RATES
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart IV: CLAIMS AND COUNTERCLAIMSVARIATION PROCEDURE
ISSUE of VARIATION:
Under FIDIC: Contractor execute Engineer’s Instruction
WITHOUT VARIATION ORDER
CONTRACTOR’s CLAIM on:
A) ADDITIONAL COST B) TIME EXTENSION
Contractor’s INTENTION: to contend the application of HIGHER RATES since in the CONTRACT RATES is included the DISCOUNT made during negotiation
ENGINEER’s INTENTION:
NOT to ADMIT VARIATIONS and ARGUES it is WITHIN the ORIGINAL SCOPE of the works.
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENTPart IV: CLAIMS AND COUNTERCLAIMSVARIATION PROCEDURE
CLAIMS by the EMPLOYER:
Cl. CLAUSE Name Remark
10.3 Performance Security
16.2 Engineers at Liberty to Object
22.1 Damages to persons and property due to Contractor’s fault
29.1 Interference with Traffic and Adjoining properties
30.1 Avoidance of Damage of Roads
30.3 Transport of Materials or Plant
39.2 Default of Contractor in Compliance
47.1 Liquidity Damages for Delay
49.4 Contractor’s Failure to Carryout Instructions
63.1 Default of Contractor
Back to Content of Part IV
PROJECT CONTROL DIVISION
TAISEI CORPORATIONCONTRACT MANAGEMENT
CONCLUSION OF PRESENTATION
THANK YOU VERY MUCH
FOR YOUR KIND ATTENTATION AND PATIENCE
WITHIN THE PRESENTATION OF:
CONTRACT MANAGEMENT
NEXT PRESENTATIONS:
RISK MANAGEMENT
LEGAL MANAGEMENT