INTRO TO CONTRACT 17.03.2012.ppt

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www.company.com Company LOGO www.company.com CONTRACT ADMIN introduction introduction LAM PT 3 preparation

Transcript of INTRO TO CONTRACT 17.03.2012.ppt

Page 1: INTRO TO CONTRACT 17.03.2012.ppt

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CONTRACT ADMIN

introductionintroduction

LAM PT 3 preparation

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Ascertain the time of occurrence

Investigate source of failure

Check if insurance still within coverage

Construction phaseDLP phasePost DLP

Construction QualitySub standard materialErection methodDesign flaws

CARPI

Assess Damage

Material/WorkHuman life

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Company LOGO Q & A ???

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As the Contract administrator what should you do when the contractor submitted his insurance policy ?

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Company LOGO THINGS TO CHECK AND VERIFY PRIOR TO

COMMENCEMENT :

•TYPE OF INSURANCE ( Basic and additional )Contractor’s All Risk InsuranceErection All Risk InsuranceBoiler & Pressure Vessel InsuranceMachinery Breakdown- Loss of ProfitElectronic Equipment Insurance

•SUM INSURED•COVERAGE – Fire, flood, etc.•PERIOD OF INSURED

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Company LOGO Contractor's All Risk Insurance

Contractor’s All Risk Insurance provides comprehensive coverage to all works to be executed in accordance with the contractor’s contract, temporary works, material, construction plant and equipment brought into the site and liabilities arising out of the performance of the contract. The policy covers against accidental and unforeseen physical loss or damage to the property insured occurring during the period of insurance. material damage section of the policy, any sudden and unforeseen physical loss or damage caused by fire, lightning, explosion, flood, inundation, windstorm of any kind, earthquake, theft, burglary, bad workmanship, negligence, lack of skill, lack of experience, malicious acts or human error, or any other sudden and unforeseen event such as loss or damage due to collapse, foreign objects and on-site transport of items to be constructed are covered. The liability section of the policy provides indemnity in respect of third party liability which the insured shall become legally liable to pay as damages consequent upon : •Accidental bodily injury to or illness of third parties; or•Accidental loss of or damage to property belonging to third parties•Occurring in direct connection with the construction of the contract works and happening at or in the immediate vicinity of the construction site.

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The contractor submitted a claim

for material on site for 4 crates of

escalator components that

have been delivered on site. What will be your response be ? And why? Cite the

relevant CoC.

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MATERIAL ON SITE CLAIM

1. Get proof of ownership./purchase order/ invoice /retain of title.

2. Verify quantity/quality3. Verify conformance to specification.4. Verify storage area : Security & Safety. 

Clause 14.4Warranty of title of goods and materials…..  

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What is meant by CoC Cl 15.1(b) “other requirements

expressly stated in the Contract Documents as a

pre requisite for the issuance of the

Certificate of Practical Completion have been

complied with.” .

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1.testing and commissioning requirement;2.training of staff to use equipment;3.requirement for statutory certificates and/or

manufacturers' warranties for equipment, materials and goods incorporated into the Works;

4.any As-built Drawings, operation and maintenance manuals which may be required at CPC

5.Preliminaries items.

"other requirements expressly stated in the Contract Documents as a pre-requisite for the issuance ofthe Certificate of Practical Completion... ".

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The client for the project had requested for your advise

with regards to how can he cover his losses ( the roof

has collapsed. What will be your response ?

.

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Ascertain the time of occurrence

Investigate source of failure

Check if insurance still within coverage

Construction phaseDLP phasePost DLP

Construction QualitySub standard materialErection methodDesign flaws

CARPI

Assess Damage

Material/WorkHuman life

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Ascertain the time of occurrence

Investigate source of failure

Check if insurance still within coverage

Construction phaseDLP phasePost DLP

Construction QualitySub standard materialErection methodDesign flaws

CARPI

Assess Damage

Material/WorkHuman life

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The contractor had expressed that he doesn’t

want to purchase CAR policy. Can he do so? What

other policies can he purchase instead to fulfill

the contractual requirement under PAM 2006?

.

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The site supervisor informed you that there is an accident occurred

at the site about 30 mins ago. What will be your action as the

Contract Administrator?.

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OCCUPATIONAL SAFETY AND HEALTH (NOTIFICATION OF ACCIDENT, DANGEROUS OCCURRENCE, OCCUPATIONAL POISONING AND OCCUPATIONAL DISEASE) REGULATIONS 2004 PART II - NOTIFICATION AND REPORTING OF ACCIDENT, DANGEROUS OCCURRENCE, OCCUPATIONAL POISONING AND OCCUPATIONAL DISEASE Regulation 5. Notification and reporting of accident and dangerous occurrence.

(1) Whenever any accident arising out of or in connection with work which caused any person either— (a)death; or (b)serious bodily injury, as specified in First Schedule, which prevents the person from following his normal occupation for more than four calendar days, or where a dangerous occurrence, as specified in Second Schedule, takes place in any place of work, the employer shall— (aa) forthwith notify the nearest Department of Occupational Safety and Health office by the quickest means available; and (bb) within 7 days send a report thereof in an approved form.

(2) Whenever any accident arising out of or in connection with work which causes bodily injury to any person which prevents the person from following his normal occupation for more than four calendar days, the employer shall, within 7 days, send a report thereof in an approved form to the Department of Occupational Safety and Health office.

(3) Where an employee, as a result of an accident arising out of or in connection with work, has suffered an injury or condition reportable under subregulation (1) which causes death within one year of the date of that accident, the employer shall inform the Director General in writing of the death as soon as it comes to his knowledge, whether or not the accident has been reported under subregulation (1).

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The site supervisor informed you that there is an accident occurred

at the site about 30 mins ago. What will be your action as the

Contract Administrator?.

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The client has instructed you to pay material off site to the

contractors who is his cousin. What is your response and

advise to him?.

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AS PER PAM 2006 (Clause 3 )

3.1 (a) the Letter of Award; 3.1 (b) the Articles of Agreement; 3.1 (c) the Conditions of the Contract; 3.1 (d) the Contract Drawings; 3.1 (e) the Contract Bills; and 3.1 (f) other documents incorporated in the Contract Documents, unless expressly stated to be excluded in any of the Contract Document.

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AS PER PAM 2006 (Clause 3 )

3.1 (a) the Letter of Award; 3.1 (b) the Articles of Agreement; 3.1 (c) the Conditions of the Contract; 3.1 (d) the Contract Drawings; 3.1 (e) the Contract Bills; and 3.1 (f) other documents incorporated in the Contract Documents, unless expressly stated to be excluded in any of the Contract Document.

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AS PER CIDB

CONTRACT DOCUMENTS  The several documents forming the Contract are to be taken as

mutualy explanatory of one another but in the event of any conflict or

inconsistency between the documents Forming the Contract , the priority shall be

as follows: 1. The Articles of Agreement;2. The Letter of Award;3. The Conditions;4. The Addenda listed in Article 3 of the Articles of Agreement;5. The Drawings;6. The Specifications;7. The Bills of Quantities or Schedule of Works (whichever is

applicable);8. Other documents listed in Article 3 of the Articles of Agreement.

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BORANG JKR 203 PERKARA-PERKARA PERJANJIAN Dokumen-dokumen berikut hendaklah disifatkan menjadi dan dibaca dan ditafsirkan sebagai sebahagian daripada Kontrak ini, iaitu:  (a)            Perkara-Perkara Perjanjian; (b)            Borang Tender; (c)             Surat Setujuterima Tender; (d)           Syarat-Syarat Kontrak dan Lampiran Tambahan kepada; (e)            Peruntukan-Peruntukan Khas kepada Syarat-Syarat Kontrak untuk:  (i)                ………………………………………………………………… (ii)             …………………………………………………………………  (iii)          …………………………………………………………………  (f)             Pelan-Pelan Kontrak; (g)           Senarai Kuantiti; (h)           Spesifikasi; (i)              Arahan Perbendaharaan sebagaimana dinyatakan dalam

Lampiran kepada Syarat-Syarat Kontrak

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COMMON STANDARD CONTRACT FORM - Malaysia 

PAM 1998 (Pertubuhan Arkitek Malaysia)(Building Works) (Private client)

 JKR 203/203A (Jabatan Kerja Raya)

(Generic – Building, Road, Civil etc) (Government clients/agencies)

 CIDB 2000 (Lembaga Pembangunan Industri Pembinaan Malaysia)

(Building) (Private client/Government)

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INTERNATIONAL 

JCT 1998(Joint Contracts Tribunal)(untuk kerja-kerja bangunan) (bagi majikan swasta dan pihak berkuasa

tempatan di UK) 

ICE 1979 (Pindaan 1985)(Institution of Civil Engineers)(untuk kerja-kerja kejuruteraan sivil) (kegunaan persendirian (private)

atau lain-lain majikan) 

FIDIC 1973 (Federation Internationale des Ingenieurs Conseils)(untuk kerja-kerja kejuruteraan sivil – menggunakan syarat-syarat

Antarabangsa))

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Company LOGO Standard Contract Form?

Advantage 1. It becomes more economical as there is no need to draft new

terms of contract every time a contract is let out.2. It provides more certainty when tendering.3. Familiarity makes it easier and quicker to be priced.4. It creates the possibility of a more balanced allocation of risk

between the contracting parties.5. There is a higher chance of avoiding unwarranted disputes in

court or arbitration. Disadvantage / Keburukan/Kelemahan 1. Ambil (terima)/tinggalkan! Take it or leave it!2. Kontrak khusus tak terpakai only generic3. Melemahkan inovasi4. Unfair allocation of risk??

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CHALLENGE in CONSTRUCTION PROJECT

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So… what is CONTRACT ..???

Americans are spending $380 billion yearly on gambling and that doesn't include construction projects.

Architects and contractors are a lot alike in some situations. Like when a building is collapsing on top of them.

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So… what is CONTRACT ..???

I thought architects were the tools

“An architect's most useful tools are an eraser at the drafting board, and a wrecking bar at the site.”

— Frank Lloyd Wright

The problem is, you need to follow up the demolition with construction. Don’t forget that last part, OK?

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So… what is CONTRACT ..???

How to get rid or your contractor “The quickest way to get rid of a contractor is to hire him.”

That sure worked in our case.

Bonus! It also works for your architect.

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CHALLENGE with CONSTRUCTION PROJECT

Problems

• Shoddy workmanship.• Building collapses.• Poor standards of materials.• Site safety and maintenance.• Site supervision.• Complaints of poor maintenance.

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CAUSES :

• Negligence of consultants.• Unskilled workmen.• Lack of training / trade schools.• Too many jobs or task.• Consultants overloaded with jobs.• "Tidak apa" attitude.

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CAUSES :

• Negligence of consultants.• Unskilled workmen.• Lack of training / trade schools.• Too many jobs or task.• Consultants overloaded with jobs.• "Tidak apa" attitude.

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Design Stage• Fresh / inexperienced graduates doing the design work.• Lack of standard guidelines / Malaysian Standards to design to.• Lack of soil investigations before carrying out the designs.• Lack of qualified people in authority to check and approve the drawings.• Lack of continuing education.• Lack of R&D – slow improvement.• Relevant Authorities do not bear responsibility in approving the plans.

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Construction Stage• Lack of enforcement / policing of building bye-laws.• Lack of supervision / Clerks of Works not required to be

properly trained / qualified.• Contractors not bound by the law – unethical

• Developer and Contractor are the same person.• Site maintenance / site safety.

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Post Construction Stage• No periodical checks on the completed buildings

by consultants / developers enforced by law.

• Lack for guidelines / Act for maintenance of buildings by Developers / maintenance manuals.

Page 44: INTRO TO CONTRACT 17.03.2012.ppt

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So… what is CONTRACT ..???

A bad workman blames his fools … EDIT: tools … stupid keyboard.

(Actually, this is remarkably accurate for the contractor I used. He was a bad workman, he hired fools, and they were tools.)

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CHALLENGE in CONTRACT ADMIN

INDUSTRY IS HIGHLY FRAGMENTED

HIGH EXPECTATION AND RELIANCE BY THE CLIENT

BIGGER FIELD OF KNOWLEDGE

LACK OF TRUST BY THE CLIENTS

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Challenge in CONTRACT

Changes in Design Brief by client

Over design

Lag by team member

Changes in Personnel

Late Decision

Poor management

Misinterpret the brief

Ignorance to estimation

Lack coordination

Organisation Policy

Redesign

Late Authority App

Irresponsible

Ignorance to req’ment.

Left out in Planning schedule

Overshoot Datelines

Redesign

Discoordinated

No Continuity

No Continuity

UNrealistic datelines

Poor Scheduling

No Continuity

Outdated information

Mis informed

Mistakes

Lack coordination

Lack collaboration

Ignorance / Careless

Inadequate study & Info

Page 47: INTRO TO CONTRACT 17.03.2012.ppt

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So… what is CONTRACT ..???

A real architect is someone who walks in after everyone has walked out.

Page 48: INTRO TO CONTRACT 17.03.2012.ppt

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So… what is CONTRACT ..???

The thing about being an architect is that if you can make one developer happy, if you can

make one project great, if you can make one project great if you can get one award than you

will still be stuck with twenty failures.

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So… what is CONTRACT ..???

When my architect checks out of a hotel, three weeks later the mirror is

still warm.

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Initial Planning-INCEPTION

Purpose and importance of project planning

Government Projects Procedures

oGovernment Projects ProceduresThe Process:

From Client to JKR

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So… what is CONTRACT ..???

The government is doing an experiment, so they take an architect and put him in a room with 3 small glass balls on a table. They leave him, come back

an hour later and the balls are stacked in a pyramid. They ask him why he did it and he says, “Because I knew it could be done.”

Next they take an engineer, put him in the room with the balls. They leave him, come back an hour later and the balls are stacked straight up one on top

of each other. They ask why he did it and he says, “Because I knew it could be done.”

Then they take a contractor, same thing. Come back an hour later, there's one ball on the table. They ask him what happened and he goes “Umm ... well

... I broke one and the other one is in my lunchbox, I'm taking it home.”

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QUESTION & ANSWER ( maybe …)

QUESTION.. ANYBODY???

Page 53: INTRO TO CONTRACT 17.03.2012.ppt

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QUESTION & ANSWER ( maybe …)

Tenkiuu for ur time & ears..

PLEASE READ YOUR PAM 2006

FOR OUR NEXT SESSION