Operations Manual.pdf

Asia Projects Operations Manual - Issue 1 / Intr oductionDesign ManagementRevision 2, 28/10/98

CONTENTS DESIGN MANAGEMENT

A. INTRODUCTION

B. PROCESS FLOWCHART

1.0 SUBMISSION

1.1 TIME - Planning

1.1.1 Submission Planning

1.1.2 Overall Schedule

1.1.3 Supervision & Manpower Schedule

1.2 COST - Budget Preparation

1.2.1 Design Authorization (DA)

1.2.2 Estimate

1.3 ADMIN / QUALITY - Documentation

1.3.1 Client Brief

1.3.2 Design Criteria / Client Specification

1.3.3 Submission

1.3.4 Submission Drawings

1.3.5 Design Fees Estimate

1.3.6 Project Correspondence

1.4 REVIEWS

1.4.1 Strategy Review

1.4.2 Interim Pricing Review

1.4.3 Risk Analysis

1.4.4 Contract Price Review

1.5 LIMITS OF AUTHORITY


2. DESIGN DEVELOPMENT

2.1 TIME - Design Planning

2.1.1 Procurement Schedule

2.1.2 Design Schedule

2.2 ADMIN - Controls

2.2.1 Project Filing

2.2.2 Document Controls

2.2.3 Project Control Group Meetings

2.2.4 Minutes of Meetings

2.3 COST - Procurement / Commitments

2.3.1 Professional Services Agreement (PSA)

2.3.2 Cost Planning

2.4 ADMIN - Head Contract

2.4.1 Head Contract

2.4.2 Insurances

2.5 ADMIN - Registers

2.5.1 Consultant Register

2.5.2 Authorities Register

2.5.3 Drawing Register

2.5.4 Specification & Document Register


INTRODUCTION

THE ASIA PROJECTS OPERATIONS MANUAL

The Asia Projects Operations Manual has been developed to assist the Project Staff for the AsiaRegion with an understanding of the processes required for the design and delivery of a project inAsia.

The Manual is split into the following :

• Design Management

1.0 Submission2.0 Design Development

• Construction Management

1.0 Pre-Construction2.0 Construction3.0 Completion4.0 Project Planning5.0 Safety

The intent of the manuals is to provide examples of Inputs, Controls and Outputs for both Designand Construction in accordance with the Lend Lease Project Management System.

It is also intended to set minimum standards for the respective disciplines as noted herein.


THE LEND LEASE PROJECT MANAGEMENT SYSTEM

The Lend Lease Project Management System is based on having a close relationship with theproject’s client :

Lend Lease Project Management System

CLIENT ARCHITECT

ENGINEERINGCONSULTANTS

SUBCONTRACTORS

SUPPLIERS

PROJECTMANAGER

Lend LeaseASIA


The process of the delivery of a typical project in Asia is best illustrated in the bar chart below :

LEND LEASE PROJECT MANAGEMENT DESIGN & CONSTRUCTION

TRADITIONAL

Comparison of Design & Construction andTraditional Methods of Project Delivery

DESIGN, DOCUMENTATIONAND AUTHORITY APPROVALS

BRIEF, CONCEPTDESIGN,QS CHECK,FIXED LUMP SUM

CONSTRUCTION

% OF TIME TO COMPLETION

TIME SAVING

10 20 30 40 50 60 70 80 90 100

DESIGN, DOCUMENTATIONAND AUTHORITY APPROVALS

BRIEF, CONCEPTDESIGN,AND BUDGETPRICE

TENDER, ASSESSAWARD BUILDINGCONTRACT

CONSTRUCTION

10 20 30 40 50 60 70 80 90 100


The advantages of the Lend Lease Project Management System from the Client’s point of view are :

• LL is responsible for the time, cost and quality• A single point of responsibility through the whole process.• Shorter project development time• LL provide a warranted price at an early stage

The disadvantages are :

• Perceived as being too expensive.• Perceived as loss of control by the Client.• System is not commonly understood.

THE ORGANIZATION STRUCTURE

In order for Lend Lease Asia to perform their Project Management System they have adopted anorganisation structure based on Regional Branches reporting to the Regional Director via theRegional Business Development Manager, Regional Operations Manager and Regional FinancialController.

The Regional Organization structure is :

Asia P

rojects Operations M

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Design M

anagement

Revision 2, 28/10/98

Regional Director

Regional BDM Regional OPM Regional Fin. Controller

BDMThai

BDMSingapore

BDMMalaysia

BDMChina

BDMIndia

BDMIndonesia

OPMChina

OPMIndia

OPMIndonesia

Fin. CChina

Fin. CIndia

Fin. CIndonesia

OPMThai

OPMSingapore

OPMMalaysia

Fin. CThai

Fin. CSingapore

Fin CMalaysia

The regional organisation associated withthis manual.

REGIONAL LL ASIA

REFER BRANCH STRUCTURE

Asia P


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A typical Operation Branch / Country Organisation structure is :

OperationsManager

EstimatingSupport

ProjectManagersConcept

ProjectManagersDelivery

Fin. / AdminSupport

ProjectEngineering

SiteEngineers

Supervisors


ROLES AND POSITION DESCRIPTIONS

The traditional responsibilities and accountabilities for a typical Lend Lease Asia Branch are listed.

Operations Manager :

The Operations Manager reports directly to the Regional Operations Manager. Duties, authoritiesand responsibilities include but are not limited to the following :

• Is totally responsible and has the authority for the effective management and successful deliveryof all projects.

• Is responsible and has the authority to ensure that a suitable site organization exists to pursuethe Quality Assurance objectives and has the authority to make changes in the organization toobtain the required quality levels.

• Has the authority and will ensure that appropriate action is taken, upon recommendations ofthe Project Manager Concept and the Project Manager Delivery.

• Is responsible and has the authority to ensure that a suitable site organization and deliveryplan exists to implement the objectives of the business.

• Has the authority to manage the total project management function of the business includingall disciplines of Design and Engineering at business and site level.

• Is authorised to direct project management activities in order to develop and maintain thecorrect level of competence and to enhance the company’s technical reputation.

• Is authorised to ensure an adequate level of engineering competence in all project managementactivities by the appointment and direction of staff, the delegation of authority and by the reviewof results.

• Is authorized to develop and maintain the overall project management capability of the companyby monitoring trends and developments in the industry and by initiating recruitment, promotionand training programmes.

• Ensures that each Project Manager establishes and implements the Occupational Health &Safety and Environment and Quality Policies and Objectives for the specific projects.

• Coordinates with other sections at all management meetings.

• Reviews project management cost estimates and assists in the preparation of proposals.

• Assists the Business Development Manager in developing Business plans, and works withother section heads in the preparation of budgets, organization charts and manpowerrequirements.

• Resolution of Engineering orientated Non-Conformances.

• Assumes the Business responsibility for Quality


Project Manager Concept :

The Project Manager Concept reports directly to the Operations Manager. Duties, authorities andresponsibilities include but are not limited to the following :

• Is the customer representative within Lend Lease.

• Is authorised as the responsible person for overall performance of the porject in meeting theagreed customer expectations.

• Is authorised and responsible for establishing the Quality, Occupational Health & Safety andEnvironment System, to be incorporated into the project, including the systems to be operatedby the project consultants, (Sub) contractors, suppliers and Lend Lease’s site team. Thisshall include the control of all non conforming product until the deficiency or unsatisfactorycondition has been corrected.

• Is authoized and responsible for preparation of PreContract Designs and preliminary projectmaterial.

• Is authorised and responsible for the preparation and /or checking of contract design,specifications and documents and recommending actions to provide solutions to problems.

• Responsible for establishing and maintaining project management files, statistics, reportsand all required evidence of compliance with the agreed customer project brief and theverification of all implemented solutions.

• The Project Manager Concept may delegate some site related design responsibility to theProject Engineer. Such delegation shall be authorised by the Operations Manager.

• The authority to assign responsibility and authority to various site staff in consultation withthe Project Manager Delivery.

Project Manager Delivery :

The Project Manager Delivery reports directly to the Operations Manager. Duties, responsibilitiesand authorities include but are not limited to :

• The authority and responsibility for the efficient operations of the particular site includingpersonnel, EHS, employee relations, purchasing, cost control and general administration.

• Purchase Requisitions, and Invoice Approval for payment of creditors as defined within theLimits of Authority detailed within the Asia Project Operations Manual and as amended fromtime to time.

• The authority to represent the Company at Site level concerning Industrial Relations innegotiations with Employer Associations / Authorities etc.

• The Project Manager Delivery is authorized to recommend and initiate a review of sitestaffing and procedures in Personnel, Purchasing and General Site Office Administration tomaintain efficiency in these areas.

• Is authorised to recommend the assigning of responsibility and authority to various site staff.


• The authority and responsibility for the interface between the design groups and theconstruction site.

• The authority and responsibility for executing QA Procedures and construction activities.

• The authority and responsibility for establishing and maintaining contact with the Client’srepresentative and all departments within Lend Lease to coordinate the completion of thecontract.

• Review QA documents and their production, specifications and drawings and prepares fieldinstructions for construction. He is authorised to recommend alterations to these documents.

• Is authorised to plan and prepare schedules for execution of the contract and nominatespriorities for the construction, manufacturing and delivery of material to the site.

• Is authorised and is responsible to ensure that all subcontractors are correctly implementingtheir QA Procedures.

• Supervision of Subcontract Personnel and suppliers.

• Is authorised to ensure site EHS requirements are being met.

• Coordination of construction activities to ensure that the required standards are met.

• Is authorised to review contract drawings and specifications to make sure the fabricateditems are constructed to the plans and specifications. The Proejct Manager Delivery has theauthority to place on hold, or reject items which do not meet the required quality levels.

• Is authorised to review and monitor the construction activities to see that applicable proceduralrequirements are met, including QA and EHS.

• Is authorised to ensure that all materials required for each (sub) contract package are asrequired by the Specification.

• Is authorised to supervise performance of all construction procedures and production tests,by (sub) contractors. The Project Manager Delivery has the authority to reject a specific testand make decisions on whether additional testing of the item should be administered.

• Monitoring and documenting of Quality records which indicate compliance to Client & Authorityrequirements.

• Assurance that processes, examinations, inspection and tests of all subcontractors conformto the requirements and are performed by trained and qualified personnel.

• Submit final report and checklists at the completion of construction of the particular stage ofthe project if the Quality Plan requires this action.

Asia Projects Operations Manual - Issue 1 / Generic Pr oject Deliver y Process Flo wchar tDesign ManagementRevision 2, 28/10/98

PROCESS FLOWCHART

GENERIC PROJECT DELIVERY PROCESS FLOWCHART

The following is a flowchart for a Generic Project Delivery Process. In Asia it is a common practiceto go direct from Concept Design to Contract Price and then followed by Design Development.

Generic Project Delivery Process Asia Project Delivery Process1. Market Plan 1. Market Plan2. Strategy 2. Strategy3. Client Brief 3. Client Brief4. Design Brief 4. Concept Design5. Concept Design 5. Contract Price6. Indicative Price 6. Sign Contract7. Design Development/Construction 7. Design Development//Construction

Planning Planning8. Budget Price 8. Construction9. Contract Price 9. Completion10. Sign Contract11. Construction12. Completion

The flowchart identifies :

• Process Stage• Process Activities for each stage• Activity Outputs• The reference section in the Asia Projects Operation Manual

- DM for Design Management- CM for Construction Management


Process Stage Process Activity Activity Outputs Section Ref.

MARKET PLAN 1. Prepare Market and Client Market/Client PlansPlans Client Risk & Opportunity

Assessment.

STRATEGY 2. Prepare Strategy & Project Strategy Plan. DM 1.4.1Conversion Plans Project Conversion Plan.

2a. Expression of Interest Letter

3. Service requests by Client Record or review andClarifications

3a. Design Services Proposal Offer, Tender Bid and ContractReview Checklist or similar reviewrecordWritten Proposal/Submission.

4. Prepare Design Authorisation Design Authorisation. DM 1.2.1And obtain approval

CLIENT BRIEF 5. Prepare Client Needs Brief Client Approved Brief. DM 1.3.1Meeting Minutes. DM 2.2.4

DESIGN BRIEF 6. Prepare Design Brief Client Approved Design BriefMeeting Minutes.

7. Engage Consultants PSA internal review record. DM 2.3.1Request for Authority to sign PSA. CM 2.2.6Signed PSA.

CONCEPT DESIGN 8. Prepare Concept Design Design Meeting Minutes. DM 2.2.4Document Transmittal Form. DM 2.2.2.8Progress Claim – Design fees. CM 2.5.1

BUDGET PRICE 9. Budget Price/Scope Minutes of review meeting. DM 2.2.4Internal Approval Estimators Review Record.

10. Client Approval Written Acceptance.

11. Design Authorisation Design Authorisation. DM 1.2.1Upgrade

DESIGN 12. Design/Price/Scope Contract price submission DM 1.4.4DEVELOPMENT / Preparation Design meeting minutes. DM 2.2.4CONSTRUCTION Design Programme. DM 2.1.2PLANNING

Register and tracking of changes DM 2.5.3Drawing and spec register, doc DM 2.5.4transmittals.

CONTRACT PRICE 13. Contract Price/Scope/ Contract price submission DM 1.3.2Contract Preparation DM 1.3.3

DM 1.3.4DM 1.2.2DM 1.3.5

14. Contract Price/Scope/ Letter of Offer/Proposal. DM 1.3.3.1Contract Internal Approval Contract Price Review Meeting DM 1.4.4

Job Data Sheet. CM 1.1.1



15. Client Approval Written Acceptance. DM 2.4.1Records of ContractNegotiations/Resolutions

SIGN CONTRACT 16. Contract Execution Authority to sign contract. DM 1.5Review re-assess Risk DM 1.4.3Assessment form.

17. Project Delivery Plan Project Delivery Plan.Preparation Construction VerificationReview/Upgrade Verification Schedules.Activities Site Procedures

18. Design Authorisation, Construction Authority. CM 1.1.2Construction Authorisation Design Authority. DM 1.2.1Review

19. Pre Construction Meeting Minutes of Meeting DM 2.2.4

20. Ongoing design completion Design Programme DM 2.1.2and AFC issue for tender Signed off drawing and spec. DM 2.2.2.2packages Design Meeting Minutes.

Design change register/tracking DM 2.2.2System DM 2.5.3

Drawing and Specification DM 2.5.4Registers, document transmittals. DM 2.2.2.8

21. Construction Planning Construction programmes. CM 4.0Programming & Control

CONSTRUCTION 22. Project Reviews & Minutes of project review meetings. CM 1.3.1COMMENCE Verification Activities

23. Subcontract Tenderers Procurement programme. DM 2.1.1.Selection & Tendering Tenderer selection records & CM 2.2.2

tender package. CM 2.2.6

24. Subcontract Evaluation & Minutes of tender review meetings. DM 2.2.4Internal Approval Subcontract Commitment Details

Review records.

25. Sub Contract Award Signed Sub contract, includes any CM 2.2.3Minor Works sub-contracts. CM 2.2.4Supply Agreement. CM 2.2.6

26. Project Construction Document registers CM 2.9Administration S.I’s – includes Confirmation of CM 2.1.2

Verbal Instruction CM 2.7.5RFI’s CM 2.7.6Drawings, specs, minutes,correspondence, etc.

Registers, approval, issue and CM 2.9distribution system.

Approved Subcontractor’s ITPs, CM 2.8.2Final inspection records.ITP – Register of Inspections CM 2.9.13Evidence of Subcontractorinspections.



Nonconformance / Corrective CM 2.8.3Action AdviceRegister of Nonconformancesand control system.Audit programme, audit reports.Customer Supplied Products/Equipment Register.

Delay Notification. CM 2.9.8Job Diary. CM 2.7.4

Site Days Lost Summary. DM 2.2.3Industrial Disputes Record.

27. Project Financial Variation Advice. CM 2.1.2Administration Variation Allocation Sheet. CM 2.1.2

Budget Transfer Input. CM 2.1.1Purchase Order. CM 2.2.1Order Amendment Advice CM 2.2.5Progress Payment Input. CM 2.3.2Request For Credit. CM 2.3.4Client Progress Claim CM 2.5.2Invoice. CM 2.5.1Pro-Forma Invoice CM 2.3.3Credit Note. CM 2.3.4

28. Project Safety System Site Work Injury / Work Related CM 5.0Management Illness Report.

Risk Assessment/Occurrence/Non-Conformance Card.

Monthly Project OHS&ECompliance Report.

PRACTICAL 29. Commission & Handover Test results, final inspections. CM 3.1COMPLETION Defects register and sign-off.

30. Practical Completion, formal Practical Completion Certificate CM 3.2Client acceptance

31. Defects Liability Period Defects register CM 3.3

32. Post Construction Client Defects register CM 3.4/3.5Service

33. Post Construction Review Meeting Minutes.

Asia Projects Operations Manual - Issue 1 / 1.0 SubmissionDesign ManagementRevision 2, 28/10/98

SUBMISSION

The appointed Project Manager Concept for a Project Submission is responsible for :

Time - Submission Planning- Overall Schedule

Cost - Design Authorisation- Estimate

Admin - Brief- Design Criteria- Submission Documents

Reviews - Strategy Review- Interview Price Review- Contract Price Review

This section of the Design Management Manual is intended to provide the Project Manager Conceptwith the tools and examples to perform his responsibilities in preparing a Submission.

1.1 TIME - Planning

1.1.1 Submission Planning

1.1.2 Overall Schedule

1.1.3 Supervision &Manpower Schedule

Asia Projects Operations Manual - Issue 1 / 1.1 - Time - PlanningDesign ManagementRevision 2, 28/10/98

Time - Planning

1.1.1 SUBMISSION PLANNING

The submission plan is the first program drawn up for the project. It is prepared as a resultof the first strategy review, and indicates all activities required to be addressed prior to thesubmission of the contract price.

The submission plan is the responsibility of the Project Manager Concept.

The submission plan shall be done using either Fasttrack Schedule or Primavera / SureTrak IBM based computer programs (refer attached for example). Its activities shouldinclude the following

• Reviews (refer section 1.4)

• Strategy Review• Concept Building Review• Interim Pricing Review• Contract Price Review

• Outputs for submission (refer section 1.3.3)

• Letter of Offer• Description of the Project and the Site• The Profile of the Client• Performance Brief• General Specifications• Programmes• Price Savings & Rate Schedules• Project Philosophy and Team• Project Controls• Lend Lease Overview / Company Resume• Drawings / Sections / Perspective• Proposed Form of Contract• A List of Exclusion items• Executive Summary

• Resources required

• Identification of who is responsible for performing / managing / attending the abovereviews and items

Asia P


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Run Date 29OCT98

© Primavera Systems, Inc.

Early Bar

Progress Bar

Critical Activity

LLA1 Sheet 1 of 1

Sample Submission ProgramLend Lease Asia

..

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26Days

Strategy Review 1Concept building review 1Interim Pricing Review 1Contract Price Review 1

DesignDesign Authorisation singoff 1Concept Design 6Structural design 4Final drawings 4Perspective 2ServicesServices design brief 3Services pricing 6Review of services pricing 2Compile services information for submmission 2EstimatingEstimating 10Program/P&SProgramme 4P&S costing 3

Write performance brief 3Compile general specs 5Risk Assessment 3Other submission information 4Letter of offer 1

Reviews

Actions

Outputs

ActivityDescription

OrigDur

Letter of offer

Risk Assessment

Programme

P&S costing

Services pricing

Concept building review

Strategy Review

Design Authorisation signoff

Interim Pricing ReviewContract Price Review

Compile general specsWrite performance brief

Structural design

Final drawingsPerspective

Review of services pricingCompile services information for submission

Estimating

Concept Design

Other submission information


1.1.2 OVERALL SCHEDULE

The overall schedule is managed by the Project Manager Concept, but includes inputfrom the Project Manager Delivery elect (or the Operations Manager in his absence). Itencompasses the following sub programs, which should be interlinked with one another :

• Authorities Program• Design Program• Client Approvals Program• Procurement Program• Construction Program• Handover and commissioning program• Authorities Inspection program

The overall program is prepared from first principles utilising the build up of unit rates andstandard construction techniques and methodology. This program is then reviewed toensure the logic is correct and that the critical path lies through the extended items.

This program will then form the basis of our contract duration and is known as the ContractSchedule.

The Contract Schedule will then be further developed by the team to further compress theoverall delivery duration of the project. This work will result in a schedule known as theTarget Schedule . This is required to provide the shortest achievable overall constructiontime which results in :

• Reduced preliminaries and supervision costs

• Float between the Contract Completion Date and the Target Completion Dates

The Operations Manager will review both the Contract and Target Schedules.

In all cases, times noted on each of the programs must be accompanied by back upsheets listing the assumptions made on timing of critical and non critical activities. Thisincludes but may not be limited to production rates (crew size and rate per man day),authorities approval times (previous experience), client approval times (local or overseasapprovals) and the like.

It will then be up to the project team (under the management of the Operations Manager)to justify extensions to the above information based on issues such as locality of theproject, availability of resources and materials, inclement weather, extent of liquidateddamages, client expectation etc.

Run Date 29OCT98


Early Bar

Progress Bar

Critical Activity

LLA2 Sheet 1 of 4

Sample Project - Part 2Lend Lease Asia

Construction

Weeks

Construction

Preliminary works

Production shedBuilding shell

Level 1

ActivityDescription

OrigDur

Site establishment

Mobilise piling rigs

Permit to commence piling

Piling

Pile load test 2 & 4 x PDA'sPile Caps

Erect precast columbs (64@5)Structural steel to roof level (6700m2 @ 200/day)

Install wall girts to shed sides

Install roof sheet to main roof area

Install wall sheeting to main shed (394 linm @ 18)

Ground slab pour 1 (609m2)Ground slab pour 2 (458m2)




Ground slab pour 10 (458m2)



Site establishment 10Fencing etc to site 6Level site 6Mobilise piling rigs 6Permit to commence piling 0Start on site 0

Piling 34Pile load test 1 & 4 x PDA's 6Pile load test 2 & 4 x PDA's 6Pile Caps 30Erect precast columns (64@5) 12Structural steel to roof level (6700m2 @ 200/day) 34Install wall girts to shed sides 18Measure gutters 7Install gutters 6Install roof sheet to main roof area 27Install wall sheeting to main shed (394 linm @ 18) 22

Underground services 12Ground slab pour 1 (609m2) 12Ground slab pour 2 (458m2) 6Ground slab pour 3 (458m2) 9Ground slab pour 4 (458m2) 9Ground slab pour 5 (458m2) 9Ground slab pour 6 (458m2) 9Ground slab pour 7 (458m2) 9Ground slab pour 8 (458m2) 9Ground slab pour 9 (458m2) 9Ground slab pour 10 (458m2) 9Ground slab pour 11 (458m2) 9Ground slab pour 12 (458m2) 9Ground slab pour 13 (458m2) 9Ground slab pour 14 (760m2) 10

Start on site

Pile load test 1 & 4 x PDA's

Measure guttersInstall gutters

Underground services

Fencing etc to site



Level site

Run Date 29OCT98


Early Bar

Progress Bar

Critical Activity

LLA2 Sheet 2 of 4


Construction

Weeks

Level 2

General Building

Level 1

Level 2

Office area

ActivityDescription

OrigDur

Columns to mezz level pour 1 3Columns to mezz level pour 2 3Columns to mezz level pour 3 3Form reo & pour mezz pour 1 5Form reo & pour mezz pour 2 5Form reo & pour mezz pour 3 5Construct remaining mezz 18Complete brickwork 18Handover to start hoist works 0Install hoist to mezz area 30Finishes to mezz area 24

Erect steel columns as crane support 12Erect UB as o/head crane rails 12Construct brick upstand wall around shed 22Install ventilation to walls 6Doors & frames to perimeter 6Plaster to brick wall 12Sprinkler roughin to shed area 36Electrical roughin to shed area 30Misc fitout to shed area 24Install roller shutter doors 6

Cure & strip level 1 12Services roughin level 1 12Perimeter brick walls 5Install windows and doors 4Plaster to external walls 6Internal walls 6Misc fitout internally 24Ceilings to level 1 4Flooring to level 1 6Toilet fitout works 18

Commence works on level 2 0Services roughin level 2 12

Columns to mezz level pour 1

Columns to mezz level pour 2Columns to mezz level pour 3

Form reo & pour mezz pour 1Form reo & pour mezz pour 2

Form reo & pour mezz pour 3Construct remaining mezzComplete brickworkHandover to start hoist works

Install hoist to mezz areaFinishes to mezz area

Erect steel columns as crane supportErect UB as o/head crane rails

Construct brick upstand wall around shedInstall ventilation to wallsDoors & frames to perimeter

Plaster to brick wallSprinkler roughin to shed area

Electrical roughin to shed areaMisc fitout to shed area

Cure & strip level 1

Perimeter brick walls

Install roller shutter doors

Services roughin level 1

Install windows and doorsPlaster to external walls

Internal wallsMisc fitout internally

Ceilings to level 1Flooring to level 1

Toilet fitout works

Services roughin level 2

Commence works on level 2

Run Date 29OCT98


Early Bar

Progress Bar

Critical Activity

LLA2 Sheet 3 of 4


Construction

Weeks

General Building

External Works

Substation

Level 1

Level 2

ActivityDescription

OrigDur

Perimeter brick walls 5Install windows and doors 4Plaster to external walls 6Internal walls 6Misc fitout internally 24Ceilings to level 2 4Flooring to level 2 6Toilet fitout works 18

Piling (est 35 @ 8/day) 5Pile Caps (est 12 @ 3 per day) 3Underground services 6Ground slab (304m2) 6Form reo & pour level 2 6Structural steel to roof level (6700m2 @ 200/day) 4Measure gutters 7Install gutters 1Install roof sheet to main roof area 3

Piling to substation area 3Pile caps to substation 8Trenches & u/g conduits 8Ground slab to substation 3Cable chamber level to substation 5Roof to switchroom area 5Cure & strip substation 12Arch fitout of substation 24Handover substation to PowerGrid 0PowerGrid fitout works 60Permanent power available 0

Piling to boiler / compressor / spr pump area 2Pile caps to boiler area 3Underground services to boiler area 12Ground slab to boiler area 12Building works to boiler area 36

General Building

Internal walls

Ceiling to level 2

Flooring to level 2Toilet fitout works

Perimeter brick walls

Install windows and doors

Plaster to external walls

Piling (est 35 @ 8/day)

Pile Caps (est 12 @ 3 per day)

Ground slab (304m2)Underground services

Form reo & pour level 2Structural steel to roof level (6700m2 @ 200/day)

Measure guttersInstall gutters

Install roof sheet to main roof area

Piling to substation areaPile caps to substation

Trenches & u/g conduits

Ground slab to substationCable chamber level to substation

Roof to switchroom areaCure & strip substation

Arch fitout of substation

Handover substation to PowerGrid

Piling to boiler / compressor / spr pump areaPile caps tt boiler area

Underground services to boiler areaGround slab to boiler area

Building works to boiler area

Misc fitout internally

PowerGrid fitout works

Permanent power available

Run Date 29OCT98


Early Bar

Progress Bar

Critical Activity

LLA2 Sheet 4 of 4


Construction

Weeks

Level 1

ActivityDescription

OrigDur

Inspections & Handover

Install boiler / compressor / spr pumps 24Commissioning of equipment 36Piling to deisel / spr and eater tanks 3Ground structure to tank areas 12Bunds and plinths to tank areas 6Install tanks 24Connections etc to tank areas 36Test & commission tank areas 24Piles to cement prep and solvent area 2U/G services to solvent area 6Ground structure to solvent area 6Building works to solvent and cement area 36Install equipment to solvent and cement area 12Test & Commission 36

Commence external works 0Install piles for crossovers 4Build crossovers 6Perimeter drains 30Commence concrete aprons to south side (est 1400) 42Bitumen road to west side 12Prepare subbase of carpark area 8Sealing of carparks 4Misc works to carparks etc 18Landscaping 18Gatehouse & bin centre 24

TOP process 24Practical Completion 0

Install boiler / compressor / spr pumpsCommissioning of equipment

Connections etc to tank areasInstall tanks

Bunds and plinths to tank areas

Test & commisison tank areas

Piling to deisel / spr and water tanks

U/G services to solvent area

Commence external worksInstall piles for crossovers

Build crossovers

Perimeter drains

Gatehouse & bin centre

Ground structure to tank areas

Piles to cement prep and solvent area

Building works to solvent and cement areaInstall equipment to solvent and cement area

Test & Commisison

Commence concrete aprons to south side (est 1400)

Bitumen road to west sidePrepare subbase of carpark area

Sealing of carparksMisc works to carparks etcLandscaping

TOP process

Practical Completion

Ground structure to solvent area

Run Date 29OCT98


Early Bar

Progress Bar

Critical Activity

LLA3 Sheet 1 of 7


Client decision, Authorities, Design

WeeksActivityDescription

OrigDur

Sign off drawings for JTC submission 1Sign off drawings for BP submission 1Sign off finishes schedule 3Sign off door / hardware schedule 3Client approval of elec fittings / fixtures etc 5Client approval of fire services samples 5Client approval of sanitary wares etc 5Client approval of lift finishes 5

ClientClient Decisions

Sign off drawings for JTC submissionSign off drawings for BP submission

Sign off finishes schedule

Client approval of elec fittings / fixtures etcSign off door / hardware schedule

Client approval of fire services samplesClient approval of sanitary wares etc

Client approval of lift finishes

Run Date 29OCT98


Early Bar

Progress Bar

Critical Activity

LLA2 Sheet 2 of 7




OrigDur

JTC submission 0JTC approval 10JTC Signoff 0

URA submission 0Provisional permission (PP) issued 40Response to PP issues 20Resubmission to URA 40URA final planning approval (WP) 0

Registration 5Submission 0WD compliance 40Resubmission 15Clearance 0

Submission 40WD compliance 25Resubmission 20Clearance 0



Submission 40WD compliance 25

JTC

URA Planning

BCD (Building Control)

FSB (Building)

CBPU (Env Health & Poll Control)

CBPU (Drainage)

CBPU (Sewerage)

Building plan Submission

Authorities

JTC submission

Response to PP issuesResubmission to URA

WD compliance

Registration

Submission

Submission

Submission

Submission

Submission

WD compliance

WD compliance

WD compliance

WD compliance

ResubmissionClearance



URA final planning approval (WP)


Provisional permission (PP) issued

JTC approval

JTC Signoff

URA submission

Run Date 29OCT98


Early Bar

Progress Bar

Critical Activity

LLA3 Sheet 3 of 7




OrigDur

Resubmission 20Clearance 0



CS1 load application submission 35 compliance 15Resubmission 20Clearance 0

Line application 40Clearance 0

Water application submission 20WD compliance 15Resubmission 15Clearance 0

BSL submission 15BSL approval 0

BSL submission 15BSL approval 0

LTA (Carparks)

LTA (Roads & Transport)

PowerGrid

Telecoms

PUB Water

BSL (Substructure)

BSL (Superstructure)

Structural

Services

Resubmission

Clearance

WD compliance

Clearance

Submission

WD compliance

Resubmission

ClearanceResubmission



ClearanceLine application

CS1 load application submission

WD complianceWater application submission

BSL submission

BSL approvalBSL submission

BSL approval

Run Date 29OCT98


Early Bar

Progress Bar

Critical Activity

LLA3 Sheet 4 of 7




OrigDur

Preparation of 1:100 Plans, sections, elevations 10LL review 5Issue to all consultants 5Refinement 5BP plans preparation (1:100) 10LL review 5LL issue of AFC (1:100) 15Finishes schedule preparation 5Issue finishes schedule AFC 0Stair drawings (1:50) 15LL review 5Issue AFC stair drawings 0Windows / cladding drawings (1:50) 10LL review 5Issue AFC window / cladding drawings 0Toilet drawings (1:50) 10LL review 5Issue AFC toilet drawings 0Door / hardware schedule & drawings (1:5 & 1:20) 10LL review 5Issue AFC schedule /drawings 0Reflected ceiling drawings (1:50) 5LL review 5Issue AFC ceiling drawings 0Tile layout drawings (1:50) 5LL review 5Issue AFC tiling drawings 0Miscellabeous details / drawings 10LL review 5Issue AFC details / drawings 0

Prepare piling / substructure plans 20LLS review 5

DesignArchitectural

Structural

LL review

LLS review

LL reviewIssue to all consultants

Refinement

LL reviewIssue AFC window / cladding drawings

LL review

Issue AFC schedule / drawings

LL reviewIssue AFC ceiling drawings

Tile layout drawings (1:50)LL reviewIssue AFC tiling drawings

Miscellaneous details / drawingsLL review

Issue AFC details / drawings

LL review

Reflected ceiling drawings (1:50)

Issue AFC stair drawings

Windows / cladding drawings (1:50)

Toilet drawings (1:50)

Issue AFC toilet drawingsDoor / hardware schedule & drawings (1:5 & 1:20)

Finishes sechedule preparation

Issue finishes schedule AFC

Preparation of 1:100 Plans, sections, elevations

LL issue of AFC (1:100)

BP plans preparation (1:100)LL review

Stair drawings (1:50)

Prepare piling / substructure plans

Plumbing & Sanitary

Lift Services

Run Date 29OCT98


Early Bar

Progress Bar

Critical Activity

LLA3 Sheet 5 of 7




OrigDur

AC submission 15Issue AFC 3Prepare superstructure plans 25LLS review 5AC submission 20Issue AFC 3

Single line diagram 10LLS review 5CS1 application 5Services coordination 15Issue AFC drawings 20Compile samples 10Order equipment 0

Schematic diagram 10LLS review 5Services coordination 15Issue AFC drawings 20Compile samples 10Order equipment 0


Initial shop drawings 10LLS review 5Final shop drawings 15LLS approval 5Order equipment 5

Electrical Services

Fire Services

LLS review

Order equipment

Final shop drawings

LLS approval

LLS review

Initial shop drawings

Issue AFC drawings

Schematic diagramLLS review

Issue AFC drawings

LLS reviewSchematic diagram

Services coordinationIssue AFC drawings

Single line diagramLLS review

CS1 application

AC submission

AC submissionIssue AFC

Prepare superstructure plansIssue AFC

Compile samplesOrder equipment

Services coordination

Order equipment

Compile samples


Order equipment

Compile samples

Run Date 29OCT98


Early Bar

Progress Bar

Critical Activity

LLA3 Sheet 6 of 7




OrigDur

Lift car finishes etc 10Order lift car finishes 0

Lift car finishes etc

Order lift car finishes

Asia P



ime - P

lanningD

esign Managem

entR

evision 2, 28/10/98

Run Date 29OCT98


Early Bar

Progress Bar

Critical Activity

LLA3 Sheet 7 of 7




OrigDur

Piling tender, evaluation & lead time 18Pile caps tender, eval & lead time 24RC structure tender, evaluation & lead time 24Brick, plaster & tiling tender, eval & lead time 48Structural steel tender, eval & lead time 72Roofing & wall cladding tender, eval & lead time 60Aluminium & windows tender, eval & lead time 60Doors, frames & hardware tender, eval & lead time 60Misc metalwork tender, eval & lead time 42Painting tender, eval & lead time 30Dry arch tender, eval & lead time 36Roller shutter tender, eval & lead time 72External works tender, eval & lead time 36Floor finishes tender, eval & lead time 60Toilet partitions tender, eval & lead time 60Tiling tender, eval & lead time 60Electrical services tender, evaluation & lead time 60Hydraulic services tender, evaluation & lead time 60ACMV services tender, evaluation & lead time 60Fire services tender, evaluation & lead time 60Lift services tender, evaluation & lead time 60

External works tender, eval & lead time

Electrical services tender, evaluation & lead time

Hydraulic services tender, evaluation & lead timeACMV services tender, evaluation & lead timeFire services tender, evaluation & lead timeLift services tender, evaluation & lead time

Structural steel tender, eval & lead time

Tiling tender, eval & lead time

Toilet partitions tender, eval & lead time

Procurement

Piling tender, evaluation & lead timePile caps tender, eval & lead time

Brick, plaster & tiling tender, eval & lead timeRC structure tender, evaluation & lead time

Misc metalwork tender, eval & lead time

Aluminium & windows tender, eval & lead timeDoor, frames & hardware tender, eval & lead time

Painting tender, eval & lead time

Floor finishes tender, eval & lead time

Roller shutter tender, eval & lead time

Roofing & wall cladding tender, eval & lead time


1.1.3 SUPERVISION & MANPOWER SCHEDULE

As part of the review of the project cost, it is important to identify the Supervision andManpower required from Lend Lease’s viewpoint, as well as to determine likelysubcontractor resources. This helps to allow planning of site establishment, and operationalconcerns.

The Supervision and Manpower Schedule shall form part of the Preliminaries & SupervisionBuildup for the project. This is covered in the Operations Manual – ConstructionManagement.

1.2 COST - BudgetPreparation

1.2.1 Design Authorization(DA)

1.2.2 Estimate

Asia Projects Operations Manual - Issue 1 / 1.2 - Cost - Budg et PreparationDesign ManagementRevision 2, 28/10/98

Cost - Budget Preparation

1.2.1 DESIGN AUTHORISATION

Prior to any works commencing on a project, a Design Authorization must be completedby the Project Manager Concept and signed off by the Operations Manager.

The Design Authorization is the responsibility of the Project Manager Concept , andmust be completed within 48 hours of the Strategy Review.

It identifies real costs of carrying out a submission / design, and must be completedirrespective of whether there are no anticipated charges allocated to that works. That is,even if Lend Lease resources are already costed to a particular project, or if design ofservices etc is done on a free service basis, the real cost must be identified and signed offby the respective Limits of Authority.

The Design Authorization form is attached, and is self explanatory.

Items to consider

• Time taken by internal resources (CAD, PM, perspective, Structural design, Estimators,Ops Mgr) and their relevant charge out rates

• Printing costs for documents (perspectives etc)

• Soils Investigation costs

• Are there any external consultants involved due to local considerations (localsubmissions, drafting services etc)

• Ancillary charges that may be relevant (eg airfares of people)


DESIGN AUTHORISATION

DA Type ❏ Initial ❏ Variation ❏ Budget Transfer DA NO

Project No. Design Stage ❏ Pre-Contract ❏ Post-Contract

Project Name

Project Descrip.

Client Name

Client Address

Project Timing Submission by / / Est. Start Est. Compl.

Fee Type Previously Authorised Budget $

❏ Free Service This Request $ ________

❏ Fixed Lump Sum New Budget $

❏ At Cost to Max. of Fee Less: Fees from Client $ ________

❏ Others (Specify) FREE SERVICE/PROFIT $ ________

AUTHORISATION

Project Manager Concept / / Marketing Manager / /

Operations Manager / /

Allocation Description Current This New ConsultantBudget Authority Budget

701 Project Management702 Cost Plan & Estimation821 Architectural822 Structural823 Mechanical & Electrical824 Checker825 Hydraulics826 Quantity Surveying827 Process Design831 Soil Investigation832 Surveying833 PM Travel & Expenses834 Printing

TOTAL

Prepared By: ________________________________ Date : / /

Asia Projects Operations Manual - Issue 1 / Design A uthorisationDesign ManagementRevision 0, 01/07/98


1.2.2 ESTIMATE (CONTRACT PRICE)

The estimate is a detailed break-up of the contract price. It lists what part of the contractprice will be allocated to trades, design, preliminaries, supervision, contingencies, margin,etc.

The contract price estimate is only one stage of the cost planning process (see section2.3.2) and is the cost applicable and matching to all other contract documents, at the timeof contract price submission.

All estimates are prepared within predefined project parameters such as elements, levels,buildings or any such parameter required for reporting and analysis. Lend Lease usesEVEREST propriety software for measurement, pricing and analysis.

Prior to the Contract Price Review (refer section 1.4.4), it is mandatory that an InterimPrice Review be held between the Estimator , the Project Manager and Reviewing Manager(usually the Estimating Manager or Operations Manager). The purpose of this review ischeck the scope logic, rationale, correctness and pricing of the estimate. A proforma isattached.

The contract price estimate should include (as a minimum) :

• EVEREST take-off sheets• Preliminaries Supervision detailed estimate (Refer attached)• Design Fee Estimate (Refer Section 1.3.5)• Contract Price Estimate front sheet (Refer Contract Price Review Appendix 3)• Subcontractor analysis sheets (Refer Contract Price Review Appendix 2)

Asia Projects Operations Manual - Issue 1 / 1.2.2 EstimateDesign ManagementRevision 2, 28/10/98


ESTIMATING REVIEW SHEETS

CLIENT : PROJECT : BRANCH :Date : Place : Estimator : Reviewer :Type of Estimate : Project Mgr :Contract Type : (describe)Built Area this scheme :Value :Duration Nett wks Delay wks Gross wksInformation Available (describe) • Client Spec • Drawings • Soil Reports etcSite visit by Estimator Yes / NoExtent of Review :Adjacent PropertiesAdjacent ServicesTopography etcExtent of Sub-contract Cover Comments on S/C cover

Prelims & Super (Build-up) Yes / No $ %Contingency (Build-up) Yes / No $ %Overhead Yes / No $ %Margin Yes / No $ %Escalation Yes / No $ %Site Allowance (Build-up) Yes / No $ %Design (Build-up) Yes / No $ %Liquidated Damaged (describe) Yes / No $ % TOTAL $ %Use of Computer Systems and set up Yes / NoHas the Estimator taken the PM Yes / Nothrough the estimateSubmission reviewed by Estimator Yes / NoElemental Analysis attached Yes / NoComments, Risks and Opport’s Yes / No ActionQS certification Yes / No

Estimator’s Comments : Reviewer’s Comments :

Estimate Summary Yes / No(and other Schedule) attachedEstimator : Reviewer :

Definition of Built Area : Area of all covered building floor area, including covered carparks and ancilliary coveredbuilding areas.

Asia Projects Operations Manual - Issue 1 / 1.2.2 EstimateDesign ManagementRevision 2, 28/10/98


PRELIMS & SUPERVISION ESTIMATE Project Name: Issue: Date:

Code Item and detail Unit Quantity Rate Extension Total per cost code

PR0211 General Fees 0Local authority Item 0 0 0

PR0212 Insurance 0Contractor’s All Risk % of Cont Sum 0 0.000 0Public Liability % of Cont Sum 0 0 0Claims under excess Item 0 0 0

PR0213 Bank Guarantees 0Advance Payment months 0 0.000 0

$ % of AP amt /mthPerformance Bond months 0 0.000 0

$ % of PB amt /mthRetention months 0 0.000 0

$ % of Ret /mthWarranty (Defects Liability) months 0 0.000 0

$ % of DL amt /mth

PR0214 Legal Fees 0Stamp Duty % of Cont Sum 0 0.000 0External Legal advice item 0 0LL Asia legal advice item 0 0

PR0216 Surveying 0Initial Survey and site control Item 0 0 0Progressive checks number 0 0 0Final Check & certificate Item 0 0 0Survey Equipment - theodolite Item 0 0 0Survey Equipment - level, staff Item 0 0 0Consumables (Pegs, brackets, etc) Item 0 0 0Residual on survey equipment Item 0 0 0

PR0220 Furniture & Equipment 0Desks & Chairs number 0 0 0Filing Shelves / Lockers number 0 0 0Filing Cabinets number 0 0 0Noticeboards number 0 0 0Pinup Boards number 0 0 0Conference Room Furniture number 0 0 0Staff Kitchen Furniture number 0 0 0Computers number 0 0 0Printers number 0 0 0Photocopier number 0 0 0Facsimile number 0 0 0Microwave number 0 0 0Refrigerator number 0 0 0Water Coolers number 0 0 0Sundry Items number 0 0 0Residual upon project completion number 0 0 0Maintenance / service of equip’t number 0 0 0

PR0224 Site Office 0Office Establishment m2 0 0 0Office Rental / Construction Item 0 0 0Conference room (6 x 3m) m2 0 0 0Office Demobilisation Item 0 0 0Staff Toilet m2 0 0 0Worker toilet for site m2 0 0 0Labour Camp number 0 0 0Labour Camp ablutions Item 0 0 0Crane Hire for Office setup/demob Item 0 0 0Airconditioners for office number 0 0 0Storage containers number 0 0 0Shade areas for carparking Item 0Residual value of site office Item 0

Asia Projects Operations Manual - Issue 1 / P&S EstimateDesign ManagementRevision 2, 28/10/98



Code Item and detail Unit Quantity Rate Extension Total per cost codePR0230 Signboards 0

Project Signboard Item 0 0 0Safety and directional Signs number 0 0 0

PR0232 Fencing / Hoardings 0Site fencing m 0 0 0Overhead Protective hoardings m2 0 0 0Gatehouse and barricades Item 0 0 0Fences to offices / stores m 0 0 0

PR0234 Make Good to Existing Roads /Pavements 0Cleaning Roads Item 0 0 0Repair Surface / Drains / Pavements Item 0 0 0

PR0240 Site Communication 0Radios number 0 0 0PA System number 0 0 0

PR0242 Temporary Plumbing and Drainage 0Temporary water connection number 0 0 0Trucked water number 0 0 0Deep well number 0 0 0Water Consumption months 0 0 0Water Tank and stand Item 0 0 0Water distribution Item 0 0 0Septic tank for site office Item 0 0 0Septic tank for Labour Camp Item 0 0 0Temporary drainage to site Item 0 0 0Removal / filling tanks Item 0 0 0Pumps number 0 0 0

PR0244 Temporary Electrical Installation and Charges 0Transformer Rental months 0 0 0Bond for transformer Item 0 0 0Bond for electrical consumption Item 0 0 0Pole set for transformer Item 0 0 0Incoming High / medium voltage Item 0 0 0Main Distribution Board Item 0 0 0Secondary DB’s number 0 0 0Labour Camp Distribution number 0 0 0Site Office Wiring Item 0 0 0Distribution Cabling Item 0 0 0Flexible Cables / junctions number 0 0 0

Lights number 0 0 0Diesel Generators number 0 0 0Fuel for generators months 0 0 0Consumption for site Item 0 0 0Consumption for camp Item 0 0 0Recovery from subcontractors Item 0 0 0Residual value of installation Item 0 0 0

PR0246 Temporary Telephone system and charges 0PABX Item 0 0 0Line Rental / Installation number 0 0 0Telephone handsets number 0 0 0Mobile Phones number 0 0 0International call charges months 0 0 0Local & Upcountry calls months 0 0 0

PR0248 Security 0Security guards for gate months 0 0 0Security guards for site months 0 0 0Nightlighting Item 0 0 0ID Cards number 0 0 0




Code Item and detail Unit Quantity Rate Extension Total per cost codePR0260 Sundry Operating Supplies 0

Drinking water for office months 0 0 0Rubbish Bins months 0 0 0Bin Liners months 0 0 0Toilet Paper months 0 0 0Disinfectants etc months 0 0 0Brooms / Mops etc months 0 0 0General Items months 0 0 0

PR0270 Freight and Transport 0Pick up hire months 0 0 0

PR0282 Rubbish Removal and Cleaning 0Rubbish enclosure Item 0 0 0Regular Rubbish removal months 0 0 0Final Site Cleanup / removal Item 0 0 0

PR0284 Personal Protective Equipment 0Helmets number 0 0 0Boots number 0 0 0Harness number 0 0 0Other number 0 0 0

PR0286 Safety 0First Aid Kit / Supplies number 0 0 0Ladders number 0 0 0Overhead screens number 0 0 0Handrails number 0 0 0Induction package number 0 0 0Safety Officer visits number 0 0 0

PR0288 Sundry Expenses 0Photographs months 0 0 0Plan Printing months 0 0 0Stationery months 0 0 0Computer consumables months 0 0 0Entertainment months 0 0 0Expressway tolls months 0 0 0Petty Cash months 0 0 0

PR0289 Maintenance Allowance 0% of Cont Sum 0 0.0000 0

PR0290 ScaffoldingBy Subcontractors

SL0110 Direct Labour 0Maid for site office months 0 0 0Cleaners in camp months 0 0 0Safety Crew months 0 0 0General Labour months 0 0 0

SL0120 Staff and supervision 0Project Manager Delivery months 0 0 0Project Engineer months 0 0 0Supervisor months 0 0 0Site Clerk months 0 0 0

TOTAL 0


1.3 ADMIN/QUALITY- Documentation

1.3.1 Client Brief

1.3.2 Design Criteria/ClientSpecification

1.3.3 Submission

1.3.4 Submission Drawings

1.3.5 Design Fee Estimate

1.3.6 ProjectCorrespondence

Asia Projects Operations Manual - Issue 1 / 1.3 - Admin / Quality - DocumentationDesign ManagementRevision 2, 28/10/98

Admin / Quality - Documentation

1.3.1 CLIENT BRIEF

The Client’s Brief is a document that defines Client’s expectation. It must be a writtenstatement which should ideally originate from the Client. Otherwise, it must be developedby the Project Manager Concept through interaction with the Client, whether that be viameetings, inspections of like facilities, or other avenues.

Eventually, this document must be signed off by the Client. The client’s acceptance of theproject brief should be by letter or as a minimum recorded in minutes of client meetings.If the client acceptance is in meeting minutes format, the Project Manager Concept mustissue a confirmation letter to the client referencing the minutes of the meeting.

A Client’s Brief should contain the following :

• Client• Client’s business• Image that the Client is trying to project• Organizational structure of the Client• Financial structure of the Client• Key personnel responsible for the Project and their profile• Client’s culture relating to safety, quality, environment, Industrial relations, etc.

• Project characteristics• Current position of the project (feasibility, budget price, involvement of external QS

/ architect)• Project expansion requirements• Bench-marking against any existing facility• Time frame for completing the project• Profile of tenants / occupants of the project

• Managing the Project• Sources of information• Mode of transmitting and receiving information to and from the Client• Identify the risks and formulate strategy to manage these• Roles & responsibilities of nominated representative• External parties influencing Client’s decision• Contractual expectations• Issues related to the site

A list of client issues is attached which should be reviewed prior to visiting a client. It is notexhaustive, but gives a good indication of issues which should be addressed as part ofthe brief formulation.

Finally, we have attached a copy of a client brief done some four years ago, but whichcaptures the intent of the client brief quite well.

The Project Manager Concept is responsible for issuing the Client’s Brief to all concernedtogether with a program for the preparation of the submission document (refer section1.1.1). The basis of this design brief forms the starting point for the Strategy Review held(refer section 1.4.1)


CLIENT ISSUES LIST (Index)

Design Basis Council1 Type of Industry 34 Zoning2 Production Process 35 Building Alignments3 Space Requirements 36 Easements4 Area Proximities 37 Required parking5 Future Expansion 38 Construction6 Administrative Procedures 39 Stormwater7 Security 40 Site Details8 Signs 41 Plot ratio9 Site Details 42 Flooding

10 Existing Building Details 43 Operating Hours11 Associated Companies

Factory Details Fire Chief12 Materials 44 Hydrants13 Truck Docks 45 Sprinklers14 Equipment 46 Extinguishers15 Loads 47 Doors16 Hoists 48 Inflammable and Explosives Goods17 Ventilation18 Natural Lighting19 Protection20 Employees’ Entrance

Office Details21 Offices22 Materials23 Ventilation24 Access to Factory

Amenities Details25 Employees26 Canteen27 Furniture28 First Aid

Services29 Electricity30 Plumbing

External Works31 Roads32 Landscaping33 Construction

Asia Projects Operations Manual - Issue 1 / 1.3.1 - Client Brief QuestionsDesign ManagementRevision 2, 28/10/98


DESIGN BASIS

NOTE: Strike out questions irrelevant to this project

Item Questions Alternatives Answer1 Industry

a. Type of Industryb. Productc. Awards governing Employeesd. Raw Materials usede. Hours of Operation

2 Production Processa. Type Process flow

Product flowb. Means of Delivery Truck

Semi TrailerTrain

c. Delivery Timesd. Means of dispatch Forklifte. Internal material Transport Conveyor

Trolleyf. Equipment Size of machines

Weight of machines3 Space Requirements

a. Production List separate areasb. Storage Raw materials

During productionPacking materialsFinished ProductCold RoomsExplosive StoreInflammable StoreOutdoor Bulk StoreOutdoor RackUnderground Tanks

c. Warehouse ProductAisles (ASRS, VNA)Loading Areas

d. Ceiling Heights FactoryWarehouseOffice

e. Ancillary Areas Plant RoomBoiler HouseGarageGate HouseSub-StationWeigh BridgeDrawing OfficeLaboratory

f. Parking Staff(see also council requirements) Employees

Clients4 Area Proximities

Fill in attached Proximity Chart



Item Questions Alternatives Answer5 Future Expansion

a. Factoryb. Warehousec. Plantd. Employeese. Parkingf. New Products

6 Administrative Proceduresa. Intercomb. Public Addressc. Telephones Switch

Floor GridDucted Skirting

7 Securitya. Theft Alarm

Fencesb. Fire SprinklerHydrants

8 Signsa. Location Office

FactoryFree Standing

9 Site Detailsa. Survey Attach plan showing

Dimension, levels location,easements existing buildings

b. Zoningc. Covenantsd. Site restrictions Buildings

TreesPipelinesPower cables

e. Off Site Obstructions Bus Stopsf. Soil Report (attach report)g. Bearing Pressure Load

at depth ofh. Water Main Location / Sizei. Sewer main Location / Sizej. Stormwater Main Location / Sizek. Gas Main Location / Size

10 Existing Building Detailsa. Existing Plan Attach relevant plans

of existing buildingb. Floor to floor height Factory

Officec. Floor to ceiling height Factory

Officed. Existing Amenities Dining

ToiletsLockersWash RoomsShowers

11 Associated CompaniesList building materials supplied by associated companies



FACTORY DETAILS

12 Materialsa. Floor Concrete/ Timberb. Finish Wood Float

Power FloatVinyl / Tiles / carpet

c. Walls(subject to Council RC concrete approval) Plasterboard

BrickConcrete BlockRibbed metal (trimdeck)

d. Wall Finishe. Ceiling and Heightf. Roofg. Windowsh. Doorsi. Dust proofingj. Gutters and downpipes

13 Truck Docksa. Numbersb. Locationc. Sized. Type Truckse. Dock Heightf. Door Heightg. Awning

14 Equipmentsa. Access Doorsb. Separate Footingsc. Floor Ductsd. Floor Wastese. Tanksf. Petrol Bowserg. Incinerator i) size ii) materials to be burnt

15 Loadsa. Floor Distributed Point loads / UDLb. Trusses Monorails

Point LoadsHoistsMachinery

16 Hoistsa. Lifts / Hoists Size

LocationType

b. Monorails LocationHeightLoad

c. Fixed Cranes LocationHeightLoad

Item Questions Alternatives Answer



Item Questions Alternatives Answer17 Ventilation

a. Natural WindowsRidge VentSaw Tooth Glazing

b. Air Conditioning18 Natural Lighting

(for artificial lighting see item 27.c)a. Windowb. Roof Fibreglass Sheets

Saw Tooth Glazing19 Protection

a. Against bumpingb. Steamc. Acid Attackd. Theft See Item 7.a.e. Fire See Item 7.b.f. Smoke Vents (for insurancepremium)g. Soundproofing Nominate areash. Heat Insulation Roof

20 Employees’ Entrancea. Location



OFFICE DETAILS

21 Offices(give size or area required)ManagerCompany SecretaryAccountantChief EngineerSales ManagerGeneral OfficeAccounts MachinesBoard RoomStrong RoomRecords RoomLunch Room

22 Materialsa. Floor Concrete

Timberb. Floor Finishc. Wallsd. Wall Finishe. Partitionsf. Ceilingg. Roofh. WindowI. Skirting see Item 6.c.

23 Ventilationa. Naturalb. Air Conditioningc. Mechanical

24 Access To Factorya. Desirability Essential

DesiredNot Critical

b. Observation Factory AreasDocksEntry




AMENITIES DETAILS

25 Employeesa. Factory Male

Femaleb. Warehouse Male

Femalec. Office Male

Female26 Canteen

Type Service Hot MealsTea ServiceLunch RoomTuck Shop

27 Furniturea. Lockerb. Seatsc. Dining Tablesd. Dining Chairse. Food Warmerf. Hot Water Urns

28 First Aida. Resident Nurseb. First Aid Room




SERVICES

29 Electricitya. Clocks Number

Locationb. SSO’s Locationc. Light Intensities Factory

Officed. Burglar Alarm See item 7.a.e. Public Address See item 6.a & 6.bf. Telephones See item 6.cg. Fire Alarm See item 7.c.h. Smoke Detectors See item 7.c.

30 Plumbinga. Sewer Disposal Sewer (see also item 9.i)

Septic Tankb. Stormwater Disposal See item 9.jc. Water Supply See item 9.hd. Trade Wastese. Floor Wastes Location(see also item 4.d)

Sizef. Drinking Points Bubler

Water Coolerg. Incinerators (sanitary)




EXTERNAL WORKS

31 Roadsa. Widthb. Material Concrete

BitumenGravel

c. Kerbsd. Entries from Streets Number

LocationWidth

32 Landscapinga. Lawnsb. Treesc. Gardensd. Surplus Soil Disposal On Site

Off Sitee. Extra Fill On Site

Off Sitef. Wash-down areas

33 Constructiona. Temporary telephoneb. Temporary toiletsc. Temporary powerd. Access to Site




BUILDING AUTHORITY

34 Zoning35 Building Alignments / Setbacks

a. Frontb. Sidec. Rear

36 Easementsa. Stormwaterb. Road Wideningc. Sewerd. Electricitye. Covenants

37 Required Parkinga. Factoryb. Warehousec. Officed. Customer parking in front of Yes/No building alignment

38 Constructiona. Walls External / Internalb. Roofc. Columns External

Internald. Ceilingse. Parapetsf. Sprinklering of ceiling space

39 StormwaterDisposal To mains / to street

40 Site Detailsa. Site Planb. Soil conditions

41 Plot Ratio42 Flooding43 Allowable Operating Hours




FIRE AUTHORITY

44 HydrantsMaximum spacingLocation

45 Sprinklersa. Factoryb. Warehousec. Officed. Ceiling Space Minimum depth

See also item 36.f46 Extinguishers

a. Soda Acid Locationb. Foamc. Co2

47 DoorsMaximum Distance

48 Inflammable and Explosive Goods(See item 3.b for Types of materials)Note: Special Treatment required



Example of Client Brief



1.3.2 DESIGN CRITERIA / CLIENT SPECIFICATION

From the Client's Brief, the Project Manager shall develop the design criteria which mustcontain the information as noted below with regard to specific criteria.

In general, the Client specification shall comprise the design criteria and a set of particularspecifications for the project supplemented by the relevant standard trade specificationson materials and workmanship. The Project Manager shall be responsible for thepreparation of the particular specifications.

Note also the following key issues which need to be addressed when preparing the criteriaand the Client Specifications.

Design Criteria

• Schedule of required building areas• Constraints on design arising from authorities, adjoining plots, latent conditions of site• Modes and duration of Operations• Schedule of floor loading, including clear floor heights• Schedule of external finishes including composition of external works• Schedule of internal finishes• Electrical power requirements (including future requirements, incoming power (by who

and what type (LT / HT)), illumination levels of various areas, external lighting, powerfor client’s use (eg machine power)

• Voice and data communication requirements• Specific plumbing and sanitary requirements (including type and brands of fittings /

pipes)• Process water requirements• Requirements for the discharge of production waste and effluents• Air-conditioning and mechanical ventilation requirements (humidity control / temperature

control / air changes per hour / flow rates)• Fire protection requirements (type of system, design to which authorities requirements

(local, ASTN, FM etc))• Characteristics of raw materials used in the production and the final product• Materials & people transportation (lifts / dock levellers / cranes / hoists)

Specifications

• Are specifications relevant• Have specifications been reviewed for consistency.• Do specifications set standards that are not necessarily asked by the client (eg floor

tolerances / standard of paint finishing to steel etc)

Note that Lend lease Asia specifications available out of the Singapore office are to beused as a guide to client specs. These are available for all structural, services and finishesworks.


1.3.3 SUBMISSION

Following the Strategy Review meeting, the Project Manager Concept shall be responsibleto compile a document which states quite clearly.

• What level of documentation is required for the submission• Who is responsible for preparing the documentation• Who is responsible for reviewing the documentation• What time frame is involved (preparation / review / final adjustment)

The result is the Submission planning schedule as noted in section 1.1.1

As a guide, the following items shall usually be required for a submission

• Letter of Offer• Description of the Project and the Site• The Profile of the Client• Performance Brief• General Specifications• Programmes• Price Savings & Rate Schedules• Project Philosophy and Team• Project Controls• Lend Lease Overview / Company Resume• Drawings / Sections / Perspective• Proposed Form of Contract• A List of Exclusion items• Executive Summary

An example of a Submission is attached.

1.3.3.1 Letter of Offer

Letters of Offer or Proposals can take several forms : -

• Response to an invitation to quote or offer some form of service arising out ofopen tender, limited competition or direct discussions and negotiations;

• Indicative estimate submissions;• Budget price submission;• Contract price submission;• Variations;

The Project Manager Concept is responsible for :-

• Assessment of Client needs expressed orally or in tender documents,specifications, briefs etc;

• brief/management of persons, internal or external, undertaking work relevantto the above;

• the Letter of Offer of Proposal addressing the Client needs and the Companyrisk profile.


Letters of Offer/Proposals are binding (contractual) if accepted and must include: -

• confirmation of our understanding of the Client’s needs;• Scope of works and appropriate works documentations;• Any time / cost restraints ;• Delineation of major risks;• Roles and responsibilities;• Any qualifications / assumptions / specific exclusions;• Fee structure / contractual fee basis including commercial conditions and surety

of payment provisions to protect the Company (i.e. payment up front, bankguarantee, property / asset lien);

• Contract terms or be conditional upon finalisation of contract conditions/payment terms;

• Validity period of the offer.

Letters of Offer or Proposals must also :-

• Contain no misleading information relating to services being offered.• Be reviewed by the Operations Manager for legal ramifications of the offer;• Have Operations Manager / other approval per Limits of Authority prior to

issue;• Be signed by the person most appropriate in terms of the Conversion Strategy.

If not the approving authority, evidence of approval to submit must be filed.

Example of Client Submission


July 16, 1997

Mr. Gordon S. BennettGeneral ManagerPBR Automotive (Malaysia) Sdn. Bhd.No. 17, Persiaran Sabak Bernam,Seksyen 26, 40000 Shah Alam,Selangor Darul Ehsan,Malaysia

Dear Mr. Gordon,

Re : Proposed Man ufacturing F acility , Thailand

On behalf of Lend Lease (Thailand) Ltd, I wish to submit our lump sum proposals for thedevelopment of PBR Automotive’s New Brake Caliper Manufacturing Facility at Eastern SeaboardIndustrial Estate Rayong, Thailand. Lend Lease’s submission is contained in two volumes with thisletter, as follows:

• Volume 1 - Design and Construct Proposal.

• Volume 2 - Drawings.

The major features of our proposals which we believe will be of benefit to PBR Automotive include:

A. Competitive - Lump Sum Price

Lend Lease has assigned an experienced team to Project Manage the design and constructionof the new manufacturing facility on a fixed lump sum basis for all the costs of the agreedspecification. Lend Lease has undertaken extensive value engineering to develop a baseoffer for consideration.

Page 1

PBR-a-01-pbr Itr4 01/15/00

PBR Automotive Project

Lend Lease offers to Project Manager, Design and Construct the new manufacturingfacility for a base amount of forty-eight million one hundred and sixty thousand Baht (B48,160,000) excluding V.A.T.

B. Detailed Construction Planning

Lend Lease has completed extensive construction planning to ensure contract datesare met. These undertakings are backed up by contractual responsibility and liquidateddamages. The overall programme is attached. If an instruction to proceed is received by 31st

July 1997, the building works will be practically complete by 30th April 1998. Lend Lease willtarget to complete the project ahead of these dates, to keep the project on schedule.

C. Capable Deliver y of Quality Pr ojects

Lend Lease has extensive experience in the “turn-key” design and construction ofcomplex industrial plants for international clients in South East Asia. In each of the $U.S. 5.0billion of industrial projects Lend Lease has developed the time, cost and quality of thecompleted “turn-key” project was underwritten by Lend Lease corporation and its AA + CreditRating.

In the attachments to Volume 1 we have included written references from recent projectsin Thailand from Kellogg’s, Thai Dairy Industry Co., Ltd. and Sun Valley Thailand supportingour ability to design and construct industrial projects which include process services installationand equipment relocation, to good quality standards and within programme schedules inThailand.

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PBR-a-01-pbr Itr4 01/15/00

PBR Automotive Project

D. Experience at the ESIE

Lend Lease Thailand have recently successfully completed a turnkey industrial projectfor Kellogg’s at the Eastern Seaboard Industrial Estate Rayong.

As a result of this previous experience at the Eastern Seaboard Industrial Estate, LendLease Thailand now has extensive knowledge of local suppliers, subcontractors, authoritiesand estate managers. The establishment of these relationships will facilitate the smoothdelivery of the manufacturing facility to PBR Automotive.

Our primary contact for questions concerning our submission is Mr. Michael Anderson on 2539124, Fax 253 9165 or Home 671 1250.

On behalf of Lend Lease I would like to thank PBR Automotive for the opportunity of submitting thisproposal for the new manufacturing facility and we look forward to working closely with your teamon this development.

Yours faithfully,LEND LEASE (THAILAND) LIMITED

John ImrieManaging Director

JI/ai

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PBR-a-01-pbr Itr4 01/15/00

PBR AUTOMOTIVE (THAILAND) LTD.

Page 1

Design and ConstructionProposal

“New Brake CaliperManufacturing Facility atEastern SeaboardIndustrial Estate”

July, 1997


Page 2

Table of Contents

➧ 1. Introduction

➧ 2. Key Project Issues

➧ 3. Proposal

➧ 4. Achieving the Programme

➧ 5. Experience & Capability

➧ 6. Scope of Works & Specification

➧ 7. Safety Plan

➧ 8. Quality Assurance

Appendices

➧ A. Client References and Case Studies


Page 3

1INTRODUCTION This submission is made in response to PBR’s invitation to

prepare a design and construction proposal for a newmanufacturing in a brief issued on 20 June 1997.

In overview the project is as follows :-

Project : Light manufacturing facility for PBR AutomotiveThailand Co., Ltd.

Location : Lot S-29F at Eastern Seaboard Industrial Estate,Rayong, Thailand.

Lend Lease Thailand, a subsidiary of Lend Lease Asia PteLtd., is pleased to provide a detailed design and constructionproposal for PBR’s consideration. This is detailed in Section 3.

Lend Lease is an international corporation with operations inAustralia, Europe, Asia and the U.S. It has a AA+ credit ratingand 30 years of project management experience in South EastAsia. Details of Lend Lease’s experience and capability todeliver an offer of this nature are included in Section 5 andAppendix A.


Page 4

2KEY PROJECT ISSUES L end Lease believes that the key project issues are :-

◆ Project - to provide PBR with a Developmentcompleted manufacturingfacility, without risk for time,cost and quality.

◆ End User - strong and managedDesign interaction between theInvolvement project delivery team and

PBR operational staff toensure an efficient, qualityfacility.

◆ Programme - fast track project delivery toensure occupancy by mid of 1998

- overlap of equipment installationwith building works, to allowearly operationalcommencement.

Lend Lease has both a demonstrable track record and the localexpertise required to successfully deal with each of theseissues.

The specific approach Lend Lease is proposing to address eachof these key project issues is outlined in the following section.


Page 5

3PROPOSAL In order to address the key issues of this project Lend Lease

propose the following :-

◆ Project De velopment

Lend Lease is prepared to deliver a turnkey facility for a lumpsum referred to in our attached letter. This offer is guaranteedby Lend Lease for the time, cost and quality of the project inThailand.

This lump sum offer is based on the concept drawings and thescope of work and specification contained in this offer.

◆ Programme

The fastest delivery is achieved by over lapping the design andconstruction stages.

Fast track design and construction is one of the core skills ofLend Lease Thailand and has now been used successfully on11 industrial projects in Thailand over the past three years.

The key to the fast track approach is having an early resolutionof the concept design and the commitment of both experienceddesigners and site supervisors who are familiar with this methodof delivery. Over the last 3-4 years Lend Lease Thailand hasdeveloped a strong internal team of project managers andrelationships with expert designers who can deliver fast trackprojects to a very high quality standard.

Our indicative planning for this project has been based onachieved duration’s for similar works and indicates acommencement of equipment installation in April 1998.


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◆ End User Design In volvement

It has been Lend Lease’s experience that quality industrialbuildings are a result of both detailed consideration of therequired functions and interaction between designers and theend users. This essential interaction needs to be carefullymanaged to ensure that the design proceeds in a logical, timelymanner and to ensure that costs are controlled.

Lend Lease has developed several tools to both encourageand manage this process. These are :

• Needs Brief Assessment for Industrial Facilities• Design Brief & Programme• Weekly Design meeting format• External Expert Review of Design• Client Design Review and Approval• Project Control Group

All of the above tools would be expected to be used on thePBR Automotive project. We would welcome a discussion onthese procedures and their particular relevance to your project.


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4ACHIEVING THEPROGRAMME

◆ The key elements to achieving the programme will be-• A competent fast track design team.• An understanding of authority requirements.• An experienced site management team.

◆ Design Team

Lend Lease Thailand has assembled and pre-committed to adesign team that has reviewed the PBR Automotivedocumentation and held several design reviews of the project.These designers are experienced in fast track Design andConstruction and are now generally familar with PBR’srequirements.

The Lend Lease design team comprises the followingpersonnel,:

Michael Anderson LLT Project ManagerKiattiachai Wattanapanyachon

LLT Senior Design Engineer

The Consultant design team comprises the following:

Architect

C2 Callahan Corogin Studio Ltd.Bill Callahan.

Structural Design Concept

Stigter Clarey & PartnersJohn Stigter

◆ Authority Requirements

Lend Lease Thailand is very familiar with the authoritiesassociated with projects of this nature and from whom approvalsmust be sought including:-

• Industrial Estate Authority of Thailand (IEAT)• Provincial Electricity Authority (PEA)• Telephone Organisation of Thailand (TOT)• Eastern Seaboard Industrial Estate (ESIE)


The timing of the major submissions and duration of approvalsare indicated on the overall programme. The approval durationsidentified are from Lend Lease’s experience in Thailand andshould they be exceeded would require review of theprogramme. Lend Lease is committed to managing andexpediting the submission and application processes for eachauthority, utilising the skills of their local and expatriate staff.

The main submissions and approvals on the project are:-• IEAT form 1 - Application for Land Usage• IEAT form 2 - Permit for Land Usage• IEAT form 3 - Application for Construction Permit• IEAT form 4 - Construction Permit• IEAT form 5 - Application to Operate• IEAT form 6 - Occupancy and Operation• Application for Permanent Power from PEA.

◆ Site Mana gement

The Site team selected for this project is a mix of experiencedThai and Expatriate engineers and supervisors. The details ofthis team are included in Section 5.

Construction will commence as design is progressivelydeveloped towards Approved for Construction (AFC) status.This will happen progressively over a 12-14 week period asthe documentation is developed in more detail. The ClientDesign Meetings to review and approve design will be continuedduring this phase, with the frequency being tailored to suit theneed.

Site works are programmed at three levels :-- overall- monthly- weekly

Each programme is constantly monitored by the site supervisorsand is used for managing and co-ordinating betweensubcontractors.

◆ The overview project programme is attached to our letterof offer and shows the anticipated date of contract awardand the authority, design and construction activities.

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Page 9

L end Lease Thailand is a wholly-owned subsidiary of LendLease Corporation. Lend Lease Corporation is a global

property and financial services Company with operations inEurope, North America, Asia and Australia.

Lend Lease Corporation has a AA+ credit rating from Standardand Poors and all of Lend Lease’s offices are supported byand warranted by Lend Lease Corporation. Lend LeaseThailand pays all its suppliers on a 30 day basis to ensuregood performance and quality of construction.

◆ Lend Lease De velopment Exper tise

Lend Lease has extensive experience in developing industrialparks/ estates throughout Asia and Australia. Currently LendLease’s major Industrial developments include:

• Admiralty Industrial Park - Industrial and commercialdevelopment in Singapore to a value of $AUD 300 Million.

• Talad Thai - Industrial, commercial and residentialdevelopment around S.E. Asia’s largest wholesaleagriculture products distribution center in Bangkok. Jointventure with Modern Homes to a value of $AUD 1 Bn.

• Cempaka Business Park and residential project - Jointventure with Sinar Mas group in Jakarta.

• Distribution centre in Pangu District, China- Joint venturewith Li Fung and Mitisubishi.

◆ In addition to the above Lend Lease has committed $AUD500 Million for development projects in Asia in the nexttwo years and also established (APIC) a FundsInvestment Management company for institutions to investin projects in Asia for a value of $AUD 500 Million.

◆ Lend Lease’ s Industrial Exper tise

Lend Lease has undertaken over 500 “turn-key” industrialprojects in Asia and Australia, with a total value in excess ofUS$ 4.0 billion. In the majority of these projects Lend Leasehas been responsible for the following project elements on a“lump-sum” turn-key basis.

5EXPERIENCE ANDCAPABILITY


- Site filling and piling- Design and construction of building / building services /

external / civil works- Design and installation of process services- Co-ordination of installation of process equipment

On many projects Lend Lease has also prepared detailedprocess design for the installation of new and relocatedequipment on a lump sum basis. This turn-key service usesthe skills of Lend Lease Process Services outlined in a latersection of this submission.

The types of projects in which Lend Lease has offered its“turn-key” industrial services to international clients includes :

- Tank farms / Liquids Blending

Nissan Paint Mixing Facility, Uniliver, Thai Dairy,United Distilliers, Yakult, A.C.F., Lever & Kitchen.

- Computer Centers / Clean Rooms

Seagate Thailand, Maxtor Singapore, SGSThompson, Alcatel STC, IBM.

- Food / Beverage Plants

Pepsi (Serm-Suk) Thailand, Kraft Mars, Sun ValleyThailand, Kelloggs Thailand, Gardenia Thailand,Malaysia, Singapore, Cambells, Coca-Cola Amatil

- Pharmaceutical

Bayer Singapore, Cyanamid Faulding, Wellcome,Essex Laboratories.

In each of these projects Lend Lease has provided a “lump-sum” service for the total delivery of the project to internationalstandards.

Page 10


◆ Lend Lease Thailand Ltd.

Lend Lease’s focus in Thailand is the development of “turn-key” industrial projects for international clients. Lend Leasehas a staff of 10 expatriate and 20 Thai full-time professionalengineering staff, supported by site personnel and financialand administrative staff.

Our key clients in Thailand include :

- Thai Dairy Industries Ltd.- Serm Suk (Pepsi) Ltd.- Seagate Thailand- Kellogg’s Thailand- King Wai- Sun Valley Thailand - a division of Cargills- Thai Cathode Ray Tube- Inchcape Marketing Services- General Pacific Foods

All of these projects were “turn-key” design and constructionprojects to high standards of quality and fixed budgets.

Lend Lease also has established an office of Lend LeaseProcess Services in Thailand to support our industrial clients.

◆ Lend Lease Pr ocess Ser vices and Pr ocess Pr ojects

The key to the successful development of most industrialprojects is the design and construction of the process lines /equipment, and process services. The procurement andinstallation of process services and process equipment andthe integration with building and building services design, is aspecialized activity.

Lend Lease Process Services was established by Lend Leaseover 30 years ago with specialist design engineers andinstallation staff. This specialist group permits Lend Lease todesign and deliver complex industrial projects because of ourdetailed “in-house” technical knowledge.

Page 11


Lend Lease Process Services works very closely with our clientson a “team basis” to design, construct and wet or drycommission process services and process lines. This serviceis a “turn-key” risk taking delivery method, where Lend Leasewarrants the time, cost and quality of the installed systems.Lend Lease also integrates this with the development of building,building services and external works.

◆ Lend Lease Pr oject Mana gement Team

The attached project organization chart identifies the keypersonnel and their association with the project.

The design and construction of the new PBR Automotivefacilities will be the responsibility of our Project Manager Mr.Michael Anderson. Michael has over twenty years experiencein construction including three years in Thailand.

In addition, the Site Manager and Site Engineers for the projectare Thai nationals with experience working on previous projectsfor Lend Lease in Thailand.

Page 12


Page 13

PROJECT ORGANIZATION CHART

General ManagerAmnuay Apisakkul

Design ManagerPeter Coon

Project ManagerMichael Anderson

Sr. Design EngineerKiattichai

WattanapanyachonSite Supervisor

Design Consultants Subcontractors

Site ManagerTaworn

Korbenjawan

ConstructionManager

Barney Phillips


6SCOPE OF WORKSAND SPECIFICATION

Page 14

INDEX

● GENERAL SECTION NO. 1

● SITE SECTION NO. 2

● STRUCTURE SECTION NO. 3

● ARCHITECTURAL SECTION NO. 4

● HEATING AND VENTILATION SECTION NO. 5

● PLUMBING AND SECTION NO. 6 PROCESS PIPING

● ELECTRICAL SECTION NO. 7

● FIRE PROTECTION SECTION NO. 8

● SPECIAL EQUIPMENT SECTION NO. 9

● EXTERNAL WORKS SECTION NO. 10

● EXCLUSIONS SECTION NO. 11

PBR AUTOMOTIVE


Page 15

SECTION NO. 1

GENERAL

• Lend Lease Thailand have reviewed the PBR AutomotiveThailand specifications and have amended the buildingconcept layout and specifications to suit the site layout,local materials, local codes and building techniques thatare commonly used in Thailand.

• LOCATION : - Eastern Seaboard Industrial Estate(Rayong)

• OWNER : - PBR Automotive Thailand Co., Ltd.

• TYPE OF - Light Manufacturing facility BUILDING :

• SIZE OF BUILDING:

AREA SQ. Meters

Manufacturing 3000Office & canteen & amenities 900

TOTAL 3900 m2

• BAY SIZE13.3 m x 23 & 29 m6 meter min. clear height in factory to underside of rafter2.75 meter min. clear height in office


Page 16

• PLANT POPULATION

P.B.R Automotive (Thailand)

Plant Population 1 st Shift 2 nd Shift 3 rd ShiftStage : 1Hourly : 30 30 30Salaried : 12 4 3Stage : 2Hourly : + 20 = 50 + 20 = 50 + 20 = 50Salaried : + 6 = 18 + 2 = 6 + 2 = 5Stage 3 :Hourly : + 20 = 70 + 20 = 70 + 20 = 70Salaried : + 5 = 23 + 2 = 8 + 2 = 7

CombinedHourly : 210Salaried : 38

Note SPLIT TEMALE 40% Hourly - 50/50 M&FMALE 60% Salaried - 80/20 M&F

• The specification and scope is based on development ofplot S-39A which includes all infrastructure inside the siteand external works.


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SECTION NO. 2

SITE

• The proposed site is block S-39A at Eastern SeaboardIndustrial Estate (Rayong).

• The area of land is approximately 15 Rai and is filled toexisting levels.

• The utilities provided by the Estate consist of- 100 mm Potable water supply- Stormwater drainage- Waste water line- 22 KV transmission line.

• Geotechnical investigation has not been carried out atthis stage however we have assumed the ground bearingcapacity which is based on previous geotechnicalinvestigations on the Estate. Actual geotechnical testingto block S-39A would be carried out during the designprocess.

• The building will accommodate future expansion asindicated on the site plan.


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SECTION NO. 3

STRUCTURE

• The structure consists of the following- Steel columns- Steel rafters- Purlins and girts (to roof & walls)- Concrete slab suspended on concrete piles- Cantilevered blockwork and cladding on girts- Zincalume kliplok roof high profile

• Pad footings are allowed and the actual foundation typewill be determined on receipt of geotech surveyinformation.

• The utility load from the structural steel roof has beendetermined for loads from the pipework, cable trays andelectrical lights at 15 kg/ m2.

• Design of the structure is based on the following loads:

- Statie load of floor - 2.5t/ m2

- Dynamic load of floor - 3t/ m2

- Live load from roof structure - 30 kg/m2

- Utility and process load from roof structure - 15 kgm2

- Process loads are assumed to be supported by thefloor structure.

• Floor live loading of 25 kpa to the factory and 5 kpa tothe office and canteen slabs.

• Diethelm Concretin surface hardener to the slab in thefactory.

• The following out buildings have been included :-- Security guard house (one)

• No allowance has been made for process equipmentplinths, hobs or special footings for equipment loads.

• Ramp access for forklift to be provided with 200 x 200mm kerbs.


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SECTION NO. 4

ARCHITECTURAL

• Wall finishes - this will be a combination of blockworkrendered and painted. Wall finishes to the factory will becombination of blockwork and zincalume trimdek claddingon girts. The internal face is not lined (i.e. exposed wallgirts).

• Windows 1.4m high with tinted glass will be provided tooffice area. No windows to the factory walls elevationshave been included.

• Roof finishes - the roof will be BHP kliplock sheets with azincalume finish with sisalation. Translucent sheets willbe incorporated into the roof for natural lighting (5% ofarea).

• The manufacturing area has been assumed as an openarea and therefore no internal walls have been allowed.

• Factory area - greeen pigmented floor hardener (nonmetallie)

• Office area - the office area is to include one (1) trainingroom, one (1) conference room and five (5) partitionedoffices.

• The following finishes are to be provided to the officearea :-- Carpet to independent offices.- Vinyl tiles to remaining areas- Toilets to have wall and floor ceramic tiles- Lobby to have ceramic floor tiles

• Ceilings are T-bar grid with gypsum board to all areasexcept for canteen which has vinyl covered board andtoilets which have moisture resistant board.

• Toilets for the factory will be finished with ceramic tiles tothe floor and painted and rendered blockwork to the walls.Fixtures to include a mixture of Asian and Western toilets.

• Showers are included.


• The kitchen and canteen floor is to be ceramic tile.

• A medical room is to be provided in the office area witha separate sink hot water.

• Ladder access to the roof is provided.

• A two hour fire rated file vault room is contained in theoffice complex.

• Doors and hardware will be locally manufactured andto a quality suitable for the facility with masterkey facilityand hydraulic closers.

• Joinery and furniture is excluded as are lockers,cafeteria and office fitout.

Special doors

• Truck doors - Chain operated rollershutter doors

• Canteen door - Pedestrian door

• Emergency exits - Pedestrian door• Forklift access - Chain operated roller

shutter door (1)

Page 20


SECTION NO. 5

HEATING, VENTILATION AND AIR CONDITIONING

• The factory area is to be ventilated and exhausted viaroof extraction fans and wall louvres providing six (6) airchange.

• The office area and laboratory area to be air conditionedvia split type air conditioning units and exhaust fans.

• Design Condition

- Out side temperature 36oC DB, 28oC WB.- Loading estimate for

Office 18 m2/tonR- Fresh air 15 CFM/ Person- Design room temp. 24 + 2oC DB

• Toilets and lockers will be separately exhausted.

- Toilet 12 air change/ hour

• The canteen is open to outside air with six (6) 300 mmoscillating fans provided.

• Guard house is to be ventilated with one (1) 300mmoscillating fan.

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SECTION NO. 6

PLUMBING

Potable water

• Total 30 GPM for process and domestic use.

• Cold water will be supplied to the toilets and kitchen. Noother water points have been allowed for process use.

• Cold water supply will be galvanized steel pipe aboveground and high density polyethylene pipe (HDPE) class10 underground.

• There will be no hot water supply.

• As the Estate water supply is advised as being potablethere is no separate drinking water supply.

Sanitary

• Sanitary sewer piping shall be PVC class 8.5 belowground. The system will service the toilets/ showers/kitchen/canteen .

• Sewerage system meter not provided.

• Waste water treatment package units are included forsewerage waste only which will then discharge to theestate waste system including an inspection manhole.

• No waste water treatment has been provided for anyprocess waste

High pressure compressed air system

Not Required.

Low pressure compressed air system

• as per orig. spec.2x compressors 3&4 CFM 100 psi

air dryersair fittenrelievers.Low pressure ring main

Page 22


SECTION NO. 7

ELECTRICAL

High Voltage

• The incoming HV cable will be run overhead on concretepoles to the transformer compound.

• The transformers will be locally manufactured oil filled,naturally cooled using one (1) 1700 kVA 3 phase systems.(Note air compressor electrical load is assumed asincluded in process load provided).

• The transformers have been sized for 1500 kVA processloads plus 200 KVA for building loads.

• No high voltage switchgear is provided as we haveallowed for drop out fuses on the in coming HV cable.

• Process electrical breaker to be provided at MDB. Thedistribution lines are excluded.

Main Distribution Board

• The MDB will be sized to all building and process loadsand will be locally manufactured.

• Distribution panels will supply building requirements.

• Tie board will be provided at the MDB.

• 220 V grounded outlets will be provided on columns tothe factory and to the office area and exterior buildings.

• The following quantities of outlets have been allowed for-

- Factory 14- Office/ Canteen 14- External 2

• Four (4) ground 380 V 3 phase 50 amp welded outlets tobe provided in the building.

Page 23


• Exit signs and emergency lights are to be provided asper code.

• No allowance for roof space lighting in office area.

Lighting

• The factory area to be 220 V metal halide (400 w).

• Office area and out buildings to be fluorescent lighting.

• External lighting via poles

Lighting levels

The following lux levels are to be achieved.

• Factory/ Process rooms 400 lux• Office 350 lux• Laboratory 500 lux• Out building 150 lux

Lightning protection

• Lightning protection is to be provided to the facility.

Telephone/ Data

• Four (4) lines in-coming and twelve (12) lines asdistribution in the office area.

• Hemaraj providing 10 incoming lines IDD ISDN Int. Sub.Data Network.

• PABX 4-12 is included.

• Data lines have not been allowed.

Fees

• PEA fees are included except for the PEA bond which isto be provided by the client.

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SECTION NO. 8

FIRE PROTECTION

• The Thai codes do not require the installation of a sprinklersystem to a building less than 10,000 m2.

• The Fire Protection system is to incorporate

- Smoke alarms to office and all out buildings.- Fire alarm panel with voice capability to be

monitored at the guard house.- The system will be divided into a maximum of 5

zones.- The fire alarm panel will be located in the office

area.- Remote panel will be located in the guard house.- Fire extinguishers

• Hose Reels, water tank, diesel pump.

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SECTION NO. 9

SPECIAL EQUIPMENT

• No hydraulic dock levelers are provided. The truck dockwill be 1.5 m above the truck apron.

• Four (4) truck dock bumpers.

• Kitchen equipment, exhausts, stainless steel counters andcanteen furniture is excluded.

• Flag poles three (4) 30ft required with lights.

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SECTION NO. 10

EXTERNAL WORKS

• Carpark area to be concrete and roads, loading dock tobe heavy duty concrete.

• The road frontage fences are to IEAT standards and theremaining site boundary fences are chainlink.

• External drainage to be incorporated within the finalcontours of the site.

• Spirit house is to be the minimum standard required bylocal custom for a facility of this size.

• Signage is to include a main sign and directional signagethroughout the facility.

• Container storage of 40 m2 is to be heavy duty concrete.

• A Provisional Sum of 250,00 Baht is allowed forlandscape, trees and grass.

• Facility operational signage has been allowed.

• A Provisional Sum of 50,000 Baht in allowed for mainsign and lighting to sign.

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SECTION NO. 11

EXCLUSIONS

• The following works are specifically excluded from thiscontract :-

- Telephone handsets.

- All works associated with equipment installation,including wiring from DB’s to equipment.

- Windows to the factory area

- Internal walls to the factory area

- Air conditioning to the factory area

- Sprinklers, hose reels and hydrants not requiredby Thai codes

- Dock levelers

- Truck dock locks and trailer lights.

- Natural or LPG gas supply

- Waste water treatment plant, for process waste.

- Canteen furniture

- Kitchen equipment and counters.

- Office fitout and furniture.

- Blinds

- Lockers, benches and janitors closets

- Security alarm system.

- Clocks

- Drinking Water Supply

- PEA fees and bond

Page 28


- TOT fees

- Water connection fees

- Import duties (assume BOI promoted project).

- Electrical distribution and connections to processequipment.

- Water distribution and connections to processequipment.

Page 29


7SAFETY PLAN 1. Project Goals

2. Responsibilities

3. Safety Management

4. Specific Safety Risks

5. Work Methods

- Generally

- Gravitational

- Electrocution

- Limited Access to Site

- Rubbish Removal

6. Inspection of Work Methods

7. Training

8. Emergency Plans

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Page 31

1. Project GoalsThe primary project safety goal is :

- To provide a safe and healthy environment for the publicand all personnel included in the project.

The secondary project safety goal is :

- To create an awareness of safety management and thateveryone is responsible.

2. Responsibilities

The responsibility for project safety belongs to everyone whoenters the site.

The Lend Lease team will be responsible for managing andmonitoring the works.

The subcontractors are responsible for the management andproduction of the works and for ensuring the safety goals areachieved.

3. Safety Management

The intent of the safety plan is to achieve the project safetygoals through the progressive awareness programme by thesite personnel of the basics of Safety Management. The keyelements of the plan are :-

1. Understand Safety Risks2. Assess Safety Risks3. Identify Specific Risks4. Work Methods to manage Safety Risk5. Inspect Work Methods6. Training and feedback to understand risk7. Emergency Plans

4. Specific Safety Risks

While understanding the low base of awareness of safety riskin Thailand, the Project Safety Plan will focus of the followingrisks :


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1. Gravitational (Falls and Falling objects)2. Electrocution3. Public, Children Access and Access of workers from

existing facility.4. Rubbish Removal5. Vehicle accidents

5. Work Methods

(i) Generally

The Work Methods, site safety rules and security procedureare to be posted in Thai and English on the site Safety NoticeBoard.

A risk assessment to determine work methods will becompleted prior to the commencement of new work.

Safety Signs in Thai and English will be located around thesite indicating safety warning to be followed by all people onsite.

Project safety requirements will be provided to all subcontractorsat the time of tendering and will form part of the subcontractagreement.

(ii) Gravitational

Gravitational risk on the project will be managed by the use ofthe following work methods :

1. All personnel to wear safety helmets.2. All personnel to wear suitable footwear.3. All trenches deeper than 1.0 m are to be shored or use

open cut excavation at 45 degrees.4. Mobile cranes are always to operate with all outriggers

extended.5. All areas where materials or people may fall 1

meter shall have Handrails and Kickboards.6. All penetrations shall be covered.7. Suitable access to elevated work areas.8. All lifting gear to be checked for suitability prior to their

use.


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(iii) Electrocution

Electrocution risk on the project will be managed by the use ofthe following work method :

1. All leads to be inspected monthly for faulty insulation.2. Lead stands to be provided to keep leads off the floor

and out of water.3. When available, Earth Leakage Circuit Breakers are to

be used on Electrical construction boards.4. All leads shall be fitted with plugs.5. Working on live switchboards not permitted.

(iv) Limit Access to Site

The several public, workers from existing facility and childrenaccess risks on the project will be managed by the use of thefollowing work methods :

1. Safety signs to be erected at the site entry

2. Signs to state :

2.1 Safety helmets and footwear to be worn at all times2.2 Report to Site Office before entering the site area.

Unauthorized Personnel will be asked to leave thesite.

3. Site security procedure to be followed.

4. Have clear boundaries identifying the construction siteand limitations of access.

5. All children are to remain in the labour camp at all times.

(v) Small Rubbish Removal

Rubbish risks on the project will be managed by the use of thefollowing Works Methods :

1. All daily rubbish to be stored in a defined area.2. Weekly, the rubbish will be removed from site.


Page 34

(iv) Vehicles

Vehicle risks on the project will be managed by use of thefollowing waste methods :

1. Workers to be transported in vehicles where seating androllover protection is provided.

2. Where available, seat belts to be worn.

6. Inspections of Work Methods

6.1 Formal safety inspections will be held on a weekly basiswith the following attendees :

1. Construction or Site Manager2. Site Engineer3. Foreman (LLT and/or S/C)4. Subcontractors representative

The inspection will be minuted by the site and actions will bemonitored at the next weekly meeting.

The actions will show the following :

1. The level of understanding of safety risk.2. Identify the training requirements.

6.2 Informal inspections will be done by everyone becausesafety is the responsibility of everyone on site.

7. Training

A site safety talk is to be held on a two weekly basis which willcover a specific safety item relevant to the project.

8. Emergency Plans

8.1 Minor Injury (No Lost Time)

A First Aid box will be provided at the site office for firstaid of minor injury.


Page 35

8.2 Major Injury (Lost Time)

An injury resulting in lost time must be reported in writingto record all details of :

1. name of injured person2. cause of injury, date and time3. treatment given4. preventative action taken

The primary action is care of the injured.

The Safety Notice Board should list :

The actions to be taken in the case of major injury : i.e.

- Nearest Hospital location and telephone number- Ambulance telephone number- Construction Manager telephone number- Fire Brigade- All injuries are to be reported.- Location of alternate hospital nominated- Vehicle for transportation of injured person.


Page 36

8QUALITY ASSURANCE PLAN The following procedures will provide quality control of the

design & construction processes :-

Design

• Incoming information and the issue of instructions to thedesign team will be controlled by the Project Manager.Instructions to be subcontractors will be controlled by theConstruction Manager

• Design Coordination meetings with the LLT teamconsultants are to be convened on a regular basis tocoordinate specific project elements. The meeting is tobe chaired by the LLT Project Manager and be minutedto contain agreed actions.

At these meetings the various design requirements forthe area under consideration are prioritized and plansfor finalizing the preferred design solution are agreed.

• Drawing Control Process

As drawings are issued by the design team these arecopied and issued to the Project Site Office. One set ofthese new drawings are distributed to the Site team forreview and comment. Any comments raised are passedto the Project Manager for resolution. This is to ensurethat rapid communication and feedback is providedbetween the site based team and the design team.

• Procurement Package Checklists

The individual project procurement packages are to bereviewed to identify :-- missing scope- design errors or opportunities for rationalization- coordination problems with other designers

These package review checklists are used to trackresolution of design problems. These are issued to theteam at the design meetings and form the starting pointof design verifications.


Page 37

• Design Review & Verification

Once design drawings have been prepared for a particularprocurement package these are reviewed against thefollowing :-- Brief as interpreted by the Contract Specification

and drawings- Sequence of Construction / ease of details to be

implemented on-site- Coordination with other designs, particularly those

package that have already been approved forconstruction

- Outstanding items from the procurement packagechecklist.

Construction

• Site Coordination Meeting

Meetings are to be held on a weekly basis withsubcontractors to review design, construction,programme, quality, and safety issues. This meeting willserve as a record of the project at that point in time.Quality is addressed in this meeting by review of checklistsand inspection reports.

This meeting will be chaired by LLT ConstructionManager with attendance from the relevant subcontractormanagement and employees. Copies of minutes will beissued to all present, LLT Project Manager and designers.

• Construction Detailing Meeting

Meeting held on a weekly basis to review design inadvance of construction to agree sound detailing forelements of project.

Working session to give best results using practicalexperience of team members, subcontractors andtechnical knowledge of the design team.

This meeting covers details under the heading ofstructure, finishes and services. The output of thismeeting is to be tabled at the design coordination meeting.


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• Sample / Prototype Approval Schedule

Developed for the project to control the quality of materialsand work to be completed on the project. Prototypes willbe requested to be completed by subcontractors prior tothe commencement of work. These samples orprototypes will form the basis of workmanship and finishquality to be achieved. PBR Automotive and LLT willapprove all materials and prototypes. The constructiondetailing meeting will be the forum for the control of thisschedule.

• Shop Drawing Approval

Shop drawings will be controlled by the Project Managerand will be issued for approval to the relevant consultant.

• Informal Site Inspection

LLT project team will be based on site for the duration ofthe site works. Informal inspections will be completedon a regular basis each day to review site works. Itemsidentified from this inspection will be communicated tosubcontractors verbally and written or during sitemeetings.

• Formal Site Inspection - Daily Works Checklist

Standard format checklist developed for each work activityon site. This form is completed on a daily basis and issuedto the respective subcontractor for action.

• Non Conformance Status Report

Control document to monitor nonconformanceof work identified in the Daily work checklist. This reportwill be reviewed at the weekly site coordination meeting.


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• Requests for Approval (RFA) and Request for Information(RFI)

RFA’s will be used for approval of all samples, methodstatements, mix designs, drawings and details. RFI’s willbe used to document any discrepancies or lackinginformation within site received drawings, details,specifications or subcontractor shop drawing. Bothrequest forms will be monitored by a control documentwhich will be review at each site team and coordinationmeeting.

• Work Finalization Inspections

To be held with the subcontractors responsible for workwhich is considered complete. This inspection will reviewthe overall finished product to determine the final defectsto be completed based on this inspection and anyoutstanding issues from the formal site inspection.

PBR Automotive will be involved in this inspection toensure satisfaction with completed work.


Client References and Case Studies

APPENDIX A

Page 40


1.3.4 SUBMISSION DRAWINGS

Submission drawings should be sufficient to fully cover the scope of works and yet do notdisclose innovations in design that can be made use of by others. Generally, as a minimum,the following will be required :

• Site plan

• All floor plans

• Elevations on 4 sides

• Longitudinal and Cross Sections

• Single line drawings / schematics for the building services, showing philosophy ofservices planning

• External works drawing showing how the site is to be drained, and amount of cut / fillrequired (optional)

• Architectural perspective (optional)

1.3.5 DESIGN FEES ESTIMATE

As far as possible, obtain cover quotations from the consultants for the design fees payablein connection with the project. If this is not possible, design fees shall then be estimatedbased on past records of projects of similar nature.

The level of quotations required for design services shall depend on the complexity of theproject and the method of construction.

Generally, quotations need to be obtained from consultants for design fees. To obtaincompetitive fee submissions, the Project Manager Concept must prepare (as a minimum)the following information for the consultants :

• Overview of the Project

• Architectural issues - image / statement

• Required deliverables DocumentationAuthorities submissions & liaison / approvalBriefSpecificationsSchedules (furniture, colors etc)Meetings to be attendedInspectionsCoordinationCopies of drawingsQuality Assurance ReportsITP input for commissioningOther as necessary


The Project Manager Concept should discuss the consultant selection issue with theOperations Manager

As part of the design fee estimate, it shall also be the Project Manager’s responsibility toprovide a detailed breakdown of the Project Management time required to produce thedeliverables as noted above. That is, he should determine how much of his own time isrequired (and P.E. time) to “manage” the process.

An example of a spreadsheet used for a detailed breakdown of the design fee estimate isattached.

Asia P


anual - Issue 1 / 1.3 - A

dmin / Q

uality - Docum

entationD

esign Managem

entR

evision 2, 28/10/98

DESIGN FEE ESTIMATEProject Name: Issue: Date:

STAGE 1 - CONCEPT DESIGN & CONTRACT PRICE STAGE 2 - DETAILED DESIGN Role Name Dur. Unit Rate Total Dur. Unit Rate Total

PM TRAVEL & EXP. Travel 0 item - - 0 item - - Expenses 0 item - - 0 item - -PROJECT MANAGEMENT Concept & Conversion Project Manger 0 mths - - 0 mths - - Concept & Conversion Project Engineer 0 mths - - 0 mths - - Detailed Design Project Manager 0 mths - - 0 mths - - Detailed Design Project Engineer 0 mths - - 0 mths - - Delivery See P&S Estimate Training Project Engineer 0 mths - - 0 mths - -PRINTING & FEES Printing 0 item - - 0 item - - Courier 0 item - - 0 item - -ESTIMATING Concept & Conversion Estimator 0 mths - - 0 mths - - Cost Planning Estimator 0 mths - - 0 mths - -PRECONSTRUCTION Project Planning Project Manager 0 mths - - 0 mths - -MARKETING Expenses 0 item - - 0 item - - Perspective 0 item - - 0 item - - Model 0 item - - 0 item - -ARCHITECTURAL Fee 0 item - - 0 item - - Extra over fee 0 item - - 0 item - - Contingency 0 item - - 0 item - -STRUCTURAL & CIVIL Fee 0 item - - 0 item - - Extra over fee 0 item - - 0 item - - Contingency 0 item - - 0 item - -MECHANICAL & ELECTRICAL Fee 0 item - - 0 item - - Extra over fee 0 item - - 0 item - - Contingency 0 item - - 0 item - -PROCESS SERVICES Fee 0 item - - 0 item - - Extra over fee 0 item - - 0 item - - Contingency 0 item - - 0 item - -SPECIALISTS Traffic 0 item - - 0 item - - Surveyor 0 item - - 0 item - - Geotehnical 0 item - - 0 item - - Other - Landscape 0 item - - 0 item - - Ground breaking ceremony 0 item - -

TOTAL for CONCEPT DESIGN --

TOTAL for DETAILED DESIGN -

TOTAL DESIGN FEE -

Asia P


anual - Issue 1 / M

aster Design F

ees Estim

ateD

esign Managem

entR

evision 2, 28/10/98


1.3.6 PROJECT CORRESPONDENCE

Correspondence related to the Project is to be filed in accordance with the company standardfiling system (refer section 2.2.1). Generally, this system is categorized into the followingbroad sections :

• Client• Legal / Client Financial• Authorities• Design / Estimate• Architectural• Structural / Geotechnical• M & E Design

It is the responsibility of the individual looking after the particular set of files to ensure thatfiling is up to date and organized in accordance with these general guidelines.

1.4 REVIEWS

1.4.1 Strategy Review

1.4.2 Interim Pricing Review

1.4.3 Risk Analysis

1.4.4 Contract Price Review

Asia Projects Operations Manual - Issue 1 / 1.4 - Submission - Re viewsDesign ManagementRevision 2, 28/10/98

Reviews / Quality

1.4.1 STRATEGY REVIEW

The strategy review is the first meeting held on the project, and occurs as soon as anopportunity is identified. The purpose of the strategy review is to try to understand thefacts about the project. The outcome of the strategy review should be :

• Decide if we are to bid for the project

• If so, what course of action should be followed to maximise our chances of success.

The persons to be invited to the strategy review include (Also refer to Company Limits ofAuthority - section 1.5 of this manual)

• Country Operations Manager

• Country Business Development Manager

• Project Manger Concept

• Estimator / Cost planner

• Client contact (if different to above)

• Regional LLA marketing and Operations Managers

The agenda for the strategy review should be as described below. Note that the detail andformality of this meeting should be tailored to each project.

(A) The opportunity

(B) The Client

(C) The Project

(D) The Competition

(E) The team

(F) Program

(G) The submission

(H) Pricing Strategy

(I) The winning tactics

(J) Summary


A. The Opportunity

This should be an executive summary of what is involved in the Project, how did we getinvolved, and the key points of the remaining items as listed below

B. The Client

B.1 Summary of key factors on the client

• Financial strength

• New or Repeat client (check globally)

• Outline of client’s organisational structure, specifically re decision making

• How clients previous projects (if any) have been handled

• How good are our contacts with the client

• What the client wants in terms of commitments at this stage (lump sum, managementservices etc)

• How the client expects to be involved throughout the project

• Is there a middle man (QS, architect etc)

• How much trust is there

• What are his absolute needs

B.2 An analysis of our position

• Are we being used, or is competition fair

C. The Project

C.1 Summary of key factors on the project

• Is it a “real project”

• Is land / funding available

• What are the important aspects of the project (authorities, time, environment, market)

• Extent (or deficiencies) of specific project information. For example, is there a needsbrief, project budget, site data, previous work

•· Restraints on project discussions with the client or outside parties (eg confidentiality)

• Extent of knowledge on project commerce (commercial analysis)

C.2 Does the above information fit with what we know about the client.


D. The Competition

We need to find out how the project will be reviewed. For instance

• List of competitors

• Ground rules for judging established

• Relationships of our competitors with the client or with the project

• Can we get a fair go on the bid

• What will give us an advantage (eg QS check rather than competition)

E. The Team

E.1 Who is the team and what are their roles

• Project Manager Concept

• Construction planning

• Estimating

• Other (finance etc)

E.2 Consultant selection

• Internal vs external consultants. Are we involving any external country resources(perspectives out of Singapore, Structural expertise etc)

• Consultants already or previously involved in the project / with the client

• Who are the competitors using

• Specialist consultants (process services, acoustics etc)

• Selection criteria

F. Program

The strategy review must have, at its completion, an agreement of the outline program. This shouldalready have been prepared prior to the strategy review, and should be issued with 24 hours of itscompletion. It must

• Allocate maximum time to key issues and risk areas

• Allow sufficient time for quantities, estimates, subcontract coverage and submissionmaterial. Don’t forget the time required for reviewing by Senior Management

• Be realistic. If the submission can not be done in time, face up to it at Day 1. The timecan usually be extended if this is identified early enough, or additional resources canbe allocated to help


Where this is not possible, an early identification of time issues allows the team to agree oncompromises and consequent risks with sufficient time

Recognize that our competitors will usually have a harder time meeting tight time frames, and thismay suit our tactics

G. The Submisison

The strategy review should agree what is required in the submission to the client. Key points toestablish are

• What detail is required. Does submisison need to include contract conditions,specification, drawings (extent ?)

• What ancillary information is required (eg pricing not proposed to submit)

• How are the key points of our submission going to be described

• Method of presentation (written, verbal, model, video). Does presentation need to includesummary of LLC strength, experience etc.

• Costs for overall submission, and are these adequate / justified

H. Pricing Strategy

As part of the strategy review, the cost deliverables and pricing methodology must be defined.Factors that must be considered in establishing the pricing strategy include

• Quality of documentation required by the project Estimator / Cost Planner in order toarrive at a realistic price for the works

• Estimating resources required to be used (in house or external resources)

• Level of subcontract cover to be gained / used

• Pricing or risks and opportunities

• Use of and comparison against historical estimating data in house

• use of provisional sums / PC rates for undefined works

I. The Winning Tactics

From all of the above, you should have an idea of what the winning tactics should be. For instance:

• Is cost the biggest issue (it usually is)

• Can we do a non - conforming bid (if the project is in competition)

• What are the factors that will give us a competitive edge (eg time, corporate strengthetc)

• Are there any things we should not be doing


• Any relationships that should be fostered / improved during the bid

• Any way to get the client feeling obligated to use us

• Is staged commitment the right way to go, or should we focus on lump sum D&C.

J. Commitment Summary

The strategy review should finish with a summary to include

• A commitment to “go” for the project or “subject to” commitment

• Agreement on restraints

• Agreement to team

• Arrangements to allocate and free up internal resources

• Agreement to program, including future review points

• Agreement of submission content

• Agreement to real costs involved and free service costs

• Agreement on tactics and who is involved in future strategies.


Example of a Strategy Review

Lend LeaseThailand

ANSELL SURAT THANI

MINUTES OF STRATEGY REVIEW MEETING

HELD IN LLT OFFICE ON TUESDAY 13 OCTOBER 1998 AT 10.30AM.

PRESENT :Paul GillPuangsan Xumsai Na AyudhayaDamien HertsletMichael AndersonJeff Hall (Teleconference for part)

DISTRIBUTION:All AttendeesJeff HallChidchai Mahachai

ITEM BUSINESS ACTION DATE

1.0 The Oppor tunity

1.1 Ansell have recently acquired an existing condom and rubberglove facility in Surat Thani. Ansell have requested LLT to preparea proposal for the refurbishment and expansion of their existingflexiband building into a condom building. Note

2.0 The Client

2.1 The client is a major subsidiary of Pacific DunlopAnsell are headquartered in USA and are a blue clip client withfacilities throughout Asia located similar to LL.Ansell are growing their organization by acquisitions and so willrequire upgrades to those facilities.NoteWe regard this as a strategic customer with regionalopportunities emerging (a mini Coke scenario)

Page 1 Ansell-Strategy Review 13.10.98

Ansell-Strategy Review 13.10.98

PROJECT NAME : ANSELL SURAT THANI

MEETING MINUTES FOR : STRATEGY REVIEW


2.2 Ansell’s Org. Structure :

* Decision Maker

* Opinion Maker

This is LL’s first project with Ansell or Pac Develop in Asia. Note

MA is a good friend of the Regional Commercial Director forAnsell who reports to John Gardiner, the decision maker.Ansell are expecting a lump sum. PG discussed with J. Hall thepossibility of CM fees. A Lump Sum offer is preferred.Steve Jaeger of Ansell will spend 20-30% of his time on thisproject, with full time assistance from the previous ops. manager.There is no middle man and Ansell have no reason not to trustLL at this stage. Ansell probably suspect that to use LL will costthem a premium.Steve Jaeger’s absolute need is to be within budget followedby within time. Note

2.3 Our analysis of our position is that John Gardiner wants to useLL and Steve Jaeger will protect his budget and schedule. Note

CEOHarry Burrows

R&D DirectorPaul Cacioli

*

FinancialDirectors

All Regions

MarketingDirectors

All Regions

GM Surat ThaniJohn Shields

Plant DirectorAll Regions

Project EngineerSteve Jaeger

*

Pres. HealthcareRoland Nonnenmacher

Pres. Protective ProductsPeter Cooke

Roland Nonnenmacher

MFR DirectorJohn Gardiner

*





3.0 The Project

3.1 The project is definitely real.The important aspects for this project cost followed by time.Extent of specific project information is limited. Steve Jaeger doesnot have the time are capability to properly define his needs. Note

3.2 The project is in 2 parts.1. Existing flexiband building 3000m2. - demolition except for :- structural steel

blockwork ext. wallsfloor

- extension to 6500 m2.- architectural finishes- services to support 17 condom production lines

2. New Compounding building 4 levels 13.5m x 30m (1600m2)

- structure to support multiple stainless steel tanks. Note

4.0 The Competition

4.1 Ansell have advised that our competition is Success Engineering,the same contractor that Ansell have requested that LLTsupervise for Ansell at Lat Krabang Plant upgrade.We believe that Ansell are not satisfied with their workmanshiphowever, their price will be very competitive. Note

4.2 Ansell have not prepared a formal Request for Proposal so webelieve there is no basis for direct comparison.Steve Jaeger has requested that we prepare a Budget Price forhim by as early as 22 October and follow up with a Contract Priceby 30 October. The intent is so that he can have an early indicationof the price before he goes to an international conference. Note

5.0 The Team

5.1 The bid team is :-PM Michael AndersonPE Pongpat PiampanyasinSM Chitpong KhooaroonEst. Robert Lam / Chidchai MahachaiOther Paul Gill Note





5.2 Consultant selection is based on the consultants who haveworked on the Serm Suk project in Surat Thani which has beeninspected by Ansell.Also these consultants can respond very quickly to meet theneeds of the Client Submission program.Architect - C2Str. Eng. - DTM/E Eng. - Entech Note

6.0 The Program

6.1 Ansell have provided a very aggressive schedule for the bid andbuildings Attached is a schedule showing a time frameincluding the submission time.MA to discuss a realisticsubmission and project time withSteve Jaeger. MA/PG 17-Oct-98

7.0 The Submission

7.1 The details required are :-- Concept Arch design- Site plan- Floor plan- Elevations- Design Criteria- Room Data Sheet- Concept Str./Civil design- Roof plan- Elevations- Concept Services design- electrical- mechanical- sanitary- compressed air

The submission letter will include :-- cost- program- reference to LLT contract Note

7.2 No formal presentations are required as LL’s capabilities havebeen presented to the Client previously. Note

7.3 The submission costs will be approx Baht 400,000. Note





8.0 The Winning Tactic

8.1 Cost and time are the big issue.LLT’s competitive edge is that we are a proven performer ofdelivery quality industrial facilities.Ansell have visited and were impressed by both the Serm Sukand Jotun projects. Note

Ansell we believe would feel more comfortable using LL, anAustralian company, rather than the local Thai companies.In the current market, LL’s corporate strength is an advantage. Note

9.0 Commitment Summar y

9.1 Agreed :-- to bid- bid team- bid program- submission content- submission cost- winning tactic


1.4.2 INTERIM PRICING REVIEW

An Interim Pricing Review should be held for more complicated projects, or where therehave been fundamental changes to the methods of pricing since the completion of theStrategy Review.

The purpose of the Interim Pricing Review is to review the status of the following :

(A) Items being priced internally.

(B) Information being sent for subcontractor pricing (extent and gaps therein)

(C) Check status of measuring versus status of design development. What are the gapsthat need to be filled prior to the final Contract Price Review.

The persons to be invited to the Interim Pricing Review include :

• Operations Manager



The complexity of the particular project will determine the time required / program for theInterim Pricing Review.

For relatively simple projects, an Interim Pricing Review would be expected to be heldone (1) week after the Strategy Review. However if the project is large and / or complex,then there wil need to be a program prepared detailing the various Interim Pricing Reviewscorresponding with design concept development.

A. Items Being Priced Internally

From the Strategy review, the Project Manager Concept and Estimator should have decidedwhat items will be priced internally without subcontractor cover. These should be listed down.

• From a costing perspective, where are the rates for these items being obtained? Arethey relevant in today’s market, or what adjustments need to be made?

• What are the risk elements of these prices?

The Estimator and Project Manager Concept should be prepared to justify (at Contract PriceReview) why these items do not have subcontract cover.

B. Subcontractor Cover

B.1 Summary of key issues on Subcontractor cover :

• Number of subcontractors being asked to price. Ideally there should be at least threesubcontractors pricing a similar scope

• What is subcontracted (packaging of trades), and does this fit with lowest cost base /client expectation? Can further breakdown of items (equipment supply for example)provide a better cost ?


• Who covers risk issues (subcontractor or LL)?

- Preliminaries- Price Escalation- Builders work in Conjunction- Coordination of trades

• Does subcontractor specification match LL specification to client?

• If new subcontractors are being used, do they know LL standard contract conditionsetc? Are there benefits to be obtained from surety of payments etc?

• Is the information being priced externally confidential? What are our competitors goingto do regarding subcontractor coverage, and how can we maintain confidentiality?

B.2 When are subcontractor prices being submitted, and who is responsible for vetting theseand compiling the costs for selection?

B.3 Are there opportunities to use alternative brands? How is this presented in the clientpresentation to ensure issues are raised but not highlighted?

C. The Unknowns

This particular review should note any items for which design or pricing is not possible, or forwhich inadequate design is available. The Review should :

• Determine what further works are required to fully price the project

• Decide whether such design is obtainable within the time frame, and action accordingly.

If design is not possible, can provisional sums be used to adequately apportion the risk backto the client. Is this acceptable to the client?

1.4.3 RISK ANALYSIS

The purpose of the Project Risk Assessment is to provide a summary of risks and theirimplication on the project. It is carried out prior to the Contract Price Review, and is thenpresented at that review as the basis for assessing the overall risk profile of the project.

It is important to recognise that the risk matrix is a continually evolving process, andMUST be reviewed at all stages through the project, including during the actual constructionprocess.

The format of the Project Risk Analysis is shown in Appendix 4 of the Contract PriceReview

The Project Mana ger Concept is responsible for completing, monitoring and able toaction this risk assessment.

The risk assessment is broken into the following elements


• Conversion / Client risks• Contractual risks• Design risks• Authorities risks• Construction risks• Estimating risks• OH&S risks

A. Risk

This section should identify all of the risks on the project. It should include all risks, irrespectiveof whether they are high or low risk

B. Implication

This section should identify the implication of the risk, and then identify whether the risk isperceived as high, medium or low risk

C. Corrective Action Procedure

Obviously, the intention is to put in place actions at the early stage of the project whichminimizes risk to Lend Lease. The purpose of this column is to describe what has been doneto minimise the risk identified and explained in sections 1 & 2 above, and then to denote the“resultant risk” once the corrective action has been implemented.

D. Management Status / Action

These two columns identify what action is required by management to address the risk,whether that be to institute the corrective action, or to address the initial risk at a highermanagement level if corrective action is not available.

The “Action” column must denote the person responsible for carrying out the managementaction.

E. Status DD/MM/YY

As part of the monthly project cost reviews, it is imperative that the risk analysis gets re-visited and the idea of this column is to provide an updated status of the risk identified earlierin the project, together with any further actions required on the risk identified.

Again, it is the Project Mana ger’s responsibility to update the risk assessment on a monthlybasis, for review and sign off by the Operations Manager.


1.4.4 CONTRACT PRICE REVIEW

The Contract Price Review should be held at least 2 days prior to the submission of thebid document to the client. This is to allow any items identified in the meeting to be suitablyactioned.

At the contract price / pre-submission review, we are trying to determine :

• Was the original strategy review action correct and have all items been addressed?

• That all work done is accurate (program, pricing, design etc)

• What our competitors will be doing?

• What is the maximum profit we can go with to WIN?

• Is the body of the submission appropriate and correct?

• Company risks if the project proceeds

The persons to be invited to the contract price review include (Also refer to CompanyLimits of Authority - section 1.5 of this manual to establish the person with the Authority toCommit)

• Operations Manager

• Business Development Manager



• Client contact (if different to above)

• Regional LLA marketing and Operations Managers

• Project Manager Delivery (if appropriate)

The agenda for the strategy review should be as described below. Note that the detail andformality of this meeting should be tailored to each project.

Asia Projects Operations Manual - Issue 1 / 1.4 - Contract Price Re view FormatDesign ManagementRevision 2, 28/10/98

CONTRACT PRICE REVIEW - PROJECT ______

AGENDA

ATTENDEES: Business Development Manager BDM

Operations Manager OM

Project Manager Concept PMC

Project Manager Delivery (if nominated) PMD

Cost Planner CP

Client contact (if different to above)

Operations Manager (Asia) Reg OM

Others As Applicable

DATE: .......................................................

TIME: .......................................................

LOCATION: .......................................................


1.0 PROJECT OVERVIEW

1.1 Background / History Of Project PMC1.2 Site Location PMC1.3 Project Description PMC1.4 User Needs And Client Requirements PMC1.5 Lend Lease’s Brief PMC1.6 Bid Preparation Team (LL, Consultants, Etc) PMC

2.0 CLIENT

2.1 Corporate Structure - Local And International (Refer Client Organisational BDM/PMCChart)

2.2 Key Players / Decision Makers BDM/PMC2.3 Management Of Client BDM/PMC

3.0 DESIGN / PROJECT MANAGEMENT

3.1 Basis Of Design / Concept Design PMC3.2 Development Of Design / Documentation PMC3.3 Design Disciplines (who & scope):

3.3.1 Architectural PMC3.3.2 Structural & Civil PMC3.3.3 Electrical PMC3.3.4 Mechanical PMC3.3.5 Hydraulic PMC3.3.6 Process PMC3.3.7 Other PMC

3.4 Management Of Consultants PMC3.5 Summary Of Design Review Held Prior To Contact Price Review PMC

(Minutes To Be Attached)3.6 Design Programme PMC3.7 Design Resources PMC

4.0 CONSTRUCTION

4.1 Site Establishment (Including Marked Up Plan) PMD4.2 Materials Handling PMD4.3 Temporary Services PMD4.4 Local Conditions And Factors PMD4.5 Programme:

4.5.1 Start Date PMD4.5.2 Completion Date PMD4.5.3 Wet Weather And Delay Allowances PMD4.5.4 Overall Network / Bar Chart (Primavera / Sure Trak) PMD4.5.5 Procurement Programme PMD

4.6 Preliminaries And Supervision pricing PMD4.7 Site Controls PMD4.8 Site Safety (risks, SMS) PMD4.9 Industrial Relations PMD4.10 Quality Assurance PMD4.11 Environmental PMD


5.0 THE ESTIMATE

5.1 Estimate Methodology CP5.2 Summary Of Estimating Review Held Prior To Contract Price Review CP

(Minutes To Be Attached)5.3 Cover Pricing:

5.3.1 Procurement Strategy CP5.3.2 Tender Invitation Documents CP5.3.3 Subcontract Packaging CP5.3.4 Subcontract Analysis Spreadsheets CP5.3.5 Subcontract Analysis Summary Sheet CP5.3.6 Items With No Subcontract Cover CP

5.4 Contract Price:5.4.1 Contract Price Summary (In LL Standard Format) CP5.4.2 Provisional Sums CP5.4.3 Preliminaries And Supervision Costs CP/PMD5.4.4 Design And Project Management Costs CP/PMD5.4.5 Overheads CP5.4.6 Taxes, Duties, Special Conditions CP5.4.7 Currency Risks CP5.4.8 Escalation CP5.4.9 Contingency CP5.4.10 Margin CP

5.5 Possible Reductions / Savings In Contract Price CP5.6 Cost Comparison With Similar Projects CP

6.0 LEGAL

6.1 Proposed Head Contract PMC6.2 Subcontract And Purchase Order Conditions PMD6.3 Insurances Required / Covered By Client PMD

7.0 RISKS AND OPPORTUNITIES

7.1 Risk Assessment Matrix ALL7.2 Management Of Risks Highlighted In Risk Assessment Matrix ALL7.3 Opportunities ALL

8.0 CONVERSION STRATEGY

8.1 Draft Proposal Document PMC8.2 The “Deal” ALL8.3 Presentation PMC8.4 The Way Forward PMC


NOTES:

• This agenda is a minimum standard that is to be adopted for all Contract Price Reviews.

• It is assumed that all relevant reviews (e.g. estimating, design, programme, etc) have beenundertaken and minuted prior to the Contract Price Review.

• All agenda items must have supporting documentation that can be referenced during theContract Price Review as required.

• Minutes of the Contract Price Review are to be taken, distributed and actioned within twodays of the meeting being held.

Asia Projects Operations Manual - Issue 1 / Contract Price Re view AppendicesDesign ManagementRevision 2, 28/10/98

APPENDICES:

1. Subcontract Analysis Trade Sheets

2. Subcontract Analysis Summary Sheets

3. Contract Price Summary Sheet

4. Risk Assessment Matrix

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PROJECT ABC – TRADE PACKAGE

Lend Lease Tenderer No. #1 Tenderer No. #2 Tenderer No. #3 Tenderer No. #4Asia

Description Unit Qty Rate Sub Total Qty Rate Sub Total Qty Rate Sub Total Qty Rate Sub Total Qty Rate Sub Total

12

345

678

91011

121314

15

Initial PriceTotal (Rs) 0 0 0 0 0

ADJUSTMENTS12

34

ADJUSTED TOTAL 0 0 0 0 0

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PROJECT ABC – SUBCONTRACT ANALYSIS FOR CONTRACT PRICE

LLI Adopted Variance Trade Package TENDERER#1 #2 #3 #4 #5

0 0 0 TRADE PACKAGE DESCRIPTION Tenderer Name Tenderer Name Tenderer Name Tenderer Name Tenderer Name0 0 0 0 0















0 0 0 ITEMS WITH NO SUBCONTRACTCOVER

0 0 0 TOTAL TRADE COSTS (Rs)

NOTES : (a) The % of subcontractor cover on trades = 0(b) EVEREST BQ trade costs total = 0(c) Tender Adjustment No. 1 = 0

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PROJECT ABC – CONTRACT PRICE REVIEW

Exchange Rate Adopted = 1.0

Project ABC Contract Price(Initial) Contract Price(Initial) Contract Price(Initial) Comments / Notes

(Rs) ($US) (Rs) ($US) (Rs) ($US)

Trade Costs 0 0 0 0 0 0 Refer EVEREST summary

Tender Adjustment No. 1 0 0 0 0 0 0 Refer s/c analysis

Tender Adjustment No. 2 0 0 0 0 0 0

Tender Adjustment No. 3 0 0 0 0 0 0

TOTAL NET SITE COSTS : 0 0 0 0 0 0

Trade Contingency 5% 0 0 0 0 0 0

Design / Project Management 0 0 0 0 0 0 Refer separate estimate

Preliminaries and Supervision 0 0 0 0 0 0 Refer separate estimate

Escalation 0 0 0 0 0 0

SUB TOTAL : 0 0 0 0 0 0

Margin 15% 0 0 0 0 0 0

Overheads 0 0 0 0 0 0

Provisional Sums 0 0 0 0 0 0 Gross including margin, etc.

GROSS PROJECT COST : 0 0 0 0 0 0

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PROJECT ABC - RISK ASSESSMENT MATRIX

NO RISK IMPLICATION H M L CORRECTIVE H M L MANAGEMENT/ ACTION STATUSACTION PROCEDURE STATUS DD/MM/YY

1 CONVERSION / CLIENT

1.1 Registration of client Where is client registered. Is itcapitalised to meet its

1.2 Stability of client Business needs, corporatestrength

1.3 Client review and What is review system and likelyanalysis procedure timing / impact

1.4 Design Concept Does client accept our designconcept, or does he want his own

1.5 Project Team Has client in place a projectteam. Are we using it

1.6 Costs High

2 CONTRACTUAL

2.1 Form of Contract Lend Lease PM / D& C modified2.2 Head Contract / S/C conditions to be back to back

Subcontract Agreement with H.C. Ability for S/C tomanage risk could be an issue

2.3 Liquidated Damages Ability to effectively pass on S/C.What are LD’s.

2.4 Extensions of Time Time & Cost Wet / Force Majure,etc.

2.5 Insurance - Workers Who is responsible forCompensation, Public implementing, and what limitsLiability, Contract Works, are applicableProfessional Indemnity

2.6 Client requested changes Time & Cost if cause delay2.7 Sub-contractor Is client responsible for signing

off ? engagement Performance2.8 Changes to Legislation / Time & Cost

Taxes / charges2.9 Variation procedure Time & Cost

2.10 Performance Guarantees / Is it required and how much forSecurity Deposit how long

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2.11 Consequential loss Is it likely to be an issue and if so,scope ??

2.12 Performance bond, What is scope and for how longRetention till release

2.13 Defects Period What is defects period duration,and when does it start (PracCompletion or earlier)

2.14 Time bars Are there any time bars oncontract for submission of claimsre EOT, variations etc.

2.15 Control of site Who is responsible for site. LL orclient or third party

2.16 Payment Conditions What are they, any advancepayments

2.17 Completion Definition of completion basedon authorities or client signoff

2.18 Currency risks Who takes, what scope of risk

3 DESIGN

3.1 Geotechnical Risk Time & Cost3.2 Engagement of Poor Performance, Client desired

Consultants consultants3.3 Design Management Program, client input3.4 Design fitness for purpose3.5 Design detailing and

coordination, buildability3.6 Material selection Costs implication3.7 Detail design completion Full detailed drawings required

responsibility from consultants

4 AUTHORITIES

4.1 Heritage listing of existing N/A building

4.2 Development Approval Being reviewed4.3 Building Approval Being reviewed4.4 Service utilities approval Delay to program: Cost

incl. Head works charges increasesand fees

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4.5 Implications of client fitout Is client engaging fitout s/c./ occupation on final Scope and overlap with LLauthorities approvals

5 CONSTRUCTION

5.1 Warranties What are they, and how are wedealing with them

5.2 Defect Liability period Standard practice being reviewed5.3 Operations and Will be required

Maintenance manual5.4 Commissioning Utilities not operating to allow

production ?Extent of responsibilities

5.5 Ground conditions Design to suitGeotechnical report

5.6 Quality of site team Project premium if notpackaged suitable

5.7 Optimum packaging Price premium if not packagedsolutions suitable

5.8 Quality of S/C Poor performance. Program risk.Have to terminate

5.9 Direct Purchase Greater control.Potential saving

5.10 Direct Labor Greater control.Potential savings.

5.11 Latent conditions5.12 Construction period Reputation & Liquidated damages5.13 Industrial disputation Currently being reviewed5.14 Inclement weather Allowances included in contract

program

6. ESTIMATE

6.1 Rise and Fall Cost increases6.2 Foreign exchange Cost increase6.3 Site allowances Local conditions being reviewed6.4 Lack of subcontractor cover Contract price uncertainty6.5 Scope of works covered Wrong price6.6 Cost overruns at GMP Profit Loss

7 O H & S

7.1 Principal contractor liability Currently being reviewed7.2 Management of safetyrisk Currently being reviewed

on site

1.5 Limits of Authority

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Limits of Authority

The attached sheets provide the Limits of Authority applicable to various functions of theOperations process.

Responsibility for allocation of the Limits of Authority lie with the Regional Project ManagementDirector.


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LIMITS OF AUTHORITY - PROJECT MANAGEMENT BUSINESSREGION : ASIAEffective Date : 16 July 1998Revision: 3Issued : 20/7/98

GENERAL

This section covers common transactions by the Company and authority to bind the Companywhen an employee’s proposed actions may commit the Company to a third party or authorisepayment. If any doubt exists regarding employee authority to commit the Company, referencemust be made to the person’s manager.

Limits of Authority for Company employees are detailed below. Any person(s) breaching Limits ofAuthority or procedures in this section will be subject to appropriate discipline which may includetermination.

CURRENCY

Limits are denoted in A$. For the purposes of translating into local currency’s the following exchangerates are to be used (reference rate USD/AUD 0.65):Singapore: 1.05 eg. Multiply the Australian $ limit by 1.05Thailand: 25Indonesia: 5000India: 25Malaysia: 2.5China: 5.0Hongkong: 5.0If exchange rates at the time of the transaction vary by more than 15% to those listed above usethe prevailing rates and advise the Regional Financial Controller.

DISCRETIONARY LIMITS OF AUTHORITY

The levels of authority have been designed to allow for individual levels of skill and experience.The limits are based on standard levels of authority which can be increased or decreased at the(written) discretion of the persons manager within that manager’s level of authority and with theapproval of that manager’s manager. A current list of all discretionary allocations of authority withinthe Asian Region will be maintained by the Regional Financial Controller.

COMPANY REPRESENTATION & BUSINESS NAME

The only circumstance in which a person may represent they are acting on behalf of a groupcompany (other than the company in the country in which they are based) is where they receiveauthority in writing from the Regional Director. This also applies to use of the name “Lend LeaseProperty Services” or “Lend Lease Asia”



ABBREVIATIONS

The following abbreviations are used hereafter:-Project Manager (PM); Site Manager (SM); Senior Project Manager (SPM); Project Director (PD);Senior Site Manager (SSM); Business Development Manager (BDM); Design Manager (DM);Construction Manager (CM); Local Operations Manager (LOM); Local Financial Controller (LFC);Country Manager (LCM); Regional Legal Counsel (RLC); Marketing Director (MDR); RegionalFinancial Controller (RFC); Regional Operations Manager (ROM); Regional Director (RD); ChiefExecutive Officer (CEO)

DELEGATED LIMITS OF AUTHORITY

Design Authorisation (cumulative total per project/ key client)

i) Fully Paid Commission (with written Client commitment to pay):• SPM/PD/LOM/LCM $25,000 or as allocated by ROM• RD/ROM/MDR unlimited

ii) Free Service• Within Budget: LCM/ROM $20,000

RD unlimited

• Over Budget: RD unlimited

Strategy Reviews / Conversion Reviews(Required on all opportunities before Marketing & Conversion resources progress anopportunity)

• LCM (except key clients) $ 5 million or as allocated by MDR• MDR $ 10 million or as allocated by RD

• RD $ 50 million or as allocated by CEO• CEO unlimited

Tenders, Proposals, Submissions, Letters of Offer with (or without) Price; Time & ContractCommitments; Head Contract Conditions; Execution & Variations; CommercialAssessments; other formal contracts; verbal, written or other actions commiting theCompany.

i) Company Commitments To Clients• LCM $ 5 million or as allocated by ROM• ROM $ 10 million or as allocated by RD• RD $ 50 million or as allocated by CEO

• CEO unlimited

ii) Head Contract Conditions:• Minor variation to Local LCM or LOM* plus RLC

Standard Contract• Major variation with RD or ROM plus RLC

different risk profile


iii) Variations on Committed Contracts• LOM $ 50,000 or as allocated by LCM/ROM• LCM $1 million or as allocated by ROM

• ROM $ 10 million or as allocated by RD• RD $ 25 million or as allocated by CEO• CEO unlimited

It is the SM/LOM* responsibility to raise all possible contract variations. The procedure for client approval ofvariations must be established pre-construction and adhered to. Variation schedules must be included in PCG’sand variations must be tabled for PCG approval. Formal approval must be gained with a client signed Variation

Advice.

Construction Authorisation

i) Head Contract Executed:• LCM: $1.0 million or as allocated by RD/ROM

• ROM: $ 5.0 million or as allocated by RD• CEO: unlimited

ii) Head Contract Unexecuted:• RD: $ 25.0 million or as allocated by CEO• CEO: unlimited

Design (Consultant Commissions & Ammendments Thereto):-

i) Within Budget:• SPM/PD $20,000 or as allocated by LCM/ROM• DM/LOM $50,000 or as allocated by LCM/ROM

• RD/ROM/LCM: unlimited

ii) Over Budget :• SPM/PD $5,000• DM/LOM $10,000• LCM: $50,000

• RD/ROM: unlimited

Construction (Purchase Orders, Sub-contract Agreements & Amendments Thereto)

i) Within Budget:• SM: $ 50,000 or as allocated by ROM

• CM/LOM $100,000 or as allocated by ROM• RD/ROM/LCM: unlimited

ii) Over Budget :• SM $ 0 or as allocated by ROM• CM/LOM $10,000

• LCM: $150,000• RD/ROM: unlimited



Overhead Expenditure

I) Within Budget: LFC $10,000 or as allocated by LCM/RFC

RFC $100,000 or as allocated by LCM/ROMLCM/ROM unlimited.

ii) Over Budget: LCM/ROM $100,000

RD unlimited

These authorisations assume standard conditions of contract for each country. Changes to contractconditions must be approved in accordance with the limits of authority for Head Contract conditions

Batch Approvals or Cheque Signatories

• Authorised signatories unlimited (providing payments are appropriatelyauthorised)

Note :a) Changes to cheque signatories must be approved by the RFC & ROMb) Two individuals must sign each cheque, unless specifically set-up as single signatory imprest account

c) A cheque signing register must be maintained in each Country and reconciled to cheque the LFC.

Declaration of Savings

I) Indicative Share of Savings Advice• LCM: $50,000 or as allocated by ROM

• ROM: unlimited

ii) Actual Share of Savings Advice• RD/ROM/RFC unlimited

Settlement of Contractual Disputes

All contractual disputes or legal actions must be referred to the Regional Legal Counsel at theearliest possible time. Any contractual dispute in excess of $50,000 must not be settled withoutreference to Regional Legal Counsel, ROM and RD. Any legal action must not be settled withoutreference to Regional Legal Counsel and RD.

Capital Expenditure

i) Within Budget• Do not capitalise: $______ (Amount in accordance with local

tax regulations but must be less than $500)• LCM: $50,000

• RD/ROM unlimited• RFC/RD must approve all options to purchase land or buildings and all leases of land or premises

ii) In excess of Budget/Not Budgeted• RD $75,000• CEO $100,000

• LLAsia-Board over $100,000

Regional Chief Information Officer must approve all EDP equipment (incl. that within establishedbudgets)




Donations & Sponsorships

The following policy on Donations & Sponsorships has been issued by the Lend Lease CorporationBoard:I) all political donations, globally, require the pre-approval of the Group CEO, within an annual

budget approved by the LLC Board;ii) corporate sponsorships that can be specifically designated as ‘marketing’ expenses for a

business unit or project should be accounted for as marketing, rather than sponsorships,and approved by business unit CEO’s when these are within the budget approved total andunder $10,000. All other amounts require the pre-approval of the Group CEO or FinanceDirector.

iii) charitable donations should be confined to the non-cash Community Day, other than theChairman and Group CEO having authority to approve exceptional amounts up to $100,000(to be reported to the LLC Board quarterly). Amounts in excess are to be pre-approved bythe LLC Board; and

iv) a code of conduct for political and charitable donations incorporating the above principle willbe issued to all staff.

Asia Projects Operations Manual - Issue 1 / 2.0 Design De velopmentDesign ManagementRevision 2, 28/10/98

DESIGN DEVELOPMENT

The appointed Project Manager Delivery for the Design Development of a Project is responsiblefor :

Time - Procurement Schedule- Design Schedule

Admin - Project Filing- Document Controls- PCG- Minutes of Meetings

Cost - PSAs- Cost Planning

Admin - Head Contract- Insurances- Registers

The section of the Design Management Manual is intended to provide the Project ManagerDelivery with the tools and examples to perform his responsibilities in Design Development.

2.1 TIME -Design Planning

2.1.1 ProcurementSchedule

2.1.2 Design Schedule

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2.1.1 PROCUREMENT SCHEDULE

In many projects, the impact of procurement is in direct conflict with the historical way thatour consultants provide design information to us. Hence it is extremely important that theprocurement program and the design program are intrinsically linked. Neither programhas priority over each other, it is a combined program that is the required result.

The procurement system includes a number of steps. It is the Project Manager Deliverywho must take responsibility for the procurement system.

• Identification of trade packages• Assessment of procurement time• Impact on design program

IDENTIFICATION OF TRADE PACKAGES

The trade package listing is generic, and includes the following trades (as an example).Further trade splitting may be required (eg structure) :

• Piling• Pile caps• RC structure• Structural steel• Roofing / metal wall cladding• Brickwork & plaster• Tiling• Door frames, doors & hardware• Painting• Dry walls and ceilings• Electrical services• Hydraulic (plumbing & sanitary) services• Fire services• ACMV services• Lift Services• External works• Roller shutters• Aluminium windows / doors / louvres / glass• Specialist metalwork (stainless steel etc)


ASSESSMENT OF PROCUREMENT TIME

In carrying out this assessment, we first work back from the required on site date, andinclude the following times as may be applicable, to get to a series of dates at which thedesign must be made available.

• Required on site date• Lead time (materials & manpower)• Shop drawing approval times• Shop drawing times• Place order to subcontractor / supplier• Commercial evaluation of tender• Bid / Tender period• Tender preparation time (specs, drawings, documents)• Pre-qualification period

Generally, we should be trying to get drawings etc AFC at time of tender, however thismay not always be possible. Accordingly, the link to the design program is critical, and itmay be necessary to include tender drawings which are preliminary, and then the AFCdetails to be finalised during the tender evaluation stage.

IMPACT OF DESIGN PROGRAM

As noted above, a procurement program led from a required on site date may conflict withthe available time for design. In many instances, it is a balancing of the design andconstruction program which is necessary, and hence the importance of procurement as acritical evaluation technique for the overall design and construction period.

For instance, it may be necessary to delay the start on site date due to the unavailabilityof design, and this needs to be identified before the bid is submitted. Similarly, it may benecessary to include additional design resources (at a cost impact on the design feecomponent) in order to meet the required on site date, if the client’’ end date is fixed.

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Shop Shop

Preliminary design Prequalification of Compile bid Commercial AFC drawing drawing

Package info required tenderers package Bid Period evaluation drawings Place order time approval Lead Time Required on site date

Description (date) (weeks) (weeks) (weeks) (date) (date) (weeks) (weeks) (weeks) (date)

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Progress Bar

Critical Activity

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OrigDur

Piling tender, evaluation & lead time 18Pile caps tender, eval & lead time 24RC structure tender, evaluation & lead time 24Brick, plaster & tiling tender, eval & lead time 48Structural steel tender, eval & lead time 72Roofing & wall cladding tender, eval & lead time 60Aluminium & windows tender, eval & lead time 60Doors, frames & hardware tender, eval & lead time 60Misc metalwork tender, eval & lead time 42Painting tender, eval & lead time 30Dry arch tender, eval & lead time 36Roller shutter tender, eval & lead time 72External works tender, eval & lead time 36Floor finishes tender, eval & lead time 60Toilet partitions tender, eval & lead time 60Tiling tender, eval & lead time 60Electrical services tender, evaluation & lead time 60Hydraulic services tender, evaluation & lead time 60ACMV services tender, evaluation & lead time 60Fire services tender, evaluation & lead time 60Lift services tender, evaluation & lead time 60

External works tender, eval & lead time

Electrical services tender, evaluation & lead time

Hydraulic services tender, evaluation & lead timeACMV services tender, evaluation & lead timeFire services tender, evaluation & lead timeLift services tender, evaluation & lead time

Structural steel tender, eval & lead time

Tiling tender, eval & lead time

Toilet partitions tender, eval & lead time

Procurement

Piling tender, evaluation & lead timePile caps tender, eval & lead time

Brick, plaster & tiling tender, eval & lead timeRC structure tender, evaluation & lead time

Misc metalwork tender, eval & lead time

Aluminium & windows tender, eval & lead timeDoor, frames & hardware tender, eval & lead time

Painting tender, eval & lead time

Floor finishes tender, eval & lead time

Roller shutter tender, eval & lead time

Roofing & wall cladding tender, eval & lead time


2.1.2 DESIGN SCHEDULE

As noted in section 2.1.1, the design program evolves out of the procurement andconstruction programs.

It is the responsibility of the Project Manager Delivery to create the design program, andthis should be done before consultants are appointed, as it is the timing contained withinthis program which is required to be committed to by the consultant as part of hisProfessional Services Agreement.

A sample design program is attached. Note that the design program should include theClient Decision making schedule (including client sign off items), such that dates requiredto be met to satisfy procurement and construction related tasks are achievable.

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Early Bar

Progress Bar

Critical Activity

LLA3 Sheet 4 of 7




OrigDur

Preparation of 1:100 Plans, sections, elevations 10LL review 5Issue to all consultants 5Refinement 5BP plans preparation (1:100) 10LL review 5LL issue of AFC (1:100) 15Finishes schedule preparation 5Issue finishes schedule AFC 0Stair drawings (1:50) 15LL review 5Issue AFC stair drawings 0Windows / cladding drawings (1:50) 10LL review 5Issue AFC window / cladding drawings 0Toilet drawings (1:50) 10LL review 5Issue AFC toilet drawings 0Door / hardware schedule & drawings (1:5 & 1:20) 10LL review 5Issue AFC schedule /drawings 0Reflected ceiling drawings (1:50) 5LL review 5Issue AFC ceiling drawings 0Tile layout drawings (1:50) 5LL review 5Issue AFC tiling drawings 0Miscellabeous details / drawings 10LL review 5Issue AFC details / drawings 0

Prepare piling / substructure plans 20LLS review 5

DesignArchitectural

Structural

LL review

LLS review

LL reviewIssue to all consultants

Refinement

LL reviewIssue AFC window / cladding drawings

LL review

Issue AFC schedule / drawings

LL reviewIssue AFC ceiling drawings

Tile layout drawings (1:50)LL reviewIssue AFC tiling drawings

Miscellaneous details / drawingsLL review

Issue AFC details / drawings

LL review

Reflected ceiling drawings (1:50)

Issue AFC stair drawings

Windows / cladding drawings (1:50)

Toilet drawings (1:50)

Issue AFC toilet drawingsDoor / hardware schedule & drawings (1:5 & 1:20)

Finishes sechedule preparation

Issue finishes schedule AFC

Preparation of 1:100 Plans, sections, elevations

LL issue of AFC (1:100)

BP plans preparation (1:100)LL review

Stair drawings (1:50)

Prepare piling / substructure plans

Plumbing & Sanitary

Lift Services

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Early Bar

Progress Bar

Critical Activity

LLA3 Sheet 5 of 7




OrigDur

AC submission 15Issue AFC 3Prepare superstructure plans 25LLS review 5AC submission 20Issue AFC 3

Single line diagram 10LLS review 5CS1 application 5Services coordination 15Issue AFC drawings 20Compile samples 10Order equipment 0



Initial shop drawings 10LLS review 5Final shop drawings 15LLS approval 5Order equipment 5

Electrical Services

Fire Services

LLS review

Order equipment

Final shop drawings

LLS approval

LLS review

Initial shop drawings

Issue AFC drawings

Schematic diagramLLS review

Issue AFC drawings

LLS reviewSchematic diagram

Services coordinationIssue AFC drawings

Single line diagramLLS review

CS1 application

AC submission

AC submissionIssue AFC

Prepare superstructure plansIssue AFC

Compile samplesOrder equipment


Order equipment

Compile samples


Order equipment

Compile samples

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OrigDur

Lift car finishes etc 10Order lift car finishes 0

Lift car finishes etc

Order lift car finishes

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LLA3 Sheet 1 of 7




OrigDur

Sign off drawings for JTC submission 1Sign off drawings for BP submission 1Sign off finishes schedule 3Sign off door / hardware schedule 3Client approval of elec fittings / fixtures etc 5Client approval of fire services samples 5Client approval of sanitary wares etc 5Client approval of lift finishes 5

ClientClient Decisions

Sign off drawings for JTC submissionSign off drawings for BP submission

Sign off finishes schedule

Client approval of elec fittings / fixtures etcSign off door / hardware schedule

Client approval of fire services samplesClient approval of sanitary wares etc

Client approval of lift finishes

2.2 ADMIN - Controls

2.2.1 Project Filing

2.2.2 Document Controls

2.2.3 Project ControlGroup Meetings

2.2.4 Minutes of Meetings

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Admin / Quality

2.2.1 PROJECT FILING

2.2.1.1 General

The following applies to the above systems, whether manila folders, post binders orcomputers. Correspondence must be :-

• filed in an ascending chronological fashion, i.e. most recent to the top of the file;

• filed regularly, preferably weekly and maintained in good care and storage;

• kept free of anecdotal, hand written comments (such comments can be tested in acourt).

• Centrally filed (as opposed to filed in personal files);

• ‘Guard Filed’ for large design commissions/site documents. The Guard File purpose issecurity, accordingly it must be maintained separate to normal project / commissionfiles.

Computer files / data stored by electronic / magnetic media in lieu / in addition to hardcopy must be :-

• uniquely identified and stored in a manner that provides data security.

• Backed up weekly (maximum) and stored in safes agreed with the Branch FinanceController.

Computers must utilise a password and the normal operator must be responsible for :-

• allocation, safekeeping and changing passwords as required.

• Registering current passwords with their Manager in the event of their absence.

• Individual passwords to files when sharing a common general password on sharedcomputers.

Employees must ensure no correspondence (written or electronic) discoverable in legalproceedings can be construed as defamatory or making admissions. E-Mail messagesmust, in this instance, be treated as correspondence and as such important E-Mailmessages to a project should be printed and the hard copy put into the project files.

Care must be taken :-

• not to use E-mail for private gain (e.g. unauthorised use as a “For Sale” board orsimilar);

• not to modem link any Company computers to outside IT systems without authorisationas this could allow the admission of a computer virus into the Company’s IT systems.


2.2.1.2 Distribution

Originals of correspondence do not require Branch filing unless requested by a OpeationsManager. The onus rests on the person signing / receiving correspondence to distributesame to persons on site / in Branch who should be aware of such correspondence.

2.2.1.3 Electronic Filing

Electronic filing shall in general follow the same principles as manual filing. All electroniccorrespondence should be kept in a series of site folders, in accordance with the attachedfiling index

All pieces of electronic documentation produced must have the computer drive reference,project name, file no and date recorded in the footer of the document, so that retrieval canbe readily achieved.

Eg.C / Schering Plough DPI / A1 / 01 20 th September, 1998

Drive / Project / File no / document within the file Date

2.2.1.4 Manual Filing

The format of the electronic filing system shall be used as the basis of the manual system.If required, this may be expanded, but overall headings shall remain as stated in section2.2.1.3

2.2.1.5 Archiving

Upon completion of the project, the Project Manager Delivery shall be pack the files intoarchive boxes duly referenced with description of the contents and arrange for these to besent to the nominated storage centre.

2.2.1.6 Sub-Contract filing

Upon signing the sub-contract, the documents shall be stored in the nominated filing areaby the Secretary who prepares the documents.

When the Contract is concluded, i.e. upon signing the Certificate of Release and all retentionamount released to the sub-contractor, the files will then be archived and stored for aperiod of 7 years, or as required by the particular country.

2.2.1.7 Financial filing

These files shall be the responsibility of the Accounts Department. Financial filing shallcover the following :

• Job Data Sheet• Progress Claims• Client Variations• Budget Transfers• Cost Cards• Purchase Orders and Order Amendments• Insurances


Copies of these files shall also be kept by the Project Manager Delivery on site.

2.2.1.8 Head Contract filing

Client or Head Contracts shall be stored in the fire proof filing cabinet in the AccountsDepartment.

Contracts can be referenced in the Accounts Department but should not be removedexcept for immediate use.

2.2.1.9 Cost Reporting filing

Project cost reports shall be stored in the Accounts Department. Access to these files isrestricted.

2.2.1.10 Drawings and As-Built filing

Project drawings shall be stored on drawing racks. It is the responsibility of the ProjectManager Delivery to set up and maintain the drawings.

When the projects are completed, the Project drawings will be superseded by the As-builtdrawings.

2.2.1.11 Estimating and Cost Planning filing

All estimating and cost planning files are kept by the respective project Estimator / CostPlanner. Access to these files is restricted.


PROJECT FILING INDEX

DESIGN MANAGEMENT FILES

A CLIENT BUILDING STRUCTUREA1 Correspondence I Demolition / Site EarthworksA2 Fax I1 CorrespondenceA3 Weekly Meeting / Handover I2 Tender / Contract DocumentationA4 PCG Reports / Minutes I3 VariationsA5 Presentations 14 Progress ClaimsA6 Submissions 15 MiscellaneousA7 Miscellaneous

J PilingB LEGAL / CLIENT FINANCIAL J1 CorrespondenceB1 Contract J2 Tender / Contract DocumentationB2 Variations J3 VariationsB3 Progress Claims J4 Progress ClaimsB4 Insurance J5 Miscellaneous

C AUTHORITIES K R.C.WorksC1 JTC K1 CorrespondenceC2 URA K2 Tender / Contract DocumentationC3 MINDEF K3 VariationsC4 BCD K4 Progress ClaimsC5 PWD / BSL K5 MiscellaneousC6 FSBC7 CBPU L Structural & Architectural SteelworksC8 NPB L1 CorrespondenceC9 TELECOM L2 Tender / Contract DocumentationC10 POWERGRID L3 VariationsC11 PUB – Water Supply L4 Progress ClaimsC12 LTA L5 MiscellaneousC13 BCD – CulvertC14 Miscellaneous M Roofing / RW Cladding

M1 CorrespondenceD DESIGN / ESTIMATE M2 Tender / Contract DocumentationD1 Design Meeting Minutes M3 VariationsD2 Design Program M4 Progress ClaimsD3 Design Fees M5 MiscellaneousD4 Drawing RegisterD5 Design Miscellaneous N WET ARCHITECTURAL WORKSD6 Estimate N1 CorrespondenceD7 Subcontract Cover N2 Tender / Contract DocumentationD8 Management Reviews N3 VariationsD9 Cost Reports N4 Progress Claims

N5 MiscellaneousE ARCHITECTURALE1 Correspondence O DRY ARCHITECTURAL WORKSE2 Miscellaneous O1 Correspondence

O2 Tender / Contract DocumentationF STRUCTURAL / GEOTECHNICAL O3 VariationsF1 Correspondence O4 Progress ClaimsF2 Miscellaneous O5 Miscellaneous

G M&E DESIGN MECHANICAL & ELECTRICALG1 Correspondence P Air ConditioningG2 Miscellaneous P1 Correspondence

P2 Tender / Contract DocumentationP3 Variations

CONSTRUCTION MANAGEMENT P4 Progress Claims

FILES P5 MiscellaneousH PRELIMINARIESH1 CorrespondenceH2 Miscellaneous

Asia Projects Operations Manual - Issue 1 / 2.2.1.3 - E-Filing inde xDesign ManagementRevision 2, 28/10/98


Q Electrical W20 Site / ManagementQ1 Correspondence W21 Team Structure & ResponsibilitiesQ2 Tender / Contract Documentation W22 Directory / Contracts / AddressesQ3 Variations W23 RegistersQ4 Progress Claims W24 Site Review MeetingsQ5 Miscellaneous W25 Employment Personnel

W26 Labour/Supervision SchedulesR Plumping & Sanitary W27 Annual LeaveR1 Correspondence W28 Site DiariesR2 Tender / Contract Documentation W29 Diapadation ReportsR3 VariationsR4 Progress Claims W30 FinancialR5 Miscellaneous W31 Cost Report

W32 Design Budgets & PaymentsS Fire Protection W33 Construction Budgets & PaymentsS1 Correspondence W34 TimesheetsS2 Tender / Contract Documentation W35 Intercompany ChangesS3 Variations W36 Targeted BOQS4 Progress ClaimsS5 Miscellaneous W40 Programmes & Controls

W41 Design & ProgrammeT Lifts W42 Overall Target ProgrammeT1 Correspondence W43 Medium Range ProgrammeT2 Tender / Contract Documentation W44 Two Weekly ProgrammeT3 Variations W45 Delay AllocationT4 Progress Claims W46 Material Controls SchedulesT5 Miscellaneous

W50 Quality AssuranceU Others W51 Project Quality PlanU1 Correspondence W52 Project ProceduresU2 Tender / Contract Documentation W53 Quality MeetingsU3 Miscellaneous W54 Training RecordsU4 Progress Claims W55 Auditing RecordsU5 Miscellaneous W56 Non Conformance & Corrective Action Register

W57 Inspection & Test PlansV EXTERNAL WORKS W58 Banking Element & System CommissioningV1 Correspondence Test ResultsV2 Tender / Contract Documentation W59 Standard FormsV3 MiscellaneousV4 Progress Claims X INTERNAL CORRESPONDENCEV5 Miscellaneous X1 Incoming Correspondence

X2 Outgoing CorrespondenceSITE X3 Memorandums

W00 External CorrespondenceW01 Related Correspondence Y COMPLETIONW02 Incoming Correspondence Y1 CommissioningW03 Outgoing Correspondence Y2 Operation & Maintenance Manuals

W10 OCC. Health Safety & Environment Z MISCELLANEOUSW11 Project Safety Plan Z1 Unclassified CorrespondenceW12 Injury RecordsW13 Safety Induction

Asia Projects Operations Manual - Issue 1 / 2.2.1.3 - E-Filing inde xDesign ManagementRevision 2, 28/10/98


2.2.2 DOCUMENT CONTROLS

2.2.2.1 Introduction

The following flow charts have been designed to outline the drawing control proceduresfor a large scale project. These procedures define the project team members responsibilitieswith respect to drawing controls :-

1. AFC (Working Drawings) Procedure2. Specification Procedure3. Drawing Amendments4. Workshop Drawings

Procedures that are mentioned in these flow charts are further expanded on and explainedin the following sections of this document.

It is important to note that the degree of control should be proportional to the degree ofrisk and magnitude of documentation.

Smaller projects need not have the extent of controls that follow. This should be resolvedand agreed with Senior Management at the Pre-construction meeting.

Lend Lease adopts a standard Title Block for all projects which, where used correctly,assists the Project Manager Delivery with the control of drawings.

Examples of standard Title Blocks are attached.

Notes on Title Blocks

• Can be either horizontal or vertical.• Identifies Clients and Consultants.• Identifies the Project.• Identifies the Drawing Details :

• Drawing title• Drawn by• Checked by• Approved by• Coordinated by• Drawing status• Scale• Project no.• Sheet no.• Issue no.

• Identifies the history of the drawing.• Issue no.• Revision no.• Revision description.• Date

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2.2.2.2 AFC Drawing Production & Issue

The procedure for the production and issue of AFC drawings is detailed in Flowchart 1 atthe end of this section.

When a drawing is received from the Consultant it shall :-

• have the name of the draftsman, be signed by the engineer/designer, and shall also besigned by the principal designer of the particular discipline

• have a drawing number and revision number on the drawing. Revision numbers shallbe sequential, and each subsequent revision should

a) Have all amendments since the last revision noted in the amendment box

b) Have all amendments to the drawing clouded.

As described in the flowchart, the Project Manager Delivery upon receiving the drawingfrom the Consultant must :-

• record the date at which the drawing was received (on drawing transmittal), and checkthat the appropriate signatures appear on the drawing

• review the drawing to ensure it meets the design brief and the client’s requirements,using the drawing compliance sheet as a checklist

• carry out a check to ensure the drawings are co-ordinated with other disciplines

• have the cost planner check that the drawing conforms with the cost plan (whereapplicable)

• file document transmittal in the relevant project file.

If the drawing meets the above requirements, the Project Manager Delivery then stampsthe drawings as shown below.

APPROVED FOR CONSTRUCTION

PMD:

CP (Optional.)

SPM:

DATE:

DATE:

DATE:


Once signed and dated by the appropriate Project Manager, the drawing is passed on to the siteteam (via drawing transmittal), and to the Cost Planner if required.

Notes : (1) A drawing shall not be deemed “Approved For Construction” unless thePMD has signed and dated the drawing.

(2) No drawing shall be signed off by the PMD unless it has been approved inwriting / signed by the client

(3) No construction work shall be carried out on site using drawings whichhave not been signed off AFC


DRAWING COMPLIANCE CHECKLIST

Signatures: - Draftsman- Designer- Co-ordinating Consultant- Chief Designer

Co-ordination Checks: - Specification- Previous Issue- Other Consultants;

• Architect• Structural• Mechanical• Electrical• Civil• Hydraulic• Fire• Traffic• Landscaping• Other

Compliance Checks: - Changes noted- Design Brief- Buildability- Safety Risk Assessment- Environmental Requirements- Authority Requirements- Cost Plan


FLOWCHART 1AFC (WORKING DRAWINGS PROCEDURE)

Drawing issued to ProjectManager Delivery by

Consultant

Project Manager Deliveryreceives drawings, has Cost

Planner check, and signs if OK

Project Manager Deliveryreturns to consultant if notacceptable for AFC issue

Revisions carriedout & signed AFC

to consultants

RED STICK SITE STICKFILES

SUBCONTRACTORS SEPIA FILE

PMD AFC's confirms that itmeets Client requirementsPMD then :- Lists Distribution on the incoming transmittal- Lists changes if required and sends to consultants

Site Engineer- Updates drawing register- Updates distribution register- Prints drawings- Distributes Prints


2.2.2.3 Specification Production & Issue

The procedure for specification production and issue is outlined in the following flowchart.In accordance with this procedure, an approved specification shall be signed off by :-

• the Designer;• Specification Writer;• Project Manager Delivery;• Cost Planner• Relevant Site Engineer

Specifications generally should use the Lend Lease Asia standard specifications, howeverthese must be modified by the Project Manager Delivery from time to time to reflect changesto contract conditions and industry practices.

Copies of the LLA standard specifications are kept in the Lend Lease Singapore office onthe project file server computer network


FLOWCHART 2SPECIFICATION PROCEDURE

REVIEWED AND SIGNEDOFF BY DESIGNER ANDSPECIFICATION WRITER

ISSUED TO PROJECTMANAGER DELIVERY

REVIEWED BY PROJECTMANAGER, COST PLANNER

AND SENIOR SITE ENGINEER

CONSULTANT AMENDSSPECIFICATION

CONSULTANT PRODUCESSPECIFICATION USING LLA

STANDARD AS A BASE DOCUMENT

DOES SPEC. COMPLY WITHDRAWINGS, CONTRACT

CONDITIONS AND SCOPEOF WORKS

SPECIFICATION SIGNEDOFF BY :-- PROJECT MANAGER- SITE ENGINEER- COST PLANNER

ORIGINAL RETURNED TOCONSULTANT

PROJECT MANAGERRETAIN COPIES

NO


2.2.2.4 Amendment to Drawings

The procedure for amendment to drawings is detailed on Flowchart No. 3.

All amended drawings should have changes noted and issue no’s revised. In addition,any drawing previously issued “For Tender” or “For Construction” should have all changesclouded on subsequent revisions.

The Project Manager Delivery should again use the “drawing compliance checklist” inchecking the drawing prior to issue.

FLOWCHART 3DRAWING AMENDMENTS

AMENDMENT MADE TO DRAWINGBY CONSULTANT

ISSUE NUMBER ON TITLE BLOCKCHANGED TO NEXT LETTER

(E.G. ‘D’ TO ‘E’)

NATURE OF AMENDMENT NOTEDIN AMENDMENT COLUMN ABOVE

TITLE BLOCK

CLOUD ALL CHANGES ANDREFERENCE BACK TO NOTES IN

AMENDMENT COLUMN

ISSUE DRAWING TO SITE


2.2.2.5 Drawings Received

A record of all the drawings that have been issued to site must be kept on the project. Thisregister must be updated weekly and a full drawing register must be generated monthlyfor review.

The Project Management office shall also establish and maintain a drawing register. Theregister shall be verified against the site register monthly.

An example of a drawing register is shown in Section 2.5.3.

2.2.2.6 Drawings Reviewed

When Incoming AFC Drawings arrive on site, they are stamped “received” by the ProjectManager Delivery for review.

The PMD must review the drawings for the following :-

i) Drawing approval by Consultant.

ii) Scope changes which are to be recorded on the scope change / variation register /issues tracking sheet (where relevant) and into Notification of Delay file (where relevant).

iii) Holds clouded and recorded on the drawing revision.

iv) Safety notes to ensure risks are highlighted and if practical refer to Safe Work Practices(SWP).

2.2.2.7 Red Stick

The “red stick” is a stick of drawings containing all the latest amended and new drawings,in the form of prints, and is titled “red stick”, so as to reinforce the urgency and importanceof its existence. It’s purpose is to provide a quick reference to site staff of new and reviseddrawings both AFC and for tender, in an easily accessed manner.

The new and revised drawings that are placed into the “red stick” need to be viewed by allapplicable staff within a certain time limit so as to only keep the “red stick” containing the“latest” drawings.

A sheet of paper (A4 size), known as the cover sheet, will be placed on the front of each“red stick” and have listed all names of site staff for each facility.

After viewing the prints in the stick, the Site Engineer (for example) will sign and dateagainst his / her name. Drawings in the redstick will only be available for 7 days and thecover sheet will be replaced every time the redstick is updated.

It is the responsibility of the site staff who are required to view and sign off the drawings,to go to the drawing bench, view the drawings and sign against their name within the timespecified.

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RED STICK COVER SHEET

DATE: DAY:

DISTRIBUTION TO:

ENGINEERS FOREMAN OTHER STAFF

DRAWING NO ISSUE AFC DRAWING TITLE NOTES ACTION


2.2.2.8 Drawings Distributed

Following the stamping of receipt of the drawing by Lend Lease, and after the review bythe relevant team members, a record of all drawings issued out must also be kept.

These records are in the form of a Document dispatch file.

All drawings that are sent from the site office are accompanied by a Document DispatchAdvice (refer attached). The Document Despatch Advice forms are made up of selfcarbonating paper with 2 pages making up one document despatch advice form. A flowchart illustrating the distribution of document despatch advice’s is attached.

Drawings or documents being issued by Lend Lease (with the white copy of the documenttransmittal attached), will then be placed into the receivers corresponding pigeon holesituated in the Lend Lease site office, or taken personally to the receiver by a Lend Leasesite personnel or by mail. Pigeon holes will be labeled as to what organisation theyrepresent. All consultants, sub-contractors, the client, architect etc, who have beendesignated a pigeon hole will be notified as to what the system is regarding outgoingdrawings and they shall then be responsible for regularly and frequently checking theirpigeon hole for documentation.

If the destination is remote from site then the documents are mailed, or couriered in thecase of urgent document transmission.

FLOWCHART 4DISTRIBUTION OF DOCUMENT DESPATCH ADVICE FORM

DOCUMENT DESPATCHWRITTEN BY ASSISTANT

OR SITE ENGINEER

ACCOMPANIESDOCUMENT

MAIN LEND LEASE FILEFILED AS FOLLOWS:-A) SUBPROJECT TEAMB) CONSULTANT/ SUBCONTRACTORC) CHRONOLOGICALLY


DOCUMENT DESPATCH ADVICENo. 00001

SENT TO: _____________________________ Project/File No. _________________

_____________________________ Date ____ / _____ / 19 ________.

ADDRESS: _____________________________

_____________________________

ATTENTION: _____________________________

COPIES DRAWING No. ISSUE TITLE/REMARKS ETC.

REASON FOR THIS DESPATCH

SENT BY (tick service required)

Messenger / Courier

Mail

Taken Personally

Branch Mail


2.2.2.9 Drawings Stored (Site stick files)

The following flowchart illustrates a sample stick filing system on site. All stick files mustbe centrally located in the vicinity of the plan bench area.

The sticks will hold all the latest issues of drawings submitted. When new and reviseddrawings are submitted, the prints taken for the site sticks will replace any previous issueof that drawing number. The superseded print is stamped with a “superseded” stamp andthen removed from the sticks and the revised issue of that drawing put into the stick in itsplace.

Prints and / or sepias that become superseded should be kept and filed into horizontalcabinets situated near the plan bench area.

2.2.2.10 Drawings Stored (Sepia files)

On large scale projects, all drawings (excluding file details and tender drawings) that areissued to Lend Lease and arrive at the Site Office shall be in the form of a sepia. This is acopy of the original drawing on trace, to a transparent filing called sepia paper so as toallow the drawing to be copied easily to a paper print form. Sepia paper is also verydurable.

After copies of the new or updated sepia have been taken for the red stick and other sitesticks and copies taken for distribution, the sepia will have a plastic hanging strip stuck tothe title box end of the sepia and be placed in vertical cabinets. The project will have aseparate cabinet for each facility. Sepias will be filed according to the relative element. Allfiles must contain the latest revision of all drawings. When a new revision is issued, it willgo into its respective cabinet and sepias stamped superseded. The superseded sepiaswill be divided according to facility and consultant.

A further vertical sepia cabinet will be situated in this area and will contain work shopdrawings. This cabinet will be labeled as such and divided into sub-contractors.

Sepias will be taken out of the cabinet by the assistant for printing purposes only and areto be replaced into the relevant cabinet.

Original returned by PMDor Assistant for distribution

and update of stick file

Architectural

• Plans• Sections/elev• Details

Structural

• Substructure• Superstructure• Steel

Services

• Mechanical• Electrical• Hydraulics• Fire Protection• Security• BMS

As Builts

Pre Post

Stage 1


2.2.2.11 Workshop Drawings

Flowchart 5 is designed to outline the control procedures set in place for workshop drawings.

A tracking sheet is worthwhile keeping (refer to attached example), as this allows thestatus of the workshop drawings to be checked at any point in time.

2.2.2.12 As-Built Drawings

As built drawings are critical to both Lend Lease and its clients. Copies of the as-builtdrawings will be held on site in a quick reference file.


FLOWCHART 5WORKSHOP DRAWINGS

Workshop drawingissued by subcontractor

SITE ENGINEER RESPFOR TRADE• Notes distribution• updates register• stamps sepia• files transmittals• completes transmittal to consultant

CONSULTANTStamps approval or

comments as requiredand returns to Lend

Lease

Print of approvedworkshop drawing

returned tosubcontractor

ENGINEER RESPONSIBLEAssesses if drawings can be

approved & stamps asapplicable

ENGINEERUpdates register

Takes copy for S/C

Modificationsrequired

Original into file ofapproved shop

drawings

LEND LEASEPrint to Site file(unapproved)


Shop Drawing Tracking Sheet

Project: Project No:

Project Manager Delivery:

Contractor:

Discipline:

Drawing Nos.

Programmed Actual Programmed Actual

Received Received Issued Issued

Lend Lease Site

Lend Lease PMD

Blank

Blank

Blank

Lend Lease PMD

Lend Lease Site

Comments:


2.2.3 PROJECT CONTROL GROUP MEETINGS

PCG’s examine the way particular project or issues are being managed. They are theBoard of Directors for a project or issue, there are 2 types;

• External• Internal

External PCGs

Generally, projects undertaken by the Company have an External PCG comprisingcompany and Client representatives. External PCGs should meet four to six weekly forthe project duration.

The Chairperson and key Company people should be nominated by the OperationsManager, but on larger projects or Lend Lease projects, the CEO may nominate.

The Client should be encouraged to nominate its key people, at the highest decisionmaking level practical. The Client may also nominate/influence the selection of theChairperson and the attendees.

Internal PCGs

Some projects as nominated by the Company, may also have an Internal PCG establishedto meet and discuss issues approximately 1 week prior to the External PCG. The OperationsManager or CEO will appoint the Internal PCG membership and nominate its authority.

General

PCG’s are formal in nature with Agendas and Reports including Procedural, Authorities,Design, Procurement, Construction, Programme, Financial, Quality Assurance EH&S.The attached is a sample format for the first PCG of a Project.

The PCG must not assume the role of Project Manager. It must review, approve, modifyor reject proposals placed before it. It must not manage.

As a general rule, PCGs do not approve expenditure for money. Where a Client’srepresentative is present at a PCG and gives approval to a proposal, the Company mayonly proceed with the proposal when it is contractually authorised and paymentmechanisms are agreed.

The Project Manger, or Project Manager Delivery on construction only projects, isresponsible for scheduling PCG meetings and the preparation and distribution of Agendas,Reports and Minutes.

Asia Projects Operations Manual - Issue 1 / 2.2.3 - Sample PCGDesign ManagementRevision 2, 28/10/98

Sample Format of the First PCG



PROJECT CONTROL GROUP

MEETING NO. 1

TO BE HELD ON DAY and DATE of PCG

Time of PCG

In The Offices of Client or Lend Lease Address

Attendees :

Client Representatives Client Name

LL Representatives Lend Lease


AGENDA

1.0 Introduction (usually “Minutes of Previous PCG Meeting”)

2.0 PCG Procedures (usually “Matters Arising from Previous Minutes”)

3.0 Authorities

4.0 Design

5.0 Construction

6.0 Contractual & Financial

7.0 General Matters

APPENDICES

A. Minutes of Previous Meeting

B. Authorities Register

C. Design Schedule

D. Drawing Register

E. Overall Project Schedule

F. Progress Photographs

G. Extension of Time Register - Client

H. Variation Register - Client

I. Progress Claim Register


1.0 INTRODUCTION (USUALLY “MINUTES OF PREVIOUS MEETING”)

The Project Control Group (PCG) is formed to ensure that both Client Name and Lend Leasemanagement maintain a consistent overview of the project and have a reasoned involvementin major decisions. In this sense, the PCG could be considered as a project “Board ofDirectors”.

The PCG therefore meets on a regular basis (usually monthly) to:-

• review presented reports and submissions• accept such presentations and reports• give overall directions, make decisions and give approvals• resolve different viewpoints• refer items back to the Project Team for additional work or resolution.

An important function of the PCG is to receive reports on the overall status of the project.While this function may give rise to issues for consideration by the Project Team, the PCG isnot intended to be a problem solving forum.

Section 1.0 usually contains reference to the minutes of the previous PCG meeting.


2.0 PCG PROCEDURES (USUALLY “MATTERS ARISING FROM PREVIOUS MINUTES”)

(i) Timing

PCG meetings are usually held on a monthly basis, with extra meetings being calledshould the need arise. The timetable for forthcoming meetings is agreed at theconclusion of each meeting.

(ii) Minutes and PCG Papers

The LL Project Manager is responsible to act as secretary to the PCG.The major tasks include:-

• taking minutes of PCG meeting and distributing same within one week of the meeting.

• preparing the agenda and PCG papers for the forthcoming meeting and distributingsame three working days before the meeting.

• organizing the venue for the PCG meeting.

(iii) Meeting

The PCG meeting is intended to be run on a formal basis with a nominated chairperson.Together with actions arising out of general business in the meeting, resolutions will beput for each report seeking acceptance of that report by the meeting.

Action : Nomination of Chairperson.

(iv) Format

The format of the PCG meeting is as proposed in the Agenda. The PCG papers willalso follow this format, with the body of the report containing summary informationonly. Details and supplementary data and programmes will generally be contained in aseries of Appendices to the main reports.

Typically, the following information is contained in Appendices:-

• Minutes of Previous Meeting• Authorities Register• Design Schedule• Drawing Register• Overall Project Schedule• Progress Photographs• Extension of Time Register• Variation Register• Progress Payment Schedule

As the project progresses, the agenda of the PCG can be tailored to suit the needs ofthe project. For example, a section dealing with “Completion and Handover” will beadded as we near that stage of the project.


3.0 AUTHORITIES REPORT

(i) General

This section of the PCG Report provides an overview of the status of the approvals ofthe Authorities having jurisdiction over the project.

For each of the various Authorities, the following information will be reported:-

• name of Authority• approval required• responsibility for submission• form and time of submission for approval• status of approval• approval date• conditions of approval.

This information is required for the Authorities Register which will be included in theAppendix and will be updated at each report.

The bodies from whom approvals will be sought will include:-

• a• b• c

(ii) Current Status


4.0 DESIGN REPORT

4.1 Introduction

This report aims to identify the status and progress of all aspects of the design and will bethe mechanism for seeking of key approvals.

Reporting of the following elements will be included:-

• Architectural Design• Structural Design• Services Design• Process Design• Design Consultants Quality Inspections

Approvals will be sought from Name of Client :-

• Documentation for Construction• Schedules of Internal and External Finishes• Various materials selections.

The approval process for each element can be agreed between Name of Client and LendLease over the next month.

4.2 Current Status

The design status of Project Name can be described as follows :-

4.2.1 Conceptual Design & Authority Submission Design

4.2.2 Design Development for Tender

Architectural Design• a• b.

Structural Design• a• b.

Services Design• a• b.

Process Design• a• b.

4.2.3 Detail Design for Construction

• a• b• c.


5.0 CONSTRUCTION REPORT

5.1 General

This section reports on progress and status of the following items:-

• progress of major activities since last report• status versus overall programme• delays incurred since last report and cumulatively• procurement of materials and sub-contract packages• status of Client inspections of works.

As construction progresses, photographs of the project will also be included in each PCGReport.

5.2 Current Status

Construction Activities

Major Construction Activities are :-• a• b• c.

Investigation of site conditions involves :-• a• b• c.

First major construction activity involves construction of :-• a• b• c.

Second major construction activity involves construction of :-• a• b• c.

Third major construction activity involves construction of :-• a• b• c.

Procurement

Tenders already let out:-• a• b• c.


Tenders out for pricing are:-• a• b• c.

Tenders currently being prepared:-• a• b• c.

Programme

The overall project schedule is attached in Appendix E and is marked up to reflect the currentstatus.


6.0 CONTRACTUAL & FINANCIAL REPORT

General

This section deals with contractual and financial matters in relation to the Agreements betweenName of Client and Lend Lease on the project. Matters reported will included:

6.1 status of contract6.2 status of progress claims and payments6.3 forecast final project costs6.4 variations and provisional sums.6.5 other administrational matters including insurances, bank guarantees etc.

6.1 Current Status

The current contract financial status is reported as follows :-

$• Original Contract Value _____________

including Provisional Sums ($ _________ )

• Contract Sum Adjustments (Refer Appendix _____ )

• Forecast Provisional Sum Adjustments _____________

• Approved Variations _____________

• CURRENT CONTRACT VALUE _____________

• Pending Variations _____________

• Variations identified but not submitted _____________

• Forecast Final Contract Sum _____________

6.2 Status of progress claims and payment

The progress claim and forecast castflow for this month is referred to following table.

Month Value Forecast Cumulative Value Claimed Paid$ $ $ $

Advance Payment 0 0 0 0Month 1 0 0 0Month 2 0 0Month 3 0 0Month 4 0 0Month 5 0 0Month 6 0 0Month 7 0 0Month 8 0 0Month 9 0 0


6.3 Contract Programme Status

Contract Completion Date ______________________

Approved Extensions of Time ______________________

Extensions of Time Pending ______________________

Adjusted Contract Completion Date ______________________

Forecast Completion Date


7.0 GENERAL MATTERS

This section is reserved for matters that are not logically included in other sections of thereport. Typically, these might be:-

• Schedule of future meetings• Name of Client or Lend Lease functions in the near future.• Project ceremonies

7.1 Current Matters

• Future meetings

A Timetable and location to be agreed.


A. Minutes of Previous Meeting

B. Authorities Register

C. Design Schedule

D. Drawing Register

E. Overall Project Schedule

F. Progress Photographs

G. Extension of Time Register - Client

H. Variation Register - Client

I. Progress Claim Register

APPENDIES

Asia Projects Operations Manual - Issue 1 / 2.2.4 Minutes of MeetingsDesign ManagementRevision 2, 28/10/98

2.2.4 MINUTES OF MEETING

Minutes of meetings must be accurate and detail exactly the required actions, theresponsible party, the date for the completion of the required action and each item mustbe correctly accepted and recorded as being completed.

As a minimum standard the minutes must contain the following :-

• Project Name;• Meeting Reason / Title and Number;• Meeting Venue and Time;• Attendees;• Apologies;• Distribution Listing;• Acceptance of Previous Minutes;• Business/Discussion Items;• Minutes Taken By;• Closing Time of Meeting - Not mandatory.

At all times it is imperative to ensure that all action items are minuted.

When an action item is completed a record of the action occurring is to be recorded in theminutes.

Where possible minutes shall be typed immediately upon completion of the meeting anddistributed, by the accepted project means, as soon as possible after production.

All minutes of meetings shall be in the hands of all attendees at no later than oneworking day prior to the commencement of the next meeting.

Where possible the agenda shall be prepared and distributed to all attendees prior to thecommencement of the meeting.

The party responsible for producing the minutes of meetings is that person nominated asthe controller for that particular element of the project.

This person is also responsible for the signing - off of the minuted items.

Asia Projects Operations Manual - Issue 1 / 2.2.4 Minutes of MeetingsDesign ManagementRevision 2, 28/10/98

EXAMPLE ONLY

THE GOLDEN APPLE REFURBISHMENT PROJECT

Minutes of …………….. Meeting No. 2

held on Site at Lend Lease Interiors Site Office25 Crab Apple Drive, Greensward

At 9:00 am 25th January, 1994

PRESENT :

APOLOGIES Nil

DISTRIBUTION : Those PresentFile A3


1.0 MINUTES OF PREVIOUS MEETING

1.1 Minutes of the previous meeting were accepted as atrue and accurate record, except as noted below : Note -

GA Inc. commented re. Minute 1/3.11 that the proposalmust comply with GA Inc. Standard for Ergonomics. Note -

2.0 DESIGN

2.1 ……………

Meeting closed at 11:35am

Next meeting to be held 9:00am 22nd February, 1994 at GA Inc. Head Office.

Signed : _________________________ Date : ______________________

2.3 COST - Procurement/Commitments

2.3.1 Professional ServicesAgreements (PSA)

2.3.2 Cost Planning

Asia Projects Operations Manual - Issue 1 / 2.3 - ProcurementDesign ManagementRevision 2, 28/10/98

Cost - Procurement/Committments

2.3.1 PROFESSIONAL SERVICE AGREEMENT

GENERAL

Even though the Company subcontracts most of its head contract obligations, engagingconsultants does not relieve the Company of its responsibility for performance of theseobligations (unless a limitation of liability is expressly included in the head contract).

The Professional Services Agreement is the form of contract that we currently use toengage our consultants.

It is the Project Manager’s responsibility to identify Head Contract conditions different toour standard PSA conditions and ensure they are managed or incorporated in PSAs. TheCompany Procurement Skill Module deals extensively with issues in this section.

STANDARD FORMATS

There are four PSAs versions applicable to Lend Lease as a whole, however, the twomost frequent PSA’s used are

• Design Services - major works• Design Services - minor works

A copy of both of these types of PSA’s is attached, together with typical appendices thatmay be used as a base for structural and architectural engagements. The other two PSA’sused on a less frequent basis are one for LLDG and one for Non-Design services (e.g.Wind Tunnel Tests, Acoustic Reports, etc.).

Prior to tendering or negotiating Professional Services Agreements with consultants, a“Project specific base Agreement” to reflect the head contract must be developed by theProject Manager in consultation and with approval of the Operations Manager and theRegional Legal Officer. Based on the appropriate standard PSA version, the followingmatters, as a minimum, must be considered in its preparation :-

• Head Contract method of payment for design which may significantly affect consultantfees;

• Head Contract provisions in relation to design. These should be incorporated intoagreements and may include document insurance, professional indemnity insurance,copyright, reports, etc;

• Particular requirements for management systems including QA and EH&S

The Operations Manager must approve any changes to the conditions of standard PSAs.Amendments to PSA schedules must also be authorised by the Operations Manager.

Checklists for Schedule A requirements in the PSA are available in the LLPS Blue Book(Procurement / 08b Guidelines).

PROFESSIONAL SERVICES AGREEMENT

BETWEEN

LEND LEASE (SINGAPORE) PTE LTD

AND

[CONSULTANT]

PROJECT : [ ]

To Be Used For All AgreementsWith External Architectural and Engineering Consultants

Asia Projects Operations Manual - Issue 1 / 2.3 - Sample PSA (Long Form)Project Management / Page 1


INDEX

Clause No. Subject Page

Agreement 3

1 Definitions 4

2 The Services 4

3 Performance of the Services 4

4 Lend Lease Singapore’s Role 6

5 Scope of Responsibility 8

6 Insurances 8

7 Fees and Payment 9

8 Copyright 9

9 Environment, Health and Safety 9

10 Quality 9

11 Confidentiality 9

12 Conflict of Interest 10

13 Termination 10

14 Notices 11

15 Assignment and Subcontracting 11

16 Interpretation 11

17 Arbitration 11

18 Entire Agreement 11

19 Millenium Warranty 11

Schedule A The Services 13

Schedule B Fees and Hourly Rates 14

Schedule C Personnel and Representatives 15

Schedule D Miscellaneous Items 16




THIS AGREEMENT is made the..................... day of ......................... , 19 ............... between thefollowing parties:

1. LEND LEASE (SINGAPORE) PTE LTD of 510 Thomson Road #06-01 SLF BuildingSingapore 298135 (“LLS” ); and

2. ........................................................................................................................................... of............................................................................................................... (the “Consultant” )

RECITALS

A. LLS has been engaged by the Client to commence the design of the Project to be located atthe Site.

B. The Client and LLS are negotiating / have entered into the Head Contract whereby it isintended that LLS will design and construct the Project.

C. LLS wishes to engage the Consultant on behalf of the Client to perform the Services and theparties have agreed that the Consultant will perform the Services on the terms set out herein.

THE PARTIES AGREE

1. The Consultant must provide the Services in accordance with this Agreement.

2. LLS must pay the Consultant the Fees due in accordance with this Agreement.

3. The Agreement means:

(a) this page;

(b) the Conditions annexed hereto; and

(c) Schedules A, B, C, and D annexed hereto.

SIGNED for Lend Lease (Singapore)Pte Ltd ......................................................

SIGNED for the Consultant ......................................................



THE CONDITIONS

1. DEFINITIONS

In this Agreement, unless the context requires otherwise:

“Client” means ..............................................................................................................................

“Fees” means the fees payable for the Services as set out in Schedule B, as adjusted in accordancewith this Agreement.

“Head Contract” means the contract or contracts entered into, or to be entered into, between theClient and LLS under which LLS will execute certain work and of which the Services form part.

“losses” include losses, costs, expenses, damages and liabilities of whatsoever kind.

“Project” means the project to be completed by LLS under the Head Contract and of which theServices form part.

“Services” means the services referred to in Schedule A of this Agreement.

“Site” means the land, buildings or other places made and to be made available to LLS by theClient for the purposes of the Head Contract and any other land, buildings or places which LLSadvises the Consultant form part of the Site.

2. THE SERVICES

2.1 The Consultant must provide the Services described in Schedule A and any servicesnecessarily incidental thereto in accordance with this Agreement.

2.2 Unless otherwise instructed in writing by LLS, the Consultant must commence the Servicesnot later that the date set out in Schedule D.

2.3 Where the Services have been commenced prior to the date of this Agreement the provisionsof this Agreement will apply as if those Services had been commenced after the date hereof.

2.4 If Schedule A prescribes the provision of the Services in stages, the Consultant must notcommence a stage, other than Stage 1, without the prior written approval of LLS. LLS mustprovide written approval to the Consultant prior to requiring it to commence a stage otherthan Stage 1. LLS will not be obliged to pay the Consultant for any Services performedwithout this written approval.

3. PERFORMANCE OF THE SERVICES

3.1 LLS’s Requirements, Information, Co-ordination

3.1.1 The Consultant must take all steps necessary to clarify and confirm LLS’s requirementsfor the Services.

Asia Projects Operations Manual - Issue 1 / 2.3 - Sample PSA (Long Form)Project Management / Page 4Revision 2, 28/10/98

Before proceeding to detailed work for any design or drawing the Consultant must firstobtain LLS’s approval to its proposed concept design(s).

3.1.2 The Consultant must examine the information and documents relating to the Projectreferred to in Clause 4.1.1 and, subject to this Clause 3.1.2, will be deemed to havesatisfied itself of their sufficiency for the purpose of satisfying its obligations under thisAgreement. If the Consultant is not so satisfied it must advise LLS immediately inwriting requesting the further information, documents or amendments it requires.

3.1.3 The Consultant must perform the Services so as to meet the requirements of theinformation and documents provided by LLS under Clause 4.1.1 including anyamendments thereto requested by LLS or requested by the Consultant and acceptedin writing by LLS.

3.1.4 If requested by LLS, the Consultant must provide LLS with a detailed programme anda schedule of its resources showing to LLS’s satisfaction how it intends to comply withany programme provided under Clause 4.1.1.

3.1.5 The Consultant must co-ordinate its performance of the Services with other consultantsand contractors engaged by LLS. Without limiting the generality of the foregoing, theConsultant must provide without charge to other consultants and contractors engagedon the Project drawings / diskettes and other documentation relating to the Servicesas may be reasonably required by them.

3.2 Matters Likely to Change or Delay the Services

If the Consultant becomes aware of any matter which may change or delay the performanceof the Services it must advise LLS immediately. The advice must include detailed particularsof the likely change or delay and recommendations to minimise any adverse effect from it.

3.3 Nominated Personnel

3.3.1 The Consultant must ensure that subject to events beyond its control the personnellisted in Schedule C are the key personnel performing the Services.

3.3.2 The Consultant must not change any of its personnel listed in Schedule C without theprior written consent of LLS.

3.3.3 LLS may make at any time reasonable objections to any of the personnel listed inparagraph 1 of Schedule C and to any replacement personnel. Upon receipt of awritten objection from LLS, the Consultant must use its best endeavours to replace theperson or persons to whom objection has been made.

3.4 Consultant’s Representative

The person referred to in paragraph 2 of Schedule C is the Consultant’s authorisedrepresentative for all the purposes of this Agreement. The Consultant must advise LLS inwriting prior to changing its authorised representative.

3.5 Professional Services

3.5.1 The Consultant must perform the Services with the degree of professional skill, careand diligence expected of a consultant experienced in providing the same or similar



services. The Consultant acknowledges that LLS has entered into this Agreement inreliance upon the Consultant’s representation that it has the skill, experience and abilityto provide the Services.

3.5.2 The Consultant must hold all necessary certificates and registrations required inSingapore for it to carry out the Services, and if so required, the Consultant must showto LLS evidence as to the currency of such certificates.

3.5.3 The Consultant must ensure that designs, documents, types of materials and methodsof construction proposed or specified by the Consultant:

(a) are suitable for their intended purposes;

(b) comply with all relevant codes, legislation, ordinances, regulations and SingaporeStandards, unless otherwise instructed by LLS; and

(c) do not infringe any patent, registered design, copyright or other protected right.

3.5.4 In performing the Services, the Consultant must:

(a) have regard to any relevant cost plan or budget for the Project which iscommunicated by LLS; and

(b) advise LLS in respect of reasonable alternative designs or methods.

3.5.5 The Consultant must make site inspections at such periodic intervals as the Consultantmay consider necessary to satisfy itself that the construction works of the Project arebeing executed properly and to enable the Consultant to certify in accordance withstatutory and other requirements the completion of various stages of the Project.

3.5.6 The Consultant must advise LLS and obtain direction if the Consultant becomes awarethat the requirements of this Agreement conflict.

3.6 Design Review

LLS may engage a suitably qualified person to review the designs carried out by the Consultant.When requested by LLS, the Consultant must provide to LLS in a timely manner, all relevantinformation relating to the Consultant’s designs in order that the review may be expedited.

4. LLS’S ROLE

4.1 Information and Documents

4.1.1 LLS must ascertain the Client’s requirements for the Project and will make available tothe Consultant at appropriate times information and documents relevant to the Serviceswhich may include:

(a) design briefs which will define the Client’s requirements;

(b) the programmes, which will set out the key dates for the provision of the Services;


(c) the document schedules based on the programmes, which will set out the dateson which the drawings, specifications and other documents to be provided bythe Consultant are required by LLS; and

(d) cost parameters applicable to the designs to be provided by the Consultant.

4.1.2 LLS must endeavour to provide the further information, documents or amendmentsrequested by the Consultant under Clause 3.1.2 promptly so as not to delay theConsultant in the provision of the Services.

4.2 Instructions

4.2.1 The Consultant must comply with LLS’s instructions unless within 5 working days ofreceipt of an instruction the Consultant advises LLS in writing that it has an objectionto the instruction and sets out therein the nature of the objection. The parties mustdiscuss the objection and then LLS must give a further instruction to the Consultant.

4.2.2 LLS may instruct the Consultant to make changes (including additions, omissions orreductions) to the Services, programmes or document schedules and those changeswill become part of the Services, programmes or document schedules from the date ofeach instruction.

4.2.3 If LLS instructs the Consultant to rectify errors or omissions for which the Consultant isresponsible found in drawings, specifications of other documents prepared by theConsultant, the Consultant must comply immediately with the instruction and reissuethe drawings, specifications or other documents at its own cost.

4.3. Changes to the Services, programmes and document schedules

4.3.1 If the Consultant believes that any change to the Services, the programmes or thedocument schedules should result in any increase to its Fees, the Consultant mustgive written notice of this belief to LLS within 7 calendar days of the change beingnotified to the Consultant. In the Consultant’s written notice to LLS, or as soon aspossible thereafter, it must specify the following:

(a) the reasons for which it claims the increase, and

(b) an estimate of the value of the increase and the calculations therefore.

4.3.2 Any change to the Fees will be based upon the Fees or the hourly rates set out inSchedule B. Where hourly rates are applied LLS may set an upper limit of expenditurewhich the Consultant must not exceed without prior written approval of LLS.

4.3.3 Notwithstanding any other clause in this Agreement, LLS will not be liable for the paymentof any fees in addition to the Fees referred to in Schedule B unless:

(a) the Consultant complies with the notice provisions in Clause 4.3.1, and

(b) the nature and approximate extent of any additional fees and the associatedwork or services are approved in writing by LLS prior to commencement of theadditional work or services (unless this requirement is waived in writing by LLS).



4.4 Approvals by LLS

Approvals given or reviews undertaken by or on behalf of LLS, will not alter or relieve theConsultant of its obligations under this Agreement.

4.5 LLS’s Representative

The person referred to in paragraph 3 of Schedule C is LLS’s authorised representative forall the purposes of this Agreement. LLS must advise the Consultant in writing prior to changingits authorised representative.

5. SCOPE OF RESPONSIBILITY

5.1 Scope of Responsibility

5.1.1 The Consultant indemnifies LLS against all claims, liability or loss in respect of personalinjury (including death) to any person or damage to any property (other than the Project)arising out of or in connection with the Services, to the extent that the same is due tothe negligence or default of the Consultant or its employees, agents or contractors.

5.1.2 The Consultant will be liable for the care of all drawings, specifications and otherdocuments prepared by the Consultant or entrusted to it by LLS until they are returnedby the Consultant to LLS.

5.1.3 The Consultant acknowledges that should it breach this Agreement LLS may incurcosts and suffer losses in connection with the obligations of LLS under the Head Contractincluding but not limited to damages for late completion, delay and disruption costsand rectification costs.

6. INSURANCES

6.1 Employees and Agents

The Consultant must effect and maintain insurance against any liability which may arise atcommon law or by virtue of any relevant workers or accident compensation legislation, inrespect of any person employed by the Consultant in connection with the Services.

6.2 Professional Indemnity

The Consultant must effect and maintain professional indemnity insurance with a limit ofindemnity of not less than the amount stated in Schedule D to this Agreement in respect oflegal liability arising from a breach of professional duty or negligence whether that duty isowed in contract or otherwise by reason of any act error or omission by the Consultant or itsemployees, agents or contractors.

The Consultant must effect this insurance prior to commencing the Services and must maintainit for not less than 6 years after the completion of the Services or the termination of thisAgreement unless it is unable to continue to effect the full insurance during this period andLLS gives written approval to reduce or discontinue the insurance.


6.3 Evidence of Insurance

The Consultant must provide LLS, upon request, with evidence of the terms and currency ofthe insurances referred to in this Clause.

7. FEES AND PAYMENT

7.1 The fees for the Services are those set out in Schedule B (“the Fees” ), as adjusted inaccordance with this Agreement.

7.2 At monthly intervals the Consultant may submit an invoice for the Fees due for Servicesprovided accompanied by information sufficient to allow LLS to verify each invoice to itssatisfaction.

7.3 Subject to the proper performance of the Services, LLS must pay the amount invoiced within1 month of receipt by LLS of each invoice unless any amount is disputed by LLS in whichcase LLS must pay the amount, if any, not in dispute.

8. COPYRIGHT

8.1 Unless otherwise required by the Head Contract, copyright and ownership in all designs andother information provided or prepared by the Consultant under this Agreement remainswith the Consultant.

8.2 LLS and the Client will have a licence to use those designs and information for any purposeassociated with the Project before or after its completion.

9. ENVIRONMENT, HEALTH AND SAFETY (‘EH&S’)

9.1 In performing the Services, the Consultant must:

9.1.1 advise LLS of EH&S hazards associated with designs, documents, types of materialsand methods of construction proposed or specified by the Consultant; and

9.1.2 provide assistance to LLS as reasonably required with regard to amending theConsultant’s designs or other proposals, to achieve solutions to these hazards.

10. QUALITY

The Consultant must prepare and implement to the satisfaction of LLS a quality assurancesystem for the Services in accordance with LLS’s requirements.

11. CONFIDENTIALITY

11.1 The Consultant must keep secret and confidential and must not disclose to a third partywithout the prior written consent of LLS information, data, specifications, drawings, reports,accounts or other documents and things supplied or made available by LLS or the Client to



the Consultant or brought into existence by the Consultant in the performance of or for thepurpose of performance of the Services and must take or cause to be taken such reasonableprecautions as may be necessary to maintain secrecy and confidentiality and preventdisclosure, including obtaining confidentiality agreements in a form satisfactory to LLS fromits employees, agents and subcontractors.

11.2 The Consultant must not advertise, publish or release information to the public concerningthis Agreement, the Services or the operations of LLS or the Client without the prior writtenconsent of LLS (which will not be withheld if the information is legally required to be produced).

11.3 The obligations contained in this Clause will survive the term or termination of this Agreementand will be enforceable at any time at law or in equity.

12. CONFLICT OF INTEREST

The Consultant must inform LLS immediately of any matter connected with the performance of theServices which could give rise to an actual or potential conflict of interest.

13. TERMINATION

13.1 LLS may terminate this Agreement by giving written notice to the Consultant if the Consultantfails to rectify a default under this Agreement within 7 calendar days of a written request fromLLS to do so. Without limiting the generality of the foregoing, a default by the Consultantincludes:

13.1.1 the whole or partial suspension of the Services without reasonable cause;

13.1.2 a failure to proceed with the Services regularly or diligently or in a competent manner;

13.1.3 a failure to comply or an unreasonable delay in complying with a written directiongiven by LLS; or

13.1.4 a failure to proceed with the Services in accordance with the programmes ordocument schedules referred to in clause 4.1.1.

13.2 If LLS’s appointment under the Head Contract is terminated for any reason then this Agreementwill be deemed to be automatically terminated at the same time.

13.3 Notwithstanding any other provision of this Agreement, LLS, for its sole convenience, mayterminate this Agreement by giving 7 calendar days written notice to the Consultant.

13.4 If this Agreement is terminated under Clause 13.1, 13.2 or 13.3 LLS, without prejudice toany other rights or remedies it may have, must pay the Consultant the Fees properly due forthe Services performed to the date of termination. In addition, if this Agreement is terminatedunder Clauses 13.2 or 13.3 and the Consultant is not in default under this Agreement, theConsultant will be entitled to reimbursement for any expenses reasonably incurred by it priorto the date of receipt of the notice of termination in contemplation of it providing the balanceof the Services.

13.5 Upon the termination of this Agreement for any reason the Consultant shall issue a letter ofrelease together with original or certified true copies of drawings, authority submission


approvals and other relevant documents to one or all of LLS, the Client and any relevantauthority, as LLS directs, to enable LLS to appoint a replacement consultant on behalf of theClient to continue with the Services without delay.

13.6 Subject to Clauses 13.1 to 13.5, the parties acknowledge that their rights to terminate thisAgreement are governed by the common law.

14. NOTICES

Any notice given under this Agreement will be given properly if delivered by hand or sent by certifiedmail or facsimile to the address of the party to receive the notice stated in Schedule D (or suchother address as may be notified in writing by one party to the other).

15. ASSIGNMENT AND SUBCONTRACTING

The Consultant must not assign or subcontract this Agreement or any right or obligation thereunderor any part thereof without the prior written approval of LLS.

16. INTERPRETATION

16.1 The headings are for reference purposes only and must not be used in the interpretation ofthis Agreement.

16.2 This Agreement must not be construed to the disadvantage of LLS on the basis of LLSputting forward this Agreement.

17. ARBITRATION

17.1 Any difference or dispute between LLS and the Consultant shall be referred to arbitration bya person to be agreed upon between the parties or failing agreement within 14 days aftereither party has given to the other a written request to agree to the appointment of an Arbitrator,a person to be nominated by the President of the Singapore Institute of Architects at therequest of either party.

17.2 Unless otherwise agreed to by LLS, the Consultant shall continue to carry out the Servicesdespite any reference to arbitration hereunder.

18. ENTIRE AGREEMENT

This Agreement is the entire agreement between the parties for the Services and supersedes allprevious agreements, proposals, representations, correspondence and discussions in connectionwith the Services.

19. MILLENIUM WARRANTY

19.1 The Consultant acknowledges that all subcontracts entered into or to be entered into betweenLLS and any Subcontractor will contain the following warranty in favour of LLS



“The Subcontractor must ensure that all software, hardware and firmware including computerprogrammes, and any other material, facility or device (the “Programs”) contained within theWorks which are in any way affected by dates:

(a) have been specifically designed, programmed and comprehensively tested to providefull functionality and operate without adverse effect with respect to all dates; and

(b) if required by this Subcontract, have been specifically designed, programmed andcomprehensively tested to operate in conjunction with hardware, software and firmwareor any other products or components, not contained within the Works but which havebeen specified by [***] (“other Components”), such that both the Programs and OtherComponents will when operating in conjunction with each other provide full functionalityand operate without adverse effect with respect to all dates; and

(c) will in all circumstances provide full functionality and operate without adverse effectwith respect to all dates; and

(d) will without limitation deal properly with:

(i) the transition from 9 September 1999 to 10 September 1999;

(ii) the transition from 31 December 1999 to 1 January 2000;

(iii) leap years;

(iv) all calculations based on dates, including calculations such as subtractions,additions, percentages, sequences and comparisions; and

(v) functions that are programmed to commence or end on a particular date.

The Subcontractor must ensure that all modifications, including revisions, additions,omissions and upgrades to the Programs must comply with the requirements of thisclause.”

19.2 The Consultant warrants that no specification, drawing, or other material produced by theConsultant pursuant to this Agreement will in any way conflict with the requirements of theabove warranty and that the Consultant will generally provide its Services in such a way asto enable all Subcontractors to comply with the above warranty.

19.3 The Consultant warrants that no failure of the Consultant’s own software, hardware or firmwarein relation to the transition from 31 December 1999 to 1 January 2000 will prevent theConsultant from providing its Services in accordance with this Agreement.

19.4 The Consultant will ensure that the provisions of this Clause 19 will be reflected in allagreements between the Consultant and any sub-consultants it engages in relation to theProject.

Encs.MM/sk


SCHEDULE A

THE SERVICES

The Consultant must perform and provide (and the Fees will be deemed to be paid in respect of)the following specific services and any services necessarily incidental thereto:

Insert as is appropriate either:

a) the Schedule for Architectural Services

b) the Schedule for Civil & Structural Engineer Services, or

c) the Schedule for M & E Services.



SCHEDULE B

FEES AND HOURLY RATES

Insert as is appropriate either:

a) the Schedule for Architectural Services

b) the Schedule for Civil & Structural Engineer Services, or

c) the Schedule for M & E Services.


SCHEDULE C

PERSONNEL AND REPRESENTATIVES

(1) THE CONSULTANT’S PERSONNEL ARE:

(2) THE CONSULTANT’S REPRESENTATIVE IS:

(3) LLS’S REPRESENTATIVE IS:



SCHEDULE D

MISCELLANEOUS ITEMS

1. Date of Commencement of Services :(Clause 2.2)

2. Amount of Professional Indemnity Cover : Five million dollars(Clause 6.2)

3. Address for Service of Notices (Clause 14 ) is as follows:

Lend Lease (Singapore) 510 Thomson RoadPte Ltd #06-01 SLF Building

Singapore 298135Attn : The Managing Director

Consultant

Attn :



(Short Form for minor architectural commissions)

BETWEEN


AND

[CONSULTANT]

PROJECT : [ ]

This is a shor t standard form Professional Services Agreement (PSA) for use for appointingconsultants based on architectural services only. This form of contract may only be usedwith the permission of the appointed Project Director. As a rule, the long form PSA is tobe used at all times.

Asia Projects Operations Manual - Issue 1 / 2.3 - Sample PSA (Shor t Form - Ar chitectural Onl y)Project Management / Page 1


[ LLS LETTERHEAD ]

Consultant

Address ofConsultant

Attn :

Dear Sirs

[ Description of Project ]

On behalf of our client, [ name of client ] , we are pleased to advise that you have been appointedas the architectural consultant for the above project on the terms set out in this letter.

1. FEES AND PAYMENT

You will be paid the lump sum fee of ($ ) for the Services. This Fee is not subject toadjustment except as otherwise stated in this letter.

The Fees will be paid in accordance with the following Schedule of Payments.

% Payable

DC Submission 5Obtaining PP 2.5Obtaining WP 2.5

BP Submission 20BP Approval 15

Commence piling works 5

Construction 40

TOP 5

CSC 5100

2. THE SERVICES

You must provide the following services including any services incidental thereto:



2.1 To prepare, certify and submit the necessary drawings to all authorities concerned and toobtain the necessary clearances and approvals as required by the Planning Act, the BuildingControl Act and all other relevant Acts having jurisdiction over the proposed development.

2.2 To liase closely with the relevant authorities in order to obtain the necessary clearances andapprovals within the shortest possible time frame and in any event not later than the date(s)set out in the attached design programme.

2.3 To prepare detailed drawings or such design input as is necessary for the due and propercompletion of the project.

Before proceeding to detailed work for any design or drawing you must first obtain LendLease’s approval to your proposed concept design.

2.4 To provide all the necessary prints of drawings for submission to the authorities. Uponapproval of the plans, issue to LLS a complete set of certified true copies of the approvalplans.

2.5 To provide copies of preliminary drawings to LLS for comments and 3 copies of approveddrawings for construction. Additional prints, if required, shall be reimbursed at cost.

2.6 To provide without charge drawings / diskettes and other documentation relating to theServices to other consultants and contractors engaged by Lend Lease on the project as maybe reasonably required by them.

2.7 To attend regular site and / or design meetings for proper co-ordination of works.

2.8 To provide professional judgments, statements or opinions as and when necessary.

2.9 To carry out all necessary site inspections in order to endorse the Certificate of Supervisionsand any other certifications required by the authorities.

2.10 To apply to the relevant authorities for the Certificate of Statutory Completion and / orTemporary Occupation Permit upon completion of the works.

2.11 To prepare as-built drawings and issue 2 sets of the drawings to LLS.

2.12 [Consider any other services to be listed having regard to any special conditionsunder the Head Contract......]

3. PROFESSIONAL SKILL

You must perform the Services with the degree of professional skill, care and diligence expected ofa consultant experienced in providing the same or similar services. You must ensure that thedesigns, documents, types of materials and methods of construction proposed or specified by youare suitable for their intended purposes.

4. TIME FOR PERFORMANCE

You must perform the Services in accordance with the design programme attached hereto and anyadditional more detailed programmes issued by Lend Lease from time to time. If for any reason

Asia Projects Operations Manual - Issue 1 / 2.3 - Sample PSA (Shor t Form - Ar chitectural Onl y)Project Management / Page 3Revision 2, 28/10/98

you fall behind any programme Lend Lease may issue a further acceleration programme whichyou must immediately comply with.

If you become aware of any matter which may change or delay the performance of the Servicesyou must advise Lend Lease immediately.

5. COMPLIANCE WITH INSTRUCTIONS

You must comply with all instructions given to you from time to time by Lend Lease in relation to theServices.

6. VARIATIONS

Lend Lease may instruct you at any time to make a change to the Services. If you believe that anysuch change should lead to an increase in your fees, you must give written notice of this belief toLend Lease within 7 calendar days of you being notified of the change. If you do not give suchwritten notice you will not be entitled to any increase in your fees in respect of the change.

7. STATUTORY OBLIGATIONS

You must, at your own expense, comply with and give all notices required by all laws effecting theServices, including Acts of Parliament and subsidiary legislation, codes of practice and requirementsof competent authorities. Upon completion of the Services or upon termination of your appointmentfor any reason, you must surrender to Lend Lease any documents in your possession issued by orevidencing the approval of authorities in connection with the Services.

Without limiting the generality of the foregoing, you must hold all necessary professional certificatesand registrations required in Singapore in order to lawfully carry out the Services.

8. INSURANCES

You must effect and maintain the following insurances:

Professional Indemnity Insurance with an indemnity limit of not less than $5,000,000.

Workmen’s Compensation Insurance insurance for your employees as required underthe Workmen’s Compensation Act, Cap. 354.

You must show evidence of the currency of these insurances at the request of Lend Lease.

9. LIABILITY AND INDEMNITY

You are liable for and shall indemnify Lend Lease against all losses, damages and costs which itmay incur arising out of or in connection with an act or omission by you or by any person withinyour control, including without limitation, any losses and damages suffered by Lend Lease underits Head Contract with the Client.



10. TERMINATION

Lend Lease may terminate your appointment by written notice to you if you fail to rectify a defaultunder this appointment letter within 7 calendar days of a written request from Lend Lease to do so.

In addition, for its sole convenience, Lend Lease may terminate your appointment by giving you 7calendar days written notice.

If the Head Contract between Lend Lease and the Client terminates for any reason then yourappointment shall be deemed to be automatically terminated at the same time.

Upon the termination of your appointment for any reason you must issue a letter of release togetherwith original or certified true copies of drawings, authority submission approvals and other relevantdocuments to one or all of Lend Lease, the Client and any relevant authority, as Lend Leasedirects, to enable a replacement consultant to be appointed without delay.

11. ASSIGNMENT

You must not assign any of your rights under this appointment letter or subcontract any part of theServices without Lend Lease’s consent.

Please signify your acceptance of the terms of this letter of appointment by signing, dating andreturning the duplicate copy of this letter.

Yours sincerely

.......................................................................................................................................................

We, (name of Consultant), hereby accept our appointment under this letter on the terms set outherein.

Signed forand on behalf of[ CONSULTANT ]

......................................................

...................................................... Date : ..........................

Name (please print )

Asia Projects Operations Manual - Issue 1 / 2.3 - Sample PSA (Shor t Form - Ar chitectural Onl y)Project Management / Page 5Revision 2, 28/10/98


(Short Form for minor structural commissions)

BETWEEN


AND

[CONSULTANT]

PROJECT : [ ]

This is a shor t standard form Professional Services Agreement (PSA) for use for appointingstructural engineers. This form of contract may only be used with the permission of theappointed Project Director. As a rule, the long form PSA is to be used at all times.

Asia Projects Operations Manual - Issue 1 / 2.3 - Sample PSA (Shor t Form - Structural onl y)Project Manager / Page 1


[ LLS LETTERHEAD ]

Consultant


Attn :

Dear Sirs


On behalf of our client, [ name of client ] , we are pleased to advise that you have been appointedas the structural engineer consultant for the above project on the terms set out in this letter.

1. FEES AND PAYMENT



% Payable

BP Submission 5BP Approval 5

Piling Submission 10Piling Approval 5Structural Submission 15Structural Approval 5

Commence piling works 5

Construction 40

TOP 5

CSC 5100



2. THE SERVICES

You must provide the following services including any services incidental thereto:

2.1 Design and prepare all necessary structural drawings and other documents including detaileddrawings for authority approvals and for construction of the project.


2.2 Design and prepare all necessary architectural and structural drawings for culvert entranceincluding submission to relevant authority departments for approval of plans. The scope forthis work also includes arranging for inspections and liaison with the relevant authorities forreceipt of the CSC.

2.3 To provide such design input as is necessary for the due and proper completion of theproject.

2.4 To carry out regular site inspections to ensure that construction of the project is being executedproperly.

2.5 To issue all necessary certificates as required from time to time.

2.6 To liaise with authorities and carry out all works necessary to ensure that due approvals andclearances are obtained within the shortest possible periods up to CSC stage and in anyevent not later than the date(s) set out in the attached design programme.

2.7 To provide your professional judgements, statements and opinions and attend meetings asand when requested by Lend Lease.

2.8 Four copies of each drawing and all necessary authority submission drawings to be providedfree of charge. Any additional copy submission drawings to be reimbursed at cost.

You must also provide without charge drawings / diskettes and other documentation relatingto the Services to other consultants and contractors engaged by Lend Lease on the projectas may be reasonably required by them.

2.9 Two sets of as-built drawings to be provided to Lend Lease free of charge upon receipt ofTOP for the project.

2.10 [Consider any other services to be listed having regard to any special conditionsunder the Head Contract........]


You must perform the Services with the degree of professional skill, care and diligence expected ofa consultant experienced in providing the same or similar services. You must ensure that thedesigns, documents, types of materials and methods of construction proposed or specified by youare suitable for their intended purposes.

Asia Projects Operations Manual - Issue 1 / 2.3 - Sample PSA (Shor t Form - Structural onl y)Project Manager / Page 3Revision 2, 28/10/98


You must perform the Services in accordance with the design programme attached hereto and anyadditional more detailed programmes issued by Lend Lease from time to time. If for any reasonyou fall behind any programme Lend Lease may issue a further acceleration programme whichyou must immediately comply with.




6. VARIATIONS





8. INSURANCES


Professional Indemnity Insurance with an indemnity limit of not less than$5,000,000.

Workmen’s Compensation Insurance insurance for your employees as requiredunder the Workmen’s Compensation Act,Cap. 354.






10. TERMINATION





11. ASSIGNMENT



Yours sincerely

.......................................................................................................................................................

We, (name of Consultant) , hereby accept our appointment under this letter on the terms setout herein.


...............................................................

............................................................... Date : ...................................


Asia Projects Operations Manual - Issue 1 / 2.3 - Sample PSA (Shor t Form - Structural onl y)Project Manager / Page 5Revision 2, 28/10/98


(Short Form for combined minorarchitectural & structural commissions)

BETWEEN


AND

[CONSULTANT]

PROJECT : [ ]

This is a shor t standard form Professional Services Agreement (PSA) for use for appointingconsultants based on combined architectural & structural engineering services. Thisform of contract may only be used with the permission of the appointed Project Director.As a rule, the long form PSA is to be used at all times.

Asia Projects Operations Manual - Issue 1 / 2.3 - Sample PSA (Shor t Form - Combined ar chitectural & structural)Project Management / Page 1


[ LLS LETTERHEAD ]

Consultant


Attn :

Dear Sirs


On behalf of our client, [ name of client ] , we are pleased to advise that you have been appointedas the combined architectural / structural consultant for the above project on the terms set out inthis letter.

1. FEES AND PAYMENT



% Payable

DC Submission 5Obtaining PP 2.5Obtaining WP 2.5BP Submission 10BP Approval 5Piling Submission 5Piling Approval 2.5Structural Submission 10Structural Approval 5Commence piling works 2.5Construction 40TOP 5CSC 5

100

2. THE SERVICES

You must provide the following services including any services incidental there to:



2.1 To prepare, certify and submit the necessary drawings to all authorities concerned and toobtain the necessary clearances and approvals as required by the Planning Act, the BuildingControl Act and all other relevant Acts having jurisdiction over the proposed development.

2.2 To prepare all necessary structural plans and calculations and have these issued to theappointed Accredited Checker for him to carry out the checking works.

2.3 Upon completion of the checking works by the Accredited Checker, submit all necessarydocuments to the authority for approval.

2.4 To liase closely with the relevant authorities in order to obtain the necessary clearances andapprovals within the shortest possible time frame and in any event not later than the date(s)set out in the attached design programme.

2.5 To apply for the necessary permit to commence work.

2.6 To prepare detailed drawings or such design input as is necessary for the due and propercompletion of the project.


2.7 To provide all the necessary prints of drawings for submission to the authorities. Uponapproval of the plans, issue to LLS a complete set of certified true copies of the approvalplans.

2.8 To provide copies of preliminary drawings to LLS for comments and 3 copies of approveddrawings for construction. Additional prints, if required, shall be reimbursed at cost.

2.9 To provide without charge drawings / diskettes and other documentation relating to theServices to other consultants and contractors engaged by Lend Lease on the project as maybe reasonably required by them.

2.10 To attend regular site and / or design meetings for proper co-ordination of works.

2.11 To provide professional judgments, statements or opinions as and when necessary.

2.12 To carry out all necessary site inspections in order to endorse the Certificate of Supervisionsand any other certifications required by the authorities.

2.13 To apply to the relevant authorities for the Certificate of Statutory Completion and / orTemporary Occupation Permit upon completion of the works.

2.14 To prepare as-built drawings and issue 2 sets of the drawings to LLS.

2.15 [Consider any other services to be listed having regard to any special conditionsunder the Head Contract.........)


You must perform the Services with the degree of professional skill, care and diligence expected ofa consultant experienced in providing the same or similar services. You must ensure that the

Asia Projects Operations Manual - Issue 1 / 2.3 - Sample PSA (Shor t Form - Combined ar chitectural & structural)Project Management / Page 3Revision 2, 28/10/98

designs, documents, types of materials and methods of construction proposed or specified by youare suitable for their intended purposes.


You must perform the Services in accordance with the design programme attached hereto and anyadditional more detailed programmes issued by Lend Lease from time to time. If for any reasonyou fall behind any programme Lend Lease may issue a further acceleration programme whichyou must immediately comply with.




6. VARIATIONS





8. INSURANCES


Professional Indemnity Insurance with an indemnity limit of not less than$5,000,000.

Workmen’s Compensation Insurance insurance for your employees as requiredunder the Workmen’s Compensation Act,Cap. 354.






10. TERMINATION





11. ASSIGNMENT



Yours sincerely

.......................................................................................................................................................

We, (name of Consultant) , hereby accept our appointment under this letter on the terms setout herein.


...............................................................

............................................................... Date : ...................................


Asia Projects Operations Manual - Issue 1 / 2.3 - Sample PSA (Shor t Form - Combined ar chitectural & structural)Project Management / Page 5Revision 2, 28/10/98


SAMPLE OF SCHEDULE A INFORMATIONFOR VARIOUS CONSULTANT PSA’s

Asia Projects Operations Manual - Issue 1 / 2.3 - Sample Sc hedule AProject Management / Page 1


SCHEDULE A

(FOR ARCHITECTURAL CONSULTANTS ONLY)

THE SERVICES

The Consultant shall perform and provide the following specific services and any services necessarilyincidental thereto:

1. PROJECT SCOPE

[Provide a brief description of the Project, i.e. a summary of the full scope of works]

The scope of the services covers the following elements of the project• Site Master Planning• Amenity Building• Ancillary Services buildings such as sub-station and Bin centres• Co-ordinating among the Consultants and LLS

2. DETAILED SCOPE BY STAGES

2.1 PROPOSAL / CONTRACT STAGE

2.1.1 Scope• Examine/comment on site options and external works (roads, drainage and minor sewer)

to ensure compliance with the requirements of the authorities.• Assist with preparation of brief where required• Site sizing/selection• Advise on statutory and authority requirements• Master planning alternatives• Critique various schemes addressing advantages and disadvantages• Inspect/measure up/audit existing buildings• Assist/input into cost plan for options• Develop concept and presentation drawings• Examine/comment on structure buildability and feasibility• Assist in the selection/recommendation of preferred scheme• Make presentations• Attend meetings - Design/Client/Authorities

2.1.2 Documentation

• Site Masterplan• Site Plan• External Works Infrastructrure• Concept Plans, Elevations and Sections• Outline Specification



2.2 DESIGN DEVELOPMENT / AUTHORITY SUBMISSION STAGE

2.2.1 Scope

• Update advice on statutory and authority requirements• Advise on project programme as necessary• Review compliance with design brief• Iteratively refine design until a final agreed design is produced• Prepare structural buildability and feasibility• Co-ordination of other consultants documentation for authority submission• Incorporate safety and quality measures into design• Establish project drawing listing• Review design for conformity with the Cost Plan providing estimator with details as

necessary• Develop drawings to allow other consultants to commence work• Assist to obtain Building Structural Approval & Permit to commence construction• Prepare working drawings and other particulars to the Building Control authority or

any other relevant authority to obtain statutory building approval• Make presentations• Attend meetings - Design/Client/Authorities

2.2.2 Documentation

• Finalised Site Plan• Finalised Plans, Elevations and Sections• Develop typical details as requested by LLS• Finalised Infrastructure works layout• Assist in the documentation and issuance of architectural drawings for submission to

Building Structural Approval, Building Control authority and associated technicaldepartments

• 3 copies of each drawing and documents for LLS’s use

2.3 CONSTRUCTION DOCUMENTATION / DETAIL DESIGN STAGE

2.3.1 Scope

• Respond as necessary to authority requirements, resubmitting details as required• Resolve all detailing issues• Substantially complete all architectural detail drawings ready for construction and tender• Update and finalise drawing schedules• Make presentations• Attend meetings - Design/Authorities/Client

2.3.2 Documentation

• Finalised Site Plan• Finalised External Works Network, Plans, Elevations and Sections• Architectural detailing as required for construction and tender• Technical Specifications as required• Documentation and drawings for any resubmission to Authorities• Documentation as required by other consultants for co-ordination purposes• 3 copies of each drawing and document for LLS’s use

Asia Projects Operations Manual - Issue 1 / 2.3 - Sample Sc hedule AProject Management / Page 3Revision 2, 28/10/98

2.4 CONSTRUCTION STAGE

2.4.1 Scope

• Assist with site queries including sufficient drawn information to construct• Review with site alternative construction techniques• Advise on statutory/authority requirements• Examine shop drawings to ensure compliance with approved design• Amend drawings to produce an as-built set of drawings• Carry out necessary site inspections to ensure endorsement of all forms by Authorities• Attend meetings - Design/Site/Client/Subcontract/Authorities

2.4.2 Documentation

• Any outstanding drawings/details• As-built drawings• Any further authority documentation• Provide 3 copies of all drawings and documentation for LLS’s use

2.5 PROJECT COMPLETION STAGE

2.5.1 Scope

• Assist in the commissioning of all services system (i.e. electrical, mechanical, a.c.,sanitary and plumbing, fire protection, communication)

• Apply and obtain Temporary Occupation Permit and subsequently the Certificate ofStatutory Completion within the time frame as specified in the programme.

• Obtain all necessary authority endorsement on Final Drawings and documents

2.5.2 Documentation

• Final authority approval documentation and drawings



SCHEDULE A

(FOR CIVIL & STRUCTURAL ENGINEERS)

THE SERVICES


1. PROJECT SCOPE


The scope of the services covers the following elements of the project :• Civil and Structural design for the buildings• Ancillary services buildings such as sub-stations and bin centres• Entrance culverts and retaining walls• Applicable road works (under the Street Works Act), road widening woks, drainage

and minor sewer

2. DETAILED SCOPE BY STAGES

2.1 PROPOSAL/CONTRACT STAGE

2.1.1 Scope

• Examine/comment on site options and external works (roads, drainage and minor sewer)• Assist with preparation of Client brief where required• Advise on statutory and authority requirements• Assist Master planning alternatives• Critique various schemes addressing advantages and disadvantages• Inspect/measure up/audit existing buildings• Assist/input into cost plan for options• Develop concept and presentation drawings• Examine/comment on stucture buildability and feasibility• Assist in the selection/recommendation of the preferred scheme• Make presentations• Attend meetings - Design/Client/Authorities• Provide advice on geotechnical matters when requested by LLS• Prepare structural concept for approval by LLS

2.1.2 Documentation

• Site Masterplan• Site Plan• External Works Network• Concept Plans, Elevations and Sections• Outline Specification


2.2 DESIGN DEVELOPMENT / AUTHORITY SUBMISSION STAGE

2.2.1 Scope

• Update advice on statutory and authority requirements• Advise on project programme as necessary• Review compliance with design brief• Iteratively refine design until a final agreed design is produced• Prepare structural buildability and feasibility• Co-ordination of other consultants documentation for authority submission• Incorporate safety and quality measures into design• Establish project drawing listing• Review design for conformity with the Cost Plan providing estimator with details as

necessary• Develop drawings to allow other consultants to commence work• Obtain Building Structural Approval & Permit to commence construction• Prepare working drawings and other particulars to the Building Control authority or

any other relevant authority to obtain statutory building approval• Make presentations• Attend meetings - Design/Client/Authorities

2.2.2 Documentation

• Finalised Site Plan• Finalised Plans, Elevations and Sections• Typical details• Finalised Infrastructure works layout• Documentation and drawings for submission to Building Structural Approval, Building

Control authority and associated technical departments• 3 copies of each drawing and documents for LLS’s use

2.3 CONSTRUCTION DOCUMENTATION/DETAIL DESIGN STAGE

2.3.1 Scope

• Respond as necessary to authority requirements, resubmitting details as required• Resolve all detailing issues• Substantially complete all structural detail drawings ready for construction and tender• Update and finalise drawing schedules• Make presentations• Attend meetings - Design/Authorities/Client• Review and comment shop drawings on the structural supports of cladding, canopy,

etc.

2.3.2 Documentation

• Finalised Site Plan• Finalised Infrastructure Works Plans, Elevations and Sections• Structural detailing as required for construction and tender• Technical Specifications as required• Documentation and drawings for any resubmission to Authorities• Documentation as required by other consultants for co-ordination purposes• 3 copies of each drawing and document for LLS’s use



2.4 CONSTRUCTION STAGE

2.4.1 Scope

• Assist with site queries including sufficient drawn information to construct• Review with site alternative construction techniques• Advise on statutory/authority requirements• Examine shop drawings to ensure compliance with approved design• Amend drawings to produce an as-built set of drawings• Carry out necessary site inspections to ensure endorsement of all forms required by

Authorities• Attend meetings - Design/Site/Client/Subcontract/Authorities

2.4.2 Documentation

• Any outstanding drawings/details• As-built drawings• Any further authority documentation• Provide 3 copies of all drawings and documentation for LLS’s use

2.5 PROJECT COMPLETION STAGE

2.5.1 Scope

• Commissioning of all services system (i.e. minor sewers, roadworks etc.)• Apply and obtain Temporary Occupation Permit and subsequently the Certificate of

Statutory Completion• Obtain all necessary authority endorsement on Final Drawings and documents

2.5.2 Documentation

• Final authority approval documentation and drawings• Civil and Structural design for the reinforced concrete box culvert.• Accredited checking and certification of the structural design for the reinforced concrete

box culvert.


SCHEDULE A

(FOR MECHANICAL & ELECTRICAL ENGINEERS)

THE SERVICES


1. PROJECT SCOPE


The scope of the services covers the following elements of the project• Electrical Installations• Air-Conditioning & Mechanical Ventilation Systems• Sanitary & Plumbing Systems• Fire Protection Systems• Vertical Transportation Systems• Security Systems• Building Automation Systems

2. DETAILED SCOPE OF WORKS

The Scope of Work shall include the following:

• Liaising and co-ordinating with LLS/Architect and authorities for utilities supplies andconnection.

• Receiving instructions from LLS and co-ordinating with the Architect in establishingdesign criteria and data, examining, evaluating and recommending suitable systemsand layout.

• Conduct site inspections to check compliance with the relevant codes and regulations.

• Review the Design and Construct sub-contractors proposals and provide advice ontheir designs.

• Provide design checks on the sub-contractors proposals.

• Assist LLS to write and compile specifications for M&E Subcontracts which are to becontracted on design and construct basis.

• Review and examine contractors’ proposals, shop drawings and details for complianceto specifications.

• Attend project Design meetings and periodic site inspections during the implementationof works.



• Attending regular site meetings conducted by LLS, issuing instructions to LLS withregards to M&E Contractor’s work performance and compliances to specifications andvariation work.

• Prepare testing and commissioning check-lists for the M&E services.

• Assist with the testing, commissioning and hand-over of the completed works.

• Assist in the obtainment of approvals of plans submitted by the respective Design &Build sub-contractors.

• Attend and liaise with the relevant Government Authorities and issue any certificate ofsupervision required thereof for the Works.

• Answer site queries as needed.

• Participate in services co-ordination meetings with the services subcontractors toresolve the design co-ordination if required



2.3.2 COST PLANNING

Intr oduction

Cost Planning is an essential project management tool that enables Lend Lease to managethe cost parameters for any given project. By definition, the cost plan is NOT an estimate.The cost plan facilitates the “designing to a cost”, whereas an estimate is simply “costinga design”.

Definitions

• Cost Planning : that work involved in controlling the design of a building within theset parameters of costs, area and quality.

Cost planning is proactive - it is working with the projectmanagement team during the needs study, and the ProjectManager and designers during the design phases of the project.It precedes the issue of that stage documents.

• Cost Plan : a written description of the above broken into elements, levelsand areas, subject to constant updating and reconciliation asdesign evolves.

• Estimate : a cost applicable to a design at a set freeze point. The Companyhas different levels of estimate.

a) Indicativeb) Budgetc) Contract

Usually an indicative estimate forms the initial cost plan.

• Estimating : the actual process of quantifying and pricing the estimate for a setdesign at a particular point in time.

Relationship of cost planning to estimating

• The original cost plan can be extracted from an indicative estimate and refined andadjusted as the design evolves

• The budget and contract estimates should be confirmation of the cost planning thathas taken place as the design has progressed ie. management cost checks.

• Cost planning requires a working knowledge of all disciplines, and the ability not to justcost what is on the drawings – to allow for the real effects when working documentsare finalised.

Use of Cost Planning

Cost Planning is used for the following reasons :

1. Control of Cost

• The costs and profitability of the project are largely determined at the design stage. Asthe project proceeds further into the construction stage, risk of losses remain present,but opportunities for cost reduction or profit improvement diminish.


• Although in some rare cases cost may be of secondary importance to quality or speedof building, it usually is of the utmost importance.

• One of the major problems in designing any building is to maintain control over cost asdesign decisions are made, so that the completed project is finished within the client’sbudget.

• Cost planning is the most positive step that can be taken to control the costs of aproject, to ensure a direct relationship between initial and final project costs.

• Cost planning enables the PM to observe and control the interaction of design andcost during the design process, and maintain the overall scheme within the budgetlimitations.

2. Early commitment

• With the effective use of cost planning, management can confidently commit thecompany to a project at an early stage. Conversely the client, faced with a professionalapproach to control the project, should also have that extra confidence required toaccept an early commitment.

• An early commitment is in the client’s and Lend Lease’s interest.• The first cost given to the client is always “THE PRICE”, therefore, care and consideration

should be given to this costing – it must be viable. Cost planning will not performmiracles and that should be taken into account when making a commitment. That is,the cost plan must be realistic and achievable, reflecting both the budget and needs ofthe client.

• The cost plan should be initially produced to match the client’s needs. The user needsbrief and then the concept design should be controlled in accordance with that initialcost plan, ie. the cost plan must relate to a specific scope of work.

• Cost Planning is redundant if :- the user needs brief and cost plan are never matched,- changes are decided on to reduce costs but are not accepted or reflected in the

documentation as it emerges,- changes are agreed but not contractually confirmed.

3. Client’s confidence

• Involving the client in the decision making process, when considering fully costed andevaluated alternative design solutions presented in a professional manner, improvesthe client’s perception of Lend Lease’s solution to the client’s needs.

• If an alternative is proposed which involves extra cost, this should be conveyed to theclient at an early stage.

4. Advantages for the design team

• Cost planning provides a basis for “value” judgement of design alternatives in a clearconcise professional form, that assists in the identification of the correct solution, andsatisfies doubts the design team may have.

• Looking at alternatives and checking costs at the earliest possible stage prior to detaildrawings commencing, means less abortive design.

• Cost planning engenders a thoughtful approach from the designers, and this can beextremely important at the detailing stage.

• An experienced Cost Planner should be able to question early design solutions forinadequacy – saving embarrassment later.


5. Maximise construction / design overlap

• With effective use of cost planning an early construction commencement can confidentlybe undertaken.

• Care is required to ensure that the gains in starting early, are not lost in the hasterequired to complete design. This is a familiar failing on “fast-tracked” constructionmanagement projects.

• Where design is just ahead of site requirements, an intense cost checking process isessential.

• It has been shown to be effective for Estimators / Cost Planners to produce Bills ofQuantities on major projects to let sub-contracts, this has the following advantages :

- A final cost check on the quantities and budget.- Helping to analyse the various quotes.- Sets a basis for future variations and we understand the base information best.- Ensures that design is much further advanced for the site team, through harassment

of the designers for quantities.

6. Increase profit potential

• Through their intimate knowledge of the project the cost planner can increase theprofit by :

- concentrating on areas of largest risk – limiting our exposure.- value engineering the design to produce a more economical solution.- simplifying the design detailing and buildability.- agreeing a “fair and reasonable” project cost with an independent quantity surveyor,

if required by the client, at an early point in the proceedings.- incorporating design suggestions on subcontractors advice.

Stages of Cost Planning

From concept through to project completion, the cost plan evolves throughout theduration of the project.

• The initial cost plan can be formulated from a well defined user needs brief, givingareas and quality requirements, prior to any drawing being produced.

• Once outline sketch plans and a section or elevation are drawn, exercises can becarried out to compare options, check against client’s budget, and generally confirmstructural solutions finishes, services, and facilities, that are to be incorporated in theproject.

• The cost planner therefore should be involved from the very outset of a project, andthis involvement should continue throughout the project. This involvement should includebeing part of the subcontractor tender analysis process, including consideration ofalternatives etc., that may occur at this stage.

Note : Cost planning is of greatest use in design & construction projects. It is lessrelevant when Lend Lease has limited control over design (ie. constructionmanagement projects.)


Cost Planning Responsibility

1. Project Manager

• It is the responsibility of the Project Manager to ensure that cost planning takesplace on his /her projects.

• The setting up of the initial cost plan should be a joint responsibility between theproject management team and Cost Planner, so that they are all aware of theconstraints within which the project is set up, and within which subsequent workmust be contained.

• The Project Manager must know the cost plan, be confident that the solution includedin the original cost plan is viable, and that it fully reflects the client’s brief and authorityrequirements.

• Allowance must be made in design budgets to cover for the cost of cost planning.Overall, it is a very small percentage of the project cost, and the return on investmentcan be substantial, through savings in design time, less abortive design work, moreproductive construction planning and estimating, as well as, the actual cost savingsthrough more effective design.

2. Cost Planner / Estimator

• The Cost Planner for the project should be nominated by the Operations Manager.Both should then ensure that cost planning is actually carried out and mentioned.

• On small projects the luxury of a dedicated Cost Planner throughout the projectmay not be possible, and once the cost plan has been set up, the ongoing role maybe assumed by someone else in the team – ie. Project Manager. The person adoptingthe role must still get close to the design team – reactive cost planning oncedocuments have been finalised, loses a lot of its value.

3. Construction Involvement

• Construction personnel and the proposed Project Manager Delivery should beinvolved in evaluating design solutions, so that their input can be taken into accountwhen a decision is made.

Cost Planning Pr ocedure

1. Cost planner’ needs

• Obviously the level of documentation required for cost planning varies dependingupon the stage at which the project is at. It also varies for the following reasons :

- type of project- complexity of project- type of client- complexity of client- contractual arrangement- risks


• Documents required during the project feasibility and design stages :

- a meaningful brief- design criteria- sketch drawings- room data sheets- drawings, as they are being developed, as well as presentation or final drawings- outline specification, finishing schedule, door schedule etc.- site information including levels, existing services under, over and around, soils

report etc., etc.- special requirements ie. staging- special contract conditions- design and construction programme- construction requirements- other relevant information

2. Part of the Project Management Team

• It is essential that the Project Manager and Cost Planner work closely together.• Cost Planners should have direct access to the design consultants, attend the

majority of early design meetings, and be in all management reviews.• On most projects attendance at many of the design meetings will not be possible,

because of other commitments, resource allocation etc. The Project Manager andCost Planner, both ought to know when attendance is warranted or really necessary.

• The Cost Planner should receive copies of all design meeting minutes.• Cost planning involves a constant updating of information as more advanced

drawings, specification and client design criteria become available. All drawingsshould be sighted and checks carried out, to make sure the cost plan budget is notexceeded.

• On larger projects running sheets of options and their status should be producedand agreed with the Project Manager.

• Cost planning should continue until the design is finalised and subcontracts let.

Overall Principles of Cost Planning

1. Logical set out

• The cost plan is a statement of space, quality and cost for the project, and requiresacceptance by the design team.

• The dominant factor can vary from project to project ie. on some projects the costis often fixed whereas the quality and, to a greater degree, the space is flexible.

• The cost plan should be set out in a logical way to facilitate understanding andflexibility in use, therefore it is divided into levels, areas, and elements as applicableto the particular project. Lend Lease uses proprietary software (“EVEREST”) formeasurement, pricing and analysis of cost plans and estimates.

• The initial cost plan should allow for undesigned but necessary items ie. Fire hosereel cupboards, substations, plant rooms, duct access panels etc. etc.

• An elemental analysis comparison with similar type projects (updated to currentcosts), is a valuable cross check from management’s point of view. This should beproduced for all major projects, and updated for reviews.


2. Balancing savings and overruns

• During cost planning there is a constant balancing of cost overruns, countered bysavings elsewhere. It is not an exact science. It is an overall total package. Thereare several contractual aspects to this balancing. For example :- Cost overruns in one area can be balanced by cost savings in another, if both

are within the intention of the contract specification.- If a saving requires a change to the specification to balance an overrun, this

must be agreed with the client.- If a saving has been generated, and the project team wish to apply this to another

project element, i.e. an upgrade to the contractual requirement, this requiresmanagement approval.

3. Project Engineering

• When looking at different design options project engineering skills should be usedto advise and control the designers. Why not try?, can it be built?, how’s that built?,etc. type questions must asked.

• During the design process various options should be compared to see which is theoptimum solution – this is not purely a question of price.

• It is vital to look at different structural and façade options. However, there is a limitto the number of options to be considered. Many options really are not worthconsidering and this should be realised at an early point.

• It is important when considering different options to take into account other itemsthat may be affected.

• All details should be queried where a complicated solution has been proposed.These small details can cost us a great deal when we get to actual construction onsite.

4. Rates and Pricing

• The cost information used in cost planning would come from, in order of importance :

- current market rates- historical estimating / cost planning records- cost feedback from sites- local consultants

5. Level of Detail

• The amount of detail incorporated in the cost plan at any stage in the design processvaries according to the information and time available.

• Listed below is an indication of the process through which a project should proceed.

Information Available

1. Project Definition Sta ge Costing Method

a) Brief a) an “all-up” cost per m2 of grossbuilding area for indicative budgetsonly, (Note: this is an extremelyunreliable basis upon which to start)


b) from experience and historicalrecords build up an elemental and/or area cost. This should alsoinclude parameters for sketchoutline – plans and an indication ofquality

2. Concept Design Sta ge

a) Brief a) Build up on a level and / or areabasis an elemental cost onalternative design schemes to assistwith the choice of scheme.

b) Plan outlines

3. Sketc h Plan Sta ge

a) Brief a) Build quantities taken off in levelsand / or areas in an elementalformat. This should be in as muchdetail as is possible from theinformation available.

b) Sketch Plan, Elevations and Section

c) Sketch Structural Plans

d) Outline Finishing Plans

4. Design De velopment

a) Alternative design options a) Bulk quantity take offs to comparedesign alternatives.

b) Preliminary drawings b)Check all preliminary drawingsconform to cost plan parameters

c) Preliminary Specification, finishing i) check area, quantities etc.schedules, door ii) check storey heightsschedules etc. iii) check ratios i.e. wall to floor,

lettable to gross etc.iv) check sizes, thickness etc.v) check quality.

NB All cost overruns to be offset bysavings elsewhere, problemareas to be highlighted.

c) Check all preliminary specifications,schedules, etc. comply with originalcost plan brieft:


d) Detailing d) Check all detailing

i) bar reinforcement drawingscomply with reinforcement ratiosused originally.

ii) fixing details etc. are simple.iii) edge details on ceilings etc. are

within the allowance made.iv) involve the site construction team

as necessary.

NB All details on drawings should beexamined for complexity andbuildability, all appearing difficultshould be queried with thedesigner with a suggestion onhow it could be simplified.

5. Final Design

All final Approved For Construction Examine to ensure that all correctionsdrawings, specifications etc. have have been incorporated and thatcrept in. there are no last minute inclusions.

2.4 ADMIN -Head Contract

2.4.1 Head Contract

2.4.2 Insurances

Asia Projects Operations Manual - Issue 1 / 2.4 - Admin - Head ContractDesign ManagementRevision 2, 28/10/98

Admin - Head Contract

2.4.1 HEAD CONTRACT

The type and nature of the head contracts on which Lend Lease is engaged variesconsiderably from country to country in Asia. In general terms, the following contracts areviewed as the best types of contracts, and vary as to the scope of works on which LendLease is engaged.

• Management Services Agreement

• Lump Sum Design & Construct Contract

• Actual Cost Design & Construct Contract

Copies of all of the standard forms of contract are available in electronic format in theLend Lease Asia Blue Book.

Note that it is mandatory for all forms of contract to be reviewed by the followingpersons prior to their implementation

• Regional Operations Manager• Regional Legal Officer

Whilst the above contracts are our preferred types, the following other forms of contractare available in the marketplace.

• JCT Standard Form of Building Contract with Contractor’s Design (1981 Edition)

• ICE Design and Construct Conditions of Contract

Whilst these are discouraged, Lend Lease may use them based on client requirementsand, again, responsibility for this should be dictated by the above limits of authority.

Finally, attached are listed some of the key issues in most contracts, together with ourideal treatment of such terms.

HEAD CONTRACT - CONCEPT AND COMMON TERMINOLOGY

2.4.1.1 Definition

A contract is an agreement made between two or more parties whereby legalobligations are created which the law of a country will enforce.

To be valid, a contract must have the following six essentials :

1. Be an intention to create such a legal relationship;2. Demonstrate offer and acceptance by the parties;3. Involve consideration - usually money;4. Must be signed by a person or party with the legal capacity to do so;


5. Be based on genuine consent - mistakes, fraud or misrepresentation can voida contract;

6. Be based on legal objectives in the particular country.

And remember, Lend Lease requires written contracts with external parties, clientsand contractors.

2.4.1.2 Terminology

There are various words and expressions which are constantly used in ourcontracts, so let’s start with some definitions.

Parties

Parties will normally mean the signatories to the contract. In the case of a HeadContract, these will be the Client and Lend Lease. Examples of non-parties willbe subcontractors, consultants, neighbours, tenants and members of the generalpublic.

Contract

A contract is an agreement consisting essentially of an offer and acceptance. Acontract need not be written - it can be entirely oral or it can be a mixture of oraland written terms. Lend Lease expects you to contract on its behalf only in thewritten form.

The Lend Lease standard Project Management Agreement is a contract whichconsists of the following contract documents :

• The Agreement• Conditions of Engagement• All Appendices• Specifications• Drawings

Obviously, it is important to ensure that the various Contract Documents do notcontain any internal inconsistencies.

Beach of Contract

This is where one party has failed to satisfy an obligation in the contract. If LendLease contracts to complete by a certain date and fails to do so simply becauseof rain, then we are in breach of contract even though the rain is beyond ourcontrol. However, if the contract allows for extensions of time for rain we will notbe in breach until we pass the extended date(s).

The party in breach may be liable to pay damages to the other party.

A breach will not normally justify the termination or suspension of the contract bythe innocent party. It is only breaches that are very significant that will justifysuch drastic action. Examples of these are often listed in the standard industrybuilding contracts. An example from the Client’s side is failure to make paymentswhen due. An example from the Lend Lease side would be where we fail todiligently proceed with a job.


Damages

The standard remedy for breach of contract is damages - a sum of money.

Sometimes, a breach of contract will not cause any loss to the innocent party. Inthis case, there would be no entitlement to damages.

Damages are sometimes split up as between ‘direct’ and ‘consequential’ damages.Both forms of damage are recoverable as long as they are a “foreseeable” resultarising from the breach. An example of direct damages would be where acontractor installs facades in a defective manner. The direct damage is the costof remedying the defective installation.

An example of consequential damages is if one of the facades falls off and hits,say, a parked car. The damage to the parked car is consequential or ‘resultant’from the breach of defective installation. The damage to the parked car is clearlyforeseeable and therefore recoverable.

It is not necessary and is sometimes confusing to categorize damages as betweendirect and consequential. Essentially, a party in breach of contract will be liablefor all damages that are a foreseeable result of the breach. This is why it isimportant that Lend Lease limits its liability in the contract.

Liquidated Damages (LD)

This is a pre-agreed rate of losses payable regardless of the actual losses (ifany).

For more details see later items

Limitation of Liability

A limitation of liability is an express term in a contract where one party limits itsliability for any breach of the contract or negligence.

If we have a LD clause in the Head Contract we should state in the contract thatthis is the limit of our liability to the client for late completion and we are nototherwise liable in damages to the Client in any way.

Indemnity

This is an undertaking by one party to reimburse the other party for its liability tothird parties. For example, Lend Lease might agree to indemnify the Client againstliability that the client might suffer arising from legal proceedings brought againstit by the owner of an adjoining property for damage caused to that adjoiningproperty during the course of our construction works.

Negligence

Negligence is different from breach of contract. It is possible to be in breach ofcontract but not be negligent and vice versa.


Negligence arises where a person owes a duty of care to another person toexercise a certain standard of care and falls short of this duty.

For example, Lend Lease owes a duty to clients to design and build their buildingsin a professional and diligent manner. Failure to do this will mean that we havebeen negligent. At the same time, this will also be a breach of contract and theClient would have a choice of suing us either in negligence or for breach ofcontract.

Another example is if Lend Lease fails to exercise proper care on one of its jobsand causes damage to a neighbour’s property. The neighbour would be able tosue us in negligence. The neighbour would not be able to sue us for breach ofcontract as there is no contract between the neighbour and Lend Lease.

Sometimes Lend Lease might be in breach of contract without being negligent.For example, the Head Contract will state that we have to reach PracticalCompletion by a certain date. The Head Contract might not allow for any timeextension for excessive rain. If Lend Lease is late in completing because ofexcessive rain we will be a breach of contract. However, this is not negligence.

If a subcontractor carries out any part of its work in a defective manner the Clientcan sue the subcontractor directly in negligence. The Client cannot sue thesubcontractor in contract as there is no contract between the Client andsubcontractor.

The usual course would be for the Client to rely on its contract with us and proceedagainst us for the defective work of the subcontractor. In our Head Contract weare responsible for the work of our consultants and subcontractors.

Following the Client’s action, we would then proceed against the subcontractorfor its breach of the subcontract.

Like an action for breach of contract, an action in negligence also gives rise to aclaim for damages.

The standard of care demanded of Lend Lease in the context of negligence is touse the skill, care and diligence expected of an experienced and diligent PMwhen providing the same or similar services to a client.

Assignment/ Novation

You can assign your rights/ benefits (eg. your salary) to a third party (eg. yourspouse) but you cannot assign your obligations to a third party unless the partyto whom you owed the obligation (eg. client, creditor) in the first place consents.This is called novation.

Lend Lease’s practice of engaging consultants/ subcontractors to carry out partsof our Head Contract is not an assignment. This is the ‘vicarious’ performance ofthe contract by our consultants/ subcontractors on our behalf.

Lend Lease is still responsible for the quality of the work of the consultants/subcontractors.


Guarantee

A guarantee is an agreement by a third party (ie. not a party to the contract) toguarantee the obligations and performance of one of the parties to the contract.

Lend Lease In-House Terminology

In our in-house standard documents the following expressions are used :

“Practical Completion” is of the Project/ Head Contract.

“Substantial Completion” is of the Subcontract Works.

“Date for Practical Completion” is the contractual date as extended under thecontract.

“Date of Practical Completion” is the actual date.

2.4.1.3 The Contract with the Client

When we agree to undertake a project for a client we will enter into a writtencontract.

Usually, the written contract will be the Lend Lease standard Head Contract. Wehave standard forms of contract in each of Singapore, Thailand and Indonesiamodelled on the Head Contract used in Australia.

Sometimes, the client will insist on us using its own contract. This might take theform of one of the standard forms used in the building and construction industrythroughout the world such as the standard forms developed by :

• the United Kingdom Joint Contracts Tribunal (JCT)• the International Federation of Civil Engineers (FIDIC)• Singapore Institute of Architects (SIA)

Before Lend Lease enters into the Client’s proposed contract we need to beparticularly careful to review the terms to ensure that we agree with them. Then,after signing we need to familiarize ourselves with the terms of the contract toensure that we administer the contract carefully.

For example, the contract will set out a certain procedure for claiming andprocessing variations. Lend Lease must follow the procedure carefully to avoidany possible claim by the client that we are not entitled to the variation becausewe failed to follow the correct procedure.

A Head Contract will comprise a number of different documents such as :

• The Agreement• Conditions of Engagement• Specifications• Drawings• Appendices


All of these documents form part of the contract and should set out accuratelythe agreement reached between Lend Lease and the client. As all documentsform part of the contract we need to be careful to review the draft documentsbefore signing in order to ensure that there are no internal inconsistencies.

The Agreement

This is a short 2-3 page document which sets out the most significant terms ofthe Head Contract. The representatives of Lend Lease and the Client bindthemselves to the Head Contract by signing on the last page of the Agreement.

The Agreement contains the most significant terms such as :

• description of project• summary of Lend Lease’s services• price• time for completion• performance bond given by Lend Lease

Conditions of Engagement

The Conditions of Engagement is the standard Lend Lease document that setsout the legal terms applying for the project.

Specifications

The Specifications document sets out the agreement of the parties as to thedetail of the building.

Lend Lease Singapore has a standard Specifications document.

Drawings

The Contract Drawings also form an important part of the Head Contract. Thesewill often form an Appendix to the Contract and the front page of the Appendixwill set out a list of the Drawings.

Appendices

There will often be a number of Appendices attached to the Head Contract.Examples include :

• Soil Investigation Report• Schedule of Provisional Sums• Schedule of Rates• Construction Programme• Design Programme

2.4.1.4 Authority to Sign the Contract

There are strict Lend Lease internal rules as to who can sign the Head Contracton Lend Lease’s behalf. Refer to scetion 1.5 for limits of authority requirements.


2.4.1.5 Bonus / Liquidated Damages

Bonus

One of the most important promises that we make to Clients is that we will bringthe project to practical completion by a certain date. Lend Lease will commonlyattempt to negotiate with the Client to have a bonus clause inserted whereby wereceive a bonus for completing early. The bonus payment is commonly stagedas per the following example :

If Practical Completion occurs between Bonus Payablei) 0 to 7th day (inclusive) S$0.00

ii) Day 8 to Day 21 (inclusive) S$2,000 per calendar dayExample : If PC is 21 days before the Date from the 8th day onwards.

for PC the bonus is :(21 - 7 ) x S$2,000 = S$28,000

iii) Day 22 to Day 35 (inclusive) S$4,000 per calendar dayExample : If PC is 35 days before the Date from the 22nd day onwards

for PC the bonus is : plus S$2,000 per calendar(35 - 21) x S$4,000 + (21 – 7) day from 8th to 21st day.x S$2,000 = S$84,000

Liquidated Damages (LD)

Liquidated damages is an agreed predetermined rate of damages. There willnormally be a LD clause in the Head Contract whereby Lend Lease must pay tothe Client LD for completing after the Date for Practical Completion. The amountof LD is normally set at a fixed rate per day.

We should try to insist on placing a maximum cap on our exposure to LD set at5% of the contract sum.

Importantly, if there is no LD clause in the contract and Lend Lease is late incompleting, we will be liable for general damages unless we expressly negatethis possibility in the contract.

The measure of general damages is whatever the client is able to prove that ithas lost because of the late completion. This will commonly include a claim forloss of profits.

The potential for general damages can be negated by inserting a clause in thecontract such as the following :

“The Client acknowledges that Lend Lease shall in no way be liable to the Clientin contract, negligence or otherwise in the event that the project is not completedfor whatever reason by the Date for Practical Completion. Without limiting thegenerality of the foregoing, Lend Lease shall not be liable to the Client for damages,whether liquidated or general”.

In most contracts, the Client will insist on a LD clause as an obvious form ofpressure on Lend Lease to complete on time. Lend Lease should protect itselfin this context by adding a sentence after the LD clause to the following effect :


“Lend Lease will not be liable to the client for any losses in excess of the limit ofliquidated damages stated in the Appendix which arises out of or is connectedwith late or delayed completion of the project or any part thereof, whether by wayof liquidated damages or in any other way whatsoever”.

2.4.1.6 Variations and Extension of Time

After we sign the contract with the Client do not put it in your bottom drawer andforget about it. The contract consisting of the various contract documents is themost important document for your project. If you do not follow it, Lend Leasemay miss out on otherwise valid claims. Or worse, Lend Lease may becomeliable to damages for breach of the contract.

The Project Manager must read carefully and become familiar with the contractdocument. If you do not understand any term of the contract, ask someone. Youwill not get in trouble for asking. You will get in trouble if you do not ask and makea costly mistake.

An area of the contract that is particularly important for a Project Manager is theclauses that relate to Variations and Extensions of Time. Make sure youunderstand what may be claimed as a variation. Then, ensure that you processthe variation in accordance with the procedure set down in the contract - in writing.Do not rely on verbal assurances from the Client - get things in writing and followthe contract. This applies equally to Extension of Time claims.

2.4.1.7 Insurances

There are various types of insurances that Lend lease must arrange. Set outbelow is a brief description of the following types of insurances :

1. Contractors’ All Risks/ Public Liability2. Workmen’s Compensation3. Professional Indemnity4. Completed Operations

Most of these project insurances are very similar for each of Singapore, Thailand,Indonesia and Malaysia.

Contractors’ All Risks/ Public Liability

The Client will normally require Lend Lease to take out CAR insurance for theproject.

A typical CAR policy has two sections :

1. Section I - Contract Works2. Section II - Third Party Liability

Section I - Contract Works

Under this section the contract works are insured meaning all of the works carriedout by Lend Lease and our subcontractors including preparatory work on thesite, the execution of temporary structures, and all materials stored on site to beincorporated into the structure.


The CAR policy is an ‘all risks’ cover which means that every hazard is coveredunless it is specifically excluded. This means that almost any sudden andunforeseen loss or damage which happens to the contract works will beindemnified.

The usual examples of hazard are fire, lightning, explosion, crashing aircraft,flood, windstorm, earthquake, theft, bad workmanship and negligence.

The insurance cover is for the full contract value set out in the Head Contract.

The normal arrangement is that Section I of the Policy expires on practicalcompletion. Thereafter, the Client is responsible for insuring the Works.

It is important to inform the Client of this transfer in risk.

Section I remains for the protection of Lend Lease and its subcontractors duringthe Defects Liability Period (DLP) for the following two circumstances :

• for damage that occurred prior to practical completion but only becameapparent during the DLP, and

• where Lend Lease or one of our subcontractors causes damage to the Client’sproperty while carrying out defect rectification work.

Section II - Thir d Party Liability

Section II of the CAR policy insures Lend Lease and its subcontractors againstdamage that we may negligently cause to third party property.

Examples include damage to :

• adjoining properties.• discrete parts of the project that have been handed over to the Client (eg.

partial handovers).• injury to persons visiting the site who are not employed by Lend Lease,

subcontractors or the Client.• injury to persons outside of the site, eg. object falling from structure which hits

pedestrian.

The limit of coverage for third party damage (both personal and property) isnormally S$2,000,000 for any one occurrence.

Excesses

The CAR Insurance Policy will normally contain excesses for both Section I andII.

The normal excess in Singapore is S$1,000 for both Sections I and II, however,be aware that the amount of excesses can vary.

If damage is caused by a subcontractor our practice is that the subcontractorshould pay for any excess. It is important to spell this out in the Subcontract andadvise the subcontractor of the particular excesses applying for the project.


Workmen’s Compensation Insurance

Workmen’s Compensation (WC) insurance insures against illness or injury toemployees arising from an incident on site.

WC insurance is often a compulsory requirement of the country government. InIndonesia it is known as Jamsostek and in Thailand it is known as Employer’sLiability.

Every employer (including subcontractors) are responsible for taking out WCinsurance for their own employees.

In Singapore, Lend Lease takes out a WC insurance policy for each project thatincludes coverage for all subcontractors’ employees.

Professional Indemnity Insurance

Professional Indemnity (PI) Insurance is not project based. It applies to acompany’s operations in general.

PI Insurance protects Lend Lease against liability arising from negligence in ouractivities, for example, negligence in our design or negligence in construction.

Even though we rely to a large extent on the work of our subcontractors andconsultants, we sell ourselves to our Clients on the basis that we accept overallresponsibility for design and construction.

If, for example, the structural design for a project is defective, the Lend Lease PIInsurance will respond. This is a Group Policy organized from Australia. Thecoverage is A$75M with an excess of A$5M for each incident.

Depending on the country, Lend Lease should insist on its major designconsultants having PI insurance such as our architects and structural engineers.The PI insurance market is more developed in some countries as compared toothers.

For example, in Singapore it is a reasonable expectation that our consultantsand major subcontractors should have PI insurance. However, in Indonesia andThailand the PI insurance market is less developed and it is unreasonable at thisstage to demand this form of insurance from our consultants/ subcontractors.

Completed Operations Insurance

Completed Operations Insurance covers liability arising out of the project onceLend Lease has handed it over to the Client. If the insurance were to be a typicalProduct Liability cover, then you would expect that the policy would respond toclaims caused by the product (in this case a building) but not to the building itself.

For instance, if Lend Lease has installed a faulty switchboard in a building whichcauses a fire in the building and that fire spreads to an adjoining property, then atypical Product Liability policy would cover the adjoining building.

However, a Product Liability policy would exclude damage done to the buildingitself - this is obviously a very large self insured exposure for Lend Lease.


Therefore, the Completed Operations Liability policy goes one step further. Usingthe same example of a fire in a switchboard which was installed by Lend Leaseduring the construction period, the policy covers both the building which LendLease constructed and the adjoining building. It excludes the faulty switchboarditself.

In addition to the property damage exposure outlined above, there is also thebodily injury exposure. For instance, if a window were to fall out of a completedbuilding injuring a pedestrian, then the policy would cover these sorts of exposures.

The Completed Operations Policy specifically excludes liability arising from faultydesign. This exposure is covered under the Group Professional Indemnity policy.Therefore, the Completed Operations insurance only covers liability arising fromfaulty materials and faulty workmanship.

2.4.1.8 Banker’s Guarantee / Performance Bond

The terminology of Banker’s Guarantee and Performance Bond is usedinterchangeably in this Module.

A Client will sometimes require Lend Lease to arrange a Banker’s Guarantee/Performance Bond in favour of the Client. If possible, this should be resisted.

The purpose of a Banker’s Guarantee is that the Client wants a guarantee froman entity such as a bank that the proper performance by Lend Lease under thecontract is guaranteed.

The Guarantee/ Performance Bond is made between the bank and the Client.

In Singapore, Lend Lease has recently arranged for Westpac Singapore to issueour bank guarantees. Lend Lease Singapore had previously arranged forInsurance Bonds to serve the same purpose, however, the Westpac bank feehas proved to be cheaper than the insurance premium.

The wording of the Westpac Performance Bond is such that the Client must firstserve a notice on Lend Lease complaining of the alleged breach of contract andthen wait 7 days before being able to approach the Bank to call on the Banker’sGuarantee.

In contrast, the wording of some Bank Guarantees allows the Client to call on thebank as soon as it thinks there is a breach without first notifying the contract(Lend Lease). This form of guarantee should be avoided.

In Singapore, we try to negotiate with the Client so that the Guarantee is cappedto a maximum of 5% of the contract value, reduces to 2.5% on PracticalCompletion, and expires at the end of the DLP.

2.4.1.9 Retention

Sometimes a Client will try to withhold a certain percentage of each progresspayment paid to Lend Lease. This is called retention and should be resisted byLend Lease as it can significantly effect our cash flow.


The Client argues that it wants retention as a form of financial pressure on LendLease to complete the project properly. If the Client demands retention, onetactic is for Lend Lease to give a counter-offer of a Banker’s Guarantee. This isusually the cheaper option for Lend Lease.

2.4.1.10 Advance Payment to Lend Lease

Lend Lease should negotiate for the Client to give us an upfront payment equalto 5% of the contract value on signing the Head Contract.

2.4.1.11 Scope Of Work / Performance Specification

The Scope of Work denotes the extent of work which Lend Lease is obligedunder the Head Contract to carry out for the Clients. Generally, the descriptionfor the various elements of the work is based on Performance Specification.Performance Specification describes the quality and the extent of work inperformance terms, for example, air-conditioning temperature is to be between23 degree celsius plus or minus 1.5 degree celsius. This means that the air-conditioning system must perform within the stated temperature and ranges tobe contractually acceptable.

Some examples of key items to note in the Scope of Work are as follows :

• The depth of piling penetration is generally stated eg. up to the depth of 20m.This means that when piling exceed 20m in depth, a variation claim is submittedto the Client for the exceeded depth. Sometimes, a Client would assume thatthe piling penetration be measured at cut off ground level as oppose to theaverage ground level. If the penetration depth is less than what is stated inthe contract, a variation must be issued to the Client to give back the savingsin cost.

At times we may be giving back more money to the Client than what is actuallyallowed in the cost budget. For example, in one of LLS project, it was assumedthat the piling would exceed a stated depth in the contract. As such, weallowed for a higher unit rate compared to what was subcontracted out in thecontracted schedule of unit rate. As a result more money is returned to theClient than what was omitted from the subcontractor.

• One needs to be careful when specifying floor loading. For example, whenone stipulates a floor of 20KN per square metres floor loading, it implies a20KN per square metre imposed live load.

• One needs to be careful to specify point loads, machine loads or whether therack loads are just under the racks or to be evenly distributed across aisle,etc.

• One needs to understand the difference between the prime cost sum andprovisional sum. Prime Cost (PC) sum is generally used when the scope ofwork is known but the quality of the materials may change, for example, infloor tiling, floor coating system, painting etc. The Provisional Sum (PS)allowance is used to allow for cost for work where the extent of work is uncertain.


Works allowed under PC sum or PS must be reconciled by mean of a variationto the Client. Generally, it is quite straightforward to reconcile the ProvisionalSum items : simply omit the cost allowed in the contract and add for the costof the actual work done.

For PC sum items, one needs to consider the following :

• Whether this item is for supply or for the supply and lay complete. Forsupply only, this only indicates a material cost. In both instances, oneneeds to consider the wastage factor. This is in particular important whenone changes to very expensive material, for example, from ceramic tiles todark colour granite flooring.

For floor tiles, the material price is generally about $28 whereas for granite,it could be in the range of $200 to $300. In this instance, the wastageallowance becomes a very significant cost factor to allow for.

• What material cost to be reconciled in the variation to the Client? Forexample, ceramic tiles, it is generally allowed in the contract for the sum of$28 per square metres. The tiles cost could be $25 but because of longterm relation between supplier and Lend Lease, this cost could come downto say $23.

• Generally for mechanical and electrical works, apart from performancespecification, an equipment schedule specifying the type of equipment is alsoincluded in the contract. This is to minimize misunderstanding later on, wherethe Client thought he could get a upmarket product whereas an average priceproduct was allowed for in the Head Contract.

2.4.1.12 Schedule Of Unit Rates

• It is essential to define whether these rates are net or gross ie. allowing forLend Lease profit and design fee.

• For the mechanical and electrical unit rates, one needs to ensure that it iscovered back to back by subcontractors rates.

• As part of the overall strategy, one needs to review the unit rates and considerwhat are the possible variations that would occur during the course of theproject. If it is for addition work, the rates could be high and for omissionwork, the rate lower. However, one needs to ensure that this strategy wouldnot backfire as in the case of piling unit rate.


2.4.2 INSURANCES

Insurance coverage on all projects is a Lend Lease mandatory requirement.

General

Lend Lease have a regional insurance programme covering their Asian operations effective1 June 1998. This should be used to cover all projects up to a contract value of S$20million.

Where the contract value exceeds this figure then the project should be referred forquotation purposes.

Where the Owner provides insurances, then the Difference in Conditions (D.I.C.) rateshould be allowed for within the contract sum to ensure that the coverage purchasedcomplies with Lend Lease’s minimum insurance requirements.

Rating

• Contract Works - current rate @ 0.085% of project cost

• 3rd party liability - current rate @ 0.0361% of project costinc. Comp. Ops.

• D.I.C. - 25% of above ratings.

Projects Insured

All operations undertaken by or on behalf of Lend Lease involving demolition, removal,construction, reconstruction, renovation, repair, alteration, refurbishment and extensionwhere the following incidental operations

• drainage, sewerage, water reticulation, power supply and water treatment pipelines,• roads, airstrips, railways,• dams, canals, channels,• harbour and wet works,• tunnels, shafts and declines,• bridges

form no more than 25% of the total value of the Contract Works, OR where the totalcontract value of the Contract Works is less than S$250,000.

Notification

Notification is required only when a local policy is required under law or contract. Wherea local policy is required the attached pro-forma sheet should be completed and forwardedto Aon in Singapore, together with extracts out of our Head Contract, prior to projectcommencement.

Workmen’ s Compensation

Our regional Insurer, QBE Insurance (International) Insurance in Singapore have officesaround the region. These offices have been requested to provide competitive ratings for


workmens’ compensation coverages through Aon’s local operation. Where QBE do nothave local representation then an office with a strategic partnership/alliance with QBE willbe utilised to achieve the same result. The Project Manager should liaise with theOperations Manager to determine cover required before approaching Aon.

For Singapore projects workmens’ compensation is covered by QBE. The rate is 0.54%on the estimated labour component of the project cost (this is regulated as being 20% ofproject cost for construction works).

Excesses

Current excesses are

• Contract works - $5,000 any one occurrence

• Liability - S$10,000 in respect of asbestos related claims

- S$5,000 any one occurrence in respect of property claims

Special Issues

The following list is not all inclusive, but provides a list of basic insurance issues whichmight be required to be amended depending on the provisions in our Head Contract

• Maintenance/DefectsLiability Period - standard allowance is 12 months from Practical Completion/

handover.

• Maintenance/DefectsLiability Period - extended maintenance covering causes occurring during the

construction period.

• Owner’s Mortgagees - these are automatically cover under clause (f) of the standardinsurance document.


INSURANCE PROCEDURE

Provide the following details :

1. Name of Principal / Owner :______________________________________________________________________________________________________________________________________________

2. Project/ Contract Full Title :_____________________________________________________________________________________________________________________________________________________________________________________________________________________

3. Contract Value :

Currency

4. Construction Period :

5. Defects Liability/ Maintenance Period :

6. Scope of Works :____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

7. Location of Contract/ Project :_____________________________________________________________________________________________________________________________________________________________________________________________________________________

8. Attach copies of sections relating to insurances contained within the head contract.


9. Professional Fees/ Removal of Debris/ Expediting Expenses Provide details if required :_____________________________________________________________________________________________________________________________________________________________________________________________________________________

10. Temporary Buildings

Is the cost of temporary structures and buildings contained within the Head Contract amount.

If yes : do nothing.

If no : provide details.

11. Contractors Plant and Equipment

Is there plant or equipment that is our responsibility that the replacement valve would be inexcess of $50,000.00 eg. gensets, portable toilets, phone systems, plan printing, photo copiesetc.

If no : do nothing.

If yes : provide details.

12. Additional Information :

a) Any Excavation, required :i) Advise average and maximum depthii) Advise average and maximum width

b) Any piling required :If yes,i) Advise piling typeii) Advise dimensions of pile typesiii) Assumed average depthiv) Number of pilesv) % of contract sum

c) Basement structure required?If yesi) How many levels?

d) What are the Third Party surrounding properties in the vicinity of the construction project.What is the distance of the nearest surrounding Third Party property.

2.5 ADMIN - Registers

2.5.1 Consultant Register

2.5.2 Authorities Register

2.5.3 Drawing Register

2.5.4 Specification &Document Register

Asia Projects Operations Manual - Issue 1 / 2.5 Admin - Register sDesign ManagementRevision 0, 01/07/98

Admin - Registers

2.5.1 CONSULTANT REGISTER

The Consultant Register is required to keep an updated record of each of the consultantsinvolved on the project and their contact person.

2.5.2 AUTHORITIES REGISTER

The Authorities Register is required to keep an updated record of each Authority involvedon the project and their contact person.

2.5.3 DRAWING REGISTER

The Drawing Register is required to keep on updated record of the latest issue of drawingsfrom each design discipline. The Drawing Register should be update at each DesignMeeting and issued to the Project Manager Delivery to keep the site informed of the latestissue of each drawing.

2.5.4 SPECIFICATION & DOCUMENT REGISTER

The Specifications and Document Register is required to keep an updated record of thelatest issue of specification for each design discipline. The Specification and DocumentRegister is to be issued to the Project Manager Delivery to keep the site informed of thelatest issue of each specification.

Asia P


anual - Issue 1 / 2.5 A

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CONSULTANT REGISTER

Consultant Company Personnel Position Telephone Pager Handphone fax e-mail Addressin charge

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evision 0, 01/07/98

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AUTHORITIES REGISTER

PLANNINGDEPT. SECTION CONTACT CONTACT REFERENCE NO.

PERSON PH.JTC Land Owner EndorsementURA Plan lodgmentLTA Roads & TransportENV CBPU Pre-ConsultationFSB Building PlanMINDEF Height Control RequirementsBUILDING PLANBCD Building Plan Registration

Building Plan SubmissionFSB Building Plan

Services (ACMV)Services (Fire Protection)

LTA Roads & TransportCar Park

ENV Pollution Control(CBPU) Sewerage (Sanitary & Plumbing)

Environmental HealthDrainage

STRUCTURAL WORKSBSL Piling

Piling PermitSuper-StructureSuper-Structure Permit

INFRASTRUCTURE - INTERNALPUB WaterPOWER Electricity SupplyGRIDTELECOM Telephone Infrastructure

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DRAWING REGISTER

A: DESIGN DISCIPLINEITEM DRAWING NOS. DRAWING DESCRIPTION SIZE REVISION

Date

Asia Projects Operations Manual - Issue 1 / 2.5 Admin - Register sDesign ManagementRevision 0, 01/07/98

SPECIFICATION AND DOCUMENT REGISTER

Project No :Project Name :

Register Date Title Rev. Locations PagesNo.

001

002

003

004

005

006

007

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009

010

011

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Operations Manual.pdf

Documents

Transcript of Operations Manual.pdf