...Variation is a common circumstances in construction projects. Variation always occur in construction project and it is carry an important right from the inception until the completion of a project (Halwatura and Ranasinghe, 2013). According to Aftab, Ismail and Mohamad Faris (2014) variation as in the contract get involved with the modification of the original scope of works. The sources of variation can come from many factors. Variation can cause conflict and disapproval among the parties involved in construction projects (Aftab, Ismail and Mohamad Faris, 2014). In addition, it is very necessary to control variation in construction project. A clause is provided in the most standard forms of a contract which the client or his representative...
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...Design Responsibility under Design and Construct Contracts: Some issues for Principals Introduction There are a number of reasons design and construct (D&C) contracts are attractive to principals and lenders. There is a single point of responsibility for both design and construction aspects of the project, the principal is able to fast track the project although not all aspects of the construction are complete, there is greater certainty of price and the contractor is involved from the earliest stage in planning design and programming. In consequence, the principal will need to accept a higher price for the contractor to take on this additional risk compared to more traditional construct only contracts. This paper will identify some issues for principals to consider when allocating design responsibility to contractors within a D&C project. These issues arise as the design and construct process involves a fundamental conflict of interest. Principals desire to have constructed a product of the best quality for the lowest possibly price. The contractor on the other hand is more likely to make a higher profit if the product is of a lower quality (and therefore cost) and a higher price (as opposed to costs). In addition, although a greater proportion of design risk is placed on the contractor, this passing of risk is often accompanied by the abrogation of responsibility and loss of control. The paper will refer to the approaches of 3 standard form contracts -...
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...Construction Project Controls: Cost, Schedule, and Change Management UP-201 September 2004 CURT Owner Member Companies Abbott Laboratories Air Products & Chemicals, Inc. Ameren American Electric Power Baxter Healthcare Corporation Boeing Company Caterpillar Inc. Citigroup ConocoPhillips DTE Energy The Dow Chemical Company E.I. Dupont De Nemours & Company Eastman Kodak Company Ernst & Young ExxonMobil Chemical Company FMC Corporation FirstEnergy Corporation General Electric Company General Mills, Inc. General Motors Corporation HCA Healthcare Corporation Hercules, Inc. Honda of America Mfg., Inc. IBM Intel Corporation Johnson & Johnson Kansas City Power & Light Company The McGraw-Hill Companies MeadWestvaco Corporation Merck & Company, Inc. Owens Corning PSEG Power, LLC Pfizer, Inc. The Procter & Gamble Company Rohm and Haas Shell Global Solutions (U.S.), Inc. Southern Companies Sunoco, Inc. TECO Tampa Electric Company Toyota Motor Mfg. North America Tyco International U.S. Army Corps Of Engineers U.S. General Services Administration The University Of Cincinnati Associate Member Companies Alberici Group, Inc. BE&K Bechtel Egizii Electric, Inc. Fluor Corporation Hunt Construction Group Jacobs Engineering Group Rudolph/Libbe Companies The Shaw Group, Inc. Tetra Tech FW Inc. Turner Construction Company Zachry Construction Corporation Association Associate Members Associated Builders and Contractors (ABC) Associated General Contractors of America (AGC) Mechanical Contractors...
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...base on our situation) 2.2.5 Flexibility of Change Flexibility is about the ability to accommodate variation, for example design changes (Bennett and Flanagan, 1983). Variation can be known as change order that often happen during construction phase. (Turner, 1990) Lack of tender/contract information or error of it will cause the variation. The design team may have to modify the contract information when the issue of variations arising principally. After change the project scope or specification, the construction costs will increase and the profits also have to justify increasing. The controllable variation is one of the important factors to public client or private client due to the quality of work done and the completion time of a project. Certainty of price Certainty should not be conceived as an absolute assuredness, but instead a relative or sliding scale, i.e. “how certain” the price that procurement approach could offer. (Turner, 1990) The firm price of the project has to prepare and submit to clients before committing to it. Price of the project may include the design fees, construction fees, financing costs and management fees. During the period of project, the price certainty will be change. The estimator will produce approximate estimates for the client so that the project cost will be within the financial budget by getting the firm price before construction of the project. (Peter, 2004) The price certainty is important to client because they are easy to control...
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...Project Management ENGG 951 Final Project Project Management ENGG 951 Final Project Commercial Tower Construction By : Amro Hafez 4245209 Ali Akram 4601014 Aouis Alhamed 4446082 Lecturer Name : Prof. Kamal Jafaar Page 1 of 61 Project Management ENGG 951 Final Project Table of Contents 1. Introduction ..................................................................................................................................... 3 2. Initiating Process Group: .................................................................................................................. 4 3. Project Scope Statement .................................................................................................................. 7 4. Project planning & scheduling: ....................................................................................................... 12 5. Quality Management Plan: ............................................................................................................ 18 6. Health, Safety and Environmental Management (HSEM): ............................................................. 32 7. Risk Management .......................................................................................................................... 36 8. Project Cost Management:............................................................................................................. 47 9. Procurement Management .............................................
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...Contents Question 1 | Pages | Contact Documents | 1 | Execution of the Contract | 1 | Requirement of Writing | 1 | Domestic Building Contracts | 2 | Variations | 2 | Question 2 | | How a Court Interprets Ambiguities and Inconsistencies | 2 & 3 | Definitions of Key Words | 3 | Order of Precedence | 3 | The Parol Evidence Rule | 3 | “Maxims” of Construction | 3 & 4 | Relevant Clauses | 4 | Rectification of Contracts | 4 | Criteria for Rectification | 4 | Question 3 | | Void for uncertainty | 5 | lump sum payment | 5 & 6 | Fixed date for completion | 6 | Stipulating a liquated damages amount | 6 | The prevention doctrine | 6 | Entitlements to an extension of time | 6 | | | References | 7 | Question 1 An abundance of documents may or may not form part of the building contract. How can a builder protect itself from any argument of what documents constitute the contract? If it’s not made clear during the contract formation stage which documents will form the building contract, disputes regarding what documents constitute the contract are likely to occur. To avoid this, the following precautions should be adopted by the builder. Before evaluating the documentation, the formation of the agreement must be assessed to ensure all essential elements are included, to make the contract legally binding. These elements consist of an intention to create a legal obligation, an offer and...
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...of work and after completion of it. Hence stabilization of such soil is prime importance. Attempts have been made to stabilize these soils by using different materials such as lime, cement, asphalt etc. Industrial wastes such as fly ash, furnace slag can also be used for this purpose. In order to improve the engineering and index properties of soil, the experiments have been conducted with industrial wastes of steel foundry called as furnace slag plus black cotton soil. The results show...
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...EFFECT OF PROCUREMENT SYSTEMS ON THE PERFORMANCE OF CONSTRUCTION PROJECTS Abstract: Project procurement has been described as an organized methods or process and procedure for clients to obtain or acquire construction products. Apart from the traditional approach, there are now other “fast-tracking” or innovative procurement systems used by the construction industry world wide. The different procurement systems differ from each other in term of allocation of responsibilities, activities sequencing, process and procedure and organizational approach in project delivery. These differences have invariably affected the project performance. Project performance has been defined as “the degree of achievement of certain effort or undertaking” which relates to the prescribed goals or objectives that form the project parameters. There are many other elements that determine project success, but the focus of this paper is on the three critical parameters or project performance i.e. time, cost and quality. The aim of this paper is to look into the effect of the different procurement systems on the project performance. Since there are many different project procurement systems, it is appropriate for the purpose of this presentation to limit to the common ones i.e. traditional system, design and build and management contracting. Keyword: Project procurement, performance, time, cost and quality INTRODUCTION The procurement of construction project is vast in scope because it involves the gathering...
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...reputation. It does not necessarily have to be something negative to the customer, perhaps a company ships something better in construction, but that suppose a negative balance to the company, as they could charge the customer more for a better product. Indeed, most companies try to be fair to their clients and to their own interests; they want to earn money out of their sales as well as have all of their consumers happy. That is why quality control exists, to make sure that everybody gets what he or she wanted to get at the stipulated cost. As a matter of fact, quality is a term that existed since the early ages. It can be observed in architecture and articles from ancient civilizations as China, Rome and Greece. For example, the Great Wall of China expands about 13,000 miles and it is similar in both construction and aspect. Also, we can take a look at ancient Greek edifications where all pillars and details are similar among all the temples to keep consistency in Greek architecture. It is noticeable that architects and authorities in charge had quality standards in early ages. On the other hand, not only public goods were the one that were audited the most; Chinese demanded for quality during ancient Chinese ages as well; during the Tan Dynasty, the competent agency for textile trading stated that all craftsmen should live close to each other’s in order to increase likelihood among...
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...capital of Rs. 2000 million and with an objective to plan, promote and organize an integrated and efficient development of hydroelectric power in all aspects. Later on NHPC expanded its objects to include development of power in all its aspects through conventional and non-conventional sources in India and abroad. At present, NHPC is a Mini Ratna Category-I Enterprise of the Govt. of India with an authorized share capital of Rs. 1,50,000 Million. With an investment base of over Rs.3,17,000 Million Approx. , NHPC is among the TOP TEN companies in the country in terms of investment. Initially, on incorporation, NHPC took over the execution of Salal Stage-I, Bairasiul and Loktak Hydro-electric Projects from Central Hydroelectric Project Construction and Control Board. Since then, it has executed 13 projects with an installed capacity of 5175 MW on ownership basis including projects taken up in joint...
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...unavailable 2. Claims and payments made on early accomplishments were bloated; the contractor eventually abandoned the project 3. Unnecessary work items 4. Incorrect deductions of retention from progress payments due to failure to validate conformance with project schedule 5. Advance payment not recouped or not fully recouped 6. Ghost project 7. Defective project 8. Unauthorized honoraria of BAC Members, BAC TWG and BAC Secretariat 9. Excess construction materials not turned over to the Government 10. Scrap materials / Salvaged construction materials not turned over to the Government 11. Sub-standard or poor quality of work Causes: • Approved Budget for the Contract (ABC) not realistic • The BAC failed to conduct proper post-qualification 12. Excessive project cost Causes: • Inadequate detailed engineering activities • Overestimated quantities of work items • Overestimated quantities of materials • Overestimated construction duration • • • • Excessive prices of materials Excessive labor and/or equipment rental rates Unnecessary variation orders Price escalation granted not in accordance with the prescribed formulae 13. Delayed project completion Causes: • Right-of-Way acquisition not considered • Bidding Documents were not issued according to the required schedule • Pre-procurement...
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...2012 Technical Summary IAS 11 Construction Contracts as issued at 1 January 2012. Includes IFRSs with an effective date after 1 January 2012 but not the IFRSs they will replace. This extract has been prepared by IFRS Foundation staff and has not been approved by the IASB. For the requirements reference must be made to International Financial Reporting Standards. The objective of this Standard is to prescribe the accounting treatment of revenue and costs associated with construction contracts. Because of the nature of the activity undertaken in construction contracts, the date at which the contract activity is entered into and the date when the activity is completed usually fall into different accounting periods. Therefore, the primary issue in accounting for construction contracts is the allocation of contract revenue and contract costs to the accounting periods in which construction work is performed. This Standard shall be applied in accounting for construction contracts in the financial statements of contractors. A construction contract is a contract specifically negotiated for the construction of an asset or a combination of assets that are closely interrelated or interdependent in terms of their design, technology and function or their ultimate purpose or use. The requirements of this Standard are usually applied separately to each construction contract. However, in certain circumstances, it is necessary to apply the Standard to the separately identifiable components...
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...NEGOTIATION ISSUES, STYLES AND OUTCOMES IN BUIDING CONSTRUCTION PROJECTS IN THAILAND In construction industry, conflicts are inevitable in any construction projects. Construction projects require that every parties are related in term of negotiation such project managers, safety managers, clients, suppliers, designers, site engineers, and consultants. Negotiation is one potential consequence to succeed projects when comparing with other factors. Many negotiators need to understand their personal characteristics for bargaining. For any given issues, problem or conflict encountered, the participant has a negotiating position. Different construction projects have different conflict styles and different departments try to work together. Mr. Surapong Panja made a case study on “Negotiation Issues, Styles, And Outcomes: A Study of Building Construction Projects in Thailand”. He learned that construction industry always has conflicts that can be attributes to more factors such as change order, variation work, job safety, price adjustment (inflation or deflation), and time extension. These factors can produce many conflicts itself and may contribute germination and manifestation. Dispute is always negotiated by project participants, and the process of negotiation is the first task before considering other resolution methods. The project manager of contractor tends to use avoiding style. It is suggested that it is more important for negotiation outcome to understand the proper...
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...POWERS AND FUNCTIONS OF THE AUTHORITY. 9. STAFF OF THE AUTHORITY. 10. REGIONAL OFFICES. 11. NATIONAL WATER RESOURCES MANAGEMENT STRATEGY. 12. CLASSIFICATION OF WATER RESOURCES AND RESOURCE QUALITY OBJECTIVES. 13. DETERMINATION OF RESERVE. 14. CATCHMENT AREAS. 15. CATCHMENT MANAGEMENT STRATEGY. 16. CATCHMENT AREA ADVISORY COMMITTEES. 17. PROTECTED AREAS. Click Here & Upgrade PDF Complete Expanded Features Unlimited Pages Documents 18. NATIONAL MONITORING OF AND INFORMATION ON WATER RESOURCES MANAGEMENT. 19. STATE SCHEMES AND COMMUNITY PROJECTS. 20. PRECEDENCE OF SCHEMES AND PROJECTS. 21. ACQUISITION OF LAND FOR STATE SCHEME. 22. CONSTRUCTION OF WORKS FOR STATE SCHEME. 23. COMMUNITY PROJECTS. 24. CHARGE FOR BENEFITS RESULTING FROM SCHEMES AND PROJECTS. 25. REQUIREMENT FOR PERMIT. 26. PERMIT NOT REQUIRED FOR CERTAIN ACTIVITIES. 27. UNAUTHORIZED CONSTRUCTION AND USE OF WORKS. 28. EASEMENTS FOR WORKS. 29. PROCEDURE FOR OBTAINING PERMIT. 30. CONDITIONS OF PERMITS. 31. CHARGES FOR WATER USE. 32 . CONSIDERATIONS FOR THE ISSUE OF PERMITS. 33. ISSUE OF PERMITS IN EXCEPTIONAL CASES....
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...ine Different sociological views on changes in the experience of childhood in the past 50 years (24 marks) According to Aries (1962), childhood can be defined as a social construction. Children were once regarded as ‘little adults’ and an economic asset rather than a symbol of love due to the high death rates making it hard to emotionally invest. However, now, according to Pilcher, a key aspect of childhood is ‘separateness’ from adulthood. Aries definition of childhood as a social construction can be supported by cross-cultural differences and more specifically Punch (2001). Punch studied children in Bolivia and found that at age 5 children were expected to work and take on responsibilities. This cultural variation shows childhood to be a social construction as if it were biological everyone would have the same experiences. There have been several state policies that have constructed and defined childhood, one of which is the children’s act which aimed to give children more rights to make a positive contribution to society. It argues the best place to raise children is at home with their parents which brought about the social view that it is essential for children to spend time with immediate family in order to grow up to be independent. In addition to this, another state policy was the Factory Act which saw the removal of young children from work, strict hours placed upon adolescents and compulsory education put into place. This effected society by presenting...
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