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  1. CONSTRUCTION DOCUMENTS By Witoon Keoma B.Eng. Civil Engineering ( K.U. ) M.Sc. Construction Engineering ( U. of Leeds U.K. )

  2. Construction Project Process

  3. Composition of Project Construction Documents • Project Initiation Documents • Detailed Design Documents • Tendering Process Documents • Contract Documents & Appendices • Construction Execution Documents • Contract Closeout Documents • Final Account & Reports

  4. Project Initiation Documents • Project Initiation & Feasibility Studies • Conceptual , Budgeting & Detailed Design Pre-Qualification Invitation Issuance • Term of References ( TOR ) • Technical Proposal • Evaluation Criteria for Technical Proposal • Tender Documents • Evaluation Criteria for Tender • Project Financial Obligation Documents

  5. Detailed Design Documents • Design Scope and Concept Requirements • Design Standards and Specification • Sequential Diagrams • Calculation Sheets • Cost Estimates • Drawings and Associated Documents • Construction Specification and Standards • Professional Registrations and Permits • User Interfacing Design Reports

  6. Tendering Process Documents • Consultants & Contractors PQ Documents • Terms of Reference & Technical Proposal • Tender Invitation & Bid Clarification • Technical & Financial Tender Documents • Evaluation for Technical & Financial Offers • Prices Negotiation & Contract Documents Preparation • Awarded The Contract & N.T.P

  7. Contract Documents & Appendices • Form of Contract Agreement • General Conditions of Contract • Particular Conditions of Contract • Drawings • Specifications • Bill of Quantity and Contract Prices • Technical Proposal and Attachments • Organization Registration and Requested Papers

  8. Construction Execution Documents • Project Procedures • Project Handbook • Technical, QA & QC Procedures • Documents Control Procedure • Environmental Health and Safety Procedures • Interim Payment & Measurement Procedures • Variation & Changes Procedures • Claims & EOT Procedures • Disputes Resolution & Arbitration Procedures • Loan, Financial & Budget Administration

  9. Contract Closeout Documents • Instructions & Variation Orders Procedure • Substantial Completion Certificates • Completion Reports of Outstanding Works • Taking Over Procedures • Test & Commissioning Certificates • O & M Manuals Submission • As-Built Drawings • Defect & Liability Settlement Reports

  10. Final Account & Reports • Defect & Liability Certificates • Releasing of Bonds & Guarantees • Releasing of Retention Money • Balance Account with Breakdown Final Statement Details • Provision of Contract Warranties • Project Records & Conclusion Reports • Extra Stock Material & Parts with Lists

  11. Mitigation of Project Disputes

  12. Causes of Construction Disputes • Ambiguous Owner’s Requirements • Inappropriate Procurement Practices • Insufficient Preparatory Planning & Design • Poor Project & Commercial Management Procedures • Ineffective Communication Procedures • Inappropriate Risk Allocation Contracts • Inadequate Experiences Human Resource

  13. Classification of Construction Disputes • Time Related Disputes • Financial Related Disputes • Inappropriate Contract Disputes • Technical Related Disputes • Ambiguous Owner Requirements • Human Related Disputes • Third Parties & Society Related Disputes

  14. Time Related Disputes • Hand over construction premises and its access • Issuance of contractual documents • Untimely submission and approval • Availability of utilities during construction • Recompense and time extension allowed when uncalculated hindrances occur • Poor Interface Management Among Project Packages

  15. Financial Related Disputes • Ambiguous conditions of payment & Measurement • New Rates to be Negotiated • Hidden Work Items • Valuation and payment based on remeasurement of quantities • Daily damages to be recovered by the contractor when the owner causes delays in the project

  16. Inappropriate Contracts Disputes • Contractual risks must be properly allocated • General Conditions not applicable can be disregarded • Emphasis changed to party responsible for design • All claims, from either Party, have to follow a strict procedure • Time or information is insufficient before contract signature • Construction Document ReviewDefines and clarifies the contract and constructiondocuments • Evaluates contractor constructability

  17. Technical Related Disputes • Plans and specifications errors • Professional negligence standard. • Constraints on fee as they relate to ability to produce high-quality documents • Level of completeness required for design &pre-bid documentation • Review the construction documents before submitting the bids to identifypatent, or obvious errors, in the contract documents • Effect of failure to catch errors with no additional compensation and liability to owner • Allocation of risk for unexpected site conditions

  18. Ambiguous Owner Requirements • Change Objective by Market Demand • Additional Works by Technology Advance • Inadequate Pre-contract Information • Scope Change by Third Parties Influence • World Economy Impact Changes

  19. Human Related Disputes • Inadequate Experience Professional • Inappropriate Skilled Workers • CSC, whose job is principally to supervise and monitor the work • Consultant is no longer stated to be ‘impartial’: he ‘shall be deemed to act for the Employer, except when fair determinations are required • Untimely Submittals & Approvals

  20. Third Parties & Society Disputes • Site Access and Routing Maintenance • Construction Pollution Impacts • Construction Site Environmental Protection and Its Impact • Surrounding Societies Mutual Interests • Local Authorities and Governing Bodies • Underground Protected Properties at Site

  21. Huge Project Under Construction

  22. Disputes Prevention • Hire experienced design professionals. • Provide the designers sufficient time and budget. • Early negotiation to creating a cooperative team approach Pre-contract reviews to properly assess and allocation risks • Risk audits, Improper risk allocation frequently leads to disputes • Training to provide competent, experienced field personnel • Compliance audits to contract clauses that outline a flexible framework for dispute resolution • Realistic allocation of risks • Open communication & incentives for cooperation • Partnering

  23. Dispute Resolution Board • An impartial third party at the onset of any potential dispute can bring real benefits, support relationships and bring a collaborative and creative problem-solving attitude to the project. • The third party can be used to facilitate negotiations, discussions, consensus-building and relationship-building, or to manage existing or potential difficulties in a wide variety of situations • The dispute board members are appointed at the outset of a project by the parties as individuals whose views and decisions will be respected. • Dispute Resolution Boards (DRBs) are typically a panel of three neutrals appointed by the parties that become part of the project team. • They attend periodic meetings, review essential project documents and assist in the identification and resolution of issues and potential problems. • DRBs are usually, but not always, established in the contract documents. A dispute is presented to a DRB at a hearing, and the DRB’s determination is generally presented as a recommendation or a non-binding decision. • The readily available dispute resolution system to handle those disputes not only will allow the project to continue with little loss of time and money, but it will also allow the Parties to continue to work together on the project after an understanding is reached or a neutral ADR Specialist renders a decision

  24. The Partnering Process • Creating a cooperative team approach • Partnering is a voluntary process, and joint costs are typically shared by the parties • Partnering includes working together as a team, developing a common set of project goals that the combined project team supports • Open communication and access to information, empowering participants to resolve issues at the lowest appropriate organizational level, • Reaching decisions and solving problems quickly and by consensus • Maintaining the relationship throughout the project

  25. Design-Bid-Build Project Coordination & Communication Owner as Employer . Employer’s Representative Design Consultant Project Management Consultant ( PMC ) Construction Supervision Consultants Main Construction Contractors

  26. Design Build ProjectCoordination & Communication Owner and Employer’s Representative Project Management Consultant Main Contractor Designers – Construction Manager QA & QC

  27. Design Build Contract • Most suitable for too many packages project • Better for time constrained project • Project completion time is a must • Limited budget with minimal allowance • Best suit to rehabilitation & expansion project with sensitive working environment