1 / 20

Presented by Sameh Elish January 6, 2004

Determination of Construction Contract Duration for Public Projects in Saudi Arabia By: Ahmed Saleh Al-Sultan, June 1989. Presented by Sameh Elish January 6, 2004. OUTLINE. Introduction Research Objective Literature Review Research Methodology Results and Analysis

lowell
Télécharger la présentation

Presented by Sameh Elish January 6, 2004

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Determination of Construction Contract Duration for Public Projects in Saudi ArabiaBy: Ahmed Saleh Al-Sultan, June 1989 Presented by Sameh Elish January 6, 2004

  2. OUTLINE • Introduction • Research Objective • Literature Review • Research Methodology • Results and Analysis • Conclusions and Recommendations

  3. INTRODUCTION • The issue of time in construction projects is important for both the owner and the contractor. • Construction Contract Duration (CCD) is the amount of time given to the contractor to execute the work described by the plans and specifications. • It is a very important issue of any construction contract documents.

  4. RESEARCH OBJECTIVES • To investigate the available methods used to set CCD and the factors affecting the determination process. • To study and evaluate the current practice applied for set CCD for public projects in Saudi Arabia. • To make recommendations related to the practice of setting CCD in the Kingdom.

  5. SCOPE AND LIMITATIONS • The scope of this research will be limited to public construction projects in Saudi Arabia (owner’s point of view). • Projects that the Government Department (project owner) has authority to decide on the setting of CCD. • Projects that have value of SR 100 million or less will be under discussion in this research.

  6. LITERATURE REVIEW • There is a relationship between time and cost. • In general, the time dependent costs increase linearly with the passage of time. • Examples of time dependent costs: cost of supervision and site office utilities. • CCD is normally expressed in either working days, calendar days, or a fixed date for completion.

  7. LITERATURE REVIEW • Methods for setting CCD • Construction season limits: project must be finished prior to a certain season • Quantity or production rate:breaking the project down into the major controlling work items • Work flow technique: large complicated projects where a lot of coordination effort is needed (CPM) • Estimated cost:related to contract time or working days required to complete a particular project

  8. RESEARCH METHODOLOGY • Interviews and telephone calls were performed with some of government officials. • A questionnaire was developed in order to collect the data needed for the research. It consists of 18 questions. • The total population consists of 70 authorities (government departments responsible for executing public construction projects). • A total of 47 completed questionnaires were used for analysis. SAS software were used.

  9. RESULTS AND ANALYSIS • Who set CCD: • 91% of the respondents reported that CCD is set at their department by either top management, engineering department, or by hired consultant. • Attention paid to setting CCD:

  10. RESULTS AND ANALYSIS • Methods of setting CCD: • Budget allocations (30%) • the need for the project (18%) • Past experience (13%) • Critical Path Model (CPM) (8%) • Joint work of the engineering department and a consultant (8%) • Contractors are requested to submit CCD with their bids (6%) • The majority of respondents (87%) expressed the need to apply a method to set CCD.

  11. Negative Consequences for Short CCD Rank Poor performance by contractors resulting from inadequate time allocation to work items 1 Excessive administrative burden resulting from delay claims 2 High bid prices 3 Positive Consequences for Short CCD Raising contractor’s awareness of the importance of time 1 Promoting effective management 2 Low prices due to short CCD 3 RESULTS AND ANALYSIS

  12. Negative Consequences for Long CCD Rank Encouraging contractors to bid more work than can be handle in a timely manner 1 Discourage effective management and innovation 2 Leading to poor performance resulting from discontinuous operations (relaxed schedule) 3 Positive Consequences for Long CCD Good coordination with other agencies 1 Permitting more contractors to bid 2 Low bid prices 3 RESULTS AND ANALYSIS

  13. RESULTS AND ANALYSIS • Factors affecting the setting of CCD: • Project size • Site conditions • Project design • Top management assessment of the city need of the project • Project type • Factors affecting CCD can be grouped into three main categories: project ,contractor ,and environmental characteristics.

  14. CONCLUSION • There seems to be no systematic engineering methods or at least formal procedures followed by Government Authorities to set CCD for public projects. • CCD is currently set by engineering department, hired consultant, or top management of the government agencies. • Several factors affects setting CCD. Among the most important factors are project size, design, budget allocations, type, and site conditions.

  15. RECOMMENDATIONS • The Government procurement Regulations should address the setting of CCD. Articles have to be written to establish guidelines to improve the current practice of setting CCD. • Engineering methods should be developed and used to set CCD. Concerned Government Authorities such as Ministry of Housing and Public Works should take the initiative to develop such methods. • The engineering department of concerned Authorities should participate in the setting of CCD.

  16. RECOMMEND GUIDELINES TO SET CCD • Step 1: Determine a CCD range. Based on: • The project’s tender documents. • Factors affecting CCD. • The experience gained from constructed projects. • Using the above inputs and utilizing scheduling techniques (CPM, PERT, Bar chart), production rates, or any other approach, a reasonable CCD range can be estimated.

  17. RECOMMEND GUIDELINES TO SET CCD • Step 2: Check weather the setting of CCD is under the authority of the project owner. • If there is any preplanned completion date established by higher authorities to meet special operational or public needs. • The project owner can discuss CCD with decision makers based on the range established in step #.1

  18. RECOMMEND GUIDELINES TO SET CCD • Step 3: If the project owner is authorized to set CCD, then he can proceed to check weather budget allocation constraints exist or not. • Step 4: In the case where there is no budget allocation constraint, the project owner is to identify his objectives of CCD. • Objectives include: at least possible bid price, at shortest possible CCD, or an optimal total cost CCD.

  19. RECOMMEND GUIDELINES TO SET CCD • Step 5: The set CCD, produced by either steps #3 and 4, should be reported to top management for approval. • Step 6: The approved CCD is to be incorporated in the tender documents.

  20. THANK YOU

More Related