Engineering Management

1. 1 Engineering Management Assistant Prof. Dr. Korb Srinavin

2. 2 Outline ???????????????????????? ?????????????????????????????? ???????????? ?????????????????????? ?????????????? ????????????????????? ????????????????????????????

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5. 5 ?????????????????????(Budgeting and Estimates) BUDGET FOR CONSTRUCTION PROJECTS In all organizations, a construction project is a capital investment project. Budgeting for the project will, therefore, be different from annual budgets for the organization. Budgeting in organization The usual approach in most organizations is to base next year's budget on this year's budget and expenses. A percentage is then added based on anticipated cost increases, thus Next year's budget = This year's budget + X, The value X may be based on 1. Get feelings, 2. Inflation forecasts, 3. Additional plans made.

6. 6 1. Top-down budgeting Management has been said to be better at judging overall project costs than the cost of individual parts. Top down budgeting may vary from an assessment of probable cost by individuals, costs generated through consensus of experts' is then broken down to individual parts. The broken down may use factors generated from experience. This approach leaves the setting of overall budget to the top management while lower level managers have to distribute budget allocated to them to parts under them. Using this approach, overall budgets may be accurate while errors are infighting between lower level managers.

7. 7 2. Bottom-up budgeting In this approach, costs are calculated for individual parts and then summed up for the whole project. There is thus the need to ensure that all parts are included. A major failing is that individuals may tend to "overstate" budgetary requirements in the knowledge that top management will reduce the budget. However, the approach lead to participative management making the lower levels not to feel that budgets are imposed. 3. Mixed approaches Top management may call for budget requests and then use suggestions to make a budget that is distributed down the organization.

8. 8 Budgeting for construction projects Construction project budgets are, ideally based on estimates of costs of construction resources. However, most budgets are set before design is finalized. It thus means that there will be much reliance on historical costs. In practice, typical approaches that may be used are 1. Setting a fixed amount to which design should conform. 2. Using updated historical unit cost records to generate overall costs which is then distributed to parts. The overall cost will have professional fees added together with other expenses. 3. If the development of the design permits it, resource costs may be calculated and even project plans may be used for this purpose to make the budget time-related.

9. 9 Important notes 1.A budget depends on estimates. Budgets are good to the extent that estimates are good. 2.Estimates are made by people with preferences. 3.Budgets made early can be used to control the design process.

10. 10 TENDERING BIDDING AND CONTRACTS Contract strategies 1. Choice of contractor, 2. Method of selecting contractor, 3. Organization structure to control design, construction and interfacing of the both, 4. Selection of the content and sequencing of work package, 5. Tender documents, including contract condition, risk allocation.

11. 11 The tendering procedure 1. Open tendering 2. Selective tendering 3. Serial tendering 4. Negotiation tendering

12. 12 1. Open tendering The project is advertised for all qualified contractors to submit a bid. The job can be advertised in several ways such as trade magazine, public advertisement or local newspapers, designers, agency bid lists, organization - plan service centers and national publications. Advantage Disadvantages More choice Too many bidders, Definitely competitive Higher possibility of low bids

13. 13 2. Selective tendering The project owner may decide to limit the number of contractors (reasonably, 6-8 contractors) allowed to submit bids for the project. This may be done by having approved lists of contractors, then use selectively approaching contractors known to the owner.

14. 14 3. Serial tendering This method of tendering is for continuing work (which the work is done in stages).

15. 15 4. Negotiation tendering This method of tendering is that a good contractor may be asked to tender alone for the job and the price negotiated with the firm. In other words, the owner prior accepted the contractor performance (and intent the contractor to perform the job) but still need to negotiate the cost of project with the contractor prior proceeding.

16. 16 Approved lists of the contractors The owner may have an approved list of contractors for project. The propose is to limit the number of bids received for any project and monitor the quality of services received from contractors. The process of getting into the approved list is known as "pre-qualification" or "pre-selection".

17. 17 Criteria for pre-qualification 1. References, reputations and past performances, 2. Financial stability, 3. Technical expertise. Criteria for pre-selection 1. References, reputations and past performances, 2. Financial stability, 3. Technical expertise, then add some additional criteria such as 4. Status of current work program, 5. Project-specific criteria. In many instances, the two procedures are referred to as "pre-qualification".

18. 18 Disadvantages of pre-qualification 1. The need to continuously update information in changing market situation, 2. Indiscriminate distribution of company secrets,

19. 19 Decision to tender A good contractor does not need to tender for every job available in the market. The decision to tender is based on two (2) major considerations as follows:

20. 20 1. Information supplied 1.1 The name of the job, 1.2 The name of client and designers, 1.3 The name of any consultants with supervisory duties, 1.4 Location of site, 1.5 A general description of the work, 1.6 The approximate cost range of the project, 1.7 Details of any nominated sub-contractors/supplier, 1.8 The form of contract to be used, 1.9 The procedure to be adopted in examining bids, 1.10 Whether contract is to be under seal or under hand, 1.11 Anticipated date of possession of site, 1.12 The period of completion of the works, 1.13 The duration of the tender period, 1.14 The period for which the tender is to remain open, 1.15 The anticipated value of liquidated damage (if any), 1.16 Details of bond requirements (if any), 1.17 Any particular conditions relating to the contract.

21. 21 2. Company consideration 2.1 The company's current workload, turnover and recovery of overheads, 2.2 The company's financial resources, 2.3 The availability of resources to undertake the job, 2.4 Type of work, 2.5 Location of the contract, 2.6 The identity of the client or promoter and his/her representatives, 2.7 A detailed examination of the contract documents. If the company decides to tender, an of cost is prepared and a tender submitted in accordance with owner's requirements. Normally, estimate preparation will only be done after through "site investigation".

22. 22 Estimating process The following steps describe the process of producing a cost estimate by the contractor as a basis for tender submittal: 1. Decision to tender, 2. Programming the estimate, 3. Collection and calculation of cost information 3.1 Labour, 3.2 Plant, 3.3 Materials, 3.4 Sub-contractors,

23. 23 4. Project study 4.1 Drawings, 4.2 Site visit, 4.2.1 Description of site, 4.2.2 Position of existing services, 4.2.3 Description of ground conditions, 4.2.4 Any problem related to the security of the site, 4.2.5 A description of the access to the site, 4.2.6 Topographic details of the site, 4.2.7 A description of the facilities available for the disposal of soil, 4.2.8 A description of any demolition works of temporary works to adjoining building, 4.3 Method statement

24. 24 5. Preparing the estimate 5.1 Operational estimating, 5.2 Unit rate estimating, 5.3 Combined method, operational and unit rate estimating, 6. Site overheads 6.1 Site staff, 6.2 Cleaning site and clearing rubbish, 6.3 Site transport facilities, 6.4 Mechanical plant which is not included in item rates, 6.5 Scaffolding and gantries, 6.6 Site accommodation, 6.7 Small plant, 6.8 Temporary services, 6.9 Welfare, first aid and safety provisions, 6.10 Final clearance and handover, 6.11 Defects liability, 6.12 Transport of workers to site, 6.13 Abnormal overtime, 6.14 Risk

25. 25 7. Estimator's report 7.1 A brief description of the project, 7.2 A description of the method of construction, 7.3 Unusual risks which is not covered in contract documents, 7.4 Unresolved or contractual problems, 7.5 Design assessment and financial consequences, 7.6 Assumptions in estimated, 7.7 Assessment of the profitability of the project, 7.8 Other market and industrial information,

26. 26 The cost of work to be included in the estimates are reported to senior management in cost reports containing the following details: 1. Main contractor's labour, 2. Main contractor's plant allocated to rates and in preliminaries, 3. Main contractor's materials, 4. Main contractor's own sub-contractors, 5. Sums of nominated sub-contractors, 6. Sums of nominated suppliers, 7. Provisional sums and dayworks, 8. Contingencies, 9. Amounts included for attendance on sub-contractors, 10. Amounts included for materials and sub-contract cash discounts.

27. 27 ???????????????????????????? (Introduction to Engineering Economics) See ???????????1, 2 & 3 .ppt ???????????1.ppt ???????????2.ppt ???????????3.ppt

28. 28 ?????????????????? ???????????????(Engineering Contracts and Insurance) PROJECT DELIVERY SYSTEMS FOR CONSTRUCTION PROJECTS Project delivery system is an organization which assigns specific responsibilities and authorities to people and organizations, and which defines relationships of the various elements in the construction of a project. There are four (4) basic project delivery systems:

29. 29 1. The engineering-contractor (E-C) system in which responsibility for engineering, materials acquisition and construction are assigned to one responsible organization. Sometimes E-C is referred to as "turn key system". Owner will usually that there is no overall project manager that can speak for both engineering and construction. Advantages: 1) One responsible contract for the owner with materials acquisition and construction closely coordinated with engineering, 2) Moderate owner participation, 3) Improved construction completion date over the E+C system, 4) Improved costs and quality by liaison utilization without contractual problems and delay of project completion. Disadvantages: 1) Inability to establish form project cost in the early stages of construction, 2) More problems in labour relations for a large national operator as opposed to a local contractor, 3) Only fair "checks and balances" on the E-C apply in contrast with separate contracts for engineering and construction, 4) The problem of controlling project cost, particularly in monitoring accumulated cost as construction progresses and projecting final cost from monitoring effort.

30. 30 2. The engineering-plus-contractor (E+C) system in which engineering is assigned to one organization and after all engineering is completed, material acquisition and construction are assigned to another organization, during the period when engineering is in progress, there is a direct relationship between the owner and the engineer, at that time, no contractor is involved, when engineering is completed and a construction contract is in effect, there will be direct and responsible relationships between the owner and the contractor and between the engineer and the contractor, the relationship between the owner and the engineer will still be maintained. Advantages: 1) An accepted historically supports system with legal and contract precedents well established, 2) Provision of good checks and balances between the owner, engineer and contractor, 3) Determination of project cost before construction contracts are let. Disadvantages: 1) Construction expertise does not benefit design (minimal E-C liaison), 2) The longest project completion time, 3) Maximum owner participation, 4) Greater coordinating and administrative costs on the part of the owner in most cases.

31. 31 3. The professional construction manager (CM) system in which a competent construction manager with no vested interests in design or construction brings the practical construction viewpoint to bear during the design phase and using phased construction, provide overall management for all construction elements, professional construction manager as a focal point for the relationships of the three (3) basic elements, these relationships persist during the entire life of the project, the professional construction manager has had an important role in the development and presentation of the engineering design on the basis of his contribution to construction practicability, suitability and cost, and will also have strong voice in the interpretation of engineering design as well as provide an excellent control in times of rapidly changing costs and economic uncertainty, Advantages: 1) Application of special construction skills with no conflict of interest (excellent E-C liaison), 2) Moderate owner participation, 3) Independent evaluation of costs, schedules and construction performance, 4) Good coordination of engineering and construction, 5) Minimal time for project completion, 6) Best system to construct a project during a period of rapidly changing costs and economic uncertainty, 7) Application to any project delivery system if function is clearly defined. Disadvantages: 1) Usually no firm project cost establishment in the early stages of construction, 2) Another layer of responsibility and administrative cost, 3) Forcing of the owner or his agent into the position of referee in settling differences between construction elements, 4) Lack of fiscal responsibility on part of professional construction manager.

32. 32 4. The professional specification (PS) system in which a lump-sum contract is placed with one organization which provides a complete "turnkey project", including engineering, materials and construction on the basis of a performance-type specification, in this system, the engineer is chosen by the contractor on the basis of his special knowledge and experience relating to the project and to the construction methods to be used, thus, there is a direct relationship to the construction and engineering but "none" between the owner and engineer. Advantages: 1) Lowest possible cost and excellent time of completion, 2) Determination of project cost before construction contract is let, 3) Minimum owner participation, 4) One responsible contract for the entire project, 5) Provides economical variation in details of construction without affecting performance of finished project. Disadvantages: 1) Details of construction sometimes causing personal dissatisfaction, 2) Unsatisfactory or barely satisfactory completed project performance may be occurred, 3) Limited chance for owner to select most acceptable details of construction or equipment, 4) Limited application except for highly specialized or standard designs.

33. 33 CONSTRUCTION CONTRACTS A contract is an agreement between two (2) or more parties for a specific purpose. For the specific case of construction, it is an agreement between the owner and the contractor to get a facility built. However, there may be other contracts in a construction contracts such as the contract between a supplier/sub-contractor and the main contractor.

34. 34 Conditions for contracts 1. Consideration (the purposed obligation between both parties) "Contract cannot be signed for nothing". 2. Meeting of minds Both parties have the same "objectives" to enter the contract. 3. Intention to enter into binding agreement Each party has a willingness to enter the contract.

35. 35 Entering into a contract usually progresses through three (3) stages: 1. Invitation to treat A first party (A) makes an invitation to another party (B) to consider entering into a contract for a stated purpose. In a construction contract, the owner usually invites contractors to bid by making bidding documents available to them. 2. Offer Party B having throughly considered the conditions attached to A's invitation, may decide to act on the invitation by making an offer. For instance, the contractor may decide to submit a bid and by the bid, he offers to build for a price and is at liberty to state his conditions. 3. Acceptance Party A concludes the contract by accepting B's offer. A contract is then signed between the two parties and the work, in the case of consideration, executed according to the contract conditions.

36. 36 Four (4) basic type of construction contracts 1. Lump-sum contract Lump sum contract, is sometimes referred to as "fixed cost contract" which the contract price is stated as a total sum of the project. This is based on the estimates of costs by the contractor and addition to cover profit and risk. It is assumed that the contract work will be undertaken for that price. It is the contractor's responsibility to estimate costs carefully, and ensure that construction costs on site are well calculated for prompt payments. This method can be applied only in case that the scope of work is clearly defined. In other words, design drawings and all the related documents such as specification are completed and available. In practice, this method is suitable for the project which construction period is relatively short (say ? 1 year). Price = Cost + Markup (profit, tax, overhead, risk)

37. 37 2. Time-materials contract The contractor undertakes the job, the owner pays for construction costs and "adds" a fee for management by the contractor. It is necessary to have a reputable and efficient contractor who will undertake detailed accounting for this contract. The contract type is very good when work must be started early of time is the critical issue and for construction of specialized projects. Time-materials contract, is sometimes referred to as "cost plus contracts" comprise four (4) different categories: 2.1 Cost plus fixed fee, Price = Cost + Specified amount of fee, 2.2 Cost plus fluctuated fee Price = Cost + Amount of fee depending on fluctuation of construction cost, 2.3 Cost plus percentage fixed fee, Price = Cost + Percent fixed fee, 2.4 Cost plus percentage fluctuated fee Price = Cost + Percent fluctuated fee.

38. 38 3. Guaranteed-maximum-price contract The contractor agrees to undertake the project for a fixed price (X) and also gives a guarantee that a ceiling price will not be exceeded unless the owner makes further additions to the work. Good management by the contractor is crucial to successful application of this type of contract. In guaranteed-maximum-price contract, the owner gets savings while the contractor takes the risk. Price = Fixed price with a guarantee that a ceiling price will not be exceeded unless the owner makes further additions to the work.

39. 39 4. Management contract A contractor takes over the responsibility of management for a contract. He/she may or may not execute part of the work himself/herself but has overall responsibility to plan and supervise construction work, approve changes, budget and control the execution of the project.

40. 40 Build-operate-transfer (BOT) project and contract Build-operate-transfer were developed a means for involving private developers in government infrastructures projects. Many developing countries now see this approach as the best way to provide basic infrastructures. transit system. Arrangement of BOT projects 1. Build 1.1 Inception and Concessionaire, 1.2 Design, 1.3 Management of project and implementation, 1.4 Carrying out the procurement, 1.5 Construction (build the project), 1.6 Finance (getting loan and debt services), 2. Operate 2.1 Management and operation, 2.2 Maintenances, 2.3 Delivery of product and/or services, 2.4 Receive delivery payment, 3. Transfer Handover in operating condition at the end of contract period to the responsible sector/agency.

41. 41 Forms of contracts Forms of contract usually follow the type of contract. However, a form may be prepared by different organizations. Contract forms can be classified under the followings: 1. International forms, for example, FIDIC, 2. Local forms, 3. Company/organization forms. Forms of contract need specific tailoring to suit project situations.

42. 42 Award of contract Most construction contracts are awarded on the basis of competitive bidding. A contract is usually awarded to the "lowest responsible bidder" (or "lowest responsive bidder"). Nearly all public contracts use this approach. The owner makes decision regarding responsibility after the bid has been opened. The lowest responsible bidder has been defined as "the lowest bidder whose offer best responds in quality, fitness and capacity to the particular requirements of the proposed work".

43. 43 The owner may request qualification information to be submitted with bids or undertake pre-qualification of contractors. Followings may be included as criteria for judging irresponsibility: 1. Default on previous contract, 2. Proof of dishonesty, 3. Past difficulties in completing projects on time, 4. Reputation for uncooperativeness and non-standard practices. The surety's recommendation may be relied upon for judging responsibility. The surety, for the purpose of issuing bonds will consider the followings: 1. Finances, 2. Experience record, 3. Other qualifications. The chosen contractor is issued a "notice of award" which is forwarded with information on how and when the contract will be signed. The notice sets forth the conditions of award in form of a letter.

44. 44 Letter of intent In some cases, the owner may want the contractor to start working before contracts can be signed. A letter of intent is issued by the owner to the contractor a evidence that there is intention to enter a legal relation. The letter will also state the limits of liability as well as the types of work that the contractor should begin.

45. 45 The contract documents The contract defines exactly and explicitly the rights and obligations of each party to the contract. Construction contracts are traditionally lengthier than other commercial contracts because of the unique nature of the product or service. The essential documents that make up the construction contracts are as follows: 1. General conditions, 2. Supplementary conditions, 3. Technical specifications, 4. Drawings, 5. Addenda (which are others documents/things needed to be included), 6. Agreement.

46. 46 Advertisement, invitation for bids, instructions to bidders and proposal are preliminary to the contract but are usually included by reference. Performance and payment bonds may also be considered as part of the documents. The documents collectively define what is intended by the contracting parties. A person should read before signing as failure to do so does not excuse one from the contract. Standard forms of contracts are in general use because contractors prefer documents and terms with which they are familiar.

47. 47 The agreement The agreement is specifically designed to formalize the contract. It is the single instrument that brings together the contract segments by reference and functions for the formal execution of the contract. It presents a condensation of the contract elements, stating the work to be done and the price to be paid for it, and providing suitable spaces for the signatures of the parties. The agreement usually contains clauses not in the conditions (supplementary clauses) such as the completion time of the project, liquidated damages, penalty, particulars concerning the payments to the contractor and that list the contract documents.

48. 48 The agreement may be a standard form or specially prepared for that purpose. Types of construction contracts shall be as follow: 1. The lump-sum contract, 2. The unit-price contract, 3. Cost plus contracts, 4. Special reimbursable contracts, 5. Cost-plus-percentage-of-cost contracts, 6. Cost-plus-fixed-fee contracts, 7. Incentive contracts, 8. Guaranteed maximum cost contract.

49. 49 Contract clauses Clauses are nontechnical provision that pertain to the conduct of the work. Contract clause constitute the general conditions, supplementary conditions and provisions of the agreement.

50. 50 CONSTRUCTION INSURANCE Construction harzards Discussion on accidents in construction has shown that construction is a hazadous undertaking. The contractor therefore, needs to protect himself/herself against liabilities that may be incurred through accidents, strikes, etc to prevent ruinous financial losses. Liabilitiy for accidents can devolve on the owner or architect/engineer as well as on the main contractor and sub-contractors. Contracts normally, require the contractor to protect the owner against such liabilities. Thus, the contractor is often required to protect others as well as himself/herself.

51. 51 Insurance policy An insurance policy is a conditional contract in which the insurer promise for a consideration, to assume financial responsibility for a "specific" loss or liability. It is a legal document containing many provisions pertaining to the loss against which it affords protection. The law of insurance is very close to law of contracts. Each country of state will have laws regulating insurance practice. A loss suffered by the contractor as a result of own deliberate actions cannot be recorded under the insurance policy. His/her negligence will not invalidate the policy. Premiums are usually paid before policies take effect and the contractor may only claim to the extent of loss. An insurance firm may either be organized as a stock company or as a mutual company. In stock companies, ownership is vested in the stockholders. In mutual companies, policy holders constitute the members of the insurance company or association.

52. 52 Contract requirements A standard contract normally requires the contractor to provide certain convergences such as followings: : workmen's compensation insurance, : contractor's public liability and property damage insurance, : contingent liability insurance. Property insurance and owner's liability insurance may be made the responsibility of owners or contractors. Special insurances may also be required depending on the perceived risks of the project.

53. 53 Legal requirements Workmen's compensation, mortor vehicle, unemployment and social security insurance and others may be required by the law. As such, the contractor has to provide these insurances whether or not they are included in the contract. The main contractor has a contingent liability for the action of sub-contractors.

54. 54 Analysis of insurance risks It is not economical for the contractor to carry all insurances available, otherwise, too much premiums will be paid. For insurable risks, the cost of premiums must be balanced against the "likely" loss. Careful planning and sticking to the rules in construction may minimize the need for insurance. Calculated risks may be taken rather than providing insurance, for examples, working near existing/old structures, piling, water damage, etc.

55. 55 Factors to be considered In arriving at a decision to what to insure and what costs to pay, following factors have to be considered. 1) The obligation under the contract for loss or damage to the work and injury or damage to third parties. 2) The probabilities of loss inherent in the type of project. 3) The geographical location of the project. 4) Exposure to specific perils such as earthquake, flood, etc. 5) Whether major parts of the work are to be done by sub-contrcators. 6) The comparative cost of a full insurance program versus self-insurance and.or deductible forms of insurance.

56. 56 Check list for construction insurance 1. Property insurance on project 1.1 All risk, builder's risk insurance 1.2 Builder's risk for fire 1.2.1 Extended coverage endorsement 1.2.2 Vandalism or malicious mischief endorsement 1.2.3 Water damage endorsement 1.2.4 Sprinkler leakage endorsement 1?3 Earthquake insurance 1.4 Bridge insurance 1.5 Steam boiler and machinery insurance 1.6 Installation floater policy

57. 57 2. Property insurance on contractor's own property 2.1 Fire insurance on contractor's own building 2.2 Contractor's equipment insurance 2.3 Motor truck cargo policy 2.4 Transportation floater 2.5 Burglary robbery and theft insurance 2.6 Fidelity bond 2.7 Dishonesty, destruction and disappearance policy 2.8 Valuable papers destruction insurance 3. Liability insurance 3.1 Employer's liability insurance 3.2 Contractor's public liability and property damage insurance 3.3 Contractor's protective public and property damage liability insurance 3.4 Contractual liability insurance 3.5 Owner's protective liability insurance 3.6 Completed operations liability insurance

58. 58 4. Employee insurance 4.1 Workmen's compensation insurance 4.2 Old-age, survivors and disability insurance 4.3 Unemployment insurance 4.4 Disability insurance 5. Motor vehicle insurance Various types are available both to protect own vehicles and vehicles used on behalf of the contractor. 6. Business accident and life insurance 6.1 Business interuption insurance 6.2 Sole propietorship insurance 6.3 Accident insurance on partners or keymen 6.4 Life insurance on partners or keymen 6.5 Group life insurance 6.6 Group hospitalisation insurance

59. 59 Project property insurance It is depended on the contractors to protect the project from loss or damage and to see that suitable insurance cover is provided. The construction contract may specify what covers are mandatory. The contractor may take additional steps to protect himself/herself as the job is his/her responsibility except where "acts of devil (natural disasters)" are involved. All risks builder's insurance This type is commonly used for building projects and covers the project and temporary structures. Materials already bought irrespective of their locations and equipment on site except if under another cover, are covered by this insurance.

60. 60 Builder's risk fire insurance The basic form protects against direct loss due to fire and lightning. It usually covers only the items stated in it or all materials adjacent to the structure and supplies incidental to the construction. The policy may cease if the structure is occupied or abandoned for more than 60 days. Endorsement to the basic coverage are usually purchased to extend the cover to other items such as wind, earthquake, etc.

61. 61 Builder's risk premium 1. Reporting form Reporting form requires the contractor to report progress of work and materials in store monthly to enable the insurable value to be determined, The premium is paid in monthly installment. 2. Completed value form Completed value form is paid lump-sum in advance and covers the value of the completed structure. The premium is fifty (50) percent of maximum fee as the work is assumed to have zero (0) value at the begining progressing linearly.

62. 62 Contractor's equipment floater This protects from loss or damage to construction equipment, but does not include liability coverage. It can cover all equipment for which the contractor is legally responsible. Large equipment must be listed with all details while small items are given blanket cover. The equipment is usually insured against the depreciated or value. The cover can be made flexible as the contractor desires.

63. 63 Fidelity bonds A fidelity bond is a contract under which any loss sustained by an employer because of the dishonestly of the employee covered by the contract are made good by the surety. There are three (3) types of fidelity bonds. 1) Name bond, 2) Position bond, 3) Blanket bond. Statutes of limitations Many countries and states have statutes that protect the contractor from indefinite liability for failure of constructed facilities. Such limitations vary from four (4) years to twenty (20) years depending on local laws. Insurance claim It is important that all compensable claims be brought to the attention of the insurers at the shortest possible time. To this end, the contractor needs to designate someone for the purpose of renewals of policies, reporting, filing, cancellations, etc.

64. 64 ???????????????????????????(Project Planning)

65. 65 ??????????????????????(Human Management)

66. 66 ????????????????????????(Safety Management)

67. 67 ????????????????? (Information Technology)

68. 68 ???????????????? (Project Control)

69. 69 ?????????????????????????????(Claims and Disputes)

70. 70 ?????????????????????????????????????????????????????? (Other Related Topics)

71. 71 ???????????????????? (Class Presentations)