Presentation On Dispute Avoidance in Construction

 

LECTURES UPTO UPTO 5 FEB 2016

 

DISPUTE AVOIDANCE AND RESOLUTION IN CONSTRUCTION

THE OBJECTIVE OF THIS COURSE IS TO ENABLE

STUDENTS TO BE INVOLVED IN THE PROCESS OF CONFLICT AVOIDANCE, VOIDANCE, MANAGEMENT MA NAGEMENT AND DISPUTE RESOLUTION IN CONSTRUCTION PROJECTS.

 

LEARNING OUTCOMES BY THE END OF THISAND COURSE, STUDENTS WILL BE ABLE TO DISPLAY THE FOLLOWING SKILLS APTITUDES IN CONSTRUCTION: •

•

•

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UNDERSTAND THE UNDERLYING CAUSES OF MOST CONFLICTS AND DISPUTES AND DEMONSTRATE KNOWLEDGE AND UNDERSTANDING THE TECHNIQUES USED TO AVOID CONFLICTS AND MANAGE THEM. APPLY THE BASIC PRINCIPLES OF DISPUTE RESOLUTION EXPEDITIOUSLY. BE INVOLVED IN RANGE OF DISPUTE RESOLUTION TECHNIQUES INCLUDING ADJUDICATION AND ARBITRATION PROCEEDINGS. DISPLAY KNOWLEDGE ABOUT CONFLICT MANAGEMENT AND DISPUTE DISPLAY RESOLUTION PROCEDURES INCLUDING NEGOTIATION, MEDIATION AND CONCILIATION, ADJUDICATION, ARBITRATION AND LITIGA LI TIGATION. TION.

 

DISCUSS THE T HE IMPORTANCE IMPORTANCE OF DISPUTE DIS PUTE AVOIDANCE AVOIDANCE AND RESOLUTION IN CONSTRUCTION

•

KEY TO GOOD CONTRACT ADMINISTRATION AND ACHIEVING ECONOMY IN IS IN AVOIDING CONSTRUCTION CONFLICTS AND WASTAGE.

•

PROFESSIONAL PROJECT MANAGERS AND CONSTRUCTIONIN ECONOMISTS TO BE AS PROFICIENT AVOIDINGNEED CONFLICTS FAR AS POSSIBLE AND IN RESOLUTION TECHNIQUES

 

DISCUSS THE T HE IMPORTANCE IMPORTANCE OF DISPUTE DIS PUTE AVOIDANCE AVOIDANCE AND RESOLUTION IN CONSTRUCTION •

•

BEGINS BEFORE GROUND BREAKING A TECHNIQUE THAT HELPSPROBLEMS YOU RESOLVE THE INEVITABLE THAT ARISE DURING CONSTRUCTION?

 

DISCUSS THE IMPORTANCE OF DISPUTE AVOIDANCE AND RESOLUTION IN CONSTRUCTION •

NECESSARY OFOF THE RESPONSIBLE PRACTICECONSEQUENCE OF THE BUSINESS CONSULTING ENGINEERING. •

OCCURS WHEN THE CONSULTING ENGINEER

ACCEPTS AND ADDRESSE AD DRESSES S PROFESS PROFESSIONAL IONAL RESPONSIBILITY, NOT DISCLAIMS OR LIMITS POTENTIAL LIABILITY LIABILI TY.. •

SHOULD SHOU LD BE PR PRACT ACTICED ICED FR FROM OM BUSINESS AND PERSONNEL DEVELOPMENT THROUGH CONTRACT PREPARA PREP ARATION, TION, QUALITY CONTROL AND PERFORMANCE.

 

DISCUSS THE IMPORTANCE OF DISPUTE AVOIDANCE AND RESOLUTION IN CONSTRUCTION

•

EXTRA SPECIAL CONTRACT LANGUAGE DIS DISCLAIM CLAIMERS ERS STRATEGIC STRATEGICALL ALLY Y LOCATED LOCATED IN DESIGNER/CONSULTANT’S PROFESSIONAL SERVICES AGREEMENTS DO NOT HELP IN AVOIDING DISPUTES.

 

EXPLAIN THECONCEPT OF DISPUTE AVOIDANCE PRACTICED FROM: BUSINESS DEVELOPMENT & PROCUREMENT •

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PERSONNEL DEVELOPMENT

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TENDER PREPARATION

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CONTRACT PREPARATION

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QUALITY CONTROL AND PERFORMANCE

 

1. 1.

BUSINESS DEVELOPMENT-THEORY

MARKETING MA MANAGER-BASIC TOOLS-BROCHURES

PRESENTATIONS AND FIRM REPUTATION SEEKS TO BRING IN NEW BUSINESS-TO OFFSET LOSS OF BUSINESSDISSATISFIED EXISTING CLIENTS WHO ELECT TO HIRE A COMPETING ENGINEERING FIRM.

 

BUSINESS DEVELOPMENT-THEORY 2. OVERA OVERALL LL PURP PURPOSE OSE OF OF BUSIN BUSINESS ESS DEVE DEVELO LOPME PMENTNT-TO TO MINIMIZE

ANY LOSS OF EXISTING CLIENT BASE AND TO ACHIEVE THE DESIRED WORKLOAD BY A BLEND OF REPEAT CLIENT WORK AND NEW CLIENT WORK IN ACCORDANCE WITH A CAREFULLY CAREFULLY THOUGHT OUT

BUSINESS PLAN. 3. WHA WHAT T IS ST STA ATED IN THE THEOR ORY Y RAREL RARELY Y WORK WORKS S IN IN PRACTICE.

 

BUSINESS DEVELOPMENT-IN PRACTICE •

BD FACES GROWING PRESSURE-MEET AMBITIOUS

BUSINESS PLAN GOALS IN HIGHLY HIGHLY COMPETITIVE CONSULT ENGINEERS & LESS CLI CLIENTS). ENTS). MARKETPLACE (MORE CONSULT •

TOUGH ECONOMIC CONDITIONS? TO MAINTAIN

WORKLOAD, BD PROMISES POTENTIAL CLIENT BASE MORE THAN THE FIRM IS CAPABLE OF DELIVERING (PERFECT DESIGN??) & CLIENT BUYS IT!!

 

BUSINESS DEVELOPMENT-IN DEVELOPMENT-IN PRACTICFE PRACTICFE •

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AMBIGUOUS REQUIREMENTS OR UNREALIS UNREALISTIC TIC LIMITA LIMIT ATIONS.. TIONS..RFP RFP PUTS A CAP ON PROPOSED & CALLS FOR PRICE BID!! PRICE ENGINEERING ENGINEERIN G CONSULT CONSULTANCY IS NOT A

COMMODITY BUT A “SERVICE” •

COMPARABLE WITH “MEDICAL” AND “LEGAL”…THEREFORE CANNOT BE LOWEST BID. SEEDS OF DISPUTES…

 

BUSINESS DEVELOPMENT-IN DEVELOPMENT-IN PRACTICE PRACTICE UNREALISTIC EXPECTATIONS PRESENTATIONS AND BROCHURES SELL A DREAM: SERVICES ARE •

BETTER, TIMELY AND MORE COST EFFECTIVE. •

•

CLIENT EXPECTS A SUPERHUMAN

ENGINEERING EFFORT, WHICH NO ENGINEERING FIRM CAN DELIVER A AT T WHAT COST?!! LAW MAY MAY UPHOL UPHOLD D THE CLIENT CLIENT’S ’S EX EXPECT PECTA ATIONS, WHILE CONSULTING CONSULTING FIRM FIR M

MEETS ONL ONLY Y “PRUDENT AND REASONABLE” ENGINEERING

STANDARD. •

SEEDS ARE SOWN OF A DISPUTE…

 

BUSINESS DEVP-WHAT MEASURES TO AVOID DISPUTES? •

•

•

•

MARKETING MANAGER MUST BE IN

TOUCH WITH REALITYKNOWING CAPABILITIES AND LIMITATIONS. MUST BE FAMILIAR WITH THE PRACTICE-HAVING PRACTICED ONESELF-TO KNOW HOW MUCH SERVICES COST AND HOW LONG IT TAKES.

REALISTIC BUSINESS PLAN-TO AVOID MAKING OVERLY AMBITIOUS PROMISES TO CLIENTS THAT CANNOT BE HELD. -NOT EVERYTHING IN BROCHURES – NO BROCHURES WHAT WHA TMISLEADING CANN CANNOT OT BE AFF AFFIRMED IRMED IN COURT COURT.. ..

GIVE A PASS TO PROJECTS WITH WIT H CLIENTS HAVING UNREALISTIC EXPECTATIONS AT COSTS BASED ON BIDDING….

 

•

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BUSINESS DEVP-WHAT MEASURES TO AVOID DISPUTES? CLIENT EDUCATION-ACCUTRATE MARKETING OF REAL CAPABILITIES OF PROFESSIONAL ENGINEERING SERVICES VIS A VIS HOW MUCH CHEAPER AND BETTER BY COMPETITION. COMPETITION. IF FORCED TO SUBMIT “PRICED” PROPOSAL, DO IT AS AN

TO PERFORM A TYPE OF SERVICEESTIMATE OF COST NOT LUMP SUM ON AN AMBIGUOUS SCOPE ( Eg.

THE SCOPE OF SERVICE SHALL INCLUDE, “BUT NOT LIMITED TO” ….) •

DEFINE WHAT WILL BE PERFORMED FOR PRICE OFFERED. OR GIVE A DETAILED COUNTER OFFER.

 

BUSINESS DEVP-WHAT MEASURES TO AVOID DISPUTES? •

STATEMENT OF QUALIFICATIONS…WHAT IS PROPOSED

PROVIDED! •

SHOULD BE

PRESENTATION-A PRESENTA TION-ATTEND TTEND WITH TECHNICAL REPRESENTATIVES REPRESENTATIVES WHO WILL ACTUALL ACTUALLY Y BE WORKING ON THE PROJECT. INTEND TO

PROVIDE WHAT CLIENT EXPECTS.

•

SELECTION &NEGOTIATION-IF PRICE PROPOSAL IS SUBMITTED FOR A FIXED SCOPE-NOTHING TO ADD. IF PRICED PROPOSAL NOT

PROVIDED-NEGOTIATIONS CAN CLARIFY FOR CLIENT PROJECT SCOPE & EST A REASONABLE FEE. IF

OTHERWISE TURN DOWN.

 

2.

PERSONNEL DEVELOPMENT

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CONSULTING ENGINEERS SELL TIME

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QUALITY OF THAT THAT TIME IS DIR DIRECTL ECTLY Y DEPENDENT DEPENDE NT ON T THE HE

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TALENT OF A FIRM'S PERSONNEL. MOST IMPORTANT INVESTMENT A FIRM CAN MAKE IS IN ITS PERSONNEL.

 

IN REALITY •

MANY FIRMS MAKE MORE INVESTMENT IN TANGIBLE INVESTMENTS:

 

MARKETING COMPUTER ASSISTED DESIGN CAPABILITIES OR



OFFICE FACILITIES.

 

PERSONNEL DEVP-EFFECTIVE DISPUTE •

•

•

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AVOIDANCE TECHNIQUE TALENTED ENGINEERING STAFF HIGH QUALITY PLANNING REASONABLE DESIGN AND CONSTRUCTION ADMINISTRATION SERVICES

 

FORMAL PERSONNEL DEVELOPMENT PROGRAM •

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SOME FIRMS HAVE NO FORMAL PERSONNEL DEVELOPMENT PROGRAM. RELIANCE SOLELY ON THE INITIATIVE OF ITS STAFF TO MAKE THE SA SATISF TISFACTORY ACTORY DEGREE OF EFFORT ON: O N:

 

EACH PROJECT ASSIGNMENT

KEEP UP-TO-DA UP -TO-DATE TE ON ADV ADVANCING ANCING TECHNOLOGY AND QUALIFY FOR THE APPROPRIATE CREDENTIALS.

 

FORMAL PERSONNEL DEVELOPMENT PROGRAM

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FEW FIRMS HAVE AN ACTIVELY ENFORCED FORMALIZED PROGRAM PROGR AM THA THAT: T:



SUPPORTS ADVANCED TRAINING CAREFULLY OVERSEES PERFORMANCE OF EACH ASSIGNMENT AND RECORDS

EACH ENGINEERS' EFFORTS WITH AN EYE TOWARDS ADVANCEMENT WITHIN THE ORGANIZATION.

 

FORMAL PERSONNEL DEVELOPMENT PROGRAM •

•

THOSE FIRMS HA HAVE VE A FORMALIZED PROGRAM, MORE OFTEN HAPHAZARDLY HAPHAZARDLY FOLLOWED, IIF F AT AT ALL. ALL . IT IS TO THIS MAJORITY THAT LAWYERS CAN MOST EASILY FIND FAULT AULT WHEN PURSUING A DISPUTE.

 

ADHERENCE TO INTERNAL PERSONNEL POLICIES IF POLICIES REQUIRE: •

REGISTERED PROFESSIONAL ENGINEERS.. DO NOT PROVIDE OTHERS.

•

•

CONTINUING ANNUAL EDUCATION EDUCATION..MAKE SURE PERIODIC REVIEW OF CORRECT DEFICIENCIES

WORK QUALITY….AND

IF NOT ADHERED TO: CLIENT CAN TAKE LEGAL RECOURSE…

 

WHAT WHA T ARE ARE THE TECHNIQUES-IMPROVING QUALITY DISPUTE AVOIDANCE QUALITY CONTROL IN ITS BROADEST SENSEPROGRAMS THAT LOOK AT HOW A DESIGN IS DELIVERED INSTEAD OF CHECKING THE DESIGNED

•

PROJECT: EG.. IMPROVE THE PERFORMANCE OF SERVICE SERVICES S AS WELL AS THE CHECKING OF RESULTS. VALUE

ENGINEERING  PEER REVIEW AND



TOT TO TAL QUALIT QUALITY Y MANAGEMENT

 

QUALITY CONTROL •

BREACH OF INTERNAL QUALITY CONTROL POLICIES CAN BE MORE DAMAGING THAN BREACH OF INTERNAL PERSONNEL POLICIES.

•

WITH AN EFFECTIVE QUALITY CONTROL PROGRAM, PROGRAM, DISPUTES CAN BE AVOIDED AVOIDED BECAUSE MISTAKES

ARE CAUGHT BEFORE ANY DAMAGE IS DONE.

 

WHY IT HAPPENS? •

DUE-TIME OR BUDGETARY RESTRICTIONS, MANY PROJECTS DO NOT RECEIVE:  QUALITY CONTROL CHECKS,  INTERDISCIPLINARY COORDINATION CHECKS, OR "BUILDABILITY" EVALUATIONS NECESSARY TO CATCH THE INEVITABLE DESIGN ERRORS.



 

HOW VALUE VALUE ENGINEERING HELPS HELPS IN I N AVOIDING DISPUTES? •

VALUE ENGINEERING LOOKS AT ALTERNATIVE

WAYS TO

MEET A PROJECT'S REQUIREMENTS IN A MORE EFFICIENT AND COST-EFFE COST-EFFECTIVE CTIVE WAY.

•

VALUE ENGINEERING'S

GREATEST GREA TEST ASSE ASSET T IS ITS

AT A PROJECT OPPORTUNITY TO GIVE A FRESH LOOK IMPROVING VING QUALITY OF THE END THEREBY IMPRO PRODUCT.

 

PURPOSE OF VALUE ENGINEERING PROGRAMME •

A TYPICAL VALUE ENGINEERING PROGRAM WOULD PROVIDE EXPERT PROFESSIONALS THE

OPPORTUNITY TO "BRAINSTORM' DURING STRUCTURED SESSIONS TO IDENTIFY A SERIES OF DESIGN ALTERNATIVES THATATTENTION. MAY HAVE ESCAPED THE PROJECT TEAM'S

 

VALUE ENGINEERING-HOW? •

THESE ALTERNATIVES ARE THEN RANKED RANGING FROM:

 THE MORE

AGAINST CRITERIA

OBJECTIVE, SUCH AS CONSTRUCTION COST

OR OPERATION AND MAINTENANCE COSTS TO  THE MORE SUBJECTIVE, SUCH AS AESTHETICS OR THE •

RISK OF INNOVATION.

THE ALTERNATIVES ARE THEN RANKED OVERALL AND, WHERE APPROPRIATE, IMPLEMENTED INTO THE FINAL PROJECT DESIGN.

 

EXPLAIN PEER REVIEW HELPS IN DISPUTE AVOIDANCE? •

UNLIKE VALUE VALUE ENGINEERING (FOCUS-IMPROVING (FOCUS-IMPROVING AN ENGINEERED DESIGN), PEER

REVIEW EVALUATES THE

MANAGEMENT & OPERATION OF THE ENGINEERING FIRM. •

BUSINESS OBJECTIVES, OPERATING POLICIES, HUMAN RESOURCES, FINANCIAL MANAGEMENT, MANAGEMENT, AND BUSINESS DEVELOPMENT ARE EACH ASSESSED IN A PEER REVIEW PROGRAM.

 

EXPLAIN PEER REVIEW HELPS IN DISPUTE AVOIDANCE? •

A CRITICAL ASSESSMENT IS MADE ON HOW

MANAGEMENT IS STRUCTURED AND , AS WELL AS HOW PROJECT TEAMS PERFORM OPERATED AND QUALITY IS CONTROLLED. •

TYPICALLY, A PEER REVIEW PROGRAM INVOLVES MANAGEMENT FROM OTHER NON-COMPETING ENGINEERING FIRMS OF NEAR EQUAL SIZE THAT ASSESSES THE FIRM'S PRACTICES.

 

PEER REVIEW-RECOMMENDATIONS •

•

THE PEER REVIEW TEAM THEN PROVIDES RECOMMENDATIONS AS TO IMPROVING PRACTICE. PRACTICE. HENCE IF PEER PE ER REVIEW PRACTICES ARE EMPLOYED, EMPLOYED, ONE SHOULD BERECOMMENDATIONS/JUSTIFY FULLY PREPARED TO /JUSTIFY IMPLEMENT THE RESULTING RECOMMENDATIONS NON IMPLEMENTATION.

 

•

DISCUSS TOTAL QUALITY MANAGEMENT IN DISPUTE AVOIDANCE “TQM EMPHASIZES THE PROCESS OF PRODUCING QUALITY DESIGN AND

FOCUSING ON THE IMPORTANCE OF THE EMP EMPLO LOYEES YEES PARTI ARTICIP CIPA ATIO TION N IN THIS PROCESS. HENCE, SERVICES WHILE

SYSTEM  TEM  IMPROVING THE SYS THAT AT TQM LOOKS PROVIDES THE ENGINEERING SERVICES VERSUS CHECKING THE ENGINEERING SERVICES THEMSELVES THEMSELVES” --RICHARD K ALLEN TQM FOCUSES ON:  CUSTOMER/SUPPLIER RELATIONSHIP RELATIONSHIP PROCESS/RESULTS  FEEDNACK •

 

FOCUS OF TQM-CUSTOMER/SUPPLIER •

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BY INTEGRATION-CUSTOMERS NOT ONLY CLIENTS BUT EMPLOYEES AS THEY PROVIDE SERVICES TO EACH OTHER. BY MEETING CUSTOMERS’ NEEDS AT ALL

EMPLOYEES LEVELS-OVERALL QUALITY SHOULD IMPROVE.

 

FOCUS OF TQM-PROCESS/RESUL TQM-PROCESS/RESULTS TS •

MOST QUALITY

CONTROL PROGRAMS FOCUS ON

CHECKING QUALITY OF RESULTING SERVICE OR PRODUCT. •

BY WHICH TQM LOOKS AT THE PROCESSES THE SERVICE IS PROVIDED OR PRODUCT PRODUCED.

•

BY IMPROVING PROCESS, -QUALITY PROBLEMS ARETHE PREVENTED A FAR FAR MO MORE RE COSTEFFECTIVE APPROACH

ERRORS.

THAN CHECKING FOR

 

FOCUS OF TQM TQM-FEEDBACK -FEEDBACK •

•

EMPLOYEES PROVIDING SERVICES HAVE ENORMOUS EMPLOYEES EXPERTISE (IF TAPPED)-GREATLY IMPROVE PROCESS OF PROVIDING SERVICES. TQM ENCOURAGES EMPLOYEES TO SHARE THIS AT EXPERTISE AND TO CORRECT PROBLEMS ALL VARIOUS LEVELS OF THE ORGANIZATION. ORGANIZATION.

 

TQM-DISTINCT FROM RESULT ORIENTED STYLE •

TQM-A MANAGEMENT PHILOSOPHY CAN GREATLY IMPROVE QUALITY OF ENGINEERING SERVICES TO THE CLIENT IN A COST-COMPETITIVE AND EFFICIENT

•

MANNER AND AVOID DISPUTES. ON THE FAILURE TO FOLLOW THROUGH ON USUALL UALLY Y MORE TECHNIQUES (????) HOWEVER, US

PROBLEMATIC THAN IF THE TECHNIQUES HAD NEVER BEEN IMPLEMENTED IN THE FIRST PLACE.

 

PROFESSIONAL SERVICES AGREEMENT AGREEMENT/CONTRACT /CONTRACT •

•

TRADITIONAL HANDSHAKE AGREEMENTS….? AGREEMENTS….? FEAR OF QUESTIONING INTEGRITY OF LONG TERM CLIENTS CLIENTS.. EASIER TO DEAL WITH…..

FAILURE TO LIMIT

AUTHORITY OF EMPLOEES TO AUTHORITY ENTER INTO OR CHANGE PRE EXISTING AGREEMENTS…

 

PITFALLS •

PROJECT ENGINEER/RESIDENT ENGINEERING WORKING RELATIONSHIP AGREE TO PERFORM SERVICES W/O FORMAL

REVISION OF ORIGINAL SCOPE.. •

COULD LEAVE THE ENGINEERING

FIRM LIABLE FOR

SERIOUS RISKS NOT CONTEMPLATED DURING THE INITIAL AGREEMENT AND WELL BEYOND THE RISKS NORMALLY NORMALL Y ASSOCIA ASS OCIATED TED WITH WITH THE THE WORK

 

CONTRACT OF PROFESSIONA PROFESSIONALL SERVICES SERVICES SINGLE MOST IMPORTANT DOCUMENT FOR AVOIDING DISPUTES-INCLUDES BASIC ELEMENTS OF SERVICES TO BE PROVIDED/PERFORMED: •

A CLEAR AND PRECISE DESCRIPTION

•

TIME FRAME WITHIN WHICH….AND

•

AYMENT COST OF THE SERVICES INCLUDING (METHOD OF PPA AND THE TIMING OF PA PAYMENTS). YMENTS).

 

HOW STANDARD FORMS HELP? •

STANDARD FORMS ARE FINE BUT MUST BE APPROPRIATE TO THE PROJECT AND CUSTOMISED AFTER DUE CONSUL CONS ULT TATION WITH A LAWYER. LA WYER. ADDITIONAL ELEMENTS..:



PROVISION DEFINING ADDITIONAL SERVICES ENTITLING ENGINEER TO ADDITION ADDITIONAL AL COMPENSATION COMPENSATION



•

A MERGER CLAUSE THAT EFFECTIVELY STATES THAT ALL PRIOR WRITTEN OR ORAL UNDERSTANDINGS UNDERSTANDINGS ARE SUPERSEDED BY THE AGREEMENT. AN OWNERSHIP OF DOCUMENTS CLAUSE THAT RETAINS THE ENGINEERS' OWNERSHIP OF ITS WORK PRODUCT TO AVOID A CLIENT'S LATER REUSE (AND POSSIBLY MISUSE) OF WORK PRODUCT

 

ILLUSTRATION-1 HOW DISPUTES CAN BE AVOIDAED? •

•

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DO NOT, NOT, HOWEVER, RELY RELY ON SUCH PROVISIONS OFFERING OFFERI NG PROTECTION TECTION FROM DISPUTES UNLIMITED PRO DO NOT AGREE TO PROVISIONS T THA HAT T "GUARANTEE" YOUR WORK OR SET THE QUALITY ABOVE THAT WHICH YOU ARE REQUIRED TO MEET MEET.. DO NOT AGREE TO BE HELD RESPONSIBLE FOR YOUR CLIENT'S OR ANY OTHER PARTY'S FAILING….. EG?

 

ILLUSTRATION-2-HOW ILLUSTRA TION-2-HOW DISPUTES DISPUTES CAN BE AVOIDAED? •

“THE ENGINEER SHALL GUARANTEE THE PLANS AND SPECIFICATIONS TO BE FREE OF ERROR ERRORS S AND OMISSIONS OMI SSIONS AND, IN THE EVENT AN ERROR OR OMISSION IS DISCOVERED, DISCOVERED, SHALL CORRECT THE SAME AND BEAR CONSEQUENTIAL COSTS, OR

•

“THE ENGINEER SHALL PERFORM PROFESSIONAL SERVICES SERVICES IN ACCORDANCE WITH THE HIGHEST PROFESSIONAL STANDARDS AND

BEAR ALL COSTS AND LOSSES IN THE EVENT OF FAILURE TO DO SO, OR

•

“THE ENGINEER SHALL INDEMNIFY AND HOLD HARMLESS THE OWNER FROM ALL LIABILITY THAT THAT ARISES FROM THE ACTS OR OMISSIONS OF THE ENGINEER AND OWNER DURING THE COURSE OF THE PROJECT.

 

RECAP CONCEPT OF DISPUTE AVOIDANCE PRACTICED FROM: BUSINESS DEVELOPMENT & PROCUREMENT •

•

•

PERSONNEL DEVELOPMENT TENDER PREPARATION

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CONTRACT PREPARATION

• •

QUALITY CONTROL AND PERFORMANCE

 

APC-CONFLICT AVOIDANCE PROCESSES DISPUTE RESOLUTION TECHNIQUES

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GENERAL PRINCIPLES (LEVEL 1: KNOWING)

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PRACTICAL APPLICATION (LEVEL 2: DOING)

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PRACTICAL CONSIDERATIONS (LEVEL 3: DOING/ADVISING)

 

TEN GENERAL PRINCILPES-LEVEL 1 CONFLICT AVOIDANCE AVOIDANCE PROCESSES: •

GOOD DESIGN TEAM MANAGEMENT

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CLEAR CONTRACT DOCUMENTATION

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PARTNERING AND ALLIANCING

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GOOD PROJECT MANAGEMENT GOOD CLIENT MANAGEMENT

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GOOD CONTRACT CONTRACTOR OR MANAG MANAGEMENT EMENT

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GOOD PAYMENT PRACTICE RECORD KEEPING

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REGULAR REPORTING & MONITORING

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GOOD MANAGEMENT

 

1. GOOD MANAGEMENT

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PLANNING FUTURE WORK

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PROACTIVITY IN MANAGING FUTURE WORK

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PROBLEMS TO BE ANALYSED AND MANAGED PROVIDE CONFIDENCE IN QUANTITY SURVEYOR’S ABILITY

 

2. CLEAR CONTRACT DOCUMENT DOCUMENTA ATION •

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CONT RACT DOC DOCUMENT UMENTA ATION, OR AMBIGUITIES IN CONTRACT

(?) EXPLOIT AMBIGUITIES. REAL CAUSE OF DISPUTE TO RECOUP FINANCIAL POSITION?

•

•

VOLUMES OF GENERAL GE NERAL SPECIFICA SPECIFICATIONS TIONS NOT ADEQUA ADEQUATE TE KEY-IDENTIFICATION OF MAIN AREAS OF RISK & SET OUT STRATEGY FOR DEALING WITH THEM.

 

3. GOOD PROJE P ROJECT CT MANAGEMENT NOT SIMPL SIM PLY Y ALLOCA AL LOCATING TING RESPONSIBILIT RESPONSIBILITY Y OF ALL OR ANY TO OTHERS BUT•

PROACTIVELY PROACTIVEL Y MANAGING MA NAGING TIME, MONEY AND RISKS

•

ASSOCIATED WITH ASSOCIATED WI TH PROJECT IT INVOLVES OFTEN ADDRESSING SOME OF THE MOST

DIFFICULT DIFFICUL T ISSUES. ISSUES. •

APPLYING PROJECT MANAGEM APPLYING MANAGEMENT ENT TECHNIQUES TO PLANNING AND MANAGING TO THESE

 

4. GOOD CLIENT MANAGEMENT •

•

OBJECTIVES S & CLIENT’S UNDERSTANDING CLIENT’S OBJECTIVE APPROACH TO RISK

MAINTAINING GOOD LINES OF COMMUNICATION COMMUNICATION WITH CLIENT-HELPS IN IDENTIFYING HOW RISKS AND ISSUES BE DEAL DEALT T WITH. BUILD RAPPORT.

•

WARN CLIENT ABOUT PROBLEMS TO AVOID

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MISLEADING CLIENT “ALL IS WELL”. NOT JUST POSE PROBLEMS. DISCUSS HOW ISSUES

MIGHT BE DEALT WITH. WITH.  

5. GOOD GOOD C CONTRA ONTRACT CTOR OR MANAGEME MANAGEMENT NT •

•

HAVING HA VING AN OBJECTIVE

UNDERSTANDING OF THE UNDERSTANDING PROJECT, THE CONTRACT AND THE PROGRAMME OF WORKS. REQUIRES REGULAR

OBJECTIVE ASSESSMENTS OF

•

PROGRESS PROACTIVELY DEALING WITH CONTRACTUAL ISSUES ROJECT.. LIKELY TO ARISE DURING THE PPROJECT

•

PROBLEMS AND DELAY NEED TO BE DEALT WITH IN A

TIMEL TIMELY Y, A POSITIVE AND OBJECTIVE MANNER. MANNER.

 

6. PARTNERING AND ALLIANCING •

BUILDING CO-OPERATION BETWEEN THE PROJECT PARTICIPANTS ARTICIPANTS IN ORDER TO FOSTER TEAM WORKING

•

PROBLEM SOL SOLVING VING AND

•

AN EMPHASIS ON PROJECT THE AVOIDANCE AVOIDANCE OF DISPUTES

DELIVERY CAN ASSIST IN

 

7. GOOD DESIGN TEAM MANAGEMENT •

PROVISION OF INFORMATION WITHIN THE DESIGN TEAM AND

DESIGN TEAM TO THE CONTRACTOR CRUCIAL. •

GOOD FORWARD FORWARD PLANNING AND THE MANAGEMENT OF CONFLICT THAT COULD ARISE AMONG THE DESIGN TEAM

 

8. GOOD PAYMENT PRACTICE PRACTICE •

DESIGN TEAM TEAM AND THE CONTRACT CONTRACTOR OR REL RELY Y UPON CASH

FLOW. •

•

ONCE PAYMENT PROVISIONS HAVE BEEN AGREED, VALUATION AND PAYMENTS MUST BE MADE PROMPTLY. THIS IN ITSELF CAN AVOID ANIMOSITY, CONFLICT AND

DISPUTE  

9. RECORD KEEPING-1 •

•

•

DISPUTES CAN BE RESOLVED-RETROSPECTIVELY RECORDS KEPT DURING COURSE OF PROCUREMENT OR CARRYING OUT OF A PROJECT KEEPING PROPER RECORD OF LABOUR, PLANT AND MATERIALS USED IN A PROJECT. OBTAINING A DAILY RECORD-THE REGULAR PROGRESS REPORTS. SITE ACTIVITIES AND

 

9. RECORD KEEPING-2 •

•

•

MINUTES OF MEETINGS, PROGRESS, REPORTS, DROP LINES ON PROGRAMMES, AND PHOTOS. INCLUDE A RECORD OF RESOURCE MOVEMENT-WHEN MOVEMENT-WHEN

CHANGE OCCURS RECORD OF HOW CHANGE HAS IMPACTED UPON THE PROJECT SHOULD BE MADE CONTEMPORANEOUSLY .

 

10. REGULAR REPORTING AND PROACTIVITY •

•

•

REGULAR MONITORING OF COST, PROGRESS AND QUALITY IMPORTANT IMPORTANT FOR FO R SUC SUCCESS CESS OF ANY PROJECT. PROJECT. ANY ISSUES IMPORTANT TO RAISE AND MANAGE INCREASES IN COST OR DELAY THAT ARE CAUSING , ANY QUALITY PROBLEMS AS SOON ASAPP. ANY BE ACTIONS SHOULD BE CONCLUSION. RECORDED SO THAT THEY CAN TRACKED TOWARDS

 

TWO GENERAL PRINCIPLES: PRACTICAL APPLICATIONS APPLICATIONS LEVEL 2 (DOING)

CONFLICT AVOIDANCE PROCESSES: •

CHECKING OF CONTRACT DOCUMENTA DOCUMENTATION (A) TENDER PREPARATION STAGE

•

(B) CONTR CONTRACT ACT PREPARA PREPARATION TION S ST TAGE PARTNERING

 

CHECKING OF CONTRACT DOCUMENTATION-TENDER PREPARATION STAGE NOT ONLY SPECS AND DRAWINGS BUT SPECIAL CONSIDERATION TO: EXACT DESCRIPTION OF THE CONTRACT (ASSUMING THAT THIS IS LIKELY TO BE A STANDARD PRINTED FORM), WHICH EDITION, DOES SECTIONAL COMPLETION APPLY, DO ANY SUPPLEMENTS OR AMENDMENTS APPLY?  THE EXACT DETAILS FOR THE APPENDICES, COMPLETION DATES, INSURANCES, ETC.  FULL TEXT OF ANY PURPOSE-WRITTEN P URPOSE-WRITTEN AMENDMENTS T TO O THE CONTRACT, FULL TEXT OF ANY ANCILLARY A NCILLARY DOCUMENTS DOCUMENTS SUCH AS BONDS, GUARANTEES, COLLATERAL WARRANTIES, ETC. WHY? 

 

CHECKING OF CONTRACT DOCUMENTATION

(A) TENDER PREPARATION STAGE: •

CONTRACTOR CONTRACT OR TO CONSIDER THESE DOCUMENTS WHEN CALCULATING CALCULATING A PRICE AND DEVELOPING THE DESIGN

SOLUTION. THESE DOCUMENTS WILL NEED TO BE INCLUDED AT TENDER STAGE. •

•

IMPORTANT-TAKE CARE IN PRODUCING A COORDINATED SET OF TENDER AND CONTRACT DOCUMENTS. OPERATING UNDER A LETTER OF INTENT ONLY DELAYS DEALING WITH THE KEY ISSUES BETWEEN THE PARTIES, WHICH NEED TO BE AGREED FOR THERE TO BE A FORMAL CONTRACT CONTRACT.

 

CHECKING OF CONTRACT DOCUMENT DOCUMENTA ATION (B) CONTRACT PREPARATION STAGE COMPLETING THE FORMAL CONTRACT AND AVOIDING LETTERS OF INTENT IS A GOOD CONFLICT AVOIDANCE •

STRATEGY. SPECIAL CONSIDERA CONSIDERATIONS: TIONS:  CONTRACT PREPARED AND SIGNED ASAPP AFTER CLIENT

•

DECIDES TO APPOINT A CONTRACTOR. ANY PURPOSE-WRITTEN AMENDMENTS ARE EXPRESSLY INCORPORATED, AND ARE ATTACHED TO THE CONTRACT (INCLUDING APPENDICES).



 

CHECKING OF CONTRACT DOCUMENT DOCUMENTA ATION (B) CONTRACT PREP PREPARA ARATION TION STAGE: STAGE: FULL AND COMPLETE DESCRIPTIONS OF THE WORKS INFORMATION INFORMATION INCLUDED. 

AVOID MAKING GENERAL STATEMENTS. INSTEADQUESTIONS SET OUT A AND COMPLETE LIST OF SPECIFICATIONS, DRAWINGS, ANSWERS, ETC. THAT APPLY APPLY



APPENDICES ARE COMPLETED FULLY AND CAREFULLY

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EXACT DESCRIPTION OF THE ANCILLARY DOCUMENTS IS REFERRED TO AND COPIES ATTACHED TO CONTRACT IS SIGNED

BEFORE FORE IT IS ISSUED [KEEP A FULL COPY OF THE CONTRACT BUNDLE BE

IN CASE IT IS LOST WHILE BEING CIRCULATED FOR SIGNATURE]  

SUBMITTALS REQUIRED IN THE CONTRACT COPIES OF SUBCONTRACTS GOOD FOR CONSTRUCTION DRAWINGS SHOP DRAWINGS AND SUPPORT CALCULATIONS CATALOGUES MATERIAL MA TERIAL OR EQUIPMENT SAMPLES SCHEDULE(S) CERTIFIED PAYROLLS CERTIFICATES OF INSURANCE ENVIRONMENTAL ENVIRONMENT AL TEST REPORTS •

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MATERIAL TEST REPORTS & CERTIFICA MATERIAL CERTIF ICATIONS TIONS METHOD METHO D STA STATEMEN TEMENTS TS

 

SHOP DRAWINGS

 

MISC WORKING DRAWINGS • •

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STRUCTURAL STEEL DETAILS & ERECTION PLAN ERECTION PROCEDURES (SAFETY) PS/PC CONCRETE ITEMS SHORING & UNDERPINNING DETAILS JACKING PLANS AND CALCULA CALCULATIONS TIONS SCAFFOLDING AND FALSEWORK CONCRETE FORMWORK DESIGN AND DETAILS CONSTRUCTION SEQUENCING DIAGRAMS

 

SHOP DRAWINGS, MISC WORKING DRAWINGS •

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COFFERDAM DESIGN & DETAILS DEWATERING PROCEDURE STREAM DIVERSIONS PIPE AND DUCTWORK D UCTWORK FABRICA ABRICATION TION DET DETAILS AILS REINFORCING STEEL BENDING SCHEDULES/DIAGRAMS AND BAR LISTS STRUCTURAL TIMBER ELEMENTS ORNAMENTAL IRON OR STEEL MAINTENANCE MAINTENANC E OF TRAFFIC PLANS

(ALTERNATES)  

PAYMENTS AND RELATED ISSUES MOBILIZATION AND INITIAL COSTS RETAINAGE •

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PROGRESS PAYMENTS AND PARTIAL PAYMENTS MATERIAL PAYMENTS CHANGE ORDERS SUBSTANTIAL SUBST ANTIAL COMPLETION PUNCH-LIST

FINAL ACCEPTANCE AND PAYMENT  

CHANGES IN PLANS AND SPECS CLARIFICATION, CORRECTION, MODIFICATIONS PRIOR TO BID ARE REFERRED TO AS “ADDENDA” •

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OWNER MUST MAINT MAINTAIN AIN A SYSTEM OF DISTRIBUTING AND ACKNOWLEDGING RECEIPT OF ADDENDUM PLAN AND SPEC CHANGES AFTER

AWARD ARE REFERRED TO AS “REVISIONS”, AND GENERALLY GENERALL Y REQUIRE ISSUANCE OF A CHANGE

ORDER(S)  

CHANGE ORDERS •

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A WRITTEN ORDER ISSUED BY THE OWNER TO THE CONTRACTOR FOR A CHANGE TO THE CONTRACT WITHIN THE SCOPE OF WORK CHANGE ORDERS ARE WRITTEN FOR: EXTRA WORK INCREASING OR DECREASING THE CONTRACT QUANTITIES • •

ALTERATIONS CHANGE ORDERS STATE THE BASIS AND •

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AMOUNT OF PA PAYMENT AND TIME TIME

EXTENSIONS  

PARTNERING-IN DISPUTE AVOIDANCE •

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A GENERAL TERM-PRACTICES DESIGNED TO PROMOTE GREATER COOPERATION AMONG ALL PROJ TEAM PARTICIPANTS. EMPHASIS-ON MANAGEMENT OF PEOPLE-NOT WITHIN BUT BETWEEN BUSINESSES. NOT LIMITED TO CONTRACTUAL RELATIONSHIPS-BUT BUILDING COLLABORATIVE RELATIONSHIPS TO MIMIMISE CONFLICTS AND PROMOTE MORE OPEN SYSTEM OF COMN-TO ACHIEVE GREATER PRACTICAL BENEFIT TO THE PROJECT.

 

PARTNERING-IN DISPUTE AVOIDANCE •

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PARTICIPANTS MAY SIGN A PARTNERING CHARTER-NON BINDING BUT FACILITATING IN NATURE. OR ELSE-A BINDING CONTRACT CONTAINING PARTNERING PRINCIPLES. THE CONTRACT COULD BE TWO PARTY (MAIN CONTRACTOR AND EMPLOYER) OR MULTI PARTY..DESIGN TEAM AND KEY MEMBERS OF SUPPLY CHAIN. SUPPLY CHA IN. AT THE START A PARTNERING WORKSHOP CONDUCTED WTH KEY PARTICIPANTS-PROVIDING AN OPPORTUNITY TO KEY INIVIDUALS TO UNDERSTAND HOW PROCESSES OPERATE AND BECOME FAMILIAR

WITH EACH OTHER  

EV EVALU ALUA ATION OF NON PRIC PRICED ED FEA FEATURES TURES

 

PRINCIPLES-WEIGHTED CRITERIA ASSESSMENT PROCESS: •

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SELECTION CRITERIA THAT REFLECT THE CRITICAL ELEMENTS OF THE PROJECT AND THAT CAN BE ASSIGNED A WEIGHTAGE; WEIGHTAGE THAT REFLECT THE RELA RELATIVE TIVE IMPORTANCE OF SELECTION CRITERIA;

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SCORES ARE NORMALISING BASED ON INFORMA INFORMATION TION SUBMIT SUBMITTED TED WITH THE TENDER THAT BID; AND THE NON  –PRICE  – PRICE CRITERIA AND THE TENDER PRICE BEFORE APPLYING THE WEIGHTINGS TO ALLOW FOR THE TRUE EFFECT AND ADVANTAGE OF THE WEIGHTING SYSTEM. THE SYSTEM RECOGNISES CONTRACTORS WHO HAVE BETTER PERFORMANCE RECORDS IN TERMS OF QUALITY, TIME AND COST. COST. AGENCIES SHOULD CONSIDER WHETHER THE EXTRA COST INCURRED BY A VERY GOOD TENDER SUBMISSION IS MATCHED BY A

REDUCTION IN THE OVERALL PROJECT COSTS OR BY THE PROJECT’S RUNNING COSTS.  

SELECTION CRITERIA •

NOT LOWEST PRICE-NON PRICED EVALUATION PROCESS APPLIES WEIGHTING FOR SKILLS, QUALITY, EXPERIENCE AND PREVIOUS PERFORMANCE IN A MANNER TO ENSURE VALUE

MONEY. •

SYSTEM OF CRITERIA BASED ON COMPETENCE

FOR

OF THE

TENDERER TO UNDERTAKE A PARTICULAR PROJECT IS USED TO

RATE THE TENDERER’S BIDS. •

TO ACHIEVE THE REQUIRED PROJECT OUTCOME AND ARE USED TO RATE EACH OF THE TENDERS.

 

SELECTION CRITERIA •

RELEVANT RELEV ANT EXPERIENCE

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APPRECIATION OF THE TASK

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PAST PERFORMANCE

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MANAGEMENT AND TECHNICAL SKILLS

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RESOURCES

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MANAGEMENT SYSTEMS

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METHODOLOGY AND

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PRICE.

 

VALUE FOR MONEY •

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WHEN WEIGHTING NON –  –PRICE PRICE EVALUATION CRITERIA, AGENCIES SHALL ENSURE THAT THAT ANY DIFFERENCE IN SCORES BETWEEN A GOOD SUBMISSION AND A SATISFACTORY SUBMISSION DOES NOT OVERSHADOW A SUBSTANTIAL PRICE DIFFERENCE. AGENCIES ASSESSING SUBMISSIONS WITH A SUBSTANTIAL PRICE DIFFERENCE MUST ULTIMATELY JUSTIFY THEIR SELECTION IN TERMS OF VALUE VALUE FOR MONEY IF THE HIGHER PRICED TENDER SUBMISSION GETS THE HIGHER SCORE.

 

RELEVANT RELEV ANT EXPERIENCE EXPERIENCE •

PREVIOUS EXPERIENCE OF THE TENDERER NEEDS TO BE ASSESSED IN RELATION RELA TION TO THE FIELDS F IELDS OF EXPERTISE REQUIRED TO ACHIEVE THE INTENDED OUTCOMES OF THE PROJECT.

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RECENT EXPERIENCE IS MORE HISTORIC EXPERIENCE. THE COMP COMPANY’S ANY’SVALUABLE PREVIOUS THAN EXPERIENCE IN TECHNIC TECHNICAL AL AREAS COMPARABLE TO THE TENDERED PROJECT, THE SCALE OF PAST PROJECTS AND THE ROLE UNDERTAKEN WITHIN THOSE PROJECTS SHOULD BE CONSIDERED.

 

INFORMATION REQUIRED •

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DESCRIPTION AND RELEVANCE TO THE TENDERED PROJECT ROLE OF THE TENDERER PROJECT COST AND DURATION OF PROJECT.

 

PAST PERFORMANCE THE TENDERING ORGANISA ORGANISATION'S TION'S PERFORMANCE IN COMPLETING PAST PROJECTS NEED TO BE ASSESSED: QUALITY STANDARDS STANDARDS REQUIRED REQUIR ED •

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TIME PERFORMANCE

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WITHIN BUDGET

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CLAIMS HISTORY & VARIATIONS VARIATIONS

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PROJECT MANAGEMENT

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PRODUCT VALUE

EXTENSION TO THE CONTRACT COMPLETION DATE SATISFACTION OF PREVIOUS CLIENTS

 

INFORMATION REQUIRED •

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PROJECT NAME CLIENT’S PROJECT MANAGER (NAME AND PHONE/EMAIL ID/FAX NUMBERS)

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QUALITY STANDARDS, STANDARDS, TARGET TARGET PERFORMANCE LEVELS

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TENDER PRICE, PR ICE, VARIATIONS VARIATIONS AND FINAL COST

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COMPLETION DATE AND EXTENSIONS OF TIME GRANTED DETAILS OF OHS&R RECORDS.

 

KEY PERSONN PERSONNEL EL THE COMPETENCE OF KEY MANAGEMENT, PROFESSIONAL AND TECHNICAL PERSONNEL THAT THE TENDERER PROPOSES TO EMPLOY ON THE PROJECT NEEDS TO BE ASSESSED WITH PARTICULAR EMPHASIS ON THE SKILLS AND EXPERIENCE IN TECHNICAL AREAS COMPARABLE TO THE PROJECT. •

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NAMES

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FUNCTION TECHNICAL EXPERTISE

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CVS TO BE PROVIDED.

 

MANAGEMENT SKILLS

SYSTEMS

THE AVAILABILITY WITHIN THE TENDERER’S ORGANISATION OF PERSONNEL WITH APPROPRIA APPROPRIATE TE MANAGEMENT SKILLS TOGETHER WITH EFFECTIVE MANAGEMENT SYSTEMS AND METHODS APPROPRIATE TO THE SUCCESSFUL MANAGEMENT OF THE PROJECT. THE INFORMATION REQUIRED: •

QUALITY SYSTEM

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PROJECT MANAGEMENT TOOLS;

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PROGRAM SOFTWARE;

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ENVIRONMENTAL MANAGEMENT SYSTEM; AND

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OHS&R MANAGEMENT SYSTEM.

 

RESOURCES THE EQUIPMENT, INCLUDING FACILITIES AND INTELLECTUAL PROPERTY, WHICH THE TENDERER PROPOSES TO USE ON THE PROJECT NEED TO BE ASSESSED. THE INFORMATION REQUIRED: SPECIALIST EQUIPMENT •

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LABOUR, BY TRADE SKILLS FACILITIES.

 

METHODOLOGY •

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THE PROCEDURES PROCED URES OR INNOV INNOVA ATIVE METHODS METHODS THE TENDERER PROPOSES TO USE TO ACHIEVE THE SPECIFIED END RESULTS, OR THE SPECIAL PROCESSES DETAILED IN TENDER DOCUMENTS. TENDERER SHOULD BE ABLE TO DEMONSTRATE ITS CAPABILITY CONCLUSION TO BRING THEBY CONTRACT TO A SATISFACTORY DESCRIBING THE METHODOLOGY OF APPROACH TO

ACCOMPLISH THE PROJECT’S REQUIRED OUTCOMES.  

INFORMATION REQUIRED •

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PROGRAM OF WORKS KEY PERFORMANCE PERFORMANCE INDIC INDICA ATORS DIVISION OF WORKS INTO SUBCONTRACTS INNOVATIVE PROCEDURES TO BE USED REPORTING AND RECORDING SYSTEMS QUALITY & SAFETY PLAN.

 

PRICE THE PRICE IS THE SUM THAT THE AGENCY WOULD BE REQUIRED TO PAY TO THE SUCCESSFUL TENDERER FOR THE WORK OR SERVICE PROVIDED. MUST INCLUDE ALL COSTS OVER THE DURATION OF THE CONTRACT.. DEPEND CONTRACT DEPENDING ING ON THE CONTRACT, CONTRACT, THIS COULD INCLUDE: FIXED CAPIT CAPITAL AL COST •

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VARIABLE TENDER COSTS DURING THE CONTRACT PERIOD SPECIAL ADJUSTMENTS ADJUSTMENTS DURING THE CONTRA CONTRACT CT PERIOD MAINTENANCE COSTS

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OPERATING OPERA TING COSTS.

 

References: •

Guidelines on Tender Evaluation using Weighted Criteria for Building Works and Services. © Government of Tasmania. ISBN 978-0-72465318-8 (Word) 978-0-7246-5319-5 (PDF)