Friday, 2 August 2013
PHOTOS: Check Out Actress, Chika Ike On Her New York Vacation
SHE IS DEFINITELY A PRETTY RESILIENCE CHICK,SHE IS COOL INSIDE OUT AND RICH!
Marriage Proposal: Beverly ask Angelo if he can marry a girl like her VS
2 nights ago while the Nigerian Beverly and South African Angelo were having a together moment, Beverly asked her South African love Angelo: -
“I try to deny that I love you because I’m thinking it’s too early to love you when I don’t know how you are in the outside world,”
Angelo replied: “To be honest, I’m also kind of scared of knowing you on the outside”
Beverly then continue to reveal her darkest secrets to Angelo and asked at the end – “Can you marry a person like me?”
Angelo replied “Yes, but would you marry someone like me?” and Beverly also said yes, that she loves him
BREAKIN NEWS!!!
Lagos Govt Orders Army, Police to Takes Over Ladipo Market.
**Igbo traders still refused to recognise the imposed sectional market leader (Baba Oloja). Let him come & contest for the leadership of the market.
**Operatives of OP-MESA stationed their vehicles around the warehouse area.
**15 pick up vans with armed mobile policemen. Operatives of SARS were also on ground.
The Lagos Government have drafted combined force of armed soldiers and mobile policemen to Ladipo Market, Mushin Lagos, to enforce the new imposed Baba Oloja for the market on Igbo traders.
The Igbo traders have refused to recognise the new Baba Oloja as the leader of the market insisting that Igbos traders are over 99% of .
The Igbo traders traders claimed they are not aware of the reason the troop have been drafted to their Market, other than Lagos state government intimidation and bullying them to accept a man that cannot win even one percent if a leadership election i conducted today.
Mr. Ikechukwu Animalu, the President-General of Ladipo Auto Central Executive Committee, said that the men were brought to the market through government backing by Alhaji Oki (govt Baba Oloja) to take control of the market.
Mr. Animalu said that they heard the hint that the soldiers, policemen and members of OPC will take over the market.
“We will not recognise him. If he wants to lead the market, he should wait for my tenure to expire and then contest for the leadership of the market,” he stated.
Operatives of OP-MESA were seen in their vehicle with registration number DD 47 KTU positioned in front of the Warehouse A. 15 pick up vans with armed mobile policemen. Operatives of SARS were also on ground.
**Igbo traders still refused to recognise the imposed sectional market leader (Baba Oloja). Let him come & contest for the leadership of the market.
**Operatives of OP-MESA stationed their vehicles around the warehouse area.
**15 pick up vans with armed mobile policemen. Operatives of SARS were also on ground.
The Lagos Government have drafted combined force of armed soldiers and mobile policemen to Ladipo Market, Mushin Lagos, to enforce the new imposed Baba Oloja for the market on Igbo traders.
The Igbo traders have refused to recognise the new Baba Oloja as the leader of the market insisting that Igbos traders are over 99% of .
The Igbo traders traders claimed they are not aware of the reason the troop have been drafted to their Market, other than Lagos state government intimidation and bullying them to accept a man that cannot win even one percent if a leadership election i conducted today.
Mr. Ikechukwu Animalu, the President-General of Ladipo Auto Central Executive Committee, said that the men were brought to the market through government backing by Alhaji Oki (govt Baba Oloja) to take control of the market.
Mr. Animalu said that they heard the hint that the soldiers, policemen and members of OPC will take over the market.
“We will not recognise him. If he wants to lead the market, he should wait for my tenure to expire and then contest for the leadership of the market,” he stated.
Operatives of OP-MESA were seen in their vehicle with registration number DD 47 KTU positioned in front of the Warehouse A. 15 pick up vans with armed mobile policemen. Operatives of SARS were also on ground.
Thursday, 1 August 2013
(PHOTOS) Feed Your Eyes: Yvonne Nelson Has To Be The Hottest Looking Female Around With These Latest Pics
Ever since she got dumped by Iyanya, Yvonne has since improved her self image
She lost lots of weight, Maybe due to over crying or exercise, one cannot tell.
But whatever her Secret is, Jackie Appiah really needs to know because she hasn’t improved like the rest of her pals.
Now feel free to Satisfy your eyes with the sexy pics of Miss Yvonne
Bear With Us; FG Appeals To Students, Parents Over ASUU Strike
The Federal Government has appealed to students over the ongoing strike by the Academic Staff Union of Universities saying that it is committed to the speedy resolution of the crisis for the sake of Nigerian students.
Speaking to State House correspondents after Wednesday’s Federal Executive Council meeting, Minister of Information, Labaran Maku said the government was committed to “serious negotiations” with the university lecturers.
He therefore appealed to the students and parents to bear with government and show more understanding as efforts are being made to find a lasting solution to the problem at hand.
“The federal government has been far more worried than you think concerning the strike in tertiary institutions, because of the disruption of the school calendar and so government is concerned and very worried and since the onset of the strike government has been negotiating with ASUU through the Ministry of Labour and Productivity and the Ministry of Education.
“As at today we know that this negotiations are going on and it is our expectation that this strike will not get more protracted and that an understanding will be reached soon enough to enable our students return back to school. Government is very worried and concerned every time the school calendar is disrupted, it has its cost to the nation, particularly the idle time our children spend at home can lead to a lot of social difficulties.
“We don’t want school calendars to be disrupted and a lot of series of discussions have been going on and we believe we should record some progress soon enough for these schools to open and the Minister of Labour and education will be giving quarter briefing on the progress of these negotiation and I know that it has never cease.
“So we are appealing to our people particularly parents and children of this nation to bear with us, to show more understanding and we pray that this type of strike will not re-occur, because the public school system suffers a lot of damage with the perennial strikes. The universities have been relatively stable since the advent of this Administration. The outraged strikes that we inherited we have tried to resolve them, and if you notice in the last two years there has not been a lot of strikes until this unfortunate one and I believe we will overcome it and in the end both parties will appreciate the need to keep the school calendar stable for the progress of our country. So government is working hard to ensure we reach an agreement to resolve this problem so that or schools can re-open” he said
PHOTO: 2shotz See That Thing Very Deliciouse
BY MILKYNICE
Taking to popular social media medium to share an intimate pic of his self and the lovely wife he shows us some of his delight in getting married.
In this recent photo shoot which the rapper uploaded on his Instagram page, 2Shotz is seen checking out his darling wife.
Taking to popular social media medium to share an intimate pic of his self and the lovely wife he shows us some of his delight in getting married.
In this recent photo shoot which the rapper uploaded on his Instagram page, 2Shotz is seen checking out his darling wife.
10 Shocking Things You Probably Did Not Know About Lionel Messi
Indeed, one of the most spectacular players of all time is known to have a rather depressing and bland personality. This article will change the way you see him…
Here are 10 facts about Messi you’ve probably never heard before:
1.He used to stuff his face with pastries and Milanese escalopes
When Messi was a child, a coach had found the right method for him to surpass himself constantly: he promised him a “alfajor” the full Argentine pastry sugar for every goal scored. Leo scored 5 or 6 then had swallowed his due.
The four Golden Ball has always loved food. His favorite dish: escalope Milanese. His mother was cooking them two or three times a week during his stay in Catalonia.
When Josep Guardiola was appointed coach of Barca, he quickly realized that his gluttony was problematic. The press began to call Messi “the star of porcelain” because of his recurring injuries, partly due to his unhealthy lifestyle.
Guardiola decided to remove the Coca-Cola vending machine from the training center , which Messi used and abused, and he appointed a physiotherapist, Juanjau Brau who taught him to “not run away when he saw a salad.”
“La Pulga” began to eat vegetables and stopped to spend the night watching the Argentine championship matches. And injuries have become more rare. To complete the job, Messi got engaged with a childhood friend who was studying to become a nutritionist, Antonella Rocuzzo.
Messi and antonella roccuzzo, his fiance who is also a nutritionist.
2. He did not manage to finish the autobiography of Maradona
Messi said his favorite book was “El Martin Fierro.” It is a well-known book in Argentina, somewhat equivalent to the “Little Prince” in France. The book is laminated manual for school and talked about when you’re stuck with nothing to say. The success providing him assurance, the Barcelona star now assumes that he never reads and he is not even able to overcome Maradona’s autobiography.
His cultural universe is a wasteland. He stopped watching the series “Lost” and “Prison Break” because the story was too complex for him. At most a few films, such as “Cuidado, bebe suelto” or “El hijo de la novia” as the heroine reminds him of his grandmother (discussed).
Outside his sport, his passions revolve around the PlayStation – he excels at football simulations – and Disneyland, where he likes to walk.
Alexandre Julliard, co-author of “The Mystery Messi” says:
“Like many working-class children in Argentina, there is no room for anything other than family, friends and football. That’s what built him. ”
Away from the football field, Messi is really bored. He has long slept 12 hours a day to kill time and his brother Rodrigo talks about the first years in Barcelona as a sad routine: nap, Playstation and family.
However, Messi is not a stupid boy. All those who know him say he is quick to pick up things, quite smart actually. He is of a humble type and also very polite. The footballer Pedro Zabaleta, his friend from youth teams, said outright that he is “a better human being than a footballer.”
3. He is socially inadequate
During his youth, Messi was so shy that people sometimes thought he was mute or autistic. Journalist at El Pais, Roman Besa tells a story that illustrates his inability to communicate:
“One day, Lionel entered the field with a plastic spoon in his mouth. He did not let go until the end of the session. It was a way to show that he was upset. For what reason? Nobody knew and nobody has ever tried to find out. ”
His teachers advised parents to take him to see a psychologist. At nearly 26 years old, the Barcelona is a bit more confident now but he is a nightmare for journalists to interview. And he hates talking on the phone. Even wirh Maradona, who said:
“It’s harder to get Messi on the phone than to interview God. ”
To communicate, the footballer uses his relatives. At school, it was a friend who raised his hand when he had a question. Today, he uses SMS to pass important messages. To say that the presence of Ibrahimovic to Barca was troublesome, he wrote to Guardiola
“Well, I see that I’m not really important for the team, so … ”
This inability to socialise is probably the sport strength of Messi. Locked in his world, he is at home on the pitch, impervious to pressure from other people, even at the most publicized level. His coach Tito Vilanova said he plays just like when he was 13.
4 It is an anonymous footballer who inspired the destiny of Messi
It is a footballer who has fallen into oblivion who convinced Messi’s father that the fate of his son was in Europe. In 2000, the transfer of young players from Latin America to the Old Continent were rare. But this year, Leandro de Petris was leading the way. The 12 year old was a little star in Argentina and AC Milan decided to secure his services.
At this time, the talent of Messi began to dazzle his country. He was the best player of “maquina 87″, the selection of young Newell’s Old Boys who won four championships in six years. So Jorge Messi would hire two agents to get him a test in a big club.
Messi landed in Barcelona because his father guessed there was good sportsmanship and financial future, not because the club was the only one to pay for his medical treatment, as the legend says. In reality, Leo had already been receiving injections of growth hormones for years to treat his illness.
In any case, the career of De Petris was much less brilliant than Messi: After years of struggling in Italy, he now plays Argentine third division.
5. He was recruited by Barcelona after juggling with an orange
Fabian Soldini,an agent poached by Messi’s father, said he must strike hard. In “The Mystery Messi” Alexandre Julliard and Sebastian Fest question Soldini, who said:
“I went to see Lionel and I gave him a few oranges and tennis balls. I told him: “You train to juggle it and within a week, I film.” A week later, Leo mastered his subject. He made 113 juggle with an orange, 120 with a tennis ball. I sent it in Barcelona who quickly told me to bring him along. ”
This is the beginning of the story. Conquered by the boy, Carlos Rexach, former coach of Barcelona, quickly sign a transfer agreement on a paper towel. And Messi is Barcelona player.
6. The Argentine Federation initially called him Leonel Mecci
Messi, who obtained dual nationality, shines in his first games with the youth of Barça. So, the Spanish Federation gets interested. It almost called him for a selection.
The Argentine Federation realizes it must enlist quickly not to lose him forever. In the rush, it sends a notice when it barely knows who he is. Barcelona receives it addressed to “Leonel Mecci.”
Messi is delighted: he is the only player playing outside Argentina to be part of the team under 20 years old, sacred – thanks to him – world champion.
The rest of his story with the Argentine selection is a series of disappointments. Xavi said Leo often gets “his morale destroyed” by his travels with the national team. He gets criticized because he is not as good as with Barca and because he does not sing the anthem.
He is treated as “pecho frio”, a coward, too smooth and too nice to honor the Argentine pride. When the team is eliminated from the 2010 World Cup in Germany, Messi cries in the dressing room so much that “he seems to convulse,” according to his coach.
7.He dedicates his goals to his beloved grandmother
It is thanks to her grandmother that Messi has persevered in football. It was her who led him to his training in Rosario, she convinced the coaches to play the little man with the biggest.
Alzheimer’s patient, she died when Leo was 10 years old. He still talks a lot about her and he dedicates his goals by pointing his finger at the sky
“I miss her so much. I so wanted her to see what I’ve become. It is for this reason that I dedicate my goals, because I like to think she sees me where she is ”
The passion of Messi is his family. His father, so hard with him, and his grandmother, but also his brother Rodrigo with whom he has long lived in the cocoon of the Barcelona suburb, his “Little Rosario”, Matias, the other brother, the more turbulent. His mother, too, he has the face tattooed on his left shoulder blade.
8. He speaks Catalan only when he is drunk
Messi understands Catalan but almost never speaks it It the standard of a club that boasts its nationalism. Successive presidents have never dared to constrain the star.
Finally, one evening in celebration of a title from Barcelona, he took the megaphone, perched on top of the bus, and shouted:
“Visca el Barça, visca Catalunya there aguante Argentina, la concha de su madre! ”
Translation:
“Long Live Barca, Long live Catalonia, and Argentina, (swearing words)! ”
Messi had a scarf around his head. He was drunk.
9. His best friends are always Brazilian
Messi has always had lots of friends. He was nicknamed “The Dwarf” or “La Pulga” (the flea), they laugh at his big ears, but his football skills command respect. When he returns to Rosario, he hangs out with his old buddies from the “maquina 87.”
In Barcelona, he was close to those with whom he has played since the age of 13, especially Fabregas and Pique, who he calls “Dad” because he has protected him from an early age.
But with the Brazilians it is always the best fun. Deco and Ronaldinho were his best mates. He chose to wear the number 30 because it is adding their two jerseys (10 and 20). These two, with Thiago Motta, now in Paris, made him experience the nightlife, to the point of angering his father.
Then there was the meeting with Sylvinho, who says:
“Leo asked me questions, he wanted me to help, to take his hand in some way. One day, for example, he wanted to change euros for yen, but he did not know how to do it. I went down to the hotel reception for help. ”
Today, Alexandre Julliard said:
“In Barcelona, his two closest friends are Dani Alves and the second goalkeeper Pinto. At the club, some even say that he is under contract just because he is a friend of Messi. ”
10. “Inmessionante”, the word that entered the dictionary
As the word “zlataner” makes you crazy. Well, know that Messi, too, had the right to become a common name. Santillana dictionary joined the adjective “inmessionante” whose definition is as follows:
“Adjective that refers to Lionel Messi, the perfect way to play football at its unlimited capacity to excel. Says the best footballer of all time. ”
This is the Argentine coach Alejandro Sabella, driven by Pepsi, which has campaigned for this neologism.
We say that Messi deserves it. His way to dribble the ball glued to the outside of his left foot, is unique. Guardiola believes that he is the only footballer to “run faster with the ball than without.” Messi, explains it like this:
“When I was a kid, I played on rotten wasteland in the streets, in my house. My ball control is adapted to these conditions with the outside game, obviously, because it’s easier to keep the ball … “
Lagos State Government, yesterday, debunked allegation that it deported 67 indigenes of Anambra State, saying what happened was that the state government did rehabilitation and resettlement of citizens from other states.
It equally assured residents of adequate security of life and property in the wake of the recent arrest of some Boko Haram suspects in the state.
Briefing newsmen after the weekly security meeting chaired by Governor Babatunde Fashola, state Commissioner of Police, Mr. Umar Manko, said the state government only resettled the 67 Anambra indigenes.
“What happened was that the state government did rehabilitation and resettlement of the citizens from other states. These were those who came into the state and turned into destitute.
“After the state government realised this, it embarked on a reform mission. After that, they indicated that they would be happy to go back to their home-towns and be resettled. That was what happened. There wasn’t any deportation as claimed,” Manko said.
Pendo: “Davido Kept It Fresh For Hours In Bed With Me”
BY MILKYNICE 
Singer Davido has just returned from Kenya but it seems the juicy details about his trip were left out till now.
A certain Kenyan girl has been going around happily granting interviews about how she had s*x with the music star while he was in Kenya.
According to her, Davido kept it fresh for hours. ‘He’ is big in length and width.
Read what she said in one of her interviews: -
So what is all this wahala about Davido blocking you off of his facebook?
Pendo : If people had done even a little research, they would know that Davido does not even have a Facebook account. I NEVER said I was in touch with him through Facebook. I got in touch with him through a good friend of his *redacted* and that’s where everything started. He did the intro.
So, seriously, did you sleep with Davido?
Pendo: Errrrrrrrrrrm (laughs cheekily) (There is IRREFUTABLE proof that Pendo did spend the night with Nigerian superstar, if you want to see it plead with her on twitter @LoveStaicey to release it.) In the meantime, have this picture of Davido, unclad, in his hotel room from his personal instagram. Maybe Pendo took it #troll
So why did you do this? Do you do this for money?
Pendo: (Laughs) No, I didn’t get money from him. I didn’t WANT money from him. I did it simply cuz I find him hot and he is pretty legit in the music industry in Africa. Yeah, I am attracted by his talent, his fame, his power, but honestly, who isn’t? And people are talking so much because a lot of women wanted to be in my shoes, but were not. I’m not afraid to go after what I want. That’s just me. And I am unapologetic for it. I am content that I got what I wanted -which was to know him- and I guess it just naturally progressed from there…
So was this a one time thing then?
Pendo: No, I would do it again. Gladly. I don’t regret it at all.
Of course you know now I am gonna ask about the “D”. Free reign, choose your own words to describe it.
Pendo: He was perfect.
Nooooooooo, more than that. DESCRIPTION.
Pendo: (Laughing) Ok, ok. Errrrrrrrrrrm, he is much better than your “average Kenyan”. He is big. Both length and width. (Giggles) And best part is he REALLY knows what he is working with.
Haha, so you loved ALL OF HIM. (SN: Hehe, see what I did there?)
Pendo: (Giggles) Ha, you won’t let this go will you. Haha, no seriously though, he has CRAZY moves, he kept it fresh for a couple hours. I am impressed. Definitely the best…(hesitates) Ok maybe not the best I ever had, but he is up there.
So was this a one night stand or will you be seeing him again?
Pendo: Davido is not only a good lover but a gentleman. Not only did he not publicise the affair, but he left me with some personal mementos to remember him. I don’t think a one night stand does that. Plus there is still communication going on. I’m not saying we are dating, but we are definitely still talking. He did not “hit it and quit it”
A certain Kenyan girl has been going around happily granting interviews about how she had s*x with the music star while he was in Kenya.
According to her, Davido kept it fresh for hours. ‘He’ is big in length and width.
Read what she said in one of her interviews: -
So what is all this wahala about Davido blocking you off of his facebook?
Pendo : If people had done even a little research, they would know that Davido does not even have a Facebook account. I NEVER said I was in touch with him through Facebook. I got in touch with him through a good friend of his *redacted* and that’s where everything started. He did the intro.
So, seriously, did you sleep with Davido?
Pendo: Errrrrrrrrrrm (laughs cheekily) (There is IRREFUTABLE proof that Pendo did spend the night with Nigerian superstar, if you want to see it plead with her on twitter @LoveStaicey to release it.) In the meantime, have this picture of Davido, unclad, in his hotel room from his personal instagram. Maybe Pendo took it #troll
So why did you do this? Do you do this for money?
Pendo: (Laughs) No, I didn’t get money from him. I didn’t WANT money from him. I did it simply cuz I find him hot and he is pretty legit in the music industry in Africa. Yeah, I am attracted by his talent, his fame, his power, but honestly, who isn’t? And people are talking so much because a lot of women wanted to be in my shoes, but were not. I’m not afraid to go after what I want. That’s just me. And I am unapologetic for it. I am content that I got what I wanted -which was to know him- and I guess it just naturally progressed from there…
So was this a one time thing then?
Pendo: No, I would do it again. Gladly. I don’t regret it at all.
Of course you know now I am gonna ask about the “D”. Free reign, choose your own words to describe it.
Pendo: He was perfect.
Nooooooooo, more than that. DESCRIPTION.
Pendo: (Laughing) Ok, ok. Errrrrrrrrrrm, he is much better than your “average Kenyan”. He is big. Both length and width. (Giggles) And best part is he REALLY knows what he is working with.
Haha, so you loved ALL OF HIM. (SN: Hehe, see what I did there?)
Pendo: (Giggles) Ha, you won’t let this go will you. Haha, no seriously though, he has CRAZY moves, he kept it fresh for a couple hours. I am impressed. Definitely the best…(hesitates) Ok maybe not the best I ever had, but he is up there.
So was this a one night stand or will you be seeing him again?
Pendo: Davido is not only a good lover but a gentleman. Not only did he not publicise the affair, but he left me with some personal mementos to remember him. I don’t think a one night stand does that. Plus there is still communication going on. I’m not saying we are dating, but we are definitely still talking. He did not “hit it and quit it”
Wednesday, 31 July 2013
Plotting the programme of work
by ODUFUWA OPEYEMI
BRIEFINGS
Programmes of work which show the sequence of activities are common in the construction industry, and their importance is growing rapidly. Managers, engineers, quantity surveyors and site managers now need to be able to read and interpret programmes as much as construction drawings. But the role of programmes is still unclear.
Standard forms of contract do not take a common approach to their use and often the contractual significance of a programme is difficult to establish. In this Briefing we describe the common types and uses of programmes and their status in standard contract forms.
Adopting the modern angle
Under the Engineering Construction Contract 2nd Edition the programme is an important tool in the management and administration of the contract. There are extensive provisions for both the submission of programmes for acceptance and for their revision.
This form adopts a modern and innovative approach, in which the term 'programme' means more than simply a bar chart, but also includes a method statement (identified at clause 31.2).
Detailed provisions are made for programmes.
They are required to show key dates, a method statement for each operation, resources, the order and timing of operations, float and time risk allowances.
The provisions for revising the programme under clause 32.2 ensures that programmes are updated to reflect progress and changes in the contractor's plans. The intention is to allow flexibility in the planning of work subject to express requirements in the works information.
If the employer does not provide information or carry out work in accordance with the programme, the contractor will be entitled to compensation. The employer is therefore obliged to follow the programme.
This programme is also used to establish delays and as such is a compensation programme.
Analysis of delay is intended to be based on the programme, revised to take into account not only the delay but also time risk allowances for the consequences of the compensation event.
Chart hits: the most common programmes
The term 'programme' is not a legal term. It takes its meaning from the contract. In order to decide what type of programme is required it is necessary to examine the role designated to the programme by the contract terms.
The most common type of programme is a bar chart representing a list of activities. The planned start and finish are shown on a time grid and are connected by a horizontal bar, which represents the duration of the activity.
The bar chart is used to report and monitor progress using a 'time-line' in which the progress of each activity is shown against the time-line. See Figure 1, above. The bar chart, although useful, only allows progress to be monitored; it does not allow analysis of the effects of different events or to decide which activities should have a priority. Neither does it easily allow an evaluation of any entitlement to extension of time, although it is useful as evidence.
The type of programme required to manage a project or establish entitlement is a Critical Path Network Programme of which the most commonly used is the linked bar chart, see Figure 2, left.
The linked bar chart models the whole project by linking activities by 'logic links'. It is possible to alter the duration or timing of an activity and see the effect on other activities and completion. Delayed activities which will delay completion are 'on the critical path'. Others are said to have 'float'.
Making progress
ICE 7th Edition Clause 14 requires the contractor to submit a programme and a method statement. One role of the programme is to measure progress: comparison against the programme will be evidence of the contractor having fulfilled its obligation to proceed as reasonably expected.
A bar chart will be sufficient to fulfil the function identified in ICE 7th Edition, as it will show the order of carrying out the works and allow progress to be monitored.
The ICE Form does not give the programme a significant place in the management of the contract. The contractor's report on its method of working is distinct from the submission of a programme and the contractor's obligation for progress is not directly related to the programme.
This programme is not a compensation programme since the entitlement to extension of time is based on actual delay and not on an analysis of the clause 14 programme.
It's all in the detail Under MF/1 Rev 4 2000 the programme is required to show:
The sequence and timing of the activities by which the contractor proposes to carry out the works;
Anticipated resources;
Respective times for submission by the contractor of drawings and operating and maintenance instructions; and n The times by which the contractor requires the purchaser to provide information and access, to have completed any necessary work, obtained permits and provided site utilities.
The programme a detailed document, although its role is only to allow progress to be monitored. Although the engineer can order revision of the programme, there is no express obligation to follow it.
It is advised that a bar chart is used to fulfil the functions required under the MF/1 Rev 4 2000, subject to provisions in the special conditions. This is not intended to be a compensation programme.
How to keep it simple
Of all the standard forms, the JCT 1998 is the least innovative in recognising the rise in the use of programmes in contracts and particularly in reducing the incidence of disputes.
The form refers to a 'Master Programme' in clause 5.4.1, which is optional. This programme does not have a defined role - it is made clear that nothing contained in the Master Programme, nor in its revision, imposes any obligation beyond those imposed by the contract documents.
The form refers to an 'Information Release Schedule'. This is the simplest form of programme: a list of required information together with dates on which the architect is to issue the information.
The failure of the architect to comply with clause 5.4.1 is a 'relevant event' which may entitle the contractor to an extension of time.
Primary importance
The IChemE Form has a rather ambiguous approach to the use of the programme. The role of the programme is intended only to allow progress to be monitored and a bar chart is sufficient to fulfil the required role. This programme is not intended to be a compensation programme.
The programme is intended to demonstrate progress that th project manager considers could reasonably be made by the contractor.
Clause 13.3 requires the contractor to use reasonable endeavours to perform its obligations in accordance with the programme.
The programme is required to be an accurate prediction of progress. The primary obligations are to complete on time an to proceed regularly and diligently. The obligation to follow the approved programme is a secondary requirement to achieving the primary obligations.
Tuesday, 30 July 2013
What Is Cost Planning in the Construction World?
Cost planning is a key due diligence step in preparing for a construction project. Cost planning tells a property owner how much a proposed project will cost. Additionally, cost planning will tell when the expected expenses will most likely occur. This information is critical for obtaining project financing and for determining whether a project can be profitable. Without cost planning, property owners would enter blindly into construction projects and possibly into insolvency.
Significance
Cost planning determines the fiscal feasibility of a construction project. After the owner has set a maximum cost, cost planning will determine whether that cost cap can be met. If not, the project is not feasible in its current state and should be reworked to reduce costs. Additionally, cost planning is used to structure financing for a project. Cost planning informs the owner exactly when finance installments will be needed, so the owner can keep current with billings.
Features
Cost planning typically involves two features. The first is an overall budget for the project. This is the total amount that the project is expected to cost. This amount is based on the current project scope and design and can be determined through various types of estimates. The second feature of cost planning is the allocation of costs over time. This involves predicting when along the project schedule costs will actually be incurred and paid.
Benefits
A central benefit of cost planning is that the owner is aware of financial expectations. This allows an owner to secure the proper financing and business plan. Without cost planning, owners would not know if a project is expected to be profitable. Additionally, cost planning allows an owner to properly structure a construction loan. Instead of borrowing the total project cost upfront (and beginning to pay interest on the total immediately), cost planning allows an owner to borrow only what will be spent in a particular period and to avoid paying interest on the balance until it is received.
Time Frame
Cost planning should be done three times before the start of construction: once at the project's initial inception, once after the preliminary design is complete, and once after the final design is permitted. Additionally, the cost plan should be regularly updated and tracked during the course of construction to ensure accuracy, typically after each project milestone.
Warning
Although construction costs can be planned and estimated, they also can significantly change during the course of actual construction. Even the smallest changes to design and scope can lead to drastic cost changes due to having to rework a completed portion of the project. The best way to meet original cost planning estimates is to limit the amount of design change that occurs on a project.
Significance
Cost planning determines the fiscal feasibility of a construction project. After the owner has set a maximum cost, cost planning will determine whether that cost cap can be met. If not, the project is not feasible in its current state and should be reworked to reduce costs. Additionally, cost planning is used to structure financing for a project. Cost planning informs the owner exactly when finance installments will be needed, so the owner can keep current with billings.
Features
Cost planning typically involves two features. The first is an overall budget for the project. This is the total amount that the project is expected to cost. This amount is based on the current project scope and design and can be determined through various types of estimates. The second feature of cost planning is the allocation of costs over time. This involves predicting when along the project schedule costs will actually be incurred and paid.
Benefits
A central benefit of cost planning is that the owner is aware of financial expectations. This allows an owner to secure the proper financing and business plan. Without cost planning, owners would not know if a project is expected to be profitable. Additionally, cost planning allows an owner to properly structure a construction loan. Instead of borrowing the total project cost upfront (and beginning to pay interest on the total immediately), cost planning allows an owner to borrow only what will be spent in a particular period and to avoid paying interest on the balance until it is received.
Time Frame
Cost planning should be done three times before the start of construction: once at the project's initial inception, once after the preliminary design is complete, and once after the final design is permitted. Additionally, the cost plan should be regularly updated and tracked during the course of construction to ensure accuracy, typically after each project milestone.
Warning
Although construction costs can be planned and estimated, they also can significantly change during the course of actual construction. Even the smallest changes to design and scope can lead to drastic cost changes due to having to rework a completed portion of the project. The best way to meet original cost planning estimates is to limit the amount of design change that occurs on a project.
Have you ever struggled to convert units of measure from one to another or m³ of a material to kg ?
by Adewumi Olalekan 
Have you ever struggled to convert units of measure from one to another or m³ of a material to kg ?
For example, concrete is measured as m³, but if mixing on site the separate constituents are purchased by weight and despite having used metric measurement for over 40 years, a number of imperial units are still widely popular and in regular use.
RBC are pleased to assist with a number of conversion tables.
(Material density is based upon average moisture content)
Length
1in = 25.4mm 1mm = 0.0394in
1 ft = 0.3048m 1m = 3.2808 ft
1 yd = 0.9144m 1m = 1.0936yd
1mile = 1.6093km 1km = 0.6214mile
Area
1 inch2 = 645.2 mm2 1mm2 = 0.0016 in2
1 foot2 = 0.0929 m2 1 metre2 = 10.764 ft2
1 yard2 = 0.8361 m2 1 m2 = 1.0936 yd2
1 mile2 = 2.590 km2 1 km2 = 0.3861 mile2
1 acre = 4840 yrd2 1 Hectare = 10,000 m2
1 acre = 0.4047 Hectare 1 Hectare = 2.47105 acre
Cubic
1 in3 = 16.387 cm3 1 cm3 = 0.0610 in3
1 ft3 = 0.0283 m3 1 m3 = 35.3147 ft3
1 yd3 = 0.7646 m3 1 m3 = 1.3080 yd3
1 pint = 0.5683 L 1 L = 1.760 pint
Mass
1 oz = 28.350 g 1 g = 0.0353 oz
1 lb = 0.4536 kg 1 kg = 2.2046 lb
1 ton = 1.016 t 1 t = 0.9842 ton
Force
1 lbf = 4.448 N 1 N = 0.2248 lbf
1 tonf = 9.964 kN 1 kN = 0.1004 tonf
Weights of some common materials
Ashes = 610 kg/m3 Lime (ground) = 761 kg/m3
Portland Cement = 1600 kg/m3 Sand (dry) = 1707 kg/m3
Chalk = 2406 kg/m3 Sand (wet) = 1831 kg/m3
Chippings (stone) = 1762 kg/m3 Water = 1000 kg/m3
Ballast = 2241 kg/m3 Pitch = 1152 kg/m3
Gravel = 1790 kg/m3
Example of calculation (Bags of cement per m3)
Density of Portland Cement Number of 25kg bags per m3 Answer
1600 kg/m3 (1600 (kg/m3) x 1 (m3))/25 (kg bags) 64 Bags
For example, concrete is measured as m³, but if mixing on site the separate constituents are purchased by weight and despite having used metric measurement for over 40 years, a number of imperial units are still widely popular and in regular use.
RBC are pleased to assist with a number of conversion tables.
(Material density is based upon average moisture content)
Length
1in = 25.4mm 1mm = 0.0394in
1 ft = 0.3048m 1m = 3.2808 ft
1 yd = 0.9144m 1m = 1.0936yd
1mile = 1.6093km 1km = 0.6214mile
Area
1 inch2 = 645.2 mm2 1mm2 = 0.0016 in2
1 foot2 = 0.0929 m2 1 metre2 = 10.764 ft2
1 yard2 = 0.8361 m2 1 m2 = 1.0936 yd2
1 mile2 = 2.590 km2 1 km2 = 0.3861 mile2
1 acre = 4840 yrd2 1 Hectare = 10,000 m2
1 acre = 0.4047 Hectare 1 Hectare = 2.47105 acre
Cubic
1 in3 = 16.387 cm3 1 cm3 = 0.0610 in3
1 ft3 = 0.0283 m3 1 m3 = 35.3147 ft3
1 yd3 = 0.7646 m3 1 m3 = 1.3080 yd3
1 pint = 0.5683 L 1 L = 1.760 pint
Mass
1 oz = 28.350 g 1 g = 0.0353 oz
1 lb = 0.4536 kg 1 kg = 2.2046 lb
1 ton = 1.016 t 1 t = 0.9842 ton
Force
1 lbf = 4.448 N 1 N = 0.2248 lbf
1 tonf = 9.964 kN 1 kN = 0.1004 tonf
Weights of some common materials
Ashes = 610 kg/m3 Lime (ground) = 761 kg/m3
Portland Cement = 1600 kg/m3 Sand (dry) = 1707 kg/m3
Chalk = 2406 kg/m3 Sand (wet) = 1831 kg/m3
Chippings (stone) = 1762 kg/m3 Water = 1000 kg/m3
Ballast = 2241 kg/m3 Pitch = 1152 kg/m3
Gravel = 1790 kg/m3
Example of calculation (Bags of cement per m3)
Density of Portland Cement Number of 25kg bags per m3 Answer
1600 kg/m3 (1600 (kg/m3) x 1 (m3))/25 (kg bags) 64 Bags
Monday, 29 July 2013
Sunday Mba Ranked 24th Best Player In The World
Sunday Mba Ranked 24th Best Player In The World
This is a first time ranking for Mba in the annual goalcom top 50 after he became a revelation for the super eagle’s in the recently concluded AFCON which he scored to clinch the title.
When Keshi decided to take Mba along with five other home based players to the AFCON tournament he had a lot of raised eyebrows but the 24-year-old played better than many of the nation’s more heralded foreign contingent.
Having started the tournament on the bench, Mba was Nigeria’s hero in the knockout stages. He scored the winner in the quarter-final against Cote d’Ivoire to spell the end for Didier Drogba’s trophyless ‘golden generation’. Then in the final itself, Mba fired home the only goal against Burkina Faso to gift Nigeria their first Afcon title since 1994.
The 24-year-old was also one of Nigeria’s best performers at the Confederations Cup and has helped to draw attention to the depth of talent in the Nigerian league.
This is a first time ranking for Mba in the annual goalcom top 50 after he became a revelation for the super eagle’s in the recently concluded AFCON which he scored to clinch the title.
When Keshi decided to take Mba along with five other home based players to the AFCON tournament he had a lot of raised eyebrows but the 24-year-old played better than many of the nation’s more heralded foreign contingent.
Having started the tournament on the bench, Mba was Nigeria’s hero in the knockout stages. He scored the winner in the quarter-final against Cote d’Ivoire to spell the end for Didier Drogba’s trophyless ‘golden generation’. Then in the final itself, Mba fired home the only goal against Burkina Faso to gift Nigeria their first Afcon title since 1994.
The 24-year-old was also one of Nigeria’s best performers at the Confederations Cup and has helped to draw attention to the depth of talent in the Nigerian league.
by elizabeth
ATTENDACE IN CONTRUCTION
Attendance is the main contractor’s mark up for specific services it has to provide for individual suppliers or sub-contractors. This might include items such as material handling, scaffolding and rubbish clearance.
Attendance can be ‘general’ or ‘special’.
General attendance is the description of main contractor attendance available site wide to all contractors/subcontractors such as:
Welfare facilities.
External scaffolding.
Temporary power and lighting.
Platform and passenger hoists.
Tower crane lifts by prior arrangement.
Site security.
Waste disposal.
Special attendance is specific to a particular contractor/subcontractor if it requests it to be provided by the main contractor such as:
Special hoisting.
Builders work such as a concrete plinth.
Special scaffolding.
It is important to establish within the contract documents whether items that the sub-contractor will require will constitute attendances that will be provided by the main contractor, or whether they will provide them themselves (such as their own specialist equipment).
Attendance should not be confused with general site preliminaries or builder’s work in connection with mechanical and electrical services. These items are separately priced.
ATTENDACE IN CONTRUCTION
Attendance is the main contractor’s mark up for specific services it has to provide for individual suppliers or sub-contractors. This might include items such as material handling, scaffolding and rubbish clearance.
Attendance can be ‘general’ or ‘special’.
General attendance is the description of main contractor attendance available site wide to all contractors/subcontractors such as:
Welfare facilities.
External scaffolding.
Temporary power and lighting.
Platform and passenger hoists.
Tower crane lifts by prior arrangement.
Site security.
Waste disposal.
Special attendance is specific to a particular contractor/subcontractor if it requests it to be provided by the main contractor such as:
Special hoisting.
Builders work such as a concrete plinth.
Special scaffolding.
It is important to establish within the contract documents whether items that the sub-contractor will require will constitute attendances that will be provided by the main contractor, or whether they will provide them themselves (such as their own specialist equipment).
Attendance should not be confused with general site preliminaries or builder’s work in connection with mechanical and electrical services. These items are separately priced.
Variations:
The ARCHITECT holds control over what the builder is being asked to build AT ALL TIMES.
Variations are only valid if they are recorded in writing, are signed by the architect and are delivered to the contractor’s registered office.
Instructions given by the client to the site labourers will NOT count as variations because clients and labourers do not always anticipate the full implications of the changes they propose (eg cost, programme, and safety implications to name but three).
Work which the contractor decides to do without having received a valid instruction from the architect will NOT count as a valid variation, and will not be paid for.
The architect can give instructions verbally to the workers on site but such instructions are only valid if backed up by a formal written (and signed) variation which should be issued within 7 days.
If the clients want to vary some aspect of the work they must communicate with the architect first, who will advise them on the likely time/cost implications of the change and will then issue instructions to the contractor as appropriate. For effective project management this process should NEVER be short-circuited.
Properly written and signed variations issued by the architect are called Architect’s Instructions (or A.I.s for short). They are usually issued on bright orange paper so that they can’t be overlooked or mistaken.
Payments:
The architect holds control over the purse strings for the project.
Each month the architect will visit the site, assess the amount of work that has been correctly completed, compare this to the contractor’s price breakdown and then confirm the amount that the contractor is to be paid. This confirmation is called an INTERIM CERTIFICATE. The architect sends a signed copy of the Interim certificate to the client and the contractor so that they both know where they stand.
The client should only pay the contractor the sums of money that the architect authorises on ‘Interim Certificates’, no more, no less. The figures on the contractor’s invoice must match the figures on the architect’s Interim Certificate.
Under the rules of the game defined in the standard form of contract the builder never gets paid in advance under any circumstances. He should never get paid for work that is not yet undertaken. He should never get paid for work that is substandard.
The client should NEVER pay one of the contractor’s workmen direct under any circumstances.
The client should not bow to pressure from any of the construction team to part with any money unless it has been authorised by the architect on an Interim Certificate, not during the contract nor after the completion date, not EVER.
Inspect or supervise?
Periodic inspections by an architect will not turn an incompetent contractor into a competent one, and will not absolve the contractor of his responsibilities for providing good quality workmanship in accordance with the requirements of the contract.
An architect’s job is to undertake ‘periodic inspections’. This usually means visiting the site once a week to check progress, to answer any queries the contractor may have and to check for obvious signs of bad practice or poor workmanship. It is important to realise that the architect does not supervise the day-to-day activities of construction team – that role falls to the contractor.
A competent and conscientious contractor can be relied upon to pay attention to the architect’s drawings/specifications and to ask for clarification if anything is not clear.
Practical Completion:
At some point the construction work will be deemed to be ‘complete’- we hope!
This is termed PRACTICAL COMPLETION in the contract, but the term is not specifically defined. EKJN use the following definition:
The work is deemed to have reached Practical Completion when the building is complete for all practical purposes save for various minor items of incomplete or defective work, the completion or rectification of which will not hinder the occupants’ use or enjoyment of the building unreasonably.
If the builder has overrun the intended completion date without agreeing it with the architect first then the client is allowed to deduct a sum of money from the final bill for each week of overrun. It’s worth making sure that all the contractors, sub-contractors, labourers and suppliers are aware of this.
The defects rectification period:
After a project reaches Practical Completion the contract allows the client a period of time (6 months on small contracts, 12 months on large contracts) to report any defects. This is called the defects rectification period.
The contractor has a legal obligation to repair any defects that are found in this period. The architect will keep a rolling list of all the defects that have come to light.
During the defects rectification period the client is allowed to hang on to 2½% of the money, which only gets released when the architect issues the Final Certificate.
Final certificate:
When all the defects have been found and repaired and all the variations have been analysed and priced the architect will bring the whole process to a close by issuing a Final Certificate.
This doesn’t mean that the architect is guaranteeing the quality of work, it simply means that everything that needs to be done has been done, and the contractual procedures are at an end.
Common Problems During Construction
How to Keep Control of the Cost:
Don't add extra work. Obviously extra work results in extra expense.
Don't make numerous small changes to the work proposed. Contractors will often inflate their prices for small changes, partly because small changes are genuinely more expensive in terms of materials and labour and partly because there's less incentive (or opportunity) for them to seek truly comepetitive prices during the construction phase.
Don't disrupt regular progress on the site by making regular changes and/or putting obstacles in the way of the contractor’s progress. Disruption = delay = extra expense.
Don't assume that the contingency sum is available to spend on extra ‘bells and whistles’ in the building. The contingency fund is intended to cover the costs arising from gaps, errors, inconsistencies and omissions in the contract documents. Such gaps, errors, inconsistencies and omissions are inevitable however comprehensive the documents are, so spending the contingency fund on extra ‘bells and whistles’ will expose the client to potential cost over-runs.
The best way to keep the cost of a construction project down is to prepare a detailed set of drawings, specifications and quantities before the construction work starts and not to vary it at all.
Only the architect has the power to give valid instructions to the construction team. The architect is in a position to understand the wider implications of each variation to the design in terms of aesthetics, costs, contracts and programmes.
How to Avoid Delays in Progress
Don't Add extra work. Obviously extra work results in extra time being needed.
Don't make numerous small changes to the work proposed. Contractors will be entitled to extra time if regular progress is disrupted by un-planned changes. Good contractors will have all their materials pre-ordered and all their subcontracts set up within the first week or two of a contract. Small changes can therefore have big impacts.
Delays, extra time, damages and loss-and-expense.
If a delay is caused by variations instructed by the architect then the contractor is entitled to claim extra time. The contractor is also entitled to claim ‘loss and expenses’ to cover his extra overheads that relate to the extra programme time.
If a delay is caused by the contractor’s failure to manage the works efficiently then the contractor is not entitled to claim extra time. Under these circumstances any resultant overrun of the programme will allow the client to claim ‘liquidated and ascertained damages’ from the contractor. The figure for liquidated and ascertained damages is pre-agreed as a weekly rate and usually includes an allowance for the architect to cover the cost of the architect’s extra inspections that relate to the contractor’s delay.
If a delay is caused by ‘exceptionally inclement’ weather the contractor is entitled to claim extra time, but is not entitled to claim ‘loss and expense’ to cover his extra overheads.
CLAIMS
Claims arising under a construction contract: a quick guide
Resource type: Practice note: overview
Status: Maintained
Jurisdictions: England, Wales
A quick guide to the typical claims that may arise on a construction and engineering project. These include claims a contractor may make (such as loss and expense, extensions of time and for variations) and claims an employer may make (such as for defective work and liquidated damages).
For more information on the legal structure of a construction project, see Quick guide, Construction projects: the legal structure.
PLC Construction
Why do claims arise under a construction contract?
Construction projects rarely run entirely smoothly: additional works may be requested by the employer or become necessary when things are "discovered" on site; delays may mean the building takes longer to complete; or it may cost more than the parties originally contracted for.
Common claims include:
A contractor may have a claim against the employer relating to a delay or a change in the works.
A professional consultant may have a claim against the employer for non-payment of fees or breach of copyright.
The employer may have a claim against:
the contractor for a delay to the works or a defect in the works; and/or
the professional consultant for failing to properly design or supervise the works.
Top
What the contractor may claim from the employer
A contractor may claim against the employer for more time and money (loss and expense) and for the cost of changes to the works (as variations or as a quantum meruit).
A claim for an extension of time to the completion date
The parties usually agree a completion date in their contract. If not, the contractor should complete its works within a reasonable time.
Standard form contracts usually allow for the completion date to be adjusted, to award the contractor an extension of time. The contractor should comply with the contract procedure.
It is not always easy to work out what caused the delay and whose fault it was; sometimes there are competing causes of delay. If the contractor caused the delay, the employer may have a right to claim liquidated damages from the contractor.
A claim for loss and expense
A contractor often claims loss and expense at the same time as an extension of time. It is the "money" side of a contractor's claim for delay and disruption (that is, a claim for the cost of inefficient working and employing more resources).
Standard form contracts usually allow the contractor to claim for delayed or disrupted work. The contractor should comply with the contract procedure.
A contractor may roll-up all the unattributed costs and claim them from the employer as loss and expense. If the claim does not break down the sum claimed between the contractor's various complaints, it is called a "global claim" or, sometimes, a "total cost" claim.
Common heads of loss and expense claimed include:
prolongation costs;
finance charges;
loss of profits;
general disruption; and
wasted management time.
A claim for the cost of variations
Sometimes called additional work or extras, a contractor may claim for a variation when the employer changes the contractor's scope of work.
Standard form contracts usually include a clause that defines what a variation is and provide a procedure to value the variation. If so, the contractor should comply with that procedure.
Both parties may benefit from a clause permitting variations:
the employer can make changes so that it gets the building it wants; and
the contractor gets paid for providing extra or different work or materials.
Claiming for variations often gives rise to disputes over whether:
the additional work is outside the original scope of work; and/or
the person who ordered the work was authorised to do so.
A claim for payment under a quantum meruit
Under a quantum meruit claim, the contractor claims a reasonable sum for the work done and the materials it has supplied. The parties (or the courts) usually value a quantum meruit claim at a fair commercial rate.
A contractor cannot claim a quantum meruit if the parties have a contract to pay an agreed sum, but it will be relevant if the parties have:
not agreed a contract or not agreed all the terms, including the price for the work;
an agreement to pay a reasonable sum for the work done; or
agreed a scope of work under the original contract and the work falls outside that scope (and the parties did not have or did not use a variation procedure in the contract).
A contractor may claim a quantum meruit if it has worked under a letter of intent.
Top
What the employer may claim from the contractor
The employer may have a claim against the contractor because the works are of a poor quality or are defective, or because the project is delayed.
A claim for poor workmanship and/or defects in the works
Defective work frequently occurs in construction projects. Defects may range from de minimis items included within snagging lists at practical completion, to significant but undetected (or latent) problems. A defect is generally a breach of contract by the contractor, but could relate to design that the contractor did not carry out, in which case only a professional consultant or consultants might be liable.
Standard form contracts usually contain a defects liability clause that obliges the contractor to return to site, at its own cost, during the defects liability period or rectification period (normally six or 12 months) and remedy any defects that arise.
A contractor who is responsible for design and construction of the works may be liable for a defect that is caused by negligent design, by poor workmanship or by a mixture of both.
A claim for liquidated damages
A liquidated damages clause (sometimes called liquidated and ascertained damages or LADs) compensates the employer if the contractor completes its work late. It requires a contractor to pay the employer a pre-determined rate of damages that must be a genuine pre-estimate of the employer's loss.
A liquidated damages clause is a common feature of many standard form contracts. The employer must ensure that it meets any contractual notice requirements in the contract before it claims liquidated damages from the contractor.
The clause may take effect as an exhaustive remedy (that is, the clause may be the employer's only remedy for the contractor's delay).
The employer usually deducts or sets off the liquidated damages from sums it owes to the contractor.
Top
What the employer may claim against the professional consultant
On construction projects, professional consultants often act as the contract administrator (valuing and certifying the works) as well as undertaking a design role. Generally, on building contracts, the professional consultant administering the contract is an architect; on engineering contracts, it is usually an engineer. Occasionally, the employer may appoint a project manager or quantity surveyor to administer a contract.
Professional consultants should perform their services in accordance with the implied or express duty of care in their professional appointment.
The professional consultant may be liable to the employer for failing to:
Design the works in accordance with the professional appointment.
Supervise the works in accordance with the professional appointment.
Ensure the contractor built the works in accordance with the building contract.
Certify the works properly (that is, it is alleged the professional consultant was negligent in certifying the works).
An employer claims its losses caused by a breach of contract or the negligence of a professional consultant as general (unliquidated) damages.
Top
What the professional consultant may claim against the employer
If the employer fails to make payment, the professional consultant may claim for non-payment of fees. The parties may dispute whether a particular professional service was included in the fee agreed at the outset, or whether it was extra work.
The professional consultant will usually retain copyright in the design and its plans and drawings; the employer is typically granted a licence to use these. If the employer does not pay the professional consultant, the professional consultant may argue that the employer's use of the design is in breach of copyright.
Top
What are the differences on engineering projects?
Most engineering projects are procured on different forms of contracts to construction projects (such as FIDIC, NEC3, IChemE and IMechE), but many of the types of claims that could arise are the same.
Some key differences include:
Compensation events. Claims for time and money (or extensions of time and loss and expense) may be dealt with under a single mechanism.
Defects liability. The contractor's ongoing liability for defects may be limited, particularly if the employer can claim performance damages.
Limited variations. In contrast to construction projects, the employer may have a limited right to make changes to the project.
Notification requirements. These may include strict time limits and act as conditions precedent to a claim. If they are not met, the contractor may lose its right to bring a claim.
Performance damages. The employer may be able to claim liquidated damages for the contractor's failure to meet specified
Resource type: Practice note: overview
Status: Maintained
Jurisdictions: England, Wales
A quick guide to the typical claims that may arise on a construction and engineering project. These include claims a contractor may make (such as loss and expense, extensions of time and for variations) and claims an employer may make (such as for defective work and liquidated damages).
For more information on the legal structure of a construction project, see Quick guide, Construction projects: the legal structure.
PLC Construction
Why do claims arise under a construction contract?
Construction projects rarely run entirely smoothly: additional works may be requested by the employer or become necessary when things are "discovered" on site; delays may mean the building takes longer to complete; or it may cost more than the parties originally contracted for.
Common claims include:
A contractor may have a claim against the employer relating to a delay or a change in the works.
A professional consultant may have a claim against the employer for non-payment of fees or breach of copyright.
The employer may have a claim against:
the contractor for a delay to the works or a defect in the works; and/or
the professional consultant for failing to properly design or supervise the works.
Top
What the contractor may claim from the employer
A contractor may claim against the employer for more time and money (loss and expense) and for the cost of changes to the works (as variations or as a quantum meruit).
A claim for an extension of time to the completion date
The parties usually agree a completion date in their contract. If not, the contractor should complete its works within a reasonable time.
Standard form contracts usually allow for the completion date to be adjusted, to award the contractor an extension of time. The contractor should comply with the contract procedure.
It is not always easy to work out what caused the delay and whose fault it was; sometimes there are competing causes of delay. If the contractor caused the delay, the employer may have a right to claim liquidated damages from the contractor.
A claim for loss and expense
A contractor often claims loss and expense at the same time as an extension of time. It is the "money" side of a contractor's claim for delay and disruption (that is, a claim for the cost of inefficient working and employing more resources).
Standard form contracts usually allow the contractor to claim for delayed or disrupted work. The contractor should comply with the contract procedure.
A contractor may roll-up all the unattributed costs and claim them from the employer as loss and expense. If the claim does not break down the sum claimed between the contractor's various complaints, it is called a "global claim" or, sometimes, a "total cost" claim.
Common heads of loss and expense claimed include:
prolongation costs;
finance charges;
loss of profits;
general disruption; and
wasted management time.
A claim for the cost of variations
Sometimes called additional work or extras, a contractor may claim for a variation when the employer changes the contractor's scope of work.
Standard form contracts usually include a clause that defines what a variation is and provide a procedure to value the variation. If so, the contractor should comply with that procedure.
Both parties may benefit from a clause permitting variations:
the employer can make changes so that it gets the building it wants; and
the contractor gets paid for providing extra or different work or materials.
Claiming for variations often gives rise to disputes over whether:
the additional work is outside the original scope of work; and/or
the person who ordered the work was authorised to do so.
A claim for payment under a quantum meruit
Under a quantum meruit claim, the contractor claims a reasonable sum for the work done and the materials it has supplied. The parties (or the courts) usually value a quantum meruit claim at a fair commercial rate.
A contractor cannot claim a quantum meruit if the parties have a contract to pay an agreed sum, but it will be relevant if the parties have:
not agreed a contract or not agreed all the terms, including the price for the work;
an agreement to pay a reasonable sum for the work done; or
agreed a scope of work under the original contract and the work falls outside that scope (and the parties did not have or did not use a variation procedure in the contract).
A contractor may claim a quantum meruit if it has worked under a letter of intent.
Top
What the employer may claim from the contractor
The employer may have a claim against the contractor because the works are of a poor quality or are defective, or because the project is delayed.
A claim for poor workmanship and/or defects in the works
Defective work frequently occurs in construction projects. Defects may range from de minimis items included within snagging lists at practical completion, to significant but undetected (or latent) problems. A defect is generally a breach of contract by the contractor, but could relate to design that the contractor did not carry out, in which case only a professional consultant or consultants might be liable.
Standard form contracts usually contain a defects liability clause that obliges the contractor to return to site, at its own cost, during the defects liability period or rectification period (normally six or 12 months) and remedy any defects that arise.
A contractor who is responsible for design and construction of the works may be liable for a defect that is caused by negligent design, by poor workmanship or by a mixture of both.
A claim for liquidated damages
A liquidated damages clause (sometimes called liquidated and ascertained damages or LADs) compensates the employer if the contractor completes its work late. It requires a contractor to pay the employer a pre-determined rate of damages that must be a genuine pre-estimate of the employer's loss.
A liquidated damages clause is a common feature of many standard form contracts. The employer must ensure that it meets any contractual notice requirements in the contract before it claims liquidated damages from the contractor.
The clause may take effect as an exhaustive remedy (that is, the clause may be the employer's only remedy for the contractor's delay).
The employer usually deducts or sets off the liquidated damages from sums it owes to the contractor.
Top
What the employer may claim against the professional consultant
On construction projects, professional consultants often act as the contract administrator (valuing and certifying the works) as well as undertaking a design role. Generally, on building contracts, the professional consultant administering the contract is an architect; on engineering contracts, it is usually an engineer. Occasionally, the employer may appoint a project manager or quantity surveyor to administer a contract.
Professional consultants should perform their services in accordance with the implied or express duty of care in their professional appointment.
The professional consultant may be liable to the employer for failing to:
Design the works in accordance with the professional appointment.
Supervise the works in accordance with the professional appointment.
Ensure the contractor built the works in accordance with the building contract.
Certify the works properly (that is, it is alleged the professional consultant was negligent in certifying the works).
An employer claims its losses caused by a breach of contract or the negligence of a professional consultant as general (unliquidated) damages.
Top
What the professional consultant may claim against the employer
If the employer fails to make payment, the professional consultant may claim for non-payment of fees. The parties may dispute whether a particular professional service was included in the fee agreed at the outset, or whether it was extra work.
The professional consultant will usually retain copyright in the design and its plans and drawings; the employer is typically granted a licence to use these. If the employer does not pay the professional consultant, the professional consultant may argue that the employer's use of the design is in breach of copyright.
Top
What are the differences on engineering projects?
Most engineering projects are procured on different forms of contracts to construction projects (such as FIDIC, NEC3, IChemE and IMechE), but many of the types of claims that could arise are the same.
Some key differences include:
Compensation events. Claims for time and money (or extensions of time and loss and expense) may be dealt with under a single mechanism.
Defects liability. The contractor's ongoing liability for defects may be limited, particularly if the employer can claim performance damages.
Limited variations. In contrast to construction projects, the employer may have a limited right to make changes to the project.
Notification requirements. These may include strict time limits and act as conditions precedent to a claim. If they are not met, the contractor may lose its right to bring a claim.
Performance damages. The employer may be able to claim liquidated damages for the contractor's failure to meet specified
PRATICAL COMPLETION
The contract administrator certifies practical completion when all the works described in the contract have been carried out. Practical completion is referred to as 'substantial completion' on some forms of contract.
Certifying practical completion has the effect of:
Releasing half of the retention (an amount retained from payments due to the contractor to ensure that they complete the works).
Ending the contractor's liability for liquidated damages (damages that become payable to the client in the event that the contractor breaches the contract - generally by failing to complete the works by the completion date).
Signifying the beginning of the defects liability period.
Documentation that should be issued to the client on certification of practical completion may include:
A draft building owner's manual.
A building user's guide.
The health and safety file.
The building log book.
A construction stage report.
Once practical completion is certified, the client takes possession of the works for occupation.
There is no absolute definition of practical completion, and case law is very complex. There is some debate about when practical completion can be certified and whether it can be certified where there are very minor (de minimis) items 'not affecting beneficial occupancy' that remain incomplete.
It is important to note that the defects liability period is not a chance to correct problems apparent at practical completion, it is a period during which the contractor may be recalled to rectify defects which appear. If there are defects apparent before practical completion, then these should be rectified before a certificate of practical completion is issued.
This can put the contract administrator in a difficult position, where both the contractor and the client are keen to issue the certificate (so that the building can be handed over) and yet defects (more than a de minimis) are apparent in the works. Issuing the certificate however could render the contract administrator liable for problems that this causes for example in the calculation of liquidated damages, the position in relation to performance bonds and the the release of retention when it is not certain that the works will be completed.
If the contract administrator is pressured to certify practical completion even though the works are not complete, they might consider informing the client in writing of the potential problems of doing so, obtaining written consent from the client to certify practical completion and obtaining agreement from the contractor that they will complete the works and rectify any defects. If the contract administrator is not confident about the potential problems, they may advise the client to seek legal advice.
On construction management contracts, a separate certificate of practical completion must be issued for each trade contract. Once all trade contracts (or all trade contracts for a particular section of the works) have been issued, the construction manager issues a certificate or project completion (or sectional completion). The same is true on management contracts, where each works contract must be certified individually.
Practical completion is not a term recognised in many recently developed contacts such as PPC 2000 and other partnering contracts which simply refer to 'completion'. This can put the contract administrator in a difficult position as to when the project becomes 'useable' by the client. Effectively, if the project reaches a stage when the intended use by the client, either immediate use, such as installing furniture or fitting-out (if it is a building project), or actual occupation by the end users, is possible safely and without affecting warranties etc then the project may be deemed 'complete'. The size and extent of the list of outstanding works and defects requiring rectification will be the measure on which the contract administrator judges whether completion has actually been achieved.
NB If practical completion is not certified by the most recently agreed completion date, then the contractor may be liable to pay liquidated and ascertained damages to the client. These are pre-determined damages set at the time that the contract is entered into, based on a calculation of the actual loss that the client is likely to incur if the contractor fails to meet the completion date. Some contracts require that a certificate of non-completion is issued as a pre-requisite to deducting liquidated and ascertained damages.
Certifying practical completion has the effect of:
Releasing half of the retention (an amount retained from payments due to the contractor to ensure that they complete the works).
Ending the contractor's liability for liquidated damages (damages that become payable to the client in the event that the contractor breaches the contract - generally by failing to complete the works by the completion date).
Signifying the beginning of the defects liability period.
Documentation that should be issued to the client on certification of practical completion may include:
A draft building owner's manual.
A building user's guide.
The health and safety file.
The building log book.
A construction stage report.
Once practical completion is certified, the client takes possession of the works for occupation.
There is no absolute definition of practical completion, and case law is very complex. There is some debate about when practical completion can be certified and whether it can be certified where there are very minor (de minimis) items 'not affecting beneficial occupancy' that remain incomplete.
It is important to note that the defects liability period is not a chance to correct problems apparent at practical completion, it is a period during which the contractor may be recalled to rectify defects which appear. If there are defects apparent before practical completion, then these should be rectified before a certificate of practical completion is issued.
This can put the contract administrator in a difficult position, where both the contractor and the client are keen to issue the certificate (so that the building can be handed over) and yet defects (more than a de minimis) are apparent in the works. Issuing the certificate however could render the contract administrator liable for problems that this causes for example in the calculation of liquidated damages, the position in relation to performance bonds and the the release of retention when it is not certain that the works will be completed.
If the contract administrator is pressured to certify practical completion even though the works are not complete, they might consider informing the client in writing of the potential problems of doing so, obtaining written consent from the client to certify practical completion and obtaining agreement from the contractor that they will complete the works and rectify any defects. If the contract administrator is not confident about the potential problems, they may advise the client to seek legal advice.
On construction management contracts, a separate certificate of practical completion must be issued for each trade contract. Once all trade contracts (or all trade contracts for a particular section of the works) have been issued, the construction manager issues a certificate or project completion (or sectional completion). The same is true on management contracts, where each works contract must be certified individually.
Practical completion is not a term recognised in many recently developed contacts such as PPC 2000 and other partnering contracts which simply refer to 'completion'. This can put the contract administrator in a difficult position as to when the project becomes 'useable' by the client. Effectively, if the project reaches a stage when the intended use by the client, either immediate use, such as installing furniture or fitting-out (if it is a building project), or actual occupation by the end users, is possible safely and without affecting warranties etc then the project may be deemed 'complete'. The size and extent of the list of outstanding works and defects requiring rectification will be the measure on which the contract administrator judges whether completion has actually been achieved.
NB If practical completion is not certified by the most recently agreed completion date, then the contractor may be liable to pay liquidated and ascertained damages to the client. These are pre-determined damages set at the time that the contract is entered into, based on a calculation of the actual loss that the client is likely to incur if the contractor fails to meet the completion date. Some contracts require that a certificate of non-completion is issued as a pre-requisite to deducting liquidated and ascertained damages.
profit and overhead
The Difference Between Overhead and Profit
If you want to be successful as a contractor or home builder, even if only on your personal home, you have to understand the difference between profit and overhead. They are not the same thing and should never be considered interchangeable.
In order to grow a construction company, monthly expenses must be paid and reserve accounts must be filled. Of course, making a profit is necessary too as a business without profit is not a smart business. When building your own home, you may not be as concerned about the word “profit” but make no mistake, what a professional would call profit, you will call savings. The money is still there, and it is up to you how you utilize it. Being able to balance these requirements comes from an understanding of profit and overhead and how they impact your bottom line.
Overhead is money used to pay everyone except for you. That is a pretty simple explanation but it serves the point. Examples of overhead expenses include insurance, specific rentals, attorney fees, cell phone, etc. This is a list that can grow and grow until you are not making any money at all, so be careful about what you include. I suggest you include the items you have to have as well as some long term planning accounts like attorney fees and other items used only on rare occasions.
I like the inclusion of the rainy day accounts because finding yourself in a subcontractor lawsuit with no money to pay an attorney is a nasty place to be. By having the account in place and contributing small amounts each week to the fund, the financial impact will be greatly reduced should such an occasion arise. Take a good look at your situation and decide what things are immediately necessary and what things might be a concern in the future. Of those potential line items, decide which ones need to be planned for and which can be funded, as necessary, at the last minute. The first two concepts, immediate use and planned potential items, make up your overhead column.
The old adage that profit and overhead for contractors should be 15% is not always correct. Although most people expect to see 15% profit and overhead in their construction contracts with general contractors, higher rates are not unheard of in specific situations. Find out what is appropriate and factor in the necessary money. For a homeowner, the same is true. Find out what the contractor fee would be for your job should you hire it out and include that money in your loan amount. As my mother used to say: “a penny saved is a penny earned.” Yup, in this case she is absolutely right!
Use an overhead calculation spreadsheet to start defining and estimating your overhead costs. Use the form as a template and expand or contract it to meet your specific needs. The most important thing is to realize that a “one size fits all” approach does not work in relation to overhead. Overhead of 7.5% to 10% are not unheard of. The profit line item will stay fairly consistent until you get into either very small jobs or very complicated jobs. In general, a rate of 7.5% for new construction and 10% for remodeling jobs is accepted. Once again, plan ahead and see what the job details are before you assign a profit number to the job.
Profit, as opposed to overhead, is used to pay the company and the owner. The first place the profit should go is to a company account that is separate from the expense account. If your profit stays in the same account as the overhead and accounts payable money, it will easily get absorbed into the cost of running your business. To avoid this, set up a separate account that manages company profit. As soon as you are paid by a client, transfer the appropriate amount of profit into this account and get it away from the nibbling teeth of your invoices!
For a homeowner, consider taking the 7.5% to 10% “profit” and separating it out into a contingency fund. It will be there if you need it, and if you don’t use it during the construction, you can use it to buy down the mortgage.
I prescribe to the belief that you must pay yourself first as a business owner. Most self employed people tell the story of never being paid because their employees, suppliers, and subcontractors eat all of their money before they get a chance to pay themselves. Two things are going on here. First, either they did not estimate the cost of the job properly or they are over budget. This is something to look into before bidding the next job. The second thing at play is the inability to risk paying your self first. It is detrimental to you personally, even if you aren’t running a construction business, because the money you are saving by contracting the home yourself needs to be considered money earned. Use it how you see fit, but don’t run it off paying overhead costs.
To take this a step further: take percentages of your profit or money saved and separate it out into more accounts. Have an account for long term savings, one for spending cash, one for gifting charitable organizations or causes and one for increasing your personal financial portfolio. At each payday, send 10% of your total salary payment to each of those accounts. The remaining funds should be used to pay for your personal expenses. If you cannot afford to move 10% into each account, transfer less, but always transfer something. The action of saving money and building a portfolio will have an emotional impact on you that will expand and create prosperity in your life.
To be clear, the account for spending cash is not for paying bills. It is your fun money to be spent on evenings out with the family, days at the amusement park, or other personal treats. You have plenty of money in your other accounts to cover expenses so create an account to help you have fun!
By planning ahead for expenses and creating accounts to fund them, you can create financial success within your business and/or project. In addition, by separating out your money into numerous accounts, you can better track it and ultimately pay yourself first. From those payments, you can begin to grow your financial portfolio while still having money for fun, charitable giving, and your monthly expenses all without stressing your immediate financial position. After all, owning a business or building a house can be stressful enough without adding the stress of chaotic money management. Take a straightforward and calculated approach to estimating, charging, and managing your profit and overhead and you will find success to be more relaxing in both the short and long run.
unilag calender
UNIVERSITY OF LAGOS
ACADEMIC CALENDAR FOR 2012/2013 SESSION
FIRST SEMESTER
Wed 22nd Aug – Wed 31st Oct 2012 Screening & Registration of Fresh students
Monday, 24th September – Sunday, 11th Nov., 2012 Registration of all returning students
(7 weeks)
Monday, 12th Nov. – Sunday, 25th November, 2012 Late Registration / Editing of registration
(2 weeks)
To be determined by DSA Returning students move into residence
To be determined by DSA Orientation programme for fresh students
Monday, 12th Nov., 2012 Lectures Begin
Friday, 15th Feb., 2013 Lectures End
(14 weeks)
Friday, 30th November, 2012 Matriculation Ceremony
Tuesday, 8th January, 2013 Convocation Lecture
Wednesday, 16th January, 2013 Convocation Ceremony
Thursday, 17th January, 2013 Convocation Ceremony
Monday, 4th March.-Saturday, 9th March, 2013 Lectures free week
(1 week)
Monday 28th January – Friday, 1st February, 2013 First Semester Foundation Examination
(1 week)
Monday, 11th March – Saturday, 23rd March 2013 Undergraduate Exams in all Faculties
(2 weeks)
Monday, 25th March– Thursday, 28th March, 2013 Examination in core courses in Faculty of
(1 week) Education
Saturday, 30th March, 2013 Students Depart
Monday, 1st April – Saturday, 13th April, 2013 First Semester Break
(2 weeks)
Thursday, 28th March, 2013 Consideration of Results by BCOS commences
Wednesday 24th April, 2013 Senate meeting for consideration of Results.
SECOND SEMESTER 2012/2013 SESSION
Monday, 15th April, 2013 Resumption
Monday, 1st April – Sunday, 28th April, 2013 Registration of students
(4 weeks)
Monday, 29th April – Sunday 12th May, 2013 Late Registration /Editing of Registration
(2 weeks)
Monday, 22nd April 2013 Lectures Begin
Friday, 26th July, 2013 Lectures End
(14 weeks)
Monday, 29th July – Friday, 2ndth August 2013 Lecture-Free Week
(1 week)
Monday, 17th June – Friday, 21st June 2013 Foundation Exams
(1 week)
Monday, 5th August – Friday, 16th Aug., 2013 Examination in all Faculties
(2 weeks)
Monday, 19th Aug. – Saturday, 24th Aug., 2013 Examination in all core courses in Faculty of Education
Saturday, 24th Aug., 2013 Students Depart/End of Session
Monday 26th Aug., 2013 DLI Residential programme commences
(6 weeks)
Saturday, 5th Oct. 2013 DLI students depart
Thursday, 26th Sept., 2013 Consideration of Results by BCOS commences
Wednesday, 30th Oct., 2013 Senate meeting for consideration of Results
Monday, 21st Oct., 2013 Proposed date of resumption, 2013/2014 session
(8 weeks holiday)
STATUTORY PROGRAMMES
2nd Wednesday of every month Faculty Board of Studies/Examiners
3rd Wednesday of every month Inaugural Lecture
Last Wednesday of every month Senate meeting
Two weeks after Examinations Uploading of Results
ACADEMIC CALENDAR FOR 2012/2013 SESSION
FIRST SEMESTER
Wed 22nd Aug – Wed 31st Oct 2012 Screening & Registration of Fresh students
Monday, 24th September – Sunday, 11th Nov., 2012 Registration of all returning students
(7 weeks)
Monday, 12th Nov. – Sunday, 25th November, 2012 Late Registration / Editing of registration
(2 weeks)
To be determined by DSA Returning students move into residence
To be determined by DSA Orientation programme for fresh students
Monday, 12th Nov., 2012 Lectures Begin
Friday, 15th Feb., 2013 Lectures End
(14 weeks)
Friday, 30th November, 2012 Matriculation Ceremony
Tuesday, 8th January, 2013 Convocation Lecture
Wednesday, 16th January, 2013 Convocation Ceremony
Thursday, 17th January, 2013 Convocation Ceremony
Monday, 4th March.-Saturday, 9th March, 2013 Lectures free week
(1 week)
Monday 28th January – Friday, 1st February, 2013 First Semester Foundation Examination
(1 week)
Monday, 11th March – Saturday, 23rd March 2013 Undergraduate Exams in all Faculties
(2 weeks)
Monday, 25th March– Thursday, 28th March, 2013 Examination in core courses in Faculty of
(1 week) Education
Saturday, 30th March, 2013 Students Depart
Monday, 1st April – Saturday, 13th April, 2013 First Semester Break
(2 weeks)
Thursday, 28th March, 2013 Consideration of Results by BCOS commences
Wednesday 24th April, 2013 Senate meeting for consideration of Results.
SECOND SEMESTER 2012/2013 SESSION
Monday, 15th April, 2013 Resumption
Monday, 1st April – Sunday, 28th April, 2013 Registration of students
(4 weeks)
Monday, 29th April – Sunday 12th May, 2013 Late Registration /Editing of Registration
(2 weeks)
Monday, 22nd April 2013 Lectures Begin
Friday, 26th July, 2013 Lectures End
(14 weeks)
Monday, 29th July – Friday, 2ndth August 2013 Lecture-Free Week
(1 week)
Monday, 17th June – Friday, 21st June 2013 Foundation Exams
(1 week)
Monday, 5th August – Friday, 16th Aug., 2013 Examination in all Faculties
(2 weeks)
Monday, 19th Aug. – Saturday, 24th Aug., 2013 Examination in all core courses in Faculty of Education
Saturday, 24th Aug., 2013 Students Depart/End of Session
Monday 26th Aug., 2013 DLI Residential programme commences
(6 weeks)
Saturday, 5th Oct. 2013 DLI students depart
Thursday, 26th Sept., 2013 Consideration of Results by BCOS commences
Wednesday, 30th Oct., 2013 Senate meeting for consideration of Results
Monday, 21st Oct., 2013 Proposed date of resumption, 2013/2014 session
(8 weeks holiday)
STATUTORY PROGRAMMES
2nd Wednesday of every month Faculty Board of Studies/Examiners
3rd Wednesday of every month Inaugural Lecture
Last Wednesday of every month Senate meeting
Two weeks after Examinations Uploading of Results
Terminologies associated with quantity surveying practice.
1. COST PLAN
Cost planning (ehow.com) is a key due diligence step in preparing for a construction project. Cost planning tells a property owner how much a proposed project will cost. Additionally, cost planning will tell when the expected expenses will most likely occur. This information is critical for obtaining project financing and for determining whether a project can be profitable. Without cost planning, property owners would enter blindly into construction projects and possibly into insolvency.
Cost planning typically involves two features. The first is an overall budget for the project. This is the total amount that the project is expected to cost. This amount is based on the current project scope and design and can be determined through various types of estimates. The second feature of cost planning is the allocation of costs over time. This involves predicting when along the project schedule costs will actually be incurred and paid.
Furthermore, cost plan (construction contract, huges; page 92) explains cost plan as a reaction to what is being produced by the designer i.e. the architect, services engineer, and structural engineer and so on. This are usually based on client needs and briefs, whatever the designer produces has a cost attached to it, so in these early stage cost planning can be said to be reactive.
Conclusively, according to (guidance notes on cost management in engineering construction projects) it briefly defined it as a cost model or plan of a proposed or anticipated expenditure phased over scheduled time periods.
2. CASH FLOW
Cash flow (guidance notes on cost management in engineering construction projects) stated it as projected cash balanced over a stated time period based in the net flow of actual or anticipated payments and receipts.
CASH FLOW (http://bivashsarker.hubpages.com/hub/Project-Management-Practices)deals with cash inflow by which money comes into the project and cash outflow by which money goes out of the project. Cash inflows are possible from 3 main areas.
• Receipts from client as per contract and works executed.
• Receipts from sale of good (mainly scrap).
• Funds raised in form of loans from financial institutions or other approved sources as working capital. Target shall be to keep funds raised in form of loans at minimum. Let us find out factors which contribute to a cash inflows and cash outflows in a project so that all persons concerned can at least attempt to keep the target. at any point of time, a project should have following condition to consider it as ‘project with healthy cashflow’.funds arranged as loans ≥ (cash out flows - receipts from client). Receipt from sale of goods has not been considered as its contribution towards cash inflow is meagre with respect to receipts from client. To keep 'fund arranged as loan' to minimum, 'receipts from client' should be on higher side and 'cash outflows' shall be on lower side at all times.
3. Financial Statements
Definition: Financial statements are a collection of reports about a project financial results and condition. They are useful for the following reasons:
• To determine the ability of a project to generate cash, and the sources and uses of that cash.
• To determine whether a project has the capability to pay back its debts.
• To track financial results on a trend line to spot any looming profitability issues.
• To derive financial ratios from the statements that can indicate the condition of the project.
• To investigate the details of certain business transactions, as outlined in the disclosures that accompany the statements.
The standard contents of a set of financial statements are:
• Balance sheet. Shows the entity's assets, liabilities, and stockholders' equity as of the report date.
• Income statement. Shows the results of the entity's operations and financial activities for the reporting period.
• Statement of cash flows. Shows changes in the entity's cash flows during the reporting period.
• Supplementary notes. Includes explanations of various activities, additional detail on some accounts,
4. Amortization
Amortization is payments of debt in equal instalments of principal and interest, rather than interest only payments. The deduction of capital expenses over a specific period of time (usually over the asset's life). More specifically, this method measures the consumption of the value of intangible assets, such as a patent or a copyright.
5. Repayment
The act of paying back money previously borrowed from a lender. Repayment usually takes the form of periodic payments that normally include part principal plus interest in each payment. The other common method of repayment is a lump sum with interest at maturity. Failure to keep up with repayments of debt can force you to declare bankruptcy and severely affect your credit rating. Before declaring bankruptcy, most people should explore every alternative such as earning additional income, refinancing and negotiating with creditors.
6. Fluctuations
It entails change in price of goods, materials and personnel variation during the contract period. Price guides are provided which take many month to prepare, published ahead of the year. So in periods of high inflation they can be very quickly out of date. So there is chance for price changes even at normal condition.
Price fluctuation
Time taken for award of contract
Delay in awarding contract causes many problems in the implementation stage in the following matter. Price fluctuation becomes very high creating lot of uncertainty, as the base index is generally calculated 28 days before the bid submission when there is a delay in awarding the contract on the first month after commencements of the work there is a fluctuation of price accounted.
Material
When there is sudden change in obtaining the materials; the cost of the project goes up.
Labour
Availability of skill trained Labour is a problem for the construction industry in Sri Lanka ,hence the contractor had to mobilize skill labour from faraway places & pay high salaries provide other facilities like lodging, food … etc which increase the Labour rate.
7. Preliminary
This is work deemed to be done before any building construction can proceed. They are items that facilitate progress of work on site. Construction projects are priced using a bill of quantities--a detailed description of the items needed to finish the product and their costs. The preliminaries of a bill of quantities are the section that provides a description of the project, the contractor's general obligations, general facilities, and setup and running costs. In the United States, the term "site overheads" is used instead of "preliminaries." In a bill of quantities, the preliminary costs are generally divided among initial cots, recurring cost and final costs. Initial and final costs are one-off expenses, while recurring costs continue throughout the life of the project. If work is disrupted for reasons out of the contractor's control, recurring costs are often used to calculate compensation for the extension on the contract period.
8. Contingencies
Contingency allowance is provided in construction contracts to allow for miscellaneous unforeseen costs which cannot be classified under any other head, but is necessary for successful completion of the project. In construction contracts usually 3 to 5 percent of contract value is provided as contingency allowance. An example of such unforeseen cost is price escalation. If there is a saving in the contingency allowance, then this amount can be used for execution of extra items of work. That means when variation claims are raised, it is common that the employer will cancel the contingency allowance against variation claims, and pay the contractor.
9. Provisional sum
According to section 10.3 of the standard method of measurement 3(BESMM3) it explains provisional sum for defined work as the a sum provided for work which is not completely designed but for which the following information shall be provided
a) The nature and construction of work
b) A statement of how and where the work is fixed to the building and what other work is fixed thereto
c) A quantity or quantities which indicate the scope and extent of the work
d) Any specific limitation and the identified in section A35.
Prior to the above explanation the contractor will be deemed to make any allowance in programming, planning and pricing preliminaries
While for undefined work the listed information are not provided and no allowance is deemed to be provided by the contractor
Furthermore, they are used when work has not been finalized or for cost which is unknown, at the time the bills are prepared they may be simply be contingency sums.
10. Prime cost
Prime cost (PC) sums are used for work under the building contract which is carried out under the direction of the main contractor by certain other persons, namely, norminated sub-contractor, nominated suppliers and statutory authorities.
Prime cost generally is an allowance for articles to be provided by the contractor, of which price cannot be fixed at the time of tender. It refers only to the supply of materials and not to the carrying out of works. A specific amount will be earmarked in the BOQ for execution of such items. Examples are fixtures and finishing works like ceramic tiles, sanitary fittings, water supply fittings etc. that can be decided only at the time of execution. Contractor is not entitled for any profit on prime cost items, but sometimes the cost of carriage will be provided if specified in contract. The FIDIC Conditions of Contract do not mention about prime cost.
Definition of Prime cost by ICE (Institution of Civil Engineers, Great Britain)
"Prime Cost (PC) Item" means an item in the Contract which contains (either wholly or in part) a sum referred to as Prime Cost (PC) which will be used for the execution of work or the supply of goods materials or services for the Works.
11.Nominated sub-contractor
(JCT) he is a trader, specialist appointed by the client; therefore there is only agreement between the parties as regard to payments and other conditions. In theory, at least, the appointment of a domestic contractor is default by the client or her consultants.
Conclusively, a Nominated subcontractor is chosen by the architect, client or engineer to carry out certain aspects of the work. They are appointed on the expenditure of a provisional sum or prime cost sum included in the contract bills. The nominated subcontractor enters into a contract with the main contractor but there may be a collateral warranty between the nominated subcontractor and the client. The main contractor has no responsibility to carry our work that is intended to be carried out by a nominated subcontractor. Nomination is not possible under the JCT 2005 Standard Building Contracts or the Engineering and Construction Contract. The main contractor is required to provide the general attendances for the subcontractor; any special attendances are the subcontractors’ responsibility. The main contractor will provide a profit margin for such attendance. A nominated sub-contractor is one that is selected by the client to carry out an element of the works. Nominated sub-contractors are imposed upon the main contractor after the main contractor has been appointed. The mechanism for nominating is an instruction in relation to a prime cost sum to which a main contractor is entitled to add its mark up and attendance costs. It allows the client to have direct separate negotiations with major suppliers of goods or services and feed their appointment and design input into the contract after works by the main contractor have commenced.
"Nominated Sub-contractor" means any merchant tradesman specialist or other person firm or company nominated in accordance with the Contract to be employed by the Contractor for the execution of work or supply of goods materials or services for which a Prime Cost has been inserted in the Contract or ordered by the Engineer to be employed by the Contractor to execute work or supply goods materials or services under a Provisional Sum.(ICE Conditions of Contract Definition)
12.Domestic sub-contractor
A Domestic Sub-contractor is selected and engaged directly by the main contractor to carry out a particular trade; this will mainly include standard trades such as bricklayers, roofers, ground workers, plumbers, electrical and plasterers. They may be labour only or supply and fix. In all cases they must be approved by the architect under JCT 2005 Standard Building Contracts. The architect has the full authority to reject any subcontractor requested by the contractor. The contract does not recognise the main contractors own subcontractors, any work carried out by these is taken as if it were carried out by the main contractor.
In the word there is a bond between him and the main contractor as regard to payment and other conditions. A domestic sub-contractor is any sub-contractor, other than a nominated-sub contractor, that the main contractor sub-contracts to carry out part of the works. The work of the sub-contractor is the responsibility of the main contractor as far as the contract between the main contractor and the client is concerned.
A sub-contractor can be considered domestic if:
• They were freely selected by the contractor.
13. Variations
JCT80; the basic definition includes any ‘alteration or modification of the design, quality or quantity of the work as shown on the contract drawings and described by or referred to in the contract bills.; the clauses clarifies this further by stating that such alteration or modification includes additions, omission or substitution i.e. variation to completed work item. These also go to the material and goods used for work.
ICE 6;it is the addition ,omission ,substitution ,alteration ,changes in quality, form, character, kind, position, dimension, level or line, and changes in any specific sequence, method or timing of construction .this list, which contain a number of synonyms, means in effect the engineer may issue variation about almost anything. The clause also makes it clear also that a variation order need not be issued merely foe the purposes of altering quantities in the bills, this is because the bills are not intended as a full description of the work, but only as a mechanism for selecting the contractor.
Variations to the scope of construction works are necessary because no project is impeccable and changes are required to meet unforeseen circumstances or changed requirements. Thus, variation can be in the form of additions, omissions or substitutions.
14. Suppliers
Suppliers are responsible in providing construction companies with the needed materials to establish their projects. Suppliers usually serve as middleman. These professionals act as liaison between the builders and the manufacturers. Like any other construction jobs, it is important that you will supply the suppliers on the right time. Most of the construction projects available out there should be done in a specific period of time. Any delay in the delivery of the supplies might cause problems between the project owner and the other construction professionals.
15.Preliminary
Day work. Day work is the working hours of trader, workers, and labours in a day. This is the work range achieved in a day by a particular worker. It is used to arrive at a prime cost day work rate. The latter are a guide for employers showing them how to work out the real cost of employment so that it can be factored into quotes for work.
They show the workings out for these calculations based on application of the current working rule agreement and pay rates. However, they do not cover other costs such as workers travel or accommodation, and do not cover any of the non employment costs that employers need to factor into quotes for work such as administration, supervision, materials etc.
Time related work. It is work done for a particular item of work of which it is to be considered as proportional to the length of time taken to execute the work.
Value related work.It is the work as related to the intended method of executing the works, the costs of which are not to be considered as proportional to the quantities of the other items and for which he has not allowed in the rates and price for the other items
Builders work. Builder's Work is usually an ancillary item connected with other work, for providing MINOR building work; for example a description "builder's work in connection with window installation" might include forming an opening in a wall, fixing a lintel, and making good the wall faces after installation of the window unit.
In respect of service building example, if a building is required I would expect it to be within the performance specification for the design and build project. If a building is not specified, the D&B bidder/contractor might offer entirely weather proof equipment.
Also in mechanical/electrical services builder works may include chiselling the wall, making good of the surface and all element in the m section of the BESMM3.
Programme of work; Programmes of work which show the sequence of activities are common in the construction industry, and their importance is growing rapidly. Managers, engineers, quantity surveyors and site managers now need to be able to read and interpret programmes as much as construction drawings. But the role of programmes is still unclear.
16. Value added tax
VAT is a tax on consumer spending. It is collected by VAT-registered traders on their supplies of goods and services affected within the State, for consideration, to their customers.
17. Withholding tax
It is a tax that is withheld from income payments for building and construction activities and consulting services. The person required to withhold may be the service recipient in some cases and in other cases it will be the service provider. The status of the service recipient determines who is responsible for withholding the tax. The service recipient is the party who pays and the service provider is the party who receives payment for the building and construction activities or consulting services.
18.Materials on site.
These include all type of appropriate and deemed supplied goods or services that are pending for use on an incumbent construction process within the hoarded site vicinity. Clause 4.16.1.2 of the JCT Form requires the inclusion in the amount of an interim certificate of materials and goods delivered to the site for incorporation in the Works. In order to value them, the surveyor will need to be satisfied that the materials and goods are actually on the site and to ascertain approximately how much of each material or good there is. It is not necessary to know the exact quantities because by the time the next valuation is done, most or all of the materials will have been incorporated into finished work which will then be valued as such.
19.Material offsite
The JCT Form includes a provision in clauses 4.16.1.3 and 4.17for the value of materials and goods intended for the Works but not yet delivered to the site to be included where certain criteria have been met. These include all type of appropriate and deemed supplied goods or services that are pending for use on an incumbent construction process outside the hoarded site vicinity. This is at the discretion of the main contractor. The architect and the client are also aware of the location.
20. Progress of work.
This is a report of the millstones attainable by a main contractor for a given project. It includes photograph. This can be used to prepare a work in progress.
21. Architect instruction
Construction contracts generally give the contract administrator the power to issue instructions to the contractor. These instructions can be called ‘contract administrator’s instructions’ or ‘architect’s instructions’. We have used the terms ‘architect’ and ‘architect’s instruction’ below, but they could easily be replaced with ‘contract administrator’ and ‘contract administrator’s instruction’.
Broadly, Instructions may be given:
• To vary the works.
• To postpone the works.
• To remedy workmanship, goods or materials which are no in accordance with the contract.
• To sanction a variation made by the contractor.
• In relation to the expenditure of provisional sums.
• To open up work for inspection.
• To carry out tests.
• To exclude persons from the site.
22.Claims
Construction projects rarely run entirely smoothly: additional works may be requested by the employer or become necessary when things are "discovered" on site; delays may mean the building takes longer to complete; or it may cost more than the parties originally contracted for.
Common claims include:
• A contractor may have a claim against the employer relating to a delay or a change in the works.
• A professional consultant may have a claim against the employer for non-payment of fees or breach of copyright.
• The employer may have a claim against:
o the contractor for a delay to the works or a defect in the works; and/or
o The professional consultant for failing to properly design or supervise the works.
What the contractor may claim from the employer
A contractor may claim against the employer for more time and money (loss and expense) and for the cost of changes to the works (as variations or as a quantum meruit).
A claim for an extension of time to the completion date
• The parties usually agree a completion date in their contract. If not, the contractor should complete its works within a reasonable time.
• Standard form contracts usually allow for the completion date to be adjusted, to award the contractor an extension of time. The contractor should comply with the contract procedure.
• It is not always easy to work out what caused the delay and whose fault it was; sometimes there are competing causes of delay. If the contractor caused the delay, the employer may have a right to claim liquidated damages from the contractor.
A claim for loss and expense
• A contractor often claims loss and expense at the same time as an extension of time. It is the "money" side of a contractor's claim for delay and disruption (that is, a claim for the cost of inefficient working and employing more resources).
• Standard form contracts usually allow the contractor to claim for delayed or disrupted work. The contractor should comply with the contract procedure.
• A contractor may roll-up all the unattributed costs and claim them from the employer as loss and expense. If the claim does not break down the sum claimed between the contractor's various complaints, it is called a "global claim" or, sometimes, a "total cost" claim.
• Common heads of loss and expense claimed include:
o prolongation costs;
o finance charges;
o loss of profits;
o general disruption; and
o Wasted management time.
A claim for the cost of variations
• Sometimes called additional work or extras, a contractor may claim for a variation when the employer changes the contractor's scope of work.
• Standard form contracts usually include a clause that defines what a variation is and provide a procedure to value the variation. If so, the contractor should comply with that procedure.
• Both parties may benefit from a clause permitting variations:
o the employer can make changes so that it gets the building it wants; and
o The contractor gets paid for providing extra or different work or materials.
• Claiming for variations often gives rise to disputes over whether:
o the additional work is outside the original scope of work; and/or
o The person who ordered the work was authorised to do so.
A claim for payment under a quantum meruit
• Under a quantum meruit claim, the contractor claims a reasonable sum for the work done and the materials it has supplied. The parties (or the courts) usually value a quantum meruit claim at a fair commercial rate.
• A contractor cannot claim a quantum meruit if the parties have a contract to pay an agreed sum, but it will be relevant if the parties have:
o not agreed a contract or not agreed all the terms, including the price for the work;
o an agreement to pay a reasonable sum for the work done; or
o Agreed a scope of work under the original contract and the work falls outside that scope (and the parties did not have or did not use a variation procedure in the contract).
• A contractor may claim a quantum meruit if it has worked under a letter of intent.
What the employer may claim from the contractor
The employer may have a claim against the contractor because the works are of a poor quality or are defective, or because the project is delayed.
A claim for poor workmanship and/or defects in the works
• Defective work frequently occurs in construction projects. Defects may range from de minimis items included within snagging lists at practical completion, to significant but undetected (or latent) problems. A defect is generally a breach of contract by the contractor, but could relate to design that the contractor did not carry out, in which case only a professional consultant or consultants might be liable.
• Standard form contracts usually contain a defects liability clause that obliges the contractor to return to site, at its own cost, during the defects liability period or rectification period (normally six or 12 months) and remedy any defects that arise.
• A contractor who is responsible for design and construction of the works may be liable for a defect that is caused by negligent design, by poor workmanship or by a mixture of both.
A claim for liquidated damages
• A liquidated damages clause (sometimes called liquidated and ascertained damages or LADs) compensates the employer if the contractor completes its work late. It requires a contractor to pay the employer a pre-determined rate of damages that must be a genuine pre-estimate of the employer's loss.
• A liquidated damages clause is a common feature of many standard form contracts. The employer must ensure that it meets any contractual notice requirements in the contract before it claims liquidated damages from the contractor.
• The clause may take effect as an exhaustive remedy (that is, the clause may be the employer's only remedy for the contractor's delay).
• The employer usually deducts or sets off the liquidated damages from sums it owes to the contractor.
What the employer may claim against the professional consultant
On construction projects, professional consultants often act as the contract administrator (valuing and certifying the works) as well as undertaking a design role. Generally, on building contracts, the professional consultant administering the contract is an architect; on engineering contracts, it is usually an engineer. Occasionally, the employer may appoint a project manager or quantity surveyor to administer a contract.
Professional consultants should perform their services in accordance with the implied or express duty of care in their professional appointment.
The professional consultant may be liable to the employer for failing to:
• Design the works in accordance with the professional appointment.
• Supervise the works in accordance with the professional appointment.
• Ensure the contractor built the works in accordance with the building contract.
• Certify the works properly (that is, it is alleged the professional consultant was negligent in certifying the works).
An employer claims its losses caused by a breach of contract or the negligence of a professional consultant as general (unliquidated) damages.
What the professional consultant may claim against the employer
• If the employer fails to make payment, the professional consultant may claim for non-payment of fees. The parties may dispute whether a particular professional service was included in the fee agreed at the outset, or whether it was extra work.
• The professional consultant will usually retain copyright in the design and its plans and drawings; the employer is typically granted a licence to use these. If the employer does not pay the professional consultant, the professional consultant may argue that the employer's use of the design is in breach of copyright.
23. Extension of time
Many construction contracts allow the construction period to be extended where there are delays that are not the contractor's fault. Some contracts allow an extension of time to be granted whether or not the completion date is likely to be affected by the delay, whereas others only allow an extension of time if the delay is likely to affect the completion date.
When it becomes reasonably apparent that there is a delay, or that there is likely to be a delay that could merit an extension of time, the contractor gives written notice to the contract administrator identifying the relevant event that has caused the delay. If the contract administrator accepts that the delay was caused by a relevant event, then they may grant an extension of time and the completion date is adjusted.
Relevant events may include:
• Variations.
• Exceptionally adverse weather.
• Civil commotion or terrorism.
• Failure to provide information.
• Delay on the part of a nominated sub-contractor.
• Statutory undertaker’s work.
• Delay in giving the contractor possession of the site.
• Force majeure (such as an epidemic or an 'act of God').
• Loss from a specified peril such as flood.
• The supply of materials and goods by the client.
• Strikes.
• Changes in statutory requirements.
• Delays in receiving permissions that the contractor has taken reasonable steps to avoid.
The contractor is required to prevent or mitigate the delay and any resulting loss, even where the fault is not their own.
Assessing claims for an extension of time can be complicated and controversial. There may be multiple or concurrent delays, some of which are the contractor's fault and some not. Crucial in assessing applications for extension of time is the quality of the information provided and records available.
The contract administrator may review extensions of time after practical completion and further adjust the completion date.
Mechanisms allowing extensions of time are not simply for the contractor's benefit. If there was no such mechanism and a delay occurred which was not the contractor’s fault, then the contractor would no longer be required to complete the works by the completion date and would only then have to complete the works in a 'reasonable' time. The client would lose any right to liquidated damages.
Claims for extension of time can run alongside claims for loss and expense however, one need not necessarily lead to the other.
Where extensions of time are caused solely by the action of the client or their agents, the contractor is entitled to reimbursement of the running costs of their preliminaries, such as staff costs and plant hire. This is reasonably easy to calculate. More subjective and contentious are claims for disruption and uneconomic working.
Some other considerations when assessing claims for extensions of time and/or loss and expense include:
• All claims should be judged against the progress of the works and not the programme.
• There are many occasions where contractors contribute to delay themselves by their performance during design periods, when producing drawings, mock ups and samples or in inter-facing with sub-contractors.
• Successful claims must demonstrate the link between the breach (cause) and the delay.
• Loss of profit claims can be challenged since there is an onus on the contractor to demonstrate it was prevented from making a profit elsewhere. Profits made from the variation account should be offset against any figure put forward.
• Claims for finance charges must show that the contractor operated under negative cash flow and was forced to borrow capital. Furthermore notice of such circumstances has to be given at the time of the client’s breach.
• Supplemental and wrap-up agreements previously agreed by both parties can weaken the contractor’s final entitlement.
24 Final account
final account is the process of calculating and agreeing any adjustments to the contract sum (the amount originally set out in the contract to be paid to the contractor for completion of the works) so that the amount of the final payment can be determined. The amount of the final payment is then set out in the final certificate (or final statement). It is possible for the final certificate to show that money is owed to the client, rather than due to the contractor.
Construction contracts may in fact not require the preparation of a final account, although they generally do require the contractor to provide all documents necessary for the adjustment of the contract sum within a specified time, and set out the time scale for and consequences of issuing the final certificate.
The contract sum may need to be adjusted for a number of reasons, including:
• Variations.
• Fluctuations.
• Prime cost sums.
• Provisional sums.
• Payments to nominated sub-contractors or nominated suppliers.
• Statutory fees.
• Payments relating to the opening-up and testing of the works.
• Loss and expense.
• Liquidated and ascertained damages.
• Contra claims imposed as a result of the contractor's operations (such as a third-party claim resulting from contractor negligence or contractual breach, for example, flooding a neighbour's property).
• The release of any remaining retention.
Agreeing the final account can be a complicated, time consuming and adversarial process, often resulting in disputes. The process can be made easier if adjustments to the contract sum are agreed as the project progresses rather than saving them up for the end. It is also beneficial if the client's quantity surveyor and the contractor's quantity surveyor work together on drafts of the final account before agreement it sought. It is preferable that a draft copy of the final account is signed off by the contractor as an 'in full and final settlement' prior to issue.
Agreement of the final account will allow the contract administrator to issue the final certificate. The final certificate is conclusive that all patent defects have been remedied, all adjustments to the contract sum have been agreed and all claims settled. Latent defects may still become apparent after completion of the contract and these may give rise to action for damages, for breach of contract or negligence.
Where proceedings have begun in relation to a dispute, the conclusiveness of the final certificate is subject to the findings of those proceedings.
In addition, the final certificate itself can be disputed (usually within 28 days). Adjudication, arbitration or other dispute resolution procedures may then be necessary to resolve the dispute. The final certificate is then only conclusive in relation to matters that are not disputed.
25. Attendance
is the main contractor’s mark up for specific services it has to provide for individual suppliers or sub-contractors. This might include items such as material handling, scaffolding and rubbish clearance.
Attendance can be ‘general’ or ‘special’.
General attendance is the description of main contractor attendance available site wide to all contractors/subcontractors such as:
• Welfare facilities.
• External scaffolding.
• Temporary power and lighting.
• Platform and passenger hoists.
• Tower crane lifts by prior arrangement.
• Site security.
• Waste disposal.
Special attendance is specific to a particular contractor/subcontractor if it requests it to be provided by the main contractor such as:
• Special hoisting.
• Builders work such as a concrete plinth.
• Special scaffolding.
It is important to establish within the contract documents whether items that the sub-contractor will require will constitute attendances that will be provided by the main contractor, or whether they will provide them themselves (such as their own specialist equipment).
Attendance should not be confused with general site preliminaries or builder’s work in connection with mechanical and electrical services. These items are separately priced.
26.Practical completion
The contract administrator certifies practical completion when all the works described in the contract have been carried out. Practical completion is referred to as 'substantial completion' on some forms of contract.
Certifying practical completion has the effect of:
• Releasing half of the retention (an amount retained from payments due to the contractor to ensure that they complete the works).
• Ending the contractor's liability for liquidated damages (damages that become payable to the client in the event that the contractor breaches the contract - generally by failing to complete the works by the completion date).
• Signifying the beginning of the defects liability period.
Documentation that should be issued to the client on certification of practical completion may include:
• A draft building owner's manual.
• A building user's guide.
• The health and safety file.
• The building log book.
• A construction stage report.
Once practical completion is certified, the client takes possession of the works for occupation.
There is no absolute definition of practical completion, and case law is very complex. There is some debate about when practical completion can be certified and whether it can be certified where there are very minor (de minimis) items 'not affecting beneficial occupancy' that remain incomplete.
It is important to note that the defects liability period is not a chance to correct problems apparent at practical completion; it is a period during which the contractor may be recalled to rectify defects which appear. If there are defects apparent before practical completion, then these should be rectified before a certificate of practical completion is issued.
This can put the contract administrator in a difficult position, where both the contractor and the client are keen to issue the certificate (so that the building can be handed over) and yet defects (more than a de minimis) are apparent in the works. Issuing the certificate however could render the contract administrator liable for problems that this causes for example in the calculation of liquidated damages, the position in relation to performance bonds and the release of retention when it is not certain that the works will be completed.
If the contract administrator is pressured to certify practical completion even though the works are not complete, they might consider informing the client in writing of the potential problems of doing so, obtaining written consent from the client to certify practical completion and obtaining agreement from the contractor that they will complete the works and rectify any defects. If the contract administrator is not confident about the potential problems, they may advise the client to seek legal advice.
On construction management contracts, a separate certificate of practical completion must be issued for each trade contract. Once all trade contracts (or all trade contracts for a particular section of the works) have been issued, the construction manager issues a certificate or project completion (or sectional completion). The same is true on management contracts, where each works contract must be certified individually.
Practical completion is not a term recognised in many recently developed contacts such as PPC 2000 and other partnering contracts which simply refer to 'completion'. This can put the contract administrator in a difficult position as to when the project becomes 'useable' by the client. Effectively, if the project reaches a stage when the intended use by the client, either immediate use, such as installing furniture or fitting-out (if it is a building project), or actual occupation by the end users, is possible safely and without affecting warranties etc then the project may be deemed 'complete'. The size and extent of the list of outstanding works and defects requiring rectification will be the measure on which the contract administrator judges whether completion has actually been achieved.
NB If practical completion is not certified by the most recently agreed completion date, then the contractor may be liable to pay liquidated and ascertained damages to the client. These are pre-determined damages set at the time that the contract is entered into, based on a calculation of the actual loss that the client is likely to incur if the contractor fails to meet the completion date. Some contracts require that a certificate of non-completion is issued as a pre-requisite to deducting liquidated and ascertained damages.
27. Adjustment to measurement
This is amendment to work section during the taking off process. After the overall section has been measured the necessary adjustment to this section is the adjustment to measurement.
ROLES PERFORMED BY VARIOUS PARTIES TO CONSTRUCTION PROJECT
The client
• Working with the Project Manager and other members of the program team to decide specifically what you want to do. Establishing your program for the project is the first and most basic step. If the program is not clear or not agreed upon, the project cannot proceed.
• Attending design meetings with the Project Manager, outside consultants and other parties to facilitate program, design, and budget decision-making. These meetings may occur as often as weekly during the early design phases on major projects.
• Working with the Project Manager to develop a schedule for the project.
• Providing prompt answers to questions related to the program requirements and the way in which the occupants function. The level of detail required increases as the design progresses. Whenever possible, provide program and other technical requirements in writing.
• the Project Manager.
The Consultants
Architects
The responsibilities of an Architect are many and varied during the construction process. When construction administration is part of the contract, the architect's ability to help create a successful project continues after the planning, design and construction documents are complete. All too frequently, the Architect-Owner relationship is terminated on completion of the construction documents. Some contractors wish to remove the architect from their operation, viewing their presence as both a nuisance and an unnecessary expense. However, an Architect has several critical roles yet to play during construction.
Performance Evaluation
It is up to the Architect to observe construction to ensure, through regular inspection, that the site work, when complete will meet the specifications of the construction documents. While the architects' scrutiny might appear to hinder progress, it will ultimately benefit all parties and the success of the project to arrange regular site reviews. The Architect should submit written evaluations of work at regular intervals during construction. By doing so, the contractor avoids any plan deviation which could become a liability should problems arise in the future.
Deviation and Adjustment
The Architect must submit modifications made to the design of a project during construction to the Contractor. These changes often occur to adapt a project to real-life site conditions, correct errors and remedy omissions to the construction documents. Departures from construction documents that are discovered after their finalization should be brought to the attention of the owner along with any necessary scheduling adjustments.
Costs
During design development, the Architect will usually provide an estimate for the cost of work. This estimate, however, is a target and is likely to change during construction. As the cost requirements change, it is the responsibility of the Architect to update and refine cost estimates and share that information with the Contractor and owner. Estimates should always take into account contingencies and potential price escalation. Should the cost requirements reach budgetary limits, it is the architect's duty to recommend alternative solutions to resolve any variations to the original budget.
Site Assessment
At an agreed upon time, after the completion of a project, the Architect is responsible for conducting an assessment of the site for the owner. Operations and performance of the facility should be considered and the architect should make recommendations for maintenance and improvement if any are required. Any deficiencies in construction are to be addressed by the contractor, making this assessment essential for the owner. Additionally, liability for any substandard work may fall in part to the architect, if the problem is in the design, highlighting the importance of the architect's presence during construction.
It is short sighted and creates added risk for all parties when the Architect has no contracted responsibilities during construction.
Quantity surveyors
Quantity Surveyors are involved at various stages of the construction process, typically prior to construction, during construction and following completion of the works.
Quantity Surveyors work with accountants, architects, engineers, builders, building owners, developers, financiers, government, insurance underwriters, loss adjusters, solicitors and subcontractors. The Quantity Surveyor’s detailed knowledge of construction costs allows them to perform the following tasks independently of whether they are working for the Client or the Contractor:
Prior to Construction:
• Preparation of Feasibility Studies
• Estimating to define project budgets
• Analysis of the effect of design changes on the project budget
• Cost planning to refine the budget as the design documents develop
• Preparation of Bills of Quantities to assist in the tender process
During Construction:
• Provision of cost control services during construction
• Assessment of the contractor’s progress claims
• Assessment of variation and delay claims
• Procurement of subcontractors and labour to carry out specialist trade works
• Negotiation and settlement of accounts
• Monthly forecasting and cost reporting
• Monthly negotiation and agreement of payments for works carried out
Post Construction:
• Determination of the final project cost
• Preparation of tax depreciation reports for investors and property owners
• Expert witness reports to assist in the settlement of building disputes
Structural and civil engineer
Civil Engineers are involved in the planning, designing, construction and maintenance of physical projects such as buildings, bridges, roads, canals, dams, pipelines, subdivisions, airports, water systems, and many other types of facilities. Their work is not limited to planning and designing, they also prepare property descriptions, deeds, final cost estimates and right-of-way maps.
Civil Engineers also visit fields mostly for surveying, site investigation, or construction inspection or supervision. They may also be involved in laboratory testing for the condition of soil and construction materials. Structural engineers specialize in the engineering of bridges, buildings, pipelines, industrial structures, or special mechanical structures such as aircraft or vehicles. Like civil engineers, structure engineers also make field visits mainly to check whether the work being done is according to the specifications or not. They also inspect existing structures that may need repair or replacement.
The role of structural and civil engineers in building and construction is to improve the environment we live in by designing and creating projects that provide safety to the general public since roads, bridges, buildings, etc are used by the masses worldwide. Many engineers use computer aided design and drawing facilities to provide high quality of service in a timely manner.
Mechanical engineer
Role of mechanical engineer in construction is to do design calculations, drawings, and do all the mechanical work in proper way
Definition and constituent of contract bill
The Bills of Quantities referred to in the First recital which have been priced by the Contractor and signed by or on behalf of the Parties to this Contract.
(JCT Conditions of Contract Definition)
The Construction Contracts Bill is a piece of legislation aimed at improving the process of payments within the construction industry. It seeks to remove the possibility of payments being withheld for extended periods of time.
The explanatory memorandum for the Bill describes the legislation as follows.
"The main purpose of this Bill is to provide for a mechanism whereby prior notice of an intention to withhold sums from payments otherwise due must be given. Otherwise, payments must be made in full and/or the payee may suspend the provision of works and/or services under the construction contract until payment is made in full. This provision is proposed in ease of persons along the chain in the construction sector who may suffer unduly where an entity under a superior contract would find itself withholding payment unilaterally without cause. This would bear unfairly upon the payee or others dependent upon the payee. Ideally this measure would be linked to wider provision in respect of construction contracts including a more rapid and effective means of dispute settlement. However, that could be considered at a later point in time."
Mechanical drawings
A mechanical drawing is defined as a scaled illustration of a subject machine or mechanical part, or construction drawing of a fixture, product, or furnishing. It is a precision drawing, produced with the help of instruments, such as compasses, triangles, T-squares, etc., on a drafting board, or entirely in a Computer Aided Drafting (CAD) program.
Electrical drawings
An electrical drawing, is a type of technical drawing that shows information about power, lighting, and communication for an engineering or architectural project. Any electrical working drawing consists of "lines, symbols, dimensions, and notations to accurately convey engineering’s design to the workers, who install the electrical system on the job
Structural drawing
The design and working drawings for structures such as buildings, bridges, dams, tanks, and highways
Shop drawing
This is the installer or fabricator’s drawing of their details presentation of the work done.it shows the exact procedure, position and clarification on how service works have been done
Constituent
• Instruction to tenderers
• Form of tender
• Article of agreement and condition of contract
• Trades preambles/specifications
• Preliminaries
• Bills of quantities
Procurement
Procurement describes the merging of activities undertaken by the client to obtain a building. There are many different methods of construction procurement; however the three most common types of procurement are:
1. Traditional (Design-bid-build)
2. Design and build
3. Management contracting
There is also a growing number of new forms of procurement that involve relationship contracting where the emphasis is on a co-operative relationship between the principal and contractor and other stakeholders within a construction project. New forms include partnering such as Public-Private Partnering (PPPs) aka private finance initiatives (PFIs) and alliances such as "pure" or "project" alliances and "impure" or "strategic" alliances. The focus on co-operation is to ameliorate the many problems that arise from the often highly competitive and adversarial practices within the construction industry.
Traditional
Main article: Design–bid–build
This is the most common method of construction procurement and is well established and recognized. In this arrangement, the architect or engineer acts as the project coordinator. His or her role is to design the works, prepare the specifications and produce construction drawings, administer the contract, tender the works, and manage the works from inception to completion. There are direct contractual links between the architect's client and the main contractor. Any subcontractor will have a direct contractual relationship with the main contractor.
Design and build
This approach has become more common in recent years and involves the client contracting a single entity to both provide a design and to build that design. In some cases, the Design and Build (D & B) package can also include finding the site, arranging funding and applying for all necessary statutory consents.
The owner produces a list of requirements for a project, giving an overall view of the project's goals. Several D&B contractors present different ideas about how to accomplish these goals. The owner selects the ideas he or she likes best and hires the appropriate contractor. Often, it is not just one contractor, but a consortium of several contractors working together. Once a contractor (or consortium/consortia) has been hired, they begin building the first phase of the project. As they build phase 1, they design phase 2. This is in contrast to a design-bid-build contract, where the project is completely designed by the owner, then bid on, then completed, design build contracts are usually used for very large projects.
1. COST PLAN
Cost planning (ehow.com) is a key due diligence step in preparing for a construction project. Cost planning tells a property owner how much a proposed project will cost. Additionally, cost planning will tell when the expected expenses will most likely occur. This information is critical for obtaining project financing and for determining whether a project can be profitable. Without cost planning, property owners would enter blindly into construction projects and possibly into insolvency.
Cost planning typically involves two features. The first is an overall budget for the project. This is the total amount that the project is expected to cost. This amount is based on the current project scope and design and can be determined through various types of estimates. The second feature of cost planning is the allocation of costs over time. This involves predicting when along the project schedule costs will actually be incurred and paid.
Furthermore, cost plan (construction contract, huges; page 92) explains cost plan as a reaction to what is being produced by the designer i.e. the architect, services engineer, and structural engineer and so on. This are usually based on client needs and briefs, whatever the designer produces has a cost attached to it, so in these early stage cost planning can be said to be reactive.
Conclusively, according to (guidance notes on cost management in engineering construction projects) it briefly defined it as a cost model or plan of a proposed or anticipated expenditure phased over scheduled time periods.
2. CASH FLOW
Cash flow (guidance notes on cost management in engineering construction projects) stated it as projected cash balanced over a stated time period based in the net flow of actual or anticipated payments and receipts.
CASH FLOW (http://bivashsarker.hubpages.com/hub/Project-Management-Practices)deals with cash inflow by which money comes into the project and cash outflow by which money goes out of the project. Cash inflows are possible from 3 main areas.
• Receipts from client as per contract and works executed.
• Receipts from sale of good (mainly scrap).
• Funds raised in form of loans from financial institutions or other approved sources as working capital. Target shall be to keep funds raised in form of loans at minimum. Let us find out factors which contribute to a cash inflows and cash outflows in a project so that all persons concerned can at least attempt to keep the target. at any point of time, a project should have following condition to consider it as ‘project with healthy cashflow’.funds arranged as loans ≥ (cash out flows - receipts from client). Receipt from sale of goods has not been considered as its contribution towards cash inflow is meagre with respect to receipts from client. To keep 'fund arranged as loan' to minimum, 'receipts from client' should be on higher side and 'cash outflows' shall be on lower side at all times.
3. Financial Statements
Definition: Financial statements are a collection of reports about a project financial results and condition. They are useful for the following reasons:
• To determine the ability of a project to generate cash, and the sources and uses of that cash.
• To determine whether a project has the capability to pay back its debts.
• To track financial results on a trend line to spot any looming profitability issues.
• To derive financial ratios from the statements that can indicate the condition of the project.
• To investigate the details of certain business transactions, as outlined in the disclosures that accompany the statements.
The standard contents of a set of financial statements are:
• Balance sheet. Shows the entity's assets, liabilities, and stockholders' equity as of the report date.
• Income statement. Shows the results of the entity's operations and financial activities for the reporting period.
• Statement of cash flows. Shows changes in the entity's cash flows during the reporting period.
• Supplementary notes. Includes explanations of various activities, additional detail on some accounts,
4. Amortization
Amortization is payments of debt in equal instalments of principal and interest, rather than interest only payments. The deduction of capital expenses over a specific period of time (usually over the asset's life). More specifically, this method measures the consumption of the value of intangible assets, such as a patent or a copyright.
5. Repayment
The act of paying back money previously borrowed from a lender. Repayment usually takes the form of periodic payments that normally include part principal plus interest in each payment. The other common method of repayment is a lump sum with interest at maturity. Failure to keep up with repayments of debt can force you to declare bankruptcy and severely affect your credit rating. Before declaring bankruptcy, most people should explore every alternative such as earning additional income, refinancing and negotiating with creditors.
6. Fluctuations
It entails change in price of goods, materials and personnel variation during the contract period. Price guides are provided which take many month to prepare, published ahead of the year. So in periods of high inflation they can be very quickly out of date. So there is chance for price changes even at normal condition.
Price fluctuation
Time taken for award of contract
Delay in awarding contract causes many problems in the implementation stage in the following matter. Price fluctuation becomes very high creating lot of uncertainty, as the base index is generally calculated 28 days before the bid submission when there is a delay in awarding the contract on the first month after commencements of the work there is a fluctuation of price accounted.
Material
When there is sudden change in obtaining the materials; the cost of the project goes up.
Labour
Availability of skill trained Labour is a problem for the construction industry in Sri Lanka ,hence the contractor had to mobilize skill labour from faraway places & pay high salaries provide other facilities like lodging, food … etc which increase the Labour rate.
7. Preliminary
This is work deemed to be done before any building construction can proceed. They are items that facilitate progress of work on site. Construction projects are priced using a bill of quantities--a detailed description of the items needed to finish the product and their costs. The preliminaries of a bill of quantities are the section that provides a description of the project, the contractor's general obligations, general facilities, and setup and running costs. In the United States, the term "site overheads" is used instead of "preliminaries." In a bill of quantities, the preliminary costs are generally divided among initial cots, recurring cost and final costs. Initial and final costs are one-off expenses, while recurring costs continue throughout the life of the project. If work is disrupted for reasons out of the contractor's control, recurring costs are often used to calculate compensation for the extension on the contract period.
8. Contingencies
Contingency allowance is provided in construction contracts to allow for miscellaneous unforeseen costs which cannot be classified under any other head, but is necessary for successful completion of the project. In construction contracts usually 3 to 5 percent of contract value is provided as contingency allowance. An example of such unforeseen cost is price escalation. If there is a saving in the contingency allowance, then this amount can be used for execution of extra items of work. That means when variation claims are raised, it is common that the employer will cancel the contingency allowance against variation claims, and pay the contractor.
9. Provisional sum
According to section 10.3 of the standard method of measurement 3(BESMM3) it explains provisional sum for defined work as the a sum provided for work which is not completely designed but for which the following information shall be provided
a) The nature and construction of work
b) A statement of how and where the work is fixed to the building and what other work is fixed thereto
c) A quantity or quantities which indicate the scope and extent of the work
d) Any specific limitation and the identified in section A35.
Prior to the above explanation the contractor will be deemed to make any allowance in programming, planning and pricing preliminaries
While for undefined work the listed information are not provided and no allowance is deemed to be provided by the contractor
Furthermore, they are used when work has not been finalized or for cost which is unknown, at the time the bills are prepared they may be simply be contingency sums.
10. Prime cost
Prime cost (PC) sums are used for work under the building contract which is carried out under the direction of the main contractor by certain other persons, namely, norminated sub-contractor, nominated suppliers and statutory authorities.
Prime cost generally is an allowance for articles to be provided by the contractor, of which price cannot be fixed at the time of tender. It refers only to the supply of materials and not to the carrying out of works. A specific amount will be earmarked in the BOQ for execution of such items. Examples are fixtures and finishing works like ceramic tiles, sanitary fittings, water supply fittings etc. that can be decided only at the time of execution. Contractor is not entitled for any profit on prime cost items, but sometimes the cost of carriage will be provided if specified in contract. The FIDIC Conditions of Contract do not mention about prime cost.
Definition of Prime cost by ICE (Institution of Civil Engineers, Great Britain)
"Prime Cost (PC) Item" means an item in the Contract which contains (either wholly or in part) a sum referred to as Prime Cost (PC) which will be used for the execution of work or the supply of goods materials or services for the Works.
11.Nominated sub-contractor
(JCT) he is a trader, specialist appointed by the client; therefore there is only agreement between the parties as regard to payments and other conditions. In theory, at least, the appointment of a domestic contractor is default by the client or her consultants.
Conclusively, a Nominated subcontractor is chosen by the architect, client or engineer to carry out certain aspects of the work. They are appointed on the expenditure of a provisional sum or prime cost sum included in the contract bills. The nominated subcontractor enters into a contract with the main contractor but there may be a collateral warranty between the nominated subcontractor and the client. The main contractor has no responsibility to carry our work that is intended to be carried out by a nominated subcontractor. Nomination is not possible under the JCT 2005 Standard Building Contracts or the Engineering and Construction Contract. The main contractor is required to provide the general attendances for the subcontractor; any special attendances are the subcontractors’ responsibility. The main contractor will provide a profit margin for such attendance. A nominated sub-contractor is one that is selected by the client to carry out an element of the works. Nominated sub-contractors are imposed upon the main contractor after the main contractor has been appointed. The mechanism for nominating is an instruction in relation to a prime cost sum to which a main contractor is entitled to add its mark up and attendance costs. It allows the client to have direct separate negotiations with major suppliers of goods or services and feed their appointment and design input into the contract after works by the main contractor have commenced.
"Nominated Sub-contractor" means any merchant tradesman specialist or other person firm or company nominated in accordance with the Contract to be employed by the Contractor for the execution of work or supply of goods materials or services for which a Prime Cost has been inserted in the Contract or ordered by the Engineer to be employed by the Contractor to execute work or supply goods materials or services under a Provisional Sum.(ICE Conditions of Contract Definition)
12.Domestic sub-contractor
A Domestic Sub-contractor is selected and engaged directly by the main contractor to carry out a particular trade; this will mainly include standard trades such as bricklayers, roofers, ground workers, plumbers, electrical and plasterers. They may be labour only or supply and fix. In all cases they must be approved by the architect under JCT 2005 Standard Building Contracts. The architect has the full authority to reject any subcontractor requested by the contractor. The contract does not recognise the main contractors own subcontractors, any work carried out by these is taken as if it were carried out by the main contractor.
In the word there is a bond between him and the main contractor as regard to payment and other conditions. A domestic sub-contractor is any sub-contractor, other than a nominated-sub contractor, that the main contractor sub-contracts to carry out part of the works. The work of the sub-contractor is the responsibility of the main contractor as far as the contract between the main contractor and the client is concerned.
A sub-contractor can be considered domestic if:
• They were freely selected by the contractor.
13. Variations
JCT80; the basic definition includes any ‘alteration or modification of the design, quality or quantity of the work as shown on the contract drawings and described by or referred to in the contract bills.; the clauses clarifies this further by stating that such alteration or modification includes additions, omission or substitution i.e. variation to completed work item. These also go to the material and goods used for work.
ICE 6;it is the addition ,omission ,substitution ,alteration ,changes in quality, form, character, kind, position, dimension, level or line, and changes in any specific sequence, method or timing of construction .this list, which contain a number of synonyms, means in effect the engineer may issue variation about almost anything. The clause also makes it clear also that a variation order need not be issued merely foe the purposes of altering quantities in the bills, this is because the bills are not intended as a full description of the work, but only as a mechanism for selecting the contractor.
Variations to the scope of construction works are necessary because no project is impeccable and changes are required to meet unforeseen circumstances or changed requirements. Thus, variation can be in the form of additions, omissions or substitutions.
14. Suppliers
Suppliers are responsible in providing construction companies with the needed materials to establish their projects. Suppliers usually serve as middleman. These professionals act as liaison between the builders and the manufacturers. Like any other construction jobs, it is important that you will supply the suppliers on the right time. Most of the construction projects available out there should be done in a specific period of time. Any delay in the delivery of the supplies might cause problems between the project owner and the other construction professionals.
15.Preliminary
Day work. Day work is the working hours of trader, workers, and labours in a day. This is the work range achieved in a day by a particular worker. It is used to arrive at a prime cost day work rate. The latter are a guide for employers showing them how to work out the real cost of employment so that it can be factored into quotes for work.
They show the workings out for these calculations based on application of the current working rule agreement and pay rates. However, they do not cover other costs such as workers travel or accommodation, and do not cover any of the non employment costs that employers need to factor into quotes for work such as administration, supervision, materials etc.
Time related work. It is work done for a particular item of work of which it is to be considered as proportional to the length of time taken to execute the work.
Value related work.It is the work as related to the intended method of executing the works, the costs of which are not to be considered as proportional to the quantities of the other items and for which he has not allowed in the rates and price for the other items
Builders work. Builder's Work is usually an ancillary item connected with other work, for providing MINOR building work; for example a description "builder's work in connection with window installation" might include forming an opening in a wall, fixing a lintel, and making good the wall faces after installation of the window unit.
In respect of service building example, if a building is required I would expect it to be within the performance specification for the design and build project. If a building is not specified, the D&B bidder/contractor might offer entirely weather proof equipment.
Also in mechanical/electrical services builder works may include chiselling the wall, making good of the surface and all element in the m section of the BESMM3.
Programme of work; Programmes of work which show the sequence of activities are common in the construction industry, and their importance is growing rapidly. Managers, engineers, quantity surveyors and site managers now need to be able to read and interpret programmes as much as construction drawings. But the role of programmes is still unclear.
16. Value added tax
VAT is a tax on consumer spending. It is collected by VAT-registered traders on their supplies of goods and services affected within the State, for consideration, to their customers.
17. Withholding tax
It is a tax that is withheld from income payments for building and construction activities and consulting services. The person required to withhold may be the service recipient in some cases and in other cases it will be the service provider. The status of the service recipient determines who is responsible for withholding the tax. The service recipient is the party who pays and the service provider is the party who receives payment for the building and construction activities or consulting services.
18.Materials on site.
These include all type of appropriate and deemed supplied goods or services that are pending for use on an incumbent construction process within the hoarded site vicinity. Clause 4.16.1.2 of the JCT Form requires the inclusion in the amount of an interim certificate of materials and goods delivered to the site for incorporation in the Works. In order to value them, the surveyor will need to be satisfied that the materials and goods are actually on the site and to ascertain approximately how much of each material or good there is. It is not necessary to know the exact quantities because by the time the next valuation is done, most or all of the materials will have been incorporated into finished work which will then be valued as such.
19.Material offsite
The JCT Form includes a provision in clauses 4.16.1.3 and 4.17for the value of materials and goods intended for the Works but not yet delivered to the site to be included where certain criteria have been met. These include all type of appropriate and deemed supplied goods or services that are pending for use on an incumbent construction process outside the hoarded site vicinity. This is at the discretion of the main contractor. The architect and the client are also aware of the location.
20. Progress of work.
This is a report of the millstones attainable by a main contractor for a given project. It includes photograph. This can be used to prepare a work in progress.
21. Architect instruction
Construction contracts generally give the contract administrator the power to issue instructions to the contractor. These instructions can be called ‘contract administrator’s instructions’ or ‘architect’s instructions’. We have used the terms ‘architect’ and ‘architect’s instruction’ below, but they could easily be replaced with ‘contract administrator’ and ‘contract administrator’s instruction’.
Broadly, Instructions may be given:
• To vary the works.
• To postpone the works.
• To remedy workmanship, goods or materials which are no in accordance with the contract.
• To sanction a variation made by the contractor.
• In relation to the expenditure of provisional sums.
• To open up work for inspection.
• To carry out tests.
• To exclude persons from the site.
22.Claims
Construction projects rarely run entirely smoothly: additional works may be requested by the employer or become necessary when things are "discovered" on site; delays may mean the building takes longer to complete; or it may cost more than the parties originally contracted for.
Common claims include:
• A contractor may have a claim against the employer relating to a delay or a change in the works.
• A professional consultant may have a claim against the employer for non-payment of fees or breach of copyright.
• The employer may have a claim against:
o the contractor for a delay to the works or a defect in the works; and/or
o The professional consultant for failing to properly design or supervise the works.
What the contractor may claim from the employer
A contractor may claim against the employer for more time and money (loss and expense) and for the cost of changes to the works (as variations or as a quantum meruit).
A claim for an extension of time to the completion date
• The parties usually agree a completion date in their contract. If not, the contractor should complete its works within a reasonable time.
• Standard form contracts usually allow for the completion date to be adjusted, to award the contractor an extension of time. The contractor should comply with the contract procedure.
• It is not always easy to work out what caused the delay and whose fault it was; sometimes there are competing causes of delay. If the contractor caused the delay, the employer may have a right to claim liquidated damages from the contractor.
A claim for loss and expense
• A contractor often claims loss and expense at the same time as an extension of time. It is the "money" side of a contractor's claim for delay and disruption (that is, a claim for the cost of inefficient working and employing more resources).
• Standard form contracts usually allow the contractor to claim for delayed or disrupted work. The contractor should comply with the contract procedure.
• A contractor may roll-up all the unattributed costs and claim them from the employer as loss and expense. If the claim does not break down the sum claimed between the contractor's various complaints, it is called a "global claim" or, sometimes, a "total cost" claim.
• Common heads of loss and expense claimed include:
o prolongation costs;
o finance charges;
o loss of profits;
o general disruption; and
o Wasted management time.
A claim for the cost of variations
• Sometimes called additional work or extras, a contractor may claim for a variation when the employer changes the contractor's scope of work.
• Standard form contracts usually include a clause that defines what a variation is and provide a procedure to value the variation. If so, the contractor should comply with that procedure.
• Both parties may benefit from a clause permitting variations:
o the employer can make changes so that it gets the building it wants; and
o The contractor gets paid for providing extra or different work or materials.
• Claiming for variations often gives rise to disputes over whether:
o the additional work is outside the original scope of work; and/or
o The person who ordered the work was authorised to do so.
A claim for payment under a quantum meruit
• Under a quantum meruit claim, the contractor claims a reasonable sum for the work done and the materials it has supplied. The parties (or the courts) usually value a quantum meruit claim at a fair commercial rate.
• A contractor cannot claim a quantum meruit if the parties have a contract to pay an agreed sum, but it will be relevant if the parties have:
o not agreed a contract or not agreed all the terms, including the price for the work;
o an agreement to pay a reasonable sum for the work done; or
o Agreed a scope of work under the original contract and the work falls outside that scope (and the parties did not have or did not use a variation procedure in the contract).
• A contractor may claim a quantum meruit if it has worked under a letter of intent.
What the employer may claim from the contractor
The employer may have a claim against the contractor because the works are of a poor quality or are defective, or because the project is delayed.
A claim for poor workmanship and/or defects in the works
• Defective work frequently occurs in construction projects. Defects may range from de minimis items included within snagging lists at practical completion, to significant but undetected (or latent) problems. A defect is generally a breach of contract by the contractor, but could relate to design that the contractor did not carry out, in which case only a professional consultant or consultants might be liable.
• Standard form contracts usually contain a defects liability clause that obliges the contractor to return to site, at its own cost, during the defects liability period or rectification period (normally six or 12 months) and remedy any defects that arise.
• A contractor who is responsible for design and construction of the works may be liable for a defect that is caused by negligent design, by poor workmanship or by a mixture of both.
A claim for liquidated damages
• A liquidated damages clause (sometimes called liquidated and ascertained damages or LADs) compensates the employer if the contractor completes its work late. It requires a contractor to pay the employer a pre-determined rate of damages that must be a genuine pre-estimate of the employer's loss.
• A liquidated damages clause is a common feature of many standard form contracts. The employer must ensure that it meets any contractual notice requirements in the contract before it claims liquidated damages from the contractor.
• The clause may take effect as an exhaustive remedy (that is, the clause may be the employer's only remedy for the contractor's delay).
• The employer usually deducts or sets off the liquidated damages from sums it owes to the contractor.
What the employer may claim against the professional consultant
On construction projects, professional consultants often act as the contract administrator (valuing and certifying the works) as well as undertaking a design role. Generally, on building contracts, the professional consultant administering the contract is an architect; on engineering contracts, it is usually an engineer. Occasionally, the employer may appoint a project manager or quantity surveyor to administer a contract.
Professional consultants should perform their services in accordance with the implied or express duty of care in their professional appointment.
The professional consultant may be liable to the employer for failing to:
• Design the works in accordance with the professional appointment.
• Supervise the works in accordance with the professional appointment.
• Ensure the contractor built the works in accordance with the building contract.
• Certify the works properly (that is, it is alleged the professional consultant was negligent in certifying the works).
An employer claims its losses caused by a breach of contract or the negligence of a professional consultant as general (unliquidated) damages.
What the professional consultant may claim against the employer
• If the employer fails to make payment, the professional consultant may claim for non-payment of fees. The parties may dispute whether a particular professional service was included in the fee agreed at the outset, or whether it was extra work.
• The professional consultant will usually retain copyright in the design and its plans and drawings; the employer is typically granted a licence to use these. If the employer does not pay the professional consultant, the professional consultant may argue that the employer's use of the design is in breach of copyright.
23. Extension of time
Many construction contracts allow the construction period to be extended where there are delays that are not the contractor's fault. Some contracts allow an extension of time to be granted whether or not the completion date is likely to be affected by the delay, whereas others only allow an extension of time if the delay is likely to affect the completion date.
When it becomes reasonably apparent that there is a delay, or that there is likely to be a delay that could merit an extension of time, the contractor gives written notice to the contract administrator identifying the relevant event that has caused the delay. If the contract administrator accepts that the delay was caused by a relevant event, then they may grant an extension of time and the completion date is adjusted.
Relevant events may include:
• Variations.
• Exceptionally adverse weather.
• Civil commotion or terrorism.
• Failure to provide information.
• Delay on the part of a nominated sub-contractor.
• Statutory undertaker’s work.
• Delay in giving the contractor possession of the site.
• Force majeure (such as an epidemic or an 'act of God').
• Loss from a specified peril such as flood.
• The supply of materials and goods by the client.
• Strikes.
• Changes in statutory requirements.
• Delays in receiving permissions that the contractor has taken reasonable steps to avoid.
The contractor is required to prevent or mitigate the delay and any resulting loss, even where the fault is not their own.
Assessing claims for an extension of time can be complicated and controversial. There may be multiple or concurrent delays, some of which are the contractor's fault and some not. Crucial in assessing applications for extension of time is the quality of the information provided and records available.
The contract administrator may review extensions of time after practical completion and further adjust the completion date.
Mechanisms allowing extensions of time are not simply for the contractor's benefit. If there was no such mechanism and a delay occurred which was not the contractor’s fault, then the contractor would no longer be required to complete the works by the completion date and would only then have to complete the works in a 'reasonable' time. The client would lose any right to liquidated damages.
Claims for extension of time can run alongside claims for loss and expense however, one need not necessarily lead to the other.
Where extensions of time are caused solely by the action of the client or their agents, the contractor is entitled to reimbursement of the running costs of their preliminaries, such as staff costs and plant hire. This is reasonably easy to calculate. More subjective and contentious are claims for disruption and uneconomic working.
Some other considerations when assessing claims for extensions of time and/or loss and expense include:
• All claims should be judged against the progress of the works and not the programme.
• There are many occasions where contractors contribute to delay themselves by their performance during design periods, when producing drawings, mock ups and samples or in inter-facing with sub-contractors.
• Successful claims must demonstrate the link between the breach (cause) and the delay.
• Loss of profit claims can be challenged since there is an onus on the contractor to demonstrate it was prevented from making a profit elsewhere. Profits made from the variation account should be offset against any figure put forward.
• Claims for finance charges must show that the contractor operated under negative cash flow and was forced to borrow capital. Furthermore notice of such circumstances has to be given at the time of the client’s breach.
• Supplemental and wrap-up agreements previously agreed by both parties can weaken the contractor’s final entitlement.
24 Final account
final account is the process of calculating and agreeing any adjustments to the contract sum (the amount originally set out in the contract to be paid to the contractor for completion of the works) so that the amount of the final payment can be determined. The amount of the final payment is then set out in the final certificate (or final statement). It is possible for the final certificate to show that money is owed to the client, rather than due to the contractor.
Construction contracts may in fact not require the preparation of a final account, although they generally do require the contractor to provide all documents necessary for the adjustment of the contract sum within a specified time, and set out the time scale for and consequences of issuing the final certificate.
The contract sum may need to be adjusted for a number of reasons, including:
• Variations.
• Fluctuations.
• Prime cost sums.
• Provisional sums.
• Payments to nominated sub-contractors or nominated suppliers.
• Statutory fees.
• Payments relating to the opening-up and testing of the works.
• Loss and expense.
• Liquidated and ascertained damages.
• Contra claims imposed as a result of the contractor's operations (such as a third-party claim resulting from contractor negligence or contractual breach, for example, flooding a neighbour's property).
• The release of any remaining retention.
Agreeing the final account can be a complicated, time consuming and adversarial process, often resulting in disputes. The process can be made easier if adjustments to the contract sum are agreed as the project progresses rather than saving them up for the end. It is also beneficial if the client's quantity surveyor and the contractor's quantity surveyor work together on drafts of the final account before agreement it sought. It is preferable that a draft copy of the final account is signed off by the contractor as an 'in full and final settlement' prior to issue.
Agreement of the final account will allow the contract administrator to issue the final certificate. The final certificate is conclusive that all patent defects have been remedied, all adjustments to the contract sum have been agreed and all claims settled. Latent defects may still become apparent after completion of the contract and these may give rise to action for damages, for breach of contract or negligence.
Where proceedings have begun in relation to a dispute, the conclusiveness of the final certificate is subject to the findings of those proceedings.
In addition, the final certificate itself can be disputed (usually within 28 days). Adjudication, arbitration or other dispute resolution procedures may then be necessary to resolve the dispute. The final certificate is then only conclusive in relation to matters that are not disputed.
25. Attendance
is the main contractor’s mark up for specific services it has to provide for individual suppliers or sub-contractors. This might include items such as material handling, scaffolding and rubbish clearance.
Attendance can be ‘general’ or ‘special’.
General attendance is the description of main contractor attendance available site wide to all contractors/subcontractors such as:
• Welfare facilities.
• External scaffolding.
• Temporary power and lighting.
• Platform and passenger hoists.
• Tower crane lifts by prior arrangement.
• Site security.
• Waste disposal.
Special attendance is specific to a particular contractor/subcontractor if it requests it to be provided by the main contractor such as:
• Special hoisting.
• Builders work such as a concrete plinth.
• Special scaffolding.
It is important to establish within the contract documents whether items that the sub-contractor will require will constitute attendances that will be provided by the main contractor, or whether they will provide them themselves (such as their own specialist equipment).
Attendance should not be confused with general site preliminaries or builder’s work in connection with mechanical and electrical services. These items are separately priced.
26.Practical completion
The contract administrator certifies practical completion when all the works described in the contract have been carried out. Practical completion is referred to as 'substantial completion' on some forms of contract.
Certifying practical completion has the effect of:
• Releasing half of the retention (an amount retained from payments due to the contractor to ensure that they complete the works).
• Ending the contractor's liability for liquidated damages (damages that become payable to the client in the event that the contractor breaches the contract - generally by failing to complete the works by the completion date).
• Signifying the beginning of the defects liability period.
Documentation that should be issued to the client on certification of practical completion may include:
• A draft building owner's manual.
• A building user's guide.
• The health and safety file.
• The building log book.
• A construction stage report.
Once practical completion is certified, the client takes possession of the works for occupation.
There is no absolute definition of practical completion, and case law is very complex. There is some debate about when practical completion can be certified and whether it can be certified where there are very minor (de minimis) items 'not affecting beneficial occupancy' that remain incomplete.
It is important to note that the defects liability period is not a chance to correct problems apparent at practical completion; it is a period during which the contractor may be recalled to rectify defects which appear. If there are defects apparent before practical completion, then these should be rectified before a certificate of practical completion is issued.
This can put the contract administrator in a difficult position, where both the contractor and the client are keen to issue the certificate (so that the building can be handed over) and yet defects (more than a de minimis) are apparent in the works. Issuing the certificate however could render the contract administrator liable for problems that this causes for example in the calculation of liquidated damages, the position in relation to performance bonds and the release of retention when it is not certain that the works will be completed.
If the contract administrator is pressured to certify practical completion even though the works are not complete, they might consider informing the client in writing of the potential problems of doing so, obtaining written consent from the client to certify practical completion and obtaining agreement from the contractor that they will complete the works and rectify any defects. If the contract administrator is not confident about the potential problems, they may advise the client to seek legal advice.
On construction management contracts, a separate certificate of practical completion must be issued for each trade contract. Once all trade contracts (or all trade contracts for a particular section of the works) have been issued, the construction manager issues a certificate or project completion (or sectional completion). The same is true on management contracts, where each works contract must be certified individually.
Practical completion is not a term recognised in many recently developed contacts such as PPC 2000 and other partnering contracts which simply refer to 'completion'. This can put the contract administrator in a difficult position as to when the project becomes 'useable' by the client. Effectively, if the project reaches a stage when the intended use by the client, either immediate use, such as installing furniture or fitting-out (if it is a building project), or actual occupation by the end users, is possible safely and without affecting warranties etc then the project may be deemed 'complete'. The size and extent of the list of outstanding works and defects requiring rectification will be the measure on which the contract administrator judges whether completion has actually been achieved.
NB If practical completion is not certified by the most recently agreed completion date, then the contractor may be liable to pay liquidated and ascertained damages to the client. These are pre-determined damages set at the time that the contract is entered into, based on a calculation of the actual loss that the client is likely to incur if the contractor fails to meet the completion date. Some contracts require that a certificate of non-completion is issued as a pre-requisite to deducting liquidated and ascertained damages.
27. Adjustment to measurement
This is amendment to work section during the taking off process. After the overall section has been measured the necessary adjustment to this section is the adjustment to measurement.
ROLES PERFORMED BY VARIOUS PARTIES TO CONSTRUCTION PROJECT
The client
• Working with the Project Manager and other members of the program team to decide specifically what you want to do. Establishing your program for the project is the first and most basic step. If the program is not clear or not agreed upon, the project cannot proceed.
• Attending design meetings with the Project Manager, outside consultants and other parties to facilitate program, design, and budget decision-making. These meetings may occur as often as weekly during the early design phases on major projects.
• Working with the Project Manager to develop a schedule for the project.
• Providing prompt answers to questions related to the program requirements and the way in which the occupants function. The level of detail required increases as the design progresses. Whenever possible, provide program and other technical requirements in writing.
• the Project Manager.
The Consultants
Architects
The responsibilities of an Architect are many and varied during the construction process. When construction administration is part of the contract, the architect's ability to help create a successful project continues after the planning, design and construction documents are complete. All too frequently, the Architect-Owner relationship is terminated on completion of the construction documents. Some contractors wish to remove the architect from their operation, viewing their presence as both a nuisance and an unnecessary expense. However, an Architect has several critical roles yet to play during construction.
Performance Evaluation
It is up to the Architect to observe construction to ensure, through regular inspection, that the site work, when complete will meet the specifications of the construction documents. While the architects' scrutiny might appear to hinder progress, it will ultimately benefit all parties and the success of the project to arrange regular site reviews. The Architect should submit written evaluations of work at regular intervals during construction. By doing so, the contractor avoids any plan deviation which could become a liability should problems arise in the future.
Deviation and Adjustment
The Architect must submit modifications made to the design of a project during construction to the Contractor. These changes often occur to adapt a project to real-life site conditions, correct errors and remedy omissions to the construction documents. Departures from construction documents that are discovered after their finalization should be brought to the attention of the owner along with any necessary scheduling adjustments.
Costs
During design development, the Architect will usually provide an estimate for the cost of work. This estimate, however, is a target and is likely to change during construction. As the cost requirements change, it is the responsibility of the Architect to update and refine cost estimates and share that information with the Contractor and owner. Estimates should always take into account contingencies and potential price escalation. Should the cost requirements reach budgetary limits, it is the architect's duty to recommend alternative solutions to resolve any variations to the original budget.
Site Assessment
At an agreed upon time, after the completion of a project, the Architect is responsible for conducting an assessment of the site for the owner. Operations and performance of the facility should be considered and the architect should make recommendations for maintenance and improvement if any are required. Any deficiencies in construction are to be addressed by the contractor, making this assessment essential for the owner. Additionally, liability for any substandard work may fall in part to the architect, if the problem is in the design, highlighting the importance of the architect's presence during construction.
It is short sighted and creates added risk for all parties when the Architect has no contracted responsibilities during construction.
Quantity surveyors
Quantity Surveyors are involved at various stages of the construction process, typically prior to construction, during construction and following completion of the works.
Quantity Surveyors work with accountants, architects, engineers, builders, building owners, developers, financiers, government, insurance underwriters, loss adjusters, solicitors and subcontractors. The Quantity Surveyor’s detailed knowledge of construction costs allows them to perform the following tasks independently of whether they are working for the Client or the Contractor:
Prior to Construction:
• Preparation of Feasibility Studies
• Estimating to define project budgets
• Analysis of the effect of design changes on the project budget
• Cost planning to refine the budget as the design documents develop
• Preparation of Bills of Quantities to assist in the tender process
During Construction:
• Provision of cost control services during construction
• Assessment of the contractor’s progress claims
• Assessment of variation and delay claims
• Procurement of subcontractors and labour to carry out specialist trade works
• Negotiation and settlement of accounts
• Monthly forecasting and cost reporting
• Monthly negotiation and agreement of payments for works carried out
Post Construction:
• Determination of the final project cost
• Preparation of tax depreciation reports for investors and property owners
• Expert witness reports to assist in the settlement of building disputes
Structural and civil engineer
Civil Engineers are involved in the planning, designing, construction and maintenance of physical projects such as buildings, bridges, roads, canals, dams, pipelines, subdivisions, airports, water systems, and many other types of facilities. Their work is not limited to planning and designing, they also prepare property descriptions, deeds, final cost estimates and right-of-way maps.
Civil Engineers also visit fields mostly for surveying, site investigation, or construction inspection or supervision. They may also be involved in laboratory testing for the condition of soil and construction materials. Structural engineers specialize in the engineering of bridges, buildings, pipelines, industrial structures, or special mechanical structures such as aircraft or vehicles. Like civil engineers, structure engineers also make field visits mainly to check whether the work being done is according to the specifications or not. They also inspect existing structures that may need repair or replacement.
The role of structural and civil engineers in building and construction is to improve the environment we live in by designing and creating projects that provide safety to the general public since roads, bridges, buildings, etc are used by the masses worldwide. Many engineers use computer aided design and drawing facilities to provide high quality of service in a timely manner.
Mechanical engineer
Role of mechanical engineer in construction is to do design calculations, drawings, and do all the mechanical work in proper way
Definition and constituent of contract bill
The Bills of Quantities referred to in the First recital which have been priced by the Contractor and signed by or on behalf of the Parties to this Contract.
(JCT Conditions of Contract Definition)
The Construction Contracts Bill is a piece of legislation aimed at improving the process of payments within the construction industry. It seeks to remove the possibility of payments being withheld for extended periods of time.
The explanatory memorandum for the Bill describes the legislation as follows.
"The main purpose of this Bill is to provide for a mechanism whereby prior notice of an intention to withhold sums from payments otherwise due must be given. Otherwise, payments must be made in full and/or the payee may suspend the provision of works and/or services under the construction contract until payment is made in full. This provision is proposed in ease of persons along the chain in the construction sector who may suffer unduly where an entity under a superior contract would find itself withholding payment unilaterally without cause. This would bear unfairly upon the payee or others dependent upon the payee. Ideally this measure would be linked to wider provision in respect of construction contracts including a more rapid and effective means of dispute settlement. However, that could be considered at a later point in time."
Mechanical drawings
A mechanical drawing is defined as a scaled illustration of a subject machine or mechanical part, or construction drawing of a fixture, product, or furnishing. It is a precision drawing, produced with the help of instruments, such as compasses, triangles, T-squares, etc., on a drafting board, or entirely in a Computer Aided Drafting (CAD) program.
Electrical drawings
An electrical drawing, is a type of technical drawing that shows information about power, lighting, and communication for an engineering or architectural project. Any electrical working drawing consists of "lines, symbols, dimensions, and notations to accurately convey engineering’s design to the workers, who install the electrical system on the job
Structural drawing
The design and working drawings for structures such as buildings, bridges, dams, tanks, and highways
Shop drawing
This is the installer or fabricator’s drawing of their details presentation of the work done.it shows the exact procedure, position and clarification on how service works have been done
Constituent
• Instruction to tenderers
• Form of tender
• Article of agreement and condition of contract
• Trades preambles/specifications
• Preliminaries
• Bills of quantities
Procurement
Procurement describes the merging of activities undertaken by the client to obtain a building. There are many different methods of construction procurement; however the three most common types of procurement are:
1. Traditional (Design-bid-build)
2. Design and build
3. Management contracting
There is also a growing number of new forms of procurement that involve relationship contracting where the emphasis is on a co-operative relationship between the principal and contractor and other stakeholders within a construction project. New forms include partnering such as Public-Private Partnering (PPPs) aka private finance initiatives (PFIs) and alliances such as "pure" or "project" alliances and "impure" or "strategic" alliances. The focus on co-operation is to ameliorate the many problems that arise from the often highly competitive and adversarial practices within the construction industry.
Traditional
Main article: Design–bid–build
This is the most common method of construction procurement and is well established and recognized. In this arrangement, the architect or engineer acts as the project coordinator. His or her role is to design the works, prepare the specifications and produce construction drawings, administer the contract, tender the works, and manage the works from inception to completion. There are direct contractual links between the architect's client and the main contractor. Any subcontractor will have a direct contractual relationship with the main contractor.
Design and build
This approach has become more common in recent years and involves the client contracting a single entity to both provide a design and to build that design. In some cases, the Design and Build (D & B) package can also include finding the site, arranging funding and applying for all necessary statutory consents.
The owner produces a list of requirements for a project, giving an overall view of the project's goals. Several D&B contractors present different ideas about how to accomplish these goals. The owner selects the ideas he or she likes best and hires the appropriate contractor. Often, it is not just one contractor, but a consortium of several contractors working together. Once a contractor (or consortium/consortia) has been hired, they begin building the first phase of the project. As they build phase 1, they design phase 2. This is in contrast to a design-bid-build contract, where the project is completely designed by the owner, then bid on, then completed, design build contracts are usually used for very large projects.
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