CONDUCTING TRAINING ON CONTRACT ADMINISTRATION

Client:CONSTRUCTION DESIGN SHARE COMPANY

We have conducted training on contract administration for engineering staffs of CONSTRUCTION DESIGN SHARE COMPANY, based on the attached agreement, both in the head offices and in branch offices. The training modules and contents of each module are prepared as shown below.

TRAINING MODULES

A. TRAINING MODULES FOR BRANCH MANAGERS AND ENGINEERING STAFF OF THE HEAD OFFICE

  • MODULE 1: CONTRACTUAL PROCEDURES AND RESPONSIBILITIES
  • MODULE 2: MANAGEMENT OF SITE
  • MODULE 3: QUALITY INSPECTION AND SUPERVISION
  • MODULE 4: MONITORING CONTRACT CONTROLS
  • MODULE 5: VARIATION AND CLAIMS UNDER STANDARD CONDITIONS OF CONTRACT
  • MODULE 6: PREVENTING FUTURE CLAIMS

B. TRAINING MODULES FOR RESIDENT ENGINEERS/SUPERVISORS

  • MODULE 1: CONTRACTUAL PROCEDURES AND RESPONSIBILITIES
  • MODULE 2: CONSTRUCTION PLANNING AND FUNDAMENTAL SCHEDULING PROCEDURES
  • MODULE 3: MANAGEMENT OF SITE
  • MODULE 4: QUALITY INSPECTION AND SUPERVISION

ATTENDESS OF THE TRAINING AND LOCATIONS WHERE THE TRAINING IS CONDUCTED

i. We have conducted the training modules prepared for branch managers and engineering staff of the head office in Addis Ababa for Branch managers and head office staffs for 5 days during the period of July to September 2011.
ii. We have also conducted the training modules of supervisors on the following locations:-

  • In Jimma for Supervisors of CDSCo under Jimma Branch and for Jimma university engineering staffs for 3 days.
  • In Addis Ababa for Supervisors of CDSCo under Addis Ababa( 1and2) Branches for 3 days.
  • In Bahirdar for Supervisors of CDSCo under Bahirdar Branch , for Bahirdar university engineering staffs, for local consultants and the Regional Construction and Design Bureau staffs invited by the university for 3 days.
  • In Gondar for Supervisors of CDSCo under Gondar Branch and for Gondar university engineering staffs for 3 days.

CONTENT OF TRAINING MODULES

MODULE 1: CONTRACTUAL PROCEDURES AND RESPONSIBILITIES*
  • GENERAL OVERVIEW
    • INTRODUCTION
    • CONTRACTUAL DOCUMENTS USED IN CONSTRUCTION CONTRACT ADMINISTRATION
      • Owner-A/E Agreements
      • Owner-Contractor Agreement:
      • Conditions of the Contract:
      • General Requirements and specification
      • Contract Drawings:
      • Bid form or proposal, when attached as an exhibit to the agreement
      • Precontract Revisions:
      • Modifications including change orders.
      • Notice to proceed
      • CONTRACT DOCUMENT RELATIONSHIPS
      • INTRODUCTION
        • CONSTRUCTION DOCUMENTS
        • Procurement and Contracting Requirements
        • CONTRACT DOCUMENT REQUIREMENTS FOR EACH MAJOR CONSTRUCTION CONTRACT ADMINISTRATION ACTIVITY
    • ROLES AND RESPONSIBILITIES OF PARTY DURING CONSTRUCTION
      • OWNER’S RESPONSIBILITY
      • PARTICIPANTS’ EXPECTATIONS OF THE OWNER
      • CONSULTANT’S RESPONSIBILITY
        • Represent the owner.
        • Observe the work.
        • Certify/recommend.
        • Interpret contract documents
        • Resolve disputes.
        • Modify the contract documents
        • Review submittals.
        • Perform inspections
        • PARTICIPANTS’ EXPECTATIONS OF THE CONSULTANT:
        • CONTRACTOR’S RESPONSIBILITY
        • PARTICIPANTS’ EXPECTATIONS OF THE CONTRACTOR:
        • COMMUNICATION DURING THE CONSTRUCTION PROCESS
          • ORAL AND WRITTEN COMMUNICATION:
          • TEAM APPROACH:
          • BENEFITS TO WORKING AS A TEAM
          • OBSTACLES TO WORKING AS A TEAM:
          • TEAM BUILDING AND PARTNERING:
        • CONSTRUCTION SUBMITTALS
          • CERTIFICATES OF INSURANCE:
          • SURETY BONDS:
          • OTHER FORMS OF CONSTRUCTION-RELATED BONDS
          • MAINTENANCE BONDS
          • RETAINAGE BONDS
          • LICENSE AND PERMIT BONDS
          • SUBCONTRACTOR LISTS AND PRODUCT LISTS
          • SCHEDULE OF VALUES
          • SCHEDULE OF INSPECTIONS AND TESTING
          • SUBMITTAL SCHEDULE
          • CONSTRUCTION PROGRESS SCHEDULE
            • Schedule Preparation
          • TRAFFIC CONTROL PLAN

NOTE: - * this module is also delivered under Module 1 of supervisors.

MODULE 2: MANAGEMENT OF SITE*
        • MANAGEMENT OF SITE
          • ACTIVITIES IN SITE MANAGEMENT
            • Verification of Site Conditions
            • Documenting Existing Conditions
            • Avoiding Disputes over Damage Caused by Construction Activities
            • Mobilization
            • Use of the Site
            • Site Security
            • Temporary Facilities1.1.8 Temporary Utilities:
            • Temporary Controls: 1.1.10 Equipment:
            • Environmental Protection Requirements:
            • Safety
            • Utility Locations:
            • Survey/Layout/Datum:
        • Site Mobilization Meeting:
        • Utility Coordination:
        • Job site Communication
        • MEETINGS IN CONSTRUCTION
          • Types of Meetings
            • Preconstruction Meetings:
              • Procedural Meeting:
              • Utility Coordination Meeting:
              • Progress Meetings:
              • Contractor/Subcontractor Meetings:
              • Pre installation Meetings:
              • SAFETY Meetings:
                • Initial (Pre construction) safety meeting
                  • How Will Safety Be Managed
                  • Identification of Safety Risks
                  • Determine Special Safety Procedures
                  • Drug and Alcohol Program
                  • OSHA
                  • Orientation
                  • Hazard Communication
                  • Emergencies
                  • Posting
                  • Project Safety Plan
                • Other Meetings:
                • Closeout Meeting:
                • Pre default meeting

NOTE: - * this module is also delivered under Module 3 of supervisors

MODULE 3: QUALITY INSPECTION AND SUPERVISION*
        • INTRODUCTION
        • Establishing Quality
        • Engineer’s role in Quality
        • Concurrent Quality Assurance/Quality Control Processes
        • Supervision of Construction works
          • Contractor Responsibilities for Supervision of the Work
          • Complying with Contract Documents:
          • Quality Assurance and Quality Control Procedures
            • Inputs of Quality Control
            • Overview for Quality Assurance Section of Technical Specification and Method of Measurement
            • ISSUES TO BE CONSIDERED BY THE RESIDENT ENGINEER/SUPERVISOR
              • Coordinating Construction Activities14
              • Issues Related to Coordinating the Work:

NOTE: - * this module is also delivered under Module 4 of supervisors.

MODULE 4: MONITORING CONTRACT CONTROLS
        • OVERVIEW OF CONTRACT CONTROLS
          • INTRODUCTION
          • PROCESS GROUPS
          • PROJECT MONITORING (CONTROLLING PROCESSES)
        • SCHEDULE CONTROL
          • INPUTS TO SCHEDULE CONTROL
            • Project schedule.
            • Performance reports.
            • Change requests.
          • TOOLS AND TECHNIQUES FOR SCHEDULE CONTROL
            • Schedule change control system.
            • Performance measurement.
            • Additional planning.
          • OUTPUTS FROM SCHEDULE CONTROL
            • Schedule updates.
            • Corrective action.
            • Lessons learned.
        • COST CONTROL
          • GENERAL
          • INPUTS TO COST CONTROL
            • Performance reports.
            • Change requests.
            • Request for compensation of price escalation
          • TOOLS AND TECHNIQUES FOR COST CONTROL
            • Cost change control system.
            • Performance measurement.
            • Additional planning.
          • OUTPUTS FROM COST CONTROL
            • Revised cost estimates.
            • Budget updates.
            • Corrective action.
          • LESSONS LEARNED.
        • QUALITY CONTROL
          • GENERAL
          • INPUTS TO QUALITY CONTROL
            • Work results.
            • Checklists.
            • Inputs to other processes.
            • Operational definitions.
          • TOOLS AND TECHNIQUES FOR QUALITY CONTROL
            • Regular Inspection.
            • Statistical sampling.
            • Evaluation of contractor's work methodology and Approval for work permit
          • OUTPUTS FROM QUALITY CONTROL
            • Quality improvement
            • Acceptance decisions.
            • Rework.
            • Completed checklists
            • Process adjustments
        • PERFORMANCE REPORTING
          • INPUTS TO PERFORMANCE REPORTING
            • Service realization plan
            • Work results
            • Other project records
          • TOOLS AND TECHNIQUES FOR PERFORMANCE REPORTING
            • Performance reviews.
            • OUTPUTS FROM PERFORMANCE REPORTING
              • Performance reports.
              • Change requests
        • PROJECT RECORD
          • TYPICAL PROJECT RECORD FOR BUILDING WORKS
          • TYPICAL PROJECT RECORD FOR ROAD PROJECT
          • FIELD NOTE BOOKS
            • General
            • Field Notes
          • MATERIALS RECORDS
          • PHOTOGRAPHS
          • COST RECORDS AND REPORTS
          • PERSONNEL, SUPPLIES AND EQUIPMENT
MODULE 5: VARIATION AND CLAIMS UNDER STANDARD CONDITIONS OF CONTRACT
          • VARIATIONS IN THE WORK
          • GENERAL CONCEPTS
          • FORMAL CHANGE
          • RIGHT, OBLIGATION AND LIMITATIONS
          • CONSTRUCTIVE CHANGE ORDERS
            • Defective Plans And Specifications
            • Responsibility For Inaccurate Information
              REQUIREMENTS FOR VARIATIONS/ SUPPLEMENTARY AGREEMENT IN PUBLIC WORKS
            • Civil Code Of Ethiopia - 1960 (Contracts Of Work And Labour)
            • Proclamation Number 430/2005
            • Public Procurement Directive
            • Contract Provisions
            • Revisions Of Works
            • Extras Or Variation Orders
            • Responsibility for extra cost
            • Errors Discovered By The Contractor
          • METHODS OF PERFORMANCE
            • Improper Rejection
            • Over Inspection
            • Disruption Of Orderly Performance
            • Revised Owner Requirements
            • Impossibility Or Impracticability
            • Compressed Performance

VARIATION IN ESTIMATED QUANTITIES NOTICE REQUIREMENTS

MODULE 6: PREVENTING FUTURE CLAIMS

1. THE ROLE OF CONTRACT
- DRAFTING TO BALANCE LIABILITY
- SPECIFICAION REVIEW

2. ALTERNATIVE THEORIES OF RECOVERY

3. CLAIM RECOGNITION AND PREVENTION
- PREPARING CONTRACT DOCUMENTS
- SPECIFICATIONS FOR SCHEDULING
- Procedure
- CPM Schedule
- Construction Schedule
- WEEKLY PROGRESS REPORTS
- COMPLIANCE WITH THE SCHEDULE
- REQUESTS FOR PAYMENT
- SAMPLE PROVISIONS FOR IMPLEMENTION CPM
- UPDATING
- “AS-BUILT”

4. COST CONTROL TECHNIQUES

5. CONTRACT ADMINISTRATION
- Protecting the Record
- ALTERNATE BIDS
- MONITORING
- FIELD REPORTS
- COMMUNICATIONS
- VISUALS
- TESTS

6. DEALING WITH DISPUTES
- ISOLATING THE ISSUES
- Cost
- Time
- Relationships

MODULE 2: CONSTRUCTION PLANNING AND FUNDAMENTAL SCHEDULING PROCEDURES*
          • Construction Planning
            • Basic Concepts in the Development of Construction Plans
            • Choice of Technology and Construction Method
            • Defining Work Tasks
            • Defining Precedence Relationships among Activities
            • Estimating Activity Durations
            • Estimating Resource Requirements for Work Activities
            • Coding Systems
          • FUNDAMENTAL SCHEDULING PROCEDURES
            • Introduction
            • Types of Programme of Works
            • The Meaning of Programme
            • Types of Programme
              • The Bar Chart
              • Network Programmes
              • Activity-on-Arrow
              • Activity-on-Node
              • Logic Links
              • Linked Bar Chart
              • Critical Path Network
              • Line of Balance Method
            • The Role of the Programme
              • Function 4 Management Programme
              • Function 5 Compensation Programme

NOTE: - * this module is delivered only for supervisors under Module 2.

OUTCOME OF THE TRAINING

Trainees have been asked to mention some of the design and contract administration practice to be changed in the company based on the learning you gained from the training. Based on the learning outcome malpractices raised by trainees which call for action of the management, for better performance of the company, is categorized under the following issues:-

  • Practice of fixing contract time
  • Practice of allocating time for variation, consulting the client and the surety for variation
  • Performance bond requirement for variation
  • Using special condition of contract for disputable issues such as time required by the consultant to verify payment, dealing with concurrent delay and float period
  • Issues to be considered in approving work schedule in relation to the general requirements stated in the technical specification such as necessity of submittal schedule
  • Steps to be taken for motivating contractors to update schedule
  • Practice of selecting and specifying products such as consulting the client and providing different options
  • Issues and procedures to be followed in product approval
  • Procedures to be followed for benefitting from Performance bond during default of contractor before termination
  • Types of meeting and other tools to be adapted by the company for facilitating contract requirements
  • Developing procedures to get required submittals to be submitted by the contractor at different stages of construction
  • Operating procedures of the company to be applicable for monitoring contract controls
  • Steps to be taken to avoid future claims
  • Manuals required to be developed for the company’s effective contract administration practice