Chapter 1
Introduction
1.1 Overview
Construction industry is the most complex industry where various elements interact and are interlinked. Construction starts with planning, designing, executing and continues until the project is built and ready for use. The whole construction process (from undertaking of work to the delivery) is managed by a contractor. Contractor is responsible for the day-to-day oversight of a construction site, management of trades, and communication of information to the involved parties throughout the course of a building project.
The contractor’s primary role in the construction cycle is that of a resources manager, resources include men, machines, material, money and time. Apart from this contractor also needs to
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Management systems can be used to monitor and control the work. It enables contactor’s organization to improve continuously.
As mentioned earlier contractor’s responsibility is to manage time, cost, quality, communication, human resources, material and equipment. Contractor management system includes the management of all these factors. Hence the contractor management system should include, scope management, time management, cost management, quality management, human resource management, information management, safety management and contract management. 2.1 Scope management
Scope management for a contractor is required to know the actual work that is required to be done for a project. Scope of the project may be accessed at be beginning of the project to know the required work or to know the work required for the next phase after completion of a phase of work. It is mainly done for defining what is required and what is not required for a project.
Scope management Scope planning, scope defining, scope verification, scope change
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It is the contractor’s duty to complete the building in accordance with specifications mentioned in the contract. The contract management start before the contract formation it involves tendering negotiating and contract signing Contract initiation includes drafting and tendering, contract negotiation include contract sum, time period, payment procedural changes. Contract signing involves approval of the contract by both the parties and signing the documents.
Once the contract is signed between the contactor and owner contract execution Contract analysis and closing of contract will be the part of the contractor’s contract manager Contract execution includes audit compliances, amendments, notification, alerts and reports. Contract analysis include details, resources optimizations. Contract closing involves closing documentation, formal acceptance and closure.
Contractor organization needs to have the contract management to avoid fines and penalties, to avoid legal issues related to construction and delivery of the project. It mainly helps to avoid disputes between the contracting parties and helps in the execution of work without
The purpose of the construction contract is to distribute the duties between the different parties involved, distinguish and allocate the risk to the different parties, reduce the uncertainty surrounding the project and finally allow the parties to plan for the project and the future (Fortney, 2009). A contract is ultimately an agreement between two or more parties in which they agree to provide a specific task in exchange for something in return. The type of contract is simply the format in which the owner pays the contractor for the services.
The objective of this report is to present and discuss the management of field construction projects. These projects involve a great deal of time and expense, so close control and management is paramount if they are to be completed within the established time and cost limitations. The term construction management is applied to the provision of professional management services to the owner of a construction project with the objective of achieving high quality with low costs.
The overall job description of a construction project manager is simple, they plan, coordinate, and supervise construction projects from their development to their completion. However, the job is much more demanding and descriptive than that. Construction managers must prepare a variety of cost estimates, budgets, and timetables. They are responsible for contracting out specific jobs to skilled tradesmen such as the electrical, plumbing, masonry, and carpentry work. They must ensure all work on the job site complies with city legal requirements, safety codes, and other regulations. Throughout this entire process, they collaborate hand in hand with architects, engineers, lawyers, other construction managers, and clients. As one can see, the job of a construction project manager is incredibly descriptive and requires a variety of skills, but perhaps the most important of these
For this type of contract, contractor and design team are two separated body which respond directly to the client. Client hires the design team and select the most suitable a main contractor to carry out the whole project. Normally, for this type of contract, all the drawing and document had completed before the selection of contractor.
The site management and supervision is the most important strategy among the nine strategies. The contractors need to ensure all the parties that involve in the construction project to follow the timetables from starting of work until completion of project in time given. So, it will hinder the project from cost overrun. In addition, the contractors have to appoint Project Manager for supervise the construction quality and standard compliance based client
Procurement is a combination of different methods of purchasing construction objects and includes such variables as source of funding, partner selection method, price basis, responsibility for design, responsibility for management, and amount of subcontracting (Murdoch and Hughes, 2008). Before proceeding with a project, the appropriate procurement option has to be selected by the client that provide an effective organization to minimize all the risk that will be occur during the construction process. There are several procurement approaches that have to be taken in the construction industry such as the traditional method, design and build method, and management method. The selections of an appropriate procurement system to be used in a project are important to guarantee the success of the project. Consideration and analysis in selecting the appropriate procurement have to be made and it will include several main criteria such as cost certainty, time certainty, speed, and flexibility. Nowadays, the perspective of choosing the appropriate procurement is based on the past experience.
There are various standard forms of contract being used in the construction work, namely JCT (Joint Contract Tribunals), NEC (New engineering Contract), FIDIC (International Federation of Consulting Engineers). In which, Contract Administrator plays a key role as a referee between the Employer and Contractor.
Construction Management is the overall planning, outlook, coordination, budget and control of a construction project from start to finish. Without them, construction projects would be very unorganized and chaotic. They make sure projects run smoothly and efficiently. They work with electricians, plumbers, carpenters and general contractors to produce the safest and best way to complete the project for the customer. Being a construction manager is a good job because they help many people build what they need.
In construction industry there are numbers of standard construction form, models, templates are available, and choosing a particular contract is depending on type of procurement strategy that been selected by the clients and other parties. Generally the all contractors are containing the appliances for determine and conveying the situation while the contractor in a position to entitled for additional payments more than the real value of the project work.
...t, we should the statements in the contract and ensure all parties that follow and obey their obligations to lead the business successful. All action such as arrangement or payment is right and must follow the statements under the contract. Last but not least, regular evaluate and report performance of contract, do documentation clearly and follow up the policies or procedures if it is necessary to avoid any conflict or violate the contract law under unconscious.
This paper examines the legal aspects of procurement management and specifically how procurement management can be used as an effective tool for the overall management of a project. This paper focuses on the basics of common contract laws, the basics of agency law, the Uniform Commercial Code (UCC), and some aspects of that pertain to the Federal Acquisition Regulations (FAR). A summation of the company’s position in relation to a given supplier (provided the company decides not to procure all of the material in a contract) will be examined along with how that position is strengthened by understanding the legal aspects of procurement management. Finally, the paper will analyze how the project manager is supported by the contracting management function.
Contracts are based on agreements which arise from offers and acceptances where, in simple terms, one party makes an offer and the other party accepts the offer. The basic purpose of a contract is to establish agreements made by the parties involved while also establishing their rights and duties according to the agreement made knowing that any breach would be dealt with accordingly. For a contract to be legally binding or enforceable, some elements need to be considered, elements such as: offer and acceptance, consideration, capacity, certainty, and intention to create legal relations. Offers are valid when the terms of the contract are clearly stated. Also, an offer will include the intention to do business and as a final feature the offer
This paper explores what it takes to be a construction manager and the responsibilities of being a construction manager and the skills that a construction manager should have. It also explores what good construction managers do to have success on their construction projects and the steps that a construction manager must follow to end a project and meet their deadlines at the same
and is considered by many as one the most important steps of the process. The entering and contracting step will be utilized to set the pace and lay the foundation for the practitioner client relationship. They involve a preliminary evaluation of the organization’s opportunities for development, while
In general, there are different types of procurement type for various situations due to no one method can be suitable under the all different construction project. In this case, there are four procurement paths, which are traditional, design and build, management and design and manage, will be advised to use. However, each method has different aspects of advantages and disadvantages.