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5.quality and Defect
5.quality and Defect
5.quality and Defect
Institute of Technology
School of Civil Engineering
Postgraduate Program: Construction Technology & Management
Construction Contract & Law Course
Title: “Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) &
the PPA (2011) Conditions of Construction Contracts & the Applicable Laws”
Submitted by:
Group Members Id.No.
1. Aleshlign Gemechu Alemayehu PGCoTM/006/09
2. Atalay Getie Balew PGCoTM/000/09
3. Netsanet Zewdu Zafu PGCoTM/040/09
4. Yacob Badenga Minuta PGCoTM/047/09
Submitted to:
Ato Zewdu Tefera Worke
Engineering Contracts Lawyer
July, 2017
Hawassa, Ethiopia
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
Declaration
We, the undersigned, declare that this term paper is our original work and that all documents
analysis which are done in this term paper is analyzed by us. The matter embodied in this term
paper work has not been submitted earlier for any award to the best of our knowledge and belief.
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Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
Acknowledgment
We would like to express our deepest gratitude to our Instructor Ato Zewdu Tefera Worke
(Associate Professor) for initiating us to do this paper and his inspiration and guidance during
lecture class. We are also very glad to acknowledge the School of Civil Engineering for their
collaboration in preparing support letter to the company.
We are grateful for Zeleke Belay Architects plc for their support and giving relevant information
for our case study.
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Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
Abstract
Construction projects are always expected to create a balance between cost, time and quality to
avoid defects. It is possible to have high quality and low cost, but at the expense of time, and
conversely to have high quality and a fast project, but at a cost. High quality is not always the
primary objective for the client; however, it is extremely important to a successful project. An
appropriate level of quality could be determined during all phases of the construction project.
Specially, construction and commissioning are two critical phases where the project could impact
by its operability, availability, reliability, and maintainability of a facility. Ultimately, a facility
with a good construction quality program and minimal defects is more likely to have a smooth and
trouble free transition into the commissioning and qualification phase of the project. This creates
a great potential for quality improvements in construction projects, as the poor quality could
negatively effect to project failures. Therefore, the purpose of this paper is to investigate the
importance of quality for construction project success and defects that will occur in the project
life. Also liability of these defects with time dimension will be discussed.
Accordingly, quality, defect and defect liability related key literature were reviewed and a
framework of quality and defect prevention mechanisms for construction project success was
developed.
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Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
ACCRONYMS
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“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
Table of Contents
.......................................................................................................................................................... I
Declaration ...................................................................................................................................... II
Acknowledgment ............................................................................................................................ III
Abstract .......................................................................................................................................... IV
List of Table................................................................................................................................... VII
List of Figure ................................................................................................................................. VII
CHAPTER ONE ...............................................................................................................................1
1. Introduction ..............................................................................................................................1
1.1. Background .......................................................................................................................1
1.2. Statement of the problem ...................................................................................................3
1.3. Objective ................................................................................................................................3
1.3.1. General objective .............................................................................................................3
1.3.2. Specific objectives ............................................................................................................3
1.4. Significance of the Study ....................................................................................................4
1.5. Scope and limitation...........................................................................................................4
1.6. Methodology ......................................................................................................................4
CHAPTER TWO ..............................................................................................................................6
2. Literature Review......................................................................................................................6
2.1. Quality in General and its concept ..........................................................................................6
2.1.2. Quality management in construction ................................................................................7
2.1.3. Total quality management and its application in construction .........................................7
2.1.4. Factors that affect quality ................................................................................................8
2.2. Defect management in construction ........................................................................................9
2.2.1. Types of defects .............................................................................................................. 10
2.2.2. Liability for construction defects .................................................................................... 11
CHAPTER THREE ........................................................................................................................ 12
3. Introduction ................................................................................................................................ 12
3.1. Construction quality according to PPA 2011, MDB FIDIC 2006 & applicable laws ......... 12
3.2. Quality parameters .......................................................................................................... 13
CHAPTER FOUR .......................................................................................................................... 15
4. Introduction ............................................................................................................................ 15
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Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
4.1. Construction defect and its liability according to PPA 2011, MDB FIDIC 2006 &
applicable laws ............................................................................................................................ 15
4.1.1. Procedures for remedying defects ............................................................................. 15
4.1.2. Liability of defects with time dimension .................................................................... 16
4.2 Patent and Latent Defects ...................................................................................................... 19
4.2. Patent vs. Latent Defect ................................................................................................... 19
4.2.1. Contractual and/or legal effects of defective performance on the contractor with
respect to patent and latent defects .......................................................................................... 20
CHAPTER FIVE ............................................................................................................................ 21
5. Role of the Engineer in quality and defect management .......................................................... 21
5.1. Definition, and contractual relationships of engineer as per MDB FIDIC 2006, PPA 2011
and the Applicable laws .............................................................................................................. 26
CHAPTER SIX............................................................................................................................... 34
6. CASE STUDY ......................................................................................................................... 34
6.1. Introduction ..................................................................................................................... 34
6.2. Project information and relevant clauses from the construction contract documents ...... 34
6.3. Analysis and discussion .................................................................................................... 36
6.3.1. During performance period ...................................................................................... 36
6.3.2. During defect liability period .................................................................................... 36
6.3.3. During legal warranty period ................................................................................... 37
CHAPTER SEVEN ........................................................................................................................ 38
7. Comparative table ................................................................................................................... 38
CHAPTER EIGHT......................................................................................................................... 41
8. RECOMMENDATION AND CONCLUSION ............................................................................ 41
8.1 Recommendation ................................................................................................................... 41
8.2 Recommendations ................................................................................................................. 41
References ...................................................................................................................................... 44
List of Table
Table. 1; project information…………………………………………………………………….35
Table 7.1 comparative table…………………………………………………………………...39
List of Figure
Figure 1. Elements of total quality management in the construction process……………………9
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CHAPTER ONE
1. Introduction
1.1.Background
A contract of work and labor is a contract whereby one party, the contractor, undertakes to produce
a given result, under his own responsibility, in consideration of a remuneration that the other party,
the client, undertakes to pay him. (Civil code 1960, clause 2610)
Virtually all civil engineering structures are unique. [10] They have to be designed for some
specific purpose at some specific location before they can be constructed and put to use.
Consequently the completion of any civil engineering project involves five stages of activity which
comprise the following: [10]
1. Defining the location and nature of the proposed works and the quality and magnitude of the
service they are to provide.
2. Obtaining any powers and permissions necessary to construct the works.
3. Designing the works and estimating their probable cost.
4. Constructing the works.
5. Testing the works as constructed and putting them into operation.
Construction management is the jurisdiction of construction contractors or of construction
consultants, known as construction managers [2]. Construction contractors typically employ
supervisory and administrative personnel, labor, materials, and equipment to perform construction
in accordance with the terms of a contract with a client, or owner. Construction managers may just
provide construction advisory services to an owner, or, acting as an agent of the owner, contract
with others for performance of the work and provide administrative and supervisory services
during construction. This section provides guidelines for successful construction management [2].
Construction projects are among the most complicated of human enterprises [3].High levels of art
and craft are required to translate an owner’s vision into plans and specifications, then into real
structures, one that fits the needs of the individuals and the public [3]. In addition to technical
skills, the ability to coordinate the diverse efforts of many individuals is crucial to success. The
participants on any significant project include the owner, architect, engineer, project manager,
prime contractor, several subcontractors, suppliers of materials and equipment, materials
manufacturers, insurance companies, banks, owner’s lender, financers, etc. In most instances,
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
these partakers arrive at the project as a member of a staff or crew of distinctly different companies.
Problems crop up during construction projects due to delay, unexpected additional or extra work,
defective work, cost overruns, structural failure and accidents, late information, interpretation of
documents, unforeseen circumstances, etc. If these causes are not addressed, they result in
disagreements that may escalate into litigation. This escalating process will involve more people,
additional time, and higher costs [3].
Quality, cost and time have long been recognized as the main factors concerning the client.
However, for the majority of projects, the cost and time parameters are the main preoccupying
factors [6]. Project quality is often taken for granted and inadequate attention has been given to
this parameter. Rounds (1985) has noted that the attainment of acceptable levels of quality in the
construction industry has long been a problem. Subsequently, in the absence of effective quality
management procedures, considerable time, and resources are wasted every year [8]. This is due
to the high level of uncertainties surrounding the definition of quality and the subjectivity
associated with the assessment of quality as well as the large number of variables involved in its
assessment [4].
According to (Latham, 1996), the client is the core of the construction process and his satisfaction,
which is closely linked with the quality of the project, forms the central aim of all projects. To this
end, various attempts have been made to encapsulate the definition of project quality. These
include the following: [7]
a. Pleasing to look;
b. Free from defects on completion;
c. Delivered on time;
d. Fit for the purpose;
e. Supported by worthwhile guarantees;
f. Reasonable running costs;
g. Satisfactory durability.
The above definitions are largely subjective and vary with the knowledge and judgement of the
individual.
Construction projects with low quality will propagate defects. These defects are one of the major
causes of dispute and construction litigation. [9] Dealing with construction failures requires
various degrees of familiarity with law, building technology and practice. [9] There is often
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Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
disagreement when it comes to identifying what a construction defect is. This, of course, will be
down to the differing viewpoints and interests of those who are asking the question and/or making
the determination. [9] These parties typically include the builder, developer, contractor,
subcontractor, material supplier, product manufacturer and Employer.
1.3. Objective
1.3.1. General objective
Quality & Defect Regulation &Management under the MDB-FIDIC 2006 & the PPA 2011
Conditions of Construction Contracts & the Applicable Laws
1.3.2. Specific objectives
Quality Related
a). to define the concept & scope of quality in general & as related to construction;
b). to define & discuss the concept & scope of total quality management;
c). to discuss the importance of total quality management to construction;
d). to define & discuss the narrow concept of quality as related to construction;
e). to identify & discuss the contract documents in which the quality of the construction works
have been defined/specified; what quality parameters have been defined there;
Defect Related
a). to define & discuss defects in quality;
b). to identify & discuss each types of defects (i.e., quality deviations);
c). to identify & discuss the contractual procedure for remedying defects;
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Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
d). to identify & discuss the time dimension with respect to liability of the contractor for defects:
namely;
o during performance period;
o during defects liability period; and
o during legal warranty period i.e., after final acceptance or possession of the works by the
employer);
e). to discuss the contractual and/or legal effects of defective performance on the contractor, with
respect to patent & latent defects;
f). to define & discuss both the concept of patent & latent defects; and to compare both types of
defects;
g). to discuss the concept of warranty & decennial liability of the contractor;
to discuss the Role of the Engineer related to quality management & defect management
1.6.Methodology
The methodology used in conducting this study includes setting objectives and specify the scope,
literature review, survey of PPA 2011, MDB FIDIC 2006 related clauses and the applicable laws.
Also we support our study with case study and finally conclusion and recommendation.
The case study is a dormitory building project located at Hawassa University, Institute of
Technology, and the project is already constructed.
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Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
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Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
CHAPTER TWO
2. Literature Review
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Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
III. Fit-for-purpose sense: which relates the evaluation of a product or service to its ability to
satisfy a given need.
It is evident from the above that the prime direction of quality systems is to satisfy the internal
needs of the organization and its quality policies. Therefore, while these policies need to be cost-
effective, they should comply with the good practice that is acceptable within construction industry
[5].
When we come to the construction industry, quality is a crucial element in addition to cost and
schedule throughout the life of the construction projects. Because a successful project management
or construction management need optimization of these the three major attributes of the process
i.e. quality, schedule and cost.
2.1.2. Quality management in construction
If quality is the end, then quality management is the approach and process for getting there [1].
The extent to which the employer is protected from having to accept inferior work depends on the
adequacy of the architect’s description and specification of the work to be carried out [11]. Trade
contractors are obliged to ensure that all work conforms to the descriptions in the contract
documents, and that the relevant testing and inspection have been carried out. In fact, this is no
different to the approaches in general contracts, except that performance specifications are used
frequently in construction management and therefore there is more chance that trade contractors
are motivated to focus upon the performance of their contribution, rather than the letter of a
detailed schedule of items of work [11].
2.1.3. Total quality management and its application in construction
Attainment of acceptable levels of quality in the construction industry has long been a problem
[12]. Great expenditures of time, money and resources, both human and material, are wasted each
year because of inefficient or non-existent quality management procedures. The manufacturing
industry has developed Total Quality Management (TQM) concepts, first applied in Japan and in
recent years used in the United States, which have increased productivity, decreased product cost
and improved product reliability. These concepts are also applicable to the construction industry
[12]. TQM is an effort that involves every organization in the industry in the effort to improve
performance [12]. It permeates every aspect of a company and makes quality a strategic objective.
TQM is achieved through an integrated effort among personnel at all levels to increase customer
satisfaction by continuously improving performance. TQM focuses on process improvement,
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Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
customer and supplier involvement, teamwork, and training and education in an effort to achieve
customer satisfaction, cost effectiveness, and defect-free work. TQM provides the culture and
climate essential for innovation and for technology advancement [12].
The application of quality management and the Guidelines is designed to encourage and assist:
the management of projects and contracts by all customers and service providers to achieve
consistently the required outcomes,
a better customer service approach by service providers,
continual improvement in the delivery of project and contract outcomes and,
a consistent approach by agencies in specifying, and service providers in
providing/implementing Quality Management Systems, Quality Management Plans
(including design plans), and Inspection and Test Plans, and in monitoring their
implementation[13].
2.1.4. Factors that affect quality
Establishing the project requirements for quality begins at project inception. A careful balance
between the owner's requirements of the project costs and schedule, desired operating
characteristics, materials of construction, etc. and the design professional's need for adequate time
and budget to meet those requirements during the design process is essential. Owners balance their
requirements against economic considerations and, in some cases, against chance of failure. The
design professional is obligated to protect public health and safety in the context of the final
completed project. The constructor is responsible for the means, methods, techniques, sequences,
and procedures of construction, as well as safety precautions and programs during the construction
process.
Project requirements are the key factors that define qualityin the process of construction. The
process of construction can be broken down into three main phases, namely,
(1) the planning and design phase,
(2) the construction phase, and
(3) the maintenance and operation phase.
The figure shown below show generally accepted elements of total quality management system
and construction industry-specific factors that affect quality of the process of a building project.
The factors that affect quality in each phase of the construction process have been identified
through a literature review and are discussed in the following sections [12].
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Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
Figure 1. Elements of total quality management in the construction process (David Arditi and H
Murat Gunaydin, 1997)
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“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
The Quality Management Plan is used and updated regularly during the life of the project or
contract [13].
A Quality Management Plan would include clearly defined:
project or contract objectives
resources to be used, including management structure/personnel and their training for the
work
personnel responsibilities and authorities
process controls to be used to deal with the work and risks involved, including quality
procedures, and associated checklists, with methods for measurement/analysis
methods to be used to monitor and audit implementation
methods to be used to identify nonconformities, and implement corrective and preventive
actions
Methods to be used for document control and records management, including maintaining,
securing/protecting/storing, identifying, retrieving and otherwise controlling records for
the periods required and then their disposal [13].
2.2.1. Types of defects
According to Jeremy Glover 2000, construction defects can be grouped into the following four
major categories [9].
a) Design defects
b) Material defects
c) Specification problems
d) Workmanship defects
e) Natural problems; like land slide, earth quick, unpredictable high wind velocity.
f) Underground conditions defects; soil type, water table problems
a. Design defects
The design concept is sometimes difficult to convey in writing or in plans. While a design may
appear aesthetically pleasing or interesting, the reality may be that the design is inherently
deficient, is inappropriate for the location or intended use, or is difficult or impossible to achieve
without some deviation from the design intent. The design itself can be a defect causing damage
and potential liability for the design professionals [14].
b. Material defects
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Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
The installation of defective materials or improper products may cause damage to a project. The
defect in the product may not manifest itself for a period of time after installation, so the cause and
resulting damage due to defective materials can be difficult to determine [14].
c. Specification problems
This defect happens when the specification not clearly defined and not easily understandable. Also
this defect will happen when there is a great difference between the drawing and the specification.
d. Workmanship defects
The most common target in this type of case is defective workmanship. The design may be
adequate, and the materials used fully appropriate. Very commonly, however, contractors and their
subcontractors will utilize manpower which fails to conduct its work in accordance with the plans,
the building codes, industry standards, or installation instructions [14].
2.2.2. Liability for construction defects
The legal liability can be defined us the prior existence of some sort of legal or contractual
obligation. This show us liability for the defects in construction project is interpreted according to
the contract and/or law.
These defects may happen during construction stage or immediately construction completed or
beyond the defect liability period. Also type of defect and amount vary from time, project type and
location. So to solve problems related to defect liability, lawyers and/or construction
administrators use contract document and the country law.
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Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
CHAPTER THREE
3. Introduction
Quality can be defined as meeting the legal, aesthetic and functional requirements of a project.
Requirements may be simple or complex, or they may be stated in terms of the end result required
or as a detailed description of what is to be done. However, the quality is obtained if the stated
requirements are adequate, and if the completed project conforms to the requirements [H.
Mallawaarachchiand S. Senaratne](SECM). Some design professionals believe that quality is
measured by the aesthetics of the facilities they design. However, in the construction industry,
quality can be defined as meeting the requirements of the designer, constructor and regulatory
agencies as well as the owner. Chung(1999) stated that construction quality can be defined as the
meet of the requirements of the parties involved “meeting contractual requirements of the client,
legislative and regulatory requirements of the authorities, social requirements of the public and
even cost requirements of the contractor”.
3.1.Construction quality according to PPA 2011, MDB FIDIC 2006 & applicable
laws
According to PPA 2011, sub-clause 1.2n [Engineer], Engineer means a person named in the SCC
or appointed as such by the Public Body and notified in writing to the Contractor to act as the
representative of the Public Body to supervise and inspect works and to test and examine the
materials employed and the quality of workmanship, including any authorized representative of
such person.
All construction materials should delivered from a specified location as per the biding document
PPA 2011, sub-clause 80.1[Origin and Quality of Works and Materials] and the works, materials
and any activity shall as per the specifications, drawings, surveys, models, samples, patterns and
other requirements in the SCC and the engineer shall check its performance PPA 2011, sub-clause
80.2[Origin and Quality of Works and Materials]. Because the contractor is liable for the good
quality of the materials, provided by him Civil code1960, Art. 2614(1) [Materials provided by
contractor]. The engineer at all reasonable time have full access to see the sites where materials
are being obtained, progress manufacture of plant and manufacture of materials, and examine,
inspect, measure and test the materials and workmanship MDB FIDIC 2006, clause
7.3[Inspection].
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Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
3.2.Quality parameters
The engineer or his agent inspect, measure and test the components, materials and workmanship
are of as per the requisite quality PPA 2011, clause 81.2[Inspection and Testing]. The contractor
Perform quality tests and inspections as per the agreed time and place and allow the engineer to
access the place where test takes place. Also under, MDB FIDIC 7.4[Testing], the contractor shall
provide every equipment, apparatus, document, information, material, labor and qualified staff, if
necessary to perform the test, and shall agree the time and place with the engineer, and attach the
results copies to the engineer PPA 2011, clause 81.3&4[Inspection and Testing]. In addition to this
the client may at any time take experts to examine the progress achieved in the work, the quality
of the materials used and of the work completed Civil code1960, Art. 3028[Examination of work].
If the Engineer requires this Plant, Materials or workmanship to be retested, the tests shall be
repeated under the same terms and conditions MDB FIDIC 2006, sub-clause 7.5[Rejection], If the
engineer and the contractor disagree with the test result, each shall be given to other common
experts and re-testing will be performed and it will be documented PPA 2011, clause
81.6[Inspection and Testing].
If the test of components and materials passed the tests specified in the conditions of contract, the
engineer shall notify to the contractor and proceed to the effect. (PPA 2011, clause 81.5[Inspection
and Testing]
Prior to the start of the construction, the contractor shall submit manufacture’s standard sample of
material and any variations to the engineer MDB FIDIC 2006, sub-clause 7.2[Samples]. Any
technical acceptance is performed by the Engineer as per the request of the contractor prior to the
start of the work PPA 2011, sub-clause 80.3[Origin and Quality of Works and Materials].The
contractor shall employ the most recent technology, safe and effective equipment, machinery,
materials and methods to attain quality standards PPA 2011, clause 34.4[General obligation of the
contractor] and MDB FIDIC 2006, sub-clause 4.1[Contractor’s General Obligations].
The contractor shall have a quality assurance system to work according to the contract and submit
copies of quality assurance documents, test results and certificates of Materials and MDB FIDIC
2006, clause 7.4[Testing], and the engineer shall audit or check these documents and any quality
related aspects MDB FIDIC 2006, clause 4.9[quality assurance].
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Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
Reducing the quality to minimize expense of the employer will result lower service life and
operational efficiency MDB FIDIC 2006, clause 13.2c, ii [Value Engineering].So quality shall not
be compromised.
The contractor shall work with good workmanship practice in any of the activities during
construction and use non-hazardous materials according to the contract MDB FIDIC 2006, sub-
clause 7.1[Manner of Execution] and the administrative authority shall decide on the extent of
means to be employed both personnel and material Civil code 1960, Art. 3255[Personnel of the
undertaking and materials].
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Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
CHAPTER FOUR
4. Introduction
Definition
Black’s Law Dictionary (7th edition) defines„ defect‟ as meaning „an imperfection or
shortcoming‟, without identifying how the imperfection or shortcoming should be judged.
Cambridge Dictionary defines „defect‟ as meaning „A fault or problem in something that spoils
that thing‟ this definition is narrow because a defect not necessarily spoils the building.
According to JBCC series 2000 edition 5 Defect is “any aspect of material and workmanship
forming part of the works that, in the opinion of the principal agent, is due to the failure of the
contractor to comply with his obligations in terms of the agreement”
A construction defect is the shortcoming of the building, structure or components to be erected in
a reasonably workman-like manner or to perform in the manner intended by the manufacturer or
reasonably or expected by the buyer, which probably causes damage to the structure. Now a day’s
construction defects become common and often arising or seen in the construction project,
especially in the project which has poor management or supervision in the construction site.
Defects can affect success of construction project significantly. More specifically, it has major
impact on construction cost, construction time, and productivity and sustainability aspects also on
customer satisfaction. Work time, materials and equipment time are consumed to correct the
defect. Miss. Neha.V.Bagdiya1, Prof. Shruti Wadalkar21,2, (Department of Civil Engineering,
Pad. D.Y.P.I.E.T, Pune, India)(2)
Following are some of the consequences of defects;
Dissatisfied Customer
Extra cost borne by company
Delay in completion
Reduced Productivity.
4.1.Construction defect and its liability according to PPA 2011, MDB FIDIC 2006 &
applicable laws
4.1.1. Procedures for remedying defects
According to PPA 2011, clause 1.2j [Defect] Defect can be defined as any part of the Works not
completed in accordance with the Contract.
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Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
According to MDB FIDIC 2006, sub-clause 1.13[Compliance with Laws]First of all the contractor
shall fulfill the requirement of the law, such as pay taxes, duties and fees, licenses and approval in
relation to the execution and completion of the works and the remedying of any defects. Then ,If
a Party becomes aware of an error or defect in a document which was prepared for use in executing
the Works, the Party shall promptly give notice to the other Party of such error or defect MDB
FIDIC 2006, clause 1.8[Care and Supply of Documents] and The Engineer may issue to the
Contractor (at any time) instructions and additional or modified Drawings which may be necessary
for the execution of the Works and the remedying of any defects, all in accordance with the
Contract MDB FIDIC 2006, sub-clause 3.3[Instructions of the Engineer].
The engineer has the power to reject or re execute, if voluntary correct the defects specified by his
own expense, if not someone else will correct it and the public body will deduct the expense from
the contractor PPA 2011, clause 82.4[Rejection],any component, material and workmanship which
contradict with the contract or have low quality during the progress of the work or before start to
work and the engineer shall notice in written to the contractor PPA 2011, clause
82.1,2,3[Rejection] and (MDB FIDIC 2006, sub-clause 7.5[Rejection].The Contractor shall design
(to the extent specified in the Contract), execute and complete the Works in accordance with the
Contract and with the Engineer’s instructions, and shall remedy any defects in the Works MDB
FIDIC 2006, sub-clause 4.1[Contractor’s General Obligations]
4.1.2. Liability of defects with time dimension
4.1.2.1.During performance period
During performing the construction work, the contactor may face a defect problem or quality
deviation. These defects shall be notified by the engineer and the engineer order to remedy these
defects. If the contractor fails to remedy these defects with in time limit as specified in the contract,
the contract will terminate by the Engineer/public authority and another contractor will solve the
defect problem and the money will deduct from the former contractor PPA 2011, sub-clause
88.3[Defects Liability] and MDB FIDIC 2006, sub-clause 11.1[Completion of Outstanding Work
and Remedying Defects]. Because according to Civil code 1960, Art.3250 (1,2,3[Right of
administrative authorities] the administrative authority/engineer has the power to supervise the
performance of the work, and prescribe to the contractor the manner of performance of the work
and give decisions on defect measures. Also The Contractor shall provide all control and
supervision of the works, personnel, materials, plant, equipment and all other items, whether of a
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Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
temporary or permanent nature required in and for such design, execution, completion and
remedying of any defects, insofar as specified in, or can be reasonably inferred from, the Contract
PPA 2011, sub-clause 34.1[General Obligations of the contractor]. Also after the permission or
instruction to proceed is given, the Contractor and the Engineer shall jointly examine the Works
and the Plant and Materials affected by the suspension. The Contractor shall make good any
deterioration or defect in or loss of the Works or Plant or Materials, which has occurred during the
suspension after receiving from the Engineer an instruction to this effect MDB FIDIC 2006, sub-
clause 8.12[Resumption of Work]
4.1.2.2.During defect liability period
According to PPA 2011, sub-clause 88.2[Defects Liability], the Defect liability period shall
recommence from the date when the replacement or renewal was made to the satisfaction of the
engineer extended to as per the general conditions of contract and the contractor is liable for the
defects which are due to defective plants or materials or faulty workmanship or design of the
contractor and/or any act or omission during the defect liability period PPA 2011, clause
88.1[Defects Liability], Civil code 1960, Art. 2027(2)[Sources of extra-contractual liability] and
2028[liabilityGeneral principle]. If he fails to discharge his obligations under it contract, the
provisions regarding the non-performance of contracts shall apply in such case Civil code 1960,
Art. 2037(1&2)[Non-performance of a contract].
In case of emergency, where the Contractor cannot be reached immediately or, having been
reached, is unable to take the measures required, the Public Body or the Engineer may have the
work carried out at the expense of the Contractor. The Public Body or the Engineer shall as soon
as practicable inform the Contractor of the action taken PPA 2011, clause 88.5[Defects Liability].
According to the conditions of contact Fixed amount of money shall left as a retention payment
after provisional acceptance. The retention money will be paid to the contractor at the end of the
defect liability period. Also this money will released when the contractor correct any reasonable
defects PPA 2011, sub-clause 61.1[retention monies], MDB FIDIC 2006, sub-clause 14.9
[Payment of Retention Money].
The maintenance work which are normal wear and tear shall be carried out by the contractor. But
any exceptional risks and unforeseen conditions which create defects may not corrected by the
contractors expense. PPA 2011, sub-clause 88.6 and [Defect liability]& clause 44[Exceptional
Risks], MDB FIDIC 2006, sub-clause 17.3 [Employers risk],MDB FIDIC 2006, clause 11.1
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Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
[Completion of Outstanding Work and Remedying Defects], PPA 2011, sub-clause 88.8[Defect
liability].
The fact that an act has been carried out on the orders of a higher authority shall not necessarily
relieve the doer of liability Civil code 1960, clause 2036(1)[Hierarchical order].
If the Contractor fails to remedy any defect or damage within a reasonable time, the employer will
terminate the contract and remedied the defects by the expense of the contractor but before this the
engineer shall give a written notice to the contractor with reasonable time MDB FIDIC 2006, sub-
clause 11.4[Failure to Remedy Defects].
On the other hand if the remedied work is fail the test, further retesting will takes place if further
test fails, reject the work section or not allow benefits from the work or issue taking over certificate
to the contractor, as the employer wishes MDB FIDIC 2006, sub-clause 11.6[Further test], MDB
FIDIC 2006, sub-clause 9.4[Failure to Pass Tests on Completion].
4.1.2.3.After final acceptance or during legal warranty period and decennial liability of the
contractor.
The period of warranty is a period during which the administrative authorities have the possibility
of controlling the proper performance of the works before their final acceptance and its duration
shall be fixed by the contract, Art. 3277(1) [Period of warranty. - 1. Nature]. The contractor is
liable for the defects during legal warranty period and this defects are repaired when the public
bodies tell the contractor to do so, Art. 3278 (2) [Period of warranty. Effect]. According to Civil
code 1960, Art. 3039(1, 2, 3)[Warranty due by contractor], the contractor is liable for the defects
not less than ten year from its delivery, But according to MDB FIDIC 2006, sub-clause
11.3[Extension of Defects Notification Period] the contractor is liable for the defects not more than
two years and PPA 2011, sub-clause 88.7 [Defect liability] states the liability of the contractor
shall be indicated in the SCC if not it shall be 365 days.
Even if final acceptance is given to the contractor after remedied the works with in the defect
liability period, there might be a possibility for legal liability due to warranty obligation of the
contractor. This legal warranty period lasts for ten years calculated from one date of the final
acceptance of the works. This liability is called “Decennial Liability” due by contractor and it is
explained under Civil code 1960, Art 3039[Warranty due by contractor].
18 | P a g e
Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
19 | P a g e
Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
20 | P a g e
Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
CHAPTER FIVE
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Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
The legal basis that the Engineer has an agent role is stated in different sub-article reads as follows:
Whosoever hired out his (intellectual) work shall undertake to carry out in the best interest of his
client.
The Engineer, based on his contractual agreement with this client, acts as the agent of the
employer in the management of construction contract; The Employer shall appoint the Engineer
who shall carry out the duties assigned to him (i.e., to the Employer) in the contract;
The Engineer is not a party to a construction contract but performs the contractual obligations of
the employer (as an agent) in the name & on behalf of the employer (his client/principal);
Therefore, there is, legally, an agent & principal relationship between the Engineer & the
Employer; This agent & principal relationship between the Engineer & the employer (as his client
& principal) is regulated by their consulting services agreement (destined for project management)
& the provisions of the Law of Agency;
Under the agent role of the Engineer, it is the very mission of the Engineer to best protect the
legitimate interests of the Employer i.e., its client or principal; The nature of such relationship
between the Engineer & his principal (the Employer) is thus contractual;
The following types of duties may reveal the agent role of the Engineer in the management process
of a construction project & contract; power & function;
The power of the Engineer may reveal itself in the following instances: like the power;
22 | P a g e
Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
The legal basis for the professional role of the Engineer is Article 2636 (1) of the Civil Code: the
sub-article reads as follows: Whosoever hired out his (intellectual) work shall undertake to carry
out …in conformity with the practice & rules of his profession; (emphasis added) The Engineer is
a professional; His profession, as a matter of public policy, is regulated by law see Article 2632
(3): The regulation of his profession encompasses the following three phases: known as EEE;
Entry: the Entry to the profession: through professional certification process, registration &
licensing process;
Exercise: the continuous Exercise of such profession (through annual renewal of his professional
& business license); and
Exit: the Exit/termination of the exercise of his profession (due to say professional negligence or
professional misconduct; like by revoking the professional & business license); On such
regulatory requirement & process the employer has no influence or power; Due exercise of one’s
profession, as a matter of public policy, is therefore a matter of public interest; The dimensions of
the issues involved here are thus legal; The liability of the consultant or the Engineer as related to
his professional negligence is legal (as a matter of public policy & protection of public interest) as
regulated under Article 2031 of the Civil Code and not contractual as in the case of agent role.
Three types of the professional role of the Engineer are identified: These are:
design;
certification; and
decision;
The design function of the Engineer is clear; The Engineer becomes liable for design during
construction in the following two instances; the Engineer (now the supervision consultant) was the
designer himself; or the Engineer (now the supervision consultant) has assumed design liability by
reviewing & accepting all design documents done by another (design) consultant;
Payment certification; like monthly payment & final payment; event certification; like
performance or non-performance certification of the contractor (like completion);
Decision is related to: claims & others ,claims determination; determination on the claims of the
contractor; The idea behind such professional role of the Engineer is that the Engineer has to follow
the practice & rules of his profession in discharging his duties as related to certification & decision
making;
Legal Implications
23 | P a g e
Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
Liability: The Engineer himself becomes legally liable if he found to be professionally negligent
in terms of its design and/or supervision related professional services;
The dimension of the legal liability of the Engineer may extend:
to the client;
to the contractor; and
to the general public;
No contractual commitment is needed on the part of the Engineer to become liable legally since
its liability originates not from contract but from the law: see Article 2031 (Professional Fault)
under the Extra-contractual liability regime; The client is not liable for the professional negligence
of the Engineer; this is thus based on the independent & professional status of the Engineer.
The Project Management Consultancy has a wide variety of roles to play during the construction
process. Construction project gives benefits to the Customer / Client in terms of satisfaction and it
consists of business development, profit, resources utilization, etc. Because of this consultancy
plays a multifaceted part in the construction project, and is usually involved in the project from
the project’s inception to its completion. It is important to fully understand Project Management
Consultancy and authority. Doing so ensures that the Consultancy can be fully maximized on each
construction project. Normally the job is managed by the Project Manager and supervised by the
Construction Manager, and allied team of design engineer, construction engineer or project
architect. Efficiency in Management is needed to gain a higher level in competitiveness.
Description of roles and responsibility of engineer is mentioned below at each stages mainly
preconstruction stage, construction stage and post construction stage
Roles and responsibility of engineer at preconstruction stage
Analyze Client’s project related requirements
Prepare the Design Brief in terms of function ability, cost, time, quality and safety
Finalization of project organization chart.
Establishment of project communication and reporting system
Preparation of works breakdown structure
Preparation of Project Master Schedule with base line
Preparation of Design / Drawings deliverables schedule
Feedback on the Master Budget of the project
Co-ordination and follow-up with Architect and other design consultants for their inputs
24 | P a g e
Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
25 | P a g e
Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
5.1.Definition, and contractual relationships of engineer as per MDB FIDIC 2006, PPA
2011 and the Applicable laws
The “engineer” as per PPA (2011) is defined as follows:
“Engineer means a person named in the special condition of contract or appointed as such by the
public body and notified in writing to the contractor to act as the representative of the public body
to supervise and inspect works and to test and examine the materials employed and the quality of
workmanship, including any authorized representative of such person. Again in MDB-FIDIC
Engineer is defined as follows; “Engineer means the person appointed by the employer to act as
the engineer for the purpose of the contract and named in the contract data, or other person
appointed from time to time by the employer and notified to the contractor under sub-clause 3.4
(Replacement of the engineer)
The general Duties, Powers, Contractual relationships and limitation of the Engineer:
The general duties, powers, contractual relationships and limitation of the engineer are stipulated
in different clauses/articles of the PPA, MDB FIDIC (2006) and civil code of government of
Ethiopia. According to MDB FIDIC 2006, under sub-clause 3.1 the engineers’ duties and authority
is discussed as follows. As per sub-clause 3.1, the employer shall appoint the engineer who is
responsible to carry out the duties assigned to him in the contract. The engineers’ staff should
include qualified and competent engineers and professionals to carry out the duties given. The
engineer shall have no authority to amend the contract. The engineer exercises his authority
according to the contract. However, whenever the engineer exercises a specified authority for
26 | P a g e
Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
which the employer shall be deemed to have given approval. Except as otherwise stated in these
conditions:
(a) Whenever undertaking duties or exercising authority, specified in the contract, the engineer
shall be deemed to act for the engineer.
(b) The engineer has no authority to relieve either party of any duties, obligations or responsibilities
under the contract; and
(C) Any approval, consent, examination, inspection, instruction, notice, proposal, request, test, or
similar act by the engineer (including absence of disapproval) shall not exclude the contractor from
any responsibility he has under the contract
(d) Any act by the engineer in response to a contractor’s request except otherwise expressly
specified shall be notified in writing to the contractor within 28 days of receipt.
The engineer shall obtain the specific approval of the employer before taking action under the
following sub- clauses of these conditions: under sub- clauses 4.1: Agreeing or determining an
extension of time and/or additional cost, under sub- clauses 13.1instructing a variation, except; In
an emergency situation as determined by the engineer, or If such a variation would increase the
accepted contract amount by less than the percentage specified in the contract data, under sub-
clauses 13.3 approving a proposal for variation submitted by the contractor in accordance with
sub- clause 13.1 or 13.2, sub- clauses 13.4 specified the amount payable in each of the applicable
currencies.
Notwithstanding the obligation, as set out above, to obtain approval, if, in the opinion the engineer,
an emergency occurs affecting the safety of life or of the works or of adjoin property, he may,
without relieving the contractor of any of his duties and responsibility under the contract, instruct
the contractor to execute all such work or to do all such things as may, in the opinion of the
engineer, be necessary to abate or reduce the risk. The contractor shall forthwith comply, despite
the absence of approval of the employer, with any such instruction of the engineer. The engineer
shall determine an addition to the contract price, in respect of such instruction, in accordance with
clauses 13 and shall notify the contractor accordingly, with a copy to the Employer.
According PPA (2011) provisions on general duties, authorities, relationships and limitations of
the engineer are presented below.
27 | P a g e
Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
As per PPA 2011, sub-clause 12.1 Except as expressly stated in the SCC, the Engineer shall not
have authority to relieve the Contractor of any of his obligations under the Contract. Under PPA
2011 sub-clause 12.2 Any notice, information or communication given to or made by an Engineer
shall be deemed to have been given or made by the Public Body.
12.3 The Engineer may delegate any of his duties and responsibilities to Engineer's representative
after notifying the Contractor, and may cancel any delegation after notifying the Contractor.
12.4 The role of the Engineer’s representative shall be to supervise and inspect works and to test
and examine the materials employed and the quality of workmanship. Under no circumstances will
the Engineer's representative be empowered to relieve the Contractor of his obligations under the
contract or – except where express instructions to that effect are given in the SCC – order works
resulting in an extension of the period of performance or additional costs to be paid by the Public
Body or introduce variants in the nature or scale of the works.
12.5 Any communication given by the Engineer's representative to the Contractor in accordance
with the terms of such delegation shall have the same effect as though it had been given by the
Engineer, provided that:
(a) Any failure on the part of the Engineer's representative to disapprove any work, materials or
plant shall not prejudice the authority of the Engineer to disapprove such work, materials or plant
and to give the instructions necessary for the rectification thereof;
(b) The Engineer shall be at liberty to reverse or vary the contents of such communication.
12.6 Instructions and/or orders issued by the Engineer shall be by way of administrative orders.
Such orders shall be dated, numbered and entered by the Engineer in a register, and copies thereof
delivered by hand, where appropriate, to the Contractor's representative.
Power and Functions of the Engineer:
(As per GCC of MDB –FIDIC (2006) & the PPA (2011) and other applicable as related to ensure
quality & defect management)
Quality management includes the process required to ensure that the project will satisfy the needs
for which it was intended. It is implemented by means of quality planning, quality assurance,
quality control and quality improvement.
The functions and authority of the engineer in quality planning, quality assurance, quality control
and quality improvement can be identified and sorted out by examining the terms that the role of
the engineer is expressed and the power attached to it in the Clauses of MDB FIDIC (2006) and
28 | P a g e
Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
PPA in relation to construction quality and its deviation. After careful observation of the clauses
identified to contain quality and defect issues under GCC of those documents, the following words
or terms that indicate the function or the authority of the engineer taken as bench marks. Words or
terms like “instruction”, “approval/rejection”, “Certification/Verification”, “Notification”,
“Auditing (function and power)”, etc are believed to most likely indicate the power or authority
of the engineer in the clauses of GCC of the said documents. In the same argument words or terms
like “Inspection”, “Testing”, “Reporting”, “Communication”, “Designing and planning” etc are
function indicators. Based on these arguments the Clauses are grouped as presented below. are
grouped the words that activities and authorization terms like instruction, inspection, testing,
reporting, certificating/verified, communication, auditing quality assurance representation.
The clauses under MDB- FIDIC, 2006 and PPA, 2011 where the “instruction” (Authority or
Power) of the engineer expressed are:
MDB-FIDIC (2006)
In relation to quality, the following clauses
Clauses 3.3(the instruction of the Engineer), The Engineer can give instructions and additional or
modified Drawings to the Contractor which will be necessary for the execution of the Works and
the remedying of any defects, all in accordance with the Contract.
7.4 (Testing) Except specified in the Contract, the Contractor should provide all apparatus,
assistance, documents and other information, electricity, equipment, fuel, consumables,
instruments, labor, materials, and suitably qualified and experienced staff, as are necessary to carry
out the specified tests efficiently. The Contractor and the Engineer agree, the time and place for
the specified testing of any Plant, Materials and other parts of the Works.
The Engineer, under Clause 13 [Variations and Adjustments], instruct the Contractor to carry out
additional tests. And if these varied or additional tests show that the tested Plant, Materials or
workmanship is not in accordance with the Contract, the cost of carrying out this Variation shall
be borne by the Contractor, notwithstanding other provisions of the Contract. The engineer shall
give the contractor not less than 24 hours notice of the engineer’s intention to attend tests. If the
engineer doesn’t attend at the time and place agreed, the contractor may proceed with the tests,
unless otherwise instructed by the engineer, and the tests shall then be deemed to have been made
in the Engineers presence. ,
29 | P a g e
Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
7.6 (Remedial work) notwithstanding any previous test or certification, the engineer may instruct
the contractor to, remove and replace any materials which is not in accordance with contract, re-
execute any work which is not as per the contract, Execute any work which is urgently required
for the safety of the works, whether because of an accident, unforeseeable event or otherwise.
9.1(contractors obligation), The Contractor shall give to the Engineer not less than 21 days’ notice
of the date after which the Contractor will be ready to carry out each of the Tests on Completion.
Unless otherwise agreed, Tests on Completion shall be carried out within 14 days after this date,
on such day or days as the Engineer shall instruct. In considering the results of the Tests on
Completion, the Engineer shall make allowances for the effect of any use of the Works by the
Employer on the performance or other characteristics of the Works. As soon as the Works, or a
Section, have passed any Tests on Completion, the Contractor shall submit a certified report of the
results of these Tests to the Engineer.
9.2(delayed tests), If the Tests on Completion are being unduly delayed by the Contractor, the
Engineer may by notice require the Contractor to carry out the Tests within 21 days after receiving
the notice. The Contractor shall carry out the Tests on such day or days within that period as the
Contractor may fix and of which he shall give notice to the Engineer. If the Contractor fails to
carry out the Tests on Completion within the period of 21 days, the Employer’s Personnel may
proceed with the Tests at the risk and cost of the Contractor. The Tests on Completion shall then
be deemed to have been carried out in the presence of the Contractor and the results of the Tests
shall be accepted as accurate.
9.3(retesting), If the Works, or a Section, fail to pass the Tests on Completion, under Sub-Clause
7.5 [ Rejection ] shall apply, and the Engineer or the Contractor may require the failed Tests, and
Tests on Completion on any related work, to be repeated under the same terms and conditions.
9.4(Failure to pass tests on completion) If the Works, or a Section, fail to pass the Tests on
Completion repeated under Sub-Clause 9.3 [Retesting], the Engineer shall be entitled to: Order
further repetition of Tests on Completion under Sub-Clause 9.3; If the failure deprives the
Employer of substantially the whole benefit of the Works or Section, reject the Works or Section
(as the case may be), in which event the Employer shall have the same remedies as are provided
in subparagraph of Sub-Clause 11.4 [Failure to Remedy Defects]; or Issue a Taking-Over
Certificate, if the Employer so requests.
30 | P a g e
Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
According to Article 2636 of the Civil Code states about required care and responsibility as
follows;
(1) Whosever hires out his work shall undertake to carry it out in the best interest of his client,
conscientiously and in conformity with the practice d rules of his profession.
(2) He shall not be liable to his client, unless he commits an error, having regard to the rules of his
profession
(3) The error may consist in an omission or an act detrimental to his client
In relation to defects, the following clauses and sub-clauses are stated according to MDB- FIDIC,
2006
11.1(completion of outstanding work and remedying defects), In order that the Works and
Contractor’s Documents, and each Section, shall be in the condition required by the Contract (fair
wear and tear excepted) by the expiry date of the relevant Defects Notification Period or as soon
as practicable thereafter, the Contractor shall: accomplish outstanding work on the date stated in a
taking-over certificate, which is considered to be reasonable time by the engineer, and complete
all work required to remedy defects or damage, as notified by( or on behalf of) the employer on or
before expiration date of defects notification period. If a defect appears or damage occurs, the
Contractor shall be notified accordingly, by (or on behalf of) the Employer.
11.6(Further Tests), the engineer is required to undergo further tests stated in the contract if the
work of remedying of any defect or damage affect performance. This requirement is made clear
by notice within 28 days after defect or damage remedied. These tests shall be carried out in
accordance with the terms applicable to the previous tests, except that they shall be carried out at
the risk and cost of the Party liable, under Sub-Clause 11.2 [Cost of Remedying Defects], which
is for the cost of the remedial work.
11.8(contractor to search), the contractor is expected to search for cause of any defect, under the
direction of the engineer. Unless the defect is to be remedied at the cost of the Contractor under
Sub-Clause 11.2 [Cost of Remedying Defects], the Cost of the search plus profit shall be agreed
or determined by the Engineer in accordance with Sub-Clause 3.5 [Determinations] and shall be
included in the Contract Price.
It is also stated in PPA (2011) 88.1, 88.3, 88.4, regarding defect.
Approval /Rejection and certification authorities of the engineer provided under PPA 2011 Clause
82 states about the rejection of components and materials which are not according to the specified
31 | P a g e
Organized by; Aleshilegn, Atalay, Netsanet, Yacob
“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
quality. Special mark is applied to the rejected components or materials which shall not be to alter
them or affect their commercial value. Materials and components which are rejected shall be
removed by the contractor from the site within a period specified by the engineer. If the contractor
fails to do so, the materials and components shall be removed from the site at the expense and risk
of the contractor. Any work incorporating rejected components or materials shall be rejected.
Under PPA 2011 clause 82.2, states that the engineer has the power to order or decide during the
progress of works as well as before the works are taken over on issues discussed under here:
The removal from site, within such time limits as may be specified in order of any
components or materials which in the opinion of the engineer are not in accordance with
the contract.
The substitution of proper and suitable components or materials
The demolition and proper re-execution, satisfactory repair not withstanding previous test
therefore, any work which, in respect of components, materials, workmanship or design
by the Contractor should be in accordance with the contract.
As per PPA 2011 sub –clause 82.3, the engineer shall give notice to the contractor in writing of
his decision specifying particulars of alleged defects as soon as practicable. The Contractor shall
with all speed and at his expense make good the defects so specified. If the Contractor does not
comply with such order, the Public Body shall be entitled to employ other persons to carry out the
same and all expenses consequent thereon or incidental thereto may be deducted by the Public
Body from any monies due or which may become due to the Contractor.( according to PPA 2011
clause 822.4). It is also stated in PPA 2011 clause 81.2, the engineer is entitled either by himself
or his agent for inspection, examining, measurement, and testing of components, materials and
workmanship. The progress of preparation, fabrication or manufacture of anything being prepared,
fabricated or manufactured for delivery under the contract in order to establish whether the
components, materials and workmanship are of the requisite quality and quantity. This shall take
place at the place of manufacture, fabrication, preparation or on the site or at such other places as
may be specified in the contract.
PPA 2011 clause 81, The purposes of such tests and inspections are discussed as follows; the
Contractor shall: temporarily provide assistance, sample test, parts, machines, equipment, tools or
materials and labor required for inspection; shall agree with the Engineer on the time and place of
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Conditions of Construction Contracts & the Applicable Laws”
tests; shall provide access for the engineer at all reasonable times to the place where the tests are
going to be carried out.
According MDB FIDIC 2006, under clause 11.9 (Performance Certificate) Performance of the
Contractor’s obligations shall not be considered to have been completed until the Engineer has
issued the Performance Certificate to the Contractor, stating the date on which the Contractor
completed his obligations under the Contract. Performance certificate is issued by the engineer
within 28 days after latest expiration date of defects notification period or as soon thereafter as the
Contractor has supplied all the Contractor’s Documents and completed and tested all the Works,
including remedying any defects. A copy of the Performance Certificate shall be issued to the
Employer.
The power and function of engineer with respect to quality assurance is discussed in the following
clauses and sub-clauses.MDB-FIDIC 4.1, 4.9 PPA 37, 58.1Inspection related functions of engineer
as per clauses of MDB-FIDIC (2006) and PPA (2011). The role of engineer with respect to both
quality control and defect remedying is discussed at each clauses and sub-clauses of MDB-FIDIC,
2006 and PPA, 2011.
Quality control: MDB-FIDIC 7.4 (Testing), 7.5(Rejection), 9.2(Delayed tests), 9.3(Retesting),
9.4(Failure to pass test on completion)
Defect remedying: MDB- FIDIC 11.1b, 11.6 & PPA 88.1, 88.3, 88.4
Engineer’s quality compliance approval
The contractual procedures and instruments that are adopted by engineer in approval of quality
compliance as per MDB-FIDIC, 2006 and PPA, 2011 are assessed and presented below briefly
(a) During execution period of project: Engineer’s approval of testing of material during project
execution period is defined in clause 7.4 of MDB-FIDIC and clause 85.1, 85.2 of PPA. These
clauses express the procedures and instrument to be adopted by engineer in order to approve the
quality of the works.
(b) During completion and Defects Liability Period:
The procedures and instruments adopted by the engineer for approval of quality compliance of the
work on completion and defect liability period are described in clauses 9.1,10.1,10.2,10.3and
11.1(a & b) of MDB-FIDIC and clauses34.1,34.2,34.3,34.4,34.5,34.6,34.7 (Obligation of the
contractor), 86.1,86.2,86.3, (partial acceptance), and 88.1 (defect liability) of PPA (2011)
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“Quality & Defect; it’s Regulation & Management under the MDB-FIDIC (2006) & the PPA (2011)
Conditions of Construction Contracts & the Applicable Laws”
CHAPTER SIX
6. CASE STUDY
6.1.Introduction
Case study method enables a researcher to closely examine the data within a specific context [15].
In most cases, a case study method selects a small geographical area or a very limited number of
individuals as the subjects of study. Case studies, in their true essence, explore and investigate
contemporary real-life phenomenon through detailed contextual analysis of a limited number of
events or conditions, and their relationships [15].
In some case studies, an in-depth longitudinal examination of a single case or event is used. The
longitudinal examination provides a systematic way of observing the events, collecting data,
analyzing information, and reporting the results over a long period of time. In another example, a
researcher conducting a case study may examine the reading processes of only one subject over a
period of time [15]. In other words, a case study is a unique way of observing any natural
phenomenon which exists in a set of data. By unique it is meant that only a very small geographical
area or number of subjects of interest are examined in detail. Unlike quantitative analysis which
observes patterns in data at the macro level on the basis of the frequency of occurrence of the
phenomena being observed, case studies observe the data at the micro level [15].
6.2.Project information and some relevant clauses from the construction contract
documents
Based on the project document we took the relevant information about the project which help us
to support our paper.
Table. 1; project information
Project type Building (Five students dormitories)
Project location Hawassa university main campus
Employer Hawassa university
Engineer Zeleke Belay Architect Plc
Contractor Yirgalem general construction plc
Project Duration 730 calendar days
Defect liability period 365 days
Legal warranty period 10 years
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Conditions of Construction Contracts & the Applicable Laws”
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Conditions of Construction Contracts & the Applicable Laws”
i. Unless otherwise provided, the contractor is liable to the employer for the defect
of construction of the work during ten years from the day on which the
employer has entered into possession of the works.
ii. The warranty shall not be due however in respect of defects which were
apparent at the time of final acceptance of works
iii. The warranty shall apply to such defects only as prevent the works from being
used for the purpose mentioned in the contract or as render such use more
onerous or less profitable.
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Conditions of Construction Contracts & the Applicable Laws”
handrails defects, window ceiling defects, door fixtures problems, finishing defects, small cracks,
roof defects, conduit problems, and other normal wear and tear of the buildings.
As we have seen from the contract document the contractor is not liable for defects due to earth
quack. Also due to poor building maintenance management system, it’s difficult to identify clearly
weather the crack is due to earth quack or not.
6.3.3. During legal warranty period
The construction project is now giving service starting from 2007 E.C. According to Art. 3039
[Warranty due by contractor] The contractor shall guarantee during ten years from its delivery the
proper execution and the solidity of the work done by him and Any provision shortening the period
from ten years or excluding the warranty due by the contractor shall be of no effect. Also the
contract document assure the legal warranty period is 10 years.
But as we have seen the building, there are so many defects like sanitary problems, cracks, utility
problems, drainage problems and other defects are there. Only the university maintenance
department try to maintain the defects but it’s not enough. The contractor is not participating the
maintenance process.
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Conditions of Construction Contracts & the Applicable Laws”
CHAPTER SEVEN
7. Comparative table
After discussing all relevant clauses for our paper now we are trying to show differences in the
PPA 2011 and MDB FIDIC 2006 standard construction contract documents and the Civil Code
1960 applicable law. So the table below shows the deviations of this materials.
Table 7.1 comparative table
Clause PPA 2011 MDB FIDIC 2006 Civil Code 1960
All goods purchased under The contractor shall use non- The contractor shall be
the contract shall have their hazardous materials except as liable for the good quality
origin in any eligible otherwise specified in the of the material, Provided by
source country as defined Contract. clause 7[plant & him. Art 2614(1)[Materials
in the Bidding Documents material and workmanship] provided by contractor]
sub-clause 80.1[Origin &
Quality of Works and
Materials].
The works, components The Contractor shall carry out
and materials shall the manufacture of Plant, the
conform to all production and
requirements in the SCC. Manufacture of Materials, and
Sub-clause 80.2[Origin & all other execution of the
Quality of Works and Works according to the
Materials]. contact. Sub-clause
7.1[manner of execution]
The Engineer control The Engineer control quality Administrative authority
quality of materials or of materials or any item shall control the quality of
items incorporated in the incorporated in the site. the materials used and may
site and even after starting refuse them. Art. 3255
the work he has the power [Personnel of the
to reject clause 80.4[Origin undertaking and materials]
QUALITY
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clause 85.1[Test on
completion]
Defect liability period, Defect notification period, Period of warranty,
LIABILITY
The defect liability period The contractor is liable for the The contractor is liable for
of the contractor shall be defects not more than two the defects not less than ten
indicated in the SCC if not years, sub-clause 11.3 year from its delivery, Civil
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Conditions of Construction Contracts & the Applicable Laws”
it shall be 365 days, sub- [Extension of Defects code 1960, Art. 3039(1, 2,
clause 88.7 [Defect Notification Period] 3) [Warranty due by
liability] contractor],
Retention money shall not Only 50% of the retention Remedy the defects up to
release for the contractor money is enough to remedy period of warranty is
until final acceptance to the defect up to final performed by the
remedy defects. acceptance. contractor’s monies only.
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Conditions of Construction Contracts & the Applicable Laws”
CHAPTER EIGHT
8.1 Conclusion
The finding and conclusion of the discussion and analysis throughout the entire topics of this paper
suggest that there is a need to forward few recommendations in order to improve the construction
quality and its deviation management practice.
(a) On knowledge and practice of contract administration
The institution, organization and companies acting in constructing industry shall give a huge
attention to their attention to their contract administration department in order to clause the
observed knowledge and other basic resource needed for sound and effective management of
quality and its deviation
The practice of using and referring the contract document in the process of dealing with quality
and defect management issues shall be continuously monitored and evaluated internally both client
and contract organization .
(b) On GCC of FIDIC & PPA limitation in relation to management of quality and its
deviation issues
Both MDB-FIDIC(2006) and PPA(2011) standard GCC need to find a way to accommodate the
concept and mandatory clauses of modalities that provide contractual arrangements required to
implant TQM in each construction projects.
The authorities (legislation) responsible to formulate or amend the GCC of PPA (2011) need to
consider inclusion of a clause for quality assurance system mandate of the contract.
(c) On top management and leadership committed (to implement TQM)
There is a need for paradigm shift in the management and leadership in constriction industry
because the old conventional management being implemented now dramatically failed to meet the
overall requirement of dynamic market.
This is to mean the commitment of top management and leadership of both client and contractor
organization needs to be enhanced toward the implementation of TQM.
8.2 Recommendations
The objective of this semester paper was to generate findings from the problems addressed in the
literature review and forward recommendations based on the finding of the study.
Expected from Consultants
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The consultant is one of the key role players in construction projects that translates the clients’
needs and ideas in to plans and drawings and supervises the translation of these plans and
drawings into visible physical structures. The following recommendations are expected from
consultants.
1) Detailed and comprehensive site investigation should be done at the design phase to
avoid design change that lead to quality defect
The consultant should avoid the following
Lack of co-ordination between designer and also end users
Unsuitable design for the environment and the end users
Faulty design which are not fit for required function
Incomplete drawings
Expected From Clients/Project Owners
Clients are one of the most important parties who invest their money for realization of construction
project, and they are the key role players starting from conception through construction up to
operation of the project. The following recommendations are expected from clients.
Clients should allow sufficient time to prepare project briefs and other feasibility studies. Allow
sufficient time for proper feasibility studies, planning, design, information documentation and
tender submission. This helps to avoid errors and omissions that consequentially help in avoiding
or minimizing quality defect.
The client should avoid the following
1) Changing design and specification throughout the time
2) Extra orders changing quality by increasing or decreasing
3) Bad choice of material or method for the construction
4) Wrong information provided to the consultant and constructor
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Conditions of Construction Contracts & the Applicable Laws”
Contractors are one of the stakeholders who participate directly on the construction projects;
accordingly the following recommendations are expected from contractors.
Procure material
Effective workmanship
Efficient equipment
All stakeholders in the construction industry have to work for improving the out puts of the
construction industry and to sustain a healthy growth of the industry. Especially consultants,
contractors and clients have to use a holistic approach for solving problems in the construction
industry; they have to familiarize themselves to the latest technology and methods to solve
problems and look for solution proactively. Institutions and academicians in the construction
industry have to work hand-in-hand with practitioners in the industry. A combined effort of
stakeholders is necessary to apply the results of researches conduct in the construction industry.
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References
[1] . Graeme Knowles, Quality management, 2011./ and bookboom.com
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“Standard Handbook for Civil Engineers,”3rd ed., McGraw-Hill, Inc., New York, 1999.
[3] . Aberra Bekele, Alternative dispute resolution methods in construction industry, Un published
MSc thesis, Addis Ababa university, Addis Ababa July 2005.
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[5] . Building Employers Confederation, Quality Management for Builders, pp 4 (1990).
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Construction Management and Economics, P.D. Rwelamila and K.A. Hall, Vol 13, pp235-241
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www.fenwickelliott.co.uk
[10] Civil Engineering project management, Alan C. Twortand J. Gordon Rees, Fourth edition
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[11] Construction contracts law and management, John Murdoch and will Hughes, published in
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[12] David Arditi and H Murat Gunaydin, International Journal of Project Management.Vol.
15. No. 4, pp. 235-243, Printed in Great Britain 0263-7863/97, 1997
[13] Quality Management Systems Guidelines for Construction, Procurement Policy
Framework of the NSW Government, Third Edition 15 August 2013./
www.procurepoint.nsw.gov.au
[14] wall Templeton & Haldrup P.A., 1998, Common types of defects, Charleston, south Carolina I,
[15] Jurnal Kemanusiaan bil.9, June 2007,Case study as a research method,UniversitiTeknologi
Malaysia
[16] (IOSR Journal of Mechanical and Civil Engineering (IOSR-JMCE) e-ISSN: 2278-1684,p-ISSN:
2320-334X, Volume 10, Issue 6 (Jan. 2014), PP 14-19)
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Conditions of Construction Contracts & the Applicable Laws”
Appendices
Case study photo
Special conditions of contract for the case study construction project
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