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Topic 5: Quality Management Product’s • The specification requires that the product manufacturer provide

Definition instruction instructions for the method of installation of products that are installed
Quality • The degree to which a set of inherent characteristics conform to the by the sub-contractors who are not directly affiliated with the product
client’s requirements and are fit for purpose. manufacturer.
• Quality has a positive effect on the productivity; construction firms with Factory • A construction contract calls for inspection of production and
QMS tend to achieve higher productivity. Inspection fabrication facilities at a manufacturers plants as a part of quality control
• Better quality of works leads to less rejects and reworks which means requirements of the project.
less time and financial resources are wasted. • This provision is used mostly for large pre-fabricated products that are
• Quality of construction work is dealt with generally in the conditions of fabricated specially for each project, where it is impractical to perform
a contract and specifically in the technical specifications. tests and inspection at the job site or at a testing laboratory.
Cost of • Total cost of all effort related to quality throughout the project or • E.g. precast concrete pile, architectural precast column, post-
Quality product development cycle. tensioned/pre-stressed concrete and pre-fabricated roof truss.
QMS • A system that consists of plans, procedures and the organisation Matching • Sometimes a contractor is asked to base the quality of a product upon a
necessary to produce quality products or services. samples on sample that is placed on display during bidding o before work begins on
Quality • The process of examining the quality system or quality management display site.
Audit plan, often carried out by an internal or external quality auditor or an • To maintain effective quality control during construction, such sample
audit team to ensure the quality objective is met and identify the must later be stored at the construction site for ready reference as a basis
improvement method of acceptance.
• Example: ISO quality system, QLASSIC, CONQUAS • E.g. natural stones, tiles, precast concrete panels and concrete finishes
Mock up • The contractor needs to construct a mock up or prototype construction
Quality Assurance Quality Control assembly that will serve as the standard for the same type of construction
• Activities that monitor and verify that • Activities that monitor and verify that throughout the project.
the processes used to create the the project deliverables meet the Proven • Under this provision, the contractor is asked to provide proof that the
deliverables have been effective. defined quality standards. successful same type of product or similar products or equipment have been used
• The process is conducted during the • The process is conducted at the usage successfully in similar construction for a specific period of time.
execution of the project. completion of a product or deliverable. • The use of this provision is usually limited to M&E equipment that
• Reviews, process checklist, quality • Inspection and testing requires proof of safe, dependable, continuous operation for a number
audit. of years.
• It is generally used to specify items such as elevators, electrical
Quality Assurance and Quality Control Activities equipment, water and sewerage treatment plant equipment.
Testing • Testing is limited to those laboratory or field tests actually called for in Qualified • A provision of the specification that requires the procurement of certain
the specification. products contract be restricted to certain items that have been previously tested
list and approved and have been included in a list o approved items in the
• The Project Manager and Resident Project Representatives should
receive a copy of the test result. specifications.
• Testing is required for items of work that are critical and are particularly Certified • The contractor needs to provide a certificate that indicates that a product
susceptible to unsatisfactory levels of quality and cannot be generally laboratory meets specified quality requirements when the submitted sample is
be detected by observation. test report tested in accordance with certain specified laboratory standard tests.

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7 Principles of Quality Management • Provides you a standard assessment system for quality of workmanship of construction
Customer-focused work
• Organisation should understand current and future customer needs. • Enhances quality control of the construction work
• Should meet customer requirement and strike to exceed customer expectations. • Specified as a quality criterion for the contractor’s performance score card.
Leadership
• Leaders establish unity of purpose and direction. Objectives of QLASSIC
• Create and maintain environment so that the people involved in achieving organisation’s • To benchmark of level of quality in the construction industry.
objectives. • To have a standard quality assessment system for quality of workmanship of construction
Involvement of People work.
• All level of people with full involvement of their abilities for organisation benefits. • To assess the quality of workmanship of a construction project based on the approval
Process Approach standards.
• A desired result is achieved more efficiently when related resources and activities are • To be used as a criterion to evaluate the performance of contractors based on the quality
managed as a process. of workmanship.
System Approach to Management • To compile the data for statistical analysis.
• Identify, understanding and managing a system of interrelated processes for a given
objectives improves the organisation effectiveness and efficiency. Non-conformance occur due to:
Continual Improvement • Supply of materials not in accordance with the specification
• Continual improvement should be a permanent objective of the organisation. • Incorrect use of procedure, method of statement or inspection and test plan
Factual Approach to Decision Making • Incorrect use of material
• Effective decisions are based on the analysis of data and information. • Incorrect installation
Mutual Beneficial Relationship • Failure in the quality record system
• Organisation and supplier are interdependent.
• Mutual benefit relationship enhances the ability of both to create value. Role of Site Quality Manager
• Inspection company
Checking Construction Drawings • Representative of the client
• Incomplete and insufficient drawings • Monitor and control the works
• Insufficient and unclear details and drawings • Report to the site manager and client
• Insufficient dimensions. Have to scale off plan • Direct the contractor in implementing the quality system as defined in the project quality
• Plan, sections and elevations are not coordinated plan
• Lack of coordination between drawings from different consultants and different elements • Carry out quality audit with the site assurance manager
of design • Arrange and schedule the quality audit schedule
• Poor buildability which is not possible to finish off certain details • Proper arrangement important and allowed recommend on the preventive or corrective
• Not adopting modular coordination work
• Direct conversion from feet to inches to metric
Good Practice in Tender/Construction Stage
Why apply for QLASSIC? • Change procurement away from award to lowest cost
• No charges for assessment and processing fee for the time being • Showroom and sample units as quality benchmark
• Enables you to benchmark the quality of workmanship of the construction project • Materials sample approval
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• Inspection checklist for site supervisors • Risk factors (aspects):
• Industrialised building system - Risk Event: What might happen to the determent of the project such as the unwanted
changes.
Topic 6: Risk Management - Risk Sources: When, where and by whom the risk was identified.
Definition of Risk - Risk Probability: How likely the event is to occur?
• A course of action or inaction taken under the conditions of uncertainty which exposes - Risk Impact: The extent of loss that will happen or amount at stake, what is the cost?
the risk taker to possible loss or gain to reach a desired outcome. What are the possible gains?
• An undesirable situation or circumstance that is likely to cause a harm or a loss.
• Uncertainty is a random chance that something will happen with no way to control 3. Risk Analysis / Assessment
whether it happens. • A risk assessment is the careful examination of what in the work could cause harm to
• Project risks is an uncertain event or condition that will have a positive or negative impact people, so that the justification on whether sufficient precautions are taken or should do
towards the project objectives. more to prevent the harm can be carried out.
• Each risk has a likelihood or probability of occurring and possible outcomes if it occurs. • It aims to make sure that no project gets hurt or become ill.
• Residual risk: risk that remain after all of the response strategies have been implemented. • Steps to assess the project risks:
- List all the alternatives
• Secondary risk: a direct result of implementing a risk response.
- List the future consequences of each alternative
Definition of Risk Management - Identify the payoffs associated with each combination
- Assess the degree of certainty that these combinations will materialise
• The systematic process of identifying, analysing and responding to project risks to
- Decide on a decision criterion
minimise the likelihood of occurrence and / or potential impact of adverse events on the
accomplishment of project objectives throughout the project life cycle. • Sensitivity analysis and probability analysis can be used to quantify and analyse risk.
• Risk Management Planning: Deciding how to approach and plan the risk management • The choice of the techniques is considered by the type of risk, past experience and
activities for a project. expertise, impact of the risk factor and occurrence probability.
• Qualitative Risk Analysis vs Quantitative Risk Analysis
1. Risk Awareness Qualitative Quantitative
• Awareness of the areas of risk to which a project participant is exposed to. • Assess the likelihood and • Measure the probability and consequences of risks
• E.g. soil conditions, cost, safety & health and time impact of identified risks to and estimating their implications for the project
determine their magnitude objectives.
2. Risk Identification and priority. • Often follows with qualitative risk analysis. Both
• Identifying all possible events or conditions that might occur and may negatively impact • To prioritize their effects on can be done together.
the project performance. project objectives • Large, complex projects involving leading edge
• Determining the symptoms or warning signs that indicate when the risk is about to occur. technologies often require extensive quantitative
• Determining the root causes of the risk. E.g. identify the root causes of delay instead of risk analysis.
identify the failing to meet a schedule as a major risk. • Probability / impact matrixes • Decision tree analysis
• Risk identification can be achieved: • The top 10 risk item tracking • Simulation
- Interviewing the project participant or personnel • Expert judgement • Sensitivity analysis
- Brainstorming meetings with the interested parties • Probability / Impact Matrix
- Reviewing past company’s experience - It lists the relative probability of a risk occurring on one side of a matrix or axis on a
- Reliance on past experience of the risk analysis chart and the relative impact of the risk occurring on the other.
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- List the risks and then label each one as high, medium or low in terms of its probability - Having hurricane evacuation plans
of occurrence and its impact if it occurs.
- Can also calculate the risk factors which is the number that represents the overall risk b. Risk Transfer
of specific events based on their probability of occurring and the consequences to the • Involves shifting the risk burden from the participant to other party.
project if they occur. • This can be accomplished through the contract conditions or by insurance.
• Expert Judgement • The participant to whom the risk burden has been transferred will response by including
- Many organisations rely on the intuitive feelings and past experience of experts to an allowance in their price to cover the risk transferred to them.
help identify potential project risks. • Not all construction risks can be transferred to the other parties.
- Experts can categorise risks as high, medium or low, with or without more • Where risks cannot be transferred, the party can either avoid the activity with which the
sophisticated techniques. risk associated or retain the activity but take steps to reduce the risk.
- Can also help create and monitor a watch list which is a list of risks that are low
priority, but are still identified as potential risks. c. Risk Allocation
• Potential risk = probability of occurrence (Po, chance of the risk occurs) x probability of • Construction clients are noted for their unwillingness to take on project risks.
impact (P1, impact to project) • They use their contractual strength to allocate risks to the contractors/NSC.
• It is common for the clients to use exculpatory clauses to allocate risks to the contractor.
4. Risk Treatment / Response
• Developing the procedures and techniques to enhance opportunities and reduce threats d. Risk Removal / Avoidance
from risk to the project objectives. • If the level of risk is deemed unacceptable, the best approach is to deal with it is to remove
• Immediate response: an alteration to a project plan such that the identified risk is the activity with which the risk is associated.
mitigated or eliminated. • This may involve reassessment of project strategies, development of alternative design
• Contingency response: a provision in a project plan for a course of action that will only solution or redesign the project.
be implemented should the adverse consequences of the identified risk eventuate.
• Willingness of a contracting party to assume risk depends on: e. Risk Reduction
- Magnitude of risk and its impact • Try to reduce the uncertainties. E.g. collect more information, use more reliable suppliers
- Ability of the party to bear the consequences of the risk eventuating and design for easy production.
- Ability to manage the risks to advantage • Try to reduce the severity of the potential outcomes. E.g. purchase insurance, convince
- Extent of the benefit/return accruing from assuming the risk the customer to share the risk and impacts and train the employees to respond quickly.
- Ability to mitigate the risk factor
Risk Monitoring and Control
a. Risk Acceptance • Involves monitoring the residual risks, identifying new risks, executing risk reduction
• The participant has decided to take on the risk factors. plans, and evaluating their effectiveness throughout the project life cycle.
• This decision may flow from the ability to manage the risk to advantages, the inability to • Workarounds are unplanned responses to risk events that must be done when there is no
allocate the risk to a third party or the inability to avoid the risk. contingency plan.
• Contingency plan may be developed in case risk occurs. • Main outputs of risk monitoring and control are:
• A contingency plan is an alternative plan used if a risk event or condition occurs. - Requested changes
- Having a backup supplier for a key material - Recommended corrective and preventive actions
- Carrying a safety stock for a key part - Update to the risk register, project management plan and organisational process assets.
- Having an alternative distribution channel to send products from other countries

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Topic 7: Safety and Health Management Company’s Safety and Health Programme
Written Statement of Safety and Health Policy • A statement of the company policy
• An employer or self-employed person must prepare and periodically revise a written • The objective of a safety and health program
statement. • The appointment, duties and responsibilities of a safety and health director or manager
• Content: general policy statement, organisation and arrangements • Responsibilities of site management in administering the plan and their relationship with
• The employers should inform all employees of their written safety and health policy, the safety and health director
review and revise the policy as appropriate from time to time and inform the employees • Procedures for reporting the job-related injuries and illness
of any revision to the policy. • Working rules and regulations of the safety and health programme
• The contents of the policy shall made known to the employees during the induction and • A hazard communication programme
job training. • Procedures for dealing with safety and health violations and violators
• The general policy statement should be displayed at strategic location in the workplace.
Objective of a Safety of Health Programme
General Policy Statement • Reduction in lost time
• Indicate the management accept responsibility for safety and health of the employees. • Avoidance of much pain and suffering
• Outline the goals of the policy. • Reduction in insurance and operating costs
• Establish the importance of safety and health to overall business performance.
• Bear a reference to other parts of the policy document which go into more details. Duties of Safety and Health Manager
• Be dated and signed by the chairman or managing director. • Coordinate and monitor the Accident and Disease Prevention Programme.
• Oversee accident / disease investigation
Organisation • Oversee proper use of safety equipment
• The list of safety and health responsibilities of all levels of management, from top • Performing frequent jobsite safety inspections
management down to supervisors and safety and health personnel. • Continual review of job safety reports and preparation of monthly summaries of safety
• The role of workers in the implementation of the policy. Each employee has a duty not violations and field inspections
to endanger himself or others by his actions or omissions and to cooperate in all measures • Documentation of critical conditions and corrective steps to be taken
provided for his safety and health. • Review and take action on all safety program violators.
• The structure and functions of safety and health committee and other in-house safety and
health organisation. Responsibility of Site Management
• The site manger is the first line of defence in any accident and disease prevention
Arrangement programme.
• The arrangements for training and instructions. • They should be trained in accident and disease prevention.
• Information about whatever hazards there may be in certain processes, the control • Developing the means of communicating accident and disease prevention programme to
measures and the ways in which the employees should cooperate for their own safety and everyone on site.
health. • Drawing up and maintaining a safety manual which must among other things include
• Specify the company’s safe system of work, including safety work procedures and rules. provisions for weekly toolbox meetings
• Scheme for the issuance, use and maintenance of personal protective equipment (PPE). • Implementing
• The procedure for reporting and investigation of activities.
• Emergency measure such as fire and first aid arrangements. Effectiveness of Safety and Health Programme
• Planning all work in such a manner to avoid the situation of unsafe and unhealthy work.
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• Maintaining a system for prompt detection and correction of unsafe or unhealthy • Explain the disciplinary policy and made it known to all workers and to be part of the
practices and conditions. orientation safety programme for new workers.
• Making available and enforcing the use of personal protective equipment (PPE). • Each worker should sign an acknowledgement sheet indicate that the worker has received,
• Maintaining an effective system of tool and equipment inspection and maintenance. read and fully understood the policy.
• Establishing an educational programme in the basics of accidental and disease prevention • Safety violation should be reported and dealt with promptly.
by instituting the new employee orientation programme, periodic safety meeting or use
and distribution of safety bulletin or information. Site Safety Signages
• To aware workers of the PPE required in site
Procedures Relating to Injury and Illness Reporting • To alert
• Obtain details of incident • As a correct mind set
• Evaluate against the sample frame • As a reminder
• Contact and visit site • To minimise risk
• Interview involved persons, site supervisor and H&S staff
• Evaluate the accident area and environment Waste Management
• Review of report by independent expert panels to identify the issues for follow up • Poor waste disposal system which may allow unnecessary accident to occur and harm to
• Follow-up studies (off site) safety of the worker.
• Complete accident study report • The waste materials should be dumped at the proper dumping site.
• Each type of materials is nicely grouped.
Working Rules and Regulations of the Safety and Health Programme • If all different materials are put in one place, it looks messy.
• Outlines the specific items of protective equipment such as googles or face shields for
metal cutting trade, ear plugs when operating the noisy equipment. CCTV
• Separate training programme in the proper use of certain tools or work situations • Supervise the work
considered highly hazardous. • Record the construction progress
• Red-tagging should be included in the rules and regulations for the defective equipment. • Ensure safety of the site
• Detailed procedures for proper use of electrical extensions and electrically operated tools.
Temporary Shoring
Hazard Communication Programme • The temporary shoring is set up at the basement/
• Certain products used on construction sites contains hazardous materials. • To prevent any landslide occur.
• The hazard communication programme highlights the attention to the proper handling, • To assure the safety of workers.
storage and use of these products. • To avoid severe cracking.

Procedures for Dealing with Safety and Health Violations and Violators Falling Hazard and Fall Protection
• Monitor the safety violations. • Barriers to avoid falling into the excavated holes.
• The entire programme fails if the worker perceive that the company is lax in dealing with • A fall arrest system is a system that will stop a worker’s fall before the worker hits the
violations. ground below.
• Drawing up, implementing and reviewing together with workers’ representatives the • A fall restraint system is a system that restrains the movement of a worker to position the
company’s disciplinary policy with regards to safety and health violations. worker or to prevent the worker from moving to an edge.

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• These systems may include the body harness, lanyard, shock absorber, lifeline, Reasons for Poor Records of Safety, Health and Welfare
connecting device and anchorage. • Mistaken idea that safety, health and welfare programme is of little or no benefit to the
firm.
Ladder Hazards • Effects of poor safety, health and welfare are not directly felt.
• Ladders with missing or broken parts. • Construction workers non-unionised.
• Using a ladder with low weight rating. • High proportion of small firms and of self-employed workers.
• Using a ladder that is too short for the purposes. • The variety and comparatively short life of construction sites.
• Using metal ladders near energized electrical components. • There are many different trades and occupation.
• Objects falling from ladders.
Benefits of Effective Safety and Health Programme
Ladder Safety • Maximize the well-being and productivity of all people working for an organisation.
• Never allow more than one person on a ladder. • Stop people getting injured, ill or killed through work activities.
• Use tool belts or hand lines to carry objects. • Improve the organisation’s reputation in the eyes of customers, competitors, suppliers,
• Do not lean out from the ladder to any direction. other stakeholders and the wider community.
• If you have a fear of height – don’t climb a ladder. • Avoid damaging effects on turnover and profitability.
• Do not allow others under a ladder in use. • Encourage better relationships with workers.
• Minimize the likelihood of prosecution and consequent penalties.
Head Protection
• To protect the head from the impact and penetration of failing or flying objects in the Direct Costs
workplace. • Direct costs of accidents are paid in the form of compensation payments.
• E.g. headgear / safety helmets. • These compensation payments are usually paid by the contractor’s insurer.
• Costs to the contractor is in the form of premium paid.
Foot Protection • Poor safety records may attract higher insurance premium.
• Protect against falling objects, rolling objects, punctures through the sole, electrical • Insurance companies may spread the risks across the industry or discriminate between
hazards, slips and temperature extremes. the good and poor safety performers.

Eye and Face Protection Indirect Costs


• Safety googles and face shield. • Indirect costs will be a bigger incentive to contractors to keep a good safety record.
• Designed for high mass, low velocity impact. • Stoppage work orders in the event of a serious accidents which results in project delay.
• Protection from the injury by physical agents, chemicals agents or radiation. • Injured workers costs, loss of productive time and lower productivity on return to work.
• Glass safety googles: greater resistance to abrasion, scratching and most chemicals. • Crew costs, loss of productivity due to disruption, low morale and replacement wit new
• Plastics safety googles: more resistance to high speed projectiles, breakage by sharp worker.
objects and more shatter-resistant at extreme temperatures. • Cost of hiring replacement worker.
• Supervisory costs, assisting the injured worker, investigating the accident, preparing
Lifting Hazard accident report, time spent with regulatory inspectors.
• Back injuries are typically caused by improper lifting, ergonomic factors and personal • Damage to company image.
lifestyles. • Reduced changes of getting new jobs.
• Can be prevented by getting help from the other or use the right tools • Scare people who want to enter the industries, or worker demanding more pay.
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Duties of Employer Topic 9: Contract Management
• Client and contractor both are considered as employers. Definition
• The employers are responsible for all matters relating to safety and health because they • An attempt to manage all process and documentation procedures, covering payment,
have the greatest degree of authority and control over the operations of the workplaces. timing, taxes among others.
• To ensure the safety, health and welfare at work of all his employees and visitors. • To ensure the fulfilment of contractual obligations and safeguard the right.
• To formulate safety and health policy. • Keep up-to-date records of essential information.
• To provide the necessary training to protect workers’ safety and health before they begin • Be proactive instead of reactive to changes.
a new job. • Timely response to change situation.
• To take necessary precautions to ensure that other persons are not exposed to safety and
health risks due to the activities of the workplace. Selection of Consultants
• To consult and cooperate with the workplace safety and health committee. • Consultant must be more thoughtful when doing design for client.
• To cooperate with other people on workplace safety and health matters. • Not only thinking on the design but also the practicality and cost.
• To avoid changing in design in the adequate expertise for the particular development.
Duties of Safety and Health Officer • Increase the requirements in selecting the contractors.
• To ensure the safety and health of employee.
• To inspect the workplace and take part in inspections. Selection of Contractors
• To investigate serious accidents, dangerous occurrence and occupational diseases. • Insufficient technically competent and experience contractor
• To investigate accidents, check their reports and implemented risk control measures. - Poor management of staff and material control and eventually cause delay of works.
• To keep statistics on accidents, diseases and dangerous occurrence. • Contractor are not hands on
• To act as secretary to the safety and health committee. - Never go to site to check the work progress but based on what is reported by their
supervisors and QS.
Duties of Contractor and Supplier - Having meeting at office instead of site.
• To provide sufficient information - Contractor should attend the regular site meeting which also attended by client and
• To eliminate or reduce hazard consultants.
• To build and fix the equipment with safety feature • Insufficient financially capable contractor
- Developer should pay them on time to avoid the workers delaying or stop work.
Duties of Employee
• To take reasonable care for the safety and health of himself and of other persons who Documentation Management
may be affected by his acts or omissions at work • Ensure tender/contract document are free from discrepancies, scope of works and
• To cooperate with his employer or any other person in the discharge of any duty or responsibilities are well defined with no room for assumption.
requirement imposed on the employer or that other person by the Act or any regulation • The procurement system must be suitably selected that particular project.
made thereunder. • Accurate, up-to-date record keeping are crucial throughout the project.
• To wear or use at all times any protective equipment or clothing provided by the employer • Contemporaneous project documents usually provide the most reliable account of a
for the purposes of preventing the risks to his safety and health. project’s history.
• To comply with any instruction or measure on occupational safety and health instituted • It is essential that a well-documented, logical cause-and-effect relationship exist between
by his employer or any other person by or under this Act or any regulation made any unanticipated events and their consequences.
thereunder. • Without this information, it may be impossible to demonstrate the full effects of the
events that occurred at a subsequent time.
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Working Procedures Consequences of VO
• Working and submission procedures are well laid down at the on-set of the project as to • Increase or decrease of cost of varied work
avoid miscommunication and misunderstanding between project team members. • Cost of delay and disruption in terms of direct lose and/or expense and extended
• Obtain agreement from all parties on the reporting formats and intervals. preliminaries.
• Ensure timely recording and submission. • Delay and disruption to contract. E.g. extension of time to contract period.

Commencement of Contract at Site Delay and EOT


• Site possession • By Employer (EOT Allowed)
• Submittals: construction drawings, shop drawings, samples, QA and documents, health - Instruct the contractor to accelerate the work
and safety documents, method statements and financial projections. - Late payment
- Late material supply by the employer
Monitoring of Work Progress - Execute work not forming part of the contract
• Progress report, site records, site meetings (site possession, progress/site, NSC - Late site possession
coordination, ad-hoc) and miscellaneous issues. • By Consultant (EOT Allowed)
- Late issuing construction drawings
Payment- Challenges - Late change order
• Certificate fundamentally inaccurate • By Contractor (EOT Not Allowed)
• Certificate not in correct sum - Due to contractor’s own acts and/or omissions
• Certificate issued by unauthorised person - Due to contractor’s sub-contractors/suppliers’ issues
• Certificate issued in unauthorised manner • By Others (EOT Not Allowed)
• Certificate issued out of time - Due to natural event. E.g. force majeure, inclement weather
• Certifier acting “ultra vires” - Civil commotion and strikes
• Certifier improperly pressurised or influenced - Exercise by government of any power which directly affects the works
• Certificate subject to fraud or collusion
• Fraud, dishonesty, fraudulent concealment by the contractor Content of EOT Application
• Appropriate contract references to such event of delay
Variation / Changes • Cause of delay
• Increase or decrease quantity of work • Details of effect of delay on work programme
• Omit work • Estimated length of delay
• Change character, quality, kind, levels, position, dimension, timing or sequence of work • Steps taken / proposed to minimize / avoid delay
• Execute additional work of any kind • Estimated of extension of time required
• Scheduling documentation
Limitation to Variation • Other supporting documents
• Power to vary work confined to genuine omissions.
• Power to vary to confined scope of works contemplated by parties at time of contracting. Sources of Information
• Invalid if the effect of omission is to give to third parties and the effect of variation is to • Official work records
substantially change scope of work. • Official progress reports
• Site diaries
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• Correspondence such as letters, instructions, memorandum. • Ends restriction on the opening of arbitration
• Drawings
• Official minutes of meetings Taking Over
• Work programme • Issue of relevant completion certificate
• Third party records / reports (from authorities) • Completion of testing and commissioning
• Procurement records • Training of employer’s operation and maintenance personnel
• Delivery orders • Handover of all ‘as-built’ drawings, documents and records
• Shipping / air freight record • Handover of all keys
• Handover of all necessary tools
Condition Precedent of LD • Handover of all spares
• Contractor shall fail to complete on time. • Handover of approved/clearances from statutory authorities
• Contract administrator shall determine and issue any EOT due to the contractor. • Identification of latent defects and outstanding works
• Contract administrator shall certify that no further EOT are due to the contractor.
• Contract administrator shall issue a Certificate of Non-Completion Principal Steps in Issuing Final Financial Certificate
• Employer shall give written notice to the contractor of his intention to deduct LD. • Assessment of the completion cost
• Assessment of the final contract sum
Rights of Employer upon Determination • Establishment of the difference between the final contract sum and completion cost
• Recover site possession • Issue of the final financial certificate to contractor
• Complete the remaining works
• Use any temporary buildings, works, lands to complete the remaining works Construction Dispute-Causes
• Use any unfixed materials on site to complete the works • Client Issue
• Require the contractor to remove and if not removed to sell off any temporary materials - Make payment late
and plants that is no longer required on site - No payment
• Require assignment of benefits of any sub-contractors’ arrangements - Instruct to accelerate work completion
• Pay any supplier or sub-contractors directly - Late engagement of NSC
• Refrain from making any further payment to contractor until the completion of all works • Consultant Issue
- Issue work order late
Principal Effects of CCC/CPC - Issue drawing late
• Marks the end of construction period - Inaccurate valuation
• Contractor’s right to site possession stops - Increase scope of works
• Contractor’s liability for care and security end - Failure to inspect works in progress regularly and timely. Only condemning when
• Certificate of Interim Payment ends works are completed
• Employer to release one moiety of retention sum • Contractor Issue
- Late handover of project
• Defects Liability Period starts
- Quality not acceptable
• Commencement of period of final measurement and validation of the works
- Non-compliance of work requirements
• Contractor’s liability to insure the work ends
- Non-completion
• Contractor’s liability for liquidated damages ends
• Others: Weather
• Contract administrator’s power to order variation stops
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