CONSTRUCTION MANAGEMENT 105D

UNIT 9: SITE ADMINISTRATION & COST CONTROL

Adebowale OJ
adebowaleoj@tut.ac.za
 Learning outcomes

• Site handover

• Site layout

• Construction meetings

• Materials management
 Site handover

• The site handover shall commence with a site

handover meeting chaired by the Project
Manager / Principle Agent.

• The Contract Agreement comes into effect

on the date Contractor receives one fully
signed copy of the Form of Offer and
Acceptance
 Site handover

• A copy of the signed original Form of Offer

and Acceptance is given to the Contractor at
site handover

• The following persons must be present: Project

Manager and other consultants, contract manager,
site manager, OHS representative, CLO etc.
 Site handover
Tender Tender Acceptance Site Handover /
Closes Approval Commencement
Date

Acceptance section
of Form of Offer and
Acceptance signed by Site handover date
Delegated Officials is Commencement
Date of Contract

Construction Period

Contractor to furnish:

- Proof of insurances
cover
- Priced Bills of Quantities
etc.

Letter of intent for Copy of Form of Offer

contract award is
faxed to contractor
and signed
Acceptance handed to
contractor and
Site handover flowchart
Contract Documents
 Site layout / organisation

• Construction site layout involves placing

temporary facilities within the boundaries of
construction site.

• Construction site layout considers:

site access and traffic routes,
materials storage,
mobile and static plant positioning,
site offices,
temporary services,
temporary fencing,
health and safety.
 Access and traffic routes

Vehicle access gate Pedestrian access gate

 Materials storage

Open storage Secured and waterproof storage

Mobile and Static Plant
The major
difference
between mobile
and static cranes
is their mobility.

As their names
suggest, static
cranes are fixed
to a single spot
once they have
been setup.
Whereas, mobile
cranes can be
moved when
necessary
 Construction Meetings
• The purpose of site meetings is to review the
project’s progress in line with the contract’s
objectives in order to address factors that are
affecting or have the potential to affect the
project.

• The three types of meetings in construction

include: Project, site, and domestic
meetings.
 Project Meeting
• Generally called by the Architect / Project
manager who may expect the following
individuals to attend: other consultants, main
contractors' representatives (contracts manager
and site agent), nominated subcontractors and
suppliers representatives.

• The notice of the meeting will state in clear terms

the parties that should attend the project
meeting.
 Site Meeting

• Generally called by the contracts manager to

review progress of construction projects.

• Parties expected to be in attendance include: site

manager, subcontractors, suppliers, H&S officer
and other site staff that may be invited.
 Domestic Meeting

• Usually called by the site agent / manager on a

weekly basis (or when required) to review
progress and conduct further contract planning.

• Those expected to be in attendance are: general

and section foreman, gangers, contractor’s
quantity surveyor, site engineer, H&S officer and
other site staff that may be invited.
 Materials Management

• The total cost of materials may be up to 60% of the

total project cost dependent upon the type of project
(Gulghane et al., 2015).

Objectives of materials management

• To ensure continuity of the building activities by

means of uninterrupted supply of materials
• To find the most available material, at the most
suitable price.
• To find alternative reliable sources for purchases
(supplies).

• To build good relations with suppliers.

 Materials Purchasing systems

The two materials purchasing systems in

construction are:

• Centralized purchasing system (CPS)

• Decentralized purchasing system (DPS)

 Centralized purchasing system

• CPS is the purchasing function whereby only

one department in the organisation is
responsible for purchasing materials.

• Purchasing functions are centralised at the

head office.

• Purchased materials are despatch to different

sites being managed by the organisation
 Decentralized purchasing system

• DPS is the purchasing function whereby each

building site is responsible for its own
purchasing procedures.

• Purchasing functions are decentralised to

each site.
• Each site has a buying clerk performing the
purchasing duties as well as being responsible
for the delivery, storage and keeping
inventories.
 Buyer's responsibilities

• Finalising quotations with suppliers.

• Preparing of materials schedules by

coordinating materials requirements with the
master programme.
• Placing of orders with suppliers ensuring the right
price, quantity and quality of materials.

• Preparing schedules of delivery dates.

• Advising top management on the merits of

suppliers as well as alternatives for materials.
 Factors to consider in selection
of a supplier
1. Previous experiences your
company and others have had 5. Quality of his materials
with supplier

2. Strength and stability of 6. How and where he gets his

supplier’s business materials from (buying or self
manufacturing)
3. Supplier’s experience in his
field of business 8. Site location

4. How realistic his quotations 9. Ability to expedite deliveries

are
REQUISITION FORM
INVOICE
END!