CIVIL ENGINEERING PROJECT MANAGEMENT

Civil Engineering project management concepts:

Introduction
The purpose of this handout is to provide guidelines for use by students undertaking civil
engineering project management either for the first time or with little prior experience with project
management. It provides a comprehensive introduction to project management, including the
applicability of the principles of project management and of all phases of project development.

Civil Engineering project management concepts:

What is a project?
The Project Management Institute (PMI) definition:
➢ ‘A temporary endeavor undertaken to create a unique product, service, or result’.
➢ A set of coordinated activities, with a specific start & finish, pursuing a specific goal with
constraints on time, cost & resource.
➢ ‘A temporary piece of work with a definite end date undertaken to create a unique product’.
Attributes of a project
▪ Temporary- have a start and finish dates
▪ Sponsor and must be approved
▪ Unique, with elements of risk and uncertainty
▪ Has resource constraints on time, budget and scope
▪ Involves a temporary team

Examples of Civil Engineering projects:

Construction of a bridges, hydro dams, harbours, roads, railways, tunnels, stadium and shopping
mall.
Triple constraint of a project
Every project is constrained in three different ways by its:
1) Scope goals: - what is the project trying to accomplish? Magnitude of work to be done.
2) Time goals: - how long should it take to complete?
3) Cost goals: - what should it cost?

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A change in one of these constrained elements affect the other.
It is the project manager’s duty to balance these three often competing goals.

Characteristics of projects
Projects are defined by their Scope, Budget, and Schedule.
Scope: is a written requirements document, a project manager prepares to take care of operational
needs, level of service, regulatory requirements.
Budget: This usually provides the preliminary project funding. managers develop a budget and
refines it once there is better information defining the scope.
Schedule: The manager should determine the timescale it will take to complete the project.
Schedule involves breaking down the work into manageable activities needed to accomplish the
scope of each deliverable, estimating the duration of each activity, and placing them in a logical
sequence.
A project is made up of a group of interrelated work activities constrained by a specific scope,
budget, and schedule to deliver capital assets needed to achieve the strategic goals of construction
company.
Ways to define project success
There are several ways to define project success:
• The project met scope, time and cost goals
• The project satisfied the client/sponsor
• The result of the project met its main objectives, such as making or saving a certain amount
of money or simply making the sponsors happy.
Why projects fail
• Communication
-misunderstandings
-not talking, Emailing etc
• Poor planning
• Lack of management direction & involvement
• Incomplete specification
Who is a Project Manager?
• A PM is the person responsible for accomplishing the stated project objectives.

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 • A company’s vision and mission are essentially what it wishes to accomplish.
The four roles of Project Manager’s
• Leadership- the vision and style (execute the project plan and control it).
• Motivation- managing expectations and rewards
• Team building- skills mix and cooperation between members.
• Communication- different aspects and different stakeholders.
Attributes of a Project Manager
• Inspires a shared vision
• Competence
• Ability to delegate tasks
• Cool under pressure
• Problem solving skills
• Integrity
• Enthusiasm
• Empathy
Project management
PMI definition- Project management
‘Is the application of knowledge, skills, tools, and techniques to project activities to meet project
requirement’ in order to meet or exceed stakeholder needs and expectations from a project’.
PM comprises of the ff:
A set of knowledge and skills- this is required to reduce the level of risk within a project and thereby
enhance its likelihood of success.
A suite of tools- various types of tools are used by project managers to improve their chances of
success.
A technique - various management techniques and processes are required to monitor and control
time, cost, quality and scope on project.

Project Management Objective

Is to execute a project so that deliverables can meet scope requirements on budget and schedule,
and at acceptable risk, quality, safety, and security levels.

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Project Scope management

A subset of project management that includes the processes required to ensure that the project
includes all of the work required to complete the project successfully. It consists of initiation, scope
planning, scope definition, scope verification, and scope change control.

Project Management Life Cycle

This consist of four main phases for a typical construction projects:
Project Initiation; Project Planning; Project Execution and Project Closure.
1. Project Initiation: this phase essentially involves ‘starting up’ the project, by document. (eg
feasibility study).
2. Project Planning: this phase involves setting out the road map for the project by creating the
following plans: (Eg project plan; quality plan; risk plan; communication plan and procurement
plan etc.)
3. Project Execution: This phase involves building the deliverables, montoring & controlling the
project delivery. (eg. Scope mgt, time mgt. cost mgt. quality mgt. etc).
4. Project Closure: this phase involves winding-down the project by releasing staff, handing
over deliverables to the client and completing a post implementation review. (eg Perform project
closure, Review project completion).

The feasibility studies

✓ project sponsor employs an independent consulting engineer to check the technical
feasibility of the project.
✓ The engineer ensure that the project is engineeringly practicable, by decide what
techniques, should be adopted for the design and construction process.
✓ Calculation of time, probable cost, (operating costs) value of money, are all considered.

Work Breakdown Structure (WBS)

PMI: Definition of WBS is a deliverable-oriented grouping of project elements that organizes and
defines the work scope of the project.

Presenting the WBS

Once the entire WBS had been developed and tasks have been entered into the scheduling tool,
the project manager should also develop a visual representation of the WBS.

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The role played by WBS

It is the foundation of the project deliverables. Laying out the scope of project tasks that needs to
be done, estimating what it will take to do those tasks, and helping to show tasks, people and other
project elements are to be organized into a project schedule, are some important role played by
WBS.

Project Planning - A formal, approved document used to guide both project execution and project
control. The primary uses of the project plan are to document planning assumptions and decisions,
to facilitate communication among stakeholders.

Importance of Project planning

1. Planning helps to minimize the cost by optimum utilization of available resources.
2. Planning reduces irrational approaches, duplication of works and inter departmental
conflicts.
The three types of project planners
1. The client or client/agent organization
2. Designers (Engineers/Architects)
3. General contractor
The Levels of projects planning

1. Project planning
2. Pre-tender planning
3. Pre-contract planning
4. Post contract planning
Project planning

This prepared by the client he/she set out the broad frame-work for the project. The client uses this
plan to monitor the progress of the work.

Pre-tender planning

This is prepared by the general contractor as an aid to the competitive tendering process.

Pre-contract planning

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This type of planning usually takes place, during the period that the contract is awarded and
accepted by the contractor before the commence of the project.

Post-contract planning

This type of planning usually is carried out by general contractor when the contract is awarded and
the first phase of the contract is going to take off. It involves monthly, weekly and daily planning.
It includes the following:

a. Master plan
b. Detailed working drawings
c. Material statement chart
d. Dates for making orders for supply of construction materials
e. Preparation of labor requirement
f. Sequence of operations and their inter relationship.

Civil construction project master programme

Programme- is a series of steps to be carried out or goals to be accomplished by all stakeholders

involve in construction project.
Project Master programme
This is a type of programme which shows the activities and the dates from inception of the project
to completion. It gives a general picture of the whole project and not the very usual detailed type.
It is presented in a form of bar chart, network or precedence format depending on the programming
techniques adopted by the contractor.
The importance of Master Programme

• It is used by the client’s contract administrator to monitor the contractor’s work progress.
• It forms the basis of the contractor’s budgetary control and financial fore-casting procedure
and aids the clients in assessing his cash funding requirements at the monthly payment
stages.
Preparation of master programme
The major steps involved in the preparation of a master program are as ff:
1. Carefully examination of a contract documents such as: working drawing, BoQ and other
conditions to extract all relevant data required for the program

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 2. Site investigation report should be made to ascertain at first hand the general conditions of
the site.
3. Sort out the works of both main contractor and subcontractors.
4. Send out enquires to all sub-contractors including suppliers to find out the duration of their
section of work, so that it can be indicated in the overall program.
5. Division of entire construction project into work packages/sections.
6. Find out the amount/volume of work involved in the various activities/operations.
7. Prepare a draft of model Master program and reappraise it.
Typical examples construct project a master programs
The MP indicate the sequence of operations and relationships between related operations by
introducing links in the form of a linked bar chart. A single bar line distinguishes the overall
duration of each stage. Also, it shows the sub tasks within each main or summary activity.
Vetting the master programme
It is important that the integrity of a construction program should be assess before it is put into
good use, so as to obtain value for the time and money invested in its production. Assessing the
program include:
1) The duration of activities must be realistic.
2) The sequence of carry out activities/operations: this must be logical according to the
program.
3) Resources allocation: the number of HR labour allocated for the various activities must be
checked to ensure they are adequate.
4) Check to ensure all activities required for the project are included in the program, so as
not to disrupt the program when it is in use.
5) Check when subcontractors and suppliers must start work and the duration of their work,
and ensure that the duration allocated to them conform to their specific programs of work.
6) Check the amount of flexibility in the program whether it is enough for the project.
Flexibility is achieved by the overlap of operation or activities such that delays will not
affect succeeding activities, or allocating longer time duration for the activities.
7) Check the accuracy of other information provided on the program to ensure that everything
is right.

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Short-term programme
short-term programme is often extracted from the master program and is much more detailed,
indicate exactly what is required at a particular time.

Reference books:
1. Sengupta. B, Guha H (2001). Construction management and planning, tata Mcgraw
Hill, New Delhi.
2. Sharma, S.C. (2008) Construction engineering and management, Khanna
Publishers,Delhi.
3. Murugesan, G. (2013) Total quality management, Laxmi Publications, Delhi.
4. Twort, A.C. and Rees, J.G. (2020). Civil Engineering Project Management, 4th
Edition. New York: Taylor & Francis.
5. Griffith, A. and Howarth, T. (2016). Construction Health and Safety Management.
New York: Routledge.
6. Cooke, B. and Williams, P. (2013). Construction Planning, Programming and
Control, 3rd Edition. Oxford: Wiley-Blackwell.
7. Harris, F., McCaffer, R. and Edum-Fotwe, F. (2013). Modern Construction
Management, 7th Edition. Oxford: Wiley-Blackwell.

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Stage programme

It is programme that centered on the substructure activity of a master program.

Time management

The time-management tools

The popular time-management tools and the most common scheduling techniques widely used are:
1). Gantt or bar charts and linked bar-charts
2). Network analysis
3). Critical Path Method (CPM)
4). Programme Evaluation and Review Technique (PERT)

Gantt / Bar charts

The Gantt Chart is a graphical tool that is used to display task dependencies and timing
information. It illustrates a project schedule.

What is a Gantt chart used for?

A Gantt chart is used to understand when specific tasks need to be completed. It shows the
relationship between each task and helps project managers understand how each task
impacts others.

Purpose of a Gantt Chart

A Gantt chart allows project, program and portfolio managers to easily map out project plans by
organizing project tasks on a visual timeline. In project planning, project scheduling,
project tracking and resource.

The illustration of gantt/ bar chart

✓ It illustrate the start and finish dates of the terminal elements and summary elements
of a project.
✓ Gantt/bar chart lists various activities involved in a construction project and the period
of time that each activity takes for completion.

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 ✓ It indicates in the form of a horizontal bar plotted to a suitable time scale against each
activity.
✓ It can be used to track actual progress against planned progress and can help identify
any potential problems with completing a project on time.

How to create Gantt / Bar charts

1. Create a Work Breakdown Structure (WBS)

2. Create a Task List and a Gantt Chart Timeline

3. Identify Task Dependencies

Advantages

• It allows project managers to turn complex project plans into a visual project timeline that’s
easy to understand.
• It is the perfect tool to compare the actual performance of your project team against the
original project plan, schedule and cost baselines to determine whether a project is being
completed on time and under budget.

Disadvantages

• Gantt charts can be hard to understand for some team members and stakeholders who aren’t
used to them.
• Not all Gantt chart software available in the market offers the same features, which is
something to look out for as some lack important features.

Critical Path Method (CPM)

PMBOK-Definition:

“Is the sequence of scheduled activities that determines the project's duration.”

The CPM or critical path analysis (CPA)

✓ CPM is used to create an accurate large complex project schedule.

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 ✓ It is used to determine a project’s critical path the longest sequence of tasks that must
be finished for the entire project to be complete.
✓ It identifies dependencies between tasks and shows which tasks are critical to a
project.

The importance of CPM

1. Is one of the most important concepts in project management and certainly among the most
enduring.
2. It identifies all the tasks needed to complete a project.
3. It determines the tasks that must be done on time.

The most common elements of CPM

• Nodes
• Arrows
• Earliest start time (ES)
• Latest start time (LS)

• Earliest finish time (EF)

• Latest finish time (LF)
• Float/ slack

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 • Critical path: This refers to the longest path through the network diagram. A thick
line or a different colour represents it.

Steps:
1. Use WBS to arrange all the activities in a table form.
2. Create a Critical Path Diagram to depicts the order of activities.
3. Determine which tasks are dependent on other tasks before they can begin.
4. Use the CPM Formula to estimate the duration of each task (Timeline).
5. Mark the Start Time (S) to the left and right of the first activity. Usually, this would be 0.
6. Mark the Earliest Start (ES) time of each activity. This is given by the largest number to the
right of the activity's immediate predecessor (i.e. its Earliest Finish time, or EF). If the activity has
two predecessors, the one with the later EF time would give you the ES of the activity. The EF of
an activity is given by its Earliest Start time (ES) and its duration.
7. Determine the Forward pass and the Backward pass.
8. Identify all the activities with 0 float and make up the critical path, or the longest path will be
the “critical path”.

The benefits of cpm

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 1. Reduce delays
2. Visualize dependencies
3. Improve organization
4. Optimize efficiency
5. Float calculation
6. It fosters better communication within project team.
Programme Evaluation and Review Technique (PERT)

PERT diagram or PERT analysis, is a popular technique used by project managers, it provides a
visual representation of tasks needed to finish a project.

What does a PERT chart do?

✓ It allows you to plan and schedule out the entire project timeline.
✓ It also allows you to map out dependencies, find the critical path more on this later and
plan out the entire timeline for a project before it even begins.

The most common elements of PERT Chart:

• Nodes
• Arrows
• Float or Slack
• Lead time
• Lag time
• Predecessor and Successor Relationships

PERT is similar to CPM but uses three different time estimates for each activity instead of just
one: 1) The optimistic estimate (O) 2) The most likely estimate (M) and 3) The pessimistic
estimate (P) each activity then has a probability distribution attached to its time estimate.

Formula:

Task length estimate = (Optimistic time + [4 X Most Likely time] + Pessimistic time)/6

Example 1:

The optimistic time is 20 minutes; the pessimistic time is 50 minutes; and the most likely time is
35 minutes.

Solution:

(O + (4 × M) + P) / 6

20 + (4x35) +50) /6 = 35 minutes

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How to create a PERT Diagram

Steps:

1. Identify Activities

2. Determine Dependencies

3. Create the PERT Diagram

4. Assign Time Estimates

5. Define the Critical Path

6. Track Progress

The benefits of using a PERT Diagram

• Visualizing your timeline
• Benchmarking
• Creating a clear picture of a project
• Creating a strong foundation

Advantages

• Visualization of Project Activities

• Time Management
• Resource Allocation

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 • Risk Assessment and Management

Disadvantages

• Labour-Intensive
• Inaccurate Information
• Lacks Flexibility

PERT Vs CPM

PERT assumes that all tasks in a project are uncertain and uses a probability distribution to
calculate the expected completion time for each task.

PERT technique is the best choice when there is significant uncertainty surrounding the individual
activities in a project.

CPM, on the other hand, assumes that all tasks are well-defined and can be scheduled with
certainty.

CPM will help one make a more accurate Project schedule especially when you use it in
conjunction with PERT diagram. You can estimate better and discover areas of risk and
prepare to respond to them to avoid costly delays.

Project Cost Management

Time cost trade-off process: Direct and indirect project cost

The direct costs: are the costs of all the inputs that can be directly and solely linked to a certain
activity or construction of a certain semi-finished product.

Typical inputs are;

1. Human resources

2. Plant Equipment

3. Materials
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To calculate the direct costs, the construction is divided in semi-finished products like:
foundations, walls, floors, roofs, doors, etc. Ideally the construction is broken down as
detailed as possible.

The indirect costs: are the project costs that cannot be assigned to a specific construction element.
In a way the production unit of the specific construction elements (walls, floors, roofs etc)
all share these resources covered under the indirect costs.

Typical examples of indirect costs are:

1. Site management

2. Offices, sheds, storage

3. Access roads

4. Transport of workers

5. Water and sanitation service

6. Health and safety provisions

7. Insurance

8. Bonds

9. Tools, scaffolds

10. Company costs

Cost control
is the process whereby the construction cost of the project is managed through the best methods
so that the contractor does not suffer losses when carrying out the activities of the project.

The use of Cost control techniques on-site

A cost control system should be design in such a way that it will enable management to
satisfactorily collect and produce information from which the monitoring of the actual costs can

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be compared to the estimated costs. It is little use waiting until a project is completed only to
discover that a loss has been made.

The element of any cost control system:

1. Observation

2. Comparison of observation with some desired standard

3. Corrective action to take if necessary

Problems associated with cost control

Most construction managers and contractors find it difficulty in controlling costs on their
construction sites due to a number of problems which include:

✓ Poor planning of project

✓ Over budgeting

✓ Poor materials management

✓ Delay in delivery of materials

✓ Wastage of materials

✓ Loss of materials

✓ Increase cost of materials

✓ Labour shortage

✓ Unexpected weather changes

This result into cost and time overruns, conflicts and sometimes abandoning of projects. During
the execution of a project, procedures for project control and record keeping become indispensable
tools to managers and other participants in the construction process.

How to achieved cost control:

➢ Selecting the right man for the right job

➢ The right plants/ equipment for the right work

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 ➢ The right quantity of materials, in the right quantity, from the right source, at the right price
and delivered at the right time.

Project Quality Management

Quality management during the construction phase covers:
✓ Review of contract documents to verify that quality aspects have been considered
✓ Surveillance of construction for adherence to quality requirements
✓ In process and receiving point quality inspections
✓ Audits of consultant, contractor, and supplier quality programs for adequacy and
compliance.
Role of the Contractor in Quality Management During Construction
The contractor controls the quality of deliverables by monitoring and verification against the
quality criteria specified in the design documents.
The quality control activities include construction site activity, installation, inspection, test, and
documentation. Results of inspections and tests are retained by the contractor as objective evidence
of acceptability.

Project Human Resource Management

Managing the HR for a construction project is necessary for the success of any project and before
one can do that HRM Plan’ must be developed.

Project leadership and Project team management

The project leader is the essential player in guiding the many separate phases and parties involve
towards producing a successfully completed building or facility.

Construction teams can be described as formal group of individuals who work together on a
permanent basis to undertake specialist construction, and the essential machines and equipment
the team uses.

This project team may also be referred to as the projects staff construction team members include:

• Designers

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 • Managers
• Building team

Communication Management
Prepares of Project communication plan
The project manager is the one who prepares a communication plan for the project to address the
following:
✓ Project Team Communications
✓ Community Relations
✓ Media Communications
✓ Government Relations

Project Risk Management

The Importance of project risk management
 Project risk management is the art and science of identifying, analyzing, and responding to
risk throughout the life of a project and in the best interests of meeting project objectives
 Risk management is often overlooked in projects, but it can help improve project success
by helping select good projects, determining project scope, and developing realistic
estimates.
The goal of PRM is to minimize potential negative risks while maximizing potential positive
risks.
Negative risk
 Involves understanding potential problems that might occur in the project and how they
might impede project success.
 Negative risk management is like a form of insurance; it is an investment.
Positive risk
 There can be Positive risks: they are risks that result in good things happening; sometimes
we called them ‘opportunities.

Project risk management processes

✓ Risk management planning
✓ Risk identification

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 ✓ Qualitative risk analysis
✓ Quantitative risk analysis
✓ Risk response planning
✓ Risk monitoring and control

Safety Management
Safety management during construction phase covers:
▪ Planning of work to avoid personal injury and property damage
▪ Monitoring of work to provide early detection and correction of unsafe practices and
conditions
▪ Protecting adjacent public and private properties to provide for the safety of the public
▪ Providing safety education and incentive programs
▪ Complying with state Occupational Health and Safety Acts (OSHA).
Roles of the Contractor in Safety Management
✓ Enforcement
✓ Education
✓ Incentives

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PROJECT PROCUREMENT MANAGEMENT

Categories of contract procurement

SEPARATED AND CO-OPERATIVE CONTRACTS

This is a traditional contract where by client have often preferred to engage someone able to
interpret their needs with a clear design before proceeding with the contraction phase by firstly
setting out the scope, possible. There after the actual builder or construction company is
separately contracted to produce the facility.

MANAGEMENT ORIENTED CONTRACTS

Over recent years, clients have all too often experienced, difficulties in obtaining projects
finished on time, to budget and of acceptable quality and serviceability, especially when
designs are incomplete before contractors are appointed intricate projects being particularly
affected. Thus for innovative highly complex projects requiring progressive development
of the design details as construction proceeds relatively in experienced clients occasionally
adopt this form of contract, namely:

(i) Management contract

(ii) Construction management contract

(iii) Design and management contract.

INTEGRATED CONTRACTS

This form of contract is currently a preferred approach under the constructing excellence
programme, which seeks better value for money in reduced whole- life cost and improved
quality.
DISCRETIONARY CONTACTS

The element of discretion attempts to address and improve working relationship between
clients and the designer/constructors.

CONTRACT MANAGEMENT

Definition

A contract is a verbal or written agreement between two parties or more to execute a work to
its completion with a legal binding and under seal.

As an agreement which directly creates and contemplates an obligation.

An agreement which is enforceable by law is a contract.

A legal binding agreement made between two or more parties, by which rights, are acquired
by one or more to acts or forbearances on the part of the other.

A simple contract consists of an agreement entered into by two or more parties, whereby one
of the parties undertakes to do something in return for something to be undertaking by the
other.

All agreement between two or more parties are contracts if they are made by the free consent
of the parties, competent to the contract for a lawful consideration and with a lawful object
and are not expressly declared to be void.

The essential elements of this definition are as follows:

1. Legally binding:

2. Two or more parties:

3. Rights are acquired:

4. Forbearances:

The main parties or (actors) to a contract

✓ The employer /client or (offeror) – for Building work

✓ The promoter/ client or (offeror)- for Civil Eng. Works

▪ The contractor (offeree)

 ▪ Lawyers

▪ engagement of the different consultants

▪ nominated subcontractors and suppliers

The contract documents

In practice, contract comprises a variety of documents such as:

General condition of contract:

✓ Form of tender
✓ Criteria of acceptance of tender
✓ Terms & conditions of Contract
✓ The legal agreement
✓ Working drawings on floors, elevations, sections, and details for the intended works
✓ General and particular Specifications of work
✓ Bill of quantities

Elements of tender operation

What is a tender?
Basically, a tender is an offer or invitation to bid for a project or to accept a formal offer such
as a takeover bid.

The preparation of tender document

Definition

Introduction

Invitation for tenders (IFT)

Tender document

SECTION I: Instructions to tenders

Table of clauses

A. General

B. Tender documents

C. Preparation of tender
 D. Submission of tenders

E. Tender opening and evaluation

F. Award of contract

G. Tender data

Note: from (a) – (g) contains all the essential details “instructions to tenders” which should be
strictly follow by all parties.

SECTION II: Forms of tender, qualification information, letter of acceptance and

agreement

Contractors tender

✓ Tender form

✓ Attachments to the tender

✓ Qualification information

✓ Letter of acceptance

SECTION III: conditions of contract

Table of clauses

A. General

B. Time control

C. Quality control

D. Cost control

E. Finishing the contract

Note: from (a) – (e) contains all the essential details to “Conditions of contract” which should
be strictly follow by all parties.

SECTION IV: Contract data

SECTION V: Specifications

SECTION VI: Drawings

SECTION VII: Schedule of activities

SECTION VIII: Security forms

Evaluation of tender document

SECTION I: Procedure leading to evaluation of tenders

SECTION II: Evaluation of tenders and recommendation for award

SECTION III: Table of evaluation

1) Project identification

2) Tender process

3) Tender submission and opening

SECTION IV: Annexes

Note: from Section (I) and Section (IV) contains all the essential details of “Tender document
evaluation”.

The e-tender
Some countries have introduction an e-tender process which is well structured to ensure that
the work to be performed for the government or a particular client is done reasonably and
efficiently. This process involves careful opening, evaluation and selection of the bidder
which is fair and transparent.

The various types of tender

1) Open tender

2) Selective tender

3) Negotiation tender

Open tender
This is the main form of tender in which the client advertises the tender openly in a newspaper
or on the e-tender platform along with some important information about the proposed works
to invite the interested competent contractors. The difficulties to predict the number of
respondents add uncertainty to the work flow.

Selective tender
This form of tender was developed as an alternative to the open tender procedure to address
the latter’s limitations. The aim of this tender is to increase the quality bids received while
also ensuring that the contractors with the requisite expertise are given the right opportunities
to submit the required bids on time. Invitations are sent to a selected list of tenderers
formulated by pre-qualification, recommendations through building professionals and other
building owners etc.

Negotiation tender
If only minor repair works are involved and the owners know some competent contractors,
selection of the contractor by negotiation may be a relatively simple solution. However, this
method is usually not recommended for large-scale works of multi-ownership buildings
because it is not considered as a fair process and may easily attract complaint on bribery.

The various alternative contractual arrangement

1. Lump sum contract

2. Bill of quantities contract

3. Negotiate contract

4. Cost plus percentage (%) contract

Lump sum contract

This type of contract, the client may supply a schedule of unit rates covering each work item,
and ask the contractor, when tendering to state a percentage above or below for the work to be
done.

Bill of quantities contract

This type of contract, the clients prefer to provide contractors with a common document for
pricing in the form of a bill of quantities. The bill is derived from the drawings and itemized
into elements according to one or other standard method of measurement.

Negotiate contract
This type involves agreement of a tender sum with a single contracting firm. The documents
are prepared and the contractor prices as usual. The priced document is either passed on to the
client’s consultants or QS. To check the reasonability of the rate and prices, if accepted then
negotiations starts etc.

Cost plus percentage (%) contract

This type of contract, the contractor is paid the actual cost of work plus an agreed percentage
of the actual cost to cover overheads and profits etc.

The origins of construction project law and the court system

The Construction Project laws

This law covers a wide range of legal issues including: contract, negligence, bonds and
bonding, guarantees and sureties, liens and other security interests, tendering, construction
employees claims, and related consultancy.

The court system

Arbitration

Arbitration is the settlement of a dispute by technically competent experts, or is an arrangement

for the settlement of disputes by unofficial persons chosen by the parties.

The principles of arbitration:

a) The object of arbitration is obtain the fair resolution of disputes by an impartial tribunal
without unnecessary delay or expense.

b) The parties should be free to agree how their disputes are to be resolved, subject only
to such safeguards as are necessary to safeguard the public interest.

c) In matters governed by this part the court is not intervene except as provided by this
part.

Appointment of arbitrator

The arbitrator may be named in the contract agreed by parties or the contract will contain a
means of appointment in the absence of agreement.

Jurisdiction
Under the arbitration Act 1996 the arbitral tribunal has the power to rule on its own jurisdiction,
meaning it has the power to resolve the dispute.

Procedure

In arbitral proceedings the general duty of the tribunal is laid down:

1. The tribunal shall

a) Act fairly and impartially as between the parties, giving each party a reasonable
opportunity of putting his case and dealing with that of his opponent:

b) Adopt procedures suitable to the circumstances of the particular case, so as to

provide a fair means for the resolution of the matters falling to be determined.

2. The tribunal shall comply with that general duty in conducting the arbitral proceedings
in its decision on matters of procedure and evidence and in the exercise of all other
powers conferred on it.

Preliminary meeting

Hearing

Revocation of arbitrator’s authority

Award

Problems with arbitration

adjudication

The difference between adjudication and arbitration

1) The timetable for adjudication is fixed at 28 days. Arbitration is flexible, either agreed
between the parties or fixed by the arbitrator.

2) The adjudicator’s award can be opened up at a later date and a completely new hearing.
The only appeal against an arbitrator’s award is on the grounds of a procedural
irregularity.

3) The adjudicator, unlike an arbitrator, has no general power to award costs.

The Alternative Dispute Resolution (ADR) system

The growth of ADR resulted from the dissatisfaction with arbitration as a cost-effective method
of solving disputes quickly and cheaply. There are a number of ways in which the various
forms of ADR differ from arbitration:

a) ADR is non-binding on the two parties.

b) There are no restrictions on communication in ADR

c) Like arbitration a third party is involved in facilitating agreement who is called a neutral
adviser.

The use of Microsoft Project Management software

The project management and software development communities have definitely responded to
the need to provide more software to assist in managing projects. There are hundreds of tools
available, ranging from free online or smart phone apps to enterprise tools costing thousands
of dollars to implement and high monthly fees per user. Microsoft Project continues to lead the
market.
 Arbitration involves three parties:
Claimant, is the person who brings the claim against the respondent.

Respondent, is the ‘accused’ party.

Arbitrator, is an independent third party who determines the arbitration process by examining
evidence and settling on an outcome.

Revocation of arbitrator’s authority

The grounds on which the revocation of arbitrator’s authority may take place:
1) Where the arbitrator has interest in the matter
2) Where the arbitrator is partial or biased or indebted to one of the parties.
3) Where the arbitrator is guilty of an unreasonable delay or a legal misconduct.

Adjudication

Adjudication is another method of resolving construction disputes without involving a

protracted legal process.

Few steps involves adjudication process

✓ The appointment of an adjudicator to acts as a magistrate in the case.

✓ He/she has the freedom to choose the method for handling the dispute.
✓ He/she has the liberty to seek help from construction experts and independent third
parties to fully understand the context of the dispute.

litigation
Definition: Is a means of dispute resolution through the court system.

Applicable cases- is applicable in resolving both civil and criminal cases.

Privacy-litigation is held in public place (ie. courtroom).

Speed to resolution- take years depending on discovery and court schedule.

Cost- is very expensive (eg court costs and extensive lawyers’ fees).

Atmosphere-The two parties in litigation are often antagonistic.

Recourse- In litigation, decisions are open to levels of appellate review