Assignment-EMCM (Contract Management) Q2

Name: Mohd. Norizam Bin Md. Salleh Matriculation No.
: CGS 00534317 Intake: September 2010 Assignment EMCM5103
Question 2
You are working as the project manager of a large international contractor.
Your company has just been awarded a contract by the Japanese Government to decommission and demolish a 1,000 MVA nuclear power station in Hokkaido Island, Japan. The nuclear power plant has been in use since late 1970s, and must be de-commissioned as soon possible in view of the recent meltdown disaster in Fukushima nuclear power plant after the earthquake and tsunami in March 2011.
The project will include shutting down the nuclear power plant, disposal of the unused nuclear materials and nuclear waste, decontamination the entire plant of radioactive materials, dismantling the entire structure, levelling the ground, disposal of rubbish, and replanting with grass, shrubs and trees at on the site.
The project is expected to take a total of three years to complete.
Due to the urgency and time constraints of the project, the resources will be sourced from the following:
Technical Expertise: French supplier of the nuclear plant Skilled and Unskilled Labour: From Philippines and China Managers and Supervisors: From Japan and Malaysia
Question 2 - Page 1 of 36
Name: Mohd. Norizam Bin Md. Salleh Matriculation No.: CGS 00534317 Intake: September 2010 Assignment EMCM5103
Earth Moving Machineries: From Japan The project has a tight deadline and the penalty for late completion is severe.
Describe how you would manage the contract to ensure that the project organisation and its execution will lead to a win-win situation for both your company and your client (and the owner). Use all the knowledge and techniques you have learnt from the Contract Management module. Arrange your presentation in the following areas:
Ex-ante incentivisation and flexible, far-sighted ex-post governance Standard forms of contracts and sources Contract laws Global management Differences in culture, communication
(Approximately 4 marks for each of the 5 areas selected) [TOTAL: 20 MARKS]
1. PROJECT TITLE To de-commission and demolish a 1,000 MVA Tomari Nuclear Power Plant (NPP), in Hokkaido Island, Japan.
2. PROJECT BACKGROUND The nuclear power plant has been in use since late 1989, and must be de-commissioned as soon possible in view of the recent meltdown disaster in Fukushima Daiichi Nuclear Power Plant after the earthquake and tsunami in 11th of March 2011, the Japanese government has take a drastic step whereby any nuclear power plant reached the lifetime period of 30 to 40 years operations need to be shut down.
Photo 1: A View of Reactor 1, 2 and 3, Tomari Nuclear Power Plant, Hokkaido Island, Japan (Wikipedia).
Although Tomari Nuclear Power Plant (NPP), in Hokkaido Island, Japan has not reach it lifetime period but its owner Hokkaido Electric Power Company had plan to decommission and demolish the plant due to safety reason and protest from the people.
Photo 2: Arial View of Reactor 1, 2 and 3 of Tomari Nuclear Power Plant, Hokkaido Island, Japan (Google Earth).
The Tomari Nuclear Power Plant is the only nuclear power plant in Hokkaido, Japan. It is located in the town of Tomari in the Furuu District and managed by the Hokkaido Electric Power Company. All of the reactors in this plant are Mitsubishi designs. The plant site totals 1,350,000 m2 (334 acres), with an additional 70,000 m2 of reclaimed land.
Its geographical WGS84 coordinates are stated below;
43210N 1403045E, 43210N 1403045E,
43.03611N 140.5125E 43.03611N 140.5125E
Tomari Nuclear Power Plant consists of three (3) reactors as tabulated below;
Unit Tomari - 1 Tomari - 2 Tomari - 3
Type Pressurized water reactors Pressurized water reactors Pressurized water reactors
Commission date June 22, 1989 April 12, 1991 December 22, 2009
Electric Power 579 MW 579 MW 912 MW
Figure 1: Tomari Nuclear Power Plant, Hokkaido Island, Japan Location Plan (Google Earth).
3. PROJECT SCOPE
Since the Project brief only mentioned to de-commission and demolish a 1,000 MVA Tomari Nuclear Power Plan, then I would assumed that we are only required to decommission Reactor Tomari 3, other reactors will be done by other contractors. "Decommissioning" a nuclear power plant can be defined as the cessation of operations and the withdrawal of the facility from service, followed by its transformation into an out-of-service state and eventually, its complete removal.
Decommissioning activities are intended to place the facility in a condition that provides for the health and safety of the general public and the environment, while at the same time protecting the health and safety of the decommissioning workers.
Decommissioning involves thus all the admisnistrative and technical operations allowing withdrawing a facility from the list of licensed facilities.
The administrative operations concern particularly the elaboration of decommissioning plans and the obtainment of authorisations and free release certificates for the facilities and the site. The decommissioning process shall cover the following works; Shutting down the nuclear power plant shall require necessary permit. Disposal of the unused nuclear materials shall require necessary permit.
Disposal of nuclear waste entire and place those high radioactive waste to safe store yard.
Decontamination the entire plant of radioactive materials except for high contaminated sections e.g. reactor building and vessel.
Dismantling the entire structure and place those high radioactive component to safe store yard. Those cannot dismantle will be entomb.
Figure 2: Removal of other structures and to be kept at safe store yard (Modified from Tomari I).
Entombment. The fastest method to decommission a nuclear power plant. This option involves encasing radioactive structures, systems and components in a long-lived substance,
with Lead/Concrete. The encased plant would be appropriately maintained, and surveillance would continue until the radioactivity decays to a level that permits termination of the plants license, with little or no additional decontamination.
Figure 3: Entomb the Reactor Vessel (Modified from Tomari I). . Levelling the ground. Disposal of rubbish. Replanting with grass, shrubs and trees at on the site.
Project duration to be stated in the contract is three (3) years to complete. Man power resources were identified; i. Technical expert: French supplier of the nuclear plant. ii. Skilled and unskilled labor: from Philippines and China.
iii. Managers and Supervisors: from Japan and Malaysia. iv. Earth moving machineries: from Japan.
4. EX-ANTE INCENTIVISATION AND FLEXIBLE, FAR-SIGHTED EX-POST GOVERNANCE.
Ex ante incentivization The ability of a contract to provide ex-ante incentivization is illustrate in Figure 4, and were described by three parameters and they are the reward provides the motivation the contractor to share the owners objectives and perform, the associated risk and the safeguard provided by the owner to shield the contractor from the risk
Present Risk Absent
High Incentive Low Incentive Absent
Medium Incentive NO safeguard or Incentive necessary Present Safeguard
Figure 4: A simple contractual schema for ex-ante incentivization
In ex-ante incentivization project management, if there is no risk, no need for any safeguard, and the reward surely low. If there is risk, there may or may not be a safeguard. If there is no safeguard, the contractor buys the risk from the owner, and a high reward may required. In the
other hand shall there is a safeguard but the owner underwrites the contractors risk, the incentive can be lower.
In some cases the safeguard is only provided against extreme risk and for lower levels of uncertainty, the contractor takes the risk, for extreme events, the client underwrites the risk. This is the case for target price contracts, or where the contractor only claims for variations over a certain size.
However, in these cases the reward is less shall there is no safeguard. Ex-ante incentivization only can be adopted where the project conditions were entirely predictable throughout its life. With that Im afraid this project contract management is not applicable in the decommissioning of a nuclear power plant project as the risks are high and also unpredictable.
Flexible, Farsighted, Ex-post governance If in the ex-ante incentivization the safeguard can only be given for all foreseen risks, ex-post governance in the other hand if properly motivated, the projects participants should together try to achieve clients common goal to complete the project within time, at estimated budget and acceptable performance with safety and sustainability.
In Flexible, farsighted, ex post governance project contract management, it is opened to deal with unforeseen circumstances. Williamson (1995) suggested this kind of project contract management to provide four parameters which are the incentive intensity, the ease of making
uncontested, bi-lateral adaptations, the reliance on monitoring and related administrative controls, (transaction costs) and the reliance on court ordering.
In this contract incentive intensity where greater incentive intensity will elicit greater performance and sustained effort from the contractor to achieve the projectr's objectives, and greater flexibility in accepting changes to adapt the unforeseen circumstances. Bi-lateral adaptation where the ability of the parties mutually to accept changes should be imposed with collaboration, cooperation and cordial approach. Any Reliance on monitoring and administrative controls will only incur additional cost on the client. Thus, incentive intensity has a stronger impact on project costs than reducing control. If appropriate incentives are chosen, there may be no need for monitoring and control procedures, with the contractor working on their own.
Reliance on court ordering should be reduced as much as possible and the contract should encourage client and contractor to settle their differences in ways other than settling them in court. Shall involve with arbitration or litigation the project will become a conflict and all parties will be in lose- lose situation. This adversarial approach should be replaced with trust. Surely in decommissioning of a nuclear power plant shall involve and face a lot of uncertainty and the risk are high e.g. possibility of explosion, high radioactive reading, fatality and many more. Thus, farsighted post governance project contracts management are more likely to be chosen in this project as it is able to face any new risks or uncertainty that may arise throughout the project duration. It is able to deal with unforeseen events, whether adverse or advantage. As the complexity and risk of this project is very high all parties should play their
roles to achieve the project objectives. In order to encourage the contractor to do that client should offer the contractor with incentive and to provide flexible, farsighted governance to deal with incompleteness, but at minimum transaction costs
In a high risk, large, complex, multi-stage, expensive and a fast track project like this the risk should be shared among the client and the contractor although it may not equally distributed. This is important as the decommissioning of a nuclear power plant will involves in securing a lot of works permit and authorities issues. The client should play their role to assist the contractor in securing all these necessary work permits.
In my opinion the cost plus management contract where cost plus the incentives and the contractor fees (c+if) should be applied for this project. The contractor is paid for their cost, management fees with incentive for their contribution in solving the problems and completing the given task. Basically in this type of project the risk to the contractor is in the product and as well the work process.
5. STANDARD FORM OF CONTRACT AND SOURCES
Standard form of contract generally produced within a range of industries typically by professional bodies serving those industries or by committee specifically set up for the purpose. Therefore it is wisely to use the common standard form of contract shall they are in the same industry as you are for one reason they have been tested compared to bespoke
contract where while designing it you might left out some certain important conditions. It is not easy to produce a standard form of contract as it requires a lot of effort and cannot undertake lightly.
For example in 1998 the UKs Association for Project Manager published standard terms for the appointment for a project manager took some two years to draft. The intention of standard forms of contract is to provide a representative viewpoint of the industry which they serve. In a modern contract strategy the standard form of contract should not be one sided. It should share the risk equitably (in our case) between the client and the contractor.
In Malaysia we also have a few of our own version standard form of contract issued by Pertubuhan Arkitek Malaysia (PAM) issuance of the PAM2006 (coming fast at the heels of PAM1998), Construction Industry Development Board (CIDB) of Malaysias various forms (CIDB2000, model terms for domestic sub-contracts, etc) IEM (The Institution of Engineers, Malaysia) Conditions of Contract and Jabatan Kerja Raya (JKR) Malaysia issuance of JKR203A edition 2007 where they indicate the perceived agreement that the source of conflicts and disputes might be traced to the contract. Other well known international standard forms of contract are also practiced in Malaysia especially by the international companies and when a contract involved international contractors. Some of the common international standard form of contract can be used in this contract and namely below;
FIDIC standard form of contract is very widely using in the construction industries. FIDIC stands for Fdration Internationale Des Ingnieurs-Conseils in French or it mean The
International Federation of Consulting Engineers, Its foundation started in 1913 by three countries namely Belgium, France and Switzerland each wholly or partly francophone.
JCT standard forms of contract are also widely used in the construction and engineering industries. JCT means Joint Contracts Tribunal, who produces standard forms of contract, guidance notes and other standard documentation for use in the construction industry. Established in 1931,
ICE the Institution of Civil Engineers founded on 2 January 1818, is an independent professional association, based in central London, representing civil engineering. The majority of its current members are British engineers, but it also has members in more than 150 countries around the world. NEC Engineering and Construction Contract is one of its products.
In my opinion any type of international standard forms of contracts can be used in this contract. The most important thing it should not be one sided and shares the risk equitably between the client and the contractor. The usage of standard forms of contract would be highly recommended especially in the field of construction in order to avoid ambiguity among different standards adopted by each country. After all these international common standard form of contract have been tested and used for quite many years and therefore their successful are almost definite.
The main issue of using the standard forms of contract is, clients are demonstrating that they wish to abide by industry standards and not impose unfair terms that shift the balance of power too much in their favor.
6. CONTRACT LAW
Normally the contract law to be used is the law of the country that the works is going to be carried out. If a choice is given I would like to propose to use the international law or the British Law as they are very established and tested in the past few centuries.
In standard contract there are four fundamental elements for a binding contract to be formed between two companies and there are:
Offer Acceptance The intention to be legally bound Consideration
For this case study, it is assumed that the our company was awarded by the Hokkaido Electric Power Company the owner of Tomari Nuke Plant a USD 1 billion worth of contract. This constitutes an offer by the client and acceptance by the company by virtue of law. A tender was called among short listed contractors.
The contractor was quoted a USD 1 billion during the tender exercise. When the contractor had successfully won the tender, the client will award the contract to the contractor (an offer). When this offer being accepted it means an acceptance have been made. The contract specifically stated that the contractor need to decommissioning the nuclear power plant by carry out the shutting down the nuclear power plant, disposal of the unused nuclear materials, disposal of nuclear waste, decontamination the entire plant of radioactive materials, dismantling the entire structure and place those high radioactive component to safe store yard, entombment, levelling the ground, disposal of rubbish and replanting with grass, shrubs and trees at on the site. In this huge international contract the offer surely come with a letter of award and followed by everybody signing the contract document, this means the project is legally bound. The amount of contract worth USD 1 billion stated in the Letter of award is a considered a consideration therefore the contract are legally bounded.
It is a norm when we carry out a project in foreign country we shall bounded to their law. Therefore in this case the work in Japan shall be subject to Japan Contract Law. Japanese contract law allows greater ambiguity than American contract law. A Japanese contract, for instance, does not require clear statements of offer, acceptance, or consideration: most simply begin with a declaration, e.g. "Company X and Company Y hereby enters into this following agreement." Their contracts also tend to contain very little detail, with the parties working out complications as they arise.
Although normally Japanese contract is less detailed, Japan's tort system sees considerably less activity than tort systems in Western Europe and North America. The reason for this is that attorney's fees are based on the amount of damages sought in the suit, not the actual damages won. Because Japan does not use juries, judges decide the outcome of cases, and are usually not easy to sway emotionally. As a result, many individuals choose not to sue when their odds of winning seem low, and when they do sue, they tend to sue for small amounts of damages.
As we shall buy a lot of other materials from varies country e.g. lead metal panel from China, concrete cement truck with from Germany, steel from Australia and many more we will also requires to use their law especially shall any legal matter arises. This also goes on how the payment term will be, and normally the suppliers will ask for the money before the do the shipment. We also need to know whether the insurances for the shipment covered by the supplier are door to door or until it reach the first port. This shall give a big impact to project and not only on the cost but also the risk that we need to take.
7. GLOBAL MANAGEMENT
To manage a contract of this magnitude (about USD 1 Billion contract worth) with its myriad of complexities pertaining to huge materials, different parties involved, high risk and lethal activities, requires a lot of resources, various regulations and permit, personnel from different
countries and continents and name all other difficulties, an contract management approach that is aimed in achieving a cooperative organization is paramount for it success.
Companies that operate across the international borders need executives and managers who understand cross-cultural customs and business practices and how to promote efficiency and optimize profitability in that part of global environment. Many corporations purchase supplies or sell products in other countries. A construction project in Japan might require buying the materials from all over the worlds. The design works were to be carried out by the technical expertise from head office in France while the contractor hailed from Malaysia, skilled and unskilled workers from China and Philippines, managers and supervisors from Japan and Malaysia and the earth moving machines are from Japan.
Global Management techniques are requires in order operating under these kinds of conditions. The following are the issues that the contractor might face while carrying out this project;
Obtaining permits to run a business or construction licence in Japan. Complying with the rules for foreigners working in Japan. Understanding the employment laws of Japan.
Figure 5: Map of Hokkaido Showing Airport Locations, Roads/Highway and Railway track Networking. Understand the regulations for import and export construction of materials in and out of Japan. For example the import tax for importing lead metal for radioactive protection for China the biggest lead exporter in the world.
Logistics wise e.g. the distances of the job site to all the focal points, terrain of the project site and the vicinity, transportation services by air, sea, land or train. This is
important for delivery of materials for construction works e.g. sand, concrete, reinforcement, lead panel and etc. Also required to export of radioactive waste and radioactive structures for safe store. Import big truck carrying cement pump for entombment construction. Infrastructure matters e.g. road, ports, railway and airport for import and export materials for construction works. Is going to be used for construction activities and also for the workers and machineries to come to the jobsite. Facilities such as equipment, telecommunication, electricity, internet and others. Despite basic need for workers, telecommunication and internet are also very vital as the resources are coming from various parts of the world therefore a lot of coordination works need to be done. The telecommunication also important for reporting and communicating as the design head office for the French technical expertise are based in France. Surely they need to communicate often as complex construction will face problem long the process. Time zone and physical distance might contribute negative factors. Problem in communication to HQ, suppliers and others. Workers might spent night time contacting family and love one and might affect their sleep time.
Photo 3: Good road and railway network are requires for transferring the radioactive fuel assemblies and sections of the reactor vessel internals to the dry cask storage yard Safe Store area (Connecticut Yankee). Government stability, whether the area are safe from riots, war and etc. Any issues on the stability might incur the project cost and risk. To understand the laws difference as we do not want to offence Japanese laws. Sometime the law might differ and therefore we do not want to get trap. Finances issues for example the currency stability in order for us to cost the currency exchange rate, finance cost and the risk to the project.
Resources consistency This is important as the company might need to mobilise some resources e.g. machineries from other countries shall the back up here is in sufficient of not consistent. Additional cost might incur as contractor might need to have these machineries or equipment in house Health and hygiene matters This is important in order for the company to take any extra precaution to ensure the workers health and safeties are conserved. Security Extra precaution must be considered shall the workplace or the safe store yard is unsafe e.g. got pirate or gangs in the vicinity. Supervision of workers that come from various places also requires good interpersonal skills. Project risk. The far the project location from the company head office will normally add to higher the risk. This is due to logistic, communication and management of resources and reporting.
Photo 4: A truck carrying a cement pump that can extend nearly 200 feet is loaded onto an Antonov 124 plane in Stuttgart, Germany. A few of them flown to Japan to help at stricken the Fukushima nuclear power plant.
8. DIFFERENCES IN CULTURE, COMMUNICATION.
Differences in culture and communications are another two aspects that may ruin the successful of global contract shall they have not been address properly.
Differences in culture When talked about culture we cannot denied about the customs, the religion and the mind sets as in a way they are somehow rather are interrelated.
Culture and attitude In order not to create culture confliction with the locals, their way of life (Japanese people) should be understood. The things that we all accepted well might not be accepted here. It also goes to the staff as the workers are coming from various countries, background and races in order keep the harmony and cordial working environment, optimise their productivity and interact well with locals, extra effort are requires in order to avoid any complications. Relevant festive season as the off days also need to be identified and considered in our work schedule to avoid unnecessary lost of day work or productivity as some workers they will not turn to work on this event with or without the company approval. Behaviour. For some workers from different country they might not get along or surely will have a conflict if they are requires to work side by side or work along each other. A good management should anticipate this matter and split these workers to ensure work can goes well and conflicts can be avoided.
Religion is another sensitive issue. Some religion may have some restriction and therefore all sensitive issues should be stopped from taking in into the jobsite and may need to consider some festive season as off day. Understanding the business culture of Japan might help us to manage the project in a better manner. Japanese people not easy to trust somebody that they have just met. It is a challenge that we need to take. Understanding social customs of Japanese people will be an advantage to the project other then we need to interact outside the workplace but quite a big number of personnel and the suppliers are also Japanese people.
Communication
Project communication is a link which connects the major goals of a project: time schedule quality expected cost estimated and safety requirement. Communication is important because depending on the thoroughness, comprehensiveness and effectiveness of the communication; the goals of the project would be perfect and as expected or not.
From this viewpoint, the objective of this report is to study on various factors impact to communication in construction projects and how to improve the communication in construction so that it can help and support the construction management team to get the planned targets effectively and conveniently.
One of the traits and probably the most important factor in all successful construction projects is communication both internal and external. So, how the communication would be helpful for construction targets? What effective measures and medium should be used in modern construction now? What is the adverse way/manner in construction communication that should be avoided and eliminated for ensuring smooth and as good as practice performance/activities in construction?
Communication is the process by which information is exchanged between individuals through a common system of symbols, signs, or behaviour. Communication is a two-way process: between the sender and the receiver(s). Hence, it is important to consider the receiver not just as a passive recipient. Proper communication is vital to the success of a project.
Most failures in communication can be traced to misunderstandings of the symbols that play an important part in the process of human communication. This is mainly due to inadequacies in creating, transmitting, and receiving these symbols, both written and spoken. In most companies, executives are bombarded with information communicated to them through frequent meetings and dozens of weekly status reports provided by every functional area of the business.
It is an undisputed fact that the quality and frequency of information moving down the organisational chart is less consistent. Lack of quality assurance and control in engineering documentation creates the opportunity for errors by those who use the documentation in their work. However, in the engineering disciplines a great amount of communication within project teams involves symbols that are more precise in their meaning compared to the management disciplines.
Name: Mohd. Norizam Bin Md. Salleh Matriculation No.: CGS 00534317 Intake: September 2010 Assignment EMCM5103 Basically a project is linked together by its system of communications. The role of the project manager (PM) is similar to that of the central server in the local area network of a computer system. The PM is responsible for the continuous and comprehensive flow of information to and from team members, whilst focusing on communicating information and decisions that may influence the project team work.
The project manager needs to maintain communication links with all project stakeholders. However, certain stakeholders require direct and ongoing communication, they are:
Customers (owners, users). Project team members. General managers. Functional managers. Regulatory agencies. Subcontractors. Suppliers
Effective project communications ensure that the right information gets to the right person at the right time in a cost-effective manner. Communication that is effective consists of:
An exchange of information. A verbal or written message. An act or instance of transmitting information. A technique for expressing ideas effectively.
Name: Mohd. Norizam Bin Md. Salleh Matriculation No.: CGS 00534317 Intake: September 2010 Assignment EMCM5103 A process by which meanings are exchanged between individuals through a common system of symbols.
Most project managers communicate laterally, whereas line managers communicate vertically downward to subordinates. Much of the day-to-day work on a project is accomplished by informal exchanges of information among team members. Most project managers prefer to communicate verbally and informally, one reason also being that formal communication can be costly.
Project communications includes distributing and channelling information on decisions made, work authorisations, negotiations, and project reports. Project managers in excellent companies believe that they spend as much as 90 percent of their time on internal interpersonal communication with members of their team. Figure 4.3 illustrates the communication channels used by a typical project manager.
Figure 6: Communication channels used by Project Manager (OUM notes)
Project team members need to be proactive in initiating timely communication with other team members and the project manager. Communications management is the formal or informal process of conducting or supervising the exchange of information either upward, downward, laterally or diagonally.
Communications management is vital for effective project performance. Project members need to know and understand the action that is to be carried out on a project. It is important to consider the following basic concepts of communication theory and practice:
Only one common language (English) to be used in the project. Be as specific, simple, precise and clear as possible about the information to be conveyed. Know who the receiver is and what are the receivers expectations. Design and develop the message with the receiver in mind, keeping in mind the receivers role in the project. Prompt & instant Internal & external Suitable & proper for any circumstance Effective and productive Timely and synchronous Friendly and appropriate
Communication is always an indispensable necessity and demand of individual, collectivity, community, and organization. In construction and for construction projects, especially for big project or trans-countries project, such regard becomes more and more important. It plays a vital role for the link of all resources to create a collective and common force for the wellperformance of the project, hence bring benefits to every involved individual and team/group, company, community and society.
Building an effective and powerful communication system for a construction project is not a simple/easy work at all. It demands good background, expertise platform, life experienced and a brain-storming as well as an open soul and inspiration; and of course subject to the specificity, particularity and size of the desired construction project.
All manners and measures are settled for the ultimate goal: the success of the project - meant benefits brought to the clients, contractors, supplier, all parties involved, community and society.
The success of construction project also mean success in every phase of the project. Therefore the communication plan or method applied to the project should be deployed and mobilized effectively and productively through every stage of the construction project such as:
Planning stage: Quite understand the intention of the client; the purposes and functions of the project. Deeply discuss and consult with the client for common understanding. Collect experience from expert on each specific and particular disciplines of the constructed project, to learn the best estimation on technique, technology, cost and schedule. Anticipate and evaluate the pros and cons for the project; and then exchange, dialogue with the client and project team. Create a harmonious team which will result in perfect teamwork consists of project management, conceptual architects, quantity surveyors and the authorized
representatives of the client.
Design stage: Clearly classify and discriminate sets of drawings: architectural, structural, mechanical, electrical, plumbing, faade, curtain wall, interior, setting-out, schematics, plan and section layout. Collect and then select a qualified list of designers with the approval from the client. Timely and validly update for revised set of drawings or bulletin so that any update of drawings is always recorded, documented and controlled.
Construction stage: All contractors, subcontractors, suppliers, installer, and others must conform to and comply with a very clear, strong and powerful project procedure. A very effective and valid method and means of communication is media. This will not be interrupted and limited as much as expected on the variant, deformation or distortion of the information transmitted to the destination. Have an effective mechanism of sending, receiving and feed-back of information. A very clear, transparent, friendly and open-minded mechanism for intercommunicating between the client, project management and contractors, suppliers. Instruction or notices should be prompt, timely, and accurate.
Close-out stage: Clear instruction and schedule for contractors to hand-over. Close coordination with the client for taking-over Thorough checking for the compliance of local and international codes. Documentation of all paper works for hand-over and take-over process.
External relations and communication: To court, to win the popularity, especially for the supports from local authorities and press, public opinion. To strictly keep the security of adjacent community and environment. Keep informing and communicating positively with press and media.
To create opportunity and influence for any possible chance.
Always consider the very important role of external communication, public and media, and especially the support from local authorities and community.
Important role of ICT and advanced technology:
Role of ICT information & communication technology plays important and efficient factors in project communication. Telecom and Communication equipment/devices in a construction project should be sufficient, redundant, back-up and standby and as advanced as possible. Computers, servers and routers used in construction site, document control as well as project management should be powerful and durable; sufficient to handle a lot of information coming at the same time. And also be ready for a satellite leased lines for contingency.
For a very big project or trans-country/trans-border construction project, an intermediate server and/or share-point; share-archive is recommended for convenience and help for intercommunication.
Communication in construction project is the art of control, monitoring, verification, recording and documentation. Obviously, a lot of factors affect to the process; positively and negatively as well. This requires the project management to be smart to filter and identify what are the
helpful and active things that bring the advantages and conveniences to the project implementation.
Some common problems that may suffering due to many problems in communication management. Are as follows;
1. Usually skipping communication management or just approaching it shallowly due to lack of knowledge in this area.
2. Problems related to interpersonal communication (such as face-to-face meetings), intragroup communication (such as interactions between team members) or inter-group communication (such as interactions between main contractors and sub-contractors) occur very frequently at many projects. Consequently, projects communication often breaks down and projects are likely to be failed.
3. Unable to determine project stakeholders needs for information, unable to determine communication channels in projects, insufficient interaction between project management and team members or between main contractor and sub-contractors or within team members, inappropriate communication media, etc.
4. Timing of distributing information, correct information to correct stake holders, wasting a large amount of time and resources for unnecessary meetings, etc.
5. Unable to combine verbal communication and non-verbal communication in order to achieve targets.
6. Abusive using of bad emotional methods during interaction between project management and team members such as fear and threats, aversive stimulation, etc.
It is important to understand the nature of the problems and to find ways to solve them in order to be able to develop an effective communication management system in construction projects. Mr. Nguyen Canh Toan made a study which objectives were to: (1) investigate the communication interactions within construction project team so that communication problems causing project interruption can be identified; and (2) propose recommendations on how to improve communication management within construction project team.
In order to avoid similar communication problems, recommendations are given below:
1. Project Manager shall prepare project management plan including communication plan in the beginning of the project.
2. Strictly following the communication plan. Incentives shall be provided to encourage everybody to carry it out properly, and also treatments or even punishments for bad behaviours.
3. Document controller position must be stable as much as possible in order to ensure that the information distribution process is in order.
4. In case of ISO certified company, Project Manager should give feedback to the companys Quality Manager to add in personality test forms together with Job Application Assessment Procedures forms. That will save Project Managers time whenever there is new job applicant coming to job site for interviewing.
5. Using new information-conveying methods such as: web-based data distribution, e-meeting, etc. in order for easy document control and timing of document distribution.
6. Organizing trainings for the team members in order for them to know how to use both verbal and non-verbal communication effectively.
7. Outside activities such as playing football, parties, etc. are recommended to improve relationships among team members and between the main contractor and subcontractors.

Assignment-EMCM (Contract Management) Q2

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Assignment-EMCM (Contract Management) Q2

Uploaded by

Copyright:

Available Formats

Name: Mohd. Norizam Bin Md. Salleh Matriculation No.

: CGS 00534317 Intake: September 2010 Assignment EMCM5103

You are working as the project manager of a large international contractor.

The project is expected to take a total of three years to complete.

(Approximately 4 marks for each of the 5 areas selected) [TOTAL: 20 MARKS]

Its geographical WGS84 coordinates are stated below;

43210N 1403045E, 43210N 1403045E,

43.03611N 140.5125E 43.03611N 140.5125E

Unit Tomari - 1 Tomari - 2 Tomari - 3

Electric Power 579 MW 579 MW 912 MW

4. EX-ANTE INCENTIVISATION AND FLEXIBLE, FAR-SIGHTED EX-POST GOVERNANCE.

Present Risk Absent

High Incentive Low Incentive Absent

Medium Incentive NO safeguard or Incentive necessary Present Safeguard

Figure 4: A simple contractual schema for ex-ante incentivization

5. STANDARD FORM OF CONTRACT AND SOURCES

Offer Acceptance The intention to be legally bound Consideration

8. DIFFERENCES IN CULTURE, COMMUNICATION.

Figure 6: Communication channels used by Project Manager (OUM notes)

representatives of the client.

To create opportunity and influence for any possible chance.

Important role of ICT and advanced technology:

In order to avoid similar communication problems, recommendations are given below:

You might also like