PROFFESIONAL PRACTISE AND ETHICS-II

UNIT I TENDER
Types of Tenders-Open and closed tenders-Conditions of tender-Tender
documents-Tender notice-Concept of EMD-Submission of tender-Tender scrutinyTender analysis Recommendations- E tendering (advantages, procedure,
conditions).

UNIT II CONTRACT & ARBITRATION

Contents of Contract document (Articles of Agreement, Terms and Conditions of
Contract,
Important clauses Appendix) Arbitration (Definition, Advantages of arbitration,
Sole and
joint arbitrators, Role of umpires, Award, Conduct of arbitration proceedings)
Arbitration
clause in contract agreement (role of architect, excepted matters) case studies.

UNIT III NEW TRENDS IN PROJECT FORMULATION AND

EXECUTION
Turn key offer (Expression of interest, Request for Proposal Document, Conditions
for
inviting turnkey offer, finalization of the bidder) Current practices in Project
execution
[Build operate and Transfer (BOT), Build Operate Lease and Transfer (BOLT) and
Build
Operate and Own (BOO) and others case studies.

UNIT IV IMPLICATIONS OF GLOBALISATION IN ARCHITECTURAL

PRACTICE
Globalization (meaning, advantages) WTO and GATS and their relevance to
architectural
profession in India Pre-requisites for Indian architects to work in other countries

Preparedness and infrastructure requirements for global practice Entry of

foreign architects in India (views for and against) Information Technology and its
impact on architectural practice.

UNIT V EMERGING SPECIALISATIONS FOR AN ARCHITECT

Construction management (Role, function, and responsibilities of a construction
manager)
Project management (Concept, Objectives, Planning, Scheduling, Controlling and
Role and
Responsibilities of project manager) Suitability of architect as construction /
project
Manager Program evaluation review Techniques (event, activity, dummy
network rules, graphical guidelines for network PERT network).

EARNEST MONEY:
A deposit made to a seller showing the buyer's good faith in a transaction. Often
used in real estate transactions, earnest money allows the buyer additional time
when seeking financing. Earnest money is typically held jointly by the seller and
buyer in a trust or escrow account.

UNIT-II
Calculation of turnkey contracts:
The calculation of turnkey contracts is similar to the calculation of main
contracts. The calculation does, however, include more costs because it
contains all expenditure in relation to the completely finished building whereas
the main contractors tender bid only contains the costs of the items mentioned
in the tender documents.
In addition to costs already mentioned in Calculating main contracts (above)
the turnkey contract calculation also includes the below listed additional costs:
1. Designing
2. Printing drawings
3. Service charges (sewer, water, electricity, district heating etc.)

4. Planning permission
5. Other expenditures related to the building project in question.
Cf 1: Design expenditure (fees for architect, engineer, landscape architect etc.)
shall be included in the tender bid. The client may have an agreement with an
architect in formulating the project brief and may demand that the turnkey
contractor accepts that final design will be carried out by the same architect but
paid by the turnkey contractor. If this is not the case, the turnkey contractor sets
his own team of professionals with whom he wants work and signs an
agreement concerning fees. In most cases the professionals do not receive any
payment in case the contract is not awarded to the turnkey contractor (no cure
no pay).
Cf 2: The printing of drawings is quite often a considerable cost and should be
included. In most cases the contractor knows by experience how much the
printing will amount to.
Cf 3 Service charges may be considerable and should be investigated before the
calculation is terminated.
Cf 4: The municipality demands payment for the issuing of a planning
permission. The fee is calculated on the basis of the gross floor area multiplied
by a square meter factor fixed by the municipality.
Cf 5: Other costs related to the project in question are entered here.
Working out the tender bid summary and the filling in of bid schedules (if they
exist) are carried out in the same way as specified in Calculation of main
contract.
CHAPTER III
Turnkey offer-A Turnkey contract is a business arrangement in which a project is
delivered in a completed state. Rather than contracting with an owner to develop
a project in stages, the developer is hired to finish the entire project without
owner input. The builder or developer is separate from the final owner or
operator, and the project is turned over only once it is fully operational. In effect,
the developer is finishing the project and turning the key over to the new
owner.
This type of arrangement is commonly used for construction projects ranging
from single buildings to large-scale developments. Under a traditional lump-sum
contract, the owner agrees to pay the developer to complete a project that is
built to the owner's specifications. The owner is given many opportunities to
make decisions throughout the project, and to make changes as needed. In a
turnkey contract, the owner is generally left out of the building process entirely as
the developer handles all decisions and problems related to construction.
Definition of 'Build-Operate-Transfer Contract'
A type of arrangement in which the private sector builds an infrastructure project,
operates it and eventually transfers ownership of the project to the government.
In many instances, the government becomes the firm's only customer and
promises to purchase at least a predetermined amount of the project's output.

This ensures that the firm recoups its initial investment in a reasonable time
span.
(b) Build-operate-and-transfer - A contractual arrangement whereby the project
proponent undertakes the construction, including financing, of a given
infrastructure facility, and the operation maintenance thereof. The project
proponent operates the facility over a fixed term during which it is allowed to
charge facility users appropriate tolls, fees, rentals, and charges not exceeding
those proposed in its bidor as negotiated and incorporated in the contract to
enable the project proponent to recover its investment, and operating and
maintenance expenses in the project. The project
proponent transfers the facility to the government agency or local government
unit concerned at the end of the fixed term which shall not exceed fifty (50)
years:
"The build-operate-and-transfer shall include a supply-and-operate situation
which is a contractual ar
rangement whereby the supplier of equipment and machinery fora given
infrastructure facility, if the interest of the Government so requires, operates the
facility providing in the process technology transfer and training.
(c) Build-and-transfer - A contractual arrangementwhereby the project proponent
undertakes the financing and construction of a given infrastructure or
development facility and after its completion turns it over to the government
agency or local government unit concerned, which shall pay the proponent on an
agreed schedule its total investments expended on the project, plus a reasonable
rate of return thereon. This arrangement may be employed in the construction of
any infrastructure or development project, including critical facilities which, for
security or strategic
reasons, must be operated directly by the Government.
"(d) Build-own-and-operate - A contractual arrangement whereby a project
proponent is authorized to finance, construct, own, operate and maintain an
infrastructure or development facility from which the proponent is allowed to
recover its total investment, operating and maintenance costs plus a reasonable
return thereon by collecting tolls, fees, rentals or other charges from facility
users: Provided, That all such projects, upon recommendation of the Investment
Coordination Committee (ICC) of the National Economic and Development
Authority (NEDA), shall be approved by the
President. Under this project, the proponent which owns the assets of the facility
may assign its operation and maintenance to a facility operator.
(e) Build-lease-and-transfer - A contractual arrangement whereby a project
proponent is authorized to finance and construct an infrastructure or
development facility and upon its completion turns it over to the government
agency or local government unit concerned on a lease arrangement for a fixed
period after which ownership of the facility is automatically transferred to the
government agency or local government unit concerned.
(f) Build-transfer-and-operate - A contractual arrangement whereby the public
sector contracts out the building of an infrastructure facility to a private entity

such that the contractor builds the facility on a turn-keybasis, assuming cost
overrun, delay and specified performance risks.
"Once the facility is commissioned satisfactorily,title is transferred to the
implementing agency/LGU. The private entity, however, operates the facility on
behalf of the implementing agency/LGU under an agreement.
(g) Contract-add-and-operate - A contractual arrangement whereby the project
proponent adds to an existing infrastructure facility which it is renting from the
government. It operates the expanded project over an agreed franchise period.
There may, or may not be, a transfer arrangement in regard to the facility.
What is a BLOT project?
BLOT (build, lease, operate, transfer) is a public-private partnership (PPP) project
model in which a private organization designs, finances and builds a facility on
leased public land. The private organization operates the facility for the duration
of the lease and then transfers ownership to the public organization.
CHAPTER 4
GATS and WTO in relevance to architecture profession in india
Q.1. When did the General Agreement on Trade in Services
(GATS) come into existence?
The General Agreement on Trade in Services (GATS) came into existence as a
result of
the Uruguay Round of negotiations and entered into force on 1 January 1995, with
the establishment
of the WTO.
The multilateral legal instruments resulting from the Uruguay Round were treated
as a single undertaking. India also signed all the WTO agreements under the
single undertaking rule and
GATS is a part of this whole package.
Q.2. What is the main purpose of GATS?
Prior to the Uruguay Round, services were considered to offer less potential for
trade expansion than goods, thanks to existence of technical, institutional and
regulatory barriers. However, the development of new transmission technologies
facilitating the supply of services (e.g. satellite communication, electronic
banking, tele-education), the opening of monopolies in many countries (e.g. voice
telephony), and gradual liberalization of hitherto regulated sectors like transport,
banking and insurance combined with changes in consumer preferences,
enhanced the tradeability of services. These developments increased
international services flows and created a similar need for multilateral disciplines
as in the area of goods. Thus, the main purpose for the creation of the
General Agreement on Trade in Services (GATS) was to create a credible and
reliable system of
international trade rules, which ensured fair and equitable treatment of all
countries on the principles of non-discrimination

. It aims at stimulating trade and development by seeking to create a predictable

policy environment wherein the member countries voluntarily undertake to bind
their policy-regimes relating to trade in services.
Let us consider a specific example to distinguish between the four modes of
supply. A particular firm in country X establishes a subsidiary in country Y. This
is supply of services through Mode
3 i.e. Commercial Presence
. An architect of the said firm sends blueprints over the Internet to another firm in
country Y- this is
Mode 1 i.e. Cross Border Supply. An Engineer from the said firm is deputed to
work in the subsidiary
firm established in country Y for a limited period for managerial operations this
is Mode 4 i.e. Movement of Natural Persons. Certain trainees from the subsidiary
in country Y visit country X
Practice for foreign architects in india:
The Council of Architecture (CoA), the regulatory body for the profession, has
stepped up its fight against foreign architects practicing in India attracting
severe criticism from several countries, including the US.
Although foreign architects are not allowed to practice in India, several entities
were rendering services in the country, either directly or through tie-ups with
local players. A 1972 law explicitly prohibits any foreign firm architect and the
government, despite its keenness, has refused to open up the sector despite
negotiations at the World trade organisation (WTO).
"only those registered with the council can practice in India". Apart from those
with degrees from recognized Indian architecture schools, the Architect's Act also
recognizes qualifications from certain countries on a "reciprocal basis".
The law clearly bars foreign architects from practicing in India. "It is not part of
our commitment to WTO and can only be done if there is qualification
equivalence or mutual recognition," . This means that architects from a foreign
country can be allowed to practice in India on a reciprocal basis if the professional
qualifications are accepted or architects from either country clear the stipulated
professional tests. For this to happen, CoA and its foreign counterpart have to
come to an agreement.
REGULATORY STEPS ANDPROCEDURES INVOLVED IN ARCHITECTS
WORKING ABROAD
Regulatory Restraints
The common domestic regulatory constraints may include: a) the acquisition of a
university degree
from an accredited university/school of architecture; b) the accumulation of a
specified period of
recognized and documented post-degree professional
internship experience; c) qualifying for, taking and passing a legally mandated
registration examination; and d) the maintenance of a record of professional
practicenot diminished by ethical or professional issues. In a number of countries
there

exists a legal requirement that to be professionally registered one must be a legal

resident of the country. Prohibition on advertising and the adherence to
mandatory fee schedules exist in many countries.A newly developed constraint is
the requirement to participate in an organized system of continuing professional
development in order to maintain membership in a professional body and/or
maintain ones professional license.
Driving Forces
There are five major driving forces that take architects into foreign markets.
First are the clients undertaking design and building projects seeking the services
of foreign architects who have established an internationally renowned
designreputation or who are seeking the services for specialized building types.
The second are business decisions by clients encouraged and facilitated by free
trade agreements who then wish to take their established domestic client
relationships with them into an international arena. Third are public agencies
commissioning domestic architects for projects in foreign countries. Fourth are
architects winning public and private design competitions in foreign countries.
Fifth is the downturn in the domestic economy which results in architects turning
to more successful national economies seeking project commissions in those
countries.
Deciding the Form of Foreign Practice
Any architects working outside their own country are required to make both a
legal and a busin
ess decision with regard to engaging the regulatory regime in the host country. Is
this form of practice likely to a one-time event or potentially the initiation of a
long term project presence?
If it is a one-time event then the most likely course of action will be to identify a
competent local
registered architect, negotiate and sign professional service contract with them,
and have the local architect serve as the legal project architect of record. The
contractual relationship defines their respective 12responsibilities and how the
client fee will be apportioned. This apportionment varies from project to project
depending on the scope of work negotiated between the foreign and domestic
architects. Most commonly the foreign architect carries the project through the
entire design development process. The domestic architect commonly prepares
the working drawings and specifications, assumes responsibility for adhering to
codes of ethics, signing and stamping all of the building documents and assuring
adherenceto all applicable building codes and regulations.
The local architect is also knowledgeable in the countrys
language, construction bidding procedures and construction supervision
methods. Thisapproachavoids the necessity of the foreign architect becoming
registered in the host country. It is a common form of international practice.
If the foreign architect is making a business decision to maintain an ongoing
professional business
presence and practice in a foreign country in order to be the sole architect of
record, then it is necessary to become legally registered in that country under the
prevailing laws and regulations.

There are increasing instances of architectural firms in one country buying a firm
in another country
to expand their international practice.Information Sources for National
Architectural Registration
Within the last decade the availability and accessibility of national information on
architectural
registration laws, regulations, procedures and responsible national bodies have
improved significantly.
Chapter 5
Project manager
A project manager is a professional in the field of project management. Project
managers can have the responsibility of the planning, execution and closing of
any project, typically relating to construction industry, architecture, aerospace
and defense, computer networking, telecommunications or software
development.Many other fields in the production, design and service industries
also have project managers.
Overview
A project manager is the person responsible for accomplishing the stated project
objectives. Key project management responsibilities include creating clear and
attainable project objectives, building the project requirements, and managing
the constraints of the project management triangle, which are cost, time, scope,
and quality.
A project manager is often a client representative and has to determine and
implement the exact needs of the client, based on knowledge of the firm they are
representing. A project manager is the bridging gap between the production team
and client. So s/he must have a fair knowledge of the industry they are in so that
they are capable of understanding and discussing the problems with either party.
The ability to adapt to the various internal procedures of the contracting party,
and to form close links with the nominated representatives, is essential in
ensuring that the key issues of cost, time, quality and above all, client
satisfaction, can be realized.
The term and title 'project manager' has come to be used generically to describe
anyone given responsibility to complete a project. However, it is more properly
used to describe a person with full responsibility and the same level of authority
required to complete a project. If a person does not have high levels of both
responsibility and authority then they are better described as a project
administrator, coordinator, facilitator or expeditor.
Project Manager Topics
Project Management
Project Management is quite often the province and responsibility of an
individual project manager. This individual seldom participates directly in

the activities that produce the end result, but rather strives to maintain the
progress and mutual interaction and tasks of various parties in such a way
that reduces the risk of overall failure, maximizes benefits, and restricts
costs.
Products and Services
Any type of product or service pharmaceuticals, building construction,
vehicles, electronics, computer software, financial services, etc. may
have its implementation overseen by a project manager and its operations
by a product manager.

Project Tools
The tools, knowledge and techniques for managing projects are often
unique to Project Management. For example: work breakdown structures,
critical path analysis and earned value management. Understanding and
applying the tools and techniques which are generally recognized as good
practices are not sufficient alone for effective project management.
Effective project management requires that the project manager
understands and uses the knowledge and skills from at least four areas of
expertise. Examples are PMBOK, Application Area Knowledge: standards
and regulations set forth by ISO for project management, General
Management Skills and Project Environment Management[1] There are also
many options for project management software to assist in executing
projects for the project manager and his/her team.
Project Teams
When recruiting and building an effective team, the manager must consider
not only the technical skills of each person, but also the critical roles and
chemistry between workers. A project team has mainly three separate
components: Project Manager, Core Team and Contracted Team.
Risk
Most of the project management issues that influence a project arise from
risk, which in turn arises from uncertainty. The successful project manager
focuses on this as his/her main concern and attempts to reduce risk
significantly, often by adhering to a policy of open communication, ensuring
that project participants can voice their opinions and concerns.
Types of project managers
Construction Project Manager
Construction project managers in the past were individuals, who worked in
construction or supporting industries and were promoted to foreman. It was not
until the late 20th century that construction and Construction management
became distinct fields.
Until recently, the American construction industry lacked any level of
standardization, with individual States determining the eligibility requirements

within their jurisdiction. However, several Trade associations based in the United
States have made strides in creating a commonly accepted set of qualifications
and tests to determine a project manager's competency.

The Project Management Institute has made some headway into being a
standardizing body with its creation of the Project Management Professional
(PMP) designation.
The Constructor Certification Commission of the American Institute of
Constructors holds semiannual nationwide tests. Eight American
Construction Management programs require that students take these
exams before they may receive their Bachelor of Science in Construction
Management degree, and 15 other Universities actively encourage their
students to consider the exams.
The Associated Colleges of Construction Education, and the Associated
Schools of Construction have made considerable progress in developing
national standards for construction education programs.

The profession has recently grown to accommodate several dozen Construction

Management Bachelor of Science programs. Many universities have also begun
offering a Master's Degree in Project Management. These programs generally are
tailored to working professionals who have project management experience or
project related experience; they provide a more intense and in depth education
surrounding the knowledge areas within the project management body of
knowledge.
Architectural Project Manager
Architectural project manager are project managers in the field of architecture.
They have many of the same skills as their counterpart in the construction
industry. An architect will often work closely with the construction project
manager in the office of the General contractor (GC), and at the same time,
coordinate the work of the design team and numerous consultants who
contribute to a construction project, and manage communication with the client.
The issues of budget, scheduling, and quality-control are the responsibility of the
Project Manager in an architect's office.
DUTIES OF A PROJECT MANAGER :
A project manager's primary role is to be a facilitator with the goal being to
ensure that a project is completed on time, within budget, and according to the
requirements. As you might guess, being a facilitator can mean wearing many
hats.
Typical project management duties include:
* setting up meetings; running meetings; writing and distributing meeting
minutes
* determining resources required, interviewing candidates, vetting vendors, and
assigning tasks
* creating a plan, executing a plan, and adjusting the plan as necessary

* preparing status reports and presenting to upper management

From the above, it should be obvious that being a project manager means
communicating all the time and in many forms. But a project manager should
also be thinking and not just doing. For example, challenging the status quo and
forcing other people to justify their opinions is important. Also, asking questions
even when the answer may be obvious is critical because often the answer isn't
what was expected.
A project manager should always be learning something new. This includes
becoming familiar with new technology from internal or external resources;
understanding the weaknesses and motivations of a team member; and
identifying more efficient ways to perform an existing process. The learning
should never stop. If it does, it likely means you're not doing your job properly or
your employer doesn't want you around.
There's a lot to project management and some companies expect a lot from their
project managers.
Construction management
Construction management or construction project management (CPM) is
the overall planning, coordination, and control of a project from beginning to
completion. CPM is aimed at meeting a client's requirement in order to produce a
functionally and financially viable project.
Construction as an Industry
The construction industry is composed of five sectors: residential, commercial,
heavy civil, industrial, and environmental. A construction manager holds the
same responsibilities and completes the same processes in each sector. All that
separates a construction manager in one sector from one in another is the
knowledge of the construction site. This may include different types of
equipment, materials, subcontractors, and possibly locations.
The Role of a Contractor
A contractor is assigned to a construction project once the design has been
completed by the architect or is still in progress. This is done by going through a
bidding process with different contractors. The contractor is selected by using
one of three common selection methods: low-bid selection, best-value selection,
or qualifications-based selection. this is the main role of a contractor.
Skills Needed for Construction Management
A construction manager should have the ability to handle public safety, time
management, cost management, quality management,decision making,
mathematics, working drawings,and human resources.[2]

Functions -The functions of Construction management typically include the

following:
1.

2.

3.

4.

Specifying project objectives and plans including delineation of scope,

budgeting, scheduling, setting performance requirements, and selecting
project participants.
Maximizing the resource efficiency through procurement of labor, materials
and equipment.
Implementing various operations through proper coordination and control
of planning, design, estimating, contracting and construction in the entire
process.
Developing effective communications and mechanisms for resolving
conflicts.:[3]

The Construction Management Association of America (a US construction

management certification and advocacy body) says the 120 most common
responsibilities of a Construction Manager fall into the following 7 categories:
Project Management Planning, Cost Management, Time Management, Quality
Management, Contract Administration, Safety Management, and CM Professional
Practice. CM professional practice includes specific activities, such as defining the
responsibilities and management structure of the project management team,
organizing and leading by implementing project controls, defining roles and
responsibilities, developing communication protocols, and identifying elements of
project design and construction likely to give rise to disputes and claims.

The Five Types of Construction

Residential: Residential construction includes individual homes,

apartments, condominiums, townhouses, and other housing types.[2]
Commercial: This refers to construction dealing with the needs of
commerce, trade, and government. Examples include shopping centers,
schools, banks, hospitals, theaters, and government buildings.
Heavy Civil: The construction of transportation infrastructure such as
roads, bridges, railroads, tunnels, and airports. [2] Dams are also included
here, but other water-related infrastructure is considered environmental.
Industrial: Buildings and other constructed items used for product
production, including chemical plants, steel mills, oil refineries,
manufacturing plants, and pipelines.
Environmental: Environmental construction used to be part of heavy civil,
but is now its own section, dealing with projects that improve the
environment. Some examples are sanitary sewers, waste management, and
clean water.[2]

Construction management jobs

Planning Engineer
Project coordinator
Field Engineer
Office Engineer
Quantity Surveyor
Project Engineer
Area Superintendent
Project Superintendent
Project Manager
Estimator
Lead Estimator
Senior Estimator
Chief Estimator
Project Executive

Obtaining the Project

Bids
A bid is given to the owner by construction managers that are willing to complete
their construction project. A bid tells the owner how much money they should
expect to pay the construction management company in order for them to
complete the project.[2]

Open Bid: An open bid is used for public projects. Any and all contractors
are allowed to submit their bid due to public advertising.
Closed Bid: A closed bid is used for private projects. A selection of
contractors are sent an invitation for bid so only they can submit a bid for
the specified project.[2]

Selection Methods

Low-bid selection: This selection focuses on the price of a project.

Multiple construction management companies submit a bid to the owner
that is the lowest amount they are willing to do the job for. Then the owner
usually chooses the company with the lowest bid to complete the job for
them.[2]

Best-value selection: This selection focuses on both the price and

qualifications of the contractors submitting bids. This means that the owner
chooses the contractor with the best price and the best qualifications. The
owner decides by using a request for proposal (RFP), which provides the
owner with the contractor's exact form of scheduling and budgeting that
the contractor expects to use for the project.[2]

Qualifications-based selection: This selection is used when the owner

decides to choose the contractor only on the basis of their qualifications.
The owner then uses a request for qualifications (RFQ), which provides the
owner with the contractor's experience, management plans, project
organization, and budget and schedule performance. The owner may also
ask for safety records and individual credentials of their members. [2]

Payment Contracts

Lump-sum: This is the most common type of contract. The construction

manager and the owner agree on the overall cost of the construction
project and the owner is responsible for paying that amount whether the
construction project exceeds or falls below the agreed price of payment. [2]

Cost-Plus-Fee: This contract provides payment for the contractor

including the total cost of the project as well as a fixed fee or percentage of
the total cost. This contract is beneficial to the contractor since any
additional costs will be paid for even though they were unexpected for the
owner.[2]

Guaranteed Maximum Price: This contract is the same as the cost-plusfee contract although there is a set price that the overall cost and fee do
not go above.[2]

Unit-Price: This contract is used when the cost cannot be determined

ahead of time. The owner provides materials with a specific unit price to
limit spending.[2]
Project stages
Design
The design stage contains a lot of steps: programming and feasibility, schematic
design, design development, and contract documents. It is the responsibility of
the design team to ensure that the design meets all building codes and
regulations. It is during the design stage that the bidding process takes place.[2]

Programming and feasibility: The needs, goals, and objectives must be

determined for the building. Decisions must be made on the building size,
number of rooms, how the space will be used, and who will be using the
space. This must all be considered to begin the actual designing of the
building.
Schematic design: Schematic designs are sketches used to identify
spaces, shapes, and patterns. Materials, sizes, colors, and textures must be
considered in the sketches.[2]
Design development (DD): This step requires research and investigation
into what materials and equipment will be used as well as their cost.
Contract documents (CDs): Contract documents are the final drawings
and specifications of the construction project. They are used by contractors
to determine their bid while builders use them for the construction process.
Contract documents can also be called working drawings.[2]

Pre-Construction
The pre-construction stage begins when the owner gives a notice to proceed to
the contractor that they have chosen through the bidding process. A notice to
proceed is when the owner gives permission to the contractor to begin their work
on the project. The first step is to assign the project team which includes the
project manager (PM), contract administrator, superintendent, and field engineer.
[2]

Project manager: The project manager is in charge of the project team.

Contract administrator: The contract administrator assists the project
manager as well as the superintendent with the details of the construction
contract.
Superintendent: It is the superintendent's job to make sure everything is
on schedule including flow of materials, deliveries, and equipment. They
are also in charge of coordinating on-site construction activities. [2]
Field Engineer: A field engineer is considered an entry-level position and
is responsible for paperwork.

During the pre-construction stage, a site investigation must take place. A site
investigation takes place to discover if any steps need to be implemented on the
job site. This is in order to get the site ready before the actual construction
begins. This also includes any unforeseen conditions such as historical artifacts or
environment problems. A soil test must be done to determine if the soil is in good
condition to be built upon.[2]
Procurement
The procurement stage is when labor, materials and equipment needed to
complete the project are purchased. This can be done by the general contractor if
the company does all their own construction work. If the contractor does not do
their own work, they obtain it through subcontractors. Subcontractors are
contractors who specialize in one particular aspect of the construction work such
as concrete, melding, glass, or carpentry. Subcontractors are hired the same way
a general contractor would be, which is through the bidding process. Purchase
orders are also part of the procurement stage.[2]

Purchase orders: A purchase order is used in various types of businesses.

In this case, a purchase order is an agreement between a buyer and seller
that the products purchased meet the required specifications for the agreed
price.[2]

Construction
The construction stage begins with a pre-construction meeting brought together
by the superintendent. The pre-construction meeting is meant to make decisions
dealing with work hours, material storage, quality control, and site access. The
next step is to move everything onto the construction site and set it all up.[2]
At this stage, construction monitoring [4] and supervision is of great importance to
ensure that a project is completed on time and on budget, while meeting all
relevant regulations and quality standards.[5]
Contractor progress payment schedule
A Contractor progress payment schedule is a schedule of when (according to
project milestones or specified dates) contractors and suppliers will be paid for
the current progress of installed work.

Progress payments are partial payments for work completed during a portion,
usually a month, during a construction period. Progress payments are made to
general contractors, subcontractors, and suppliers as construction projects
progress. Payments are typically made on a monthly basis but could be modified
to meet certain milestones. Progress payments are an important part of contract
administration for the contractor. Proper preparation of the information necessary
for payment processing can help the contractor financially complete the project.
[6]

Post-Construction
Once the construction has been completed there are specific steps that must be
taken to prepare the building for occupancy.

Project punchout: A project punchout means that the project must be

looked at for any issues before it is considered completely finished. Issues
may include replacing a cracked tile on the floor or changing the color of
paint. A list is created containing these issues and it is known as a punch
list or a snag list.[2]
Substantial completion: The architect for the project determines if the
building meets every requirement and issues a certificate of substantial
completion. This certificate announces the official completion of the project.
Final inspection: A final inspection is done by the building official once
the certificate of substantial completion has been issued.[2]
Certificate of Occupancy: A certificate of occupancy is issued by the
building official which informs the owner that it is now safe to occupy. This
is issued by the building official after the final inspection.
Commissioning: This is the process of testing systems and equipment to
ensure that they are working correctly. Then the owner must be trained to
properly operate the systems and equipment in the building. [2]
Final documentation: This provides information on the building to the
owner for future references. This includes warranties, operation manuals,
inspection and testing reports, and record drawings.
Final completion: Final completion occurs when all required paperwork
and documentation is completed, including payments to the contractor. [2]

Owner Occupancy
Once the owner moves into the building, a warranty period begins. This is to
ensure that all materials, equipment, and quality meet the expectations of the
owner that are included within the contract.[2]
Issues Resulting from Construction
Noise Control

Dust and Mud

Environmental Protections

Storm water pollution: As a result of construction, the soil is displaced

from its original location which can possibly cause environmental problems
in the future. Runoff can occur during storms which can possibly transfer
harmful pollutants through the soil to rivers, lakes, wetlands, and coastal
waters.

Endangered species: If endangered species have been found on the

construction site, the site must be shut down for some time. The
construction site must be shut down for as long as it takes for authorities to
make a decision on the situation. Once the situation has been assessed, the
contractor makes the appropriate accommodations to not disturb the
species.

Vegetation: There may often be particular trees or other vegetation that

must be protected on the job site. This may require fences or security tape
to warn builders that they must not be harmed.

Wetlands: The contractor must make accommodations so that erosion and

water flow are not affected by construction. Any liquid spills must be
maintained due to contaminants that may enter the wetland.

Historical or Cultural artifacts: Artifacts may include arrowheads,

pottery shards, and bones. All work comes to a halt if any artifacts are
found and will not resume until they can be properly examined and
removed from the area.[2]
Construction Activity Documentation
Project Meetings
Project meetings take place at scheduled intervals to discuss the progress on the
construction site and any concerns or issues. The discussion and any decisions
made at the meeting must be documented.[2]
Diaries, Logs, and Daily Field Reports
Diaries, logs, and daily field reports keep track of the daily activities on a job site
each day.

Diaries: Each member of the project team is expected to keep a project

diary. The diary contains summaries of the day's events in the member's
own words. They are used to keep track of any daily work activity,
conversations, observations, or any other relevant information regarding
the construction activities. Diaries can be referred to when disputes arise
and a diary happens to contain information connected with the
disagreement. Diaries that are handwritten can be used as evidence in
court.
Logs: Logs keep track of the regular activities on the job site such as
phone logs, transmittal logs, delivery logs, and RFI (Request for
Information) logs.

Daily Field Reports: Daily field reports are a more formal way of
recording information on the job site. They contain information that
includes the day's activities, temperature and weather conditions, delivered
equipment or materials, visitors on the site, and equipment used that day.[2]

Resolving Disputes

Mediation: Mediation uses a third party mediator to resolve any disputes.

The mediator helps both disputing parties to come to a mutual agreement.
This process ensures that no attorneys become involved in the dispute and
is less time-consuming.
Minitrial: A minitrial takes more time and money than a mediation. The
minitrial takes place in an informal setting and involves some type of
advisor or attorney that must be paid. The disputing parties may come to
an agreement or the third party advisor may offer their advice. The
agreement is nonbinding and can be broken.
Arbitration: Arbitration is the most costly and time-consuming way to
resolve a dispute. Each party is represented by an attorney while witnesses
and evidence are presented. Once all information is provided on the issue,
the arbitrator makes a ruling which provides the final decision. The
arbitrator provides the final decision on what must be done and it is a
binding agreement between each of the disputing parties.[2]

Terminology
The following terms are commonly used in the industry:

Construction management (CM) refers to form of delivery [8] and (in the UK)
management of the site.
Real estate management (REM) is professional property advice (a
continuous process, as opposed to a process).
o
Corporate real estate management (CREM) is a company-focused
variant.
Management contracting (MC):
o
UK: form of delivery[9]
o
US: CM at risk
Programme management (ProgM) is concerned with management of a
clients portfolio (the programme, in this sense, is equivalent to a clients
brief) or (in the UK) managing time in a project.
Project control (PC) is the tracking and reporting of the progress, time, cost
and quality of a project. This function can be characterized as passive,
whereas construction project management (CPM) is active.
Project leader (PL): The person responsible for achieving the projects
objectives; acts as a manager "in-line".
Project director (PD): The leader of a large project that can be broken down
into sub-projects (e.g. the Channel tunnel) or the head of a PM organization
Owner representative (OR): The representative of the owner; may be
internal or external to the company
Document Control (DC): Key function of a project manager
Build operate transfer (BOT)[clarification needed]

Finance build operate transfer (FBOT) [clarification needed]

Design build operate transfer (DBOT)[clarification needed]
Build own operate (BOO)[clarification needed]
Engineering procurement construction (EPC)[clarification needed]
Private finance initiative (PFI)[clarification needed]
General contract (GC)[clarification needed]
Joint Venture (JV): A collaboration between two or more companies from the
same or different backgrounds and/or fields to complete a common project.
Joint Ventures typically have a lead contractor that deals with most of the
business aspects. The lead will usually have a bigger stake in the
partnership (ie. the lead will have a 65% stake while the second contractor
might have 30% and a third might have 5%).
Guaranteed maximum price (GMP): A contract-specified upper limit to the
project's final price
Multiple prime contracts (MPC)
o
UK: One contractor takes responsibility for the development (package
deal).
o
US: A client may have five or six prime contractors.
o
o

Study and practice

Construction Management education comes in a variety of formats: formal
degree programs (Two-year associate degree; four-year baccalaureate degree,
masters degree, project management, operations management engineer degree,
doctor of philosophy degree, postdoctoral researcher); on-the-job-training; and
continuing education and professional development. Information on degree
programs is available from the American Council for Construction Education
(ACCE) or the Associated Schools of Construction (ASC).
According to the American Council for Construction Education (the academic
accrediting body of construction management educational programs in the U.S.),
the academic field of construction management encompasses a wide range of
topics. These range from general management skills, through management skills
specifically related to construction, to technical knowledge of construction
methods and practices. There are many schools offering Construction
Management programs, including some offering a Masters degree.[10][11]
Required knowledge

Construction and Building

Technology
Public Safety
Customer Service
Human Resources
Mathematics

Skills and abilities

Time Management

Negotiation
Decision Making
Problem Solving

Business model
Skyscrapers under construction in Panama City, Panama
The construction industry typically includes three parties: an owner, a designer
(architect or engineer) and a builder (usually known as a general contractor).
There are traditionally two contracts between these parties as they work together
to plan, design and construct the project. [13] The first contract is the ownerdesigner contract, which involves planning, design and construction
administration. The second contract is the owner-contractor contract, which
involves construction. An indirect third-party relationship exists between the
designer and the contractor, due to these two contracts.
An owner may also contract with a construction project management company as
an advisor, creating a third contract relationship in the project. The construction
manager's role is to provide construction advice to the designer, design advice to
the constructor on the owner's behalf and other advice as necessary.
Design, bid, build contracts
The phrase "design, bid, build" describes the prevailing model of construction
management, in which the general contractor is engaged through a tender
process after designs have been completed by the architect or engineer.
Design-build contracts
Main article: Design-build
Many owners particularly government agencies let out contracts known as
design-build contracts. In this type of contract, the construction team (known as
the design-builder) is responsible for taking the owner's concept and completing
a detailed design before (following the owner's approval of the design)
proceeding with construction. Virtual design and construction technology may be
used by contractors to maintain a tight construction time.
There are three main advantages to a design-build contract. First, the
construction team is motivated to work with the design team to develop a
practical design. The team can find creative ways to reduce construction costs
without reducing the function of the final product. The second major advantage
involves the schedule. Many projects are commissioned within a tight time frame.
Under a traditional contract, construction cannot begin until after the design is
finished and the project has been awarded to a bidder. In a design-build contract
the contractor is established at the outset, and construction activities can
proceed concurrently with the design. The third major advantage is that the
design-build contractor has an incentive to keep the combined design and
construction costs within the owner's budget.

The major problem[14] with design-build contracts is an inherent conflict of

interest. In a standard contract the designer is responsible to the owner to review
the builder's work, ensuring that the products and methods meet specifications
and codes. An independent builder may pick up design flaws which might go
unnoticed (or unmentioned) if the builder is also the designer. The owner may get
a building that is over-designed to increase profits for the design-builder, or a
building built with lesser-grade products to maximize profits. If speed is
important, design and construction contracts can be awarded separately; bidding
takes place on preliminary plans in a not-to-exceed contract instead of a single,
firm design-build contract.
Planning and scheduling
Project-management methodology is as follows:

Work breakdown structure

Project network of activities
o Critical path method (CPM)
o Resource management
o Resource leveling

Architectureengineer
Work inspection
Change orders
Review payments
Materials and samples
Shop drawings
Three-dimensional image
Agency CM
Construction cost management is a fee-based service in which the construction
manager (CM) is responsible exclusively to the owner, acting in the owner's
interests at every stage of the project. The construction manager offers impartial
advice on matters such as:

Optimum use of available funds

Control of the scope of the work
Project scheduling
Optimum use of design and construction firms' skills and talents
Avoidance of delays, changes and disputes
Enhancing project design and construction quality
Optimum flexibility in contracting and procurement
Cash-flow management

Comprehensive management of every stage of the project, beginning with the

original concept and project definition, yields the greatest benefit to owners. As
time progresses beyond the pre-design phase, the CM's ability to effect cost
savings diminishes. The agency CM can represent the owner by helping select the

design and construction teams and managing the design (preventing scope
creep), helping the owner stay within a predetermined budget with value
engineering, cost-benefit analysis and best-value comparisons. The softwareapplication field of construction collaboration technology has been developed to
apply information technology to construction management.
CM at-risk
CM at-risk is a delivery method which entails a commitment by the construction
manager to deliver the project within a Guaranteed Maximum Price (GMP). The
construction manager acts as a consultant to the owner in the development and
design phases (preconstruction services), and as a general contractor during
construction. When a construction manager is bound to a GMP, the fundamental
character of the relationship is changed. In addition to acting in the owner's
interest, the construction manager must control construction costs to stay within
the GMP.
CM at-risk is a global term referring to the business relationship of a construction
contractor, owner and architect (or designer). Typically, a CM at-risk arrangement
eliminates a "low-bid" construction project. A GMP agreement is a typical part of
the CM-and-owner agreement (comparable to a "low-bid" contract), but with
adjustments in responsibility for the CM. The advantage of a CM at-risk
arrangement is budget management. Before a project's design is completed (six
to eighteen months of coordination between designer and owner), the CM is
involved with estimating the cost of constructing a project based on the goals of
the designer and owner (design concept) and the project's scope. In balancing
the costs, schedule, quality and scope of the project, the design may be modified
instead of redesigned; if the owner decides to expand the project, adjustments
can be made before pricing. To manage the budget before design is complete and
construction crews mobilized, the CM conducts site management and purchases
major items to efficiently manage time and cost
UNIT-1 ARBITRATION:

It is one of the oldest methods of settling civil disputes between two or

more persons by reference of the dispute to an independent and impartial
third person, called arbitrator
Instead of litigating the matter in the usual way through the courts, it saves
time and expense

It also avoids unnecessary technicalities and at the same time ensures

Substantial justice within limits of the law

DEFINITION: Arbitration is a domestic forum. It is a forum other than a

Court of law for determination of disputes and differences, after hearing
both the sides, in a judicial manner
ARBITRATOR:

The person who is appointed to determine differences and disputes is

called the arbitrator or arbitral tribunal
The proceedings before him is called arbitration proceedings.The decision is
called an AWARD
ESSENTIALS OF ARBITRATION AGREEMENT

It must be in writing
It must have all the essential elements of valid contract

It must be to refer a dispute, present or future, between the parties to

arbitration

It may be in the form of an arbitration clause in a contract or in the form of

a separate agreement

The reference in a contract to a document containing an arbitration clause

constitutes an arbitration agreement if the contract is in writing and the
reference is such as to make that arbitration clause part of the contract.

ADVANTAGES OF ARBITRATION

Avoidance of publicity for the proceedings are held in private

Simplicity of procedure

Avoidance of delay and uncertainty involved in appeals

Reduction of expenses in most cases

Saving of time

Appointment of a person having the required technical qualification as

arbitrator

Social efficacy, the award of the arbitrator being the decision by the
consent of parties

Candor (frankness) in presenting facts and figures

DISADVANTAGES OF ARBITRATION

The arbitrator may be incompetent

Injustice may result from the informality of the procedure

REFERENCE TO THE ARBITRATORS CONDITIONS FOR THE STAY OF LEGAL

PROCEEDINGS

There must be a valid and a subsisting arbitration agreement capable of

being enforcement
The subject matter must be within the scope of arbitration agreement

The application must be made by a party to the arbitration agreement or by

some person claiming under him

The applicant must make the application at the earliest stage of the
proceedings

The application must be made to the judicial authority before which the
proceedings are pending

The application must be accompanied by the original arbitration agreement

The judicial authority must be satisfied that there is no sufficient reason

why the matter should not be referred.

MATTERS WHICH MAY BE REFERRED ~ WHICH MAY NOT BE REFERRED

Determination of damages in breach of contract

Question of validity of marriage ( maintenance to wife)

Question of law (separation)

Matters of personal or private rights of the parties

Disputes regarding compliment and dignity

Time barred claims

Matrimonial matters (divorce)

Testamentary matters lie (Validity of Will)

Insolvency matters

Matters relating to public charities and charitable trusts

Lunacy proceedings

Matters relating to the guardianship of a minor

Matters of criminal natures

Execution proceedings

Arbitral Tribunal

Arbitral Tribunal is a constitutional body consists of a single arbitrator or by

a joint arbitrators
Either party can choose one each or more, if one is chosen, then there will
be a third arbitrator whose is selected jointly and shall be called as the
presiding arbitrator

Qualification of arbitrator/s
1. He must be an expert in the area of the dispute
2. Must be honest and impartial
3. Should be free from any legal litigations
4. He must be thorough in the legal codes, byelaws, norms, standards,
regulations etc.
5. Must adhere COA norms for all process.
Arbitrators powers and duties

They can set the deposit fee on par with the norms
They can fix the time, venue of hearing

They can seek the assistance of the court if necessary

They shall issue interim orders if necessary

They shall also issue interim award if necessary.

Umpire
The person appointed by the tribunal to come to a final decision in case if
differences of opinion arises between the tribunal
A person chosen to decide a question in a controversy that has been submitted
to Arbitration but has not been resolved because the arbitrators cannot reach
agreement, or one who has been chosen to be a permanent arbitrator for the
duration of a collective bargaining agreement.
Arbitration is the submission of a dispute to an unbiased third person designated
by the parties to the controversy, who agree in advance to comply with the
decision. Arbitration is quicker, less expensive, and more informal than a court
proceeding. Commercial arbitration and labor arbitration are commonplace in the
United States. Persons who hear these types of dispute resolution cases are
called arbitrators and umpires. Umpires are used either to break an impasse in
arbitration or to serve as specialized, long-term decision makers.
An arbitrator is a person selected by the parties to hear the dispute. An arbitrator
must be mutually agreed upon by the parties and may be named, for example, in
a labor-management Collective Bargaining agreement or may be chosen after the
dispute has arisen. In labor arbitration a single arbitrator may hear a case, but
frequently a three-member arbitration panel hears the dispute. The three
members consist of an arbitrator selected by management, another chosen by
labor, and a chairperson selected either by the parties or by the two arbitrators
appointed by the parties. The arbitrators selected by the parties act like
advocates, but the chairperson is expected to be neutral.

If the three-person panel cannot agree on a decision, the arbitrators may name
an umpire to decide the controversy. The umpire acts independently and is
vested with the sole authority to decide the issues that have been presented.
An umpire is also sometimes used in labormanagement grievance proceedings. In
this situation a single, permanent umpire is appointed to resolve disputes for the
term of the collective bargaining agreement. The umpire becomes familiar with
the economic, financial, and dayto-day working conditions of an industry and
may rely on precedents developed by previous umpires. This form of umpire
system began in the anthracite coal mining industry in the early 1900s and has
been used in other industries, including clothing manufacturing and newspaper
printing.

Te n d e r S c r u t i n y a n d A w a r d o f B i d s / O ff e r s P r o c e s s i n g
and Evaluation of Bids
For Government & International Competitive Bidding the tenders are decided in
line with Government Guidelines including that of CVC issued from time to
time. The following points are kept in view during scrutiny/evaluation of
tender off ers that are duly opened .The prices of biddersduring
prequalification stage whoseoffer is technically suitable andacceptable is
onlyopened. The fi nancial bid of other tenderers whose technical bids are
notqualified, are not openedunder any circumstances and theEnvelopes
containing their financial bids arekept unopened in record.
P ro c e d u re i n S c r u t i n y o f Ra t e s
If on checks there are differences between the rates given by the contractor in
words and figures or in amount worked out by him, the following procedure is
followed
:a ) W h e n t h e re i s a d i ff e re n c e b e t w e e n the rates in figures and in words,
therates which correspond to the amountsworked out by the contractor, is taken
ascorrect.
b) When the amount of an item is notworked out by the contractor or it doesnot
correspond with therates writteneither in figures or in words, then therate
quoted by the contractor in words istaken as correct.c) When the rate quoted by
theContractor in figures and in wordstallies but the amount is not worked
outcorrectly, the rates quoted by thecontractor is taken as correct and not
theamount.In the case of percentage Rate Tender,the contractors are required to
quotetheir rates both in amount as well as inthe percentage below/above the
ratesentered in the Schedule. In such cases inthe event of arithmetical
errorcommitted in working out the amount by the contractor, the
tenderedpercentage and not the amount should be taken into account.
Absurdly High Rate ( A H R ) / A b s u r d l y L o w R a t e
( A L R ) / Fre a k Ra t e I t e m s :
AHR/ALR Items
The item rates quoted which vary morethan 25%as compared to the
estimatedrates are identified & discussedwith theL-1 Bidder, and if the bidder
does notagree to reconsider his offer ofAHR/ALR Items following
negotiations,these items will be kept under seriouswatch during execution of

work. Duringexecution, the Engineer as well as theNodal Officer may allow AHR
5%quantities stipulated in the agreement.
Fr e a k R a t e I t e m s
Rates quoted which are more than100%higher/lower than the estimatedrate, are
considered as freak rate itemsand are identified. The Engineer as wellas the
Nodal officer keepsa strict watchover these AHR/ ALR/ freak rate itemsduring
execution of the work forpossible deletion/decrease of thequantity of such items.
Te c h n i c a l E v a l u a t i o n
Efforts are made to bring all the offers atpar technically after conductingtechnical
discussions / or seekingclarification/documents etc., throughcorrespondence
before opening of theprice bids. For this purpose, the pre-qualified parties are
asked to withdrawthe deviations and submit revised offersif any, after agreeing to
the NITconditions. In cases where parties stillinsist for technical deviations vis-avisNIT conditions which are not in linewith the tender documents, offers
areevaluated on the basis of loading factorsindicated, if any in the
tenderdocuments.No loading on technical deviations ispermissible in case the
loading criteriaon such technical deviation are notspecified in the tender
document. Therecommendations of TOC, if any, shallthen be approved by
competentauthority after scrutiny and vetting byTechnical Advisory Committee
(TAC),which then be intimated accordingly toall the bidders duly giving them
anopportunity to submit revised price bids, if any, to promote transparency
Tender Evaluation and Recommendation Report
The purpose of this section is to alert Health Services/Agencies and Consultants
involved in managing projects of the information to be included in the tender
evaluation and recommendation report in order to comply with process, probity
and audit requirements.
In accordance with industry practice and government audit requirements, the
department will carry out random independent audits of the tendering process
used in awarding contracts. The administrative time of all parties involved in the
audit process can be minimised if relevant information is included in the tender
evaluation and recommendation report.
The Code requirements need to be adequately covered. Requirements may be
included in the body of the report, as attachments or as summaries as applicable.
Typical Inclusions for Tender Evaluation and Recommendation Report
Tender / Scope

Brief description of the scope of works being tendered

Proposed procurement method
Nominate the Principal to the contract

Pre Tender Estimate

Cost Plan D estimate of building works tendered

Date estimate prepared.

Type of Tender

Expression of interest and short list including the names of shortlisted

tenderers or
Prequalified tender or
Public tender.

Tender Documents

Conditions of Tender or indicate standard conditions used

Contract Conditions and Special Conditions or indicate standard forms used
Refer to documentation - working drawings, specification and BofQ where
applicable (to be made available in full if required)
Tender Pro formas and schedules which are required tender inclusions
(these may include web based references)
Bill of Quantities if included.

Key Selection Criteria

Pre-determined Key Selection Criteria (KSC)

Identification of Mandatory KSC's
Weightings of KSC's

Tender Advertisement

Copy of advertisement and date of tender advertisement

Name of newspapers used for advertisement
Tender period including closing date, time and place
Nominated contact for queries.

Addenda (and Clarifications) Issued During Tender Period

Refer to Log of all queries received, together with responses (to be made
available in full if required)
Copy of each written addendum issued
Copy of advice to tenderers if the issue of addenda caused an extension to
the tender period
Confirmation that all tenderers received all addenda and incorporated the
addenda into their tender

Tender Opening

Formal/documented procedure adopted with details of where, when and

names of persons responsible for opening and recording tenders received
Shortlisted tenderers. Tenderers who have collected tender documents and
did not submit a tender are to be noted. It is good practice to contact nontenderers and obtain an explanation for a tender not being submitted.

Tender Validity Period

In weeks or days with expiry calendar date to be included. This is usually 90

days.

Note: To prevent tenders from lapsing, it shall be the responsibility of the Principal
Consultant to seek, on the Agency's behalf, confirmation from tenderers for an
extension of the validity period if a tender is not awarded before the expiry of the
original validity period.
Tenders Received

Copy of the Tender Opening Summary Form.

Tender Evaluation
An analysis of tenders against each predetermined key criteria including:

Method of delivery
Cost
Time
Quality
Environmental Sustainability, such as materials, resources, water and waste
management
Team
OH&S and IR Compliance with Government requirements in Ministerial
Directions (mandatory)
VIPP compliance, being a Certified VIPP Plan or VIPP Statement (depending
on tendered value)
Ranking of tenders - often summarised in the form of a matrix
Subcontractor - approval of nominations
Reference checks.

Ranking of tenders - often summarised in the form of a matrix

Subcontractor - approval of nominations
Reference checks.

Financial Capacity
Where a Health Service/Agency or department is to enter into a contract they
should confirm that their financial and legal advisers are satisfied with the
financial and legal status of the recommended tenderer.
For a contract perceived to be high risk, complex or large ($5M or more) an
independent assessment of financial viability is to be undertaken; and the level of
surety (generally in the form of unconditional bank undertakings) is to be set
accordingly.

Project Risks
Several studies of disputes in the building and construction industry have
revealed that a major cause of disputation (including litigation) results from the
poor management of risks. Disputes are costly, often cause project delays, and
should be avoided wherever possible through the pro-active management of risk.
Major causes of disputes arise from:

Poor quality documentation (ambiguous, inconsistent or incomplete

drawings and specification are typical matters of concern) and it is
important that the consultant attest as to the suitability of the documents
as fit for purpose.
Another area of concern arises from client initiated changes and the
disruption to all parties can create extensive problems for the contractor
and consultants and it is important that the client carefully consider the
suitability before agreeing to the design and sign off accordingly.

Project risks exist at all stages of a capital works project and the PCG or
governance group should identify and incorporate key risks into a Project Risk
Register. The Register should identify risks and have strategies for risk mitigation;
it should be kept up to date throughout the project.
The SP shall re-visit the Risk Register to confirm that identified risks associated
with tendering have been effectively managed; with specific attention to risks
identified for the tendering process.
The experience and qualifications of the proposed contractor's management,
supervision and other staff is an important risk factor. Other risks include issues
of probity, transparency, timeliness, security, schedule of rates and charges etc.
Risks are usually managed through inclusion in the key selection criteria and may
affect the required level of contract security to be incorporated into the contract.
Contractor related risks should be ascertained at the EOI stage and at the RFT for
a two stage tender process, and should be considered in the tender evaluation.
Project Timeframe
Timeliness is important to the Principal and occupiers of facilities. The experience
of the department and project consultants should be used to develop a realistic
project timeframe covering all stages from feasibility study to the end of occupied
commissioning. As a project progresses, the project timeframe is revised and this
permits more detailed planning by the occupiers for example regarding fit-out,
commissioning and occupation.
At the tender stage, a tentative program will be sought from tenderers, showing
how they intend to deliver the project within the contract period and the level of
allowable delays called float' in their program. The contract program should
include allowances for expected delays caused by seasonal weather conditions
and unexpected site conditions.

The contract conditions cover how delay and slippage are managed during the
contract stage, but where time is critical to the Agency, Health Service or
department negotiations at the tender evaluation stage may include the
tenderers capacity to accelerate activities to make up for lost time.

Value for Money

The tender evaluation should consider value for money as a key evaluation
criterion. This will include factors such as life cycle costs, alternative
details/finishes offered, etc. Operations and maintenance costs can be more
significant where the facility needs to be decanted or service delivery is
interrupted while replacements or upgrades occur and the inclusion of a cheaper
initial tender price may need to be critically appraised when considering the
wider implications for the agency. This may result in the lowest tender not being
recommended for acceptance.
Non-Conforming Tenders
All non-conforming tenderers are to be noted with reasons provided, for example:

Late tender
Exclusions from tender price
Failure to provide certified VIPP plan
Qualification on materials/equipment which are different from those
specified
Qualification on performance criteria of mechanical or electrical equipment
Qualification on time for completion which is different to that specified
Qualification on price submitted, e.g. Rise and fall basis instead of fixed
price
Non-compliance with statutory documents.

Tender Recommendation Principles

Award should be based on the best value conforming tender in conjunction

with project specifics and general tender selection criteria
If a non lowest tender has been selected the reasons supporting the
selection should be reported
Confirm all non-conforming tenders are rejected
Confirm all unsuccessful tenderers will be formally informed after award of
a contract to the successful tenderer.

Attachments to be Included
The following attachments are to be included as an appendix to the tender
recommendation report:

Summary of shortlisting process or minutes of pre-qualification meeting

with the Contract Supplier Register

Copy of tender advertisement

Copy of the tender opening summary form and details of any tenders
rejected because they were not received on time
Statement from probity advisor, where appropriate.
PERT:
PERT is a method to analyze the involved tasks in completing a given
project, especially the time needed to complete each task, and identifying
the minimum time needed to complete the total project
A PERT event: is a point that marks the start or completion of one or more
tasks. It consumes no time, and uses no resources. It marks the completion
of one or more tasks, and is not reached until all of the activities leading
to that event have been completed. A predecessor event: an event (or
events) that immediately precedes some other event without any other
events intervening. It may be the consequence of more than one activity. A
successor event: an event (or events) that immediately follows some other
event without any other events intervening. It may be the consequence of
more than one activity. A PERT activity: is the actual performance of a task.
It consumes time, it requires resources (such as labour, materials, space,
machinery), and it can be understood as representing the time, effort, and
resources required to move from one event to another. A PERT activity
cannot be completed until the event preceding it has occurred. Optimistic
time (O): the minimum possible time required to accomplish a task,
assuming everything proceeds better than is normally expected Pessimistic
time (P): the maximum possible time required to accomplish a task,
assuming everything goes wrong (but excluding major catastrophes). Most
likely time (M): the best estimate of the time required to accomplish a task,
assuming everything proceeds as normal