Financial F1_ The financial implications of decisions made by civil engineers F-lto2 Compare the adv and dis-adv of Fi-1to5 Financial Implication of decisions as Designers and Contractors F1-6to7 Financial Implication of decisions as Designers and Contractors F1-8to12 Financial Implication of decisions as Designers and Contractors F2_ Whole life asset management F3_ Budget management F3-1to4 Procedure to be followed in submitting and adjudicating a CLAIM. F3-5 106 Procedure to be followed in submitting and adjudicating a | CLAIM. F3-7109 Procedure to be followed in submitting and adjudicating a CLAIM. F3-10 to 12 Budget Overruns & Late Completion, Disc. reasons & solutions. F3-13 to 14 Budget Overruns & Late Completion. Disc. reasons & solutions, | F3-15 to 21 Budget Overruns & Late Completion. Disc. reasons & solutions. F3-22 to 23 Budget Overruns & Late Completion. Disc. reasons & measures to avoid F3-24 to 25 how to manage cost estimation & subquent budgetary control. F4_Cost control FS_Private finance F6_The financing of infrastructure development F6-1 104 Advantages & Disadvantages of Financing infra. dev. fr Public & Private source F6-5 to 6 Advantages & Disadvantages of Financing infra. dev. fr Public & Private source F7_Operational and maintenance cost analysis ¥F8_Estimating/tendering F9_Payment & Compensation Management M1_Re-thinking Construction, M2_Quality, Health Safety & Welfare and environmental management systems M3_ Effective delegationM3-1 to 19 Delegation of responsibility to the lowest possible level is often quoted as essential for efficient management, Discuss how effect delegation can be achieved in an engineering organization, M3 20 to 24 In the ICE Conditions. Of Contract (both 5" and 6" Edition) there is scope under Clause 2 for the Engineer to delegate many of his powers to the Engineer’s Representative, What are the benefits of doing this, and in what circumstances should an Engineer vary the level of delegation during the construction period. Ma_Team leadership MA4-1t08 Many Civil Engineers would call themselves managers but few become leaders of their organization. Discuss the qualities which make a manager into a leader. M5_ Communication during the design and construction of civil engineering works. M5-1 to 30 Discuss the importance of effective communication during the design and construction of civil engineering works, and the methods by which they may be achieved. M6_Training/development of staff ‘M7_Partnering/ Alliances M8_Business improvement M9_ Marketing MI(_ Site/Project management Societal S1_ Equality and Diversity in the UK in relation to the construction industry $2_ Sustainable development 82-1103 Infrastructure sustains civilized life, yet the public perceives as destroying the natural environment, Discuss the conflict between the aspirations of the public for a civilized life and the maintenance of the natural environment, S2-4108 How can public attitudes be changed to support the move towards sustainable development 'S3_ Influencing local, national and international political decisions. $3-1 03 Discuss circumstance under which the infrastructure of the locality in which a project is to be built might be permitted to influence (Engineering Decision) 83-4 to 5 Discuss circumstance under which the infrastructure of the locality in which a project is to be built might be permittedinfluence (Engineering Decision) $3-6 108 Discuss circumstance under which the infrastructure of the locality in which a project is to be built might be permitted to influence (Engineering Decision) |_ The influence of recent international events on civil engineering ‘The role of the Institution S6_ Overseas Aid $7__Institution’s Rules for Professional Conduct S7-1 102 Discuss whether Institution’s Rule for Professional Conduct are | still relevant to today’s trading conditions S8_Health & Safety management S8-1 to 3 Dise the responsibility for safety on construction sites of the Employer, his professional representatives, the contractor's stafT and the workforce. $8-4108 Disc the responsibility for safety on construction sites of the Employer, his professional representatives, the contractor’s staff and the workforce. $8-9 to 11 Give an outline of the principal regulations that govem good health and safety practice on construction sites. How should site be managed to ensure that these regulations are complied with? What conditions influence a well-managed site in health and safety terms? $8-12 to 15 Disc the role of a civil engineer in construction site safety. $8-16 to 19 How should designers of Civil Engineering Works take account of Safety during construction and the ultimate use of the wroks, $8-20 to 21 Industrial relations affect activities on a construction site. How | they influence flexibility in working practices, | incentive schemes, quality of works and safety? $8-22 0 24 Describe the duties under current Health & Safety at Work Act that may, in various circumstances, apply to the Client, Professional adviser, the main contractor, sub-contractors, employees and the self-employed. ‘$8-25 to 28 Safety record of the construction industry as poor as it frequently suggested? What steps do you consider should be taken by the industry to improve the present situation?‘$9_ Aesthetical and environmental issues in civil engineering S10_ Health, safety and welfare during the design, construction, maintenance, operation and subsequent removal of the works S10-1to7 How should designers of Civil Engineering Works take account of health, safety and welfare during construction, maintenance operation and subsequent removal of the works? $10-8 to 11 Give an outline of the principal regulations that govern good health and safety practice on construction sites. How should site be managed to ensure that these regulations are complied with? What conditions influence a well-managed site in health and safety terms? (Same $8-9-11) $10-12 to 15, Discuss the merits of an integrated quality, health and safety, and environmental management system to meet the needs of the customer. 810-16 to 18 Discuss the merits of an integrated quality, health and safety, and environmental management system to meet the needs of the customer. 10-19 to 23 Identify & Discuss the factors which should be assessed to ensure a well-managed site in terms of health, safety and welfare? (Similar to $10-8-11) S11_ Environmental impact of construction projects Sll-1to4 How should be environmental impacts of public works projects be assessed and how can this be taken into account in the evaluation of the merits of such projects. How should be environmental impacts of public works projects be assessed and how can this be taken into account in the evaluation of the merits of such projects. S11-10 to 13 & S11-14 to 16 & so on pages How should be environmental impacts of public works projects be assessed and how can this be taken into account in the evaluation of the merits of such projects. To what extent should be evaluation include public consultation procedures? S11-17 to 21 Engineers have a responsibility to ensure that designs are aesthetically pleasing and environmentally acceptable as well asfunctional. Discuss S11-22 to 41 Discuss the importance of environmental to a civil engineering S11-41 to 63 How should the environmental impact of public works projects be assessed and how can this be taken into account in the evaluation of the merits of such project S11-41 to 63, How should the environmental impact of public works projects be assessed and how can this be taken into account in the evaluation of the merits of such project 11-64 to 68 Civil engineers create the infrastructure which sustains civilize life, yet the public often perceives construction projects as destroying the natural environment. Discuss the conflict between the aspirations of the public for a civilized life and the maintenance of the natural. S11-69 to 73, Discuss the environmental consideration in design and construction of a waterworks project. $12_ Status of the civil engineer in society S12-1 to 14 Role of civil engineers in the community $12-15to20 Responsible experience is necessary for engineers to become Chartered outline the basic expertise required by a newly chartered civil engineer $12-21 to 22 __Good functional design satisfies the eye of the beholder. Discuss $12-23 to 28 _Discuss the important of site experience to a design engineer $12-29 to 36 Infrastructure has become a by-word in debates on employment and capital investment. Explain the importance of the infrastructure and the role of civil engineers in its creation and | maintenance. $12-37 to 48 Discuss the merits and dis-adv of allowing contractors to submit alternative proposals involving modifications to the Engineer's design of works. What procedures would you recommend for the submission and assessment such alternatives, $12-49to 60 The way in which engineers handle their data is fo central importance to their efficiency and effectiveness. ‘Commercial C1_ Methods of funding and procuring of construction projects Cl-1 to 26 How would. you as a promoting client select and directprofessional adviser and contractors. C1-27 to 28 Write brief note on the role of responsi consultants and contractors in the civil er within the public or private sector. C2_Forms of contract for civil engineering works 2-1 104 How is management contracting used in the civil engineering industry? What are the adv and drawbacks of these arrangements? 2-5 106 Risks is inherent in most civil engineering works. Discuss the ways in which such risks can affect the Employer and the Contractor, and how they can influence the form of contract and the contract price. 2-7 108 Compare management contracting with other more traditional systems. Discuss what benefits and dis-adv management contracting may have for the client. €2-91021 Discuss the adv and dis-adv of a design, build, finance and ‘operate contract. 2-22 to 31 Describe the need for a Form of Contract for civil engineering works. Comment an=on a type of contract you have used and its value to the signatories. C3_Joint venture contracts 3-102 Many large construction projects nowadays are undertaken by JV. Describe the adv and dis-ady C4_ Risk analysis C5_Target cost contracts C6_Partnering/ Alliances C7_Supply chain management Technical / Academic Ti_Research and Development Ti-1 (all) Most industry requires research and development (R&D) to improve end product and maximum profitability, What improvements would you recommended for R&D in the construction industry ‘T2_ Knowledge transfer “T3_ The professional development of civil engineers T3-1 (all) Continuing Professional Development (CPD) is the systematic maintenance, improvement and broadening of knowledge andskill, and the development of personal qualities. Discuss the benefits to be derived, with examples of CPD. ‘T4_ Performance specifications T5_National and international regulations on the control of pollution, ‘T6_ The role of an engineer as a specialist or a generalist T6-1 to 12 Identify the area in which disagreement between a resident Engineer’s staff and the contractor's staff may develop? How can good relations be achieved between these parties? Illustrate where possible from your own experience. 76-13 to 41 duties and responsibility of a resident engineer T6-42 to 45 Discuss the role of engineer in a major civil engineering contract, T7_ Quality Management T7-1 to 6 compare QA and QC TT-7 0 22 compare QA and QC. What are the benefits of quality assurance to the client, the designer and the contractor? ‘TS_ Infrastructure maintenance Type of project Pl waterworks Pi-1to4 Describe the planning and design of a fresh water supply system P2 road and drainage P2-1 108 Design construction and maintenance of rigid pavement P2-9 to 13 Discuss the planning and design consideration for a road and drainage project P2-14 to 16 Describe the problems during construction in road widening project in urban area with particular reference to your own experience P3 Bridge P3-1 to 3 \ Describe and critically evaluate the suitability of the current 3 design and construction techniques used for post-tensioned bridge = in HK P3-4 to 8 The planning, design and construction of bridges in HK P3-9 to 12 Design and construction of pre-stressed concrete bridge P3-13 to 18 Design consideration of a highway bridge project P4 Disable design construction P41 t04 Civil engineers are required by law to provide for disabled peoplein design and construction, Discuss the background and implications PS Geotechnical LPS-1 to 3 Discuss the design considerations for steel H-pile foundation [P54 106 Discuss the design and construction of retaining walls P5-7t08 Construction of retaining walls P5-9 to 10 Classification of Retaining walls P5-11 to 15 Discuss the matters considered in carrying out the design of a piled foundation with particular emphasis on the choice of pile type 6 temporary works P6-1 to3 What are the responsibilities of the engineer in connection with temporary works designed and constructed by the contractor? How should the engineer discharge these responsibilities? P6-4t021 What are the responsibilities of the engineer in connection with | temporary works designed and constructed by the contractor? How should the engineer discharge these responsibilities? P7 Sewerage P7-1 to3 Describe the design of a storm water drainage and sewage system P7-4to7 Discuss the design of a sewer in urban area P7-8to 11 Design of storm water drains in urban area P7-12 to 15 Discuss the considerations for planning a drainage channel as a mitigation measure against floodingea Q2/95 An understanding of the financial implication of decisions made by civil engineers as designers and contractors is crucial. Discuss. INTRODUCTION Civil engineers need to make a lot of decisions throughout his daily works irrespective he is in the position as.a designer or in the position as a contractor. In decision making process, civil engineers have to make his professional judgement and apply his technical knowledge. Different ways to tackle a problem would have different financial implications and would have different effects to the promoter or the contractor. ‘The objective of most promoters is to have a work done which fulfill al their requirements with good workmanship but using minimum cost. If financial implications are not appreciated by engineers, financial contro] will lose and incur additional monetary burden for the promoter. AS DESIGNERS The Government is required to carry out capital work projects from time to time to satisfy the development need of the society. A resource allocation system is being run to ensure that projects to be carried out is indeed having the real need and the limited resources are allocated in the best way. If civil engineers do not exercise their professional knowledge in designing cost effective works and control the expenditure during implementation of the works, it will result that resource spent cannot be fully utilized. The society thus would not receive the optimum benefit and other social welfare will be deprived. Civil engineers should make a cots effective design. In some cases, though the budget is met, the work may have a high maintenance cost. Hence designers have to understand the mutual relationship or conflicts between construction cost and ‘maintenance cost. A good design should have a balance between both of them. Understanding of the cost factor in different construction methods or in using different kind of material is essential for civil engineers. ‘The standard set may sometimes based on personal judgement. Hence experience backup is essential. Sometime, it'is hard to judge whether a design is really cost effective or not. Use a highway project as an example. ‘The aim of the project is to link up Town A and TownB which are separated by mountains. Option 1 is to construct a 5 km road which alignment are lying on nature hill slopes. The estimated cost is 50 million. Option 2 is similar to Option 1 but the route is reduced to 4 km by cutting and filling on the hill slope but the construction cost is increased to 100 million. Moreover the maintenance cost is higher in Option 2. If the promoter is considering the maximum economical benefit to the country, obviously Option 2 is flavoured. However if the promoter is just looking for an emergence route of which using rate is not high, Option 1 is flavoured. ‘This illustrates that civil engineers should fully understand the promoter’s requirements before finalizing the decision. But the fact is that sometimes the objective of projects are not well defined and civil engineers have to made his own judgement in selecting a suitable option. Hence civil engineers must understand well what implications exist.AS CONTRACTORS The contractor's main objective in executing a contract is making profit for his shareholders. Within this parameter the good contractor will try to provide the works to a high standard of workmanship and on due time. This enhances his reputation and is obviously a matter of sound policy. ‘As contractors are looking for profit and goodwill, every step taken and every decision made by civil engineers in a contractor firm are related to the profit of the contractor. Since optimization of profit is the main objective, civil engineers are sensitive to the financial implication of all the events involved in construction activities. Both good technical experience and good managerial skill are essential for civil engineers to achieve a high profit target. A site agent directs the labourers and foremen on site, makes arrangement of the daily works and plans for the construction programme. He has to wisely arrange and make use of the resource available in the contractor firm such that the work can be done with the minimum expenditure. If a site agent do not notice the financial implication of the decision he made, whatever the works can be finished in time the profit would be reduced. Sub-contracting is a tool to spread the risk to others by reducing the profit margin. However the main contractor has to examine the ability of the sub-contractors to ensure that the sub-contractors have adequate experience and resource to finish the works on time because the final contractual obligation is rest with the main contractor. If the works are delayed, the goodwill of the main contractor will be damaged. Modem large scale construction projects are usually take the form of design and build contract. Contractors have to carry out a design which is suitable for their experience and resource, otherwise the tender would not be competitive. Hence civil engineers of contractors should also possess the talent and qualities as designers and understand the cost elements in design. This is essential because a completive design is needed for a successful tender and for the profit of the contractor. Therefore, it is clear that every decision made by contractors are profit related and an understanding of those implications is crucial. TRAINING Fi-3Training should be provided for the building up of such knowledge for civil engineers. ‘The training should be started in the undergraduate stage so that university students can have the basic knowledge foundation. After they joined the profession as a graduate engineer, on-the-job training can brush up their ind in the sense of financial matter, construction methods to be used, cost estimation and preparing construction programme. Upon the chartered status is achieved, continuing updated of the knowledge is also required.‘CONCLUSION Different decision would have different financial implication in the construction industry. Understanding of such implications is crucial for both designers and contractors. Irrespective what role civil engineers play, they should be sensitive to financial matters and shall have the ability to make an appropriate decision. Training in financial ‘matters can be provided to engineers for the build of such knowledge and continuous education is required to update the mind. (1032 words)Institution of Civil Engineers ‘An understanding of the financial impli and contractors is crucial. Discuss. tions of decisions made by civil engineers as designers 1.0 Introduction Civil engincers nced to make a lot of decisions throughout his daily works irespective he is in the position as a designer or in the position as a contractor. In decision making process, civil engineers have to ‘make his professional judgement and apply his technical knowledge. Different ways to tackle a problem would have different financial implications and would have different effects to the promoter or the contractor. The objective of most promoters is to have a work done with good workmanship but using the ‘minimum cost. If financial implications are not appreciated by engineers, financial control will lose and incur additional monetary burden for the promoter. 20 As designers ‘The Govemment is required to carry out capital work projects from time to time to satisfy the development need of the society. A resource allocation system is being ran to ensure that projects to be carried ‘out is indeed having the real need and the limited resources are allocated in the best way. If civil engineers do not exercise their professional knowledge in designing cost effective works and control the expenditure during implementation of the works, it will result that resource spent cannot be fully utilized. The socicty thus would not receive the optimum benefit and other social welfare will be deprived, Civil engineers should make a cost effective design. In some cases, though the budget is met, the work. may have a high maintenance cost. Hence designers have to understand the mutual relationship or conflicts between construction cost and maintenance cost, A good design should have a balance between both of them, ‘Understanding of the cost factor in doing different kind of works or in using different kind of material is a must for civil engineers. The standard sot may sometimes based on personal judgement. Hence experience backup are essential. Sometime, itis hard to judge whether a design is rally cost effective or not. Use a highway projec as an example. The aim of the project isto link up Town A and Town B which are separated by mountains. ‘Option 1 is to construct a 5 km road which alignment are ying on natural hill slopes. The estimated cost is 50 milion. Option 2is similar to Option 1 but che route is reduced to 4 km by cuting and filling on the hillslopes but thc construction cos is increased to 100 million, Moreover the maintenance cost is higher i option 2, If the promoter is considering the maximum economical benefit to the county, obviously option 2 is flavoured. However if the promoter is just looking for an emergence route of which using rate is not high, ‘option 1 is flavoured. This ilistrates that civil engineers should fully understand what the promoter is looking for before finalizing the decision. But the fact is that sometimes the objective of projects are not well defined ‘and civil engineers have to made his own judgement in selecting a suitable option. Hence civil engineers must understand well what implications exist. 3.0 Ascontractors ‘The contractor's object in executing a contract is profit for his sharcholders. Within this parameter the good contractor will endeavour to provide the works to ahigh standard of workmanship and in due time, This enhances his reputation and is obviously a matter of sound policy. ‘As contractors are looking for profit and goodwill. Every step taken and every decision made by civil ‘engineers in a contractor firm are related to the profit of the contracter. Since optimization of profit isthe main objective, civil engineers are sensitive to the financial implication ofall the events involved in construction activities. Both good technical experience and good managerial skill are essential for civil engineers to achieve ‘high profit target D199;ce04. doe =1of2-Institution of Civil Engineers A site agent directs the labourers and foremen on site, makes arrangement of the dally works and plans for the works programme. He has to wisely arrange and make use of the resource available in the ‘contractor firm such that the work ean be done with the minimum expenditure. Ia site agent is not understand the financial implication of the decisions he made, whatever the works can be finished in time the profit would not be high. ‘Sub-contractng isa tool to spread the risk to others by reducing the profit margin. However the main contractor has to examine the ability of the sub-contractors to make sure the sub-contractors have adequate experience and resource to finish the works in time. This is important because the final contractual obligation is rest with the main contractor and if the contract is delayed, the goodwill of the contractor will be damaged, ‘Modern large scale construction projects are usually take the form of design and build contract, ‘Contractors have to carry out a design, which is suitable for their experience and resource, otherwise the tender ‘would not be competitive. Hence civil engineers of contractors should also possess the talent and qualities as designers and understand the cost elements in design. This is essential because a competitive design is a must for a successful tender and for the profit ofthe contractor. ‘Therefore, itis clear that every decision made by contractors are profit related and an understanding of those implications is crucial. 40 Training ‘Training should be provided for the building up of such knowledge for civil engineers. The training should be started in the undergraduate stage so that university students can have the basic knowledge foundation, After they joined the profession as a graduate engineer, on-the-job training can brush up their mind in the sense of financial matter. Upon the chartered status is achieved, continuing updated of the knowledge is also required. 5.0 Conclusion Different decision would have different financial implication in the construction industry. ‘Understanding of such implications is crucial for both designers and contractors. Iinespective what role civil engincers play, they should be sensitive to financial matters and shall have the ability to make an appropriate decision, Training in financial matters ean be provided to engineers for the build of such knowledge and continyous education is required to update the mind. T9Sice4.doe T20F2-The Financial Implications of Decisions made by Civil Engineers ‘An understanding of the financial implications of decisions made by civil engineers as designers and contractors is crucial. Discuss Essay Key Plan i. Introduction 2. Civil Engineer as Designer 21 22 23 24 Feasibility Study ~ preliminary investigation of technical and economic viabilities of alternatives = promoter’s decision to invest depends on the estimation of the capital ‘and operation cost . success in choosing a cost-effective scheme will not only reduce the project cost but also form a basis for the subsequent economic design Detailed Design = method of analysis: ¥ strike a balance among the required computing time, accuracy and material provision - design option assessment ¥ — capital cost of construction Y — operation and maintenance costs Project Procurement = selection of form of contract based on characteristics of the works % — degree of uncertainty preferred risk allocation pattem - expenditure plan prepare a cost estimate and a fund allocation plan, Y sufficient accuracy can minimize the possible capital lock-up and unexpected increase in expenditure Selection of Contractor technical competence - financial strength claim history - to ensure timely completion, otherwise late revenue - to ensure good quality, otherwise increase in future maintenance cost 3. Civil Engineer as Contractor 3.1 Tender Pricing = determine the pricing strategy which can optimize the cash flow pattern of the company - reasonable pricing to get an acceptable profit margin without losing the chance of winning the tender 01 September 2012 1 ap Kewl‘The Financial Implications of Decisions made by Civil Engineers, = contingency to cover unexpected risks - estimate the resources such as materials, plant and labour = assess output rate of each resource. Cost built up due to mobilization of additional resources 3.2 Works Programming - planning of working sequence and deployment of available resources based on construction time, available construction plant, material & labour and current available cash = avoid high fluctuations in the required resources to maintain a steady cash flow = sub-contracting may be used to spread the risks but profit margin reduces 3.3. Works Method = temporary works / falsework design: fully utilized any materials available in the company - safe and effective design save time and cost - improve process 3.4 Dealing with unforeseen conditions = notify the Engineer readily to prevent possible idling time or double- handling / abortive works - claims for EOT or cost reimbursement - reasonable claim. Any argument between the Contractor and the Engineer on the rate or time will be time consuming and increase administration costs 4. Conclusion ‘Suggested Essay A) Introduction Financial control is one of the key issues in a civil engineering project. cycle. Notwithstanding that many unknowns cannot be ascertained until construction commences, civil engineers are required, based on their engineering judgment, to make decisions in order to put a project forward. These decisions often imply expenditure which may be substantial. They should therefore fully appreciate in the decision making process the corresponding financial implications in each stage of a project cycle. B) Civil Engineer as Designer The client or promoter always aims at using the minimum cost to achieve the best quality in the shortest time. A civil engineer as a designer should be able to give professional advice during the feasibility study, detailed design, project procurement and construction. A wrong decision may result in the client suffering from unforeseen financial burden, 01 September 2012 2‘The Financial Implications of Decisions made by Civil Engineers Feasibility Study Civil engineers are often commissioned by public or private promoters to carry out feasibility studies of various civil engineering projects. Typical examples are Railway Development Study, New Town Development Study and Strategic Sewage Disposal Scheme. A feasibility study is a preliminary investigation of technical and economic viabilities of alternatives. Estimation of the capital, operation and maintenance cost is usually required by the client so that the client is able to decide whether he should finance the project. For example, in solving traffic congestion problem at a crossroad junction, the engineer will firstly identify the root causes of the congestion problem. Then he should consider different alternatives for solving the problem, such as signal-controlled junction, grade-separated bridges, tunnel or redesign of the traffic routes. A wise choice of a cost-effective scheme will not only reduce the project cost but also form a basis for the subsequent economic design, Detailed Design Stage In the design stage, the engineer should choose an effective and efficient method of analysis. Sophisticated methods of analysis provide a more accurate result with saving in material in design but at an expense of computing time. On the other hand, a simplified method saves much computing time but more material is required to ensure that the design is on the safe side. ‘Therefore, the method selected should strike a balance among the required computing time, accuracy and material provision so that the design costs and construction costs can be minimized. ‘The designer should also ensure that his design will give the product within budget. Different options of general site layout, structural forms and construction materials should be carefully assessed, The option selected should be within the budget fixed by the client, Such budget includes not only the capital cost of construction but also the operation and maintenance costs. Design should be accurate, clear and buildable to avoid the attraction of claims in the construction stage. Overlooking the operation and maintenance costs will result in an unexpected financial burden on the client in the future. Project Procurement Before the invitation to tender, the designer should choose a suitable type of construction contract like lump-sum fixed price, re-measurement, schedule of rates or cost plus. The selection should be based on the scope of the works, degree of uncertainty and the preferred risk allocation pattem. For example, it is preferable to adopt a re-measurement type of contract in foundation works rather than Iump-sum fixed price contract in view of the uncertainties of geotechnical and underground conditions. A wrong choice of contract type will render the client suffer from extra risks and financial losses. In addition, the designer should produce a cost estimate and a fund allocation plan of the project for the better financial arrangement of the client. Sufficient accuracy of these can minimize the possible capital lock-up and unexpected increase in expenditure during the construction stage. ‘Tender Stage 01 September 2012 3 Ken Lui‘The Financial Implications of Decisions made by Civil Engineers The designer is often asked to assess different tenders offered by various contractors. The contractor who offers the lowest bid may not be the most appropriate one to carry out the project either because of his technical incompetence in carrying out the works or his unhealthy financial situations. ‘The claim history of the contractor is also crucial in tender assessment. Some contractors may enter very competitive bids with a hope to cover the loss of profit margin by claims for extra time or cost. This will increase the financial burden on the client, which may not be expected until the construction commences. As timely completion and satisfactory functioning of a project depend largely on the ability of the contractor, the designer should exercise his judgement in recommending the client to select a competent contractor. ©) Civil Engincer_as Contractor ‘A civil engineer as a contractor has a different standpoint from that as a designer. A civil engineer in a contractor often makes his every effort to strive for the maximum profit without sacrificing the company's goodwill by delivering unsatisfactory product. A civil engineer as a contractor should be careful when making decisions in tender pricing, works programming, works method and dealing with unforeseen conditions. ‘Tender Pricing, Appropriate pricing of tender will enable the contractor to win the contract while guaranteeing the profit margin. The civil engineer should be able to understand the scope of works and identify the risks so that sufficient contingency is allowed in the rate of the items. In addition, he has to determine the pricing strategy which can optimize the cash flow patter. of the company. For example, he may enter higher prices for the preliminary items so as to get an carly retum of money. Estimation of resources, such as materials, plant and labour, is also required. The output rate of cach resource should be assessed as additional construction cost will incur as a result of mobilization of additional resources to expedite the works progress. Works Programming During construction, the engineer is required to prepare a works programme with consideration of the construction time, the available construction plant, materials and labour and the current cash available, Careful works programming is vital to avoid clashing of works in different trades and high fluctuations in the required resources. The former is significant to the smooth progress of works and the latter is vital to maintaining a steady cash flow. Sometimes, specialist sub-contractors may be employed to carry out a particular trade of works or to expedite the progress. In determining whether. subcontractors should be employed, the engineer should strike a balance between the spreading of risks of the main contractor and the loss of profit margin. Works Method In the course of determining works method, a civil engineer should have a good understanding of the available plants and labour in his company. Works method and temporary works design, which can fully utilize the existing available materials, plants and labour in the company, can minimize the reduction of profit margin as a result of additional 01 September 2012 4 Ken Luiequipment inventory or employing sub-contractor. Dealing with unforeseen conditions It is not uncommon that the actual site conditions are different from those described in the tender documents. Civil engineer as a contractor should always have a good understanding of the scope of works in the contract. Whenever the aforementioned situation ‘oceurs, he should notify the Engineer promptly. In this way, the Engineer can review the situation and give instructions quickly to the contractor so as to reduce the possible idling time or double-handling of works. In case the progress of works is delayed by some particular reasons as stipulated in the conditions of contract, the contractor, in accordance with the relevant clauses in the Contract, is entitled to submit claims for extension of time or cost reimbursement. The engineer in the contractor should take every reasonable account in respect of the actual loss of cost and time in amounting the claim as abusive use of claims will not only lengthen the time for claim assessment (thus delay the retum of claimed money in case of monetary claims) but also destroy the goodwill between the contractor and the client, In addition, any argument between the contractor and the Engineer on the rate or time will induce extra administration costs, Conclusion Different decisions will have different financial implications in each stage of a civil engineering project cycle. Appreciation of these implications is crucial for both designers and contractors. respective of the role civil engineers play, they should have the ability to make appropriate decisions and be sensitive to the financial implications of these decisions. 01 September 2012 5‘The Financial Implications of Decisions made by Civil Engineers END OF TEXT 01 September 2012 6 Ken Luiue 21 FS Describe the procedure to be followed in submitting and adjudicating a claim? Risk and uncertainties are intrinsic in civil engineering works most civil engineering contracts at present days work towards a more reasonable sharing of risks between the Contractor and the Employer necessitates the Engineer make variations to suit actual site conditions the contractor, on the other hand, entitled to submit claim a claim is the contractor's demand for reimbursement of extra time and cost incurred as a result of circumstances which the contractor considered should be ‘bome by the Employer circumstances arising from materialisation of risks which he could not have been expected to foresee and allow for in his tender risks which are entirely out of his control, results of the Employers fault 2 components: principle which is the rationale of the claim ‘quantification which is the contractor's entitlement under the claim Under G.C.C. (1990 edition), claim: 2 categories, namely claim for extension of time and claim for additional payment. The GCC has set forth the procedures for submitting and adjudicating on a claim, Notice of Claim i) id ip) Notice of claim can be simply a statement showing the contractor’ intention to claim and identify in general terms the works to which itis related. Notice must be sent in writing to the Engineer if the contractor intends to make a claim, In general the contractor must give notice ‘as soon as is reasonably possible after the happening of the events giving rise to the claim’, However, there are usually time limit for notification of certain type of claims. allow matter to be investigated and settled as early as possible to avoid dispute, aim for. ion of ti i) iil) under HKGCC, when the Contractor intends to claim for an extension of time under Clause 50, he should give notice in writing to the Engineer within 42 days or as soon as practicable after the cause of delay. give the cause and probable extent of the delay. keep contemporary records which are to be used to support his claims,22 3.0 iti) if required by the Engineer for the purpose of determining whether or to what extent the Contractor may be entitled to an EOT, the Contractor shall submit to the Engineer full and details particulars of the cause and extent of the delay to the progress of Works in writing. Claim for additional payment i) iii) Submit i) ‘when the Contractor claim for higher rates, associated with variations ordered or substantially change in quantities under Clause 59(4) and 61(2), he should submit his notice of claim within 28 days after having been notified of the rates proposed by the Engineer. For all other claims for additional payment pursuant to any clauses of C. of C., the Contractor shall within 28 days of it becoming apparent that the event will Bive rise to a possible claim serve notice in writing on the Engineer of his intention to claim and the contractual provision upon which the claim is based, As soon as the contractor is aware of a possible claim and without any instruction from the Engineer, the contractor must keep contemporary records that are likely to be used to support his claim upon the happening of such events. ‘These may be records of labour, material, plant and any special events, The Engineer can require the Contractor to keep particular records once he has received notice of a claim, but this does not alter the contractor's obligation to keep his own records. as soon as is reasonable after giving notice, the contractor shall send to the Engineer a first interim account giving full and detailed particulars. thereafter, at such intervals as the Engineer may require, the Contractor shall send to the Engineer further up-to-date accounts giving the accumulated total of the claim and any further full and detailed particulars in relation. the detailed particulars the detailed particulars must be presented and submitted in a proper manner to facilitate prompt assessment and settlement of the claim by the Engineer. The burden of proof is with the Contractor and a clear submission would facilitate communications among parties ‘The Engineer to assess the claims using information available to him. clear and well documented submissions is essential for a proper assessment of the claim. Firstly, to describe the events giving rise to the claims and state the contractual reasons for the claim, identify the principle in which the claim is founded by reference to the clause of C. of C. This would provide necessary background for assessing the claim. aor41 vy) vii) Secondly, include relevant information for establishing the principle of the claim. Contemporary records of the events, preferably agreed by both parties are the essential basis of the claims. eg. correspondence, site instructions, site records, minutes, conversation, specification etc. ‘the Contractor's original and current programme in relation to the use of resource should be included to illustrate the effects of the aforesaid events. supplemented by information demonstrating the effects of instructions and variations referred to in the claim. all these would build up the claim and support the contractual reasons mentioned in the submission. Lastly, has to submit a detailed calculation of his entitlement to assist the Engineer in deciding the amount of award after the principle of the claim has been fonnulated. Furthermore, if upon request by the Engineer, he has a duty to further elaborate his reasons and demonstrate the case. Adjudication the Engineer has to adjudicate the claim in a competent manner upon receipt of the notice of claim, the Engineer should register the claim with the scope clearly defined to facilitate future communications. gather all the information related to the claim, from site records. get a general view and estimate the consequence of the claim. if the cause of the claim is still on-going, the Engineer should, if possible, eliminate the cause in order to minimize the claim. Claim for Extension of Time i ii) iii) require the Contractor to submit full and detailed particulars for assessment if necessary. should consider all the circumstances known to him at the time, including the effect of any omission of work or substantial decrease in the quantity of any item. of work, and make an assessment of the extension of time. bound to notify the Contractor in writing whenever he grants an extension. also notify the Contractor in writing if the contractor is not entitled to an extension. In deciding case for an EOT, the Engineer should consider whether the Contractor has in fact been held up by delay within the context of Clause 50 of GCC and whether he is fairly entitled to an extension. take into account the state of readiness of the Contractor to act had the matter42 43 that is subject of the claim not risen. Any EOT granted are to demonstrate the effects of the matter on the critical path. Claim for additional payment ili) iv) vii) viii) ix) After receiving notice of claim, without necessarily admitting the Engineer's liability, the Engineer can require the Contractor to keep and agree with the ER any additional contemporary records as are reasonable and material to the claim. These records should be agreed by both parties and are only for record purpose. The Engineer may inspect all records as are necessary for a proper consideration of the claim. sort out those relevant information and compare them with his own records. After receiving first interim account, first investigate the grounds that the claim is based on and decide on the acceptability of the principle of the claim and notify the Contractor with reasons. if unable to make a decision using the information in hand, he can ask the contractor to further explain the case. the situations giving rise to the claim are not those contractual risk or contractual responsibilities for which the contractor should have allowed when he prepares his tender. after accepting the principle of the claim, the Engineer has to examine the details of the contractor's submission. After going through the adjudication procedures, the Engineer should notify the Contractor the amounts in terms of money or time to compensate the contractor for any loss. The Engineer must ensure that his adjudication on the claim is fair to the Client and the Contractor. if the contractor fail to prepare a comprehensive submission, the Engineer has to adjudicate using information available to him. ‘The Engineer's decision is final and binding. if consensus cannot be reached, the process of mediation and arbitration may be a channel for settling disputes. Conclusion i) Claims are inevitable adjudication by the Engineer is the agreed means of settling disputes. claims must be well documented and adjudication must be carried out promptly in the prescribed manner. 4 ayoProcedure which the Contractor and the Engineer should follow in submitting and adjudicating on a claim under the General Conditions of Contract, Introduction Risks and uncertainties are inherent in all engineering contracts. This necessitates the Engineer to make variations to suit the actual condition of works. The Contractor, on the other hand, is entitled to submit claims. A claim, in civil engineering, is simply a demand from the Contractor for extra payment which the Contractor considers should be paid by the Employer, or a demand for extension of time for the completion of Works as a result of unforeseen delay. ‘The General Conditions of Contract for Civil Engineering Works (GCC) is one of the widely adopted Conditions of Contract in Hong Kong's construction industry. It contains may clauses and sub-clauses under which the Contractor can submit a claim and ask for reimbursement of money or extension of time for completion. It also describes the procedures which the Contractor and the Engineer should follow in submitting and adjudicating on a claim. Claim for Extension of Time ‘The procedures for dealing with a claim for extension of time (EOT) are given in Clause 50 ‘of GCC. Under this Clause, if the Contractor intends to seek for extension, he should submit to the Engineer his claim within 42 days or as soon as reasonably possible after the delay leading to the claim has occurred. This time limitation imposed on the Contractor is intended to allow for the matter to be investigated as early as possible so as to avoid any unnecessary dispute later. In submitting the claim, the Contractor must show why an extension should be granted by referring to the relevant sub-clauses in the GCC. When the Engineer receives such notice, he should consider all the circumstances known to him related to the claim. He may also, under Clause 50(3) of GCC, request the Contractor to submit full and detailed particulars of the cause and extent of the delay to the progress of the Works. From this information, he should decide whether the claim is valid under the contractual terms. For example, in dealing with a BOT claim due to inclement weather, the Engineer must consider the timing, duration and severity of the “inclement weather conditions'; the changes in volume of work ‘output; changes in resources employed on the site; detail of items of work delayed and whether this is critical in the works programme; the readiness of the Contractor to work had weather conditions been favourable and ; any measures taken by the Contractor to minimise the effects of inclement weather. If the Engineer finds that an EOT for completion of works should be granted to the Contractor, he should make and interim assessment and extend the completion time for the works. ‘Then he should notify the Contractor of his decision in writing according to Clause 50(2) of GCC. If the Engineer considers a claim to be invalid, the Contractor should also be notified. When the due date or extended date for completion arrives, the Engineer should as soon as possible make an assessment on the extension of time again based on his information together with any claims. Then he should inform the Employer and the Contractor so that in case of no extension being justified, the Employer may consider the deduction of liquidated damages form the payinent to the Contractor.Finally, upon the issue of the Certificate of Completion of the Works or any section of Works, the Engineer should review all the circumstances known to him and determine and certify 10 the Contractor the final EOT. It should be noted that during this final assessment, the Engineer cannot deduct any EOT previously granted to the Contractor. However, the Employer may ask for deduction to those previously granted time extension through mediation or arbitration under Clause 86 of GCC. Claim for Extra Payment For claims involving extra payment, the procedure is described in Clause 64 of GCC. If the Contractor intends to claim a higher rate than one notified to him by the Engineer pursuant to Clause 59(4)(b) of Clause 61(2), he shall within 28 days of such notification give notice in writing of his intention to claim. For claims related to other event, the Contractor shall within 28 days of it becoming apparent that the event will give rise to a possible claim serve notice in writing on the Engineer of his intention to claim and the contractual provisions upon which the claim is based. The Engineer may not consider any claims received by him after the expiry of a period of 180 days calculated from the certified date of completion for the Works. ‘Upon submitting of the notice of claim, the Contractor should keep all contemporary records related to the claim. Then, he should send to the Engineer a first interim account giving all and detailed particulars of the circumstances giving rise to the claim, the rate or sum claimed and the manner in which such rate or sum is calculated. Thereafter, at intervals required by the Engineer, he should send to the Engineer further up-to-date accounts giving the accumulated total of the claim and any further full and detailed particulars in relation thereto. ‘The Engineer should analyze the claim based on his records and the particulars submitted by the Contractor. He may require the Contractor to keep and agree with the Engineer's Representative any additional contemporary records as are reasonable and may in the opinion of the Engineer be material to the claim. If the Engineer considers a claim to be valid, he should certify to the Contractor in the interim Payment such amount he considers due to the Contractor. In order to facilitate the Engineer's assessment, the Contractor must submit sufficient particulars to the Engineer for him to assess the amount, If the particulars are insufficient, then the Contractor will only be paid part of the claim that can be assessed by the Engineer. Finally, if the Contractor disagrees to the Engineer's assessment, he can seek for mediation or arbitration under Clause 86 of GCC, ‘Conclusion In submitting and adjudicating on a claim, Clause 50 and 64 of the GCC should be followed. ‘The Contractor should always give notice of his intention to claim in the first instance and keep all records for his own interest. The Engineer, in assessing a claim, should behave as an impartial judge and make assessment based on all circumstances known to him and assess without bias. He should check whether the claim is valid with reference to the relevant contractual clauses and the available contemporary records. Finally, any disagreement which cannot be settled between the Engineer and the Contractor can be referred to mediation or arbitration.Q6/9SDescribe the procedures to be followed by a contractor when he submits a claim, and by the engineer in his adjudication, INTRODUCTION Civil engineering projects are usually of large scale, complicated in nature and thus risks and uncertainties are nearly inevitable. In order to have a reasonable risk sharing system between the Employer and the Contractor, the contract usually entitle the Contractor the right to claim and authorise the engineer to adjudicate on such claims. ‘The contract also set out procedures for the Employer, Contractor and the Engineer to follow in submitting and adjudicating claims to ensure the claims can be settled in an efficient and fair manner. Basically, claims can be classified into two categories: namely claims for extension of time and claims for additional payment. Depending on the nature of the claim, the procedures to be followed in submitting and adjudicating on such claims differ. CLAIMS FOR EXTENSION OF TIME FOR COMPLETION The Contractor shall give notice in writing to the Engineer of the cause and probable extent of the delay within a specified period of the cause of any delay to the progress of the work being apparent. Within this period, the Contractor should deliver all the evidence relevant to his claims the Engineer to facilitate the adjudicating of claim at the time. When submitting a claim, it would be advantageous to the Contractor if he can show clearly that he has actually been held up by delay which entitled him to an extension. If the Contractor fails to do so, the Engineer shall consider such extension only to the extent that the Engineer is able on the information available. In the course of adjudication, the Engineer should scrutinised the evidence submitted by the Contractor as well as the records kept by his staff. It is usually necessary to consider the programme and progress of work before and after the delay. The claim may be for activity on the critical path, or the time may be regained at extra cost and expense, or other reasons may apply. In such cases, the claim is invalid or minimum extension could be granted, As the Engineer, he must be fair to both the Employer and the Contractor in the adjudication, Although there is usually no stated time limit within which the Engineer must give his decision in respect of extension of time, the Contractor should informed of the decision within a reasonable time. If the Engineer fails to fulfil his obligation, the Employer's entitlement to invoke liquidated damages could be jeopardised. If the Engincer considers that the Contractor is fairly entitled to an extension of time for the completion of the works or a relevant section of them, he can grant the extension of time to the Contractor even the Contractor have not make any claims. However, the Engineer is not entitled to decrease any extension of time previously granted. Such restriction aims at protecting the Contractor from any loss incurred from a later reduction in an extension of time already granted so that the Contractor can program his work on the faith of the Engineer's original decision. CLAIMS FOR ADDITIONAL PAYMENTClaims for additional payment can be classified into two categories. « The first is aceording to clause 59 which entitles the Contractor to claim for additional payment due to substantial change in quantities, The second is mainly concemed with claim for additional payment in pursuance of clause 63, Under this clause, late information on construction details from the Engineer, late decision of the Engincer, late possession of site, variations, etc. may lead to Contractor's claim. For the claim for additional payment due to substantial change in quantities, the Contractor should give the Engineer notice in writing within 28 days (clause 64). For the claim in pursuance of clause 63, the Contractor shall notice in writing to the Engineer within 28 days when the event will give rise to a possible claim become apparent. However, in both cases, the Contractor does not lose his right to payment even he fails to give notice within 28 days, but he ‘may prejudice his case by preventing the Engineer from investigating the circumstances at the time, In the notice of claim, the Contractor should state the contract provisions upon which the claim is based, He should also provide the records related to the claim which may be required to support his claim, Although these records need not be agreed with the Engineer, the Contractor would be well advised to obtain agreement if at all possible. The Engineer may also require the Contractor to keep contemporary records especially the work involved is continuing, to support his claim. After giving notice, the Contractor should as soon as reasonably possible send to the Engineer a first interim account giving full and detailed particulars of the amount claimed to date and the grounds substantiating the claim. Since the Engineer needs to know the grounds and the cost in assessing the interim payment, the Contractor should submit the details as quickly as, possible. ‘When a claim has been wholly or partially substantiated to the satisfaction of the Engineer, he shall certify the interim payment that includes the amount substantiated. DISAGREEMENT ON THE ENGINEER'S DECISION Disputes are common among different parties in civil engineering works. In order to avoid costly and time-consuming legal proceedings, GCC lays down steps which the Employer and the Contractor should follow when dispute arises. Initially, disputes would usually be referred to and solved by the Engineer. The Engineer should state his decision to both the Employer and the Contractor within 28 days. Usually, the decision of the Engineer shall be final and binding. However, if either party disagrees with the decision of the Engineer, or if the Engineer fails to give a decision as required, both parties can refer the matter to mediation or arbitration. Mediation should follow the current Hong Kong Government Mediation Rules whereas arbitration should be made in accordance to Arbitration Ordinance. Before the arbitrator make a decision, neither party shall be limited in proceedings. If the matter cannot be resolved by mediation and arbitration, either of the parties amy put the case in court. However, it is rare that the dispute cannot be resolved by means of mediation and arbitration as the mediators and arbitrators are usually an independent professional engineers with sound knowledge and experience in civil engineering contract. oad aCONCLUSION GCC lays down procedures which require the Contractor to notify and provide adequate supporting evidence to the Engineer within a stated period when claims become apparent. The Engineer shall adjudicate the claim and make decision within a reasonable time so that the Contractor can recover his time and money lost and enable the Contractor to plan his work accordingly. It also provide channels for the Employer and the Contractor to refer disputes to mediation and arbitration when either party is not satisfied with the Engineer’s decision, Costly and time-consuming legal proceedings are only last resort to disputes, (1153 words)ES Some construction projects suffer from budget overruns and late completion. Discuss the reasons for this and propase solutions. 1.0 INTRODUCTIO! [tis found that some construction projects suffer from budget overuns and late completion. Budget foverruns mean that additional cost is imposed on client and late completion means a delay on project ‘completion. Both are undesirable to client and are usually occur altogether. In general, they are mainly due to change of design, interface problems and inclement weather. In the following paragraphs, I sball discuss these reasons and proposed solutions to them. 2.0 CHANGE OF DESIGN Change of design is not uncommon for civil engineering projects. When this is requirad during ‘contact period, the change may be regarded as a variation to the contract. This may induce additional cost and ‘extension of time and thus causing an delay. Late completion of a project will lead to a further increase in the project cost due to inflation, The causes of design changes can be classified into change of clients idea and poor quality of design. 21 Change of Client's Idea ‘Sometimes the client's idea may change during contract period. This will cause a variation in contract, ‘and therefore lead to budget overmins and late completion. This variation can be due to insufficient ‘communication between the designer and the client To aiidress this problem, a better communication between client and designer is necessary. As a client, his requirements should clearly transmit to the designer and the designer should understand. the requirements. Apart from simply recommending a solution, the designer should introduce other feasible solutions and explain the pros and cons of each solution. The clients view on other solutions have 10 be ‘considered before deciding a solution, 22 Quality of Design ‘The amount of variation depends largely on the quality and scope of information embodied in the contract document. When the resources of design is inadequate or the project has to be designed as "fast- track’, an advanced detailed design is not possible and will affect the quality of design. Sometimes we find that the design docs not suit the actual site condition and requires alternations. It is quite often that design on needed to match with existing features because the site condition changes or there is insufficient information in the original design. Better planning and design ofa project can minimize change of design dusing contract period. ‘When detailed design is not possible before tendering, the designer should consider using a contract form with greater flexibility such as design and build contractor target-cost contract. In cases when the orginal design find not suit current site condition, variation order should be issued as soon as possible so that any abortive works can be minimized. 3.0 INTERFACE PROBLEM 31 Interface with other Civil Contracts Interface problem exists when more thin one contracts are being mun in an area, This is quite ‘common for a developing and congested city like Hong Kong. Problems arise when handing over and taking over of sie for diferent partes is required, Delay in project and claim for cost would be resulted ifthe other partes failed to hand over the site on schedule, 2799;ee02. doe TotsInstitution of Civil Engineers ~ Qs 3 Interface problem is difficult to be avoided but it can be identified in planning stage. Carrying out thorough circulation procedures during planning stage can predict the likely interfacing partes and the works ‘which will be affected. During programming of works, the project engineer can therefore allow flat time for the concemed portions of works so as to reduce the delay ease by third parties. 3.2 Interface with E&M Contracts Many projects involve the supply and installation of electrical and mechanical plant. One kind of contractual arrangement is using direct contact, which the client enters into a separate contract withthe E&M contractor. If both the civil and E&M works proceed to programme, there will be no problem. However, if cither pany departs from the programme or meet difficulties which have impacts on the other, serious contractual problems may arise. In addition, change of civil design may be required to suit EAM requirements. Therefore, claims and delay will also be resulted ‘A good co-ordination between civil and EAM designer can prevent the problem. E&M requirements and civil requirements have to be exchanged during design stage. The designers should note that the teauiemen of various bond of EAM equipent ay differen and ts te design should sit yt ony one particular brand of E&M equipment. Moreover, the programme of installation should be discussed and sufficient float time be allowed as so t avoid contractual problems, 4.0 OBSTRUCTION BY EXIST! IRI In construction of projets in wrban are, obstruction by existing features such as utes and street famiture are usval. It should be noted that ulities diversion work and relocation of soeet furiture are costly and time-consuming. Improper planning of diversion and relocation work can lead to delay in progress. If tuncharied utlities or street furniture are encountered, contractors can claim for extension of time (EOT) and cost. Inthe eases where diversion oF relocation work i no feasible or the works programme eannot afford the delay caused by such work, change of design will be required, This would also overrun the budget and delay the works progress ‘The extent of diversion and relocation can be reduced by good planning of design work. In the preliminary design stage, the designer should identify whether the proposed work will be in confict with ‘existing features in the vicinity of the works areas. Wherever possible, the design should avoid requiring a ‘substantial diversion or relocation work. The exact locaton of those existing utes in critical areas should be located during site investigation by the digging of tial pits. Uncharted utilities should preferably identifica ‘before contract period. When diversion or relocation work is required during contract period, the resident e engincer should arrange for meetings with the district engineers of various utility undertakings so that particular arrangement can be made. Diversion and relocation have to commence as soon as possible in onder 19 minimize the delay. 50. INCLEMENT WEATHER ‘The effect of bad weather will be detrimental on construction activities and leading to delay in completion of project. The construction activities may be affected not only during the period of inclement ‘weather and the effect may extend sonse days after, In most cases, inclement weather will cause an EOT and will lead to an overall increase in the cost ofthe project due to inflation. Inclement weather is unavoidable but some methods can be employed to mitigate its effects. To rinimize the effect of rain, te project engineer can well plan the works programine such thatthe works which {s mos likely to be affected will be planned to be cared out during dry season. Providing adequate temporary drainage system and a better standard of site access road which can resume is duty shory after beavy rainfall tre useful. Besides, temporary support (o trenches or basement excavations should be designed to resist the extra pressure duc to rise up of ground water table. AS for the measures to handle typhoon, all temporary 798;ce2.doe ~20f3- sey al\Institution of Civil Engineers — Qs 3 structures should be tightly tied. Precautions have to be taken when typhoon is still some distance away because it can come quickly. Moreover, tidal work should be avoided during typhoon season. 60 CON IN ‘Most problems causing budget overruns and late completion ean be prevented by detailed planning and design. The quality and scope of information embodied in the contrat document is an importance ingredient to reduce the amount of variation during contract period. Close liaison with other parties daring planning and costract period can mitigate the consequence caused by contract interface and obstruction by existing features. For the effect of inclement weather, it can also be mitigated by well planning and taking precautions. 2799iee02 doe T3of3- aInstitution of Civil Engineers Some construction projects suffer from budget overruns and late completion. Discuss the reasons for this and propose solutions. INTRODUCTION Construction projects suffer from budget overruns and late completion are common in Hong Kong construction industry. Budget overrun of a construction project not only may affect the owner's cash flow plan, but also may affect the quality ofthe Works. When the milestones for completion of project cannot be met, it may cause disturbance to the public and affect the owner's development plan. To keep a project on time and ‘within the approved budget therefore is an important aspect in managing a construction successful. In the following paragraphs, I will ilastrate the underlying reasons for budget overmuns and late completion of some ‘construction projects. Later, some solutions to overcome these shortcomings will be proposed REASONS FOR BUDGET OVERRUN AND LATE COMPLETION LATE COMPLETION Generally, delay completion of a project may due to the owner, the engineer and the contractor. Among them, delay resulted from the contractor usually contribute a significant part ofthe delay. Regarding the programme and progress of the contractor, delay duc to slow performance is critical. Usually, slow performance mainly arise from the attitude of the workers and improper construction methods. ‘Apart from that, lack of construction materials and construction plant may hinder the contractor’ intended progress. In some cases, the contracior cannot submit the contracts particulars in compliance with the specifications and suffer from a further delay. The techniques to handle and master sub-contractors work may affect the progress ofthe other work teams in a single contract. Idling of work may be observed when the eub-contractors’ work are poorly onpanised. In this respect, itis essential to select an experienced contactor. Nowaidays in Hong Kong, strengthen environmental pollution control and safety measures may also impose significant delay to some construction work. Noise, air and water pollution control regulations may impose restriction to the contractor's working conditions. In some particular cases, the contractor should slow down their progress and even suspend their works if they imposed unacceptable disurbance tthe public and the natural surroundings. Apart form the above, some delays to construction projects may arise from safety reasons. Time (o re-establish the site and time to review the construction activities afer « fatal ste accident may delay the progress of work. However, it should be stressed that site safety is the most important consideration in the implementation of a project. Diversion of utilities during the construction stage ofa project may delay the work progress. Without a well-organised utilities diversion programme, excavation works may be repeated and the duration of diversion programme will take much longer than expected. Moreover, in the adverse case, construction works may be suspended due tothe damege of uiltes, Other causes of delay may due to delay possession of site or part ofthe site and the delay of owner. ‘To minimise these delays, the owner should review the project plan and the Engiuecr should perform the design and constructability review. BUDGET OVERRUN Budget overruns of construction project mainly due to contractor's claims and variations of construction contracts. 779vice01 doe ~1ef2-