Lecture 1 PDF

Lecture 1 Jawad Butt M.Eng. Civil (UOT), PMP [email protected] 1  Lecture Objectives Review Of The Course Outline. Review Of The Course Policies. Project Stakeholders Nature Of Relationships Between The Project Stakeholders Methods Of Proj...

Lecture 1 Jawad Butt M.Eng. Civil (UOT), PMP [email protected] 1  Lecture Objectives Review Of The Course Outline. Review Of The Course Policies. Project Stakeholders Nature Of Relationships Between The Project Stakeholders Methods Of Project Procurement & Delivery The Role And Responsibilities Of The Site Superintendent In A Project 2 Review of the Course Outline 3 Review of the Course Policies 4  Project Stakeholders The main stakeholders in any construction project include: – Project Owner Main responsibility is to make payments – Project Consultant Team Main responsibility is to design the project – Architect – Structural Engineer – Mechanical Engineer – Electrical Engineer – General / Prime Contractor Main responsibility is to build the project Site Superintendent represents the contractor on the site – Trades / Sub-contractors Hired by the General / Prime contractor to carry out their respective specialty job on the project. Each trade has a foreman on site who handles the trade crew and work. Relationship between the trade foremen, trade crew and the site superintendent. 5  Project Stakeholders These stakeholders are bound to each other by means of legal contracts. 6 Nature of Relationships Between The Project Stakeholders  Nature of Relationships Between The Project Stakeholders The nature of relationship (i.e. the type of contract) between the project stakeholders is determined by how the project risk is to be allocated between the various stakeholders: Some key risks in construction projects include: – Issues related to faulty design – Unexpected changes in scope and design due to site requirements – Unanticipated site conditions – Deficient work by the contractor or the trades – Construction delays due to external strikes or material shortage – Construction delays due to contractor not being able to meet project milestones due to contractor’s internal reasons – Disputes between the Owner and the Contractor – Disputes between the Contractor and the Trades – Financial Risk 8 Nature of Relationships Between The Project Stakeholders – Design-Bid-Build method (stipulated price contract / CCDC2 contract) – Construction Management method – Construction Manager At Risk (CMAR) method – Design-Build / EPC (Engineering-Procurement- Construction) method – Public Private Partnerships (Design –Build- Operate- Maintain) – Integrated Project Design (IPD) method Design-Bid-Build Contract (Stipulated Price Contract / CCDC 2 ) 10 Design-Bid-Build Method 11  Design-Bid-Build Method This method of project delivery is mostly used for stipulated price / lump sum or fixed price contracts. In this method, the project owner hires the consultant team to carry out the project design and to coordinate the necessary approvals and permits process with the regulatory authorities Once the project design has been completed and all approvals and permits have been obtained, the consultant prepares the bid documents and bids are invited from the various prime contractors (aka as the general contractors) on the basis of the project drawings and specifications, for a competitive bidding process. 12  Design-Bid-Build Method Bids for the job are received from many prime contractors and one prime contractor gets the job on the basis of his successful bid. This prime contractor signs a contract with the Project Owner and becomes responsible for building the project within schedule and budget and as per required quality. In this type of contract, the contractor has a very clear idea of the scope of work from the very start. 13  Design-Bid-Build Method When the construction starts, the Project Owner typically hires a contract administrator whose job it is to ensure that the Prime Contractor is doing the work the work as per the contract documents and to vet the contractor’s payment claims. The contract administrator is the representative of the project owner on the site. The project owner is responsible to make regular progress payments for all work done for the project, during and up to project completion. 14 Construction Management Method Of Project Delivery 15 Construction Management Method Of Project Delivery 16  Construction Management Method In this method, the project owner hires the consultant team to carry out the project design and at the same time also hires a construction manager who, based on his past experience of similar projects, advises the consultant team regarding the project design requirements and also coordinates the approvals and permits process with the regulatory authorities. 17  Construction Management Method Once the project design has been completed and all approvals and permits have been obtained, the construction manager prepares the bid documents and the bids are invited from the various trades for a competitive bidding process. 18  Construction Management Method Bids for the job are received from various trades. The construction manager reviews all these bids and negotiates the best deal for the Project owner to select various trades that will complete the job. Each of the selected trades signs a contract directly with the Project Owner and becomes responsible for doing its respective part of the work in the project, within schedule, budget and as per required quality. 19  Construction Management Method When the construction starts, the construction manager acts as a contract administrator with the task of ensuring that each trade is doing the work the work as per the contract documents, to vet the trade’s payment claims and deal with other site issues on behalf of the owner. All trades submit their work invoices to the project owner directly and, on the recommendation of the construction manager, the project owner is responsible to make regular progress payments for all work done for the project, during and up to project completion. 20 Construction Manager at Risk (CMAR) Contract 21 Construction Manager At Risk (CMAR) Method 22 Construction Manager At Risk (CMAR) Method In this method, the project owner hires the consultant team to carry out the project design and at the same time also hires a construction manager who, based on his past experience of similar projects, advises the consultant team regarding the project design and also coordinates the approvals and permits process with the regulatory authorities. 23 Construction Manager At Risk (CMAR) Method Once the project design has been completed and all approvals and permits have been obtained, the construction manager prepares the bid documents and the bids are invited from the various trades for a competitive bidding process. 24 Construction Manager At Risk (CMAR) Method Bids for the job are received from various trades. The construction manager reviews all these bids and negotiates with the trades to get the best deal and to select the various trades to complete the job. Each of the selected trades signs a contract with directly with the Construction Manager who then also becomes the prime contractor responsible for completing the project, within schedule, budget and as per required quality. 25 Construction Manager At Risk (CMAR) Method All trades submit their work invoices to the construction manager, who then consolidates these invoices and submits them to the project owner for payment. This method is suitable when there is a shortage of time and the project schedule needs to compressed by Fast Tracking. 26 Construction Manager at Risk (CMAR) Contract – Fast tracking means compressing the project schedule in such a way that activities that would have been performed sequentially using the original schedule are performed in parallel, e.g. design and construction activities. In other words, fast tracking a project means that the design and construction activities are worked on simultaneously instead of waiting for each activity to be completed separately before the other can begin. 27  Design-Build Method (aka Engineering-Procurement- Construction (EPC) Method) 28  Design-Build Method (aka Engineering- Procurement-Construction (EPC) Method) 29  Design-Build Method (aka Engineering- Procurement-Construction (EPC) Method) In this method, the owner identifies the scope of the project and invites bids from various design build companies. One design build company is selected based on its bid who signs a contract with the owner and thus becomes responsible to deliver the project within budget, time and as per required quality. 30  Design-Build Method (aka Engineering- Procurement-Construction (EPC) Method) This design build company hires the consultant team to carry out the project design (as per owner’s requirements) and also coordinates the approvals and permits process with the regulatory authorities. Once the project design has been completed and all approvals and permits have been obtained, the design build company prepares the bid documents and the bids are invited from the various trades (or prime contractors) for a competitive bidding process. 31  Design-Build Method (aka Engineering- Procurement-Construction (EPC) Method) Bids for the job are received and evaluated by the design build company and the best trades / prime contractor is selected. The selected trades / prime contractors sign a contract with the design build company who then becomes responsible for completing the project, within schedule, budget and as per required quality. 32  Design-Build Method (aka Engineering- Procurement-Construction (EPC) Method) When the construction starts, the design build company is responsible for ensuring that the work is being done as per the contract documents, to vet all payment claims and to deal with all site issues. The project owner is responsible to make regular progress payments for all work done for the project, during and up to project completion. 33  Design-Build Method (aka Engineering- Procurement-Construction (EPC) Method) The design-build method is used to delivery turnkey solution to the project owner and is understandably more expensive for the project owner as compared to other methods of project delivery. 34 Integrated Project Delivery (IPD) Method 35 Integrated Project Delivery (IPD) Method In the traditional methods of project delivery such as design bid build, design build and construction management, there are two-way contractual agreements between: – the owner and the prime contractor and – between the owner and the designer The roles, responsibilities, risks, and rewards for each project participant are separate and distinct. 36 Integrated Project Delivery (IPD) Method Each participant focuses almost exclusively on their own role on the project and if a problem arises, each participant will move quickly to distance themselves from liability in an attempt to protect their own financial interests. 37  Integrated Project Delivery (IPD) Method Integrated Project Delivery (IPD) is a project delivery method that aligns the business interests of the IPD Team, consisting of the Project Owner, Design Team and the Contractor, through a single, multi- party contractual arrangement. It is the essence of IPD that members of the IPD Team work collaboratively to achieve Project objectives in an environment of mutual trust, respect, and transparent and cooperative communication. 38  Integrated Project Delivery (IPD) Method The pricing structure is cost plus with a target price, with the profits of the design and construction team members are identified and allocated but materialize upon achievement of mutually agreed Project objectives. The IPD team provides waivers of liability among the parties (subject to a few necessary exceptions). As a result the the change orders are almost eliminated. 39  Integrated Project Delivery (IPD) Method A critical step in the IPD process is the establishment of a Project Management Team, or PMT, which includes representatives appointed by each party to the IPD Contract. The PMT is established at the outset of the relationship and provides management-level guidance for planning, design, and construction to meet the Project’s objectives. 40  Integrated Project Delivery (IPD) Method In addition to managing the project throughout its progress, the PMT also develops benchmarks, metrics, and standards for progress evaluation. The PMT makes decisions that affect all aspects of the project, including cost and schedule, and provides all parties with enhanced control over risk. PMT decisions are made by unanimous agreement, and may only be modified by action or instruction from the Senior Management Team, or SMT. 41  Integrated Project Delivery (IPD) Method If the project is completed under budget, the entire IPD team shares in the project savings. Similarly, if the project meets or exceeds certain milestones defined in the contract documents, the entire IPD team may earn additional compensation. As the parties’ financial interests are aligned, they are all incentivized to keep the aggregate project cost as low as possible and to make the project successful. 42 Public Private Partnerships (a.k.a. PPP or P3) or EPCF (Engineering Procurement Construction & Financing) 43  Public Private Partnerships (a.k.a. PPP or P3) or EPCF (Engineering Procurement Construction & Financing) This project delivery method is used when the projects are very large in scope and the project owner (which is the government in such cases) is not capable of making upfront payments for the work due to scarcity of resources.  Public Private Partnerships (a.k.a. PPP or P3) or EPCF (Engineering Procurement Construction & Financing) Hence, for bigger projects, the trend has moved towards Public Private Partnerships also referred to as PPP or P3, in which: – the government defines the scope of work for the project and a – private sector consortium delivers the project on a turnkey basis, including design, construction and financing for the project.  Public Private Partnerships (a.k.a. PPP or P3) or EPCF (Engineering Procurement Construction & Financing) In most types of P3 projects, the payback to the private private sector consortium is ensured by means of toll to be paid by the end users of the project. – Example of P3 project is Highway 407. Even though the major funding is provided by the private party, the government agency is considered as the final approval authority. The Role And Responsibilities Of The Site Superintendent In A Project 47 Job Responsibilities Of The Site Superintendent The site superintendent is the main person representing the contractor on the site and is primarily responsible to ensure that the project is completed successfully on the site. 48  Job Responsibilities Of The Site Superintendent The site superintendent is the BOSS on the site and is one of the first persons to reach the site daily and one of the last persons to leave the site daily. All the trades are answerable to the site superintendent who is also their main point of contact for the project. The site superintendent has to keep a very close liaison with the the contract administrator who is the owner’s representative on the site. 49  Job Responsibilities Of The Site Superintendent Success/ Failure of any project (and the site superintendent) is gauged by whether the project was completed: On time At or under the project budget Safely With the required quality 50 Job Responsibilities Of The Site Superintendent In order to be successful, a site superintendent , broadly speaking, has to successfully and simultaneously perform three types of job responsibilities: a) Technical b) Managerial c) Leadership 51  Job Responsibilities Of The Site Superintendent (Reference MAGDALENA GRADECKA & KASIA ZIELINSKI) THE MOST PIVOTAL PERSON, AND LEADER ON THE JOB SITE. PERFORMANCE WILL DETERMINE IF THE COMPANY MAKES A PROFIT OR LOSS. GUIDES A PROJECT TO BE ON TIME, COMPETENCE, EFFORT, AND UNDER BUDGET, SAFE, AND OF ATTITUDE TOWARDS WORK GOOD QUALITY. DETERMINES THE SUCCESS OR FAILURE OF THE JOB AND COMPANY. HAS TECHNICAL, MANAGERIAL, AND LEADERSHIP RESPONSIBILITIES a) Technical Competency Requirements for a Site Superintendent 53  Technical Competency Requirements for a Site Superintendent Some necessary technical skills for a successful Site Superintendent are: – Ability to read and comprehend the project reports, blueprint drawings, specifications as well as the contract clauses. – Control of job methods to achieve best results in terms of cost, time and quality. – Knowledge of trade work details, instructing tradesmen & providing technical direction to all trades through trades’ foremen. 54 Technical Competency Requirements for a Site Superintendent – Planning & scheduling – Economical use of labor and equipment. – Review of shop drawings, procedures and submissions of material samples. – Quantity measurements for payment purposes – Handling progress payments and change orders – Etc. 55 b) Managerial Responsibilities Of A Site Superintendent 56  Managerial Responsibilities Of A Site Superintendent Everything that goes on within the premises of the site boundary (including site access points) falls under the managerial responsibility of the site superintendent. It includes but is not limited to: – Site safety Safety policies and regulations must be clearly stated at the start of the job. Encourage participation of all trades in achieving a safe job. Rules governing the use of equipment should be made clear at the very start. Setting up traffic and delivery mechanism for the site. – Site cleanliness – Allocating space to each trade for office and storage space. 57 Managerial Responsibilities Of A Site Superintendent Dispute resolution with trades Resolving inter-trade conflicts Hiring of labor Union negotiations Public relations. Job meetings. 58  Managerial Responsibilities Of A Site Superintendent – Document Management: Job Log Document Log Minutes Of Meetings Communication Record Submittal Log Time Cards Record Or As Built Drawings Field Authorizations Supplemental Instructions Change Orders Progress Review Reports Progress Photographs Quality Control Reports And Quality Assurance Preparation of as-built drawings 59  Managerial Responsibilities Of A Site Superintendent – Monitoring the project schedule to ensure all milestones are met. – Managing the schedule relationships between different trades (FS etc.) especially when the work of one trade is dependent on the other. – Coordination Between Trades: Unless the requirements of various specialized trades and sub-trades are properly coordinated on site, the the planning and scheduling will be valueless. – Cost control – Monitoring the project costs on a regular basis and identifying / minimizing cost over runs. 60 Managerial Responsibilities Of A Site Superintendent – Quality management Establishing quality control standards on site and ensuring they are met by all trades. The standard of workmanship expected on the job must be made clear to the trades at the very start, and having established a policy, the superintendent will insist at all times that it is followed. A superintendent with foresight (with an eye for detail) who is able to see the process before it happens, is best suited for quality control. Once a pattern of quality is set forth, constant monitoring is a necessity. 61 Managerial Responsibilities Of A Site Superintendent – Liaison With Project Stakeholders: Establishing and maintaining communication with all the project stakeholders for timely and effective transfer/receipt of information: Owner Project Manager Project Consultants Monitoring & Regulatory Authorities Trades and Suppliers 62 c) Leadership Responsibilities Of A Site Superintendent 63 Leadership Responsibilities Of Site Superintendents 64 65  References https://www.hinckleyallen.com/wp- content/uploads/2011/12/Ciotti-Pasakarnis- CIM-Nov-2011.pdf 66