a project control process in pre-construction phases.pdf

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A project control process inpre-construction phasesFocus on effective methodology

Khaled Al-Reshaid, Nabil Kartam, Narendra Tewariand Haya Al-Bader

Department of Civil Engineering and Kuwait University Construction Program,Kuwait University, Safat, Kuwait

Abstract

Purpose It is a well-known fact that the construction industry always passes through twodistinctive problems during the construction stage: slippages of project-schedules, i.e. time-frame, and

overruns of project-costs, i.e. budget. However, limited literature is available to solve or dilute thesetwo problems before they even occur. It is strongly believed that the bulk of the two mentionedproblems can be mitigated to a great extent, if not eliminated, provided that proper attention is paid tothe pre-construction phases of projects. Normally projects are implemented through traditionally oldtechniques which generally emphasize only solving construction problems during the constructionphase. The aim of this article is therefore to unveil a professional methodology known as ProjectControl System (PCS) focusing on pre-construction phases of construction projects.

Design/methodology/approach In this article, the authors share the lessons learned duringimplementation of Kuwait University projects worth approximately $400 million in a span of tenyears. The task of the project management/construction management (PM/CM) is being provided tothe university by a joint venture team of international and local specialists.

Findings The pre-construction methodology ensures smooth and successful implementationduring construction phases of the projects as they are generally executed in a fast-pace,deadline-driven and cost-conscious environment. The intuitive proactive methods, if implemented

during pre-construction stage, automatically answer the questions that are encountered during theexecution periods of projects.

Originality/value In this article, the authors share the lessons learned during PM/CM duringprojects over a span of ten years, which could be of use to others.

Keywords Organizational conflict, Inflation, Contingency planning, Control systems

Paper type Research paper

1. IntroductionKuwait University (KU) has undertaken an ambitious construction program of itsmajor projects. Around 18 projects such as, Car Parks, College of Languages andHumanities, Marine Science Center, College of Engineering and Petroleum, a Dental

Clinic, a Sports Complex Head Quarters are all to be constructed during a span of tenyears at the cost of over US$400 million at different university campuses spread allover Kuwait. The scale, complexity and magnitude of the Kuwait UniversityConstruction Program (KUCP) projects warranted the involvement of a professionallymanaged PM/CM organization in order to manage, administer and supervise the

The Emerald Research Register for this journal is available at The current issue and full text archive of this journal is available at

www.emeraldinsight.com/researchregister www.emeraldinsight.com/0969-9988.htm

The authors gratefully acknowledge the financial support of Kuwait University ResearchAdministration Grant No. EV 03/03.

A project controlprocess

351

Engineering, Construction andArchitectural Management

Vol. 12 No. 4, 2005pp. 351-372

q Emerald Group Publishing Limited0969-9988

DOI 10.1108/09699980510608811
http://www.emeraldinsight.com/researchregisterhttp://www.emeraldinsight.com/0969-9988.htmhttp://www.emeraldinsight.com/researchregisterhttp://www.emeraldinsight.com/0969-9988.htm


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projects. Based on bottlenecks faced earlier, it was felt that all functional departmentsof the project management/construction management (PM/CM) consultants such asscheduling, quantity-surveying, quality assurance/quality control (QA/QC),contracts administration, etc., must identify all potential problems and risks for

each KUCP project from concept-to-completion. Subsequently appropriaterisk-management-response and corrective measures must be suggested in advanceto KUCP by PM/CM consultants in order to make sure that two vital aspects: time andcost of each project are kept under control.

Consequently the task of PM/CM consultation(s) was entrusted to a team ofinternational and local experts to deal with all KUCP projects. The objective of poolingthe resources of the university/PM-CM/AE organizations, was to make sure that theKUCP projects are carried out efficiently and expeditiously in a professionallymanaged manner and in compliance with stipulated codes and standards. The threeentities are organized in a complementary fashion promoting mutual cooperation andcollaboration with each other in respect of all facets of the works and in the bestinterests of each project.

In this regard, KUCP has delegated specific responsibilities to both PM/CMconsultants and A/E (design and supervisory) consultants of respective projects. In thedischarge of these responsibilities, there might be overlaps in the interaction andresponsibilities of the contractors on one hand, and the project management team onthe other. A comprehensive matrix of responsibilities for each entity on board aims toclarify roles and functions of the various project participants. The PM/CM consultantshave started carrying out relevant research and coordination of activities related tovarious agencies and statutory authorities related to pre-design, i.e. the planning phase.This accomplishes two primary tasks proposing provisions of preliminary budgetestimates and the preparation of preliminary schedules for projects under this phase.

The activities and tasks of each KUCP project are reported by PM/CM consultantsin their monthly reports which deal with all significant details related to planning,design, tendering, construction, completion and hand-over, and finally the warrantyand maintenance period for all projects. The trio of KU/PM-CM/AE continue to playvarious specific roles in each phase of the management clearly identified under theKUCP charter. Scheduling of construction activities is the function of contractors, butinvariably there are many related coordination issues and some are linked toout-of-sequence works, conflicts with on-site priorities, varying technical opinions andvarious types of construction-delays. Therefore KUCP is geared-up to look properlyinto all vital aspects of the mentioned issues and adequately address them on time.

2. An overview of the project control system (PCS)Following are three basic elements or phases noticed during pre-construction period of

a project, as illustrated in Figure 1:(1) planning (pre-design) phase;

(2) design phase; and

(3) tendering and award phase.

The above-mentioned pre-construction phases (as well as all construction andpost-construction phases) of KUCP projects are implemented with the help of aprofessionally managed web-based system which is described at the end of this paper.

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Figure 1.Project control system


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2.1. PCS databaseFigure 1 represents the core-concept of three pre-construction phases. It deals withthe following four systems as inputs to the data-base system and generates fourtypes of professional reports called outputs as explained below:

(1) Input No. 1. Administration and engineering system. Collection of necessarydata, data-updating and changes / modifications are carried out under thissystem.

(2) Input No. 2. Scheduling system. Master project schedules, progress updatingand necessary changes/revisions in the approved schedules are carried outunder this system.

(3) Input No. 3. Cost system. Cost codes, cost estimates, changes and modificationsare carried out under this system.

(4) Input No. 4. Financial system. Inputs like value of work information,change/variation orders and necessary modifications are fed into the coredatabase of PCS system.

Output reports. Consequently based on information received as inputs, relevantoutput reports are generated by the core database of PCS system.

3. Planning (the pre-design) phaseThe planning phase is sometimes referred as pre-design phase of a project. TheKUCP matrix of this phase covers the following three steps:

(1) Budget estimating establishment of budget for exclusively planning orre-design phase.

(2) Preliminary scheduling identification and monitoring of all pre-construction

activities.(3) Control program updating identification of a suitable reporting system for the

owner.

These steps are adequately addressed by PM/CM consultants in the monthly reportsand KUCP closely scrutinizes them and forwards comments for rectifications,refinements and adjustments, if any.

Special attention is given in the monthly reports to cost estimates of all KUCPprojects during both pre-design and design phases because the design process dictatesthe project-costs (within allocated budgets). The studies conducted by PM/CMconsultants are essentially based on two specific criteria: current market value andspecial circumstances value, i.e. early delivery of furniture, equipment, etc. needed for

temporary relocation of students from the existing educational facility, basically forupgrading purpose.

Various types of financial-status reports are included in monthly reports submittedby the PM/CM consultants and they include budget reports, cash-flow forecasts,indicated outcome reports (IOR) for all projects from concept to completion. It may benoted that the process for each KUCP project proceeds through pre-design phase,design phase, tender phase, construction phase, completion and hand-over, andwarranty and maintenance phase. The reports of the PM/CM consultants include three

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vital areas of each KUCP projects, i .e. budget estimates, monthly costallocations/projections and the preliminary master schedule.

In order to control KUCP projects efficiently, the PM/CM consultants highlight costvariances in the monthly reports for all projects. The cost-variances raise the flag by

pinpointing overruns and/or savings for particular KUCP project(s) during thereported month. Once the decision is taken by KU to build a project, the first step is toconcentrate on its planning phase. Key players like the owner, end-user, variousministries, i.e. Ministry of Planning (MOP), Ministry of Public Works (MPW), Ministryof Electricity and Water (MEW), statutory authorities like the Fire Brigade,Municipality, Legal & Legislative Department (LAL), Audit Bureau (AB), CentralTendering Committee (CTC), etc. play vital roles in providing approval and permission.

The above-mentioned process enables each project to be planned and built inaccordance with mandatory construction guidelines in conjunction with statuary rulesand regulations as stipulated in standard engineering practices while synchronizingthem with the law of the land.

The three important elements of the planning phase, being budget estimating,preliminary programming and periodic control program updating, play very importantroles in ensuring timely preparation and availability of pre-construction deliverableswhich are basically grouped into the following four forms of documentations:

(1) terms of reference (TOR);

(2) project proposal;

(3) evaluation report; and

(4) A/E design agreement.

The selection of potential design and supervision consultants (A/Es) is of vitalimportance to the end-users because ultimate responsibility lies with them as far as alltechnical matters of projects are concerned.

The process of selecting the best A/E consultants comprises of ten sequential steps:

(1) Submission of TOR and shortlist names of A/E offices to the Ministry ofPlanning (MOP).

(2) Invitation of A/E consultants by MOP.

(3) Submission of design and supervision proposals by A/Es to MO.

(4) MOPs recommendations of potential A/Es to KUCP for evaluation.

(5) Preparation of a draft A/E agreement by PM/CM consultants.

(6) Submission of PM/CM analysis report KUC.

(7) Review of report by KUCP/ KUs Higher Committee and recommendation of the

winner to MOP for approval.(8) Invitation by MOP to KUCP and the selected A/E consultants for negotiations.

(9) Obtaining the statutory approval from various authorities and again meetingwith the selected A/E consultant for final negotiation.

(10) KUCP and the winner selected A/E consultant sign and seal the design andsupervision Agreement.

This process is depicted in Figure 2.


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Figure 2.Planning (predesign)phase

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KUCPs objective is to complete all projects with quality within two pre-decidedparameters: time and cost. Therefore all obstructions, sometimes referred to asconflicts, pose considerable concern. Such obstructions are classified as conflictsrelated to schedules, priorities, manpower, technical opinions, procedures, costs and

personalities. The level of conflicts-intensity, from concept-to-completion of projects,keeps on changing during the entire lifecycle of any project (Meredith and Mantel,1995).

A three-step sequential route is carried out during the planning or pre-design phase:

(1) Step No. 1: initial concept and scope of the work.

(2) Step No. 2: professional evaluation of the project-feasibility report.

(3) Step No. 3: appropriate data-collection.

Each step must be thoroughly analyzed and comparatively reviewed with similar data,preferably of similar origin.

The collection of data essentially covers the following five areas of information:

(1) project statistical information;(2) general environmental information;

(3) technical information;

(4) financial information; and

(5) statutory authorities information.

The pre-design phase is greatly impacted by questions like: what, where, how, timeand cost. These questions are hereby elaborated:

. What. The end-user must answer what facilities should be included in theproject.

.

Where. The best location of the project must be chosen i.e. where the projectshould be constructed.

. How. The end-user must decide in principle how the outer-body of the projectshould look like, i.e. pre-cast panels, traditional concrete or glass finish, etc.

. Time and cost. The project should be completed within a set time frame and anallocated budget cost.

4. Design phaseThe design phase of KUCP matrix refers to the following sub-sections:

. detailed design scheduling;

. milestones allocation and up-dating; and

. schedule monitoring and follow-up.

These sub-sections are being constantly reviewed by the PM/CM consultants in theirmonthly reports in order to highlight the up-to-date status of the design phaseactivities such as data collection and analysis and concept design development. Theprogress updates each project under this phase in the form of time-scale bar chartswhich explicitly show the actual start date, percentage of completion, etc. for eachactivity of the project. Generally, two types of schedules are prepared to cope with the


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designing problems, the master design schedule and detailed design schedule. Themaster schedule consists of tables and bar charts that include all design-data in orderfor end-user to have an opportunity to drill-down to whatever level of information to beincorporated. The detailed schedule reflects all design activities undertaken by the A/E

and exerts an effective pressure technique on each member of the design-team formeeting the dates of submittals/deliverables. In turn, this also serves as a window ofopportunity for funding the allocated budgets of each KUCP project. Even for thedetailed design schedule, the established technique like Critical Path Method (CPM) hasbeen preferred by the PM/CM consultants because it provides an early warningsystem for delay mitigation purposes. The CPM technique also enables both KUCPand the A/E designer to monitor design works professionally, review stagingrequirements consistently and identify potential troubles insightfully (Frame, 1994).

The process of the design phase has to pass through various checks and balanceswhile it is a natural continuation to the process mentioned earlier in Figure 2. Thefollowing are the eight steps that take place under this process:

(1) design staging;(2) reviews;

(3) concept development/ selection;

(4) LAL approval;

(5) role of Audit Bureau;

(6) preparation of contract documents;

(7) periodic reviews and approvals; and

(8) process of issuance of tender documents and finalization of list of bidders.

The above-mentioned process is depicted in Figure 3.

A/E consultants have to keep in mind certain cost categories of projects as theypotentially impact construction activities. Therefore limited consideration or ignoranceof cost categories during the design phase often lead to an imbalance within thebudgets of each project.

The percentages of cost categories shown in Table I are used as broad guidelines(Jaeger, 1996).

Project budgets are affected by two factors:

(1) inflation, sometimes referred to escalation; and

(2) contingencies.

These two factors must be well understood without any ambiguity or overlap, asexplained below:

(1) Inflation (or escalation). This is an allowance for an inflationary cost-increaseof items in the estimates between the time of estimation of projects and timeof actual purchase during project execution.

(2) Contingency. This is an allowance for the cost of unknown (or forgotten) itemsin the estimates of the projects. Thus contingency depends on magnitude (size)and nature of the project, whereas inflation or escalation is fully time dependent.

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Figure 3.Design phase


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Application of inflation and contingencies is elaborated herewith. Contingenciesshould be justified (and based) on actual degree of uncertainty at the time of estimatingthe project from item to item. On the other hand, escalation or inflation affects all items,more or less uniformly, if the project proceeds during the time period envisaged in the

budget. Contingency funds must not be used to cover extra costs due to escalation orinflation. However, if items are purchased due to works completed earlier than theywere planned and at lower costs, the amount saved (due to potential inflation) shouldbe treated as indicated budget overrun rather than increase in contingency fund(Jaeger, 1996).

PM/CM consultants generally apply thumb-rule of 4 percent as additional/inflationcost on top of gross costs of the projects for a duration of three to five years. Theinflation varies from region to region of the world. For example, the inflation in pricesof construction material/labor/equipment would not be the same in North America vsAsia vs Africa during the same given period of time. Therefore, the inflation factor isalways subjected to adjustment based on the economic conditions prevailing at that

time period in the region.The design phase is further sub-divided broadly in two parts:

(1) the preliminary design; and

(2) the detailed design and engineering.

4.1. The preliminary designThis part focuses on steps like architectural concepts, process alternatives and size andcapacity of the project. These steps are considered from early stages like concept andfeasibility study of a project. Six specific steps are taken during the period ofconceptual design process as described herewith:

(1) Formulation. Refers to description of a design problem through identification ofalternative facilities.

(2) Analysis. This refines the problem by separating important items fromperiphery items. It pulls essential details through process of interpretations andpredictions.

(3) Search. Involves gathering of a set of potential solutions needed for theperformance of specific functions.

(4) Decision. Means that each potential solution is evaluated and then comparedwith alternatives until the best solution is obtained.

Cost categories Typical % of total project cost

Engineering and project management 12Direct labor 25Equipment and material 30Rental and temporary facilities 5Sub-contracts 20Indirect costs 8Total 100Table I.

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(5) Specification. The designer must make sure that the chosen solution is in theformat which contains enough details for implementation.

(6) Modifications. This refers to new modifications during process of design.

Important decisions are to be made by A/E designers with regard to innovative use ofstructural-frames for the buildings during the preliminary design process. Following isa classic example for the design of steel-structured buildings. A 60-storey ChaseManhattan building in New York used 60 pounds per square foot of steel in itsrigid-frame structure; while the 100-storey John Hancock Center in Chicago used only30 pounds per square foot for its truss-tube structure. It is said that at the time ofbuilding Chase Manhattan, no bracing was designed because of the stiff core rigidframe (Hendrickson and Au, 1989).Design styles. Two types of design styles are knownto be in practice, as described herewith:

(1) Top-down design. Begin with a behavior description of the facility and worktowards the description of its components and their entire interconnections.

(2) Bottom-up design. Begin with a set of components and see if they can bearranged to meet the behavior description of the facility.

In any high-rise building, the preliminary design determines the following threefactors: space, time and cost.

The overall design approaches involve decisions such as choice among structuresteel frame or reinforced concrete or pre cast concrete panels, etc.. The chosen type ofstructure then determines choice of nature of foundations to be designed. All thispreliminary design process leads to fix a desired shape for the detailed design process.

4.2. The detailed design and engineeringThis part involves the process of successively breaking down, analyzing and designingthe structure explicitly in the form of drawings, specifications and bill of quantity(BOQ). The detailed designing process passes through the following six steps:

(1) calculation and analysis;

(2) checking and assessment;

(3) cost estimate and value engineering;

(4) review and audit;

(5) use of information technology, i.e. AutoCAD and web-based managementsystem; and

(6) approval.

The detailed designing process must also consider all potential problems likely to beencountered during construction and commissioning, use and maintenance, additions,possible alternative uses and ultimately de-commissioning of the project.De-commissioning means any design that uses standard materials and componentsmakes replacements cheaper and easier to obtain in years to come. A/E consultantmust keep in mind how the design could include provisions which facilitate changeswith little extra initial-cost before proceeding with the detailed design (TheInstitution of Civil Engineers, 1996).


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The traditional approach to cost estimation. Cost estimation is carried out by twoways, either bottom-up or top-down, similar to design styles mentioned earlier.

The bottom-up estimation is the most common approach and it employs a techniquecalled the Work Break-down Structure (WBS) as a guide for identifying cost elements.

This means that before the cost estimates are made, a detailed WBS must beconstructed. Then cost data are gathered at the bottom most level of WBS, which iscalled the work package level. These bottom most costs are further aggregatedupwards gradually until the highest level of WBS is reached and that estimate is calledthe overall project estimate. As the name implies, the estimation process is relativelysimple. The WBS is used to organize and define the works/activities of projects. Eachactivity is identified and the responsible person or organization is asked to provideestimates of works to be performed.

In the top-down estimation (also called parametric cost estimation) the bidderfocuses on formulating cost estimates by examining the fundamental parametricrelationships of variables. It is often asked which is the better procedure of estimating,

bottom-up or top-down? Researches have revealed that the creation of WBS is desirableon the projects that have been carried out repeatedly. This way existing amplehistorical data provide enough information to staff members of the project forformation of a good WBS. The best practical approach is to employ both bottom-upand top-down estimating processes because they serve as check on one another(Frame, 1994).

There is a relationship between cost of change vs project stages and therefore timelydecision on alternative schemes must be taken before proceeding on detailed designingprocess.

Design professionals conduct field studies for different engineering disciplines toget acquainted with the latest engineering information such as foundation conditions,slope stability and structural properties of natural materials. Even help from

economists, environmental and geological scientists, etc. must be taken duringdesigning phase. This leads to a concept of value engineering (VE). Mostly VE isconsidered between the concept design development and the final design/workingdrawing development stages. However, there is no hard and fast rule for injecting VEpractices as long as it serves the basic purpose of potential savings withoutcompromising with quality.

Miles (see Barrie and Paulson 1992) defines VE as follows:

Value engineering and analysis is an organized and creative approach which has for itspurpose the effective identification of unnecessary costs, i.e. all costs which provide neitherquality, nor use, nor life, nor appearance, nor customer features.

Potential saving-guidelines for VE (DellIsola, 1997) are as follows:. on total budget: 1-3 percent;. on large facilities: 5-10 percent; and. on high cost areas: 15-25 percent.

VE includes the following seven sequential phases:

(1) The information phase. What it is, what does it do, what must it do, what does itcost and what is it worth.

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(2) The speculation phase. This is also known as the brain storming phase. It asksa question: What the job is meant for?. Then applies techniques like:functional comparison, scientific research, etc. to be followed by relevantprocedures for implementation.

(3) The analysis phase. Questions generally asked are: What does each analysiscost and whether each analysis will perform basic functions?. Techniques usedare comparison, advantages vs disadvantages, probability, ranking in order toadopt procedure of establishing criteria and evolution/creation of ideas.

(4) The development phase. Procedure adopted is by gathering convincing facts towork on specifics not generalities. Selection of a choice is done first and thenalternatives are detailed.

(5) The presentation phase. It should be a written proposal comprising ofillustrations, advantages vs disadvantages and acknowledgements ofcontributions.

(6) The implementation phase. Translation of ideas into action is carried out in thisphase but without any compromise. Subsequently monitoring of progress isdone with established dead-lines and designated responsibilities.

(7) The follow-up phase. This phase comprises of auditing the actual results,preparation of cost reports, cross feeding of technical ideas and alsoidentification of new ideas.

It is advisable that an orientation session should be first organized to discuss theabove-mentioned seven phases.

With regard to potential savings through value engineering, the following rangewas noticed by the PM/CM consultants of KUCP during their vast experience inconstruction projects worldwide:

. during conceptual stage: 40 percent; and

. during design development stage: 60 percent.

5. Tendering phaseThis phase refers to following three sub-sections, as mentioned in the KUCP matrix:

(1) tender scheduling;

(2) milestones allocation and up-dating; and

(3) schedules monitoring and follow up.

As a continuation to an already discussed process of designing in Figure 3, the

tendering process consists of specific and logical methodology shown herewith inFigure 4. During the tendering process the Central Tendering Committee (CTC) plays avital role.

The sequence starts with the submission of tender documents and shortlist namesof the potential contractors to CTC, invitation of bidders by CTC, the pre-tendermeeting until KUCP and the winning contractor both sign the contract.

Figure 5 illustrates graphically the comparison of bills as priced by the three lowestbidders of a sample KUCP project.


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Figure 4.Tendering phase

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Figure 5.Sample of values

evaluation


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Jointly all A/E consultants of respective projects of KUCP and PM/CM consultantscarry out following activities:

. tenders in and out process;

.

evaluation of tenders;. evaluation of supervision contracts;. award of contract; and. finalization of notice to proceed (NTP) dates for all KUCP projects.

The milestone dates are identified by PM/CM consultants and then allocated in the barcharts so that monitoring and follow up is reflected in their monthly reports for eachproject under this phase. Participation of owner and A/E designer is equally importantin reviewing tenders and taking decisions. The success of this phase depends onunambiguous development of construction bid packages. The bid packages as well asoverall contract value of a project are a lump sum, therefore a very close competitivebidding phenomenon is prevalent in most governmental projects.

5.1. Cardinal changeSometimes the owner decides to change the location of the project after the award tothe winning contractor. This is a rare phenomenon but sometimes it does happen dueto sudden and unavoidable circumstances, some of which are mentioned below:

. change of project location; and

. a great number of small alterations which might impact cost and time of theproject, etc.

Such circumstances must happen between the dates of the award and of the NTP of thecontract.

The change of location of a project (or any other reason) might extensively changethe entire character of the work that was initially required under the (awarded)contract. Such a change is called a cardinal change. In such cases it is rightly allegedthat the change(s) do alter the general scope of work and therefore, the originalcontract is deemed as invalid. So cardinal-changes are considered breaches ofcontract because they go beyond the nature of the work which reasonably could havebeen anticipated by the contractor when bidding the project. Therefore, itfundamentally changes the economics of the bid. Mostly in cases ofcardinal-changes the contractor is not obliged to execute work on site unless thecontract price is disregarded and a major variation order related to new circumstances(i.e. time and cost) is issued and duly accepted to both owner and contractor.

Any change of site-location prompts to a concept known as differing site

conditions from the one originally anticipated by the contractor. Therefore, a suitableclause of differing site conditions is documented in standard forms of AmericanInstitute of Architects as well as in many more standard forms of constructioncontracts (Bramble et al., 1990).

6. Award phaseEvaluators of tenders must ensure that all bidders are treated fairly in the process ofevaluation. During bid-appraisal process all tenders must be treated equally.

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However, owners are faced with a dilemma in choosing the best short-listed tenders ifTOR is not respected by the potential contractors in the letter and spirit. Ownersconfusion is generated due to three deficiencies in tenders: no-low tender; tender withmany alternatives; and tender having a combination of the above two scenarios. Each

one of them is explained below:

(1) No-low tender. When a bidder who is not low under the basic guidelines,generally volunteers (during bidding itself) an alternative to be judged by thedesigner in order to make sure that the suggested alternative is equal (orsometimes better) than the specified. If the suggestion is accepted by the owner,it becomes the new lowest bidder and the project is awarded to such a bidder.In this process, the bidder and owner both gain from bidders positive efforts.

(2) Tender with many alternatives. Under the similar given conditions, when abidder submits an alternate that represents sizable money savings but it doesnot equal the specified product. In this event, some times the proposedsubstitution is accepted by both designer and owner due to magnitude of

savings. As a result all bidders should be given again an equal opportunity toquote and then the award should be made to the lowest tender.

(3) Combination of no-low and many alternatives. When an alternative is suggestedby a high-bidder who would not be low even after taken the alternative intoaccount. Still sometimes the alternate is accepted by the designer and owner.Then, earlier computed lowest bidder may be again contacted and a requestshould be made to quote on the proposed modifications suggested lately (Barrieand Paulson 1992).

KUCP is presently evaluating tenders for the second design and car park building. Thetenders from seven companies have been received for this project and we are listing

herewith the scenario of the three bidders from lowest-quote onwards:(1) M/S X;

(2) M/S Y; and

(3) M/S Z.

The TOR of the design have suggested that the design should be within four floors,i.e. four levels and roof with no basement. Under these guidelines for the givencapacity of parking spaces, the bidder no. 2, i.e. M/S Y, has submitted the tender with adesign of multi-storey car park building having only three levels and roof. They havedesigned the project by utilizing a lot of space for parking the cars even including allaround ground floor of the building.

This design basically flouts the norms set in the TOR, nevertheless it does reflect aninnovation of the design because car parkers would be eventually saving time bygoing only up to three levels and roof, rather than up to four levels and roof.

Since M/S Ys tender is the second lowest, it therefore falls under the abovementioned category: no-low tender. This however, raises the question of who should begiven the benefit of the doubt which normally goes in favor to the owner/TOR. It maybe noted that the decision of awarding this contract is presently under process andevaluation with regard to other technicalities/formalities both legal and financial.


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Figure 6 illustrates in tabular form the specific project data of KUCPs firstdesign-build multi-level car park (SH-P1) presently under construction.

The overall scenario of on-going KUCP projects is shown in Figures 7 and 8respectively in the form of bar chart and cash flow projection for eight years.

7. Web-based management systemVarious research-findings have revealed that fundamental problems in failing toachieve the project goals (timetable and budget) originate from:

. ignorance of what other team members are doing;

. poor reactivity to sudden changes in the project environment; and

. lack of discipline in design change-control.

It may be noted that all these problems are related to lack of communication.Therefore KUCP wanted to introduce a suitable web-based technology which

should have criteria such as: own independent platform of web system,geographical-interactivity, cost effectiveness, technically rich in exchange ofinformation and easy to use. The PM/CM consultants of KUCP therefore proposed arelational database management system (RDBMS) for projects. The RDBMS is calledProlog Manager basically used for sharing information and communication of allKUCP projects. This system works under windows environment so that linkage ismaintained with other complementary systems i.e. Microsoft Word, Sure Track,Primavera, Welcome Open Plan, etc. The integration with popular computersystems/software is necessary in order to obtain the desired results in the form ofspreadsheets related to financial, cost, project-status and many more reports. Suchreports help owners in analyzing what if projections either contemplated or actuallyhappened during the progress of various activities at different sites.

In todays interlinked world, most of the problems of global large scale projects(GLSPs) are solved through web-based work flow management systems (WFMS). Thisconcept of WFMS satisfies the needs of the owner in terms of reliability and efficiencyfor managing and controlling various project activities by interacting with GLSPs. TheProlog Manager is also helpful to various project-partners of KUCP because they arelocated at different KU campuses scattered all around the country. One special featureof the Prolog System is immediate electronic updating of progress-status of variousprojects through single entry point. This feature has augmented the process ofsharing the information among existing management information systems (MISs) ofKUCP projects. Consequently interaction through Prolog Manager among existingMISs of KUCP projects has started solving various types of shortcomings such aswastage of time, minimal possible documentation, arguments, slow decision making,

etc.Under dismayed conditions generally prevailing in this part of the world, it is

believed that use of the web-based Prolog System will further help KUCP in making allpossible communications instantaneous. Eventually, the database will become aleading-edge tool as a systematic, organized and efficient storage for the applicationto all KUCP projects. The enhanced communication channels will in turn boostinteraction among projects already started or yet to start in future (Al Rashaid andKartam, 2003; Essex, 2003; Yousre et al., 2003).

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Figure 6.Award phase


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8. ConclusionThis paper presents an innovative control concept, which focuses on specific proactivemethodology and is therefore highly recommended for implementation during thepre-construction phases. The proposed methodology will specially be of great use inlarge construction programs whereby various projects are executed concurrently onmany sites, such as in KUCP. The aim of this paper is to identify problems andbottlenecks in advance, i.e. before they actually occur on construction sites. Therefore,

Figure 7.KUCP projects stage-wisestatus as of April 2004

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the suggested pre-construction approach enables the executors of projects in carryingout professional monitoring and control of two most important aspects necessary forthe success of any construction project. The two vital aspects to the owner are, thetime-schedule and budget of each project within the overall construction program.Oversight or improper planning of these two aspects during the pre-constructionphase, invariably results into overruns of projects both in terms of time and cost.Therefore, the proactive rather than active approach carries significant importance tothe construction industry in general because it consequently identifies and highlightsthe areas wherein ample scope of improvement is possible within traditional modusoperandi of construction projects. This paper also addresses many complex problemswith which owners are bound to be faced with during actual construction phase onsites. One such usually faced problem is how to mitigate delays while the process ofconstruction continues. The suggested professional approach of corrective-measuresdoes provide solutions to potential problems, provided that they are considered well inadvance. At the same time, the concept of early solutions is very much helpful formaking technical-interactions and flexible decisions subsequently during theconstruction phase.

Summing-up the advantages of the contents of this paper, we find that the constantreview of TOR during the planning phase of similar projects should be carried out bythe owner in order to incorporate the lessons learned from similarly executed projects.

Furthermore, it is of vital importance to the owner during the design phase thatbudgets of various projects are prepared by keeping in mind two importantingredients, inflation and contingencies. PM/CM consultants must envisage andincorporate appropriate clauses in the tender documents with regard to cardinalchanges so that the owners interests are fully protected. Finally, the paper emphasizesthat the owner should not hesitate in accepting innovative ideas mentioned in thetenders which are submitted by potential contractors even if they they might violateTOR.

Figure 8.KUCP projects cash flow

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Look-ahead actions basically in the owners vital interests, are possible if due care isexercised in formulating guidelines before actual construction commences on sites, sothat impressive results are anchored in the solid technical foundation of the overallprogram. The authors firmly believe in the preemptive core-concept of this paper, that

predictability envisaged during the pre-construction phase of a project bringssustainability during its construction phase. Therefore, it is imperative that theproposed methodology, if professionally implemented, is bound to yield positiveresults in construction projects due to the competitive economic environmentprevailing worldwide in the construction industry.

References

Al Rashaid, K. and Kartam, N. (2003), Effective project management using web-basedtechnology, Journal of Science & Engineering, Vol. 30 No. 2, pp. 153-66.

Barrie, D. and Paulson, B. (1992), Professional Construction Management, 3rd ed., McGraw-HillBook Co., New York, NY, pp. 354-60.

Bramble, B., DOnofrio, M. and Stetson, J. (1990), Avoiding and Resolving Construction Claims,RS Means, Kingston, MA, p. 13.

DellIsola, A. (1997), Value Engineering, Practical Applications for Design, Construction,Maintenance and Operations, RS Means, Kingston, MA.

Essex, D. (2003), Web security, Magazine of Project Management Institute, August, pp. 24-6.

Frame, J. (1994), The New Project Management Corporate Re-engineering, Jossey Bass,Chicago, IL, pp. 203-7.

Hendrickson, C. and Au, T. (1989), Project Management for Construction, Prentice-Hall,Englewood Cliffs, NJ, pp. 54-8.

(The) Institution of Civil Engineers (1996), Civil Engineering Procedure: Design Methods, 5th ed.,Telford Services, Telford, pp. 56-9.

Jaeger, L. (1996), TUNS (Technical University of Nova Scotia) Canada- Project ManagementSeminar, No. 195903, pp. 40-2.

Meredith, J. and Mantel, S. (1995), Project Management A Managerial Approach, 3rd ed., Wiley,New York, NY, p. 259.

Yousre, F., Remi, F., Claude, S. and Vincent, B. (2003), Web-based management system, Journalof Project Management Institute, September, pp. 40-7.

Further reading

Haughan, G. (2002), Effective Work Breakdown Structure, Management Concepts, Vienna, VA,pp. 9, 62-8.

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a project control process in pre-construction phases.pdf

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