Contracts Management

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Course Name Candidate Name Course Title Reg. No. Module Assignment No. Date of Dispatch

PGPPM Milind Mahesh Ashar Contracts Management 210-03-31-8104-2123 Module 55 PGPM 14 20th July 2010

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Name of the project
A Commercial building including one basement, Ground floor and first floor which is surrounded by massive 2 floor car park. The area of the Mall is 40,570 Sq m built up area. It is for the purpose of shopping center and its named as Mirdif City Center (MCC).

Scope of Work
Our Scope of Works are as follows, 1. Complete the structure as per drawing and specification given by the client including excavation to required level, shoring, dewatering if required, soil improvement, substructure, substructure waterproofing, retaining wall as per drawing& super structure. 2. Masonry works including external block works, internal partition using block and complete plaster works to receive the paint. 3. Complete carpentry and glazing works as per the drawings and specification. 4. Complete drainage and water supply works including all fixture and fittings like bathroom/toilet fittings, water tanks etc. as per the drawings and specifications 5. Completion of fire fighting systems including wet and dry riser system using civil defence approved shop drawings. 6. Completion of all electrical works and HVAC works including all fixtures and fittings as per the approved drawings. 7. All the external works with in the Plot limit as per drawings.

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Important Details of Contract Contract: It was a Lump sum Contract.
As per the above-mentioned contract we were supposed to complete all the scope of work for a fixed lump sum price as per all requirements specified in the contract including drawings and specification. We will not be provided with any variation for any works due to change in work as per our requirement or due to price escalation during the contract period.

Cost: The total cost of the project for the above-mentioned scope of work shall be
1.65 Million OMR.

Duration: The total duration for completing the above scope of work shall be 15
Months with time period details given below. One month for mobilization. Two month for excavation, shoring and dewatering. Two months for other substructure works. Six months for the completion of all other works including superstructure, electrical, HVAC. The time required for all permanent connections was not included in the abovementioned time.

Payment Terms
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Advance payment:
10% of the total contract price should be given as the advance at the time of signing the contract against the bank guarantees for the equivalent amount. 80% percent of the amount should be released as interim payment as the progress of work in site certified by the clients Engineer. Minimum Interim payment to be certified should be 5% of the contract price. 10% of the contract amount shall be the retention amount, which will be released after the maintenance period of 1 year. The Time of certification for the interim payment by the engineer will be 14 days from the application by contractor. The Employer should make the payment with in 30 days on receipt of certified payment certificate.

Performance Guarantee
Performance Guarantee (10%of contract value) shall be submitted within 2 months from the receipt of letter of intent.

Contract Agreement
Contract Agreement was formed with following documents and signed by the client and contractor. Contract document include, in order of priority: 1. Letter of Intent. 2. Addendum issued at the time of Tender. 3. Conditions of contract. (Including contract agreement) PGPM - 14 Page 4

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4. Drawings. 5. Specifications 6. Bill of quantities 7. Soil test Report.

ORGANISATIONAL CHART
MIRDIF CITY CENTER (M.C.C) PACKAGE # CP 37 - MAIN CONTRACT WORKS
PA SENIOR CONTRACT MANAGER E. PICKLES COMMERCIAL MANAGER M. CIOLLI

M.AGLIAM

CONTRACT MANAGER S. McQUE

COMMERCIAL

SITE MANAGER IBIS & SS B. E. CARY

PLANNING

DESIGN MANAGEMENT V.HABER

PACKAGE PROCUREMENT M.ORFORD

MEP COORDINATION S.BROWN

CONSTRUCTION

QUALITY ASSURANCE J.SAJEEV

OFFICE ADMIN.

R.DURAI

R.KUMAR

R. NEL

PLANNING

DESIGN

PACKAGES

MEP CO-ORD

CONSTRUCTION

QA

OFFICE ADMIN

LOCAL AUTHORITIES A.TAHAT

LOGISTICS

SHE

S.KAY

N.NEL

AUTHORITIES

LOGISTICS

SHE

SITE MANAGER BEDROOMS TBA

SITE MANAGER FOH / BOH TBA

SITE MANAGER BASEMENTS R.DARCY

SITE MANAGER C1 TBA

SECTION MANAGER - WET TRADES TBA

SECTION MANAGER - FITOUT TBA

SECTION MANAGER FINISHES TBA

SECTION MANAGER - DESNAG & HAND OVER TBA

SECTION MANAGER COMMON AREAS TBA

SECTION MANAGER - FOH TBA

SECTION MANAGER - BOH TBA

SECTION MANAGER CORES TBA

SECTION MANAGER PARKING TBA

SECTION MANAGER CORES TBA

SECTION MANAGER SHELL TBA

SECTION FOREMEN TBA TBA

SECTION FOREMEN TBA TBA

SECTION FOREMEN TBA TBA

SECTION FOREMEN TBA TBA

SECTION FOREMEN TBA TBA

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SECTION FOREMEN TBA TBA

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1. General Manager PGPM - 14 Page 5

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Represents the Top-level Management. He is responsible to the management. The G.M will convey all the decisions taken by the top management to the Middle level management. He will attend the entire meetings representing the project. All the disputes, which cannot be solved by the middle level management, are taken considered by GM. 2. Contracts Manager He is responsible to see that all things are going as per the Contract. All the disputes concerned with the contract conditions are taken care by the Contracts Manger. Contracts Manager makes the co-ordination with client to make contract successes. 3. Quality Manager Quality manager is responsible for all the quality matters for the project and he should report to the General manager. He is supposed to maintain all the work as per the quality control pan of the company. He should monitor all the quality report and should report to the GM incase of any discrepancy

4. Project Manager He is responsible for all the works at site. He should report to the General manager. He should co-ordinate with the Contracts manager and the quality manager to achieve the result.

5. Project coordinator

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He coordinates all the works at the site to complete the project as per the contract requirement. He will be directly reporting to the PM. He will co ordinate all the works with planning department, MEP department, Civil department, Estimation Department and Main Office. 6. Planning Engineer. Planning Engineer will plan execution of works in coordination with all the departments. He will be directly reporting to project coordinator. In Special cases he have the right to report directly to the PM like proper co-ordination is not there in site to do the things as per the agreed plan. He has to Track the project on the daily basis agnist the master plan. He should submit the monthly progress report to the top management approved by PM. 7. Quantity Surveyor. Quantity surveyor will responsible for all running bills, subcontract bills etc. He should check the actual quantity of work done at site before releasing the payment. He should be reporting to PM incase of any discrepancy in the Estimated quantity and the quantity of work done at site.

8. Project Engineer. He constitutes the part of low-level management. He will be allocating the works as per his area works to the S. Engineer who will directly execute the works with his labour force.

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Method Followed for Administer and Monitor: The project is being monitored as per the contract throughout the period. Various measures have been taken so that the entire obligations were completed as per the contract. As the contract is being awarded detailed construction programme is made along with cashflow, manpower requirements and equipment schedule in co-operating various departments like Accounts, HR, Purchase, Estimation, Quality control, Safety, Engineering. All the above is discussed with each department and finalized. Construction is started with a kick off meeting, which will ensure to make proper co ordination within the project team. Project coordinator will coordinate all the works and report to the project manager. Weekly site meeting will be held incorporating all the departments to make proper co ordination and resolve disputes if any. Every week the progress of project will be monitored and problem for the delay is identified. The concerned department is forced to take the action so as to minimize the delay within the next meeting. The quality Control plan is monitored by Q.C and Reported to Quality manager. Quality control plan is to be strictly followed though out the contract period. This plan is made as per the quality procedures of the company. This describes each procedures like Documentation of Project quality plan, details of contract. Costing, Audit programme and audit reports Material procurement, inspection and test records Appointment of subcontractor & List of suppliers

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Safety and health hazards Responsibility Housekeeping Variation Records Training Records Non Conformity Records and its corrective action taken at the site

Enterprise Resource Programming (ERP) was used for the proper management of the project, which provides current updates of all departments regarding the project. Interim payments were claimed in every interval of time. The actual quantity of work done at site is calculated by quantity surveyor and submitted to the project manager. The bill is forwarded to the client once the clients engineer approves it. Each part of works to be done at the site is clearly defined in the companys process manual so as to avoid ambiguity. The project manager does work allocation at site and the work at site is monitored by project co-coordinator so as to avoid any confusion that,.which department will do this work? The project manager resolves any dispute in the site. If he is not able to resolve the dispute he informs to the top-level management. The dispute in the contract is being discussed with the contracts manager. If he cannot resolve the dispute its again recommended to top-level management. The dispute between contractor and client is resolved within the both management

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Conclusion:
The above-discussed monitoring system was successful up to this stage of the project. As the project is running as per the schedule and without any major disputes, it can be considered as successful contract so far. But it is better to have a procurement team to be attached to the organization chart as it can make progress on site. Most of the delays were noted because of the delay in supply of material at site. If a separate team in monitoring the material requirement they can easily understand the market conditions. The costing of the project can also be made positive. The planning engineer at site and the purchase department at main office are now handling this part of the project.

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