CONTRACT ADMINISTRATION

 plays a major role when delivering any construction project. Therefore, it is

important to have an understanding of the construction contract administration
process.
Contract Administration - involves all necessary activities for a construction project
performance from the initial stage to its final stage. These activities include
monitoring of the project performance with the agreed contractual obligations
between the parties to the contract.
Contract - is a mutual agreement created between two or more parties, and ensure
the parties involving in a contract aware of their obligations and they fulfill the
obligations.
Stages of Construction Project
 Design Stage
 Tender Stage
 Construction stage
 Handover and Final Account stage
Start of Contract Administration Process
The contract administration process begins together with the project design and
planning stage. During this stage, it is necessary to determine the contracting system
to follow for the specific project. Mainly this can be two types.
 Design then Build
 Design and Build (Turnkey projects)
In the planning stage of any development project, it is necessary to appoint the
contract administrator.
Design stage Contract Administration
 Employer in conceptual mind
 Project manager will be appointed at this stage
 Contract administration duties - monitoring and controlling both cost and time
under the pre-determined terms with the Employer.
 Next step in the design stage is to present the design brief by the Employer’s
Project Manager
 necessary authority requirements and approval to develop the initial concept
 Once the design brief is presented, the design team will prepare the final design
including the drawings.
 Once the design drawings are available, prepare the specifications and contract
documents
 Contract Administrator will prepare the contract documents
 Contract documents will be prepared, and contractual matters will be discussed
for the proposed project.
 Risk allocation will be discussed
  Must determine important factors that are related to managing the construction
risks such as Construction Period, Liquidated Damages, Defects Liability Period,
Payment terms, and Retention Sum.

Contract Administration during the Tendering Stage

 Stage where more contract administration work involves
 Necessary to determine the tender procedure and prepare the tender
documents
 Once the tender closing date is reached, the next step is tender evaluation
 Consultant QS or Contract Administrator has the responsibility of determining
evaluation criteria
 Tender evaluation criteria can depend on the technical proposal, time, and price
 Series of tender clarifications in terms of tender questionnaires, tender
interviews, and clarifications.
 The design team will be involved in the tender evaluation process by checking
and recommending the construction proposals
 After the evaluation process, the next stage is the Award of Tender.
 Letter of Award, Contract Documents, and construction drawings are the
important things to prepare during this stage to award the tender and to sign
the contract agreement between the parties to the contract.

Contract Administration during Construction Stage

 Necessary to understand the contract document and the obligations to each
party
 More risk is involved in terms of both time and money, also necessary to get
the work done with the required quality and as mentioned in the specifications.
 Involves progress claims, variations to the contract, claims including Extension
of Time, and other legal matters
 The contract administration team is aware of the binding contract and its
clauses
 It is important to know the contract document specifically used for the project
when you are involved in contract administration or related matters of any
project.
Construction Contract Administration during Completion and Final Account
Stage
 Mostly similar in different forms of contract, necessary to monitor the defects,
warranties if necessary, and any other liabilities
 Necessary to prepare the Final Account Certificate, and release of retention
money
 Adjustments to the contract document in terms of variations, liquidated
damages or penalties should be indicated
 Contract Administrators and Quantity Surveyors play a major role in delivering
a project within the stipulated contract obligations.
When does Construction Contract Administration process end?
 Usually, the Contract Administration process will end up with the acceptance of
the project.
 This can be done after completion of a project with due performance or
termination of a contract due to poor performance by any of the parties to the
contract.
 After handing over a completed project, there is a defects liability period.
 Most of the times dispute resolution can be done by negotiating. However,
some disputes need arbitration or mediation
https://sihelaconsultants.com/construction-contract-administration-basics/

DOCUMENTING PROJECT PERFORMANCE

Performance Measurement - the process of determining how successful
organizations or individuals have been in attaining their objectives
Performance Measures - are vital signs of an organization which helps to recognize
whether the activities of a process or the outputs of the process achieve the specified
objectives
Performance Measurement Frameworks in General - a general theoretical
framework developed in a research that can act as the basis for companies
performance measurement system.
Traditional Performance Measures - include the return on investment (ROI) , the
pyramid of financial ratio, the discounted cash flow (DCF), residual income (RI),
economic value added (EVA) and cash flow return on investment (FROI)
Contemporary Performance Measures - includes the performance pyramid, the
balance scorecard, the performance prism and the EFQM excellence models.
The Performance Pyramid - illustrates the relationships among the basic
performance criteria, determines how each performance dimension relates to an
identified need
The Balance Scorecard - focuses on four key issues: financial, customer, internal
processes and innovation, gives a broader perspective of the activities of the firm
The Performance Prism - is like a thinking aid which integrates five related
perspectives and provides a structure that enables executives to think through five
fundamental questions (Stakeholder satisfaction, Stakeholder contribution, Strategies,
processes, and capabilities)
Quality Management Frameworks - They include: the European foundation for
Quality management (EFQM), Excellence Model in Europe, the Malcolm Baldrige
National Quality Award (MBNQA) in the United States and the Deming Prize in Japan
Construction Project Performance Frameworks
Integrated Performance Index (IPI) for assessing the performance of research and
development (R&D) projects
Key Performance Indicators (KPI) - consists of seven project performance
indicators
Client Satisfaction Framework - enabled client to measure the performance of the
contractor.
Contractor Business Performance Framework – Synthesizes several existing
business performance frameworks such as the balance score card
Participant’s Project Performance Framework –for evaluating the project
performance of all participants of a construction project in the UK
Contractor’s Project and Business Performance Framework – for assessing
contractor’s project and business performance in the UK
Project Quality Performance Framework - a framework called QLASSIC to
evaluate contractor’s quality performance (CIDB Malaysia, 2006). The major strength
of this framework is that it is easy to implement
Construction Productivity Measurement Framework – CALIBRE approach for
assessing construction productivity of on-site performance

PROJECT CONTROL
 processes for gathering and analyzing project data to keep costs and schedules
on track.
 include initiating, planning, monitoring and controlling, communicating, and
closing out project costs and schedule.
 Hierarchically, nest under project management.
 A project controller could be reporting to a project manager on a specific
project.
 Project controls are vital to successful project management, as it alerts project
stakeholders to potential trouble areas and allows them to course correct, if
needed.
Project Planning - one of the important steps in which controllers and project
managers work together. project plans, schedules, work-breakdown structures or cost
estimates.
Budgeting - essential to calculate costs accurately and to understand when and why
variances occur. By time-phasing budgets and refining the numbers, a transparent
model is available for senior managers and team members alike
Risk Management - by preemptively identifying risks, monitoring risk continuously,
and developing contingency plans to address and mitigate issues, it becomes possible
to reduce impact on budget and schedule
Change Management - by tracking changes and understanding their impact, while
following a clear process for evaluation, approval, and accountability, projects can
stay on their charted trajectory.
Forecasting - good progress measurement is a vital input to the forecasting process.
It serves as the comparison against actual and committed costs that enable project
controllers to extrapolate a forecast using a combination of standard forecasting
methods and formulas.
Performance Management - Defining and using key performance indicators (KPIs)
to monitor project health and forecast trends is crucial to take corrective actions.
Project Administration - This process involves establishing processes and systems
that can help team members communicate and collaborate with each other.
Project Controls vs. Project Management
Project Management - holistic function that involves managing people, processes
and deliverables in a project through various sub-functions. The objective is that it
aims to successfully complete a project given the resources available
https://ibimapublishing.com/articles/JIBBP/2016/482398/482398.pdf

Project Controls
 sub-function and focus on just two parameters: cost and schedule
 objective - minimize the variance in costs and schedule from what was
originally planned
 acts as a safety harness to project management
 introduce a necessary reality check for project managers, giving a more data-
grounded view of how the project resources and objectives are trending over
time.
 part of a monitoring function that analyzes scenarios and provides
recommendations
 project controller reports on cost and schedule and advises the project team of
potential issues.
 project controllers interact with more than just the project managers that they
report to.
 A few team members that controllers interact with are:
o Project manager
o Finance team
o Vendors
o Construction manager
o Procurement team lead
o Technical team lead

Benefits of Project Controls

 Reduced project costs through ability to make timely decisions using KPIs
 Increased project predictability for cost and completion date
 Increased visibility into the financial health of the project as it progresses
 Ability to mitigate project scope creep
 Meaningful benchmarking data for future projects via well-structured projects
  Increased margins when working in a fixed-price environment
 Improved reputation for properly managing and controlling projects
 Competitive advantage over organizations with less mature project
management capabilities
 Increased job satisfaction for project team members

Reports That Every Project Controls Team Should Have

Cost Report
 One of the most frequently used tools for communication, a status report
should include all metrics regarding project costs
 Examples of metrics on cost include actual budget consumed so far, committed
expenditures—such as contracts signed with vendors for work yet to be
completed—and ratios of actual versus planned work as of a given date
Change Management Register
 Scope creep is a common challenge for most project managers.
 keeps track of change in scope from the initial statement of work or estimate
 identifies how much extra cost the project has to incur and how much the
project may be delayed because of the addition in scope.
 helps project teams prepare for the impact and communicate that impact to
customers, whether internal or external
Risk Register
 a document that manages risks and records contingency dollars associated with
known risks
 It works as a RAID (risk, action, issues, decision) log and is created at the
beginning of a project, documenting risks, assumptions, issues, and
dependencies.

Challenges Within Project Controls

 Lack of commitment and support from senior management
 Perception as just another cost function
 Confrontational dynamic
 Manual and outdated processes
https://aliresources.hexagon.com/knowledge-pages/project-controls

COORDINATING CONSTRUCTION DETAILS

In the construction industry, coordination between the technical team and the
construction team is key to getting the most out of human capital, thus achieving
optimal construction. In everyday life, different circumstances usually arise due to
the lack of communication that prevents this from being achieved, among them we
can name:
 Workers are not performing the tasks in which they are most productive
 There is bad management
 Clear objectives have not been specified
 Modification of plans by the technical office that was not communicated to the
work on time.
 Delay in the delivery of materials, missing or surplus of the same
 Lack of control
It is essential to have a global vision of the work to be done, not only do we have
to think about the organization in the short or medium term, but we also have to
anticipate the needs of the work in the longer term. To achieve this:,
 setting common goals
 Cooperation and teamwork will be fostered.
 know the members of the team since each person has different skills and
abilities.
 The person in charge has to know them and assign the tasks according to
 each one some tasks and responsibilities,
 define their roles.
 must have efficient communication channels,
This will be possible since you will be able to achieve:
1. Effective task management
2. Fluid communication that makes confusion impossible.
3. An optimal assignment of responsibilities
4. Perfect timing and coordination
5. Access to the most up-to-date information at any time, from anywhere:

The document outlines the project management and coordination

procedures for a construction project at Northwestern University. It specifies
administrative provisions for coordinating operations, including general
coordination procedures, the creation of coordination drawings, and the
management of Requests for Information (RFIs). Each contractor is required
to participate in these coordination activities, and responsibilities are
clearly defined. The document also details the use of a project website for
communication, scheduling project meetings, and maintaining
documentation related to the project. Key procedures include creating a
subcontractor list, coordinating construction activities to avoid conflicts,
and ensuring energy conservation. The document emphasizes the
importance of clear communication and documentation throughout the
project lifecycle to achieve efficient and orderly project execution.
1. Project Web Site ManagementThe document outlines the requirements for
managing the project website, including the provision of complete archive
copies of project website files to the owner and architect, as well as the
software packages to be provided under their current published licensing
agreements.
2. Project MeetingsIt details the requirements for project meetings, including
the agenda, record-keeping, and the importance of having authorized personnel
familiar with the project to conclude matters relating to the work.
3. General Coordination ProceduresThe document emphasizes the need for
efficient and orderly installation of each part of the work, including coordination
of construction operations included in different sections of the specifications.
4. LEED CoordinationIt outlines the requirements for LEED coordination
conferences, including the topics to be discussed and the distribution of
minutes.
5. Coordination DrawingsThe document specifies the requirements for
coordination drawings, including the need to indicate functional and spatial
relationships of components of architectural, structural, civil, mechanical, and
electrical systems.
6. Requests for Information (RFIs)It details the requirements for submitting
RFIs, including the content of the RFI and the need for prompt coordination and
submission to avoid delays in the work.
7. Project CloseoutIt discusses the agenda for discussing items of significance
that could affect or delay project closeout, including the preparation of record
documents, procedures required prior to inspection for substantial completion,
and final inspection for acceptance.

Key Insights
 Coordination among contractors is essential to ensure efficient project
execution, emphasizing the need for clear communication and
scheduling.
 RFIs are critical for addressing uncertainties and must be submitted
promptly to avoid work delays.
 RFIs should include detailed descriptions of the information needed,
project identifiers, and any suggested resolutions, submitted promptly
to minimize delays in the construction schedule.
 The project website serves as a centralized platform for project
documentation and communication, streamlining information sharing.
 The project website acts as a hub for project communication, hosting
essential documents, meeting minutes, schedules, and facilitating
collaboration among all parties involved.
  Regular project meetings, including preconstruction and progress
meetings, are vital for maintaining project timelines and addressing
issues collaboratively.
 Regular meetings ensure that all stakeholders are aligned on project
progress, address any challenges, and revise schedules as necessary
to maintain momentum toward project completion.
 Conservation of resources, including energy and materials, is a priority
during construction activities, highlighting the project’s commitment
to sustainability.
 Coordination drawings help visualize and resolve conflicts between
different systems and components before installation, ensuring that
all elements fit together properly.
2. **General Administrative Provisions**: It outlines essential procedures for
coordinating construction operations, including the management of Requests for
Information (RFIs), project meetings, and website maintenance [Page no.11].
3. **Contractor Responsibilities**: Contractors are required to actively participate in
coordinating various construction activities to ensure effective management [Page
no.11].
4. **Requests for Information (RFIs)**: The document specifies that RFIs should be
submitted with certain details including project name, number, date, and suggested
resolutions [Page no.5].
5. **Coordination Meetings**: Weekly project coordination meetings are to be held to
review progress, discuss schedule updates, and address any interface requirements or
conflicts [Page no.12].
6. **Schedule Management**: The combined Contractor's construction schedule is to
be reviewed at each meeting to determine if activities are on track and to secure
commitments from involved parties to expedite any delayed work [Page no.11].
7. **Documentation**: Meeting minutes must be recorded and distributed to all
parties present and other relevant stakeholders following each meeting [Page no.11].
8. **Quality and Standards**: The document emphasizes the importance of adhering
to quality and work standards throughout the project [Page no.12].
CONSTRUCTION OPERATION
Construction operations include:
 Constructing, altering, repairing, extending or demolishing:
 buildings or structures
 or
 works that are part of the land.
 Installing, altering or repairing:
 security
 electrical
  heating
 air conditioning
 soundproofing
 ventilation
 drainage
 sanitation
 water supply systems
 and
 telecommunications systems.
 Cleaning buildings internally and externally in the course of their
construction, alteration or repair (not including normal maintenance).
 Works which are an essential part of, are in preparation for or are
completing other construction work. This includes:
 site-clearing
 earth-moving
 excavating
 tunnelling
 boring
 laying foundations
 erecting scaffolding
 site restoration
 landscaping
 and
 providing roadways and other access works.
 Works that form an essential part of, are in preparation for, or
complete works such as drilling for minerals, oil, natural gas or other
natural resources.
 Transporting someone else's materials or machinery for use in any of
the activities listed above (known as ‘haulage for hire’).

SAFETY MANAGEMENT

a) “Accredited organization” means any organization duly accredited by the

Department of Labor and Employment (DOLE) delegated or authorized to
perform functions related to improvement of occupational safety and health in
 the form of training, testing, certification, safety and health auditing or any other
similar activity.

b) “Certified first-aider” means any person trained and duly certified or qualified
to administer first-aid by the Philippine National Red Cross or by any
organization accredited by the same.

c) “Construction project manager/consultant” means a person or entity who is

hired by the project owner, to act in the owner’s behalf concerning supervision
and monitoring of all matters related to the overall execution of a construction
project.
d) “Construction safety and health committee” means the general safety and
health committee for a construction project site that shall be the overall
coordinator in implementing OSH programs.

e) “Construction safety and health officer” means any employee/worker

trained and, in addition to their regular duties and responsibilities, tasked by his
employer to implement occupational safety and health programs in accordance
with the provisions of the Occupational Safety and Health Standards (OSHS).
f) “Construction safety and health program” refers to a set of detailed rules to
cover the processes and practices that shall be utilized in a specific construction
project site in conformity with the OSHS including the personnel responsible and
the penalties for violations thereof.

g) “Construction safety signage” refers to any, but not limited to, emergency or
danger sign, warning sign or safety instruction, of standard colors and sizes in
accordance with the specifications for standard colors of signs for safety
instructions and warnings in building premises as described in Table II of the
OSHS.

h) “Constructor” is deemed synonymous with the term “builder”. It refers to any

person or organization who undertakes or offers to undertake or purports to have
the capacity to undertake or submits a bid to, or does himself or by or through
others, construct, alter, repair, add to, subtract from, improve, move, wreck or
demolish any building, highway, road, railroad, excavation or other structure,
project, development or improvement, or to do any part thereof, including the
erection of scaffolding or other structures or works in connection therewith. The
term constructor includes subcontractor and specialty contractor.

i) “Emergency health provider” means any person or organization who is

certified or recognized by the Department of Health and who can provide the
same or equivalent emergency health services as an emergency hospital,

j) “General constructor” means a constructor who has general supervision over

other constructors in the execution of the project and who directly receives
instructions from the owner or construction project manager (if one is appointed
by the owner).

k) “General safety and health inspection” refers to inspection of the work

environment, including the location and operation of machinery other than those
covered by technical safety inspections

l) “Heavy equipment” refers to any machine with engine or electric motor as

prime mover used either for lifting, excavating, leveling, drilling, compacting,
transporting and breaking works in the construction site

m) “Imminent danger” means a condition or practice that could reasonably be

expected to cause death or serious physical harm before abatement under the
normal enforcement procedures can be accomplished.

2
n) “Occupational health personnel” refers to a qualified first-aider, nurse,
dentist, or physician, engaged by the employer to provide occupational health
services in the establishment/undertaking.

o) “Project manager” means the overall technical personnel of the general

contractor and/or the subcontractor in charge of the actual execution of a
construction project.

p) “Resident engineer” means a duly licensed engineer who shall be tasked to be

present at the construction site at all times, whenever work is being undertaken,

q) “Safety and health audit” refers to a regular and critical examination of

project sites, safety programs, records and management performance on
program standards on safety and health.

r) “Safety and health committee” means a group tasked with the authority to
monitor, inspect, and investigate all aspects of the construction project
pertaining to health and safety of construction workers.

s) “Safety organization” means any organization recognized and accredited by

the DOLE to conduct occupational safety and health training and/or safety and
health audit.

t) “Safety personnel” refers to any person engaged by any constructor, trained,

accredited by DOLE and tasked to provide occupational safety and health
services for the workers/employees in any construction project.

u) “Skills standards” refers to the written specification of the minimum stock

knowledge and skills a worker should possess to perform the functions identified
in the job description of his occupation.

v) “Technical safety inspection” refers to inspection for the purpose of safety

determination of boilers, pressure vessels, internal combustion engines,
electrical installations, elevators, hoisting equipment and other mechanical
equipment.

w) “Trade test” refers to an instrument used to measure workers’ skills and

knowledge based on the requirements of the skills.

x) “Treatment Room” refers to any enclosed area or room equipped with the
necessary medical facilities and supplies and located within the premises of the
establishment where workers maybe brought for examination and treatment of
their injuries or illnesses in cases of emergency.

y) “Tool box meeting or gang meeting” refers to daily meeting among workers
and their respective supervisors for the purpose of instruction, discussion and
proper briefing on

3
planned work, the assessment of past work, the possibility or actual occurrence of
accidents at the site, tips and suggestions on how to prevent possible accidents and
other related matters.

z) “Unguarded surface” refers to any working surface above water or ground,

temporary or permanent floor platform, scaffold construction or wherever
workers are exposed to the possibility of falls hazardous to life or limb.

Section 2. Jurisdiction The DOLE, through the Secretary of Labor and Employment,
has the exclusive jurisdiction in the preparation of Occupational Safety and Health
Standards (OSHS) for the Construction Industry including its very enforcement

Section 3. Delegation of Authority and Accreditation The authority to enforce

mandatory occupational safety and health standards in the construction industry
may be delegated in part by the Secretary of Labor and Employment

Section 4. Coverage This issuance shall apply to all operations and undertakings in
the construction industry and its subdivisions, namely, general building
construction, general engineering construction and specialty trade construction,
based on the classification code of the Philippine Construction Accreditation Board
(PCAB) of the Construction Industry Authority of the Philippines (CIAP)

https://oshc.dole.gov.ph/wp-content/uploads/2020/03/DO_13.pdf

POST CONSTRUCTION