TABLE 4: CONSTRUCTION PHASE PROJECT MANAGEMENT CHECKLIST

1 Assemble the Owner’s construction project management team during the tendering phase, so they can begin to familiarize themselves with the demands of the project. Perform a constructability review.

2 Establish clear lines of authority and responsibility within the Owner for various construction phase functions (e.g.: technical/design functions;

financial and accounting functions; contract interpretation and administration; and legal functions).

3 Develop a plan for efficiently handling the following typical items of Contractor requests and submissions:

a. Request for information (RFI’s): these are routine requests which the Contractor makes to clarify requirements contained within the drawings and specifications—typically of a technical nature.

b. Technical submittal: in most cases, the specifications will require that the Contractor submit product data, catalog information, calculations, samples and shop drawings of individual equipment items and systems for approval by the Engineer. The Owner’s construction project management team is responsible for providing a timely review and approval or rejection of the submittals.

c. Variation/notice of variation/proposal for extra cost: when the Owner or its authorized representative requests (orally or in writing) that the Contractor perform work that is a modification or change to the Works, the Contractor may submit a notice of variation and/or a written proposal advising the Owner of the extra costs to be anticipated as a result of the change.

d. Critical path method (CPM) or other form of scheduling information: the Owner must insist that the Contractor submit a detailed plan for performing the work, so that the Owner can monitor the Contractor’s performance against an approved “baseline” schedule. Usually, the specification allows for the Owner to review and comment upon the proposed plan prior to its approval for use as the baseline.

e. Schedule update: the Contractor must update the schedule periodically (usually once every month). This updated schedule is provided to the Owner for approval. Any changes in the sequencing or number of activities in the schedule must be addressed by the Owner in an expedited fashion.

f. Material test results: test results will frequently be provided by an independent materials testing agency hired by the Contractor. The Owner’s representatives must be in the position to monitor the Contractor’s compliance with the testing requirements of the Contract and immediately review all test results to determine if the materials used for construction meet the minimum demands of the specifications.

g. Payment requisitions/certificate: to facilitate periodic (usually monthly) payment of the Contractor, the Contractor will present a monthly statement of work completed and materials on site. The Engineer will verify and prepare a payment certificate for 90% of completed works and 75% of materials on site, or on such other basis as may be determined according to terms of Contract. UAE national contractors are exempt from retention if a bank guarantee is provided. Payment is required within 45 days of issuance of payment certificate by Engineer.

h. Request for deviation: in some cases, the Contractor will request that a

expedite the work or prevent delays.

i. Request for time extension: should the Contractor’s progress fall behind the plan established in the approved baseline schedule, the Contractor may request a time extension to avoid delay penalties. The Owner’s representatives must have the ability to quickly analyze such requests to determine if the time extension is justified, analyze the period of extension to be granted.

j. Claim correspondence: from time-to-time, the Contractor may claim that the Owner or its representatives have improperly administered the Contract. In such situations, the Owner must scrupulously follow the dispute provisions of the contract and attempt to resolve quickly any differences of interpretation in order to avoid an adversarial relationship with the Contractor.

4 Study the Contract—become familiar not only with the technical specifications of the project, but also with the requirements of the Agreement, the General and Special Conditions, Amendments to Tender Documents, etc. In particular, note the following:

a. The notice requirements for requesting variations in the work and any additional compensation.

b. The notice requirements by which the Contractor must request an extension of time for unforeseeable delays or other circumstances.

c. The notice requirements for making any claims by or against the Owner.

d. The notice requirements and specific procedures for terminating the contract, either due to the default of the Contractor or for the convenience of the Owner.

e. All phasing requirements, interim milestones, and related delay penalty provisions.

f. All submittal requirements and times within which submittals are due from the Contractor and its suppliers.

g. Payment, bonding, guarantee, and other articles relating to the financial responsibilities of both the Owner and Contractor.

h. Responsibilities of the Engineer.

i. CPM or other scheduling specifications.

j. The timing requirements for providing all pieces of Owner-furnished equipment and materials.

5 Understand the contractual relationships of the parties involved and the risks assumed.

6 Utilize standard form RFI Logs, Variation Logs, Proposal Logs, Material Testing Logs, Correspondence Logs, and other documents which summarize events of a recurring nature.

7 Recognize the importance of scheduling—make a commitment to use CPM or other scheduling tools, as appropriate, and make them work successfully by:

a. Reviewing and approving (or rejecting) Contractor prepared schedules and updates on a timely basis.

b. Attending joint meetings to resolve technical differences.

c. Updating the schedules at least monthly in joint sessions.

d. Maintaining accurate records on file of each update including network diagrams, computer generated reports, and electronic records.

e. Maintaining a ledger of all Contract time extensions requested, approved,

pending or denied (either partially or totally).

8 Keep senior management and legal counsel informed of any breach of the contract or anticipatory breach requiring early intervention.

9 Monitor the Contractor’s daily workforce and compare actual labor utilization with planned labor utilization.

10 Monitor the Contractor’s productivity at various stages and compare actual productivity with planned productivity.

11 Interview worker’s periodically at the project site to determine if the Contractor is conforming to any labor hour requirements of the Contract and/or to any applicable labor laws.

12 Prepare interim reports of deficiencies and omissions in the work and obtain the Contractor’s commitment to correct same immediately without waiting to the end of the project.

13 Keep accurate and detailed records of events in the field—establish regular meeting times to discuss progress, negotiate variations, and resolve problems.

14 Maintain detailed safety records of job related injuries—be proactive about job safety to eliminate the possibility of serious injuries to persons and property.

The items contained in Table 4 above reflect basic project management objectives, including the monitoring of time, costs and compliance with the Contract. By pursuing these objectives, the Owner also will be able to anticipate and mitigate disputes and delays. Three important components of project management useful in achieving these objectives are:

(1) schedule control;

(2) cost control; and (3) document control.

Schedule Control

The construction schedule is an effective project management tool for monitoring current activities and for anticipating future events which may impact work progress. The Contractor should be required to develop a project network schedule showing in detail and in an orderly sequence all activities, both on and off-site, necessary for timely completion of the work.

In addition, the Contractor should develop a manpower schedule for each section of the work showing labor resources expected/required over the duration of the Contract and a plant schedule detailing the plant requirements needed to achieve the durations established in the construction schedule.

The value of a schedule will be dependent on the effort expended in its preparation and use as a management tool by both the Engineer and the Contractor. Optimization of the schedule as a management tool requires that it must be constantly updated and kept current. Such schedule maintenance is a joint responsibility of the Contractor and the Engineer.

Pursuant to Contract requirements, the contractor is required to submit to the Owner a detailed schedule for the phases of the construction of the works. This submittal is to be made within two (2) weeks of the signing of the Contract. Wherever possible and according to the project needs, the Contractor’s schedule should utilize the Critical Path Method (CPM), consisting of a network of activities, with estimated durations, times for completion and depicting the sequence and relationships of activities.

The sequence of activities comprising the longest path through the schedule will be the “critical path” for the project and should be consistent with the overall Contract duration as agreed by the Contractor and the Owner.

The Owner should approve the Contractor’s schedule only if it conforms with the overall Contract duration and presents a reasonable plan for accomplishing the Works. In accordance with paragraph 2 of Article 17, the approved schedule may not be amended unless by written consent of the Owner. The approved schedule is to be used by the parties to monitor the Contractor’s progress and to measure any delays to the Works.

As noted above, the approved schedule must be reviewed and updated regularly so that it reflects the actual work completed. Schedule updates should be accomplished at least on a monthly basis. The Owner may require more frequent updates if the nature of the project warrants.