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O as controversial
Contract permit S.O to delegate power to rep but in same time S.O can still act on the same matter in
parallel/ If contractor is unhappy with the rep decision, contractor can complain to S.O who can
reverse and change his rep decision/ there can cause misunderstand and uncertainties for all
concerned
NSC- any case must follow NSC agreement(sub con agreement)
1.NSC argument is not acceptable/ 2. Nsc is bound by contract once he signed the contract regarding
of the tender length or even the signees are illiterate, etc
Cluase 2.1 Subcontractor obligation- 2.1 sub contractor shall carry out and complete the works
accordance with contract document But
Clause 5.2. If any sub contractor find any discrepancy in between any of sub contract document
issued by contracot and architect. He should written notice in sufficient time before commencement
of construction of affected works.
Contractor strong protest employer due to late rejection of his EOT claim
Preserve right to claim constructor obligated to serve written notice of any potential claim/ notice
should be served within the time limit stipulated in the conflict to ensure claim remain open.
Appointed NSC for highway however there is discrepancy between main and sub contract.
Take note that relation between NSC and the main contractor is through sub contract agreement/
Therefore, NSC should follow the sub contract provision
SUB contractor: Domestic sub- Hired by main contractor through sub-contract part of the work/main
contractor are responsible for the work of sub contractor/ Named sub-contract- client provide list of
potential sub-contraactor for the main contract to select and hire/ when the main contract hired the
sub contract,it automantically become a domestic sub contract/ Nominated sub- client select and
hired a sub contractor for particular work,and imposed on main contractor once it is appointed/ this
allow clien to separate negotiation with sub contractor for particular work
As a contracctor, if some delay happen what he should do?
Highlight matter to S.O to get written approval of EOT. If not approval it will given certificate of non
completion and subject to LD. If CNC not given so no need penalty for LD.
EOT: Clause 23.8 Relevant Clauses (a) “Force Majeure”; (b) exceptionally inclement weather; (c)
damages resulting to insurance claim relevant to Clause 20.A, 20.B, or 20.C {not Contractor’s default};
(e) not having received in due time necessary AI, etc… (i) specifically applied in writing “in sufficient
time”, (ii) not due to Contractor’s or NSC’s default Clause (f) delay by Employer in giving possession of
Site or any section, in accordance with Clause 21.1 and 21.2; (g) compliance with AI under Clauses 1.4,
11.2 & 21.4; - 1.4 discrepancies in Contract Documents; - 11.2 instructions requiring a Variation;
(h) delay on the part of NSC for reasons as per Clauses 21.4(a) to 21.4(w);- NSC entitle to EOT only if
sub-contract works was affected by such reasons and follow procedures (i) re-nomination of NSC as
set out in Clause 27.11; (j) delay on the part of craftsmen, etc. employed by the Employer to execute
works not forming part of Contract or failure to execute such works; (k) delay or failure in the supply
of materials and goods which the Employer had agreed to supply;
**Contractor proceed with work with claim that architect issue a verbal instruction but after work
the architect denied, as project manager what is the advice.
1. Try to verify verbal instruction with architect
2. Arrange negotiation between architect and contractor to discuss for complete works
3. Look significant work, verify the acceptance of architect in terms of quality and cost of additional
works
4. Negotiate claim of additional work with contractor
Wihout cnc, LD did not start. Given case study(if the work delay but no CNC, is the architect justify to
charge LD to contractor)
LD will not start without CNC, architect must be firm saying work is not complete with the certificate
Architect wan to issue cpc, but as a project manager realise there is major defects. What is advice?
Don issue CPC, make sure contractor finish repair. Major repair before cpc, after CPC is minor repair.
Clause 25 Contractor default: if without reasonable cause, fails to commence the Works in
accordance with the Contract; 25.1 Defaults by Contractor (b) if without reasonable cause, “wholly or
substantially” suspends the Works before completion; (c) if he fails to proceed regularly and/or
diligently with the Works;(d) if he persistently refuses or neglect to comply with an AI; 25.2 Procedure
for determination - Employer or Architect will issue on behalf as per 25.2 specifying which grounds
under 25.1. - if Contractor shall continue the default for another 14 days from receipt of the notice,
the Employer may within 10 days from the expiry of the notice, determine the employment by a
further written notice 25.4 Rights and duties of Employer and Contractor a) upon determination, the
contractor shall vacate the site and return possession whereby the Employer may employ other
Person to complete the Works including rectification of defects.
Clause 24 25 define and explain
-under clause 5 of pwd allowed so to issue variation to contrator(not the big decision-over budget, big
variation order and etc.)
Variation: S.O. may issue instructions requiring a Variation in a form of a Variation Order. No
variation required by the S.O. shall vitiate this Contract. Upon the issuance of such Variation Order,
the Contractor shall forthwith comply with the Variation Order issued by the S.O.
The term ‘Variation’ means a change in the Contract Document which necessitates the alteration or
modification of the design, quality or quantity of the Works as described by or referred to therein and
affects the Contract Sum, including:
the addition, omission or substitution of any work;/ the alteration of the kind or standard of any of
the materials, goods to be used in the Works; or/ the removal from the Site of any work executed or
materials or goods brought thereon by the Contractor for the purposes of the Works other than work,
materials or goods which are not in accordance with this Contract.
All variations instructed in writing by the S.O. in accordance with clause 24 hereof shall be measured
and valued by the S.O. The valuation of Variations, unless previously or otherwise agreed, shall be
made in accordance with the following rules 25 A, B, C.
Clause 5 All instructions issued by the S.O. shall be in writing. The Contractor shall forthwith comply
with all instructions issued to him by the S.O. If such instruction is given orally, the S.O. shall then
issue a written instruction within seven (7) days from the date of such oral instruction is given.
If any contractor not undeerstand term of contract, due to that the project will delay. As a project
manager what u should say/do to contractor. Is this justify?
Position of nsc very clear- cannot complain did not understtand the term- time not enough, ld too
high, contract not clear, if sign cannot complain. If not clear must complain before sign, if late LD, if
not finish CNC. Clear on this
How to avoid dispute conflict in project as a project manager, what are the steps.
Project manager responsible: 1. The cost of the project must be completed at a cost that does not
exceed the budget. 2. Quality, product or output of the project must meet the required specifications
and criteria. 3. The time, the project must be done in accordance with the period and the end date
specified.
Avoid conflict: 1. Force: Impose one's views at the expense of the strength of another. 2. Smoothing:
Minimize the differences and emphasize togetherness to issues of conflict. 3. Withdrawing:
Withdrawing from the real contradictions and conflict situations. 4. Compromise: Consider the
various issues, bargaining, and look for ways of settlement or that bring satisfaction to the parties
involved in the conflict. 5. Problem solving: combining multiple the views and from several different
perspectives
In the construction industry, since differences in perceptions among the participants of the projects,
conflicts are inevitable. If conflicts are not well managed, they are quickly turn into disputes. Disputes
are one of the main factors which prevent the successfully completion of the construction project.
Methods: 1. Completion by both parties in the form of consultation and negotiation 2. Third parties,
namely: a. Mediation appointed by the parties or alternative dispute resolution institutions. b.
Conciliation. c. Arbitration institutions
Responsiblity of parties
Employer/client- In relation to the contracts of appointment of the professional consultants, this
party is commonly referred to as the “client”.
Contractor- A main building contractor is engaged by the employer to carry out and complete the
works. This contractor will usually, in turn, engage subcontractors to carry out and complete separate
parts of the works. Contactors may also take responsibility for the design of all or part of the works
they are to execute depending on the procurement method and/or contract used.
Contract administration: There is variety of types of contracts used in civil engineering projects. Each
type has its specific characteristics. Contracts may be prepared under the heading of one type but
could include characteristics of more than a single type. Many professional societies and government
agencies have done a great deal toward the standardization of construction contracts such that the
general form and content are well established for the various types of construction that may arise.