1 CPM - Note
1 CPM - Note
1 CPM - Note
Course content
1. Pre-Bid Activities:
1.1 Concept and Introduction
1.2 Pre-bid Activities of Owner or the client: from conceiving of the project to receiving the
bids from the bidders
1.3 Pre-bid Activities of a consultant: for offering services to the owner for organizing
consultant to receive bids from contractors- from the date of consultant agreement to date
of receiving contractors bids
1.4 Pre-bid Activities of Contractors from date of tender notice to the date of submission of
bids
1.5 Proactive contactors
Project Concepts:-The concept of the project lifecycle is the first development stage undertaken
after determining the reasons and benefits for processed a project. This usually consists of a
study, where an Initial Project Definition is developed in outline, demonstrating that the project
is feasible, and identifying how the project should be structured in order to deliver the benefits
expected of it.
Following reasons for undertaking a Concept Study before implementing a project, it will:
Be the opportunity to consider all options for achieving the project's objectives.
Develop consistently, alternative scopes and options for the project before determining the
Best Value solution to proceed with.
Have only committed a relatively small amount of money to understand the project and its
chances of success, before committing larger sums of money associated with project
implementation.
Identify the most significant risks facing the project, should it proceed to implementation.
Test the identified project scope and definition against the reasons for undertaking the project.
Be the time of the project where most value can be added, through the creativity and
experience of those involved, where ideas can be considered and tested in a safe environment.
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Test the sponsor's level of commitment and enthusiasm to see the project through, when the
resulting conclusions and recommendations are presented.
Analysis of the geology of each of the areas will of interest and how they relate to potential mining
operations.
Raw materials resources of ample supply and quality must be identified by the initial geological survey.
The market study will determine the processing capacities and help in the analysis of the economic
viability of the projects.
The market analysis will determine the size of production plant which would be economical within the
area of influence.
Permits must be considered along with any limitations that are likely based on local regulations.
This will form the basis of the preliminary Environmental Impact Assessment (EIA).
Development of mining and processing plant concepts with corresponding will an Economic Analysis.
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Risk Analysis (outline of major risks and strategy)
The Conceptual Feasibility Study Report will provide a preliminary insight into the economic feasibility
of the project.
Extensive drilling and laboratory testing will be carried out as specified in the Conceptual Study
Deliverables which will determine probable reserves of raw materials.
1. Plant Site: The site location and plant layouts are finalized, Market Analysis and Further
definition is given to projected sales for the eventual production.
2. Technical Aspects: Raw material adequacy assessment and calculations, Process evaluation of
competing technologies and Project Design Criteria
3. Economic and Financial: Project (plants costs are developed from budgetary vendor
information)., Project (operating costs are developed from refined location and plant design
criteria)., Economic Analysis and Market trends and future growth potential analysis
4. Organizational: Assessment of support systems, Recommendations for functionality and
efficiency improvements
5. Environmental and Social: Environmental and regulatory compliance system development
Operating permit review (Federal, state and local agencies), Permits applications for all permits
are filed and Public Relations consultant finalizes the assessment of social issues and a program
to be implemented.
6. Engineering analysis: Plot Plan (defines the materials handling and process flow), Logistics
(access to and from the facility is further refined), Equipment (an equipment list specific to quarry
and plant is developed) and Block Flow Diagram (the graphical plant process is refined), Risk
Analysis (major risks are outlined) , Strategy (the overall plant strategy is developed with a view
to moving the project forward), Schedule (the Project Schedule is refined based on the changes
and developments of the pre-feasibility study), The Pre-Feasibility Study Report indicates if the
project looks promising and has an attractive payback. The quarry and plant sites are now known,
located in an area convenient in relation to the raw materials source and good logistics to the
market. It will point out areas that need to be further refined.
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The activities taking place during a Feasibility Study are as follows:
The engineer’s technical bid evaluation period will depend on the number of bidders. Typically there is a
period of clarification, checking and validation before the vendors are short-listed.
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Be brief when describing each objective. If you take an entire page to describe a single
objective, most people won’t read it. Even if they do read it, your objective probably won’t
be clear and may have multiple interpretations.
Don’t use technical jargon or acronyms. Each industry (such as pharmaceuticals,
telecommunications, finance, and insurance) has its own vocabulary, and so does each
company within that industry. Within companies, different departments (such as accounting,
legal, and information services) also have their own jargons. Because of this proliferation of
specialized languages, the same three-letter acronym (TLA) can have two or more meanings
in the same organization! To reduce the chances for misunderstandings, express your
objectives in language that people of all backgrounds and experiences are familiar with.
Make your objectives SMART, as follows:
Specific: Define your objectives clearly, in detail, with no room for misinterpretation.
Measurable: State the measures and performance specifications you’ll use to determine
whether you’ve met your objectives.
Aggressive: Set challenging objectives that encourage people to stretch beyond their
comfort zones.
Realistic: Set objectives the project team believes it can achieve.
Time sensitive: Include the date by which you’ll achieve the objectives.
Make your objectives controllable. Make sure that you and your team believe you can
influence the success of each objective. If you don’t believe you can, you may not commit
100 percent to achieving it (and most likely you won’t even try). In that case, it becomes a
wish, not an objective.
Identify all objectives. Time and resources are always scarce, so if you don’t specify an
objective, you won’t (and shouldn’t) work to achieve it.
Be sure drivers and supporters agree on your project’s objectives. When drivers buy
into your objectives, you feel confident that achieving the objectives constitutes true project
success. When supporters buy into your objectives, you have the greatest chance that people
will work their hardest to achieve them.
If drivers don’t agree with your objectives, revise them until they do agree. After all, your
drivers’ needs are the whole reason for your project! If supporters don’t buy into your
objectives, work with them to identify their concerns and develop approaches they think can
work.
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By communicating in a more structured fashion, you will ensure that the communications needs
of each stakeholder are properly met.
Of course, this plan does not negate the need to communicate informally on a project, or within a
department, as well. You will still need to talk to your team about how they are doing with their
assigned work, call managers and inform them of critical risks or issues, or schedule informal
meetings to report on progress. Whichever way you do it, whether it be formal or informal,
communicating properly can go a long way towards ensuring the success of your team
objectives.
The project team must provide timely and accurate information to all stakeholders.
Members of the project team prepare information in a variety of ways to meet the needs of
project stakeholders. Team members also receive feedback from these stakeholders.
Project Communication Management is the knowledge area that employs the processes
required to ensure timely and appropriate generation, collection, distribution, storage, retrieval
and ultimate disposition of project information.
Project Communication is the responsibility of everyone on the project team. The project
manager, however, is responsible to develop the Project Communication Management Plan with
the input from the task managers and Project Development Team (PDT).
A task manager responsible for a deliverable needs to know why the customer wants it,
what features they want, how long it will take, and how they want to receive it.
The task manager tells their customer exactly when to expect the deliverable. If that
deliverable is linked to a WBS element on the critical path, it is even more important that task
manager informs their internal customer when the deliverable will arrive. The recipient
functional manager must have their staff ready to start work immediately after it arrives.
The task manager must ensure that internal customers know about any changes in the
delivery date. This allows the recipient functional manager to schedule their resources
accordingly. The task manager follows up with the customer of each deliverable. The task is not
complete merely because the final product is delivered to the customer. The task manager
contacts the customer to confirm that the deliverable met his/her needs and expectations. The
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task manager should enter feedback that others might use in future projects into the lessons
learned database and into the Department’s guidance and training materials.
The owners take the responsibility in selecting the project team to execute successfully in time.
Managing risk is one of an owner’s most important functions in making any major project
successful. In general, the owner is initially responsible for all of the project risks, as it is usually
the owner’s decision to execute the project or not. (Of course, the owner may not have a
completely risk-free strategy, because not executing the project may entail risks to the successful
implementation of the owner’s mission or business plan.) The owner has the ultimate
responsibility for identifying, analyzing, mitigating, and controlling project risks, including
acceptance of the project risks, or modification, or termination of the project—all of which are
project risk management activities. This is true whether the project execution is managed directly
by the owner or by contractors under the owner’s supervision.
Effective risk management begins with risk assessment. There are two primary purposes for a
preproject risk assessment: (1) to decide whether to execute the project and accept the risks, or
terminate it as unacceptably risky and (2) to identify the highest-priority risk factors that should
receive the most attention by management.
One form of risk mitigation for the owner is to transfer some of the project risks by contract to
others, presumably at a mutually acceptable price. For example, under a cost-plus-fee contract,
the owner retains the cost risk; however, under a fixed-price contract, the owner seeks to transfer
the cost risk to the contractor. Whether the fixed-price or cost-plus-fee approach is more
beneficial to the owner depends on circumstances, such as whether the owner or the contractor is
better able to manage the risks.
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Whereas private owners can use common sense to procure services based upon an evaluation of
sources of greatest delivery of value, public owners, under political scrutiny, have been bound to
the presumed objectivity of selections based on lowest price, even if a realistic price could not be
determined. Such situations have led to unintended consequences, including poor service and
quality, excessive and expensive change orders, and litigation over disputes.
Adapting to political reality, known abuses, tight budgets, and increasing expectations on the part
of taxpayers for quality with integrity, the public owner has developed selection procedures
consciously intended to enhance the probability of value while guarding against unfairness and
abuse.
Crucial to QBS is the methodology and documentation the public owner uses to ensure
competition without consideration of price. An essential element is the use of a selection
committee, comprising a number of knowledgeable people of unquestioned integrity, to make the
evaluations. The selection committee is charged by the owner with fairly evaluating the
qualifications and, often, the ideas for project execution offered by competing firms.
Project appraisal is a early stage of the project cycle, and commences with the project inception
and finishes at project sanction. This phase cane be sub-divided into a pre-feasibility or
variability stage and pre-feasibility Appraisal is an important stage in the evaluation of any
project because at the early stage of a project it is possible to make changes that are relatively
cost-effective. It is important to consider alternative and identify and access risks at a time when
data are uncertain or unavailable.
Risk associated with project outcomes is usually handled using probability theory. This
can be factored into the discount rate (to have uncertainty increasing over time), but is usually
considered separately. Particular consideration is often given to risk aversion—the irrational
preference for avoiding loss over achieving gains. Expected return calculations does not account
for the detrimental effect of uncertainty.
Uncertainty in CBA (cost benefit Analysis) parameters (as opposed to risk of project
failure etc.) can be evaluated using a sensitivity analysis, which shows how results respond to
parameter changes. Alternatively a more formal risk analysis can be undertaken using Monte
Carlo simulations.
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interests of society. The intention to support human flourishing is the explicit, central design
objective of positive design. Five characteristics of positive design are proposed, all of which are
of relevance to organizing design processes that intend to result in designs that stimulate human
flourishing. In addition, some contemporary design approaches are discussed that focus on
quality of life, including nudge, capability approach, and experience design. Four important
research challenges are outlined to indicate directions for a research agenda.
Make the team clear about funding aspects and authority in handling the fund
Owner need to make the team clear about the funding aspect and authority in handling the fund
effectively. Financial management involves planning, controlling, implementing and monitoring fiscal
policies and activities, including accounting and auditing revenue, expenditure, assets and liabilities. It
embraces daily cash management as well as the formulation of short-, medium- and long-term financial
objectives, policies and strategies in support of the organization’s business. Financial management also
includes planning and controlling capital expenditure, managing assets, liaising with the treasury and
making decisions related to funding and performance.
Good financial management is critical to the success of any organisation, whatever its size and whether or
not it is in the public, private or voluntary sector. In the public sector, the rendering of accounts to public
scrutiny is key to accountable government. Financial records are produced in every area of financial
management. If these records not are well managed, the financial management function suffers.
Therefore, financial records management and records management are closely intertwined.
accountability
efficiency
ensuring resources are matched to objectives
economic stability.
This lesson examines these four areas of financial management. It then discusses changing approaches to
financial management, and it examines the relationship between financial management and records. It
concludes with a discussion of the senior management issues involved in financial records management
and emphasizes the importance of securing senior
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Put faith on his expert advisors
It's easy at the early honeymoon stage of a project to kind of assume that everyone's going to be engaging
in transactional negotiations at the start of a project in good faith and dealing fairly with each others.
Owner need to put faith on his expert advisors.
Preconstruction is the time for effective value engineering. It's not a good idea to wait
until all of the prices are in or until you're in trouble and running out of money because then
you're not doing value engineering. What you're doing is acting like a captain in a heavy sea,
throwing overboard his cargo. Value engineering must be done early, like planning. Once a
realistic program is developed, reduce it to writing and make it a contract document in all of the
relevant contracts so that everybody is operating from the same baseline, and you have
something that you can enforce.
Engineering Consultant does design, research and perform the investigation for new in
new technology. Basically it contributes in construction project Management aspect.
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Be responsible for his design, in case of professional negligence
In the English law of tort, professional negligence is a subset of the general rules on negligence
to cover the situation in which the defendant has represented him or herself as having more than
average skills and abilities. The usual rules rely on establishing that a duty of care is owed by the
defendant to the claimant, and that the defendant is in breach of that duty. The standard test of
breach is whether the defendant has matched the abilities of a reasonable person. But, by virtue
of the services they offer and supply, professional people hold themselves out as having more
than average abilities. This specialized set of rules determines the standards against which to
measure the legal quality of the services actually delivered by those who claim to be among the
best in their fields of expertise. So the every Professional needs to be responsible for his design,
in case of professional negligence.
To complete this initial analysis, the Resource Management and Planning assign staff to produce
site options, a conceptual cost estimate, and a timeline. At this stage, all parameters of the
program are typically not known. Therefore, it is expected that the cost and timeline will change
as the project evolves during the relatively long process that moves a project from a general idea
to design to construction. It would be unusual where all the facets of a project (program needs,
site conditions, utility requirements, construction market, etc.) are known at the concept stage. If
not, scope may need to be pared away as the project becomes more defined. In addition, the
timeline, which may include a projected occupancy date, or simply mark the number of months
necessary for each stage of the capital process, should also be interpreted as a rough first-cut,
susceptible to “creep” given all the variables associated with planning and building capital
projects.
Following confirmation of project feasibility, the client hires an executive architect and sub-
consultants to complete a Detailed Project Program (DPP) that more completely defines the
scope, cost and schedule of the project. As part of this multi-month exercise, the first budget (as
distinguished from a cost estimate) and schedule (no longer a timeline) are completed by the
architect and confirmed by an external cost estimator. The budget is formally called the Capital
Improvement Budget, or CIB, and is signed by the owner. Details of the building design are not
known at this stage, but the budget attempts to account for all major component costs associated
with the project, with some costs indicated as placeholder allocations that will change as the
process continues. The approval process at the end of the DPP phase and prior to the schematic
design phase depends on the source of funding (State or non-State; cash, gifts, debt, etc.) and the
cost threshold of the project. If financial commitments are not secure at this point, Project
Approval cannot go forward and the project is delayed.
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Once the executive architect is well into the design phase of the project, a second budget
and schedule is developed. If the scope and budget are not aligned with the approve scope and
budget, then a Value Engineering session will be held to reconcile them, hopefully without the
need for additional funding. This process of reconciliation (and, if necessary, additional
sessions) will take place several times prior to seeking bids for construction.
Once the working drawings are completed, the owner seeks bid proposals from contractors vying
to build the project. These bids are the first “hard” or real numbers that are associated with the
project. Regardless of the time, effort and expertise placed in estimating the cost of a project at
various stages of a project, it is the lowest responsible bid that ultimately determines the cost of
the project. The owner may be able to alter the project cost and scope at the margin by use of
additive and deductive program alternates when bidding, but putting that aside, the sponsoring
owner must be prepared to fund any unexpected cost increases if the bid is to be awarded and
construction started.
Before work starts, spell out the conditions your contractor has to meet and select one best
equipped to meet them. Health, safety and environment are three of these conditions. Identify
health, safety and environmental procedures associated with the job and include them in the
contractor’s specification.
When bids are received, check them against the specification to make sure that proper provision
has been made for controlling risks.
The following criteria need to examine properly before selecting any one as a contractor.
Experience
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• What are your Health, Safety and Environmental procedures?
• Do you plan on using any subcontractors?
• Will you provide a safety/environmental method statement for this job?
• What safety checks do you make on equipment and materials?
Supervision
• How do you plan to supervise the job?
• Who will be responsible for supervision on site?
• How are changes that arise during the job dealt with?
• How will you liaise with us?
• If you identify a problem, what action do you take concerning your staff or
subcontractors?
• Will you report incidents/accidents (including environmental) to us?
• Are you prepared to abide by our rules?
Insurance
Do you have the necessary Public and Employers liability insurance?
Contract documents
As civil engineering works are often complex, involving the contractor in many hundreds of
different operations using many different materials and manufactured items, including
employment of a wide variety of specialists, the documents defining the contract are complex
and comprehensive. The task of preparing them for tendering therefore warrants close attention
to detail and uniformity of approach, so as to achieve a coherent set of documents which forms
an unambiguous and manageable contract. A typical set of documents prepared for tendering will
include the following.
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Instructions to renderers
These tell the contractor where and when he must deliver his tender and what matters he must fill
in to provide information on guarantees, bond, proposed methods for construction, etc. The
instructions may also inform him of items which will be supplied by the employer, and sources
of materials he should use (e.g. source of filling for earthworks construction, etc.).
The general conditions of contract may comprise any of the ‘standard’ forms of contract. The
particular conditions adopted may contain amendments or additions that the employer wishes to
make to the standard conditions. Usually the standard conditions (which are available in printed
form) are not reproduced in the tender documents but they will be named by specific reference
and a schedule will show what changes have been made to them.
The specification
This describes in words the works required, the quality of materials and workmanship to be used,
and methods of testing to be adopted to ensure compliance. The specification usually starts with
a description of the works to be constructed, followed by all relevant data concerning the site,
access, past records of weather, etc. and availability of various services such as water supply,
electric power, etc.
These form an itemized list covering the works to be constructed, against each item of which the
tendered has to quote a price. A bill of quantities shows the number or quantity of each item and
its unit of measure, the rate per unit of quantity quoted by the tendered, and the consequent total
price for that item. These permits re-measure according to the actual quantity done under each
item. Some bills contain many hundreds of items, classified by trade or according to a standard
method of measurement; other bills contain a less number of items. A schedule of prices may
comprise a series of lump sums or it may call for rates only, but can list provisional quantities
which are estimated, that is, uncertain. They would be used, for instance, for a contract for
sinking boreholes, items being provided for boring in stages of depth, the total depth to which
any hole has to be sunk not being known in advance.
The tender sets out the formal wording which comprises the tenderer’s offer to undertake the
contract, the tenderer having to enter the sum price he offers. The appendices to tender will
contain other matters defining the contract terms and which the tenderer confirms he accepts in
making his offer, such as time for completion of the works, damages for failure to complete on
time, minimum amount of insurances, completion of bond, etc. There may be other matters
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concerning the basis of his offer he is required to supply, such as currency exchange rates (for
international contracts) or sources of materials.
These should provide as complete a picture as possible of all the works to be built. The more
complete the contract drawings are, the more accurately the contractor can price the work, and
the less likelihood there is that variations and extra payments will be necessary. However, it is
not necessary at tender stage to provide every detailed drawing that will ultimately be required
(such as all concrete reinforcement drawings) so long as the contract drawings provided to
renderers show quite clearly what is required.
On small jobs all the foregoing documents may be combined in one volume; but on most jobs at
least two and sometimes three or more volumes will be necessary. A tendered is usually sent a
second copy of the instructions to renderers, bill of quantities, tender and appendices, so that he
can keep one copy of what he has bid.
Feasibility studies do not involve 'design' as such. They are preliminary studies whose purpose is
to:
After assessing the feasibility studies, the client will decide which options the consultant team
should develop. Ideally there will be no more than four options at this stage. If more options
exist it may be necessary to carry out further high-level studies before proceeding to more
detailed analysis options appraisals.
Options appraisals are not designs, they are diagrammatic options studies that enable the client to
understand the broad pros and cons of the available options so that a preferred option can be
selected.
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The CDM co-coordinator (if appointed at this stage) can assess the risks of the options in
relation to the CDM regulations.
The architect can co-ordinate consultations with the local authority and other statutory
authorities, and assesses possible planning permission requirements and other statutory
requirements (such as the need for an environmental impact assessment for the options).
The cost consultant can prepare initial cost appraisals of the options.
Preparing appraisals for these options may require further site surveys or site information. It may
also be necessary to commission additional advice, such as planning advice, expertise on rights
of light, engineering advice, or other specialist services depending on the complexity of the
project. The need to commission other consultants will often be determined by the scale and
location of a development and also by the client’s familiarity with the site and the local area. A
large-scale development with underground constraints will almost certainly require engineering
expertise in the early stages, whereas a residence in a traditional street may not. Both however
may require an understanding of local authority or other statutory consultee positions.
The lead consultant can then co-ordinate the preparation of a draft options review report, from
which the client can either select a preferred option or instruct the development of further options
or appraisals.
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At this stage the client’s brief is likely to expand, partly from the conclusions of feasibility
appraisals but also from knowledge gained by research into planning precedents, legal issues,
engineering data and the technical constraints and nature of the project.
Once a preferred option has been selected, the consultant team may carry out further assessments
to assist the client in preparing a business case and project execution plan for the preferred option
before concept design begins.
Engineering Consultants is a registered professional form, has worked on the design and
development of improved project processes and equipment, which are subsequently patented. It
is also an environmental consultant specializing in the design of waste water treatment facilities,
and his client is impressed with the new processes and equipment. However, Engineer should not
dislikes specifying sole source and, in fact, makes a point of encouraging competition by
preparing open specifications with "or equal" clauses or by specifying a performance
requirement. The primary, work of every consultant or export is to impress the client, obtain faith
and be faithful on his job. It is not only behave but also the ethic of any one engineer consultancy
or firm.
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It describes an experiment to measure the ability of buyers to acquire new product information
describing complex service product from material written in the style of a sales brochure. The
aspect shows that measurements of product knowledge should be separated into two types of
knowledge: declarative and procedural. The results of the research indicate that people with low
levels of prior product knowledge acquired more new knowledge than people with higher levels
of prior product knowledge, while people acquired an equal amount of new product declarative
and procedural knowledge in percentage terms. A model is developed for the buyer’s acquisition
of new product knowledge.
Contract administrator: The contract administrator assists the project manager as well as the
superintendent with the details of the construction contract.
Field engineer: A field engineer is considered an entry-level position and is responsible for
paperwork.
During the pre-construction stage, a site investigation must take place. A site investigation takes
place to discover if any steps need to be implemented on the job site. This is in order to get the
site ready before the actual construction begins. This also includes any unforeseen conditions
such as historical artifacts or environment problems. A soil test must be done to determine if the
soil is in good condition to be built upon.
Some of the works to be carried out by the contractor before the tender submissions are
the carefully study of the Tender Document, visit to the Proposed Project sites, identify possible
sources of Manpower, procurement of construction Materials etc. details of the pre-tender
planning are presented below in table
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1 Study of tender documents
2 Investigate availability of materials, labor, machine and other facilities like-
maintenance, servicing, testing etc
3 Decide method of execution – labor or equipment
4 Decide amount of loading in the bids
5 Prepare responsive bid
6 Contract planning
7 Study method of construction/ constructability
8 Verify/workout quantities and compare cost from different sources
9 Workout requirements and placement of construction labor and other staff
10 Requirement of machine and equipment, maintenance and servicing
11 Planning for camp facilities, access, accommodations, drinking water,
electricity, phone etc. and/or for health, environment and safety hazards.
12 Study of interdependence of different items of work – sequence.
13 Finalize work program after obtaining all required pre-information for
planning.
14 Set appropriate date of project commissioning and handover to the client.
15 Proper study of tender documents
16 Site visit and verification
17 Unit price and balance loading
18 Attend pre-tender meeting
19 Inform the client/consultant any discrepancies in the design, BOQ and
investigation reports
20 Submit a responsive tender
21 Proper assessment of self-capability
22 Submit a responsive tender
Before going to bid contractors need to properly study the tender documents. The project
conditions determine the ability of contractor perform the work and achieve the profit target. The
project conditions include such as project size, type, location, duration, profit made in similar
projects in the past and the terms of payment.
The risks due to macro environment include the economic conditions, the availability of
resources and laws and government regulations in construction. The economic conditions mean
the inflation and the monetary and fiscal policies. The availability of resources includes the
resources such as qualified labor, materials and plants. The laws and regulations are include the
policies regarding licenses, permits, tax and the minimum wage rate; the requirements on dispute
and claim.
Lastly contractor need to bid or not to bid depends on following factor of his
organization.
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Bidders are encouraged to submit their respective Bids after visiting the Project site and
ascertaining for themselves the site conditions, traffic, location, surroundings, climate,
availability of power, water and other utilities for construction, access to site, handling and
storage of materials, weather data, applicable laws and regulations, and any other matter
considered relevant by them.
The Contractor, is an organization or an individual that contracts with another organization or an
individual (the owner/client/employer) for the construction of a building, highway, Irrigation canal and
structures and hydropower Structures or any other physical infrastructures and facilities as well. The
general contractor is a manager, and possibly a tradesman, employed by the employer on the advice of
the architect or the engineer or the client him/herself if acting as the manager.
During the period Nepalese contractors have been able to develop their management skill, improve
working capacity, financial and technical capabilities, and acquired suitable Plant and construction
equipments. As a result they have been able to compete and participate in mega construction project
within and outside the country.
The role of general contractors is for the overall coordination of the project implementation. A
general contractor must first assess the project-specific documents (referred to as Bid, BoQ, proposal or
tender documents). Prior to biding for any construction works the contractor needs to do a site visit for
understanding of the proposed project and then assessment of the accurate job requirement and cost
estimation.
Depending on the project delivery method, the contractor will submit a fixed price proposal or bid,
cost plus price or an estimate. The general contractor considers the cost of home office overhead,
manpower, general conditions, materials and equipment as well as the cost of labor to provide the
employer with a price for the construction of the proposed project.
The Contractor is responsible for providing all of the material, labor, Plant, equipment and tools and
services necessary for the quality construction of projects in time. The general contractor can hire
specialized subcontractors to perform all or portions of the construction work, if required.
Responsibilities may include applying for building permits, securing the property, providing
temporary utilities on site, Procurement of materials and services, managing personnel on site, providing
site surveying and engineering, disposing or recycling of construction waste, monitoring work schedules
and cash flows, and maintaining accurate records and handover the project to the employer in stipulated
time. Implementing and monitoring of the health, safety and environmental protection measures. For the
successfully completion of roles and responsibility the contractor have to seriously follow the contract
Management.
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single event that might occur in the future. Proactive Contracting is moving away from the path
of responding to these complex relationships with complex contracts. However, as it is hard to
imagine realistic alternatives to contracts, Proactive Contracting suggests businesses to change
perception of contracts to meet the needs of the future. Add to this the increased complexity of
products due to technological evolution and it becomes clear that businesses need to actively deal
with the danger of increasing complexity and uncertainty. In fact, a survey conducted by IBM
Corporation revealed that 79% of Chief Executive Officers (CEOs) see increased global
complexity as a major challenge over the coming years. As the legal framework increases in
complexity, it becomes apparent that there is a need for creating certainty in order to support
future trading. Businesses need to manage this complexity in order to avoid unnecessary losses,
but also in order to exploit all the possibilities deriving from interaction. Empirical studies on
contracting capabilities and research on dynamic capabilities, have shown that promoting
proactive behavior in businesses is a key in the quest of future success. As globalization
increases, sustainability and certainty become more urgent, resulting in decentralization of the
traditional legal environment. The reason for this decentralization is that the traditional legal
environment does not fulfill the task of creating the certainty and sustainability that businesses
need in order to prosper. After the launch of the United Nations Decade of Education for
Sustainable Development, mechanisms have evolved through which future development is
achieved. According to these mechanisms, a sound development must be focusing on ethically
acceptable, morally fair and economically sound processes. Management tools for global value
chains have already been developed, and focus is especially on self- and private regulation
instruments and standards - this is where proactive contracting and proactive law is coming to
the fore.
Smith, N. J.(2003), Appraisal Risk and uncertainty, Thomas Telford Ltd. Heron Quay London E14 4JD,
http://www.thommastelford.com
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