About SCL's Delay and Disruption Protocol", episode 4
Program and Records.
This episode briefs about some contents of “Programme and
records” from SCL's D & D Guidance Part B- Guidance on Core Principles which are
interesting and may not be familiar or overlooked by some practitioners.
SCL encourages consistent provision of systematic programme
and records on every steps of construction in every detail. The records should be
kept with a system that is easy to find for reference on negotiation between the
parties when a claim arises from delay and disruption. The parties should agree
to allocate some project budget for this purpose (such as an allowance for a provision
of the same Critical Path Network programming software, and the Document
Management System for all parties). It will be worthwhile to help addressing
any issues for quick agreement and avoiding later disputes with time consuming
and costly resolution which is not good for any party.
SCL provides good practice guidelines on program management and records keeping with principles and reasons as detailed in the Delay & Disruption Protocol. It is believed that there are many contractors in the country like Thailand who may not understand the principles and reasons deeply enough so they overlook the importance of controlling these document solidly. In particular, a submission of a programme by just making a sheet with some bar charts is enough and they do not even think about updating of programme movement at all after first submission. There is a teasing in the local construction industry for the word “Planning” that it means a "Plan that stands still" as the word “Ning” in Thai means “un-moving”. They might not know that in the international construction industry, the plan was recorded and updated with its actual programme’s movement progressively step by step. The up-to-date programme submission on a regular basis requires approval to form part of progress reports and agreed plan revisions between the parties. These documents can be used as good evidences in the court for any construction lawsuit.
Recording and keeping evidence of events must be performed at all stages of the work, both on-site works and off-site fabrication, for any design changes or other variation orders. This includes procurement of equipment, subcontractor as well as all approvals and testing results that need to be kept at least until the end of the Defect Liability Period with no further disputes yet to be settled.
Types of records.
SCL provides good practice guidelines on program management and records keeping with principles and reasons as detailed in the Delay & Disruption Protocol. It is believed that there are many contractors in the country like Thailand who may not understand the principles and reasons deeply enough so they overlook the importance of controlling these document solidly. In particular, a submission of a programme by just making a sheet with some bar charts is enough and they do not even think about updating of programme movement at all after first submission. There is a teasing in the local construction industry for the word “Planning” that it means a "Plan that stands still" as the word “Ning” in Thai means “un-moving”. They might not know that in the international construction industry, the plan was recorded and updated with its actual programme’s movement progressively step by step. The up-to-date programme submission on a regular basis requires approval to form part of progress reports and agreed plan revisions between the parties. These documents can be used as good evidences in the court for any construction lawsuit.
Recording and keeping evidence of events must be performed at all stages of the work, both on-site works and off-site fabrication, for any design changes or other variation orders. This includes procurement of equipment, subcontractor as well as all approvals and testing results that need to be kept at least until the end of the Defect Liability Period with no further disputes yet to be settled.
Types of records.
The SCL classifies various documentation into six types:
1. Programme Records
1. Programme Records
Starting from the first contractor's submitted program
called the proposed Baseline Program, SCL proposed once the CA has approved, this
baseline will be an “Accepted program”. The Accepted Program will be used to
record progress as of the cutoff date (also called “date date”) into it to become “Updated
programmes”. When the delay appears in each Updated programme at each cutoff
date, CA may instruct re-sequencing because the original sequence is no longer
valid or compression of the time schedule to become a “Revised programme”. CA
may also instruct the contractor to provide breakdown of activities into more
detail like four week look-ahead programs. Method statement and manpower and
equipment schedule, with planned rates and outputs are also part of planning documents
showing how the contractor intends to perform the work. These documents will
assist in causes and effects analyzing in case there are claims for extension
of time and/or additional compensation for delays and disruptions.
2. Progress records
2. Progress records
It is a document that provides more details of progress shown
in the Updated programmes. It also records details of delay or disruption
events and impact on the variance of work to the original plan. This document
should refer to the Activity Code from Accepted. Program / Updated program.
3. Resource records
3. Resource records
It is a document that records the total number of resources
used in the construction work, whether it is employees in the departments on
site, workers, equipment/machinery, materials and subcontractors including
actual productivity rates and output data for each period. If these are not
recorded, it will be difficult for a contractor to prove its substantiation of
claim as a result of delays or disruption events.
4. Cost records
4. Cost records
Costs are normally recorded in accounting ledger. The system
should be able to report all the costs incurred by the delays or disruption
events and can be summarized as:-
4.1 Direct costs,
i.e. Labor, equipment/machinery, materials and subcontractors.
4.2 Indirect costs, i.e. on-site overheads and
head office overheads.
5. Correspondence and administration records
5. Correspondence and administration records
Correspondence and administration records are letter, e-mail,
instruction, transmittal, request for approval, request for information or any
other written correspondence between the
Employer, the Contractor, the CA, and other stakeholders involved in the project.
6. Contract and tender documents
6. Contract and tender documents
The contract with all supplementary is an important document
where both parties must keep their original with care in the safe place.
Tender documents and other addendum or memorandum during negotiating the construction price before the contract is signed are also to be kept with care. The Employer should keep those from all bidders with price comparison document and its calculation of project’s liquidated damages of delay.
It is important for the Contractor to keep any estimation sheets, tender builds up in each revision until the final price was concluded as the tender offer with the assumptions the pricing was based on. If tender documents of the contractor are put as a part of the contract, it will serve as a basis for the clarification of planned value for the delay and disruption claims.
SCL provides a full list of documents that should be recorded and kept properly for references in the construction projects for any claims, in Appendix B - Records Type and Examples. The reader can download the document for further study from the link under References and Credits below.
In the next episode, I will introduce some other interesting part of SCL's D & D Protocol Guidance Part B - Guidance on Core Principles, which is the Delay Analysis that may not be familiar by the construction industry in the country like Thailand. If interested, please follow....
Tender documents and other addendum or memorandum during negotiating the construction price before the contract is signed are also to be kept with care. The Employer should keep those from all bidders with price comparison document and its calculation of project’s liquidated damages of delay.
It is important for the Contractor to keep any estimation sheets, tender builds up in each revision until the final price was concluded as the tender offer with the assumptions the pricing was based on. If tender documents of the contractor are put as a part of the contract, it will serve as a basis for the clarification of planned value for the delay and disruption claims.
SCL provides a full list of documents that should be recorded and kept properly for references in the construction projects for any claims, in Appendix B - Records Type and Examples. The reader can download the document for further study from the link under References and Credits below.
In the next episode, I will introduce some other interesting part of SCL's D & D Protocol Guidance Part B - Guidance on Core Principles, which is the Delay Analysis that may not be familiar by the construction industry in the country like Thailand. If interested, please follow....
References and Credits:
No comments:
Post a Comment