Contracting construction work

Some companies such as E.I. DuPont de Nemours and Co. have their own construction divisions. The construction division is usually not large enough to handle all the company s construction business. On certain jobs it may bid for the construction contract along with other firms. The lowest bidder is then awarded the job. In other cases the company may only contract for work that the construction division cannot handle. 

In the meantime, the breakdown of the construction hours by disciplines provided with the conceptual estimate enables the Project Manager to refine, with the aid of the scheduling guidelines in Fig. 9.1, the staffing requirements and prepare a firm plan for contracting the construction work. 

When the scope is defined in sufficient detail, the lump sum approach would minimize Owner s risk as well as project schedule, sinee contractors normally assign their best and most productive personnel to the lump sum work. Lump sum contracts are more appropriate for construction work, especially when the scope can be divided into discrete parts of homogeneous composition. However, they are not recommended for EPC work because of the potential schedule delay and additional costs to both owners and bidders. 

The unit price contract is a viable alternative to lump sum and permits contracting, and even starting construction work, with minimal engineering. Unit price contracts should be converted to lump sum as soon as possible based on take-offs developed from the final design drawings. 

Reimbursable contracts, also known as time and materials (T M) or cost-plus, are the least desirable for construction work. However, they could be the only alternative for engineering work when the scope has not been fully defined and/or the Owner wants to exercise full control in order to protect proprietary information. They should be tied to a fixed fee to discourage the contractor from incurring unnecessary expenses. 

The most cost-effective way to execute the construction work is through competitive lump sum contracts. Engineering, on the other hand, should be performed on a fixed-fee reimbursable basis to ascertain that the level of engineering effort and details is sufficient to insure a sound and safe design as well as minimal field questions and extras. 

All of the C.M. activities mentioned in the previous section are important and should be performed. However, those related to the administration of construction contracts, receiving equipment, and field safety are of the utmost importance and must be performed and documented in order to protect the Owner s interests from potential contractual and/or labor disputes and claims stemming from the construction work. 

A case in point is illustrated in Fig. H.l. The construction work started on schedule on week 39 and proceeded right on track for several weeks. On week 48, although the overall progress was right on track, a closer inspeetion revealed a serious variation in the steel ereetion contract. This variation could have had disastrous repercussions since steel erection falls on the critical path and the delay would affect equipment and piping erection and jeopardize the project completion date. 

The inspection of Petro-Canada and Maersk s activities on Alvheim can be understood as a response to concerns expressed by unions as to whether small oil companies and companies with a contracting background without experience in production had the necessary expertise. The follow-up of construction work in Singapore and Indonesia can similarly be seen as a response to both trade unions and some competing Norwegian companies which questioned the quality of the work, something that may, of course, have consequences for safety. To the extent that PSA s inspection... 

An electrician working for an electrical contracting company works as a part of the broader construction industry. This is a multi-million-pound industry carrying out all types of building work, from basic housing to hotels, factories, schoois, shops, offices and airports. The construction industry is one of the UK s biggest employers, and carries out contracts to the value of about 10% of the UK s gross national product. 

The building contractor will enter Into a contract with the client to carry out the construction work in accordance with contract documents. The building contractor is usually the main contractor and may engage subcontractors to carry out specialist services such as electrical installation, mechanical services, plastering and painting. 

Whenever construction work is to be undertaken if consideration is given to some of the hazards faced and the appropriate precautions taken, accidents and damage can be prevented. This applies whether you are a client having the work done or a contractor doing the work. However, once having agreed precautionary measures it is essential that the work is monitored to ensure the precautions are implemented. The contractor should supply all plant and materials needed for the contract. 

A. This provision in the construction asbestos standard requires building and facility owners to notify tenants who will occupy building areas of the presence, location, and quantity of ACM and PACM in their spaces. This provision is triggered when any construction work, as defined by 1926.1101, is planned, per paragraph (k)(2)(i). The notification requirement is not limited to situations in which a disturbance of ACM or PACM will be taking place in the presence of the tenant. Tenants must be informed in advance in order to protect themselves from asbestos hazards, and so they may, in turn, inform any subtenants, housekeeping services, or other maintenance or construction employers that may be contracted by the tenants to perform work in the leased space where there is the potential for contact with ACM or PACM. 

In many countries, public utilities are subject to compulsory tendering. In Germany, this procedure for the procurement of construction work and services is set up in detail in the so-caUed Contracting Rules for Award of Public Works (VOB) and Contracting Rules for Services (VOL)) and regulated by law ( Law against Restraint of Competition , or the Rules for Award of Governmental Contracts . In order to enable the European-wide participation in the invitation to tender, a pubhcation in the EU journal (http //ted.eur-op.eu.int/ojs/de/frame. htm) is required. 

Conditions of Contract for Works of Civil Engineering Construction... 

In order to avoid disputes, the most important contractual terms are defined in a more or less detailed schedule. In FI DIG Conditions of Contract for Works of Civil Engineering Construction, a detailed list of definitions in English is to be found. At least the two contracting parties should be mentioned in this section ... 

Construction works outside the UK are frequently done in areas where regulations governing safety provisions are not as highly developed as they are in the UK. The International Standard Conditions of Contract make provision for Conditions of Particular Application and clauses which have been added include... 

Austria OBB Contracting of all mechanised track maintenance and construction work 5 years contracts for new investments... 

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