SITE

ADMINISTRATION
AND CONTROL

SITE ADMINISTRATION AND

CONTROL

CONTENTS
Sr.No

Title

page

Planning the Project

Familiarization and Survey Of site

Site Mobilization and Enabling work

10

Site Organization

14

Execution and Monitoring

22

Material and Equipment Procurement

28

Completion of Work and Closing the

site

38

1 PLANNING THE PROJECT SITE

Though the activity starts at a pre-construction stage, but ii kept
continuing until a much later stage. An important aspect of this
activity is that on the efficiency of planning, depends to a large
extent the success of the project. Many projects suffer owing to a
desire to start with the work at an early date, with out proper
planning. The planning should be comprehensive, must element
wise each and every activity of the project. An effective tool for this
operation is to prepare a thorough Master Control Network. A Master
Control Network must include all activities related to preconstruction, construction and post-construction stage. For effective
planning and preparation it is essential t 1 know various details as per
the list below;
Estimated cost (total project cost and the cost of the particular work
package, separately)
Financed by
Main contractor/s (whether turnkey approach or divided approach)
Nearest (indicate distance from site in bracket)

district headquarters state capital

railway station
airport
port
metropolitan city
post office and pin/zip code
telephone exchange
telex exchange
police station
petrol station

Serving highway
Monsoon season (months) and average rainfall
Floor susceptibility
3

Whether the site is plain/slushy/desert /rocky/ jungle/ lake/ water/

logged.
Site development
- Whether leveled?
- Whether approach roads available?
What is the source of water?
If water is not free, what is the'' tariff?
What is the source of electricity?
What is the electricity tariff?
Has the civil work been started and if so what is the status?
When will the foundations be ready?
When will the contract material start flowing in?
How will they be delivered (by rail/road/ water-way/sea)?
Ware house facilities
Shipping and clearing facilities and rate per tone.
In land freight rate from port to site
Is the storage yard properly earmarked and consolidated?
What is the distance between the site and the storage yard?
When can the erection be started?
Availability of housing accommodation
- For staff
- For workmen
4

- Owners guest house/hotel for visiting personnel

- How does rent rate, compare with the nearest metropolis?
- What is the distance to be traveled between quarters and
site?
- Has the owner made provision for land for labor barracks?
- Are building materials for temporary houses available in
plenty and inexpensively?
Hospital and schooling facilities
What are the public transport facilities to reach the site ?
What are the monthly hire charges rates for different types of motor
vehicles?
Labor availability (Skilled / Unskilled)
Industrial / political climate
How are worker's attitude and productivity generally in the region?
the site?
What are the prevailing wage rates?
What are the fringe benefits given to the employees in the region?
Availability of the equipment, tools and consumable stores (which is
the market for important items like gas, electrodes, small tools etc.)
Is there any material in short supply?
Is there any organized wholesale market?
How far is it from the site?
What are the fabrication and/ machining facilities available around
the site?
Banking facility
What is the official (floating) exchange rate of the country in relation
to
- Our currency?
5

- US Dollar?
Are there remittance restrictions
- or employees' savings?
- for companies' profit?
What are the income tax regulations and rate structure in respect of
the above remittances?
Is there a bilateral tax agreement between the two countries?
What are the rules governing foreigners registration/immigration?
What are the statutory Registrations necessary to establish a site
office and employment?
Is a sponsor or associate necessary as a matter of rule? If so, is his
financial involvement necessary?
What have been the inflation rates in the past five years?
What are the Government controls on wages and prices?
What are the important laws or codes governing employment of
men?
Does the state levy a tax on contract turnover, and, if so, at what
rate?
Are there entry tax, works contract tax, - profession tax or any other
taxes?
What are the rates?
Customs regulations and duty rates
What are the activities presently going on?
Who are working at the site now?
Mention all the pertinent or peculiar information;
6

If civil works are involved in the erection contractors scope, then

attach soil investigation report.
Attach photographs and sketches.
With all the input on a project collected and preparing a Control
Network the planning process is well on way to be further developed
as the work proceeds. The planning should be an on going
operation, which may need changes to the made at times, to suit the
special and peculiar need of the project. Planning and monitoring
are like two wheels of the vehicle on which the project proceeds to
its specified goal in a smooth travel.

2 FAMILIARIZATION AND SURVEY OF SITE

The Site Manager must get thoroughly familiarized with the site of
the project. This would include physical features of the site, local
environment, operational arrangement, resource constraint etc.
Some information in this regard is already available with the project
team, while undertaking the planning of the project.
This activity includes the following operations:
1.
2.
3.
4.
5.

Clear the site and leveling.

Take permission from corporate and revenue authorities for
cutting trees etc.
Topographical survey of the area, fixing up boundary stones,
and bench mark.
Carrying control survey and drawing up, a plan of the entire
site
Project road and temporary structure for water storage yard
etc.

In carrying out the survey it is essential: to pick up the level from the
bench mark fixed up by the Survey of India or prominent bridges and
other such like structures. Survey, is done;-using Theodolite, Dumpy
level & total station.
Name Board
A proper size name board to be erected at the entrance of the site
giving name of the organization, address, project name, name of
contractor, consultant, architect. A neat name board reflects an
orderly site, this detail is often over I looked causing confusion.
The planning team having conducted a reconnaissance survey
of the project site to determine various features required to complete
the planning process is followed by the 'execution team which
carries out the detailed topographical, contour and mapping survey
of the project. This includes all physical details, leveling, contouring
of the site. The project team should also get thoroughly acquainted
with the local condition, establish proper coordination and rapport
with authorities at the site. A project which is well understood by the
8

total people gets their support. Considering the socio-economic

status in the country it is beneficial to amalgamate the local people
with the project objectives. An arrangement of mutual support is
useful. While local people must look to the project as one, which
would be of commercial benefit to them, in terms of providing
employment, generation of ancillaries and services in the area. The
project on the other hand gets their political and skill support in
execution of the work. With the changing economical situation and
growing aspiration of people in most project the local people insist
upon the project to employ their people, like the 'sons of the soil'
concept. Certain elements become powerful agents, who tend to
exploit the situation, causing sometimes detriment to the project
interest. In certain cases these persons are the evacuees from the
site, which is given for setting up the project. Examples are Nhava
Sheva Project in Bombay, where the local evacuees did not allow
work to be executed for some time. They also make a cartel in
supply of construction material like sand, aggregate, transportation,
from whom the contractors are forced to take, usually at exorbitant
rates.
LOCAL MATERIAL
Usually on construction project, bricks, sand, aggregate, water are
the local material to be arranged. The availability of these both in
terms of quantity and quality Is to be ascertained. In many projects
where requirement of bricks is high, the availability of good quality of
bricks is scarce-in: the area, it is-a good practice to set up captive
brick kilns for the -project Land and coal could be arranged for the
brick manufactures that could manufacture and supply to the project
its requirement. This arrangement will have the advantage of proper
quality and timely supply. The cost of bricks can also be fixed up on
a long term basis, thereby insulating against unexpected spurt in
price If; bought from outside. For aggregate similarly, suppliers can
be fixed up. The feasibility of setting up a crushing plant near the site
at source of stone, or at site itself^ may be examined. On large
project it is worthwhile to arrange for own crushing plant, which will
maintain regular supply and also obviate against cartel formation by
suppliers. Arrangement of sands supply and transportation is
similarly tied up on long term basis.

3 SITE MOBILIZATION AND ENABLING WORK

Before embarking upon the actual construction activity it is
necessary to carry out mobilization of resources for the project, and
various works. We shall first take up the enabling works.
Enabling works Under this category works, structures, and appurtenants which
facilitate undertaking the actual project work are included. In the
Master Control Network and planning for the project details of
enabling work would be included. The extent of enabling work would
vary depending the size and nature of the project. On a large project
costing a few hundred crores, the enabling work itself could form into
a mini-project. The enabling works would include the following items.
1) Fencing/boundary wall around the 1 project, fixing security check
post and gates
2) Site Office
3) Camp for accommodating Engineers, Supervisors, and Workmen.
4) Store for materials
5) Construction Plant and equipment
A) Static plant such as concrete batching plant, pre-cast concrete
element plant, block making plant, hot mix plant.
B) Mobile plant such as Trucks, Dumper, Bulldozer Grader, Vibratory
and pneumatic Road Roller, Bitumen sprayer. Transit mixer,
Concrete Pump, Crane front end loader, compressor. These Plant
and Equipment are mobile, and can be shifted from place to place
on regular basis.
6) Workshop
10

For the maintenance of plant and equipment both static and mobile,
it is necessary to have a workshop which will undertake the
maintenance, repair, overhauling and major replacement of
equipment. Workshop is geared up to, carry out preventive and
scheduled maintenances which; is essential to keep the break-down
of equipment to bare minimum. The workshop should have facilities
for servicing, carrying out general repair, engine over-haul,
calibration of Diesel Pump etc. Workshop should have a small
machine shop attached with lathes, drilling machine, welding/ boring
machine, painting, denting, sheet metal work etc. It is also to be
equipped with auto-electrical repair battery charger, tyre repair etc.
7) Quality control laboratory
For testing of material and building, component, it is essential to set
up a quality control laboratory at the site. This laboratory should
provide for basic testing of material such as Cement, Sand,
Aggregate, Bricks, Concrete etc. If any item needs to be tested, for
which :facilities are not available in the site laboratory, samples of
such items can i be sent to a reputed laboratory, which is usually
operated ; by the State PWD, Engineering College, or any Research
I Institution in the vicinity.
8) Stores and stacking yards
In the project site, sufficient covered stores or open storage is
necessary for maintaining the material in good condition. Cement is
usually supplied in bags, which is stored at the site in covered shed.
The sheds are constructed with brick wall, TPS floor, tubular
structure trusses, roofing with sheets. Bags not exceeding 10 are
stacked one over another. If more than 10 bags are stacked then the
lower bags tend to set, making cement non- usable. In case cement
is used in large quantities for concreting by the batching plant and
pre-cast element plant/ is stored in bulk in vertical silos. The silos
are filled up by a pneumatic pump fixed on the cement bulk carrier;
from the silo cement is conveyed into the mixer of the batching plant
and pre-cast element plant, through a screw conveyor.
9) Services

11

The site camp is to be provided with services like electric supply,

sewage disposal, communication telephone, In case regular power
supply is: availed from the grid, it can be tapped and necessary
sub- station with transformer installed at site. If grid pore is not
available then it may be necessary to generate own power by
installing diesel generating sets at the sets. Water supply can
similarly be taped, if water lines are passing near by in the vicinity,
by providing underground storage tank and distribution through a
pumping system and over head tank. In case water mains are not
available, tube well could be bored for water. Necessary testament
of water to make it safe for intended consumption will have to be
carried out. For sewage disposal, since the camp is only for a
temporary duration septic tank, could be provided. If it is a large site,
and enough land is available, then it may be possible to provide an
oxidation pond for sewage disposal, the effluent from the pond could
be used for horticultural purposes of the site.
In order to carry out the enabling work which is required at the very
initial stage of the project itself, it may be desirable for the
organization, to set up a 'crack team' which can go in advance to the
site and build up the entire temporary structures, services required
for the enabling works. This will cut down the time required by the
main
Project team, on their arrival at the site, and they could embark upon
straight-away on execution of the main project. Such a 'crack team'
can move from project to project for the organization, and they would
be well trained in carrying out this activity. On the other hand, if
project team assigned with the main work, is to first build up the
enabling works, a lot of time is lost for the project.
On most international project, and on some major projects within
country, the types of structure being adopted for the site camp are of
portable nature. These are in the form of light steel or wooden
structure, which are mounted on skid beams or wheels, and can be
moved to the camp site, at a very short notice. The Portable cabins
are provided with electrical, plumbing and sanitary fixture and the
system becomes operational at site by plugging into the electrical
and water supply. Through the initial cost of the, system, may be
more but over a period of time it would become economically viable
since the structure can be shifted to site, where as, if the camp is
built with conventional materials like steel, concrete, the cost would
12

be & higher in the Longer run, besides the extra time required to
build the Camp.

13

4 SITE ORGNISATION

For effective achievements of intended result it is essential to set up

a suitable organization at the site. The organization should afford
translation of plan into an activity, which promotes completion of the
work. As stated Head Office: and site Office should work in support
of each other. While, the initial conceptualization, planning of project,
preferably in association with the designated project Manager is
carried out at the Head Office, the activity of actual construction has
necessarily to take effect at the site.
A good project organization in which all individuals concerned
constantly interact for achieving project objectives is' vital for the
success of the project. A project/site organization takes over from
the Head Office team once, the planning process, statutory
clearances and allotment of fund has been made. A concept of the
organization is formulated in the planning stage itself, and at the
commencement of the execution stage, a formal character is given
to it, site work and delegation of individuals made clear.
After defining the Work Breakdown Structure (WBS) one is able to
determine the exact size of the project team and form of organization to manage the site successfully. The size of the organization
shall depend upon the workload specialization and nature of the
project. Distribution of work between the owner and the contractor
will also have an influence on the owners project team size.
There are principally three different type of project organizations
namely:
1. Functional organization.
2. Divisional organization.
3. Matrix organization.
1. FUNCTIONAL ORGANIZATION
Functional organization is the traditional centralized type of
organization with line and function, in which the respective heads of
various departments report to the CEO for their specialized function
in tl|0;|management of the project, as well as the enterprise as
14

a|;^h0ie. The PM supported by few area project engineers and

administrative staff would function as a co-coordinator and report to
the Chief Executive Officer. This is not suitable where a CEO has
many activities and projects to look after.
2. DIVISIONAL ORGANIZATION
Divisional project organization envisages well knit decentralized
Project Management division, each headed by a PM or equivalent,
and divided into several sections, each under the
charge of a senior person manned by qualified and experienced staff
at appropriate level. The PM concentrates on his area of the Project,
without worrying about the general administration of the enterprise.
Project schedule and resource budget are entrusted to the all.
The Divisional organization has the handicap of leading to wastage
of resources because it tend,3 to create water tight compartment. All
specialized persons are not fully engaged and resources being
locked up are not-optimally used.
3. MATRIX ORGANIZATION
This form of organization is task oriented. In this form of organization
there are two distinct categories. One at a. lower levels are recruited
for the particular project, and the other one deputed by other
functional departments. While the first category may face
termination, if not absorbed at the; end of the project, the second
category can go back to their department when the project is over.
When posted at the project this category will be subjected to a dual
control, one they would report administratively to the PM, but
professionally and for specialist advice they- continue to report to
their functional head, this duality is common i. e Completion of the
project, in which both the PM and the functional head are equally
interested. The following are some of the advantages of the matrix
form of organization.
i. Flexibility in the deployment of resources.
ii. Optimum and the effective use of equipment and scarce specialist
skill.
iii. Better opportunity afforded to people for career growth.
iv. Saving in project cost owing to| avoidance of idling of resources.
15

Matrix form has come to stay as an effective organization for project

implementation, but executive dislike the temporary transfer and
being on tour for long duration.
The type of organization suitable for an owner or client would
be different from that suitable for a contractor. In many cases the
former is Govt. or public sector, 'which follow bureaucratic nature of
functioning and do not operate' as a commercial entity like an
entrepreneur. Besides, the type and format of organization would
undergo a change based upon the nature of operation of the
contract. That is if the contract being operated as a ' turnkey' then,
the types and number of persons would vary. Also, the way the
project is being implemented i.e. by engaging sub-contractor or
departmental labor would reflect upon the organization structure.
PROJECT MANAGER
He is the key functionary of the project. Since he has to carry the
entire project by himself, his ability versatility, experience,
commitment, managerial skill, and above all leadership qualities are
most important for the project success. Some of the, qualities a good
PM should possess, are as under:
1)
2)

A technically sound person appropriately qualified with

adequate experience on comparable project.
A good leader capable of galvanizing the project team to
achieve common goal.

3)

A good planner himself to guide the planning process.

4)

Analyses data and takes quick decision:

5)

A trouble shooter, should be able 'to pickup the problem areas

for affecting solution.

6)

A disciplinarian who is liked respected and at the same time

feared.
Possesses good communication skill and language ability.

7)

The PM or the GM (Project), by whatever nomenclature he is addressed, must report directly to the Director (Project) or the CEO at
the Head Office, and enjoy top management support to be effective.
As pointed out earlier, he must be identified and associated with the
project from its pearlier stages. This will provide the project team his
16

input in planning arid-fixing various parameters, and also cement his

commitment to project implementation. He would own the planning
concept and try his capacity, utmost to deliver the goods. The
following are some of 'the' responsibilities of the PM
1)

Co-coordinating the effort of the project team and I functional

department.
2)
Project scheduling and achieving the scheduled programme,
to complete the project.
3)
Mobilization of resources such as material, labor equipment,
funds.
4)
Monitoring performance on regular basis, and reporting to
Head Office and Top Management.
5)
Maintaining close liaison with the top, management, and
transmitting their perception to the project team.
6)
Co-ordination and liaison with all agencies e.g. statutory
bodies, Government owner, Consultant, Public Bodies. He
would create a positive image of the project, maintain good
communication and
dispel fear or doubt, removing
misconception about the project.
7)
Foreseeing problem ahead of occurrence and formulating a
contingency plan.
8)
Quality assurance and quality control.
9)
Project cost control.
10) Management of project team and personal. The organization
should operate as a group, and not in water tight bureaucratic
layers. 11) Control and safeguard of asset under his control.
12) Maintain financial propriety and observe professional norm, to
depict
picture of transparency and fair play.
PROJECT MANAGERS AUTHORITY

The PM should have authority commensurate with his responsibility.

The project should operate as a profit centers, the project being a
separate entity has its own budget, - expenses and profitability The
PM should operate with in the provision of expenses provided. He
will endeavor at all times to keep within the limit of expenses
provided. If any excess is anticipated in a certain area, he must
explore where a corresponding saving can be expected, in order to
offset the excess. At the end of the day, he is charged witty
delivering the project with profitability's as originally envisaged.
17

SITE ORGANIZATION
A project site has certain component of organization which is
generally replicated at most sites. However/ the exact organizational
set up will vary depending upon the magnitude and nature of project,
the corporate background, location, and so on. Some of the
components adopted at most sites are as under:
1) Planning and MonitoringHeaded by a planning manager, who works closely with the Project
Manager. His technical knowledge of the project, scheduling and
controlling techniques are important for the project success. He
prepares and updates the master control network and sub-network.
At major sites a computer could be installed which would keep the
network updated and take out resources and input required from
time to time.
2) Project Engineer
The entire site is subdivided into areas and zones where
construction activity is undertaken. Each area of zone is controlled
by a Project engineer, who is responsible for actual execution of the
work. The responsibility of the Project engineer is to arrange all
input such as material labor, plant and equipment either directly or
by co - ordination with other department of the project. The Project
engineer, is really the king pin of the construction. It is in his area
that the work is being really executed. He is the production unit of
the site. He has to co - ordinate with the representative of the
client /owner get quality control carried out, work accepted,
measurement taken and raise bill for payment. He has to maintain
daily site record of important noteworthy events taking place. If there
is any work stoppage or holdup, these need to be recorded in, a
hindrance register. An extract of the hindrance register can be sent
to the client on a monthly basis. Ultimately this extract could form
one of the basis for future claims to be established on account of
work delay.
(3) Quality Control Engineer:A quality control laboratory and testing facilities are set up at every
major site. The quality control engineer will ensure that work is
18

progressing in accordance with the quality norms. It is a good

practice to prepare Field Quality Assurance Manual at the very start
of the project. This document will detail the entire requirement of
quality test and checks which will be carried out at various stages as
the project proceeds. The norm of quality should be Quality first
time, every time. A -Field Quality Assurance Manual serves the
purpose of sensitizing all the project team including the client
representative's to the requirement of quality maintenance at the
site. In a multidisciplinary project, such as an individual project or
high technology construction project, where along with civil
engineering other disciplines such as electrical, mechanical,
electronic, instrumentation, air-conditioning and refrigeration,
communication etc. also come into operation, needs provision of
equipment, machinery and fixtures, which have laid down
specification and quality norm to be followed. Such equipment being
manufactured by a vendor has the necessity of quality control to be
established at the vendors manufacturing unit also.
4) Finance ManagerA Finance Manager is an important part of the team. His function is
not a controller of accounts, but his job is 'to' provide an important
input to the project i.e. Finance. His operation extends beyond
maintenance of accounts, preparation of trial balance, follow up
payments etc, but he has to innovate and ensure that required cash
flow is provided for the project. Many a times the finance
representatives and engineers at a project do not work in unison,
when individual egos conflict with project priority. It is necessary to
avoid this situation by proper team building and communication.
The financial resources of a project are limited, and largely have to
be managed by generation from the project itself. It is seen that, if
project manager keep' finance Managers in the picture of what is
happening at the project, helps in the late getting a true perspective.
also involves the Finance Manager into the project team to become
proactive
5. Administration and Personnel Manager
A project has considerable activity related to manpower deployed.
This is taken care of by the personnel Department. All record of
employees, with respect to their pay, leave, transfer, promotion,
training etc. is kept here. Though a project being of limited duration,
19

but for the period of its operation record is maintained. At

construction site, certain social problems may also been countered.
Most sites are at far off and inaccessible location, where employees
would be staying away from their families. The project authorities
must decide upon at the beginning of the project itself, whether a
particular project will be a family station or a non- family station. It is
found that in short duration projects up to 2 years. It is better to treat
the site as non family station. The employees in turn can be given 2
weeks off after one year to spent time with their families. If however,
the project duration is 3 years or more, it is worthwhile to consider
families above certain level to stay at site. In which case necessary
provision of residential accommodation, transport, school, medical
facilities etc. at the project site is necessary.
Various administrative functions of a project like keeping
coordination with local and statutory authorities, labor commissioner,
public relation etc is looked after under this department.

20

21. SITE ORGANIZATION.

A typical organization for site would be as under :

PROJECT MNGR

ENGG

ACCTS

PURCHASE

SAFETY
SAFETY H.R.
H.R.

DRAWING
MONITORING

SR PR
ENGR
ENGR

QUALITY

BILLING

IT

21

5 EXECUTION

AND MONITORING

Actual execution of the project 'happens to be the most important

activity of the site management. It is the activity through which all
plans are transferred project and realization of goal is achieved
through the satisfactory conduct of this activity.
As is said that Proof of the pudding is in eating it therefore!
execution only can determine whether, the project is going on well or
otherwise. In site management operation, actual execution is the
important theatre of activity. The planning process organization,
agencies, material and equipment all come in to action in execution.
While it is an established fact, that life at a project site, is arduous,
and the site execution personnel have to face maximum amount of
hardship. They have to be individual who can cope up with
sustained hard work and long hours at site. Such people also derive
satisfaction from achieving result at site.
Once the site organization has been fixed up its mobilization gets
underway. On the other hand the planning of the project is I
completed, with a master control network drawn up, which brings out
the various activities, their[duration, and sequence of occurrence, &
also the relationship between different', activities.
For actual execution of the project; the following steps are required
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
11)
12)

Methodology of construction.
Selection and fixing up construction agency.
Mobilization of resources.
Setting out work.
Making daily work programme.
Allocation of resources.
Quality control.
Deployment of plant and machine
Taking measurement and preparation of running account bill.
Obtaining client approval.
Preparing labor report, material consumption inventory
equipment utilization, and POL consumption.
Liaison with outside agencies.
22

13)
14)
15)

Correspondence with outside agencies.

Maintenance of daily site and hindrance register.
Preparation of MIS

The site execution team and planning team have to work in close
association. In order to update the master control network and subnetwork it is incumbent upon to up date the schedule with data from
site. Unless data is observer and schedule updated, the network
becomes non functional. At many sites it is observed' that a
reluctance is offered to maintain data for up dating the network. This
activity is considered in fructuous and time consume being
dispensed with, little realizing what benefit it could render to project
execution. A master control net work is a tool l| at the disposal of the
project implementation group for their benefit, but needs investment
from their end to keep it updated. Sometime the project team fears
that they would get exposed if they give the MIS to Head Office and
higher authorities.
A proper training is required for the personnel working at the site to
become aware of the benefit of control network. Several computer
packages are available which help in keeping; proper track of the
project such as Harward Project Manager (HPM), Success Planned
and PRIMAVERA. Computer Literate Staff should be: preferably
posted at the project site. They can then relate with: software for
undertaking project work.
In execution it is important to monitor work on a daily basis, from the
master central network; sub- met work a daily plan of work is
formulated. It should be the endeavor of each person engaged in
execution to ensure that daily work is completed, A check list is
prepared for all material required, Its procurement, inspection,
transportation, receipt storage is monitored. Many a time due to
scarcity f a material required work is held up and labor and other
resources wasted.
The following additional points are essential for proper execution of
project ;
1)
Completeness of engineering design and drawing.
2)
Completeness and correctness of project information.
3)
Proper scheduling of activities taking into view realistic time
and resources
23

4)
Full advance information on external environment.
5)
Attuning the internal environment of the enterprise to the
project teams objectives.
6)
Quality of procedural guidelines and operating methods.
7)
Fund allocation and disbursement plan.
8)
Team member commitment.
9)
Top management commitment in making unity of purpose a
vital part of its corporate culture.
PERSONAL QUALITIES OF TEAM MEMBER
Members of the execution team should be individual of
excellent personal qualities. They should be extremely good at inter
personal relation. The training given to them must include also
personality development.
They should posses;
1.
Positive attitude.
2.
Good concept ional abilities
3.
Good communication skill and language ability.
4.
Dependable
5.
Knowledge of the enterprise and its philosophy
6.
Good knowledge of work.
MONITORING
A close monitoring of project activities is extremely important in order
to keep track of how things are proceeding. A project is usually beset
with considerable amount pf uncertainty and thing's can undergo
change. Therefore, only close monitoring, would it be feasible, to
take the corrective. measures and put back the project on track.
A master control network is drawn for the project at an, initial stage
which incorporates all activities including the initial planning, design,
engineering, site mobilization, Stabilization, construct ion,
procurement erection, commissioning and start-up. This network is
kept updated at regular interval by input of data received from the
site. The course" of project may be, reviewed based on new in put
and a new critical path could develop. Besides, certain alarm bell
may sound to forewarn of an impending problem or constraint which
may occur in the course of the project. This may suggest taking
tamely corrective treasure to keep situation under control.
24

CO-ORDINATION MEETING
The client usually holds a weekly coordination meeting, The
consultants, representative, and PM along with the planning Engineer, and required section head my attend. This forum ought to be
utilized to project all possible problems the project faces from the
side of the client. The points raised should be included in the record
note of this meeting. A copy of this record note be sent to the head
office of the contractor.
SENIOR LEVEL MEETING.
Usually once a month there will review meeting between the Chief
Executive of the contractor the Client. At this meeting points which
could not be revolved in the weekly coordination meeting may be
raised. This would also afford and opportunity to the contractor
raises certain major problems affecting the work. Claims which get
generated could also be taken up, before making a reference to
arbitration, or going to court.
REMOVE CONSTRAINTS
The role of a PM is to remove the impediment in execution of the
work. He has to be proactive and ensure that the constraints are
removed. He should not consider, that certain areas are to be looked
by the client, and it is he who should solve the problem, if the issue
remains unresolved, then the contractor looses. The extent of
compensation, which if at all he gets, will not mitigate the extra cost
incurred on account of the delay.
CLOSELY MONITOR
The PM has to closely monitor all activities. He cannot wait till he
receives the MIS only. He has to move around and see things for
himself. He has to go to his people and solve any problem which
they may face. For an effective PM it is Management by walking".

DEPARTMENT LABOR
25

The work force directly engaged on your roll is the departmental

labour in popular parlance. Engage departmental labor sparingly
only on jobs requiring high quality assurance, and for work study for
future purposes. Jobs of a continuing nature, and should be done
depart mentally.
SUB CONTRACTOR
The reason for subcontracting are want of specialist skill,
uneconomic value for you to mobilize, want of special tools paucity
Of capital to equip with equipment and new activity, and sometimes
policy of keeping low the direct employment of workmen.
SELECTION
A proper selection of the sub-contractor is made by the PM in
association sometimes with the HO.
SUB -CONTRACT AGREEMENT
An agreement is entered into for a sub-contract. The agreement
ought to fair and equitable to both the parties. It may have terms and
conditions on "as back to back" basis as with the client.
Incentive LINKED TO PRODUCTIVITY
Incentive is a motivating factor, and has been introduced on
production and manufacturing industry for a p pretty long time
somehow in construction incentive linked to productivity has not
been introduced. This is probably owing to the fact that in
construction it is difficult to measure the productivity.
In two Public sectors Construction Companies incentive scheme
linked to output has been introduced which will be enunciated here.
After a considerable amount of deliberation the scheme has been
formulated.
INCENTIVE SCHEME LINKED TO OUTPUT"
Construction project is the result of activity by both the site and Head
Office. For an incentive scheme to become operational it is first
26

essential to fix up the parameter as to the group "which will qualify to

receive. It was considered that the site team of the project will be the
one to receive the incentive. The incentive is based upon the
following four factors.
1.
2.
3.
4

Achievement of monthly target.

Achievement of monthly milestone.
Economy in site expenses.
Realizations of outstanding dues.

For each of the factor a weightage of 5% has been provided.

Therefore, in a month if all the four factors are achieved, every
employee at the site would receive an incentive of 20% of his
emoluments. In addition, a further incentive will be given for increase
in profit margin over that originally provided for. If the actual profit on
finalizations of account exceeds the original, then 25% of the
increase in profit will be shared by all members of the project team
on pro-rata basis.

27

6 MATERIAL AND EQUIPMENT PROCUREMENT

From The bill of quantities for the project, the requirement of material
is taken, out. The material check list is prepared which indicates the
specification of the material, quantity ''required, time of-supply
inspection procedure, transportation detail, levy of taxes etc. This
check list is an important document' to of keep track of the material
required. Many a project' suffer delay Rowing to required material
not available at the appropriate time
.
The organization shall decide which material and equipment to
purchase, and what can be made by them at site, Indents will be
raised by engineering department and the planning engineer, will opt
for between buying and making. Purchases should be made
economically with strict adherence to quality specification. Material
and equipment should be available at the right time at the site,
without causing any hold up work. The right quantity of materials
shall be purchased so that there is no shortage or wastage nor need
for an emergency purchase. Proper Planning for material
procurement is essential to provide for required material as and
when required. Inventory should be maintained at optimum level, so
that to obviate unnecessary blockage of finance, besides, we have
to avoid taking recourse to spot purchase under emergent situation
at a higher cost. A planned procurement leads itself to competitive
price, proper inspection, transportation, storage and issue of arterial.

PURCHASE PROCEDURE
Material scheduling where there is supply of direct material and
equipment, as in turnkey contract, the engineering department shall
prepare a descriptive: list of such material and equipment with
specializations and pass it on to the planning Engineer for
procurement. This apart, the PM shall himself prepare on the basis
his resources aggregation charts separate list of indirect materials,
tools and construction plant and equipment, to be procured for
28

executing the erection and installation

hand.

part if of the contract on

As the s next step, the PM shall prepare separate schedule supplies

of the four categories of material namely:
1. Direct materials and equipment or incorporated materials which
go into the contract work (called contract materials)
2.
Indirect consumable stores (called consumables).
3.
Tools,
4.
Capital plant and equipment needed for carrying out the
contract work.
INDENTS
After ascertaining as to what all can be either made inside or
transferred from other sites, the PM shall raise.
1. Indents for purchase
2. Internal job order for making
3. Transfer advice for transfer
The corporate office comes into picture in regard to (3) above Very
often it is observed that some tools^ material or plant an equipment
is available at some project, which could be transferred and credit
given. The recipient project site is usual not enthusiastic about
receiving supplies material, or plant equipment from another project,
as they would be interested i buying new lot for their project.
INDENT REGISTRATION
The indents received should be recorded on a computer or in file
kept separately, using different category codes or group codes for
contract materials, consumables, tools and construction equipment.
Depending upon the economy in procurement, the material
managers may bifurcate the indents between local purchases' and
'Head Office' purchases. Procedure for both will be identical except
that local purchases shall be handled at the site under overall control
of the Material Manager.
MARKETING, SEARCHING AND REGISTRATION OF SELLERS
The Material Manager shall send' out enquiries and receive same
duly filled in by the due date, an enquiry should set for full
description and specification of material, quantity, supp schedule,
place of delivery, due elate of receipt. of offer, validity requirement
29

etc. On receipt of offer, their essential ten and conditions shall be

compared in comparative statesmen factors to be considered are
the following;
1) Sellers past standing and history of past performance.
2) Specification and make offer
3) Deliver period
4) Warranty
5) Terms of payment
6) Prices and price basis
7) Escalation terms
8) Packing, freight, insurance, currency.
9) Servicing, installation and commissioning.
SELECTION, PLACEMENT OF ORDER
A purchase committee comprising of the Project manager,
Engineering Manager, Material Manager and Finance Manager may
consideration the offer and shall select the best offer considering the
prim cost provision and budget and record, their recommendation
Based upon the prevailing delegation, the competent authority a the
site i.e. the PM or at the Head office i. e CEO may accept the offer.
Care will be taken to place the order within the validity period. A
purchase order being the last document of commitment in pure
chasing process, care should be taken to ensure that it is complete
and free from all defects. essential contents of the purchase order
are ;
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
11)
12)

Material description.
Quantity
Price per account unit
Discount
Escalation terms
Time of delivery
Place of delivery
Terms of payment
Inspection, testing and test- certificate
Packing and dispatch instruction
Invoicing instruction, freight basis, insurance
Servicing and warranty

30

13)

copies of purchases order shall be given to the

Construction Manager, planning Engineer, finance Manager
for advance planning of inspection and testing if necessary.

FOLLWO UP
The Material Managers shall follow up purchase order to expedite
manufacture and / or supply. If the seller is found to be failing,
immediate cancellation of the order on him and alternate
arrangement must be made without losing time. If any party commits
breach, risk purchase from any alternative source at possibly higher
price shall be made after giving him legal notice and excess
expenses will be recovered from him.

PHYSICAL TRAINING
Usually construction equipment shall be under the overall control of
the planning Engineer in a pool, while tools shall be directly under
the store in charge.
The planning engineer in association with he Construction Engineer
plan the use of the construction equipment on a weekly and daily
basis. Requisition shall raised on the basic of such plan.
CONTRACT MATERIALS
As per requisition cleared by the planning Engineer and store keeper
material shall be lifted by the construction department from the site
or yard.

TOOLS
Tools shall be issued to individual workers against authorization of
the construction engineer. Individual orders shall be indiv9idually
responsible for the safe use and custody of the tool drawn by them.
CONSUMABLES
Consumables shall be issued to the 'bearer' of the requisition
against authorization of the supervisor.
PHYSICAL INSPECTION AND VERIFICATION

31

Physical inspection and verification shall be done in order ensure

that book balance and physical stock tally, that organization assets
actually exit and are in good condition, and it is no pilferage or
malpractice and to create a visible fear the dealing staff.
Different intervals shall be determined for inspection and verification
of different items, like
1. Contract Material, a quick visual inspection almost every by the
Planning engineer and? Construction engineer.
2. Heavy duty construction equipment, visual inspection every day
by the maintenance foreman,
3. Tools and tackles in position usual inspection every de the
erection engineer and foreman.
4. Toolboxes, every day, by technicians concerned physically by their
supervisors visually.
5. All other physical verification quarterly by Planning engineer and
Site Accountant with the Store keeper.
6. Every item, physical verification half yearly by the mat
management representative and internal auditor.
FIXATION OF THE RE-ORDER LEVEL
Fixation of minimum and maximum stock levels shall be don
estimates based on rate of average daily consumption, order time
and lead time or the time necessary to get fresh supp storage risk,
storage space, economic order, quantity, procured costs, working
capital lock upland interest cost. These will not remain constant
throughout the contract period, every quarter, the minimum and
maximum levels can be rev and revised.
CONSTRUCTION EQUIPMENT
Based upon the methodology of Construction and. Planning
process, the details of plant and equipment to be used on the project
determined.
There are many high tech construction job work
cannot be executed without adoption of the specialized plant
equipment e.g. slip forming in case of tall RCC structures, chimneys,
TV towers etc. Possession of equipment elevates the nicely
32

competence of the constriction company, and many a time client

considers a construction organization which, is in position of
sophisticated plant and equipment better 'suit' execute the work.
The type, capacity, specification and number of equipment vary from
project to project.
Annexure A depicts typical requirements of equipments for a
particular project.
BUYING/ LEASING/ HIRING OPTION:
Entrepreneurs, who do not have the financial resources to pay for
the equipment, often take equipment on lease or hire from hiring
firms.
Under the lease arrangement, the financier would realize the capital
and interest, at a high rate, over a period of time by way of monthly
installments and at the end of the agreed period, transfer the
equipment of the user at a nominal residual vale.
OWNERS TOOLS AND PLANT
Under some contracts, the owner or main contractor gives the use
of some of his tools and plant either as a free service or against
payment at a prefixed rate. While relative economies can be worked
out, but the biggest advantage of this arrangement is that the
contractor need not invest on their tools and plant.
EQUIPMENT PERFORMANCE AND SELECTION

Before placing order for buying or leasing or hiring the equipment

the performance data of each equipment should be collected critical
examination with reference to actual need.
OPERATION OF EQUIPMENT
Operation of equipment is important as it is capital intensive and
considerable amount of productivity is linked to its effective
operation. Before any equipment is purchased it is necessary that
both the maintenance foreman and operator are trained in its
operation and maintenance. While the foremen should thoroughly
get well versed with the operation manual and maintenance
schedule of the equipment, the operator should 'be given hands on
training on the equipment.
33

MAINTENANCE
A Stitch in time saves nine this adage is appropriate in terms of
equipment maintenance. A preventive maintenance schedule for the
equipment is set forth by the manufacturer and this need to be
scrupulously followed at the site by the maintenance crew. If
systematic preventive maintenance is conducted, it can save hours
of unscheduled breakdown and loss of productivity. Along with
preventive maintenance and overhaul it is important to maintain
good housekeeping and cleanliness. Equipment used for concrete
making, such as batching plant, transit mixer, concrete pump
making, such as batching plant, transit mixer, concrete pump block
making machine etc, must be thoroughly cleaned and washed at the
end of work, otherwise cement when set becomes like metal.
Proper maintenance would ensure efficient current performances
and prolong the life of machine. The maintenance activity needs
careful planning, implementation and monitoring. The PM must take
specials interest in the upkeep and maintenance of the equipment.
Very often the PM being a Civil engineer leaves this entirely to the
Mechanical supervisor.
SELECT A MAINTENANCE FOREMAN:
He should be versatile, multi-skilled super wiser with knowledge of
a range of construction equipment with a diploma in Automobile
Engineering or' Maintenance Management. He should a good
trouble shooter and also take up planned and systematic working. At
a large site It may be necessary to engage additionally a
Maintenance Engineer. The site may also have, a repair workshop
with, machine shop, for manufacturing certain components required.
A section for engine overhaul, sheet metal denting, painting is
provided.
EQUIPMENT TO BE MAINTAINED:
A register of all equipments to be maintained at site should be
prepared with contents as ;
1) Description of equipment.
2) Origin and source.
34

3) Maintenance: Warranty period,

4) Performance data.
5) History of overhauling done.
6) Recommended servicing frequency.
7) Grade of lubricant recommended.
8) Road permits or tax payment detail.
9) Original cost.
10) Capital, impairment.
11) Depreciation rate.
12) Yearly total, operation cost.
13) Yearly total maintenance cost.
14) Down time history.
15) Yearly total of hours used.
16) Reference numbers of log books.
17) Yearly total of rental charges if any earned.
18) Market rate of hire charges in the area.
19) Hiring in and hiring out possibility.
20) Details of current years; servicing.
21) Maintenance repair.
22) Fuel consumption.
The above data is used for monitoring the expenses, usage, and
productivity of the equipment. Excerpt of this on a quarterly basis is
sent to the top management for their information.
ORGANIZE MAINTENANCE TEAM:
Based upon the type of equipment owned by the site organization
the maintenance team should consist of mechanics, autoelectricians, instrument technicians, general electrician, blacksmith
cum metal smith, general maintenance welder, pipe fitter cum
plumber, painter, semi skilled workmen are taken according to
requirement. The tradesmen mentioned above should be taken with
proper training in respective skill, from the industrial training
institutes.
TRAINING
Apart from whatever training and experience the maintenance crew
has, it is a good practice to give training on the job to them. This
will, apart from upgrading their skill, also bring in an attitudinal
change, and increase concern or productivity and quality.
35

SCHEME FOR MAINTENANCE:

The Maintenance shall be bifurcated into;
1.
Preventive Maintenance.
2.
2. Breakdown Maintenance.
While preventive maintenance is planned, breakdown repairs are
done on emergency basis.
Planning for maintenance shall include
1.
2.

3.
4.
5.
6.

7.

Fixation of frequencies.
Preparation of schedules and programs for current
maintenance like washing, cleaning, oiling, greasing,
replacing worn-out small parts, and packing.
Preparation of job specification.
Examining the working condition of facilities.
Procurement of spare parts and consumables needed.
coordinating the maintenance programme with planning
engineer and construction engineer, so that construction
work does not suffer, and if necessary hiring out a
substitute equipment timely.
Preparedness to attending breakdown maintenance at any
time.

MONITORING THE EFFECTIVENESS OF MANAGEMENT:

A monthly report on following points needs submission top
management.
1
Equipment description.
2
Hours of own work.
3
hours of renting out.
4
Idle hours in good condition.
5
Downtime for current maintenance.
6
Downtime for disrepair.
7
Maintenance cost.
For each equipment a history card will be maintained and is to be
seen by the PM periodically. The maintenance expenditure incurred
periodically is to be compared in relation to output.
REGULATING THE USE:

36

All construction equipment shall be in pool controlled by the

planning engineer. He shall operate the pool through the foreman.
Allotment of equipment shall be done by the planning engineer on
the basis of indents received from construction engineer.
LOG BOOK:
A log book shall be kept for every individual major equipment.
Essential contents of the log book are:
1)
2)
3)
4)
5)
6)

Equipment description.
Usage particulars comprising date, sub activity on which
equipment was used.
Marching time to and fro, actual working hours.
Name of job done.
Idling if any
Signature of operator, equipment supervisor

SCRAPPING AND WRITING OFF

When equipment crosses the age of economic operation and
maintenance, inspirit of best care and maintenance, it should be
subjected to economic cannibalization and scrapping or sale or write
off, in that order.

7 COMPLETION OF WORK AND CLOSING THE SITE

37

The completion of work and winding up site is anther important

phase of site Management. as per the contract Schedule event
project has a prefixed date of completion. The construction agency
has to endeavor completion of work by this date, otherwise they run
the risk of being penalized for delay in completion. ensure
maintenance of this date the project need to be provided with all
input and closely monitored. Sometimes a delay may occur wing to
reasons beyond the control of the contractor, such site not available,
drawings and details to be provided by the client not available,
delaying work by another agency, extra work ordered, force majored
condition resultant in delay and so on. The contractor should keep
track of occurrence of all delay, attributable to him , and apply for
extension of time to the full extent, or to any other extent as
considered reasonable.
The following points are to be incorporated for the completion the
work.
1.
2.

3.
4.
5.
6.
7.

Physical completion of the work as per contract.

2- Preparation of final bill for the work as executed
accordingly to contract and also extra work carried out
beyond the provided for in the bill of quantities.
3. Reconciliation of material consumed for the work. For the
material issued by the client as per terms of the contract.
Plant and equipment utilization statement.
List of defects pointed out by client sat the preliminary
acceptance stage.
Demobilization of resources.
Settlement of claims with the client, and obtaining extensity
of time etc.

1. PHYSICAL COMPLETION OF WORK AS PER CONTRACT.

All work required to be completed is as per the contract
stipulation. The work must be executed by the contractor date of
completion extended date of completion, in case extension of
time has already been granted by the client. case, the extension
has not been granted by the client request for the extension has
to be made out, going full justification for extension sought. It is
always a got practice to get the extension of time before
completion the work. Since after physical completion of work the
38

client usually become more rigid and getting extension may

become laborious process. In many contracts certain items of
word which are outside the contract i.e. Schedule of item s, are
be executed. This may become necessary owing to change of
details, additional work change in methodology of construction,
certain specified materials not being available and alternative
sought.
As and when additional work is required to be done , the
contractor must within a well of its c occurrence, apply for
additional cost and time and obtain clients approval, before
undertaking the work, Many a times, the client does not approve
the alternative or extra work, but instructs verbally to the
contractor to go ahead. In this situation, the contractor must
ensure protection of his interest, and write to the client that he is
undertaking the work as verbally instructed by the engineer on
the assumption that the same will be approved. If after allowing a
reasonable amount of time, and due follow up by the contractor,
the client does not issue his written order on contractors
proposal, the contractor is well within his right to suspend the
work. Although, it would be desirable to avoid this extreme
situation, which may unnecessarily affect the project progress.
For all extra work being done, the contractor should maintain
proper record in the form of Labor report, Materials consumed,
Statement of equipment utilization. This may form a basis at a
latter stage for processing the claim. Such issues are best
discussed with the client and settled across the table, by which
process correspondence can be avoided. Extra item and claims
are generally contentions issue which need to be handled with
technical soundness, commercial acumen, patience, and
perseverance, Certain items of claim and extra item can be
settled easily which may be isolated from the rest and do not
contain major differences between the parties, Categorization of
claims is helpful in expediting settlement and also receiving
payment for portion settled, thereby improving liquidity.
2 PREPARATION OF FINAL BILL FOR THE WORK
EXECUTED ACCORDING TO CONTRACT AND EXTRA ITEMS
CARRIED OUT:
Before the work reaches the final stage, a pre- final bill is
prepared by the site staff which is more or less like final bill,
incorporating all measurement of scheduled items and extra
39

items. Incase of difference of parties soma of the extra items and

claims maybe excluded from the pre final bill, otherwise the client
will hold up for payment thereby affecting liquidity. The pre- final
bill also incorporates materials, reconciliation and according,
which is necessary to be given in the final bill. Once the pre- final
has been settled, things become easier for the final bill
Preparations, in time is essential, as otherwise, staff which
executed the work may be posted out, and it would be difficulty
for the new staff to tackle the issues. This could also happen on
the side of client, and it would be difficult for a person who does
not have sufficient idea of how things progressed during an
earlier stage. It must be made a specific requirement for the
project staff not to leave the site on transfer before preparation of
the final bill. /the final bill also incorporates equipment utilization,
including equipment given on hire, by the client, its utilization, hire
charges, and maintenance etc.
2. RECONCILIATION OF MATERIALS
Material for carrying out construction is in two forms. One
arranged by the contractor and other supplied by the client. The
latter category is sub- divided as under:
1. Material supplied at the issue rate.
2. Materials supplied free of cost.
In both cases, the total issue along with the total consumption
including permitted allowances and wastage is tallied. In case, over
all issue being higher than consumption including permitted
allowances and wastage, then the recovery at a penal rate i affected
from the contractor, it is a good practice to carry out a material
reconciliation at each monthly bill running stage, which will lighten
the work at the final bill stage. Sometimes this is not done and the
site staff goes on procrastinating, the issue, and the activity is only
stated at the stage of the final bill. At this stage physical
reconciliation becomes a difficult task. Incase of reinforcement steel
issues are made on weight basis and for consumption
measurements are taken on linear basis, later converted to weight
by using conversion table,. There is always difference between the
two, a rolling margin. Similarly, in case of cement, each bag is taken
as 50 KG., but frequently the actual weight in the bag is 3 to 5 KG.
less. This increases the differences between the quantities.
4. THE PALNT NAD EQUIPMENT STATEMENT
40

Most projects now a day have an element of plant and equipment

utilization. Plant and equipment are issued by the client to the
contractor on hire charge fixed in the controlled by entering in a log
book, which is maintained for each and every equipment. The
extract of plant and equipment utilization is prepared in the
workshop or the electrical / mechanical division, and sent to the
billing section. The petrol, oil lubricant, (POL) consumption is also
monitored to ensure the same with the provisions.
5 LISTS OF DEFECTS POINTED OUT BY CLIENT AT
PRELIMINARY ACCEPTANCE STAGE
Every contract has two stages of acceptance, one the preliminary
Acceptance Certificate (PAC) and the other final Acceptance
certificate (FAC), after completion of the work it is usually inspected
jointly by the client and the contractor. During this inspection a
detailed stock of all what has been constructed is taken, and any
defects or fixtures not operating, which needs to be repaired or
rectified, is pointed our and a plug list is prepared. Normally every
contract has a stipulated maintenance period of one year during
which removal of defects is to be carried out, any subsequent defect
if found is rectified by the contractor, and then another joint
inspection will be carried out by the client. The final inspections
carried out at the end, when one year defect liability is over, and this
span of time. While the contractor submit his claims for extra items,
the client usually formulate a counter claims field. These issues
need to be worked out between client and contractor interest itself to
liquidate the plug list at the earliest, so as to contain their liability.
5. DEMOBILIZATION OF RESOURCES.
At the end of the project the various resources mobilized for the
project i.e. Men, Material, Machinery need to be demobilized. In
case of men, well before the completion of the project a
demobilization plan of the personnel should be formulated which
could indicate the new place of posting of formulated which could
indicate the new place of posting of the staff, and the time frame
within which they have to move out of the site. Often this activity
gets considerable delayed, especially if the project is in a city of
urban area since, there is a general hesitancy on he part of the staff
to move out from here to the next project site which may not factor
needs to be introduced. The staff which after completing of the
41

finalization the contract move out to the next place of posting could
be given an incentive or a favorable entry to this effect in their ACR.

7 SETTLEMENT OF CLAIM WITH THE CLIENT, AND EXTENSION

OF TIME ETC.
As pointed out earlier, settlements of extra item and claim and
becomes a contentious issue from the time a claim gets generated.
The contractor should closely liaise with the client, and get claim
settled at the earliest.
The contractual duration ay undergo change owing to increase in
scope of work hindrance experienced by the contractor, change of
materials, force majored condition, delay in execution, and change
of technology and methodology of working and so on. Application for
extension of time should be initiated right at the stage when the
cause of extension has originated. The client should be issued a
letter seeking extension of time which may not be quantified in terms
of time required. This quantification should be, subsequent when the
overall effect of various contributing factors to the extension have
been taken into account.

42

43